THE NEW ZEALAND OFFICIAL YEAR-BOOK, 1940


Table of Contents

List of Tables

PREFACE.

THE 1940 edition of the New Zealand Official Year-Book (the forty-eighth number of the volume) follows the same lines as its immediate predecessors.

All information, statistical and other, has been brought up to date as far as possible. The sections on Education and Pensions (in the latter case following the introduction of the scheme of social security benefits) have been rewritten, and among new material will be found in Section XVII a subsection on the survey system of New Zealand, and in Section Xc a classification of imports according to purpose or use and also by stage of production.

I again wish to record my appreciation of the assistance rendered by officers of other Government Departments and by members of my staff, particularly the officers of the Editorial Branch, who have done excellent work during a very difficult period.

Pressure of work, both in the Census and Statistics Department and in the Government Printing Office, has resulted in the Year-Book appearing some weeks later than usual.

J. W. BUTCHER,
Government Statistician.

Census and Statistics Department,
Wellington, C. 1, New Zealand, 31st January, 1940.

LATEST STATISTICAL INFORMATION.

[Following are certain important statistical data for later periods than are included in the body of the Year-Book. The page numbers relate to the appropriate pages in this Year-Book containing more complete information in respect of earlier periods.]

POPULATION (pp. 58-83):—

Population (inclusive of Maoris but exclusive of Cook and other Pacific Islands)—

 As at 30th September—
 1938.1930.
    Males816,437828,815
    Females791,619803,995
        Totals1,608,0561,632,810
MIGRATION (pp. 64-70):—1st April to 31st October—
* Excluding through passengers.
 1938.1939.
    Passenger arrivals*23,16621,842
    Passenger departures*23,62018,785
VITAL STATISTICS (pp. 84-152):—1st January to 30th September—
  Numbers—1938.1939.
    Births20,14321,002
    Deaths11,14710,722
    Marriages10,88411,710
    Infant deaths764679
Corresponding yearly rates—  
    Births (per 1,000 mean population)17.7218.25
    Deaths (per 1,000 mean population)9.809.32
    Marriages (per 1,000 mean population)9.5710.18
    Infant mortality (per 1,000 live births)37.9332.33
TOTAL TRADE (pp. 236-244):—1938.1939.
  Commodity exports—££
    October2,165,3453,907,080
    Ten months ended 31st October50,261,96751,342,327
    Twelve months ended 31st October58,787,94259,456,643
Commodity imports—  
    October4,270,0143,330,269
    Ten months ended 31st October45,873,68443,453,865
    Twelve months ended 31st October55,429,38853,002,370
Excess of exports—  
† Excluding through passengers.
    October-2,104,669576,811
    Ten months ended 31st October4,388,2837,888,462
    Twelve months ended 31st October3,358,5546,454,273

PRINCIPAL EXPORTS (pp. 245-267).

Twelve Months ended 31st October,
1938.1939.
Quantity.Value.Quantity.Value.
  £ £
Butter (cwt.)2,661,19917,186,9192,527,29316,291,331
Cheese (cwt.)1,656,8415,993,2751,633,6465,631,598
Frozen meats—    
  Beef (cwt.)526,970820,401702,2641,181,161
  Lamb (cwt.)2,688,1749,439,8622,842,2749,410,049
  Mutton (cwt.)954,8531,934,0361,003,4511,642,589
  Pork (cwt.)576,8541,888,933474,1081,565,960
Chilled beef (cwt.)358,448688,092351,504683,875
Sheepskins (number)12,175,7511,238,00017,537,8301,614,613
Wool (bales)759,85111,664,678914,29113,100,441
Gold (oz.)152,5401,285,222172,3271,559,292
Timber (sup. ft.)15,331,200186,42511,780,823144,746

IMPORTS—PRINCIPAL ITEMS (pp. 268-287).

Twelve months ended 31st October,
1938.1939.
 ££
Sugar685,982758,825
Tea792,803849,930
Tobacco, cigars, and cigarettes1,015,7921,113,368
Hosiery379,572280,986
Miscellaneous apparel and ready-made clothing1,547,938932,899
Miscellaneous drapery398,107340,781
Footwear595,546432,974
Cotton, silk, and artificial silk piece-goods2,482,0692,763,831
Woollen piece-goods809,453770,281
Iron and steel: Bar, bolt, and rod765,973459,957
Galvanized plate and sheet487,283667,368
Electrical machinery (including wireless apparatus)3,217,0763,020,167
Timber582,639772,678
Printing-paper856,685780,374
Motor-vehicles and motor-cycles5,694,8534,766,328
Motor-spirits1,828,6791,985,182
Rubber tires for motor-vehicles and motorcycles838,197928,885
Agriculture (pp. 427-445):—1938-39.1939-40.
Areas sown (p. 429)—Acres.(Estimates). Acres.
Wheat193,332259,000
Oats279,796254,000
Barley32,52831,500
Potatoes18,03219,800
Pastoral Production (pp. 446-469):—1938-39.1939-40. (Pre-estimate.)
Wool production (greasy basis), lb.327,700,000320,000,000

Factory Production (pp. 510-544).

Production Year.
1937-38.1938-39.
Number of establishmentsNo.5,9246,146
Persons engagedNo.102,344102,535
Salaries and wages paid£20,981,58722,270,010
Cost of materials used£75,084,17375,344,181
Other expenses of manufacture£10,827,59310,292,526
Value of output£113,691,556114,447,426
Added value£38,607,38339,103,245

FACTORY PRODUCTION—CERTAIN PRINCIPAL INDUSTRIES (pp. 536-544).

Industry.Production Year.
1937-38.1938-39.

* Excluding establishments exclusively engaged in malting.

* Including operations of motor-assembly works.

Meat freezing and preserving—   
  Total persons engagedNo.7,8357,897
  Salaries and wages paid£2,188,1022,379,748
  Value of output£21,227,64120,653,074
    Added value£3,514,2783,815,947
Ham and bacon curing—   
  Total persons engagedNo.521498
  Salaries and wages paid£129,432132,099
  Value of output£1,257,4111,335,969
    Added value£328,148291,376
Butter, cheese, and condensed-milk factories—   
  Total persons engagedNo.4,1283,944
  Salaries and wages paid£1,040,7541,065,329
  Value of output£27,767,28827,334,584
    Added value£2,361,5612,424,413
Grain-mills—   
  Total persons engagedNo.767738
  Salaries and wages paid£188,429188,757
  Value of output£2,574,9442,383,103
    Added value£527,701451,763
Biscuit, confectionery, and sugar-boiling works—   
  Total persons engagedNo.3,2083,190
  Salaries and wages paid£428,585465,506
  Value of output£1,921,3142,028,822
    Added value£812,571910,862
Breweries and malthouses*   
  Total persons engagedNo.1,0931,168
  Salaries and wages paid£301,977325,895
  Value of output (including beer duty)£2,814,5322,844,889
    Added value£1,152,255946,880
Soap and candle works—   
  Total persons engagedNo.552520
  Salaries and wages paid£107,727112,041
  Value of output£565,871542,188
    Added value£256,999273,825
Sawmills—   
  Total persons engagedNo.8,3647,917
  Salaries and wages paid£1,936,9011,948,849
  Value of output£5,061,1335,074,703
    Added value£3,490,5343,373,716
Gasworks—   
  Total persons engagedNo.1,9201,942
  Salaries and wages paid£499,303526,229
  Total revenue£1,497,5151,527,275
  Quantity of gas soldcub. ft. (000)3,539,5743,591,352
Electric current—   
  Total persons engagedNo.4,6685,026
  Salaries and wages paid£1,236,9521,370,231
  Total revenue£5,691,9416,312,232
  Units generatedunits (000)1,252,5621,413,518
Lime and cement works—   
  Total persons engagedNo.1,0501,123
  Salaries and wages paid£266,756298,969
  Value of output£945,4741,103,900
    Added value£715,409852,255
  Iron and brass foundries—   
  Total persons engagedNo.930962
  Salaries and wages paid£201,318216,845
  Value of output£505,479557,051
    Added value£304,819357,749
Engineering-works—   
  Total persons engagedNo.3,8984,039
  Salaries and wages paid£874,911951,949
  Value of output£2,445,4952,556,159
    Added value£1,398,1711,533,591
Coachbuilding and motor and cycle engineering*   
  Total persons engagedNo.9,90910,289
  Salaries and wages paid£2,120,2802,278,851
  Value of output£5,588,4335,943,413
    Added value£3,773,4363,872,084
Tanning—   
  Total persons engagedNo.497459
  Salaries and wages paid£119,890109,680
  Value of output£583,287491,209
    Added value£206,607199,311
Superphosphates and chemical fertilizers—   
  Total persons engagedNo.902932
  Salaries and wages paid£240,319249,208
  Value of output£1,809,4711,822,857
    Added value£697,269664,278
Boot and shoe manufacturing—   
  Total persons engagedNo.3,0813,075
  Salaries and wages paid£451,246486,649
  Value of output£1,386,9141,355,398
    Added value£673,205624,501
Woollen mills—   
  Total persons engagedNo.2,7482,406
  Salaries and wages paid£422,240392,393
  Value of output£1,258,319951,636
    Added value£654,773573,651
Hosiery factories—   
  Total persons engagedNo.1,2981,259
  Salaries and wages paid£167,975182,956
  Value of output£590,253574,237
    Added value£271,972272,503
Clothing-manufacture—   
  Total persons engagedNo.12,91612,270
  Salaries and wages paid£1,542,9331,568,886
  Value of output£3,962,0563,809,093
    Added value£2,062,7461,963,065
TRANSPORT (pp. 308-362):— Twelve Months ended October—

* Including road motor and other subsidiary services.

† As at 30th September.

  Shipping (pp. 308-315)— 1938.1939.
    Overseas, inwardsNumber668661
 Tonnage3,140,5553,038,786
    Overseas, outwardsNumber658671
 Tonnage3,127,1413,075,101
Railways (pp. 316-326)—   
    Net ton-miles runNumber556,000,000582,000,000
    Passenger journeysNumber22,927,85123,471,323
Revenue—   
      Railway operation£7,623,3408,366,663
      Total*£8,810,0719,807,005
    Expenditure—   
      Railway operation£7,572,9417,767,256
      Total*£8,409,6808,833,634
Road (pp. 334-349)—   
    Motor-vehicles licensed 267,107285,586
  Six Months ended 30th September—
  1938.1939.
CONSOLIDATED FUND (pp. 574-577):— ££
  Receipts 13,400,18014,802,582
  Payments 15,125,57216,089,995

OTHER PRINCIPAL STATISTICAL SERIES.

Item. 1938.1939.
Prices index numbers (pp. 785-806):—   
  Retail— Month of October.
    Food (1926-30 = 1000) 9881,066
    All-groups (1926-30 = 1000) 953997
  Wholesale—All-groups (1926-30 = 1000) 1,0321,090
  Export—All-groups (1909-13 = 1000) 1,3541,329
  Share prices—All-groups (1926 = 1000) 893869
Mortgages registered (pp. 749-752)£1,850,8511,405,561
Mortgages discharged (pp. 749-752)£1,467,1461,246,310
Land transfers registered (pp. 375-377)£2,051,5221,822,111
Pensions (pp. 619-646):—   
  War—   
    Number 24,16724,063
    Annual value£1,584,3481,611,519
  Boer War—   
    Number 5453
    Annual value£1,8621,862
  War Veterans' allowances—   
    Number  2,120
    Annual value £  179,219
Banking (pp. 677-707):—   
  Trading banks—   
    Debits, weekly average (excluding Government), (p. 689)£17,714,30117,309,931
    Ratio of advances to deposits (p. 687)Per cent.92.1678.63
  Reserve Bank— 27th November.
  Net reserve ratio (p. 680)Per cent.32.6928.48
  Reserve—   
    Gold (p. 680)£2,801,7912,801,839
    Exchange (p. 680)£4,828,3026,624,585
Net note circulation (pp. 690-691)£10,560,39713,117,068
  30th October.
Net overseas funds of banks (p. 692)£11,855,4758,756,251

PUBLICATIONS OF THE NEW ZEALAND CENSUS AND STATISTICS DEPARTMENT.

Title.Latest No.Month of Issue.Price per Copy.Postage (extra).
* £1 1s. per annum (post free).
New Zealand Official Year-Book1,940Mar. 1940s. 7
d. 6
d.
7
Annual Statistical Reports—    
  Population and Buildings1937-38Feb. 19392 61
  Vital Statistics1,938Mar.19405 03
  Justice1,937Mar.19392 61
  Trade and Shipping (Part I)1,938Jan.194020 06
  Trade and Shipping (Part II)1,937June 19393 62
  Agricultural and Pastoral Production1937-38April 19392 61
  Factory and Building Production1937-38June 19393 62
  Insurance1,937June 19392 01
  Miscellaneous (Prices, Wage-rates and Hours of Labour, Unemployment, Industrial Accidents, Tramways, Banking, Building Societies, Bankruptcy, Commercial Afforestation, Incomes and Income-tax, Statistical Summary)1,937Aug., 19394 03
Local Authorities Handbook of New Zealand (published annually)1937-38Jan. 19407 66
Pocket Compendium of New Zealand Statistics (published annually)1,939Sept. 19391 01
Monthly Abstract of Statistics  2 6*1
Volumes of 1936 Census Results—    
  Increase and Location of Population1,936Sept. 19374 62
  Dependencies1,936Sept. 19371 61
  Poultry1,936Sept. 19371 61
  War Service1,936June 19381 61
    (Other volumes to follow)    

NOTE.—This list is subject to revision from time to time. Publications are obtainable from the Government Printer, Wellington.

Chapter 1. SECTION I.—DESCRIPTIVE.

NEW ZEALAND.—LOCATION, AREA, AND BOUNDARIES.

CONSISTING of two large and several smaller islands, the Dominion of New Zealand lies in the South Pacific Ocean some 1,200 miles to the eastward of Australia. With South America some 6,000 miles distant to the east and the Antarctic Continent 1,600 miles distant to the south, the Islands are, for their size, among the world's most isolated. For statistical purposes the following classification of the administrative area is the most convenient:—

(a) Islands forming the Dominion proper (total area, 103,415 square miles):—

 Square Miles.
North Island and adjacent islets44,281
South Island and adjacent islets58,092
Stewart Island and adjacent islets670
Chatham Islands372

In all further references in this volume, unless the context indicates the contrary, Chatham Islands and Stewart Island are included with the South Island. It should be noted also that statistics for “the Dominion” and for “New Zealand” refer to the above group of islands, unless it is expressly stated that the outlying islands, group (b), and/or the annexed islands, group (c), are included.

(b) Outlying islands (total area, 307 square miles) included within the geographical boundaries of New Zealand as proclaimed in 1847:—

 Square Miles.
Three Kings Islands3
Auckland Islands234
Campbell Island44
Antipodes Islands24
Bounty Islands
Snares Islands1
Solander Island

None of the outlying islands is regularly inhabited.

c) Islands (total area, 212 square miles) annexed to New Zealand:—

Kermadec Islands, annexed in 1887 (area, 13 square miles).

Cook and other Pacific Islands, annexed in 1901:—

Cook Islands (area, 84 square miles)—

Rarotonga.Aitutaki.
Mangaia.Mauke (or Parry).
Atiu.Takutea.
Mitiaro.Manuae (or Hervey Islands).

Islands outside the Cook Group (area, 115 square miles)—

Niue (or Savage).Rakahanga (or Reirson).
Palmerston (or Avarau).Pukapuka (or Danger).
Penrhyn (or Tongareva).Suwarrow (or Anchorage).
Manihiki (or Humphrey).Nassau.

The total area of the foregoing groups is 103,934 square miles. Elsewhere in this issue (viz., in the section on land tenure, settlement, &c.) the aggregate area of the Dominion appears as 66,390,196 acres—i.e., 103,735 square miles. The latter area does not include the Cook and other Pacific Islands annexed in 1901.

As well as exercising jurisdiction over the areas already mentioned, the Dominion also administers the Union Islands, the Ross Dependency, and Western Samoa (which is held on a mandate from the League of Nations). Jointly with the Imperial Government and the Government of Australia, New Zealand is responsible for the mandate over the Island of Nauru. The administrative appointments for the island are made by the Australian Government, but New Zealand appoints a representative to the British Phosphates Commission, which controls the working of the phosphate deposits.

The relevant Proclamations, &c., defining from time to time the administrative area of the Dominion are given in the following paragraphs.

The Proclamation of British sovereignty over New Zealand, dated the 30th January, 1840, gave as the boundaries of what was then the colony the following degrees of latitude and longitude: On the north, 34° 30′ S. lat.; on the south, 47° 10′ S. lat.; on the east, 179° 0′ E. long.; on the west, 166° 5′ E. long. These limits excluded small portions of the extreme north of the North Island and of the extreme south of Stewart Island.

In April, 1842, by Letters Patent, and again by the Imperial Act 26 and 27 Vict., c. 23 (1863), the boundaries were altered so as to extend from 33° to 53° of south latitude and from 162° of east longitude to 173° of west longitude. By Proclamation bearing date the 21st July, 1887, the Kermadec Islands, lying between the 29th and 32nd degrees of south latitude and the 177th and 180th degrees of west longitude, were declared to be annexed to and to become part of the then colony of New Zealand.

By Proclamation of the 10th June, 1901, the Cook Group of islands, and all the other islands and territories situate within the boundary-lines mentioned in the following schedule, were included as from the 11th June, 1901:—

A line commencing at a point at the intersection of the 23rd degree of south latitude and the 156th degree of longitude west of Greenwich, and proceeding due north to the point of intersection of the 8th degree of south latitude and the 156th degree of longitude west of Greenwich; thence due west to the point of intersection of the 8th degree of south latitude and the 167th degree of longitude west of Greenwich; thence due south to the point of intersection of the 17th degree of south latitude and the 167th degree of longitude west of Greenwich; thence due west to the point of intersection of the 17th degree of south latitude and the 170th degree of longitude west of Greenwich; thence due south to the point of intersection of the 23rd degree of south latitude and the 170th degree of longitude west of Greenwich; and thence due east to the point of intersection of the 23rd degree of south latitude and the 156th degree of longitude west of Greenwich.

By Imperial Order in Council of the 30th July, 1923, the coasts of the Ross Sea (in the Antarctic regions), with the adjacent islands and territories, were declared a British settlement within the meaning of the British Settlements Act, 1887. This region was named the Ross Dependency and placed under the administration of the Governor-General of New Zealand. The dependency is uninhabited.

By Imperial Orders in Council of the 4th November, 1925, the Union or Tokelau Islands (consisting of the islands of Fakaofu, Nukunono, and Atafu, and the small islands, islets, rocks, and reefs depending on them, a total area of only four square miles) were excluded from the Gilbert and Ellice Islands Colony, and placed under the administration of the Governor-General of New Zealand. In accordance with a provision of the second of these Orders in Council, the Governor-General's authority and power in connection with the administration of the islands were, by New Zealand Order in Council of the 8th March, 1926, delegated to the Administrator of Western Samoa.

GEOGRAPHICAL FEATURES.

COAST-LINK.

By reason of its elongated shape, New Zealand possesses a very lengthy coast-line in proportion to its area. With the exception of the low-lying North Auckland peninsula, the length of the New Zealand land-mass lies along a south-westerlynorth-easterly axis, and is thus parallel to the direction of its mountain-chains.

By reason of the latter fact the coast-line is, on the whole, not greatly indented; and, as a consequence, New Zealand is not well endowed with natural harbours. In the North Island, Auckland and Wellington are the only two safe natural harbours of which the fullest commercial use can be made. On the east coast of the North Auckland peninsula several deep and sheltered harbours exist, but as the surrounding country is comparatively undeveloped and the area somewhat remote they are of little economic consequence at present. In the South Island the Marlborough Sounds and the West Coast Sounds form perfect land-locked harbours, but owing to their situations and to the rugged nature of the terrain they have—with the exception of Queen Charlotte Sound—little or no commercial utility. Where vital localities have not been endowed with ideal harbours it has been necessary to improve existing facilities by dredging and by breakwater-construction, &c. In this manner efficient ports, capable of accommodating overseas vessels, have been formed in Lyttelton, Otago, and Bluff harbours. On the west coast of both Islands the strong ocean-drifts and high seas cause shoaling at river-mouths and harbour-entrances, while on the east coast of the South Island similar circumstances prevail, due to the large quantities of shingle brought down by the rivers being spread along the coast by ocean currents.

Since the mountainous nature of the country makes the haulage of goods to and from the better-equipped natural harbours both costly and difficult, the construction of further ports at various points along the coasts of both Islands has been necessary, either by dredging river-mouths or by harbour-construction work.

MOUNTAINS.

The mountainous nature of New Zealand is one of its most striking physical characteristics. In the North Island the higher mountains occupy approximately one-tenth of the surface; but, with the exception of the four volcanic peaks of Egmont (8,260 ft.), Ruapehu (9,175 ft.), Ngauruhoe (7,515 ft.), and Tongariro (6,458 ft.), they do not exceed an altitude of 6,000 ft. Of these four volcanoes only the first-named can be classed as extinct. Other volcanoes include Mount Tarawera and White Island, each of which has, upon one occasion within historical times, erupted with disastrous consequences. Closely connected with the volcanic system are the multitudinous hot springs and geysers.

The South Island is much more mountainous than the North, but shows fewer manifestations of recent volcanic activity. Along almost the entire length of the Island runs the massive chain known as the Southern Alps, which attains its greatest height in Mount Cook (12,349 ft.), while no fewer than seventeen peaks exceed 10,000 ft.

The position and trend of the mountains in New Zealand exert considerable influence on the economic life of the Dominion. Attention has already been drawn to the relation between the direction of the mountains and the nature of the coast-line, while in the article dealing with climate (post) mention is made of the effect of mountains on climatic conditions.

At, may be expected, the higher mountains of the South Island have exerted a greater influence on the economic development of the country than those of the North Island. For many years the Southern Alps were an effective barrier to communication by land between the east and west coasts, while their climatic effects on the Canterbury plains and Otago plateaux determined the types of cultivation undertaken. Moreover, the existence of much elevated open country led to the development of pastoral holdings on a large scale. While the mountains in the North Island are not as high nor as extensive as those of the South Island, in the early days they effectively isolated various portions of the coastal plains and valleys. Their effect on climatic conditions, however, is considerably less, the rainfall being more evenly distributed. Due to this more even distribution of the rainfall, and to the existence of considerable areas of lower relief, the foothills of the mountain systems were heavily wooded, and so proved a hindrance to agrarian development.

In the 1931 issue of the Year-Book was given a list, not claimed as exhaustive, of 223 named peaks of 7,500 ft. or more in altitude. Below is a list of the peaks, restricted to the three largest volcanic cones in the North Island and to mountains of a minimum height of 9,000 ft. in the South Island. The list has been compiled from various sources, and does not purport to be free from omissions.

Mountain or Peak.Height (Feet).
    North Island. 
Ruapehu9,175
Egmont8,260
Ngauruhoe7,515
    South Island. 
Kaikoura Ranges 
  Tapuaenuku9,465
  Alarm9,400
Southern Alps 
    Cook12,349
    Tasman11,475
    Dampier11,287
    Silberhorn10,757
    Lendenfeldt10,450
    David's Dome10,443
    Malte Brun10,421
    Torres10,376
    Teichelmann10,370
    Sefton10,354
    Haast10,294
    Elie de Beaumont10,200
    Douglas Peak10,107
    La Perouse10,101
    Haidinger10,059
    De la Beche10,058
    The Minarets10,058
    Aspiring9,975
    Hamilton9,915
    Glacier Peak9,865
    Aiguilles Rouges9,731
    Nazomi9,716
    Darwin9,715
    Chudleigh9,686
    Annan9,667
    Lowe9,653
    Haeckel9,649
    Le Receveur9,562
    Goldsmith9,532
    Big Mac9,511
    Conway Peak9,510
    Bristol Top9,508
    Walter9,507
    Grey9,490
    Green9,307
    Hutton9,297
    D'Archiac9,279
    Bell9,276
    Hochstetter Dome9,258
    Earnslaw9,250
    Nathan9,200
    Barnicoat9,183
    Sibbald9,181
    Arrowsmith9,171
    Spencer9,167
    The Footstool9,073
    Rudolf9,039
    The Dwarf9,025
    Darran Range 
    Tutoko9,691
    Madeline9,042

GLACIERS.

In keeping with the dimensions of her mountain system, New Zealand possesses, in the South Island, a glacial system of some magnitude. Of the glaciers the largest is the Tasman, which, with others of comparable size, rises in the more elevated area surrounding Mount Cook. Flowing down the eastern slope of the range, this glacier has a length of 18 miles and a width of 1¼ miles. In common with other glaciers on the eastern slope, of which the more important are the Murchison (11 miles), the Mueller (8 miles), the Godley (8 miles), and the Hooker (7¼ miles), its rate of flow is slow, while its terminal face is at an altitude of somewhat over 2,000 ft. On the western slope of the range, owing to the greater snow precipitation, the glaciers are more numerous and descend to lower levels, while the steeper slope gives them a faster rate of flow. The two largest of these are the Fox and the Franz Josef, with lengths of 9¾ miles and 8½ miles respectively, and terminal faces at altitudes of 670 ft. and 690 ft.

As will be realized, these glaciers are an important tourist attraction, and as such have definite economic significance. Moreover, those glaciers on the eastern slopes which feed rivers utilized for irrigation and hydro-electric purposes are valuable in that they help to ensure a steady volume of water in such rivers.

RIVERS.

Of the numerous New Zealand rivers few are of sufficient length or volume to be navigable. Moreover, owing to the high relief of the country, they are mostly swift-flowing, while, as mentioned previously, nearly all are obstructed at their mouths by bars. For the purpose of internal communication, therefore, they are of little economic utility, and only in two or three isolated instances have they been thus consistently used. With improved roading conditions, however, their traffic has become negligible even in these cases.

As sources of hydro-electric power, New Zealand rivers are of considerable importance, since their rapid rate of flow and dependable volume of ice-free water make them eminently suitable for this purpose. At the present time the Waikato and the Mangahao rivers in the North Island and the Waitaki River in the South are used for major hydro-electric schemes. The characteristics just mentioned are also important for purposes of irrigation, but, owing to the country's reliable rainfall, there are few areas other than in Canterbury and Otago where the rivers are so utilized.

In the 1932 Year-Book appears an account of the rivers of New Zealand by Professor R. Speight, M.Sc., F.G.S., Curator of the Canterbury Museum.

Space in this issue is, however, available only for a list of the more important rivers, with their approximate lengths, the latter being supplied by the Department of Lands and Survey. Figures in parentheses indicating the approximate discharge, in cubic feet per minute, are shown for the largest rivers.

NORTH ISLAND.
Flowing into the Pacific Ocean—Miles.
  Piako60
  Waihou (or Thames)90
  Rangitaiki95
  Whakatane60
  Waiapu55
  Waipaoa50
  Wairoa50
  Mohaka80
  Ngaururoro85
  Tukituki65
Flowing into Cook Strait— 
  Ruamahanga70
  Hutt35
  Otaki30
  Manawatu (over 600,000)100
  Rangitikei115
  Turakina65
  Wangaehu85
  Wanganui (over 500,000)140
  Waitotara50
  Patea65
Flowing into the Tasman Sea— 
  Waitara65
  Mokau75
  Waikato (over 800,000)220
  Wairoa (over 250,000)95
  Hokianga40
South Island.
Flowing into Cook Strait—Miles.
  Aorere45
  Takaka45
  Motueka75
  Wai-iti30
  Pelorus40
  Wairau105
  Awatere70
Flowing into the Pacific Ocean— 
  Clarence125
  Conway30
  Waiau-uha110
  Hurunui90
  Waipara40
  Ashley55
  Waimakariri (low water 80,000; normal flood 500,000)93
  Selwyn55
  Rakaia95
  Ashburton67
  Rangitata75
  Opihi50
  Pareora35
  Waihao45
  Waitaki135
  Kakanui40
  Shag45
  Taieri125
  Clutha (over 2,000,000)210
Flowing into Foveaux Strait— 
  Mataura120
  Oreti105
  Aparima65
  Waiau115
Flowing into the Tasman Sea— 
  Cleddau and Arthur20
  Hollyford50
  Cascade40
  Arawata45
  Haast60
  Karangarua30
  Cook25
  Waiho20
  Wataroa35
  Wanganui35
  Waitaha25
  Hokitika40
  Arahura35
  Taramakau45
  Grey75
  Buller (nearly 1,000,000)105
  Mokihinui30
  Karamea45
  Heaphy25

The discovery in 1861 that the beds of numerous rivers in the South Island contained extensive deposits of alluvial gold was of considerable importance in the economic development of the country. Not only did it lead to an increase in population and in wealth, but, through the following of the numerous streams to their sources, it also led to the rapid exploration of large tracts of remote country. The exploitation of these deposits has been carried on with varying degrees of success up to the present time by both manual and mechanical means.

A further factor in connection with rivers is that, owing to the very successful acclimatization of fresh-water fish, notably trout, many of them now provide exceptionally fine fishing.

Lakes.

In considering New Zealand's numerous lakes, a distinction can be made, especially from the scenic viewpoint, between the lakes of the two Islands. Surrounded by extremely rugged country the larger lakes of the South Island are distinguished by the grandeur of their alpine settings, while those of the North Island, situated on a volcanic plateau, are of interest by reason of the neighbouring thermal activity. Due to the excellence of their fishing, the latter possess an added tourist attraction. In both Islands the larger lakes are situated at high altitudes, and their consequent remoteness renders them unsuitable as a means of communication. In their functions as reservoirs the lakes of both Islands are of vital importance for the maintenance of the streams draining them and as a means of flood-prevention. More especially is this the case where hydro-electric schemes are involved, Lakes Waikaremoana and Taupo in the North Island, and Lakes Coleridge, Pukaki, and Tekapo in the South Island, being of particular significance in this respect.

A detailed article on the lakes of New Zealand, also by Professor R. Speight, will be found in the 1932 Year-Book. The more important lakes are stated below.

Lake.Length, in Miles.Greatest Breadth, in Miles.Area, in Square Miles.Drainage Area, in Square Miles.Approximate Volume of Discharge, in Cubic Feet per Second.Height above Sea-level, in Feet.Greatest Depth, in Feet.
    North Island.       
Taupo25172381,2505,0001,211534
Rotorua63215842091584
Rotoiti10¾1426500913230
Tarawera1575..1,032285
Waikaremoana12211287722,015846
Wairarapa104271,250....64
    South Island.       
Rotoiti5286..1,997228
Rotoroa78146..1,470..
Brunner5416145..280357
Kanieri5811..422646
Coleridge1131870..1,667680
Tekapo124325805,0002,323620
Pukaki105315156,0001,588..
Ohau103234245,0001,720..
Hawea205485185,7001,062..
Wanaka30475960..922..
Wakatipu5231121,16213,0001,0161,242
Te Anau3361321,32012,660694906
Manapouri12656416..5961,458
Monowai1211251700600..
Hauroko203251951,800611..
Poteriteri17217162..96..
Waihola1⅛3 1/32,200..(Tidal)52
Ellesmere1610107½745..(Tidal)45

GEOLOGY.

The following article on the geology of New Zealand was prepared by Dr. J. Henderson, M.A., F.R.S.N.Z., Director of the Geological Survey:—

INTRODUCTION.

New Zealand is a small country, but its geological history is as complex and as ancient as that of a continent. Land, though from age to age it varied greatly in area, outline, and elevation, must have persisted in the New Zealand area from the oldest Palæozoic or earlier. Long periods—during which gentle regional oscillations and warpings, aided by the slow-acting forces of denudation, brought about gradual changes—were interrupted by great revolutions when earth-stresses ridged the crust into mountains and quickly altered the whole configuration of the land and sea-floor. For New Zealand the important geological periods are those that followed the two latest mountain-building movements—the Kaikoura deformation of late Tertiary time, and the Hokonui deformation of the early Cretaceous. The deposits laid down in the intervening period of relative crustal stability cover a large proportion of the land, and contain all the coal and most of the limestone of the Dominion. The soils on which grow the forests, pastures, and crops are of post-Tertiary age, and the great bulk of the gold has been won from deposits formed during the same period.

GENERAL ACCOUNT OF THE STRATIGRAPHY.

The oldest known fossiliferous rocks in New Zealand are the Ordovician slates and greywackes of west Nelson and south-west Otago. Lower unfossiliferous beds of the same great system extend southward from the northern area and outcrop in the Westport, Reefton, Greymouth, Ross, and Okarito districts. Above the fossil-bearing beds, but probably also of Ordovician age, are the black phyllites, quartzites, and marbles, which outcrop continuously from Takaka to Mount Owen, and are again exposed in the upper basins of the Matakitaki, Maruia, and Grey Rivers. The similar rocks of western Otago probably also belong to this group. The complex of gneisses and schists of the same region, intruded by acid and basic plutonics, and usually considered of Archæan age, resembles the part of the Ordovician strata of western Nelson that has been similarly invaded and metamorphosed and may well be of early Palæozoic age. Different authorities assign the mica, chlorite, and quartz schists of Central Otago to ages that range from the Archæan to the Triassic. They are certainly Palæozoic or older, since they grade upward into gréywackes that, at Clinton, contain Permian fossils.

Devonian rocks are certainly known only in the Baton, Wangapeka, and Reefton districts. These beds, fossils from which have lately been examined in England, cover only small areas. But the old Geological Survey mapped wide tracts of country in Nelson and Otago, covered with beds of the Te Anau Series, as Devonian, and the correlation may well be correct, though the rocks are entirely unfossiliferous.

The Maitai Series, which forms the ranges on the south-east side of the Nelson lowlands, is probably of Carboniferous or Permo-Carboniferous age. Their position in the time scale and their correlation with rocks in other parts of New Zealand have provoked much discussion. Permian strata, as already stated, occur in Otago, where the area they cover may be considerable.

Richly fossiliferous late Triassic rocks are known in the Kawhia-Mokau district, near the City of Nelson, and at several localities in Canterbury and Otago. Except in Nelson and Canterbury, strata that contain fossils referable to several stages of the Jurassic succeed without observed unconformity. The broad belt of greywacke and argillite that forms the mountains of Canterbury and Marlborough, and continues as a narrower belt through Wellington to northern Hawke's Bay, is usually referred to the Trias-Jura. Similar rocks outcrop in the centre of the North Island and at many points in North Auckland. There are Upper Triassic molluscs in these beds at several localities, and the vertebra of a saurian with Triassic rather than Permian affinities was found near Wellington. Lithologically the greywackes and argillites of this vast series differ somewhat from the rocks of similar type belonging to the Jurassic and Maitai series; they are therefore thought to be of older Triassic age, but may well range into the Permian. The schists occurring with them in the Kaimanawa, Kaikoura, Moorhouse, and Kirkliston Ranges are probably older.

The thick conglomerates conformably overlying the younger Jurassic shales of the Port Waikato, Kawhia, and Coromandel regions belong to either the youngest Jurassic or the oldest Cretaceous. Strata of early and middle Cretaceous age occur east of the main axis of New Zealand at several points from Marlborough to East Cape. Late Cretaceous beds are much more widely distributed, being known in North Auckland and in many localities along the eastern side of both Islands. They contain thick layers of black shale that give many indications of oil, which, however, has not yet been found in commercial amount. The oldest known workable coal-seams in New Zealand, those at Broken River, Malvern Hills, Shag Point, and Kaitangata, and perhaps some near Greymouth, are in young Cretaceous beds. Of the same age are the auriferous “cements” of the Tuapeka district that greatly enriched the gravels of the neighbouring streams and are themselves worked for gold.

Tertiary rocks form the greater part of the North Island and are widely distributed in the South. As a whole they are weaker and more readily weathered than the older strata, and hence have given rise to less rugged country, now mostly cleared and grassed and forming productive pastoral land.

Eocene rocks are present in North Auckland, and probably also in the Gisborne, Hawke's Bay, and east Wellington districts. In the South Island they occur on the West Coast and in Canterbury and Otago, in which regions they contain valuable coal-seams worked at Westport, Reefton, Greymouth, Mount Somers, and Milton.

In Oligocene time the maximum subsidence during the Tertiary occurred, and but little of the New Zealand area remained above sea-level at its close. The thick limestones of the Oamaru district and the contemporaneous limestone prominent in many parts of New Zealand are the younger deposits of this age. The older beds contain the extensive coal-measures of the North Auckland, Waikato, Charleston, Nightcaps, and other coalfields.

Miocene strata cover large areas in both islands, and also outcrop in the Mokau, Gisborne, and Hawke's Bay regions. In north Taranaki, the Murchison basin, and parts of the West Coast, thick coal-measures of this age contain workable seams of brown coal.

During the Pliocene the New Zealand area, which had been intermittently rising since the close of the Oligocene, was greatly elevated and deformed. The earth-blocks from which the present mountains have been carved were uplifted from, or from near, sea-level, and New Zealand as it now is was roughly shaped out. In the South Island the deposits of this period are chiefly gravels deposited in structural depressions; but in the North Island, and especially in its southern half, there are thick and extensive shoal-water marine sediments. These, and the underlying Miocene strata, are the source of the petroleum found at New Plymouth, and the lacustrine quartz conglomerates of Otago, probably of Pliocene age, have yielded much detrital gold.

The Pleistocene was a period of regional oscillation. While the land was high the mountains of the South Island were intensely glaciated, and great ice-streams, carrying vast bodies of debris, descended into the low country; after the highlands had been reduced in height through both denudation and decided subsidence the glaciers rapidly retreated, and are to-day represented by comparatively small remnants far in the mountains. While the ice was melting, the rivers of the South Island were unusually active in transporting waste to the lowlands and the sea. At this time, too, as well as somewhat earlier, the volcanoes of the North Island ejected an abundant supply of fragmentary material, much of which was borne away by the streams and used in building plains.

The deposits of Pleistocene and Recent age are in New Zealand of greater economic importance than those of all other ages. The plains, river-flats, and low-lands generally were formed or profoundly modified during this period, and the soils that cover them were produced. During the same time practically all the gold won from the gravels of the South Island was liberated from a hard matrix and concentrated into workable deposits, and the rich bonanzas of the lodes of Hauraki were formed by secondary enrichment. The land-oscillations of the period are also of economic importance, for New Zealand's abundant water-power is derived from streams that have not yet, owing to the recency of land-uplift, cut their valleys to grade. On the other hand, land-depression has provided harbours and valuable artesian basins in many parts of the Dominion.

IGNEOUS ROCKS.

Plutonic rocks intrude the Palæozoic and Mesozoic strata in many places, and some of the formations show evidence of contemporaneous volcanic action. Of the plutonic rocks granite is much the most prominent, and it outcrops at many points in west Nelson, Westland, Otago, and Stewart Island. In Nelson there were at least two periods of intrusion, probably corresponding with the great mountain-folding movements of the late Palæozoic and early Cretaceous times. The auriferous lodes of Reefton and other localities on the West Coast probably originated from the cooling magmas that formed the younger granites. Basic and ultra-basic rocks, the latter now largely altered to serpentine, occur in Nelson, Westland, Otago, and, to a less extent, in North Auckland.

Though volcanoes are known to have existed in Mesozoic and Palæozoic times, they seem to have been more active during the Tertiary than in any earlier age. The vast pile of flow and fragmental rocks that form the Hauraki Peninsula and the range that continues it southward to Tauranga belong to this period. The gold-silver veins extensively worked at Coromandel, Thames, and Waihi are in these rocks, which southward are smothered by the rhyolitic pumice that vents in the Taupo-Rotorua zone ejected during the late Pliocene and Pleistocene. Thick showers of pumice from this region cover a large part of the centre of the North Island, and streams have carried the finer material to practically all the low-lying parts of the Island. The volcanoes are still alive, as is evidenced by the steam-vents, hot springs, and geysers found in the depressed zone extending from Ruapehu to White Island. The volcanic rocks of Taranaki probably range from the Miocene to the Pleistocene in age. The basalts and scoria cones that occur so abundantly between Kawhia and the Bay of Islands belong for the most part to the late Pliocene and Pleistocene, though cones at Auckland City are probably Recent.

In the South Island the volcanoes appear to be quite dead, for the hot springs at Hanmer and near the alpine chain are due to other causes. In the middle Tertiary, however, there were outbursts at many points, the chief eruptions being at Banks Peninsula and about Dunedin.

CONCLUSION.

In a short article it is impossible to give an adequate idea of what geological workers have accomplished in New Zealand, or of what they have yet to do in order that the wisest use may be made of the country's mineral and agricultural resources. For good general accounts the treatises of Professors Park and Marshall should be consulted, and for more detailed information the bulletins of the Geological Survey and the many papers that have appeared in the Transactions of the New Zealand Institute (now the Royal Society of New Zealand).

EARTHQUAKES.

The following article deals with earthquakes in New Zealand. The first section of the article has been prepared by Dr. J. Henderson, Director of the Geological Survey, and the remaining sections by Mr. R. C. Hayes, Acting-Director of the Dominion Observatory.

GEOLOGICAL CONSIDERATIONS.

Earthquake and volcanic activity are manifestations of the adjustments constantly occurring in the earth's crust. In the not far distant past, geologically speaking, a more or less continuous belt of mountains was raised up round the border of the great sunken area of the Pacific, and this belt as a whole is characterized by “chronic and acute seismicity.” At times the earthquakes occur within the belt itself, though a large proportion have their epicentres on its submerged frontal slope.

The South Island of New Zealand and the eastern part of the North Island are on the crest of the great mountain ridge or crustal fold which forms a portion of the real border of the Pacific. This ridge maintains a relatively straight course north-north-east for 1,600 miles across the floor of the Pacific, nearly to Samoa. The Auckland Peninsula, part of a decidedly weaker fold, meets the main fold nearly at right angles in the Rotorua-Taupo volcanic region. The earthquakes of this seismically sensitive district, though they may be locally severe, are not usually felt far from their points of origin. On the other hand, the tectonic earthquakes that occur along the main earth-fold shake large areas, some of them being recorded on instruments throughout the world. These are caused by the slipping of earth-blocks against their neighbours along fractures.

Many great fault-zones have been traced for long distances, but a few only have been active since European occupation. The Hawke's Bay earthquake of 1931 raised an area sixty miles long in a north-east direction and in parts ten miles wide. the uplift was greatest along the south-east edge of the area—for miles amounting to 6 ft. or more. Numerous levels on the Heretaunga Plain and along the railway north of Napier show that the uplift decreased north-westward, so that the area was slightly tilted in that direction. The ground east of the uplifted area sank, and parts of the Napier and Wairoa flats are over a foot lower than before the earthquake.

In 1929, movement along a north-trending fault seven miles west of Murchison raised the ground east of the fault by about 15 ft., and caused it to shift north-west by about 9 ft. The uplift gradually decreases eastward and dies out sixteen miles from the fault, facts indicating a slight tilt of the earth-block toward the east. Recent levellings show that the block is sinking somewhat irregularly, a movement, no doubt, causing some of the innumerable local after-shocks felt in the area over many months. Other sensible earth-movements occurred in connection with the Taupo earthquake series of 1922,* the Amuri earthquake of 1888, the Wellington earthquake of 1855, and probably the Awatere earthquake of 1848.§ There is also definite evidence of geologically recent differential movement of earth-blocks at several widely separated points in both Islands.

THE SEISMICITY OF NEW ZEALAND.

A comparison between the records of destructive earthquakes in New Zealand and similar records in other seismic countries shows that the seismicity of New Zealand in general is surprisingly high. This, however, is due to the occurrence of a large number of earthquakes of the semi-destructive type, with comparatively few of the disastrous type.

During the period 1835-1934 sixty-nine destructive earthquakes are known to have occurred in New Zealand, forty-nine of which were of the semi-destructive type (not exceeding intensity R.-F. 8). There were fourteen of intensity 9, and six of intensity 10. The distribution of earthquakes throughout New Zealand itself during the period 1848-1934 shows that the region of intense seismic activity, where earthquakes are frequent and occasionally severe, includes the eastern and southern parts of the North Island and the northern part of the South Island.

The Auckland Peninsula, South Canterbury, and Eastern Otago appear to have been comparatively free from earthquakes during the past hundred years. Although the seismic history of the Fiord region of the South Island is not very well known, there are records of sealers having experienced violent earthquakes in those parts in 1792, 1810, and 1826-27.** Also there is some record of violent earthquakes having occurred near Auckland in 1834-35.††

It is thus evident that, although some parts of New Zealand have experienced no severe earthquakes during the past hundred years, no assurance can be given that none will occur there in the future.

The following table, compiled for some of the main centres in New Zealand, shows—(1) The mean annual frequency of all earthquakes during the period 1848-1934; and (2) the number of destructive earthquakes during the period 1835-1934‡‡:—

Centre.Mean Number of Shocks per Year.Number of Earthquakes of Intensity R.-F. 8 or over.
Auckland0.31
New Plymouth2.76
Napier3.35
Wanganui4.110
Masterton2.06
Wellington7.814
Nelson3.75
Westport4.93
Christchurch2.03
Dunedin1.0 
Invercargill0.6 

* P. G. Morgan: N.Z. Geological Survey; Annual Report for the year 1923, p. 10.

† Alexander McKay: Reports of Geological Explorations during 1888-89. Wellington, 1890.

New Zealand Government Gazette, Wellington, Vol. 2, No. 14, 17th October, 1855, p. 116. Sir Charles Lyell, “The Principles of Geology,” tenth edition, 1868, Vol. 2, p. 82. London: John Murray.

§ New Zealand Government Gazette, Wellington, Vol. 1, No. 27, 13th November, 1848, and Vol. 1, No. 29, 20th November, 1848. H. S. Chapman in Westminster Review, Vol. 51, 1849.

‖ L. Bastings: “Destructive Earthquakes in New Zealand, 1835-1934,” N.Z. Jour. Sci. & Tech., Vol. 17, No. 1, July, 1935. Dominion Observatory Bulletin 103.

¶ L. Bastings and R. C. Hayes: “Earthquake Distribution in New Zealand, 1848-1934,” N.Z. Jour. Sci. & Tech., Vol. 16, No. 5, March, 1935. Dominion Observatory Bulletin 95.

** R. McNab: “Murihiku and the Southern Islands” (1907). R. Taylor: “Te Ika a Maui,” London, 1855.

†† Australasian Association for the Advancement of Science, Vol. 3, 1891, p. 531.

‡‡ R. C. Hayes: “The Seismicity of New Zealand Cities and Towns,” N.Z. Jour, of Sci. & Tech., 1936. Dominion Observatory Bulletin 111.

Although there appears to be no regular annual variation in the frequency of New Zealand earthquakes, the mean monthly numbers over a long period indicate that earthquakes are on the average most frequent in March and least so in January. The mean monthly numbers follow approximately the mean annual variation of atmospheric pressure in New Zealand.*

The total number of earthquakes reported felt in New Zealand, and the maximum intensities reported in each of the years 1921 to 1938 inclusive, were as follows:—

Year.Number of Earthquakes reported felt.Maximum Intensity of Heaviest Shock, R.-F. Scale.Year.Number of Earthquakes reported felt.Maximum Intensity of Heaviest Shock, R.-F. Scale.
1,9218181,9307488
1,9221,18781,93143210
1,9237661,9323139
1,9247071,9331087
1,9257681,9342309
1,92617381,9351507
1,92710781,9361236
1,9288081,9371796-7
1,929678101,9381328

The figures in the above table, giving the number of reported earthquakes, require careful interpretation. In years of major earthquakes, such as 1929 and 1931, many of the numerous after-shocks are liable to be passed unnoticed, while during a period of quiescence there is a tendency for all shocks, however slight, to be reported. This leads to an undue emphasis being placed upon earthquake activity during a comparatively quiet period. The great number of earthquakes reported in 1922 is due to the swarm of local shocks which occurred in the Taupo region in the latter half of that year. Also, although there was no major earthquake in 1930, a large number of shocks occurred in that year, due mainly to the continuation of after-shocks of the Buller earthquake of 17th June, 1929.

DEATHS DUE TO EARTHQUAKES IN NEW ZEALAND.

During the period 1848-1938 the number of deaths recorded in New Zealand as due directly or indirectly to earthquakes was 284. Of these, 255 were due to the Hawke's Bay earthquake of 3rd February, 1931. A table giving details of the number of deaths due to earthquakes in New Zealand was published in the 1936 issue of the Year-Book.

EARTHQUAKE INVESTIGATION IN NEW ZEALAND.

Earthquakes in New Zealand are recorded by means of seismographs, and also by a system of non-instrumental reports. The main seismograph stations are located at the Dominion Observatory, Wellington, and the Magnetic Observatory, Christchurch. The Dominion Observatory acts as a central station for ten other subsidiary stations in New Zealand and one at the Chatham Islands. The subsidiary stations are operated by officers of other Government Departments, by Engineers of some of the Electric-power Boards, and by private individuals. The station at Apia, Samoa, is under the direct control of Apia Observatory.

The system of non-instrumental earthquake reports was inaugurated in 1888. At first it was confined to a selected number of telegraph-offices distributed throughout the Dominion, but in recent years more telegraph-offices have been added, and a number of lighthouse-keepers and several private observers have also taken up the work. There are at present 120 non-instrumental reporting stations. This system of recording earthquakes depends entirely on personal observations. Special forms are used, on which information is required concerning the observed time of an earthquake, the direction and duration of the movement, and any other particulars likely to be of value in estimating its intensity. The Dominion Observatory collects and summarizes all such reports of earthquakes felt in New Zealand.

*R. C. Hayes: “Earthquake Frequency in New Zealand,” N.Z. Jour. Sci. & Tech., Vol. 16, No. 5, 1935. Dominion Observatory Bulletin 104.

Information regarding earthquakes obtained from the seismograph records of all the New Zealand stations, and from the reports furnished by non-instrumental stations, is published in a monthly seismological bulletin. This bulletin includes provisional earthquake epicentres in New Zealand and in the south-west Pacific generally. The New Zealand epicentres are determined solely from the records and reports of the New Zealand stations, while the determination of those in other parts of the south-west Pacific requires the use of additional data from Apia, Papeete, and the Australian seismograph stations.

The Dominion Observatory also publishes special bulletins dealing with the results of research work in seismology. All seismological publications are distributed to the chief seismological stations and institutions throughout the world.

EARTHQUAKES IN 1938.

Seismic activity in New Zealand in 1938 was notable chiefly for a series of rather severe earthquakes towards the close of the year. Although the number of shocks felt was less than in 1937, the maximum intensity reported (R.-F. 8) was the highest since 1934. The activity in 1938 may be summarized as follows:—

  1. Occasional small shocks felt at Whakatane. These may be due to volcanological activity on or near White Island; but no data are available from the island to confirm this.

  2. Periodic activity in Hawke's Bay region, with four prominent shocks during the year, two of which reached minor destructive intensity. The first shock occurred on 18th January, and had an epicentre not far from that of the Pahiatua earthquake of 1934. The second shock occurred on 14th June, and originated near the point where the most recent work has placed the origin of the Napier earthquake of 1931. It indicates that the block which moved in 1931 is still undergoing seismic strain. The shocks of 15th and 30th December originated close to the Mangatoro fault, along which traces of comparatively recent activity have been reported by the Geological Survey. These two shocks reached intensity R.-F 8 in the epicentral region.

  3. A continuation of moderate activity in the Wanganui region, with a marked disturbance centreing round 23rd November. Particulars of this disturbance are given below in the list of the most important earthquakes in 1938. The active zone centred near Wanganui has extended as far north as Whangamomona and Ohakune, and south into the South Taranaki Bight. It is possible that the shocks in this region are due to magmatic movements.

  4. A continuation of mild activity in north-west Nelson. About forty shocks were reported during the year, but none exceeded R.-F. 6, and most of them were local.

  5. Two earthquakes, on 31st October and 1st November, are noteworthy on account of their focal depth, which was of the order of 200 kilometres. As is usual in deep-focus shocks, some interesting anomalies in surface intensity were recorded. The epicentres of both shocks were to the north-east of Taupo, and, although the first and stronger one was felt generally in the eastern districts of the North Island and on both sides of Cook Strait, it was not reported felt at several places comparatively close to the epicentre, such as Taupo, Rotorua, and Tauranga. The second shock was reported felt only at Waipawa and Paraparaumu.

  6. After a long period of comparative quiet, the south-west portion of the South Island was shaken by a powerful disturbance on 17th December, the maximum intensity reported being R.-F. 6-7 at Queenstown. The origin of this shock was deeper than normal, and an intensity of R.-F. 6 was experienced in most parts of western Otago and Southland. It was followed by numerous aftershocks during the latter half of December, some activity continuing well into the following year. One hundred and seventy-five shocks were recorded on the Jaggar seismograph at Monowai up to the end of December, 1938.

The following list gives some particulars of the most important New Zealand earthquakes in 1938:—

Date.Time (N.Z.M.T.)Approximate Epicentre.Maximum Intensity (R.-F.).Remarks.
Latitude.Longitude.
1938.h. m.oo  
Jan. 1814 1440.8 S.175.95 E.7+Felt extensively in southern half of North Island, with maximum in Wairarapa; also felt in Nelson and Marlborough.
Feb. 2405 5940.3 S.174.4 E.5Felt in western districts of North Island south from New Plymouth, with maximum at Wanganui.
June 1413 5639.4 S.176.6 E.7Felt extensively in southern part of North Island, with maximum in Hawke's Bay.
Aug. 605 0137.0 S.177.5 E.4-5Felt in eastern and central parts of North Island, and about Cook Strait. Focal depth greater than normal.
Sept. 1306 0040.3 S.175.6 E.5-6Felt in southern parts of North Island, with maximum at Palmerston North.
Oct. 2603 1040.9 S.172.3 E.6Felt in north-west portion of South Island; also slightly at New Plymouth.
Oct. 3100 1638.5 S.176.5 E.5Felt extensively in North Island from Bay of Plenty southwards (chiefly in eastern districts), with maximum in Hawke's Bay. Also felt in northern part of South Island. Focal depth, 150-200 km.
Nov. 2312 5240.1 S.175.2 E.6+Felt in western areas of North Island, south from Awakino and slightly at Collingwood. Maximum in South Taranaki and about Wanganui. There were several aftershocks over a period of two days.
Dec. 1520 4140.3 S.176.4 E.8Felt over whole of North Island, except Auckland Peninsula, with maximum in southern Hawke's Bay. Also felt at isolated points in South Island as far south as Greymouth and Banks Peninsula, and at Chatham Islands.
Dec. 1704 5145.0 S.167.0 E.6-7Felt extensively in South Island as far north as Westport and Christchurch, with maximum in region of Milford Sound. Intensity 6, widely distributed in Otago and Southland. Deeper than normal.
Dec. 3013 5140.3 S.176.4 E.8Felt extensively in North Island, with maximum in southern Hawke's Bay and northern Wairarapa. Also felt at isolated points in northern part of South Island.

A total of 132 shocks was reported felt during 1938, 80 of which were felt in some part of the North Island and 60 in some part of the South Island. Eight shocks were felt in both Islands. The maximum intensity was R.-F. 8, and this occurred in parts of southern Hawke's Bay and northern Wairarapa on 15th and 30th December.

The following is a monthly summary of earthquakes reported felt during 1938:—

Month.Number of Earthquakes reported felt.Maximum Intensity (R.-F.).Locality of Maximum.
North Island.South Island.Both Islands.Whole of New Zealand.
  1938.      
January1421157+Wairarapa.
February34 75-6Wanganui, Queenstown.
March64 106Kahurangi Point.
April52 74Taranaki, Hawke's Bay, Upper Takaka.
May38 115Taranaki, Upper Takaka.
June105 157Hawke's Bay.
July24155Upper Takaka.
August52164-5Wairoa.
September73 105-6Palmerston North.
October932106Kahurangi Point.
November1041136+Hawera.
December6192238Southern Hawke's Bay and northern Wairarapa.
  Totals806081328 

CLIMATE.

The following article on the climate of New Zealand was prepared by the late Dr. E. Kidson, O.B.E., D.Sc., F.R.S.N.Z., Director of Meteorological Services:—

THE METEOROLOGICAL OFFICE.

The New Zealand Meteorological Office is situated at Wellington. Aviation-service stations are established also at Auckland and Christchurch (Wigram Aerodrome). General weather forecasts based on observations at 9 a.m. and 3 p.m. are issued at noon and 5 p.m. respectively. District forecasts are telegraphed at midday to certain of the principal seaports, where they are displayed at the post-offices, and are provided, also, to the leading newspapers. The evening forecast is published by the newspapers on the following morning. Weather reports intended primarily for aviators are transmitted from Station 2YA of the National Broadcasting Service at 6.50 a.m., 10 a.m., and 1 p.m. With the 1 p.m. issue is given the noon forecast for the Dominion and the Wellington District forecast. District forecasts are broadcast at 1 p.m. also from Stations 1YA, 3YA, and 4YA. In the late afternoon a special Dominion forecast for farmers is issued from each of the main centres. In the evening the Dominion forecast is broadcast once or twice from the four main centres, followed by district forecasts. The first issue from 2YA during the news session, which commences at 7 p.m., gives, in addition, weather reports from a series of observation stations distributed over the Dominion and the surrounding area.

Rainfall data from approximately four hundred stations are printed monthly in the New Zealand Gazette. Observations of temperature, pressure, sunshine, wind, &c., from about forty-five stations are published annually by the Meteorological Office. Papers on various aspects of the climate and weather of the Dominion are published from time to time as “Meteorological Office Notes.”

CLIMATE: GENERAL CONDITIONS.

New Zealand lies wholly within the Temperate Zone, and it is also wholly and at all seasons within the zone of prevailing westerly winds though they are stronger and more persistent farther southward. Owing to its isolation and its narrowness in the direction of the prevailing winds, its climate is predominantly marine in character. Nevertheless, the modifications due to the height and continuity of the main ranges and the general high relief of the country are quite considerable, especially in the South Island. There is, for example, a very great variation in the rainfall from the western to the eastern side of the Southern Alps, and for so narrow a country, features of a continental type are rather strongly developed in the interior of the South Island. By breaking up the prevailing winds and causing the air at different levels to mix, mountains tend, also, to prevent the stratification of the air into layers of different density. Consequently very extensive and persistent cloud-sheets are seldom experienced. New Zealand therefore enjoys a high percentage of sunshine, a factor of great importance in the climate of a country with so high a rainfall.

The principal current in the surrounding ocean waters is from south-west to north-east. Off the west coast of the South Island, however, the current divides, one branch turning southwards to Foveaux Strait, while others pass through Cook Strait and round the northern extremity of the Dominion. The rather small range in climate from north to south is probably accounted for by this current.

According to the widely accepted classification of climates developed by W. Köppen, New Zealand has the climatic formula Cfb, denoting a cool-temperate moist climate without marked seasonal variations in temperature or precipitation. Under the same formula are classified southern Victoria and Tasmania and parts of southern Chile in the Southern Hemisphere, much of Europe, Japan and Korea, and a strip of the west coast of North America in the Northern Hemisphere. Generally, however, it is a climate characteristic of the ocean rather than the land areas of the Temperate Zone.

Tables 1 to 10 appearing in the following pages relate to varying, but usually lengthy, periods. In Table 11 the duration covered by the respective averages for that table is given.

RAINFALL.

Of all the climatic elements, probably the one that exerts the greatest influence on our lives is rainfall. It causes us much personal discomfort, but the production of the food by which we live depends directly on the availability of moisture from this source. Maps showing the distribution of mean annual rainfall appeared in issues of the Year-Book prior to 1934.

The controlling influence of topography on rainfall in New Zealand is very conspicuous. Areas exposed to the westerly winds have heavier rains than those protected from them by mountain ranges. Next, the greater the altitude the greater in general is the precipitation. There must be a limit beyond which precipitation begins to decrease again with altitude, but this has not yet been determined in this country. The indications are that precipitation is heaviest between 3,000 ft. and 4,000 ft. The annual total varies from about 13 in. at Galloway in Central Otago to over 200 in. in parts of the Southern Alps and on Mount Egmont.

The distribution of the precipitation throughout the year is little less important than its total amount, the effect of rainfall in winter, for example, being very different from that in summer. There are three principal factors controlling the annual variation of rainfall in New Zealand. The first of these is the proximity to the high-pressure belt in the subtropics. In this belt the rainfall year is divided into a dry summer and a wet winter season. We will call this distribution type A. As the distance from the high-pressure belt increases, the contrast between summer and winter decreases, so that by the time southern New Zealand is reached the variation due to this factor is small. The next most important factor is the influence of the prevailing westerly winds. These bring rains to the areas exposed to them, while areas which are protected from them by mountain ranges have little rain when the westerlies are blowing. Now, the westerly winds are strongest in spring, the maximum flow being in October. There is a temporary drop in February, followed by a partial recovery in the autumn, but the flow is least in winter. The régime of the westerly winds, therefore, tends to produce a second type of annual variation, type C, in which the rainfall is heaviest in spring, decreases somewhat in the late summer, increases again in the autumn, and decreases to a minimum in winter.

The third factor is the convection which takes place during periods of light winds, clear skies, and intense sunshine, especially when the preceding winds have brought cold air over the land from the south. After conditions of the type mentioned have endured for several days, the convection is likely to be so intense as to produce local showers. These are often heavy, sometimes accompanied by thunder, and occasionally of the nature of local cloud-bursts. Rainfall of this type is most common in the interior of continents. Being caused by solar radiation, it is most frequent when solar radiation is strongest—namely, in summer. According to type B, therefore, we would have a relatively wet summer and a dry winter.

Table 1. Monthly Rainfall, in Inches. (Average of period of years.)

Jan.Feb.Mar.April.May.June.July.Aug.Sept.Oct.Nov.Dec.Year.
Cape Maria van Diemen1.712.882.033.864.834.623.993.732.842.561.611.6536.31
Auckland2.743.043.013.544.664.955.074.233.713.723.312.9144.89
Rotorua4.213.703.514.525.725.235.054.975.135.244.143.7655.18
Tolaga Bay3.214.424.735.497.716.386.706.063.603.262.963.0357.55
Riversdale, Inglewood7.566.077.128.099.7410.2910.218.809.6910.399.227.57104.75
Napier3.022.763.162.783.713.513.823.502.222.232.432.3135.45
Waitatapia, Bulls2.432.502.463.003.533.183.252.682.783.633.222.7135.37
Ditton, near Masterton3.142.963.583.675.454.985.594.783.714.303.563.0148.79
Wellington2.812.673.113.533.984.194.713.823.113.412.902.8441.08
Nelson2.802.592.962.993.063.543.523.033.693.492.992.9837.64
Marshlands, Blenheim2.192.202.252.272.943.193.582.662.712.502.351.9930.83
Hanmer3.933.193.283.304.393.564.443.414.653.873.613.9445.57
Hokitika9.897.149.749.299.719.308.879.279.2111.8310.7310.44115.42
Christchurch2.201.711.981.852.532.682.691.851.741.691.922.1524.99
Peel Forest4.844.054.383.542.512.753.422.573.773.854.014.8544.54
Oamaru2.041.741.801.761.592.011.741.751.661.731.912.2421.97
Clyde1.821.061.501.421.000.930.920.801.051.621.351.7915.26
Dunedin3.422.712.942.743.113.163.013.092.753.123.253.5436.84
Invercargill3.963.113.894.144.343.633.283.253.274.504.414.0745.85

A rainfall régime of type A in a fairly pure form is experienced in the part of the Auckland Province, north, roughly, of Kawhia and Tauranga, and on the eastern side of the main ranges from Cook Strait to East Cape. It is still dominant in the lower country about the Tasman and Golden Bays, and in Marlborough and North Canterbury. Type C is developed strongly in Westland and the south-west Fiord country. It is shown fairly well by Hokitika, but much more distinctly if the data for a number of West Coast stations be combined. It is dominant in the far South, in the mountains of Nelson, and in the portion of the North Island not yet referred to. In this latter area, however, types A and C combine in varying proportions. Most districts show the effect of the westerly winds in a relatively high rainfall in October, but this is least noticeable in the low country east of the main ranges. The areas where type C dominates are those with the heaviest rainfall. Type B is dominant in the interior and southern portions of Canterbury and the central and eastern portions of Otago, and is especially characteristic of the dry areas of the provinces mentioned. The summer rains of this type are of great importance to the farming communities in the interior of Canterbury and Otago. The régime of annual rainfall experienced had an important influence in determining the nature of the primitive vegetation in the various districts.

Table 2. Days with Rain. (Average of period of years.)

Jan.Feb.Mar.April.May.June.July.Aug.Sept.Oct.Nov.Dec.Year.
Auckland10.39.811.114.118.719.520.919.417.616.615.911.8185.7
New Plymouth12.710.411.913.317.717.618.818.417.618.416.314.2187.3
Napier7.87.57.78.010.411.112.011.99.88.88.57.7111.2
Wellington10.78.911.212.816.417.018.117.115.114.112.812.0166.2
Marshlands, Blenheim7.15.86.87.58.58.49.99.08.59.58.27.897.0
Hokitika13.311.414.315.215.415.315.915.616.919.217.816.3186.6
Christchurch9.77.79.29.611.712.613.211.310.09.710.39.8124.8
Clyde7.75.16.16.05.75.65.15.86.17.97.07.976.0
Dunedin14.311.212.712.813.513.013.113.013.714.314.514.7160.8
Half-moon Bay18.516.217.818.020.419.919.719.018.620.220.818.2227.3

Next to the amount and the annual variation of precipitation, the frequency with which it falls is its most important characteristic. In Table 2 the average number of days with rain in each month is given for some representative stations. A day with rain is one on which 0.005 in. or more is measured. Generally speaking, there is a fairly close relationship in New Zealand between the amount of rain and the number of rain days, but the latter is not directly proportional to the rainfall. There are considerable areas on the west coast of the South Island, for instance, which have ten or more times as much rain as the driest portions of the interior, but only about double the number of rain days. Marlborough seems to have a small number of wet days compared with its rainfall. To the south of New Zealand there is a rapid increase in cloudiness, showers fall with great frequency, and the number of rain days becomes high. New Zealand is extremely fortunate in that, even where the rainfall is very heavy, intervals between rains are almost everywhere sufficiently frequent and prolonged to ensure adequate drainage, while there is enough sunshine to dry the soil surface. Otherwise, large areas in the west and south would be covered with peat.

TEMPERATURE.

Temperature is no less important than rainfall in determining the living conditions of a country and the yield from its soil. But it is much less variable, and in the Southern Hemisphere especially, is largely determined by latitude. Its influence is therefore taken much more for granted. The specification of the temperature of a place is, however, not so simple a matter as might appear. Many different factors are involved in the determination of the precise temperatures experienced in any locality. The sea, for instance, responds very slowly to both daily and yearly changes in the amount of heat received from the sun, while on the land the response is rapid. Consequently, the nearer a station is to the sea the smaller are its daily and yearly fluctuations of temperature. It is to this effect that the principal difference between a continental and a marine climate is due. Although New Zealand is narrow, the high ranges shield the country to the east of them to a considerable extent, so that there is a nearer approach to continental conditions than would otherwise be expected, particularly in the interior of Canterbury and Otago. Again, on plain country the air tends to stagnate, especially at night. At night-time the surface layer cools rapidly through radiation from the ground, while during the day it becomes heated by the sun. There is less stagnation in the warm layer of the daytime than in the cold layer of the night. Consequently, stations on level plains or plateaux tend to be subject to frost and to have a relatively low mean temperature. The effect is accentuated near the slopes of hills because the cold air flows away down the slopes to lower levels. The hills, therefore, gain freedom from frost at the expense of the plains. In windy situations, also, the susceptibility to frost is lowered owing to the prevention of stagnation. Apart from the effects due to air-drainage and windiness, the temperature decreases with altitude. In temperate latitudes the fall is about 9° F. per kilometre. It is unsound, therefore, to compare, for example, temperatures recorded at Thorndon, Wellington, which was only 12 ft. above sea-level, with those at the present meteorological station at Kelburn, which is at an altitude of 415 ft., without making allowance for this difference in altitude. Such a procedure would lead to the erroneous conclusion that the climate had become colder. If charts of mean temperature are to be prepared it is clear that they will be very complicated, especially in a mountainous country like New Zealand, owing to this effect of altitude. It is usual, therefore, to simplify matters by applying a correction at the rate of 9° F. per kilometre or approximately 2.7° F. per 1,000 ft. This has been done in Table 3. The Rotorua values, for example, have been increased by 2.5° F., the station being 925 ft. above sea-level. If the actual temperature is required, it can be found by reversing this process.

In New Zealand publications it has been the general practice to derive monthly mean temperatures from the means of the daily maximum and minimum. But, even on the average, the mean of the maximum and minimum differs slightly from the true mean for the day. The correction to the mean for the day has been determined from the records of thermographs with fair accuracy at Wellington and more roughly at several other places.

In Table 3, therefore, the temperatures are reduced to sea-level and mean of day. For the remainder of the temperature tables the observed readings have been used without correction. All are in Fahrenheit degrees.

Table 3. Mean Temperature reduced to Sea-level. (Average of period of years.)

Jan.Feb.Mar.April.May.June.July.Aug.Sept.Oct.Nov.Dec.Year.
Waipoua61.762.260.757.454.151.549.249.751.453.255.858.655.4
Auckland64.965.263.359.656.153.451.551.953.855.958.862.358.0
Rotorua64.764.461.456.752.449.347.848.951.955.358.662.056.1
New Plymouth62.962.961.257.854.451.449.750.152.254.256.860.456.2
Napier64.163.360.957.752.648.847.448.451.555.658.661.355.9
Taihape63.763.260.957.051.948.747.448.251.054.556.660.355.3
Masterton63.162.259.655.150.447.046.047.050.453.856.560.554.3
Wellington61.761.659.756.252.549.447.748.451.253.656.159.554.8
Nelson61.861.458.955.150.146.345.346.349.752.956.059.053.6
Hanmer62.562.359.654.748.344.243.145.150.154.156.560.153.4
Hokitika58.858.857.053.448.945.744.545.648.951.553.456.751.9
Christchurch60.459.957.052.747.743.142.343.948.452.455.759.051.9
Ophir62.061.557.351.442.436.637.541.446.852.154.759.450.3
Dunedin58.157.855.952.448.145.143.845.648.951.453.355.851.4
Invercargill56.656.454.050.345.742.341.343.547.050.451.854.449.5

The stations given in the above table were chosen with a view to illustrating the effect of changing latitude, the difference between east and west coasts, especially in the South Island, and the contrast between coastal and inland conditions. Waipoua is in the Auckland Peninsula, north of Dargaville, and Ophir in Central Otago.

Table 4. Auckland (Albert Park, 160 ft.). (Average of period of years.)

Jan.Feb.Mar.April.May.June.July.Aug.Sept.Oct.Nov.Dec.Year.
Mean daily maximum72.672.970.966.962.158.657.057.860.163.266.069.364.8
Means highest maximum78.678.676.472.267.364.062.562.865.468.672.075.779.7
Absolute highest max.84.285.080.877.471.567.065.067.070.072.076.379.685.0
Mean daily minimum59.760.458.555.351.348.146.246.248.951.754.156.853.1
Mean lowest minimum51.853.051.546.442.739.538.139.141.744.347.149.437.3
Absolute lowest min.48.048.046.041.038.036.535.035.537.841.041.043.535.0
Days of frost in screen........................0.0
Days of ground frost..........0.10.70.1........1.0

Table 5. Taihape (2,157 ft.). (Average of period of years.)

Jan.Feb.Mar.April.May.June.July.Aug.Sept.Oct.Nov.Dec.Year.
Mean daily maximum68.067.364.659.952.848.547.448.852.857.459.664.357.6
Mean highest maximum78.077.374.469.062.258.257.157.462.066.669.974.979.5
Absolute highest max.87.381.078.076.269.865.061.063.267.073.475.882.087.3
Mean daily minimum50.049.848.244.940.737.636.436.639.142.144.047.043.0
Mean lowest minimum39.539.538.234.631.929.228.028.730.032.034.437.026.4
Absolute lowest min.31.932.034.830.027.020.424.025.425.525.031.430.220.4
Days of frost in screen......0.21.43.66.04.22.50.50.2..18.6
Days of ground frost0.20.50.62.45.38.512.011.26.02.61.00.651.1

Table 6. Wellington (Altitudes various). (Average of period of years.)

Jan.Feb.Mar.April.May.June.July.Aug.Sept.Oct.Nov.Dec.Year.
Mean daily maximum69.369.366.962.958.354.853.154.357.560.463.266.761.3
Mean highest maximum78.177.774.970.265.361.359.661.564.568.071.075.079.8
Absolute highest max.85.088.080.581.171.069.066.066.069.075.580.583.688.0
Mean daily minimum55.755.854.251.347.244.142.442.845.748.450.353.849.1
Mean lowest minimum46.446.744.141.237.434.533.333.436.238.440.944.732.3
Absolute lowest min.39.440.539.135.731.929.928.629.231.034.035.838.428.6
Days of frost in screen........0.00.20.40.40.0......1.4
Days of ground frost0.00.10.21.02.65.47.86.73.11.30.50.128.6

Table 7. Hokitika (12 ft.). (Average of period of years.)

Jan.Feb.Mar.April.May.June.July.Aug.Sept.Oct.Nov.Dec.Year.
Mean daily maximum66.466.564.761.256.853.352.653.656.458.760.663.859.5
Mean highest maximum73.572.571.367.763.759.558.659.562.364.767.070.975.9
Absolute highest max.79.082.484.574.571.563.565.067.167.670.574.179.084.5
Mean daily minimum53.253.151.047.141.938.536.838.042.345.747.951.545.6
Mean lowest minimum43.243.540.636.532.129.929.029.832.235.238.441.928.1
Absolute lowest min.35.037.035.031.028.526.025.526.027.030.032.033.025.5
Days of frost in screen......0.00.94.06.94.60.70.1....17.2
Days of ground frost0.20.10.52.46.912.416.113.85.92.40.70.261.9

Table 8. Christchurch (22 ft.). (Average of period of years.)

Jan.Feb.Mar.April.May.June.July.Aug.Sept.Oct.Nov.Dec.Year.
Mean daily maximum70.469.266.462.155.851.150.352.357.662.465.869.261.0
Mean highest maximum86.683.781.475.768.762.561.564.970.676.179.884.088.4
Absolute highest max.95.794.189.882.377.869.370.070.081.187.890.092.395.7
Mean lowest minimum52.852.549.745.039.936.035.136.340.544.047.150.844.3
Mean lowest minimum41.240.937.232.328.626.126.026.729.432.135.439.024.7
Absolute lowest min.34.034.230.425.621.321.522.723.023.326.030.833.021.3
Days of frost in screen....0.00.74.09.210.18.22.60.50.0..35.4
Days of ground frost0.30.21.45.412.316.917.717.310.46.53.60.992.9

Table 9. Dunedin (240 ft.). (Average of period of years.)

Jan.Feb.Mar.April.May.June.July.Aug.Sept.Oct.Nov.Dec.Year.
Mean daily maximum66.565.963.158.953.349.347.950.355.159.161.664.558.0
Mean highest maximum81.580.577.371.864.459.357.461.566.873.075.378.084.3
Absolute highest max.94.090.085.085.072.068.066.070.077.083.086.088.094.0
Mean daily minimum49.749.547.844.841.038.637.438.240.642.944.948.043.6
Mean lowest minimum41.341.539.136.733.831.230.531.233.034.837.040.029.4
Absolute lowest min.36.037.034.031.029.024.023.027.029.031.032.035.023.0
Days of frost in screen........0.11.41.71.10.2......4.5
Days of ground frost..0.10.00.75.911.012.49.54.71.00.30.145.7

Table 10. Gore (245 ft.). (Average of period of years.)

Jan.Feb.Mar.April.May.June.July.Aug.Sept.Oct.Nov.Dec.Year.
Mean daily maximum69.068.966.160.153.747.747.151.756.860.963.166.459.3
Mean highest maximum84.984.380.273.864.958.457.162.068.673.077.680.987.9
Absolute highest max.93.091.589.082.070.067.062.069.076.079.086.095.095.0
Mean daily minimum46.746.044.040.435.732.431.633.237.540.842.244.939.6
Mean lowest minimum35.134.932.929.225.923.522.924.628.230.832.635.021.4
Absolute lowest min.30.030.029.025.021.018.020.018.025.027.030.031.018.0
Days of frost in screen0.10.30.51.96.713.115.411.13.71.50.30.154.7
Days of ground frost0.81.43.26.013.022.021.419.911.16.13.21.1109.2

The preceding tables (Nos. 4 to 10) relate to temperature extremes. the first line gives the average of the maximum temperatures as observed each day, the second the average of the highest temperatures observed in each month and the year, and the third the highest yet recorded. Corresponding information regarding minimum temperatures follows. Next comes the average number of days on which the minimum temperature in the thermometer screen fell below 32° F. This gives some idea of the susceptibility to severe frosts, such as would affect fruit-trees. The last line gives the number of ground frosts. According to the British Convention, a ground frost is recorded when the grass minimum thermometer falls below 30.4° F., damage being unlikely at higher temperatures. In the preparation of these tables some of the older records have, for various reasons, been discarded.

SUNSHINE.

In Table 11 are listed for each month and the year the average number of hours of sunshine at all places from which a sufficiently long record is available. The greatest amounts are recorded at places protected from the prevailing winds by high mountain ranges. The excellence of New Zealand's climate, particularly for the growth of pasture, is undoubtedly due to the abundance of sunshine combined with a high rainfall and an absence of extreme temperatures.

Table 11. Bright Sunshine (Hours).

Station.Number of Years.Jan.Feb.Mar.April.May.June.July.Aug.Sept.Oct.Nov.Dec.Year.
Waipoua11202.0152.2151.2131.3104.085.898.8128.6124.5137.4140.3170.91,627.0
Auckland29227.0190.0182.2149.3133.4118.8121.6152.2155.3174.4192.1218.62,014.9
Waihi28-29246.5196.3188.4146.5138.0113.4121.5150.0163.4181.4203.4238.92,087.7
Cambridge8237.8196.3200.4148.4141.5117.8109.2154.1166.8182.9197.7210.82,063.7
Rotorua26-29239.4189.8183.0145.7135.9119.5124.6144.0153.3179.9201.5219.92,036.5
Tauranga6-7266.3187.6208.9171.6162.9158.4147.1176.6190.1223.0208.0259.52,360.0
New Plymouth21-23254.9216.5220.0165.3158.7131.1139.7168.2170.6177.7210.4239.62,252.7
Napier29-31259.6205.2208.8184.9155.2148.2142.1146.7203.7227.1238.3260.12,379.9
Palmerston N.11205.1178.2167.8139.2130.3105.5106.8135.3132.1153.7178.4202.91,835.3
Masterton23-24233.3199.9185.2157.9129.1107.5110.5146.0164.1194.0218.3230.02,075.8
Wellington32230.5206.8189.7153.9131.2105.5108.0141.6163.1182.4207.0227.72,047.4
Nelson17262.9223.4224.8182.1174.4156.5170.8188.0203.8219.6248.1254.32,508.7
Blenheim24-25244.4207.6198.7161.5163.1140.8147.7177.1188.1208.1234.5216.12,287.7
Hanmer Sp'ngs26-29208.9188.9188.3153.2127.0103.7106.3143.4164.3181.5199.8207.31,972.6
Hokitika26210.7185.8180.8135.6133.8114.7131.9147.0153.1160.2178.4199.91,931.9
Christchurch10-11209.3185.7164.1125.2137.897.9122.8145.1162.1187.8204.9202.41,945.1
Sumner12-15199.5180.0177.6141.8132.7111.1124.7147.9165.0194.0200.8203.41,978.5
Lincoln20-32213.4191.7176.5142.6135.7111.4117.3147.7173.4195.1210.5209.32,024.6
Ashburton18-22188.8164.0157.2119.8123.9104.2113.6125.8153.2163.0183.5185.91,782.9
The Hermitage8-9170.0157.2163.7115.282.276.285.997.1135.6153.2172.4180.41,589.1
Lake Tekapo12-14269.4227.8234.6176.7160.6124.2138.5165.1193.8226.7240.9259.52,417.8
Fairlie11-14182.6169.5170.1129.7146.2119.0132.2152.5165.8183.9184.3161.91,897.7
Timaru14187.6163.4163.4120.4141.9122.6127.9144.4162.4171.6184.2171.81,861.6
Oamaru10-11179.6165.3165.2119.1131.5110.8124.6138.4152.3171.3179.2155.41,792.7
Waimate21167.9169.2177.0142.3147.6131.1137.5155.6174.6178.6191.3172.31,945.0
Queenstown9238.4208.8193.7129.895.173.096.8121.8168.7208.4225.9234.01,994.4
Waipiata14234.5203.2200.8161.2149.2120.9136.2150.5179.2197.3208.8218.02,159.8
Alexandra10240.9215.9210.7157.5132.198.3120.9155.9187.5220.5219.7229.72,189.6
Dunedin18-21186.9163.1148.1122.3105.089.7101.9123.7148.1167.3169.9169.41,695.4
Gore18-19221.8182.0166.1125.4115.193.2113.1141.8159.9176.3199.8215.01,909.5
Invercargill19-21195.3156.6131.299.185.473.087.6113.4135.1152.3168.3179.01,576.3

OTHER CLIMATOLOGICAL FACTORS.

Tables giving monthly averages for a number of stations under each of the heads distinguished below, will be found on page 25 of the 1933 edition of the Year-Book.

Fog.—Fog does not play an important part in New Zealand weather. Most of the fogs recorded are shallow radiation fogs occurring only in the early morning. During the approach of cyclonic depressions, however, widespread and persistent fog is a frequent occurrence. Occasionally, parts of the coast are affected by fog in calm weather. The landlocked harbours and estuaries of North Auckland appear to be unusually susceptible.

Snow.—Snow is rare at sea-level, especially in the North Island. In the interior and at high altitudes it occurs more frequently. On the summits of the ranges in the whole length of the South Island and on the highest peaks in the North Island snow falls, on the average, on over thirty days per annum. In the interior of the South Island there is a considerable area of settled country which is subject to half that number. Towards the coast, however, the number falls off rapidly. Data regarding snow lying are scanty. In the North Island any snow falling on the low levels almost invariably melts as it falls, but on the high plateaux it may lie, especially in the hollows, for from one to three weeks during the year. In the South Island it practically never lies at low levels on the north or west coasts, but on the east coast does so on a few days in some years. At altitudes between 500 ft. and 1,000 ft. in the interior of the South Island the average number of days appears to be between seven and fourteen. Railway traffic is seldom interfered with by snow, even to a minor extent.

Hail.—Hail is experienced more frequently as the latitude increases, and more often on the west coast than on the east, the rise in frequency in the extreme south-west and about Foveaux Strait being very marked. It occurs more often in spring than at other times of the year. The majority of the hailstorms recorded, however, are harmless, the stones being quite small, though occasionally severe hailstorms are experienced in New Zealand, with stones reaching a diameter of from ½ in. upwards. The latter are usually associated with thunderstorms, and are probably a little less numerous on the east coast than the west or in the North Island than in the South.

Thunder.—Thunderstorms are more numerous in the North than in the South and on the west than on the east side of the main ranges. They are very rare in eastern districts in winter.

Strong Winds.—Averages give the number of days of strong winds experienced per year as: Auckland, 31.5; New Plymouth, 25.7; Wellington, 57.7; Hokitika, 38.3; and Dunedin, 16.3 days. These figures include a proportion of high winds (force 7 on the Beaufort scale) as well as gales (force 8 and over). The figures for Wellington show the effect of the concentration of the winds through Cook Strait.

SUMMARY OF THE WEATHER FOR 1938.

January.—A very warm and humid month. Sunshine more than average. Though the rain was above average in most districts and very heavy in some areas, there were comparatively few wet days, and in the middle of the month there was almost a fortnight of brilliantly fine weather with little wind. Some very high temperatures were recorded. There was an abundance of pasture. Stock were in good condition, though lambs remained generally on the light side. The milk-yield was well maintained. The condition of the wheat crop improved, and most other crops were doing well. Between the 22nd and the 25th a cyclonic storm approaching from the west across the Cook Strait area was responsible for severe southerly gales which did some damage. General rain accompanied the storm and was heavy everywhere except in the southern part of the South Island. Severe flooding occurred in southern Hawke's Bay, where the falls in the low levels were unprecedented. A number of places recorded over 9 in. of rain in twenty-four hours.

February.—As regards both temperature and humidity, conditions resembled those of the Tropics. The rainfall also, especially in the North Island, was frequently tropical in its intensity and its erratic distribution. Considerable damage was done to roads in the North Island by heavy rain. Slips were numerous. Rainfall was much above average from Nelson and Marlborough northwards, two to three times the normal being experienced over large areas. Many very heavy falls in a single day were recorded. Dry weather persisted in most of Otago and Southland. In spite of the very humid conditions and lack of sunshine the month was the hottest February experienced in New Zealand, the mean temperature being about 5½° F. above normal. Stone-fruit suffered through the high humidity prevailing. There was abundant growth of pasture, and stock were doing well. Conditions were congenial for insects and fungous pests. A cyclone in the north caused easterly gales in the Auckland Province on the 4th. Heavy rain fell from Nelson and Marlborough northwards. The gale caused damage to fruit crops in northern districts. On several occasions, particularly from the 15th to the 19th, sudden heavy rains occurred at many places in the North Island. There was much flooding, particularly between Hawke's Bay and East Cape. The damage caused was very severe, and at a workmen's camp in the Wairoa district grave loss of life occurred.

March.—Again very warm, the mean temperature being, with one possible exception, the highest experienced for a March month since records commenced in New Zealand. Rainfall in general was much below average, but owing to the previous heavy falls, the continued high humidity, and the absence of wind the shortage was not felt. Drought continued in parts of Otago and Southland. Sunshine was above average in most places. Pasture was still abundant and stock and crops doing very well, except that lambs again failed to fatten satisfactorily. Harvesting and farm-work were carried out under good conditions. There was extremely little storm activity, high pressure and anticyclonic weather predominating.

April.—Extremely dull, wet, and warm, with very little wind. Much flooding was experienced, and that of the 24th to 25th in Hawke's Bay was a major disaster for that province. There were grave losses of stock, and damage to roads, bridges, and property. Rich pasture lands, particularly in the Esk Valley, were covered by deep deposits of silt. All previous April records for warmth were again exceeded. In the North Island and western districts of the South, mean temperatures exceeded the normal for April by 6° F. to 8° F. Elsewhere the departures averaged about 3° F. Sunshine was much below average. Dry conditions still prevailed in the far south. There was prolific growth of pasture, but it was very soft. Though stock generally were in good condition, the reverse was the case in much of the South Island. Lambs failed to fatten well. The completion of harvesting was delayed and farm-work interfered with. The conditions prevailing were responsible for serious outbreaks of facial eczema in sheep and cattle, especially in the Waikato and east coast districts of the North Island. As regards storm systems, the month was remarkable for the absence of westerly depressions. Anticyclones travelled in unusually high latitudes. Several cyclones moving from the north affected the Dominion and caused heavy rain. One of these, occurring just before Easter, was responsible for considerable flooding and the disorganization of traffic in the South Island. Another storm, moving down the east coast, gave rise to the phenomenal rains and floods of the 25th (Anzac Day). The total rain produced by the storm amounted in places to over 40 in.

May.—Another very warm month, but extremely dry. There was very little wind and though frosts were fairly frequent no day was very cold. On not more than two occasions previously had the mean temperature in May been so high. There was little snow on the mountains. Pasture was still abundant and had hardened up considerably, especially in the South Island. There were further outbreaks of facial eczema in the North Island, otherwise stock were doing well. A cyclonic storm in the north caused further flooding in the Auckland and Hawke's Bay Provinces on the 4th and 5th. Anticyclonic conditions prevailed, however, during most of the month, and in the South Island particularly, conditions were very quiet.

June.—Though the temperature was about the average, there was a big fall from the previous month, and all forms of life appeared to feel the change rather severely. Rainfall was about normal. A considerable amount of snow fell on the ranges. Sunshine was slightly below average. Abundance of feed was still available for stock, which, with the exception of young sheep, were in good condition. The ground was soft, making farm-work difficult. A number of low-pressure centres formed off the west coast during the month, causing stormy weather.

July.—Dull, wet, and cold. It was the frequency of the rain and the lack of sunshine as much as the amount of precipitation that kept things damp. In Canterbury, Otago, and Southland, it was the coldest July on record. Frosts were frequent and sometimes severe. The soil was saturated and farm-work held up. Stock were reported to be in fair to good condition. A deep depression crossed the Auckland Province between the 10th and 14th. On the 13th there was a very boisterous and widespread south-easterly gale which caused minor damage in many places. Snow fell on the Canterbury Plains and in Central Otago. A series of somewhat similar depressions followed. Flooding occurred in the Auckland and Hawke's Bay provincial districts on three occasions during the month and a considerable amount of snow fell.

August.—After the first ten days there was a spell of mild and sunny weather which brightened the outlook generally. At the end of the month dull and wet weather again set in. Rain was much above average over the northern half of the North Island and in western districts of the South. Elsewhere it was below, and from Canterbury southwards a very dry month was experienced. Mean temperatures were slightly above average everywhere. The dry areas of the South Island had more sunshine than usual, but elsewhere conditions were irregular. The state of stock and pastures varied considerably from district to district, but, on the whole, was less favourable than usual. Vegetation was showing signs of growth, but had not entirely recovered from the cold and wet weather of the preceding months, and the season was somewhat backward. At the beginning of the month two depressions of the type which had been so frequent earlier in the year crossed the North Island. These caused heavy rain over the North Island with snow on the high levels. There was some flooding again in Auckland and Hawke's Bay. Thereafter westerly weather prevailed. On the 10th a northerly gale in the central provinces caused much damage to telegraph and power lines, fences, &c.

September.—Dull, cold, and wet weather prevailed again during the first few days, but from the 10th onward, and especially after the 18th, there was a marked improvement. Temperatures became mild, the atmosphere was dry, and there was little rain in most districts. The total rain was, on the whole, below the average. Mean temperatures for the month were everywhere slightly above normal, and though there were several snowfalls, there was no severe cold. Sunshine was, on the whole, somewhat below average. For the farmer the month was generally a good one. The soil, which had in many places been water-logged, dried out. Chiefly due to difficulties earlier in the year, the percentage of lambs was considerably below that of the preceding two years. Southland and parts of Otago continued to experience dry weather. On the 2nd to the 3rd a very boisterous southerly gale blew in Cook Strait and on the east coast of the South Island. Unsettled and rather stormy conditions occurred at intervals until the 18th, but thereafter anticyclonic conditions prevailed and disturbances were of only slight intensity.

October.—Until about the 20th the weather was dry with a prevalence of strong westerly winds. Thereafter it was humid, and good rains fell, especially in the South Island. At the end of the month, however, there was still a considerable shortage of moisture in most districts, and the growth of pasture was distinctly backward. There were good rains in Canterbury and Otago which were very opportune, but elsewhere totals were below average. Mean temperatures were almost everywhere above normal and there were few frosts. Sunshine was generally much above average. Conditions were very favourable for stock, especially lambs, but the milk-yield was below normal. Apart from pastures, vegetation flourished, and the spring, though late, was a very active one. A depression passing between the 9th and 11th, was responsible for severe north-westerly gales, especially in Wellington and Canterbury. On the 11th there was snow on the hills of Banks Peninsula; otherwise there were no storms worthy of special note.

November.—November completed one of the best springs of recent years. Temperatures were warm, and there was enough rain to ensure vigorous growth of vegetation. The distribution of rainfall was rather irregular, but most districts had more than the average. Except on the Canterbury Plains, mean temperatures were considerably above normal and no extremes of heat or cold were experienced. Sunshine was below average except in the far south. In a few places growth was still rather backward owing to drying winds or previous lack of rainfall, but generally the country was looking particularly well and pasture was abundant. Numbers of native trees produced a remarkable amount of blossom. This was especially noticeable with the cabbage-tree and the beech. The beech forests have seldom displayed such a warmth and variety of colour. Stock were thriving, although some trouble was experienced with lambs, chiefly owing to parasites. The milk-yield was well up to standard. On the 8th and 9th there were some severe local downpours in Central Otago. One at Coal Creek, near Roxburgh, did serious damage to a number of orchards. In other cases large areas of pasture were destroyed. On the 21st there were boisterous south-westerly gales, and a heavy fall of snow occurred on the high levels in Otago and Southland.

December.—A most unseasonable month; cold and wet, with persistent strong winds in many places. Rainfall was much above average. The southern half of the South Island and areas in the centre of the North had the wettest December on record. Night temperatures were very low and there were numbers of frosts. Snow fell relatively frequently on the ranges. Sunshine was below average. Thunderstorms were unusually numerous. On two occasions remarkably persistent thunderstorms, lasting for hours and accompanied by continuous rain, occurred in the central provinces, especially on the west coast. A number of cloudbursts were again experienced in the South Island. The exceptionally frequent rains interfered with haymaking, while shearing and cultivation operations were much delayed, especially in the higher country. The growth of pasture was well maintained. Stock were in good condition, but lambs not fattening well. The cold and damp retarded the progress of crops and garden plants. Blights were rather prevalent. The storms experienced were mainly of the westerly type. Severe north-westerly or northerly gales occurred on the 8th and the 10th.

Year.—The outstanding feature of the year was the almost tropical conditions of warmth and humidity which prevailed from January to April inclusive. May, also, was very warm, but in contrast with the preceding months it was very dry. The only previous period experienced in New Zealand, since records began, comparable in warmth with the summer of 1937-38 and the autumn of 1938 was the summer of 1934-35. On the latter occasion the warm spell began earlier and was of shorter duration. Furthermore, drought prevailed for a large part of the time. From the end of the first week in June until the beginning of August in 1938 cold, wintry weather prevailed. In the southern part of the South Island the cold was severe, and eucalyptus-trees, for example, suffered much damage from frost. Elsewhere, though the departures from normal were not large, and in many cases were positive, coming after the continued warmth of the earlier months, the fall of temperature was felt very much. Growth of vegetation ceased almost entirely. From August until November mild weather predominated, and the spring, though rather belated, was an excellent one, especially in the South Island. There was abundance of pasture, and the flowering of trees and plants was unusually prolific. December was cold, wet, and windy.

The year was a very wet one. This was particularly the case from Hawke's Bay to East Cape, along the Auckland Coast from the Bay of Islands to the Bay of Plenty, and in northern Westland and south-west Nelson. The only considerable areas with less than average were in southern Westland and Southland. A protracted period of dry weather had set in over Southland in 1937, and it was not until October, 1938, that it was definitely ended.

The warmth and humidity of the first part of the year was responsible for a rank growth of pasture. With these conditions was associated the serious outbreak of facial eczema which occurred in the autumn. The milk-yield was well maintained until the incursion of the facial-eczema epidemic, when there was a sharp fall. In the spring there was a recovery. Lambs seldom fattened well. The percentage of lambs was much below that of the preceding two years. There have been no very serious losses of stock in recent winters through excessive snowfalls or combined cold and wet weather.

The wheat crop of the 1937-38 season gave a moderate yield, and that of the following season was doing fairly well at the end of the year. Owing to the wet weather, however, a smaller area had been sown. The 1938 apple crop was a very good one, but stone-fruit suffered from the effects of the damp weather. Most other small crops did well, though some trouble was experienced from fungous diseases, especially with potatoes and tomatoes.

The year was remarkable for the frequency of floods in the Auckland and especially the Hawke's Bay provincial districts. In the latter they were very severe and the damage was of disastrous proportions.

SUMMARY OF METEOROLOGICAL OBSERVATIONS FOR 1938.

(The observations were taken at 9 hrs., N.Z. standard time.)

Station.Temperatures in Shade.Hours of Bright Sunshine.Rainfall.
Mean Daily Maximum.Mean Daily Minimum.Approx. Mean Temperature.Extremes for 1938.Absolute Maximum.Absolute Minimum.Total Fall.Number of Wet Days.
Maximum and Month.Minimum and Month.
 ° F.° F.° F.° F.° F.° F.° F...Inches...
Te Paki, Te Hapua67.653.260.480.0 Feb.27.0 July....2,140.656.98173
Waipoua State Forest67.250.258.786.0 Jan.30.0 July Aug.....1,945.958.31182
Riverhead66.348.057.184.5 Jan.24.0 July......71.24196
Auckland66.855.461.184.2 Jan.37.0 July86.533.22,276.463.56177
Waihi65.749.657.785.0 Jan.26.0 June July89.021.01,807.1118.24195
Te Aroha68.751.159.990.0 Jan.28.8 July95.021.0..87.39168
Tauranga67.150.358.784.2 Feb.32.0 June July87.022.52,229.671.20156
Hamilton East66.947.857.489.6 Feb.24.6 Aug.94.422.02,091.550.25165
Rotoehu Plantation66.847.357.087.5 Jan.21.3 July......80.61149
Rotorua67.848.358.089.8 Jan.25.5 July98.021.01,986.475.03162
Whakarewarewa66.146.856.487.8 Jan.23.8 July91.022.0..74.91155
Gisborne67.750.058.991.3 Jan.31.5 July....2,154.856.35149
Onepoto, Lake Waikaremoana59.147.153.188.0 Feb.31.5 July......105.48192
New Plymouth65.151.058.183.2 April32.6 Aug.89.027.02,045.576.86185
Chateau Tongariro54.439.647.078.8 Jan.10.1 July......92.91180
Karioi60.041.550.784.3 Jan.18.0 July84.311.5..57.98184
Napier66.151.158.688.5 Feb.29.7 July94.027.52,211.450.52139
Hastings68.647.958.292.0 Jan.25.0 July92.420.0..59.59139
Taihape59.945.652.883.9 Jan.27.1 July87.820.4..43.23173
Wanganui65.050.857.988.0 April29.8 Aug.....2,126.340.88168
Tangimoana64.949.657.288.0 April30.5 June88.020.5..39.55170
Palmerston North65.849.457.691.0 Jan.25.0 July91.023.0..40.69164
Massey College, Palmerston North64.149.857.086.0 Jan.28.0 July87.021.21,701.441.13176
Pahiatua63.347.855.691.0 Jan.23.6 July91.021.0..55.72189
Kapiti Island62.652.557.580.0 Mar.37.0 July Aug.......49.04160
Masterton65.945.655.894.5 Jan.24.4 July95.420.02,094.246.19186
Wellington61.349.855.581.1 April33.2 Aug.88.028.61,963.858.20171
Nelson64.548.156.381.1 Feb.27.7 Aug.92.025.02,344.449.08132
Appleby, Nelson64.547.756.182.9 April27.7 Aug.84.823.0..46.23128
Blenheim66.146.056.092.2 Jan.23.2 July93.523.22,241.226.62130
Golden Downs62.341.451.986.8 Jan.17.6 Aug.85.517.2..60.16129
Waihopai64.143.553.892.9 Jan.23.4 July92.923.0..39.22141
Westport61.350.255.882.7 April33.5 Aug.....1,919.198.24193
Hanmer Springs62.040.151.192.6 Jan.9.9 Aug.97.08.21,757.752.25165
Hokitika61.746.954.380.5 Feb.25.5 Aug.84.525.51,815.2128.69196
Balmoral Plantation62.742.052.393.2 Jan.17.0 June July Aug.93.212.0..33.71131
Lake Coleridge61.841.951.988.1 Jan.17.3 July93.012.0..42.54145
Christchurch60.845.553.187.9 Feb.25.3 July95.721.31,875.833.49143
Wigram Aerodrome61.544.453.089.5 Feb.23.7 July......31.20140
Rudstone, Methven59.844.051.985.0 Jan.21.0 July89.021.02,008.655.34161
Lincoln62.244.653.490.3 Feb.24.0 July100.220.21,938.035.29140
Onawe, Duvauchelle Bay62.448.055.290.5 Feb.30.1 July......45.05144
Ashburton61.143.152.188.0 Feb.17.8 July94.017.8..45.15144
Jackson's Bay60.348.154.277.9 Feb.31.9 Aug.......175.36205
Lake Tekapo57.337.947.686.5 Jan.7.2 Aug.90.04.02,240.830.6196
Fairlie60.738.849.689.0 Jan.2.0 July93.02.01,838.239.55125
Timaru61.344.552.984.8 Feb.20.4 July99.020.41,814.040.10130
Waimate61.244.452.885.7 Feb.24.0 July94.022.51,630.141.50143
Queenstown60.542.051.289.2 Jan.20.0 July90.220.02,109.029.32133
Ophir61.039.450.290.8 Jan.7.0 July94.01.0..17.6483
Waipiata60.439.650.088.6 Feb.13.4 July96.05.62,162.320.74121
Alexandra62.241.852.090.2 Jan.17.0 July91.512.22,343.215.31108
Manorburn Dam55.135.645.382.2 Feb.5.5 July93.00.5..19.28118
Dunedin60.345.252.884.0 Jan. Feb.27.9 July94.023.01,869.439.62179
Invercargill59.843.051.486.0 Feb.24.0 July90.019.01,738.043.58205

For 1938 the mean pressure, at 09.00 hours New Zealand standard time, in inches reduced to sea-level and standard gravity, was: Auckland, 30.014; Rotorua, 30.037; Wellington, 29.985; Nelson, 29.986; Hokitika, 29.978; Christchurch, 29.950; Dunedin, 29.930.

THE PLANTS OF NEW ZEALAND.

The following article on the New Zealand flora is by Dr. W. R. B. Oliver, D.Sc., F.R.S.N.Z., Director of the Dominion Museum:—

Though the unique features of the flora of New Zealand are frequently emphasized, it should not be thought that there are not other floras which might be described as having equally peculiar characteristics. Taking the plants of the whole world differentiation has proceeded in all areas so that each is unique in some respects, and as a general rule the quality of uniqueness is most impressed in those areas which for a long time have been isolated, thus giving evolution the opportunity to proceed unhampered by intercrossing with adjacent floras. The peculiar features of a flora are consequently an expression of its past history; and so those regions, such as South Africa, Western Australia, South America, and New Zealand, which, for considerable periods in their history, have been cut off from the remainder of the world, developed floras with many characteristics of surpassing interest. New Zealand is far distant from any continental mass and has maintained such a relation for a long period, probably throughout the whole of the Tertiary Era. Briefly, the peculiar features of the plants of New Zealand are a high degree of endemism; great development of certain genera such as the koromikos (Hebe), karamus (Coprosma), wild spaniards (Aciphylla), daisy trees (Olearia), mountain daisies (Celmisia), and native brooms (Carmichaelia); the absence or poor development of many of the largest genera of plants, such as Astragalus, Acacia, Eucalyptus, Euphorbia, Mesembryanthemum, Selaginella, although some are highly developed in Australia; the presence of an element, known as Antarctic, containing species related to those in South America and the islands of the Southern Ocean; certain peculiar life-forms, such as the dense cushion plants, known as vegetable sheep; and the high proportion of species with persistent juvenile stages considerably different from the adult forms.

In the following account a select number of species are mentioned for their interest in one way or another. Among the many important discoveries of the late Dr. L. Cockayne, however, was the fact that many of the individual plants in the vegetation are in reality hybrids between the ordinary “species” of the taxonomist. The prevalence of hybrids is, in fact, much more general than is apparent to the untrained eye. In a published list, Cockayne and H. H. Allan record nearly five hundred native hybrids. Some, such as the crosses among the beeches (Nothofagus) and tutus (Coriaria), take, in places, a prominent part in the vegetative covering.

Taking the vascular plants—that is, flowering-plants, conifers, ferns, and lycopods — as a whole, by far the larger portion show affinities directly or indirectly with the plants of the Malayan region. Coming under this head are most of the conifers, especially the kauri (Agathis) and the two principal genera of podocarps (Dacrydium, Podocarpus), and practically all the endemic genera for which the flora is so justly famed. It is necessary to mention only such important examples as Carmichaelia, Anisotome, Aciphylla, Haastia, Raoulia, Stilbocarpa, Entelea, and Myosotidium. The presence of this element is justification for stating that the basis of the New Zealand flora is Malayan, and that it came to the country by way of an ancient land connection. Supporting evidence of such a land bridge is found in the presence in New Zealand of some flightless species of birds and the tuatara lizard; also, in former times, of the large wingless moas.

Another important element in the New Zealand flora may be described as Australian, as it includes species either identical with, or related to, those found in Australia or Tasmania. Some belong to endemic genera, some are odd species belonging to large and characteristic Australian genera such as Phebalium, Persoonia, Myoporum, and Epacris; and there are over 250 species common to both sides of the Tasman Sea. About a fourth of these are widely distributed in many other parts of the world. Some of the Australian species may have come to New Zealand with the Malayan element; others may have been accidentally carried by ocean currents, wind, or birds.

Of exceptional interest is the element in the New Zealand flora known as Antarctic, because of its remarkable distribution and the fact that it has given rise to much controversy among biologists. Taking any of the southern continental lands, we find a considerable number of species related to those in the other cold temperate regions. Thus, in the New Zealand region there are about 70 species of vascular plants whose relations are with those in South America and the islands of the Southern Ocean. The most conspicuous of the Antarctic plants in New Zealand are the beeches (Nothofagus), fuchsias, broadleafs (Griselinia), wild Irishman (Discaria), pukatea (Laurelia), and ourisias. Some botanists explain the presence of the Antarctic element in New Zealand by an ancient southern land connection; others think that equally ancient dispersal from the north and accidental dispersal overseas are sufficient to account for them. All of these methods may have played their part.

The internal distribution of the plants of New Zealand deserves brief notice. Some species occupy quite limited areas even on the mainland. Examples are Cassinia amoena in the North Cape Peninsula, Pittosporum Dallii near Boulder Lake, Hebe obtusata north of Manukau Harbour, Coprosma obconica in the Wairoa Gorge, and several species in the mountains of the South Island. More often, species of limited distribution are confined to islands; in fact, most of the islands at some distance from the coast have one or more species peculiar to them. Conspicuous examples are Homolanthus polyandrus in the Kermadec Islands. Davallia Tasmani at the Three Kings, Xeronema Callistemon on the Poor Knights Islands and Hen Island, Myosotidium hortensia in the Chatham Islands, and species of Plcurophyllum and Stilbocarpa in the Subantarctic Islands.

Perhaps of more importance than these cases of isolated distribution is the circumstance that on the main islands considerable numbers of species have their southern or northern limits at about the same latitude. Two critical boundaries in this connection are 38° S. lat. in the North Island, and 42° S. lat. in the South Island. On this basis New Zealand may be divided into three botanical districts; and if other evidence be taken into account a number of provinces may be defined. The northern botanical province, which extends from the Three Kings Islands to 38° S. lat., is especially well-marked, having nearly 100 species which are confined to it or extend but a short distance beyond its southern border. Of especial interest are the kauri (Agathis australis), taraire (Beilschmiedia taraire), makamaka (Ackama rosaefolia), mangrove (Avicennia officinalis), pohutukawa (Metrosideros excelsa), and mairehau (Phebalium nudum).

A brief review may now be made of the principal groups of plants found in New Zealand. The vascular plants, which comprise ferns, lycopods, and their allies, conifers, and flowering-plants, almost entirely form the land vegetation of physiognomic importance. It is these which clothe the ground and are thus of so much importance to the beauty of the landscape. Lichens are dominant in certain rocky situations, especially near the coast, and these plants, together with mosses and liverworts, are conspicuous members of the interior of scrub and forest in humid climates. Algae take undisputed possession of rocky coasts below tide marks, but on muddy bottoms a flowering-plant, the sea wrack (Zostera), covers wide areas in sheltered situations.

Beginning with the flowering-plants, of which there are over 1,600 species, we find that the daisy family, Compositae, generally placed in the highest position in the flora, contains about 260 species. This is a world-wide family of over 13,000 species. The New Zealand species show some peculiar features and include some exceedingly interesting kinds. The leathery-leaved Pachystegia insignis, the purple-flowered species of Pleurophyllum, and the edelweiss-like Leucogenes, form a remarkable series. Raoulia and Haastia include the wonderful cushion-like species known as vegetable sheep, characteristic of the drier mountains of the South Island. Smaller species of similar growth extend as far north as the Tararuas, and as far south as Stewart Island. The mountain daisies, Celmisia, run into over 60 species; and there are over 40 species of daisy-trees, Olearia. Notable members of this genus are the holly-leaved daisy-tree (O. ilicifolia) and the tete-a-weka (O. angustifolia). Senecio includes about 35 species belonging to New Zealand, several being trees of considerable height. The puheretaiko or mutton-bird shrub (S. rotundifolius) forms a coastal scrub in Stewart Island and the fiord district.

The Australian family, Stylidiaceae, includes only a few New Zealand species, but among them are the bog cushion plants Donatia and Phyllachne.

The blue-bell family, Campanulaceae, which comprises about 1,000 species found in all parts of the world, is represented in New Zealand by 17 species, one of which (Wahlenbergia cartilaginea) is a fleshy plant characteristic of mountain shingle slips, and another (W. Matthewsii) has rather large pale lilac flowers.

The madder family, Rubiaceae, of over 5,000 species, mainly tropical and subtropical, includes the genus Coprosma, of about 90 species, of which 40 are found in New Zealand. The species of this genus range from forest trees of moderate height to creeping shrubs, and have inconspicuous flowers but bright berries of different colours. The best-known species are the taupata (C. repens), a coastal plant much used for hedges; the karamu (C. robusta); and the kanono (C. australis).

A characteristic Australian family is Myoporaceae, with one representative only in New Zealand, the well-known coastal tree, ngaio (Myoporum laetum).

The speedwell family, Scrophulariaceae, comprises over 2,600 species, mainly found in temperate climates. In New Zealand it has developed chiefly in the four genera: Hebe, 66 species; Veronica, 13 species; Ourisia, 10 species; and Euphrasia, 13 species. The Hebes or koromikos are shrubs with handsome racemes of pale-lilac to white flowers and are conspicuous in all the natural scrubs of the Dominion, but are especially in evidence in mountainous localities. The willow-leaved koromiko (H. salicifolia), in one or other of its forms, is found throughout New Zealand in lowland forests and scrub. Several species of Hebe, known as whip-cord koromikos, are remarkable for the fact that the leaves are reduced and scale-like, resembling those of the cypress. The large flowering-heads of Ourisia are conspicuous objects in the mountains.

The mangrove (Avicennia officinalis) is found in tidal estuaries throughout the eastern hemisphere. In New Zealand it occurs from the North Cape to Kawhia and Opotiki. Another member of this family, Verbenaceae, is the puriri (Vitex lucens), a handsome tree with extremely hard wood.

The borage family, Boraginaceae, of 1,600 mostly north temperate species, is represented in New Zealand by 31 species of forget-me-not (Myosotis), and by Myosotidium hortensia. This last species is confined to the Chatham Islands, and is remarkable for the large reniform leaves, sometimes a foot across, and the large heads of blue flowers.

There are 24 species of gentians, family Gentianaceae, in New Zealand. They are mainly mountain plants, and many have showy flowers, mostly white with radiating purple veins. Elsewhere the genus, which comprises some 350 species, is mainly north temperate, but extends all along the Andes.

The four species of olive, family Oleaceae, found in New Zealand, include the black maire, Olea Cunninghamii, and the white maire, O. lanceolata, notable for their hard timber.

The heath family, Ericaceae, widely spread in temperate regions, is poorly represented in Australia and New Zealand. Gaultheria, with 100 species in America, has but 8 in New Zealand. Instead of Ericaceae, however, there is present in Australia and New Zealand, and almost confined thereto, an allied family, Epacridaceae, containing some 300 species. The most conspicuous members in New Zealand are the various kinds of grass trees, Dracophyllum, of which there are over 30 species. Some are trees, but mostly they are shrubs and take a prominent part in subalpine scrubs. The leaves are grass-like and the flowers are borne in racemes or panicles. Two of the largest members are the neinei (D. latifolium) of the North Island, and D. Traversii of the South Island.

The cornel family, Cornaceae, contains two species of the genus Griselinia, otherwise Chilean. They have large, shining, dark-green leaves, and one, the broadleaf (G. littoralis), produces a durable timber.

The world-wide carrot family, Umbelliferae, is represented in New Zealand by over 80 species, but over half of them belong to the genera Aciphylla and Anisotome. The species of Aciphylla have branched, sword-like leaves arising at ground-level as a dense tuft. Some are 2 ft. in length, and, being rigid, are formidable objects to man or beast. From the centre rises an equally armoured spike of small flowers. Anisotome includes unarmed herbs, more or less aromatic, with compound leaves and conspicuous compound umbels. With the exception of a few species in Australia, Aciphylla and Anisotome are confined to New Zealand.

The ivy family, Araliaceae, mainly tropical in distribution, is represented in New Zealand by 25 species, all but three being trees. The three herbs belong to the remarkable genus Stilbocarpa, and have leaves 1½ ft. in diameter. The trees include the large-leaved puka, Meryta Sinclairii, of tropical affinities. Those belonging to the genus Pseudopanax, some of which are known as lance-woods, pass through juvenile forms with straight, unbranched stems bearing narrow and deflexed, toothed leaves up to 3 ft. in length.

The evening primrose family, Onagraceae, found in many temperate climates, is represented in New Zealand by about 40 species of willow-herbs and three species of Fuchsia. The latter is an American genus of over 60 species, and by what method the New Zealand forms reached New Zealand is a question of great interest to biologists. The common New Zealand kotukutuku, Fuchsia excorticata, is a tree, usually deciduous, with papery bark.

The myrtle family, Myrtaceae, is widespread, but most abundant in South America and Australia. In New Zealand there are 17 species of shrubs and trees belonging to this family. The most common are the manuka, Leptospermum scoparium, and the kanuka, L. ericoides. One or both of these cover extensive areas in situations ranging from swamps to sand-dunes. They form dense thickets and, in some places, forest. The various species of rata (Metrosideros) produce an abundance of brush-like red or white flowers. Most conspicuous along the shores of the northern portion of the Dominion is the pohutukawa, M. excelsa, which, in midsummer, is covered with crimson flowers. Equally conspicuous are the northern and southern ratas, M. robusta and M. umbellata, lofty forest trees producing durable timber. The northern rata begins life as a seedling high up on another tree, such as a rimu, and, reaching the ground with its roots, clasps the stem of its host, finally killing and replacing it. Some of the species of Melrosideros are climbers. Their woody, cable-like stems, sometimes 6 in. in diameter, enable the foliage to expand among the tops of the tallest trees.

The mallow family, Malvaceae, of tropical and subtropical distribution, includes a few trees inhabiting New Zealand. They are known as lace-barks and ribbon-woods on account of the lattice-like strands of the bast. The Maori used this bark for textile work. The species of Hoheria or lace-barks bear, in late summer, a profusion of white flowers. One species is deciduous.

The small tropical family Elaeocarpaceae contains two species of Elaeocarpus, a large Malayan genus, one of them being the hinau, which bears large clusters of pendant flowers. The makomako, Aristotelia serrata, is a common tree which springs up in abundance in forest clearings.

The karaka, Corynocarpus laevigata, is a handsome tree with shining dark-green foliage and large orange drupes. The kernel contains a virulent poison, but the flesh is edible. The Maori treated the kernel so as to render it innocuous. The family, Corynocarpaceae, contains one genus of three species, two of which are natives of New Caledonia.

The small tropical family, Coriariaceae, is represented in New Zealand by about five species of Coriaria, one of which is the well-known tutu, C. arborea, the leaves of which are poisonous to stock. The tutu appears abundantly in clearings and on bracken-covered hills.

Although the family Meliaceae contains 600 species, mainly tropical, only one, the kohekohe, Dysoxylon spectabile, is found in New Zealand. The flowers are borne during mid-winter on the trunks and branches. The timber is easily worked, and on account of its brown colour is responsible for the name “New Zealand cedar” being given to this species.

The bean family, Leguminosae, one of the largest in the world, contains a number of New Zealand species, but, as in the carrot family, most of them belong to genera highly peculiar to the Dominion. There are over 20 species of Carmichaelia and a few of some related genera, all of broom-like habit—that is, having leafless twigs and paniculate flowers. Some of the species bear large clusters of blooms of great beauty. Notable members of this family are the three species of kowhai, Edwardsia. The genus is tropical and subtropical; but the New Zealand species have South American affinities. All the species have showy yellow flowers much sought after by honey-sucking birds, and the common kowhai, E. microphylla, produces a durable timber known to saw-millers as New Zealand lignum vitae.

The rose family, Rosaceae, is in New Zealand chiefly noted for its species of Acaena, of infamous reputation. The plant flourishes in pastures, and its burrs collect in great clots on the wool of sheep, causing much loss to sheep-farmers.

The subtropical family, Cunoniaceae, is represented in New Zealand by three species of trees. One, the kamahi, Weinmannia racemosa, is excessively abundant in forests south of the Waikato district, and its ally, the tawhero, W. sylvicola, replaces it in the north.

Pittosporaceae is a family of trees and shrubs which, with the exception of Pittosporum, is confined to Australia. This genus is well represented in New Zealand, where it includes 23 species. Some, such as the kohuhu, P. tenuifolium, and karo, P. crassifolium, are extensively used as hedge plants. A remarkable and beautiful species is P. Datlii. It is distinguished by its serrated leaves and large white flowers.

The large family of saxifrages, Saxifragaceae, with numerous herbaceous genera in northern temperate regions, is represented in New Zealand by three genera only, each containing one or two species of trees. Carpodetus, the putaputaweta, is the most common. In early summer the trees are covered with large clusters of small white flowers.

The cress family, Cruciferae, is of world-wide distribution and of numerous species. It is, however, little in evidence in New Zealand but contains the peculiar genera of mountain plants, Pachycladon and Notothlaspi. A species of Lepidium, now almost eaten out by stock, was formerly abundant along the seashore, and was used as a vegetable by the crews of Captain Cook's ships.

Another world-wide family of plants, that of the buttercups, Ranunculaceae, contains in New Zealand 9 species of Clematis, over 40 of Ranunculus, and a few others. The species of Ranunculus are especially characteristic of the subalpine and alpine zones and contain some very peculiar forms. Some are found only on mountain screes and some reach almost the upper limit of vegetation. The mountain buttercup, R. Lyallii, possesses large circular, peltate leaves, and the largest flowers of any species belonging to the genus. During the summer months the puawhananga (Clematis indivisa) displays masses of large white flowers over the surrounding foliage.

A tropical family of root parasites, Balanophoraceae, has in New Zealand a single member, the pua-reinga (Dactylanthus Taylori). The host tree responds by forming rosettes with radiating flutings and considerably wider than the diameter of the roots themselves.

Of woody parasites, New Zealand possesses 11 members of the mistletoe family, Loranthaceae. Members of the genus Elytranthe are conspicuous objects among the tops of beech-trees on account of their clusters of scarlet or yellow flowers.

The large Australian and South African family of proteas, Proteaceae, is represented in New Zealand by only 2 members. One is the toru (Persoonia toru), a small tree belonging to an Australian genus of 60 species, and the other is the rewarewa (Knightia excelsa), a lofty tree with relatives in New Caledonia. The wood of the rewarewa is beautifully variegated and is much used for inlaying and cabinet work.

The mulberry family, Moraceae, widely represented in the tropics, extends to New Zealand only in three species of Paratrophis. Most common is the turepo or milk-tree, P. microphylla, and all exude a white latex when bruised.

The beech family, Fagaceae, which is best represented in the northern temperate zone, has in New Zealand 5 species of small-leaved beeches, referred to the genus Nothofagus, a very close ally of the northern Fagus. The other members of Nothofagus are found in Australia, Tasmania, and temperate South America. The New Zealand beeches are the dominant members of large areas of upland forest in the main islands. They provide a considerable proportion of the timber milled in the Dominion. The species are the red beech (N. fusca), silver beech (N. Menziesii), black beech (N. Solandri), mountain beech (N. cliffortioides), and hard beech (N. truncata).

Of monocotyledonous plants the orchids, family Orchidaceae, are among the most specialized, and may be mentioned first. New Zealand is relatively poor in species, there being only 66 known kinds, whereas the world total is about 8,000. Most of the New Zealand forms are ground species, some inconspicuous. The large epiphytic genera Dendrobium and Bulbophyllum are represented by 1 and 2 species respectively, and there are 3 species of the Polynesian Earina and 1 of the Australian Sarcochilus. All New Zealand epiphytes occasionally grow on rocks or even on the ground.

The world-wide lily family, Liliaceae, extends to New Zealand in a comparatively small number of genera, but, like other cosmopolitan families, some of these are noteworthy. Phormium contains the celebrated New Zealand flax, P. tenax, and another smaller species, P. Colensoi. The larger species is found in swamps and wet places. It is a noble plant with sword-like leaves from 6 ft. to 10 ft. long, overtopped by the erect flower-heads. It is now extensively cultivated for its fibre. Xeronema Callistemon, with red, brush-like flowers and iris-like leaves, is confined to islands off the coast of the North Auckland Peninsula. Its only relative is found in New Caledonia. Conspicuous in swamps, scrub, and low forest are the species of Cordyline, palm-like plants bearing clusters of small white flowers. The most plentiful is the ti-rahau or cabbage-tree, C. australis; but the most remarkable, on account of its wide, elastic leaves, is the toii, C. indivisa, found on the forest border or in the more open parts of cool forests. Perched in great clusters on tall forest trees are various species of Astelia and Collospermum, in habit like large tussock grasses.

Palms constitute an immense family, Palmaceae, of over 1,100 species, and are essentially tropical or subtropical. Only 2 species are found in New Zealand, one, the nikau (Rhopalostylis sapida), extending as far south as Banks Peninsula and Hokitika and the other (R. Cheesemanii) confined to the Kermadec Islands.

The grasses, family Gramineae, of which there are over 120 species in New Zealand, include the large pampas-like toetoe, Arundo conspicua. As its specific name implies, it is a conspicuous species. It is especially abundant in swamps and in coastal localities. Other notable grasses are the various species of Danthonia which, over wide areas in the mountains, form the dominating feature—namely, large tussocks of narrow waving leaves. The smaller species of Danthonia, notably D. pilosa and D. semiannularis, are important pasture grasses. Many of the New Zealand grasses are also found in Australia, and among them the spinifex, S. hirsutus, abundant as a sand-binding species along the outer dunes.

Many of the sedges, family Cyperaceae, of which there are over 120 species in New Zealand, form large tussocks with tall brown panicles. Unlike the grasses, they are conspicuous in scrubs and forests. Chief among these are the various species of Gahnia. A beautiful species, Cladium Sinclairii, has flat, shining leaves and adds much to the beauty of wet cliffs. The genus Uncinia, with 14 species in New Zealand, must be mentioned on account of the fact that it is found in south temperate regions and islands generally, and because the fruit is furnished with peculiar hooks enabling it to become entangled in the hair or wool of animals. There are 55 species of the genus Cerex in New Zealand, some, such as C. ternaria, forming dense thickets in swamps.

The class of cone-bearing trees, or gymnosperms, is represented in New Zealand by two families, one, Araucariaceae, containing two genera of truly cone-bearing trees, Agathis and Libocedrus, and the other, Podocarpaceae, containing 17 species with nutlike fruits surrounded more or less by the fleshy scales.

The kauri (Agathis australis) for more than a century has been world-famed for its timber. A straight bole, up to 80 ft. or more in height, carries an immense rounded head of dark-green, shining leaves. The kauri is found only in the northern part of the North Island, and only a few areas of considerable extent now exist. The timber is still an important product. The resin, which is obtained from the living tree and also dug from the ground where kauri forests formerly existed, is of value in making varnishes and for other purposes. In former times the value of the resin exported was greater than that of the timber.

Libocedrus contains two cypress-like trees with brown bark which falls in long, thin strips. One species, the kawaka (L. plumosa), is more northern in distribution than the other, the pahautea (L. Bidwillii).

Of the podocarps, the three New Zealand genera extend to Malaya and other regions. They include the rimu (Dacrydium cupressinum), which is cut for timber more than is any other species of tree in New Zealand; the totara (Podocarpus totara), a handsome tree with pungent leaves and producing a useful timber, the favourite of the Maoris for canoes and house carvings; the matai (P. spicatus), the miro (P. ferrugineus), and the kahikatea (P. dacrydioides), all producing valuable timber; the tanekaha (Phyllocladus trichomanoides), a tall tree with leaf-like branches, the true leaves being fully developed only in the seedlings; and the silver pine (D. Colensoi), and yellow pine (D. intermedium), of bog-forests.

Ferns are the glory of the New Zealand forests. They are, of course, most in evidence in damp forests. Here the undergrowth in places may consist mostly of ferns. In addition, they may clothe most of the tree trunks and branches, and, as tree-ferns, take a part in the upper canopy of foliage. There are 145 species, distributed over 12 families, found in New Zealand.

The filmy ferns, family Hymenophyllaceae, are included in the genera Hymenophyllum, Trichomanes, and Cardiomanes. In moist forests a dozen or more species often may be obtained in a single locality. Their delicate leaves cover ground, logs, and trunks alike. They vary from the broad-leaved H. dilatatum, which may reach a height of 2 ft., to the minute H. minimum, less than 1 in. tall. One species, the kidney fern, Cardiomanes reniforme, has undivided, reniform leaves fringed with the sporeproducing organs.

A single species, Loxsoma Cunninghamii, with the leaves whitish below, represents the family Loxsomaceae in New Zealand, where it is confined to the Auckland Province. The only other members of the family are found in tropical America.

The family Dicksoniaceae has three representatives in New Zealand, all belonging to the genus Dicksonia. All are tree-ferns, but in one species, D. lanata, the trunk usually lies along the ground. The wheki, D. squarrosa, is perhaps the most common tree-fern in New Zealand.

Another family of tree-ferns is Cyatheaceae. It includes the tall and stately black tree-fern or mamaku (Cyathea medullaris), and the smaller silver tree-fern or ponga (C. dealbata). In one species, Alsophila Colensoi, the trunk almost always is prostrate.

Most ferns belong to the family Polypodiaceae, which is represented in New Zealand by about 90 species. All the ordinary ferns, including the bracken, Pteridium esculentum, belong to this family. The most prevalent genera are Polystichum, Dryopteris, Asplenium, Blechnum, Hypolepis, Adiantum, Pteris, and Polypodium, all widely distributed. Only one genus of Polypodiacaea, Leptolepia, is confined to New Zealand.

The king fern, Todea barbara, and two species of Leptopteris, with finely-divided filmy leaves, and hence called crape ferns, represent the family Osmundaceae in New Zealand. The horse-shoe ferns, family Marattiaceae, have a single representative, the para (Marattia fraxinea), in the North Island.

The lycopods, family Lycopodiaceae, include the New Zealand and Australian genus Phylloglossum containing only a single species, P. Drummondii, and twelve species of Lycopodium. A related family, Psilotaceae, contains the two species Tmesipter is tannensis and Psilotum triquetrum.

In a country with a greatly diversified land surface and considerable range in climatic conditions, one may expect a great variety in the nature of the plant covering. Such actually is the case in New Zealand, where the plant formations range from warm, temperate rain forest to alpine rock associations at the limit of plant growth.

When organized European settlement first began in New Zealand, about 1840, it has been estimated that 60 per cent. of the land surface was under forest. The forest has now been reduced to under 20 per cent., mainly by the clearing of kauri, podocarp, and broad-leaved lowland forests. The mountainous regions, where there is a preponderance of beech forests, naturally have suffered the least.

In a broad sense the forest may be divided into three main types: (1) Coniferous forests; (2) broad-leaved forests; (3) beech forests.

The coniferous forests fall into two groups—kauri and podocarp. Kauri forests are confined to the northern portion of the North Island. The occurrence of kauri resin in the ground in places now occupied by swamp or scrub indicates that in pre-European times this formation covered an area considerably greater than it does at the present day. Kauri forest occurs in patches, some of considerable size, among the broad-leaved forests, mainly taraire. The kauri is dominant and determines the physiognomy of the formation. Its immense heads of foliage in clumps and its greater height make the stands of kauri easily recognizable from a distance. The large trees associated with the kauri include the taraire, tawa, tawhero, northern rata, rimu, totara, hinau, and others. Underneath are tree-ferns, nikau palms, and various small trees, including the mairehau, neinei, kanono, and Alseuosmia macrophylla, while the large tussock sedge, Gahnia xanthocarpa, and especially the liliaceous tussock, Astelia trinervia, are conspicuous plants in the undergrowth.

Of the podocarp forests, that in which rimu is dominant or extremely common is the most frequent. A considerable mixture of trees, including other podocarps, such as matai and miro, and many kinds of broad-leaved trees, make up the main tier of the forest. Small trees, often with large leaves laxly disposed, form a second tier, while ferns often dominate the undergrowth. The totara, sometimes occurring as immense trees, dominates smaller areas than does the rimu, and prefers drier soil. At higher levels its smooth-barked ally, Podocarpus Hallii, replaces it. On wet ground, often growing in water, the principal podocarp is the kahikatea. Its straight mast-like trunks impress the visitor to-day as they did when viewed by Captain Cook and his botanists in 1769. In boggy places other podocarps, such as the silver pine or the yellow pine, may be dominant.

Broad-leaved forest covers wide areas in the North Island. In the north the taraire is the dominant tree. Elsewhere its congener, the tawa, takes the principal place. These forests in their interior are much like the podocarp forests, the associated trees, shrubs, and ferns being mostly the same species. Taraire forest interdigitates with kauri forest and the associated species are identical. Tawa forests south of 38° S. lat. lack many species which do not extend farther south than the taraire forest region. Other widely-distributed types of broad-leaved forests are those in which the kamahi and the southern rata are the principal trees. Southern rata forest is essentially a South Island community, and generally contains a considerable proportion of kamahi. In damp situations, as in deep gullies, the pukatea is the principal tree; on drier hillsides the northern rata is sometimes most in evidence. Its habit of strangling its host has the effect of its gradually replacing rimu forest.

The beech forests are characterized by the dominance of one or more species of Nothofagus. They are poorer in species than the coniferous or broad-leaved forests, while ferns and epiphytes are not such conspicuous features. They occur over wide areas of mountainous country in both the main islands, though curiously enough are absent from Mount Egmont, and from Westland between the Taramakau and Paringa Rivers. The mountain beech forms a rather dry type of forest, which occurs on both the wet but cold mountains and on the drier foothills, especially those east of the Southern Alps. The silver beech forms a distinctly moist forest, and mixes freely with podocarps, other species of beech, and broad-leaved trees. In appearance and in variety of associated species silver beech forest much resembles podocarp forest. The red beech, black beech, and hard beech occur mixed or individually dominating in extensive areas in both islands.

Taking the meaning of scrub in the ordinary sense—namely, a closed formation of shrubs—there are in New Zealand several kinds differing in both floristic and ecological composition. The most widely distributed of the scrubs is that in which manuka or kanuka is dominant, and, in places, almost the only shrub present. It occurs in swamps, bogs, poor pumice and clay lands; also on good fertile soil. Its ubiquity is due to the readiness of these two species quickly to take possession of unoccupied land, and its presence in the better-class soils is without doubt due to the fact that these areas were formerly occupied by forest which has disappeared before Maori or European. Given time, forest will again supersede the manuka or kanuka scrub. Sometimes species of Dracophyllum—for instance, D. subulatum on the Rangitaiki plains—are dominant in a scrub much resembling dwarf manuka scrub.

Coastal scrubs are best developed on islands, where some characteristic species form almost pure associations. Such are the pohutukawa and taupata in the north, the puheretaiko and tete-a-weka in the south, and Olearia Lyallii in the Southern Islands.

Above the forest-line on all the higher mountains a belt of scrub is found between forest and tussock. It is usually dense to the point of being impenetrable. The dominant species varies with exposure and district, but usually one or more of the following are conspicuous: Olearia Colensoi, Senecio elaeagnifolius, various species of Coprosma, Dracophyllum, and Hebe, Phyllocladus alpinus, Cassinia Vauvilliersii, Aristotelia fruticosa, and Suttonia divaricata.

On the mountain-sides above the scrub and tussock only scattered plants, both shrubs and herbs, occur in sheltered places. Here and in other open places a highly peculiar type of shrub is found. It takes the form of a dense cushion, the outer surface of which is the truncated tips of abbreviated tightly-packed branches with their dense clothing of woolly, scale-like leaves. The large species, some of which are 3 ft. or 4 ft. in diameter, are known as “vegetable sheep” (Raoulia eximia, Haastia Sinclairii).

Leaving aside the various associations of plants in water, bogs, swamps, near fumaroles, on sand-dunes, shingly river-beds, and so on, this account may be closed by a reference to the tussock-grass lands of the Dominion. The area under tussock is now considerably larger than at the period of early European settlement, owing to the burning-off of scrub. Tussock occurs on all high mountains above the scrub-line, and also over vast areas east of the main divide in the South Island. Two main divisions may be recognized: one is dominated by Festuca Novae Zealandiae and Poa caespitosa, the other by the large tussocks of Danthonia Raoulii. With these are associated a few shrubs, various herbs, and here and there a fern. At the higher levels are grasslands composed of mat-forming species (Danthonia australis, Poa acicularifolia, Triodia exigua, and others) and various low-growing herbs.

Plants introduced to New Zealand during the period of European occupation now take such a prominent part in the plant covering that a few remarks must be made about them. About 600 species are sufficiently well established to be considered naturalized. They occur mostly in settled districts, but in clearings and along tracks far in the native forest a few exotic species are occasionally found. The introduced plants cannot establish themselves in unbroken forest, but, in the area under settlement, especially in the scrubs, grassland, and swamps, many have become permanent members of these formations, and, in places, certain exotic species such as gorse, broom, lupin, blackberry, and some others, dominate new communities.

For the guidance of those desiring further information on the flora and plant covering of New Zealand, the following works should be consulted: “Plants of New Zealand,” by R. M. Laing and E. W. Blackwell, ed. 3, 1927; “Manual of the New Zealand Flora,” by T. F. Cheeseman, ed. 2, 1925; “The Trees of New Zealand,” by L. Cockayne and E. Phillips-Turner, 1928; “The Forest Flora of New Zealand,” by T. Kirk, 1889; “New Zealand Trees and Shrubs and how to Identify Them,” by H. H. Allan, 1928; “New Zealand Ferns,” by H. B. Dobbie, ed. 3, 1931; “New Zealand Plants and their Story,” by L. Cockayne, ed. 3, 1927; “The Vegetation of New Zealand,” by L. Cockayne, ed. 2, 1928; “The Cultivation of New Zealand Plants,” by L. Cockayne, 1923; “The New Zealand Nature Book,” Vol. 2, by W. Martin, 1929; and numerous articles published in the Transactions of the New Zealand Institute and of the Royal Society of New Zealand.

THE FAUNA.

The following brief article on the fauna of New Zealand, originally prepared by Mr. James Drummond, F.L.S., F.Z.S., was revised by him in 1935:—

New Zealand's native fauna has attracted the attention of investigators in nearly all parts of the world. Its special interest lies in its manifold peculiarities, in the incongruous characters possessed by some of its members, and in the ancient types found in different classes.

Beginning with the mammalia, the Dominion is surprisingly inadequately represented. Its only land-mammals, except seals, are two bats. One of these, the long-tailed bat, belongs to a genus (Chalinolobus) which is found in the Australian and Ethiopian zoological regions, and to a species (morio) found in the south-east of Australia as well as in New Zealand; but the other, the short-tailed bat (Mystacops tuberculatus), belongs to a genus peculiar to this Dominion.

At one time it was believed that the Maori dog (Canis familiaris, variety maorium, the “kuri” of the Maoris) and the Maori rat (Mus exulans, the Maori “kiore”) were indigenous to New Zealand, but it is now generally believed that these two animals were introduced by the Maoris when they made their notable migrations from their legendary Hawaiki. The dog was highly prized as a domestic pet, and the rat as food. Both could easily be taken across the sea in the large canoes used in those days. The dog, without doubt, is extinct. It was small, with a pointed nose, pricked ears, and very small eyes. In colour it was white, black, brown, or parti-coloured, and it had long hair, short legs, a short bushy tail, and no loud bark, but only a whine. The Maoris lavished upon it an abundance of affection. When dead its flesh was used for food, its skin for clothing, and its hair for ornaments. Opinions differ in regard to the approximate date of its extinction, and investigations in this respect are made somewhat difficult by the fact that for some years “wild dogs,” as they were called—probably a cross between the Maori dog and dogs brought by Europeans—infested several districts in both the North Island and the South Island, and were confused with the Maori dog. It is probable that the pure Maori dog became extinct about 1885. The Maori rat, a forest-dweller, is not as plentiful as it was when Europeans first came to New Zealand, but it still lives in the forests.

The long-tailed species of bat was once fairly plentiful, especially in the forests, where it makes its home in hollow trees. Large numbers also at one time were found under old bridges across streams, notably at the River Avon, in Christchurch. It is not very rare now, and specimens sometimes are found in the forests and in caves. The short-tailed species probably is not extinct, but rare. Little is known of its habits.

The sea-lion, the sea-elephant, the sea-leopard, and the fur-seal are found on islands within the Dominion's boundaries. In the early days of colonization sealing was a great industry, and yielded large profits to some of the adventurous men who took part in it.

Amongst the sea-mammals whales are the most important. At one time extensive whaling was carried on in New Zealand waters, three hundred vessels, chiefly from America, sometimes visiting the country in one year. The industry began about 1795, reached the height of its prosperity between 1830 and 1840, and then began to dwindle. In recent years an effort was made to revive the industry, but results were not encouraging. The only station now in active commercial, operation is that at Tory Channel, Queen Charlotte Sound, where during the three months of winter, numbers of hump-back whales are taken. Southern right whales, the killing of which is now forbidden, were at one time occasionally taken both at Tory Channel and at Whangamumu, Bay of Islands.

By its strange behaviour a Risso's dolphin (Grampus griseus) became famous under the title of “Pelorus Jack.” It made a practice, for over twenty years, of following steamers in the vicinity of Pelorus Sound. So much interest was taken in this dolphin by the public, zoologists, and learned societies that it was protected by an Order in Council issued in 1904 under the Sea-fisheries Act. It was the only member of the genus Grampus recorded in New Zealand waters.

In contrast with the species of land-mammals, the members of the next class, Aves, were remarkably plentiful when settlement began. Bush and grass fires, rats, cats, stoats, and weasels, and the ruthless use of the gun reduced their numbers, but they still stand as probably the most interesting avifauna in the world. They include a comparatively large number of absolutely flightless birds. No living birds in New Zealand are wingless, but the kiwi (Apteryx), the weka (Gallirallus), the kakapo parrot (Strigops), and the takahe (Notornis Hochstetteri)* cannot use their wings for flight, while a duck belonging to the Auckland Islands (Nesonetta) is practically in the same plight. There are several species of birds whose wings are so weak that they can make only short flights.

Other notable birds are the kea (Nestor notabilis), which is accused of killing sheep on stations in the South Island; the tui (Prosthemadera Novae Zealandiae), which affords one of the most beautiful sights in the New Zealand forests, and charms visitors with its silvery notes; the huia (Heteralocha acutirostris), the only species known in which there is a wide divergence in the shape of the bills in the two sexes, the male's being short and straight, while the female's is curved, pliant,

* Better known as Notornis Mantelli.

and long; and the wry-billed plover (Anarhynchus frontalis), the only bird known to possess a bill turned to one side. Cormorants or shags (Phalacrocorax) and penguins (Impennes) are exceptionally well represented in the avifauna. New Zealand may be regarded as the headquarters of the penguins, as all the genera except one are found within the boundaries of this Dominion. The oldest fossil penguin known is from the Eocene and Oligocene rocks of New Zealand. New Zealand probably was the centre from which penguins were dispersed to other countries.

Several species of shore-birds make remarkable migrations to New Zealand from regions around the North Pole. They nest there, but spend the spring and summer in New Zealand, leaving the Dominion for their northern homes in the autumn. A few miss the general migration and stay in New Zealand all winter. They probably join the outward-bound flocks in the following autumn. The most famous of these migrants, the bar-tailed or Pacific godwit (Limosa lapponica) known in New Zealand by its Maori name kuaka, nests on the tundras of Eastern Siberia, and in Kamchatka and Western Alaska. The Hudsonian godwit (Limosa haemastica), the Pacific golden plover (Pluvialis dominicus), the knot (Canutus canutus) and several species of sandpipers are on the list; and the parasitic jaeger or Arctic skua, which nests as far north as Greenland, Spitzbergen, and Franz Josef Land, sometimes spends the summer in New Zealand. Two species of cuckoos—the shining cuckoo (Lamprococcyx lucidus) and the longtailed cuckoo (Urodynamis taitensis)—arrive in New Zealand from unknown northern homes, probably on Pacific islands, in the spring, and leave the Dominion about April. Both are parasitical, imposing on small birds the duties of hatching and rearing young cuckoos. In some respects the kiwi is the most remarkable bird in New Zealand. It is the only bird known with nostrils at the tip of the bill, instead of at the base. Its plumage is hair-like in appearance. It lays an immense egg compared with the size of its body. Its structure is very generalized. Sir Richard Owen once suggested that it seemed to have borrowed its head from one group of birds, its legs from another, and its wings from a third.

The takahe (Notornis), a large, heavily built rail, is one of the rarest birds. Only four individuals have been recorded. Two of the skins are in the British Museum, one is in the Dresden Museum, and one remains in New Zealand in the Otago Museum, Dunedin. The fourth Notornis was caught by two guides (Messrs. D. and J. Ross) at Notornis Bay, Lake Te Anau, in 1898. There is reason to believe that this species still exists in the wild country of the southern sounds.

An eagle, a goose, and a large rail are amongst New Zealand's extinct birds. In this class are the moas. Dr. W. R. B. Oliver has divided them into twenty-one species. The tallest stood 12 ft. high. Their remains show that they were very plentiful. The cause and time of their extinction are still subjects of controversy. A mass of knowledge has been collected about them; all this with theories and Maori traditions has been recorded in Mr. T. Lindsay Buick's “The Mystery of the Moa” (1931). It should be read with Dr. Oliver's erudite essay on the moas in “New Zealand Birds” (1930).

Reptilian life is restricted to about fifteen species of lizards and to the tuatara (Sphenodon punctatus). This is a lizard-like creature, the only surviving representative of the order Rhynchocephalia. The tuatara is found in no other country. It has been destroyed to a large extent by wild pigs, cats, and dogs, and is now seldom found except on a few islands off the coast of the mainland.

The amphibians are represented by two species of frogs. One, Liopelma Hochstetteri, has been recorded from only a few districts in the Auckland Province. The other, Liopelma Hamiltoni, has been recorded from only Stephen's Island, a small island in Cook Strait, notable as one of the refuges of the tuatara.

About 310 species of fish have been found in New Zealand waters. Many of these are used for food. Several species, notably the mudfish (Neochanna apoda), which is sometimes discovered buried 4 ft. deep in clay in places where rivers have overflowed in flood, and in swampy places, are interesting. Some of the genera are peculiar to New Zealand, but some also occur in Australian and South American waters.

Amongst the invertebrates one of the peculiarities is the fact that the Dominion has few butterflies, although it is well supplied with moths. It has a red admiral butterfly (Vanessa), named after the European species, which it resembles, and a copper butterfly (Chrysophanus), which is very plentiful. In the forests there is that strange growth, the “vegetable caterpillar.” The Dominion has native bees and ants, dragon-flies, sober-coloured beetles, and representatives of other orders of insects. The katipo spider, which lives mostly on or near the sea-beach, is well known locally. Amongst the mollusca there is a large and handsome land-snail (Paryphanta) and Amphibola, an air-breathing snail, peculiar to the Dominion, which lives in brackish water, mainly in estuaries. There are about twenty species of univalves and twelve of bivalves in the fresh-water shells, and many species in the marine shells, including the paper nautilus (Argonauta).

Perhaps the most interesting of all the invertebrates is Peripatus, an ancient type of creature which survives in New Zealand and in parts of Australia, Africa, South America, the West Indies, New Britain, the Malay Peninsula, and Sumatra. Zoologically, it belongs to the air-breathing division of the phylum Arthropoda, and has been placed in a special class, Prototracheata or Onychophora. It is about 3 in. long, has many feet, loves moisture, shuns light, and moves slowly.

On the arrival of Europeans the whole face of the fauna changed. The first European animal introduced was the pig, liberated by Captain Cook in Queen Charlotte Sound in 1773. With settlement, sheep, cattle, horses, and other domestic animals were brought, some for utility, some for pleasure, such as songbirds, and some for sport, such as deer, trout, pheasants, and quail.

Twenty-four species of introduced birds have established themselves. Some succeeded so well that they created a small-bird nuisance. In 1906 the German owl, little owl, or brown owl (Athene noctua) was successfully introduced to help to check the small introduced birds. It is accused of killing native small birds. New Zealand farmers regard the starling as the most useful introduced bird. They condemn the house-sparrow as the most destructive, and next to it the skylark. Many species of injurious insects have been accidentally introduced. The small cabbage white butterfly (Pieris rapae) appeared in 1930. It spread rapidly, and in 1935 a chalcid (Pteromalus puparum), which parasitises the butterfly's pupæ, was introduced to control it.

Acclimatization in New Zealand is marked by several great and irretrievable mistakes. The worst of these are the introduction of rabbits, stoats, and weasels.

Chapter 2. SECTION II.—HISTORY, CONSTITUTION, AND ADMINISTRATION.

HISTORY.

When New Zealand was discovered by Europeans in 1642 it was found to be inhabited by a race of Polynesians called Maoris, who had migrated to these islands several centuries previously. At what time the discovery of New Zealand was made by the Maoris, and from what country they came, cannot be stated accurately, for being an unlettered people they had only oral records of their history. The origins of the Maori people prior to their final migration are even more obscure, but in accordance with the general tradition of the Polynesian race, it would seem that from Asia they migrated eastward by way of Malaysia to the eastern Pacific. According to their mythology their Pacific home was the island of Hawaiki—the position of which is now uncertain—and from there, many generations ago, one of their chiefs, after a long voyage, reached the northern island of New Zealand. Returning to his home, he gave a description of the country he had discovered and the route he had followed. During the next three or four centuries small desultory migrations were made, culminating in a major movement about the fourteenth century. This last migration appears to have commenced as a result of strife in the homeland, and was a well-organized colonization in which domestic animals and cultivated vegetables were brought in the large, double canoes. From comparisons of the tribal legends it has been possible to obtain a definite knowledge of the landing and subsequent division and history of the numerous tribes after their occupation of New Zealand. On their arrival the Maoris found inhabitants on the East Coast of the North Island of similar racial origins to themselves. Known to the Maoris as Morioris, “inferior people,” this race was driven to the South Island and to the Chatham Islands. Through absorption by the dominant Maoris, the Morioris gradually disappeared, and they finally became extinct by the death of their last member in 1933. Of their history nothing definite is known, and their origins remain a mystery.

Coming from tropical latitudes, the Maoris mainly confined themselves to the warmer North Island, and when discovered by Europeans were in a high state of neolithic civilization, with marked superiority in the arts of wood-carving and military engineering. Their principal social unit was the family group, which has been described as a “consanguineous subclan” (Best), and from combinations of the numerous groups were formed the subtribes and tribes. With highly developed social and ritualistic customs they were communistic within the subtribes in their system of land-tenure, as well as in their methods of cultivation. Inter-tribal and intra-tribal warfare was common, and as individuals they displayed exceptional courage and intelligence.

The Maori language is a very pure dialect of the Polynesian—the common tongue of all the eastern Pacific islands.

DISCOVERY BY EUROPEANS.

On the 13th December, 1642, Abel Janszoon Tasman, a navigator of the Dutch East India Company, discovered the country to which he gave the name of “Staaten Land,” and which later became known as “Nieuw Zeeland.” Tasman had left Batavia on the 14th August, 1642, and, after having discovered Tasmania, he steered eastward and sighted the west coast of the South Island, described by him as a high, mountainous country. Sailing north, he had the misfortune to come into conflict with the Maoris at Golden Bay on the north coast of the South Island, so that though he continued his northward journey until he reached the northern tip of the country he did not again attempt to land. His exploration was, of necessity, very cursory, for having explored only part of one coast he had no knowledge of the country's extent or shape.

There is no record of any European visit to New Zealand after Tasman's departure until Captain Cook sighted land on the 6th October, 1769, at Young Nick's Head. On his first voyage Cook spent six months exploring the New Zealand coast-line, and he completely circumnavigated the North and South Islands. His activities can be best described by saying “he found New Zealand a line on the map, and left it an archipelago” (Reeves). Not only was Cook's ability shown by his cartographical accuracy, but also in his peaceful dealings with the truculent Natives. He returned to New Zealand again in 1773, in 1774, and in 1777.

Several other explorers also visited New Zealand during the latter portion of the eighteenth century, amongst whom may be mentioned M. de Surville (December, 1769), M. Marion du Fresne (1772), Captains Vancouver and Broughton (1791), Captain Raven (1792-93), Alejandro Malaspina and José de Bustamente y Guerra (1793), Lieutenant Hanson (1793).

EUROPEAN SETTLEMENT.

So far as is known, the first instance of Europeans being left in New Zealand to their own resources occurred in 1792, when Captain Raven of the “Britannia” landed a sealing-party at Facile Harbour, on the west coast of the South Island, where they remained a little over twelve months before being called for.

In the years that followed, whaling-stations sprang up along the coast, and a trade with New South Wales began, not only in whale-oil and seal-skins, but also in flax and timber—to say nothing of the disreputable traffic in dried tattooed heads. Attracted to the Islands were deserters from whaling-vessels and escaped convicts from Australia, who in the absence of any jurisdiction, soon became notorious for their extreme lawlessness. In 1814 Samuel Marsden, chaplain to the Governor of New South Wales, obtained permission to send two of his protégés, Kendall and Hall, to the Bay of Islands to consider the desirability of establishing a mission-station. Later they returned to Sydney for Marsden, who arrived in New Zealand to preach his first sermon at the Bay of Islands on Christmas Day, 1814. Of the many admirable activities undertaken by the missionaries, their action in having the Maori language “reduced to a rational orthography” (Beaglehole) deserves special mention.

The immediate effect of European contacts on the Maoris was the outburst of a series of tribal wars waged with the more destructive musket. The advantage originally lying with coastal tribes, the wars continued until all tribes were equally well armed, and the resultant slaughter had lead to exhaustion. Following representations from Maori chiefs, for protection from the prevailing turmoil, the New South Wales Government appointed, in 1832, Mr. James Busby as British Resident at the Bay of Islands. Owing to the failure to supply him with any means of exerting authority, his appointment was ineffective. Finally the disorder, and the friction between the two races, became so intolerable that even the missionaries, who were opposed to annexation, made representations for British sovereignty.

BRITISH SOVEREIGNTY AND COLONIZATION.

On the 29th January, 1840, Captain William Hobson, R.N., arrived at the Bay of Islands, empowered to proclaim, with the consent of the Natives, the sovereignty of Queen Victoria over the Islands of New Zealand, and to assume the government thereof. Hobson formally read his commissions at Kororareka on 30th January, 1840, and on 6th February of the same year a compact called the Treaty of Waitangi was entered into, whereby all rights and powers of sovereignty were ceded to the Queen, all territorial rights being secured to the chiefs and their tribes.

On 21st May, 1840, Hobson proclaimed British sovereignty in the case of the North Island by virtue of the Treaty of Waitangi, and in the case of the South Island and Stewart Island by right of discovery, but separate proclamations were made in the following month for Stewart Island and the South Island by Major T. Bunbury and Captain J. Nias on 5th June and 17th June respectively. New Zealand remained a dependency of New South Wales until the 3rd May, 1841, when it was created a separate colony by Royal Charter dated the 16th November, 1840.

Simultaneously with Hobson's arrival in Russell there had landed in Wellington a body of settlers brought out by the New Zealand Company. This company, whose moving spirit was Edward Gibbon Wakefield, was endeavouring to “systematize colonization” by transplanting sections of English society into virgin country. It was hoped that, by producing a proper balance of capitalists and artisans, self-contained communities could be successfully established. However, owing to the unsatisfactory nature of the land-purchases, considerable difficulty was experienced in these initial settlements, and friction grew up not only between the settlers and the Natives, but also between the Governor and the settlers. Before his death in 1843 Hobson had transferred his capital from Russell to Auckland, but this transfer was of no assistance to the colonists, who had extended their settlements to Wanganui, New Plymouth, and Nelson. In 1865 the seat of government was removed to Wellington.

Following the death of Hobson, the existence of the colony became precarious, for, through lack of funds and weak administration, Maori aggression became a real menace. To cope with the situation, the Colonial Office appointed Captain George Grey as Governor. Being well equipped with troops and funds, as well as being a man of vigour and perception, Grey soon restored order and won the confidence of both the settlers and the Natives. During Grey's term two further organized settlements were made. In co-operation with the New Zealand Company the Free Church of Scotland sponsored the Dunedin Settlement of 1848, and the Church of England the Canterbury settlement of 1850. These settlements—owing to their more favoured situations, their satisfactory land-purchase agreements, and their freedom from Native trouble—achieved a greater measure of success in carrying out the company's avowed aims.

Also during Grey's term steps were taken to draft a constitution for the colony. An Act granting representative institutions was passed by the Imperial Parliament on the 30th June, 1852, and was published in New Zealand by Proclamation on the 17th January, 1853. Under it provision was made for the constitution of a General Assembly consisting of a Legislative Council and a House of Representatives. Provision was also made for the division of the country into provinces, each province having an elected Council and an appointed Superintendent.

DEVELOPMENT.

After Grey's departure the question of relationship with the Maoris again came to the fore through the land-purchasing activities of the settlers—a situation aggravated by subsequent lack of consideration for the Maori system of land-tenure. Following an incident at Waitara in the Taranaki district, where a dispute arose concerning land titles, war broke out in 1860 and lasted spasmodically till 1870. The recall of Grey did not solve the problem, as Grey, an autocrat, could not work with the elected Ministers, nor did his presence prevent the confiscation of land belonging to the Maoris, whether friendly or hostile. It was under the sympathetic administration of Sir Donald McLean as Native Minister that the dispute finally died down.

These hostilities were confined to the North Island; and, in the meantime, in 1861 large alluvial deposits of gold had been discovered in the South Island—leading to a tremendous influx of population and an alteration of the economic structure of the country. This discovery, by its increase of wealth, allowed the South Island to obtain a lead in commercial and political development which it long maintained. Moreover, with the subsequent agrarian expansion, especially in the development of the large pastoral holdings, the country ceased to be merely self-sufficient agriculturally, but began to develop a substantial export trade, mainly in wool.

These factors, together with freedom from strife with the Native population, led after 1870 to a quickening in political activities. Under the leadership of Sir Julius Vogel a policy of extensive borrowing for railway and road construction was begun, and the Provincial Assemblies, whose parochialism had frequently proved obstructive, were abolished. To provide for local administration after this abolition, the Counties Act and the Municipal Corporations Act were passed in 1876. (See Section XXVI—Local Government—for more detailed treatment). Of great social significance was the passing in 1877 of the Education Act, making education free, compulsory, and secular, while the laying during that decade of the first cable between Australia and New Zealand was a major advance in communications. At this time party politics began to enter into the parliamentary system, and the slump conditions which prevailed in the “eighties” (due to a fall in the world price-level) intensified the political atmosphere. By the abolition of plural voting in 1889, and the introduction of female suffrage in 1893, the way was opened for a practical expression of political convictions by all adult members of the community.

In 1891 John Ballance, as leader of the Liberal party, became Premier, to be followed on his death in 1893 by Richard John Seddon, and during the next decade the legislative essays of this party evoked world-wide interest. The main aim of the legislation was social justice, and its principal manifestations were in land-division, the establishment of the Arbitration Court, and the introduction of old-age pensions. The policy of land-division aimed at closer land-settlement, and it was achieved by the compulsory subdivision of large estates, with subsequent loans to small independent farmers wishing to establish themselves. In inaugurating the Arbitration Court the object was to eliminate strikes by giving labour a recognized bargaining status; and the enactment was in accord with the enlightened code of labour legislation passed at that time.

With the commencement of the refrigerated trade in 1882, the policy of closer settlement progressed rapidly, since the production of frozen meat and dairy-produce for export encouraged more intensive farming. There thus arose a new farming class which in 1911, some five years after Seddon's death, was mainly responsible for the overthrow of the Liberal regime. In the meantime the country had ceased to be a colony and had been raised to the status of a Dominion, this change taking place from 26th September, 1907.

The policy of the succeeding Reform party, whose leader was William Ferguson Massey, was one favouring agricultural production. Farming interests were given constant encouragement by a series of enactments of which the extension of rural-credit facilities was typical. Three years after the advent of the Reform party the Great War of 1914-18 broke out, leading to the formation of a Coalition Government and an Imperial commandeer of exports. War activities were marked by heavy casualty lists, in proportion to the population, and by enhanced cordiality in Imperial relations. One noteworthy outcome of the war commandeer was the precedent given for the establishment, after the war, of Control Boards to regulate the export of pastoral products.

POST-WAR CHANGES.

Though the effects of the post-war depression during the period 1921-24 showed themselves in an increase in unemployment and slight wage-reductions, no drastic legislation was necessary to stabilize economic conditions. During the following years the price-level rose; and, from the administrative side, it was characterized by extensive public-works expenditure, with particular attention to hydro-electric schemes and highways.

Owing to the encouragement given to farming, pastoral production constantly expanded, so that New Zealand became one of the world's greatest exporters of pastoral produce. As a consequence, her national income was extremely sensitive to price-fluctuations of these products; so that, with the advent of the depression in 1930, her economic position became extremely vulnerable. In order to produce balanced budgets, both public and private, various legislative remedies were attempted. In particular, enactments were provided for unemployment relief, for the suspension of the Industrial Conciliation and Arbitration Act, for the establishment of a Reserve Bank, for a mortgage moratorium, for raising the exchange-rate, and for reductions in interest-rates and wages. With the recovery in price-levels and consequent general economic revival, amendments were made to several of these Acts, removing the more stringent measures. The election of a Labour Government in 1935 has led to a change in administrative policy, the preoccupation at present being mainly with social problems. Further amendments have also been made to the emergency legislation, certain restrictive measures having been removed, while other adjustments of a temporary nature have been put on a permanent footing.

Of the constitutional events in recent years the passing by the Imperial Parliament of the Statute of Westminster in December, 1931, was of major importance. The draft of this statute was submitted for the confirmation of the various Dominion Legislatures before its passage through the Imperial Parliament. The purpose of the statute was to confer complete autonomy upon the various Dominions, but New Zealand, in common with Australia and Newfoundland, preferred to leave matters as they stood, and at their request it was provided that the operative parts of the statute should not apply to these Dominions until adopted by them. Up to the present time (October, 1939) the statute has not been adopted by the New Zealand Parliament.

Due to limitations of space, the foregoing is but a brief résumé of New Zealand history. For detailed information, reference should be made to the many excellent books dealing with the subject, of which the more recent ones are listed in the General Bibliography appearing in Appendix C of this volume.

CENTENNIAL CELEBRATIONS.

In order to mark “the hundredth anniversary of organized settlement and government in New Zealand” it is proposed during 1940 to conduct a series of national and local celebrations. Since March, 1936, when at the Government's request Mayors of former provincial capitals, together with Cabinet Ministers, held a preliminary meeting and set up a National Centennial Committee, a complete organization has been built up to control, direct, and co-ordinate all Centennial arrangements.

The chief feature of this organization is a comprehensive system of committees and sub-committees which, with one exception, are under the direct or delegated control of the National Centennial Council (as the National Centennial Committee became under the New Zealand Centennial Act, 1938). For its actions the Council is answerable to the Minister of Internal Affairs, who is also Chairman of the Council. Within the system of committees two different types can be distinguished—(1) those committees and sub-committees arranged on a geographical basis and charged, with the responsibility of planning memorials and celebrations; and (2) those whose functions are of a specialized nature, such as the Historical and Press Committees.

The basis of division in the former instance is the provincial district, and for each of the eleven districts (there being two extra districts created for Centennial purposes) there is a Provincial Centennial Committee. Primarily responsible for preparing the provincial celebrations and memorials, the provincial committees have also to co-ordinate and supervise the comparable activities of the several zone and local committees throughout the provincial district. Before making final decisions and arrangements, the provincial committees must obtain the approval of the National Centennial Council; and a similar relationship exists between zone committees and provincial committees, and between local committees and zone committees. Personnel for these committees is obtained by the local or sub-zone committees drawing on local bodies and other permanent institutions for members; and by progressive representation, together with additional members, the succeeding committees are built up. For the National Centennial Council it is required by statute that certain office-holders be members.

In the case of the national committees dealing with particular aspects of the Centennial—such as the Historical, Press, and Transport Committees—the personnel is obtained by drawing on the services of specialists. Of these committees the National Historical Committee is the most important, for it is responsible not only for the publication of the official Centennial literature, but also for the confirmation of the relevant historical dates. To obtain the necessary information, considerable research has been undertaken by experts and by voluntary sub-committees throughout the country, and appeals have been made both abroad and in New Zealand for early manuscripts and papers. As a means of marking the Centennial, the projected official publications will rank in importance with the national memorials and celebrations. These publications will comprise two series of surveys, one of twelve parts covering New Zealand's historical development written in a popular manner by authorities, and a parallel pictorial series of thirty parts; an exhaustive and well-produced historical atlas treating the development from a cartographical and diagrammatic viewpoint; and a dictionary of biography covering the lives of prominent people who lived during that era. The issuing of Centennial coins and stamps, and the holding of literary competitions, were further celebratory events receiving the recommendations of the National Historical Committee.

To provide a secretariat for the National Centennial Council and the national committees, especially the Historical Committee, a special branch of the Department of Internal Affairs has been established, and to it are attached the editorial staff for publications, the research staff, and other specialists.

Also of importance as a Centennial event is the holding of an exhibition in Wellington between November, 1939, and April, 1940. This project, which is being promoted by a public company, is receiving material assistance from the Government, the Centennial Act authorizing the Government to lend the company £25,000 free of interest. The Act also permits local authorities to subscribe for shares. In the general scheme of portraying, at the exhibition, the economic resources and development of the Dominion, governmental support is being given by the displays of numerous Departments. Extensive displays are also being undertaken by other Empire countries, while the exhibition will provide the recognized facilities for education and amusement.

As may be inferred from previous statements, the New Zealand Centennial Act, 1938, gives legal sanction to the numerous governmental activities in connection with the Centennial, the Minister of Internal Affairs being charged with the responsibility of its administration. By it, the appointment and activities of the National Centennial Council and the various committees are legalized, and a definition given of their general functions. Particular attention is paid to the functions of the National Historical Committee, which, unlike the other national committees, is answerable not to the Council but to the Minister direct. Authority is given for the expenditure of funds by local authorities and other public bodies on Centennial memorials and celebrations, and for the Government to subsidize, within defined limits, funds raised for approved memorials and celebrations at the rate of £1 for every £3. The granting of special franchises for the New Zealand Centennial Exhibition has been provided for.

A governmental subsidy of £150,000 for memorials and celebrations is to be divided among the provincial committees for detailed allocation. These subsidies are in respect of those memorials and celebrations that have received the approval of the Minister of Internal Affairs through the National Centennial Council. In allocating the amount available for subsidies, each memorial and celebration fund is set a limit in respect of which a subsidy is available, and no subsidy is payable on sums raised in excess of this limit. Furthermore, no subsidy is available where the financing of a Centennial project is by loan.

CONSTITUTION.

THE EXECUTIVE COUNCIL.

The powers, duties, and responsibilities of the Governor - General and the Executive Council under the present system of responsible government are set out in Royal Letters Patent and Instructions thereunder of 11th May, 1917, published in the New Zealand Gazette of 24th April, 1919 (p. 1213). In the execution of the powers and authorities vested in him the Governor-General must be guided by the advice of the Executive Council, but, if in any case he sees sufficient cause to dissent from the opinion of the Council, he may act in the exercise of his powers and authorities in opposition to the opinion of the Council, reporting the matter to His Majesty without delay, with the reasons for his so acting.

In any such case any member of the Executive Council may require that there be recorded in the minutes of the Council the grounds of any advice or opinion that he may give upon the question.

The present Executive Council consists of thirteen members in addition to the Governor - General. Two members, exclusive of His Excellency or the presiding member, constitute a quorum.

Under the Civil List Act, 1920, His Excellency the Governor-General receives an honorarium of £5,000 per annum, an allowance of £2,000 per annum for the salaries and expenses of his establishment (exclusive of the Official Secretary), and an allowance of £500 per annum for travelling-expenses.

The Civil List Act, 1908, authorized salaries of £1,600 for the Prime Minister, £1,300 for the Minister of Railways, and £1,000 to each of six (increased in 1915 to eight and in 1917 to ten) other members holding portfolios. The Civil List Act, 1920, authorized salaries of £2,000 for the Prime Minister, and £1,300 to each of ten other members holding one or more ministerial offices. A reduction of 10 per cent. was made in 1922. Ministerial salaries were again reduced in 1931 by 10 per cent. and in 1932 a further reduction of 15 per cent. was made. Restoration to the 1930 level was effected from 1st July, 1936. The present Government, shortly after assuming office, instituted a scheme whereby the services of all parliamentary representatives of the Government party might be co-opted to assist Ministers in bringing the Government's policy into effect. As part of this plan, Ministers are sharing a portion of their authorized salaries with other Government parliamentary representatives.

In providing for the appointment of Parliamentary Under-Secretaries, by the Civil List Amendment Act, 1936, an innovation was made in executive control in New Zealand; but, up to the present (October, 1939) only one appointment has been made in this connection. For service rendered as Parliamentary Under-Secretary a salary of £600 is provided. The Act also provides for the extension of the number of Ministers, other than the Prime Minister, from ten to eleven (without, however, increasing the aggregate amount which may be paid in ministerial salaries).

THE LEGISLATIVE COUNCIL.

The Imperial Act, under which the earliest appointments were made to the Legislative Council under a system of responsible government, provided that the first appointees should be not less than ten in number. The number actually summoned for the first session (held at Auckland from 24th May, 1854) was sixteen, of whom only fourteen attended. The number increased irregularly for thirty years. In 1885 and 1886 it stood at fifty-three, but has not since reached that limit. The number on the roll at present (October, 1939) is 35.

An Act of the Imperial Parliament in 1868 provided that future appointments of Councillors should be made by the Governor (not by the Sovereign). Until 1891 members were appointed for life, but since that year appointments have been made for seven years only, members, however, being eligible for reappointment. Prior to 1891 the Speaker was appointed by the Governor, but the Council now elects its own Speaker, who holds office for five years. The Chairman of Committees was formerly elected every session, but in 1928 the standing orders were amended to provide for a three years' term of office. Speaker and Chairman are both eligible for re-election.

Provision for an elective Legislative Council is contained in the Legislative Council Act, 1914, which may be brought into operation at a date to be specified by Proclamation. If this Act becomes operative women will become eligible for membership of the Legislative Council, a privilege which they do not at present enjoy.

For males the qualifications for membership of the Legislative Council are the same as for the House of Representatives (see post), with the proviso that a person may not at the same time be a member of both Houses.

Before the year 1892 the honorarium of Councillors was understood to be for the session, not for the year, and formed the subject of a special vote every session, the amount varying in different sessions. By the Payment of Members Act, 1892, the honorarium was made annual, not sessional, and was fixed at £150 a year. The amount was raised in 1904 to £200, and in 1920 to £350, but was reduced in 1922 to £315, in 1931 to £283 10s., and in 1932 to £255 3s. In 1934 the honorarium was raised to £267 19s., in 1935 to £288 ls., and from 1st July, 1936, to £315 (the level ruling between 1922 and 1931). The Speaker now receives £720 per annum and free sessional quarters, and the Chairman of Committees £450. Besides the honorarium, members are allowed travelling-expenses actually incurred in going to and from Parliament at the opening and closing of each session.

Subject to certain exemptions, members not attending the Council are liable to be fined.

HOUSE OF REPRESENTATIVES.

The number of members constituting the House of Representatives is eighty—seventy-six Europeans and four Maoris. They are designated “Members of Parliament.” The number was originally fixed by the Constitution Act as not more than forty-two and not less than twenty-four, and the first Parliament called together in 1854 consisted of forty members. Legislation passed in 1858 fixed the number of European members at forty-one; in 1860, at fifty-three; in 1862, at fifty-seven; in 1865, at seventy; in 1867, at seventy-two; in 1870, at seventy-four; in 1875, at eighty-four; in 1881, at ninety-one; in 1887, at seventy; and in 1900, at seventy-six. By the Maori Representation Act, 1867, which is still in force, as embodied in the Electoral Act, 1927, four Maori members were added, three for the North Island and one for the South.

After each population census the Dominion is divided anew into seventy-six European electorates, according to population distribution. In the allocation of electorates an addition is made to rural populations so that the number of rural electorates, in proportion to their population, is higher than urban electorates. The “country quota,” as this allowance is called, is computed on the basis that 28 per cent. is added to the rural population, which for electoral purposes means population other than that contained in a city or borough of over 2,000 inhabitants or in any area within five miles of the chief post-offices at Auckland, Wellington, Christchurch, or Dunedin. The “country quota” first appeared in 1881, to the equivalent of an addition of 33 1/3 per cent. to the country population. It was reduced in 1887 to 18 per cent., but was increased in 1889 to the present 28 per cent.

Quinquennial Parliaments, instituted under the Constitution Act, were abolished by the Triennial Parliaments Act, 1879, which fixed the term at three years. General elections have been held at three-yearly intervals since 1881, with the exception that the term of the nineteenth Parliament was during the 1914-18 War extended to five years by special legislation, and that of the twenty-fourth Parliament (1931-35) to four years under the Electoral Amendment Act, 1934 By the Electoral Amendment Act, 1937, the three-year term was restored.

Under the Electoral Act, 1927, every registered elector of either sex, but no other person, is qualified to be a Parliamentary candidate. It is provided, however, that a person shall not be so elected who is disqualified as an elector under any of the provisions of the Act (see under “Franchise” post); or is an undischarged bankrupt; or is a member of the Legislative Council; or is a contractor to the public service of New Zealand to whom any public money above the sum of £50 is payable, directly or indirectly (but not as a member of a registered company or incorporated body), in any one financial year. Though women's suffrage has been operative since 1893, women were not eligible as Parliamentary candidates until the passing of the Women's Parliamentary Rights Act, 1919, the provisions of which are now embodied in the Electoral Act, 1927. Under the Electoral Act public servants were prohibited from being elected, but this prohibition has been removed by the Political Disabilities Removal Act, 1936, which provided that if elected they immediately cease to be public servants.

The payment made to members of the House of Representatives is £450 per annum, subject to certain deductions for absence not due to sickness or other unavoidable cause. Travelling-expenses to and from Wellington at the opening and closing of each session are also allowed. The rate of payment for several years prior to 1920 was £300 per annum, but was increased in that year to £500, 10-percent. reductions, however, being made in 1922, 1931, and 1932, with restorations of 5 per cent. in 1934, and 7½ per cent. in 1935. The rate was restored to £450—the 1922 level—from 1st July, 1936.

The election of a Speaker is the first business of a new House after the members have been sworn. A Chairman of Committees is elected as soon after as is convenient. Both Speaker and Chairman of Committees hold office until a dissolution, and receive payment until the first meeting of a new Parliament. The Speaker's remuneration is £900 per annum, plus sessional allowance of £100 and free sessional quarters, and that of the Chairman of Committees £675 per annum.

Twenty members, inclusive of the Speaker, constitute a quorum.

THE FRANCHISE.

Since the abolition of plural voting in 1889 and the introduction of women's suffrage in 1893 every person twenty-one years of age or over has had the right to exercise a vote in the election of Members for the House of Representatives. To be registered as an elector a person must have resided for one year in the Dominion, and for three months in the electoral district for which he claims to vote. A system of compulsory registration of electors was introduced at the end of 1924.

There are, of course, slight exceptions to the foregoing, for, if a person is classified as one of the following, he or she is not entitled to register as an elector or to vote:—

  • An alien:

  • A mentally defective person:

  • A person convicted of an offence punishable by death or by imprisonment for one year or upwards within any part of His Majesty's dominions, or convicted in New Zealand as a public defaulter, or under the Police Offences Act, 1927, as an idle and disorderly person or as a rogue and vagabond, unless such offender has received a free pardon, or has undergone the sentence or punishment to which he was adjudged for such offence.

  • Maoris are qualified to vote only at elections of the four members representing the Maori race. A Maori half-caste may register on the roll of a European electoral district; and if so, may not then vote at an election of Maori members.

  • By the Electoral Amendment Act, 1937, which made provision for a secret ballot in Maori elections, Maori electors were granted the same privileges, in the exercise of their vote, as European electors.

  • For the system of local-government administration a modified form of franchise exists, property qualification being necessary for the exercising of votes on financial issues. Further reference is made to this aspect of franchise in Section XXVI, dealing with Local Government.

ADMINISTRATION.

A fairly comprehensive idea of the administrative machinery of the Government will be obtained from this Year-Book, by referring to the activities of the various Departments. In particular, some sections of the book, such as those dealing with Education, Railways, Post and Telegraph, and Radio Broadcasting, are confined to descriptions of departmental undertakings, while reference to the capacities of other branches of the Government such as Mining, Agriculture, Forestry, State Advances, Social Security, Pensions, and Public Trust, will be found under appropriate headings. In the section headed “Official” is given a complete list of Government Departments with some information as to the control of Government officers.

A section of this volume also deals with the functions and activities of the various classes of local governing authorities.

Chapter 3. SECTION III.—STATISTICAL ORGANIZATION.

EARLY STATISTICAL RECORDS.

New Zealand was proclaimed a British Crown colony in 1840. Official statistical records of the country commenced with the following year, 1841, in the form of reports compiled for the information of the Colonial Office, and known by immemorial custom as “Blue-books.” These reports, which continued until 1852, were prepared in manuscript form in triplicate, and consisted of a collection of tables, compiled by various Government authorities, and illustrating the work of their Departments.

Two factors retarded the development of the statistics of the blue-books: in the first place, they were not intended for general publication; secondly, there appeared a lack of co-ordination between the Departments furnishing the returns and the office collating and ultimately issuing them.

It was not long, however, before the need for authoritative statistics was felt both for present use and also as a record of the development of the country and its various provinces and settlements. Accordingly, in 1849, “Statistics of New Munster,” compiled under the superintendence of Alfred Domett, was printed by Order of the Legislative Council. Again, “Statistics of Nelson,” covering the period 1843-54, was issued in 1855. Various other publications were issued dealing with some individual province or settlement. In the year 1853 a constitution granted by the Imperial Parliament came into force, and from this date the fragmentary and inchoate statistical works find a new complexion. Five years later the Registrar-General, who had been entrusted with the task of compiling annually statistics of the whole colony, produced a volume dealing with the years 1853, 1854, 1855, and 1856.

STATISTICAL LEGISLATION.

One of the many ways in which statistics may be classified is as to source from which obtained, and in this respect they divide naturally into two classes—i.e., as to whether they are compiled from the records (obtained primarily for some other purpose) of a Government Department or other similar authority, or from data collected by questionnaire from individual persons, &c.

As indicated above, the statistics included in the early blue books belong in the main to the first of these two categories. Certain items, however, notably population figures, would be more correctly placed in the second category, though the system of collection was exceedingly crude and the scope of inquiry very limited. As a matter of fact, the population figures prior to 1851 appear to have been compiled in each settlement by the local Resident Magistrate by the simple method of ascertaining from the head of each house the number of persons in the household. From such small beginnings, however, has grown the Dominion's present comprehensive system of collection of statistical data.

The proper collection of statistics from the public on the voluntary basis which appears to have existed in the “forties” could be maintained only with a very small population, and with the simplest of inquiries. With the increase of population and the desire to obtain fuller information than in the past, it was found advisable as early as 1851 to pass an Ordinance providing for the collection of statistics in the form of recurrent censuses.

Following the passing of the Census Ordinance of 1851 by the General Government, several of the provinces into which New Zealand was divided passed Census Ordinances of their own, the necessity for which is not apparent, as other provinces took censuses under the authority of the 1851 Ordinance.

This Ordinance gave way in 1858 to the Census Act of that year, which was amended in 1860, 1867, 1873, and 1876, and was in its turn repealed in 1877, when a new Act was passed, consolidating and extending the law relating to census-taking. The Act of 1877 was amended in 1880 and again in 1890; also, in effect, in 1895, when the Agricultural and Pastoral Statistics Act was passed, making provision for the annual collection of agricultural and pastoral statistics, which had formerly been collected quinquennially under the Census Act. In 1908 the Census Act and amendments and the Agricultural and Pastoral Statistics Act were consolidated in the Statistics Act, 1908, as part of the general consolidation of statutes. The Statistics Act, 1908, was replaced two years later by the Census and Statistics Act, 1910, which was amended in 1915 by the Census and Statistics Amendment Act of that year. The Act of 1910 was superseded by the Census and Statistics Act, 1926, which with slight amendments contains the present law on the subject of statistical inquiry.

Considerations of space prevent the tabulation of the various alterations to and extensions of statistical services involved in the foregoing enactments; but amendments to the legislative basis on which the Department is founded followed as a natural consequence of the growth of the world-wide realization of the importance and value of statistics.

The Census and Statistics Act, 1926, provides not only for the taking of the quinquennial population census, but also for the collection of statistical information under numerous specific heads, and contains a general authority to the Governor-General to extend the system of collection to cover any other items in respect of which statistical information may be found necessary or advisable.

The Census Postponement Act of 1930, an economy measure, dispensed with the statutory requirement that a census be taken in the year 1931. The first census under the 1926 Act was thus postponed until 1936, ten years distant in time from the previous census.

THE STATISTICAL AUTHORITY.

The early blue-books appear to have been compiled by the Colonial Secretary. After the granting of responsible government, the Registrar-General was entrusted with the collection of statistics, a function which he retained until 1910. The Census and Statistics Act, 1910, provided for the appointment of a Government Statistician, who has since been the authority charged with the administration of the Act. The 1910 Act laid down that the Government Statistician was to be an officer of the Registrar-General's Department, but this proviso was cancelled in 1915 by the amending Act of that year, whereupon the Census and Statistics Office came into existence as a separate branch of the Department of Internal Affairs. In 1931 the Office became a branch of the Department of Industries and Commerce, and in 1936 it was created a separate Department.

Ministerial control of the Census and Statistics Office was, by the Census and Statistics Act, 1910, to be exercised by the Minister of Internal Affairs. By the Finance Act (No. 2), 1931, the definition of “Minister” in the Census and Statistics Act was altered to mean the Minister of Industries and Commerce. From September, 1931, however, there has been a separate Minister in charge of Census and Statistics, and this position was given legislative recognition by section 45 of the Finance Act, 1936.

STATISTICAL ORGANIZATION.

Until comparatively recent years there was very little statistical collection apart from the quinquennial census, the annual collection (on legislative authority) of the agricultural and pastoral statistics, the collection on a voluntary basis of returns of private schools, savings-banks, &c., and the obtaining of statistical information from other Government Departments. It should be noted, however, that the census was formerly the means used for the collection of certain data (as, for instance, concerning factory production), now obtained annually.

Since the passing of the Census and Statistics Act in 1910, and more especially since the formation of the Census and Statistics Office in 1915, the system of statistical collection has expanded considerably, not only in regard to the regular activities of the Department, but also for the obtaining of data required for some special purpose. During and immediately following the 1914-18 war, for instance, the provisions of the Census and Statistics Act were utilized for the collection of information as to stocks, consumption, requirements, &c., of numerous commodities, including flour, wheat, oats, coal, oils, wire, iron, steel, copper, twine, turnip-seed, and medical requisites.

The range of subjects concerning which statistical data are regularly collected by the Census and Statistics Department is indicated by the following list:—

  1. By direct questionnaire: Population census; census of libraries; agricultural and pastoral statistics (main collection); areas sown in wheat, oats, barley, and potatoes; threshings of wheat and oats; potato-yields (post-harvest collection); stocks of flour, wheat, and oats; detailed statistics of live-stock; stocks of wool; detailed statistics of commercial orchards; eggs and egg-pulp in cold storage; factory production; cinematograph theatres; electric tramways; electric power; fire insurance; accident insurance; finances and loans of local-governing authorities; building-permits; building and constructional operations; afforestation and plantation operations; building societies; port cargo statistics; trading banks; private savings-banks; wholesale, retail, and share prices; private assignments; employment, short time, and overtime in factories; consumption and stocks of coal; hospital patients; and benevolent institutions.

  2. From or through other Government Departments in the form of individual returns, cards, &c.: Births; marriages; deaths; orphanhood; migration; inquests; civil and criminal cases in Courts; prisons; divorce; bankruptcy; port shipping returns; deceased persons' estates; sheep returns; State advances to local authorities; totalizator investments, &c.; deposits with building and investment societies and trading companies; incomes and income-tax; land holdings and land-tax; land transfers and mortgages; life assurance; industrial disputes; industrial accidents; award rates of wages; and joint-stock companies.

The list quoted above refers only to sources of data from which both primary and secondary tabulations are made by the Census and Statistics Department. In addition to the sources mentioned, statistical returns compiled by other Government Departments—e.g., statistics of trade, public finance, &c.—are utilized by the Census and Statistics Department for further analysis and for correlation with other branches of statistical inquiry.

STATISTICAL PUBLICATIONS.

When New Zealand ceased to be a Crown colony in 1853 the annual despatch of the blue-books to the Colonial Office in London was discontinued. During the next few years several volumes of statistical tables appeared, compiled by various Provincial Governments, and the publication by the Registrar-General in 1858 of the volume for the colony as a whole, covering the years 1853, 1854, 1855, and 1856, previously referred to, commenced a regular annual series which were issued with gradual expansion, formerly by the Registrar-General's Department, and from 1915 to 1920 by the Census and Statistics Office. As indicating the expansion of the country and of its statistical organization it may be mentioned that, while the statistics of the four years 1853-56 were contained in a single volume, the statistics for 1920, the last year of publication in the old form, occupied four volumes aggregating nearly 1,200 pages.

Closely allied to the annual volumes of Statistics were the volumes of Census Statistics which were regularly compiled and published after each census of New Zealand from 1858 to 1916, for the first four occasions as part of the Statistics, but later (commencing with 1871) as separate publications.

With each volume of Statistics, commencing with that for 1853-56, went a brief report on the statistics presented. Developing slowly at first, the ultimate result was a fairly comprehensive report on the statistics, not only those presented, but the whole statistics (so far as compiled) of the colony. A similar report on census matters was included in each volume of Census Statistics.

Parallel with the statistical reports came, in 1875, an issue of another type—“The Official Handbook of New Zealand, a Collection of Papers by Experienced Colonists on the Colony as a Whole, and on the Several Provinces,” edited by Julius Vogel, C.M.G. (afterwards Sir Julius Vogel, K.C.M.G.), at that time Premier of the colony. The purpose of this book differed from that of the statistical reports. Its aim was to give “a New Zealand view of New Zealand to those who may think of making the colony their homes or the theatre of business operations.” Its well-written articles, generously illustrated with woodcuts and photographs, made this early volume interesting reading. Printed in London, it was circulated largely in England.

In 1884 a new and revised edition of this handbook was compiled by Mr. William Gisborne, and edited by the Agent-General of the day (Mr. F. D. Bell, afterwards Sir Francis Bell). The purpose of this edition was similar to that of its predecessor, although in form it approximated more closely to the modern type.

Another example of a handbook composed for some special purpose was that of Dr. Hector, issued for the Melbourne International Exhibition of 1880.

By the year 1889 the annual report on the statistics had reached considerable proportions, and it was decided by the Registrar-General to issue it as a separate publication. He remarks in the preface to the 1889 volume of Statistics as follows: “The report has now reached about the size of the original Victorian Year-Book, and it has been deemed desirable to publish it in octavo size to make it more convenient for general reference.” A similar decision, it may be added, was made in regard to the quinquennial Census Report.

For 1889 and 1890 the Report on the Statistics was accordingly issued as a separate publication with several new features. The following year (1891) was a census year, and the place of the usual statistical report for that year was taken by a separate “Report on the Results of a Census of the Colony of New Zealand taken for the Night of the 5th April, 1891,” the first of a series of reports which have since been published after each census.

In 1892 the Report on the Statistics reappeared, remodelled and considerably enlarged, and under the title of the “New Zealand Official Handbook.” The Handbook achieved a very considerable success, and the Government gave instructions for the preparation annually of a similar volume, to be called the “New Zealand Official Year-Book.” The compilation remained in the hands of the Registrar-General until 1910, when on the passing of the Census and Statistics Act of that year the Year-Book and other statistical publications came under the control of the Government Statistician.

The demy octavo size adopted in 1889, when the Report on the Statistics was first issued as a separate publication, was retained for the Official Handbook, and, up to the 1920 number, for the Year-Book. This size, however, was not altogether satisfactory from the point of view of economy of space or for the display of tabular matter, and in the next issue gave way to the royal octavo size.

A change was also made at the same time in the year-number of the book. Formerly the book had been designated by the year of compilation, though in recent years it had not appeared until early in the following year. The book now bears the year of publication.

A new policy adopted in 1921 in regard to the publication of the Annual Statistics involved the reintroduction of the report to accompany the tabular matter. In lieu of presenting the statistics in one comprehensive publication, these now form the tabular matter for eight separate annual reports, each covering a definite branch of statistical inquiry, and including introductory and explanatory letterpress in addition to the tables.

A similar policy is also now followed in the case of the census results. In addition to the complete report published separately after the completion of the census tabulation, each volume of tables contains also an introductory discussion of the results disclosed.

The principal publication of the Census and Statistics Department is the New Zealand Official Year-Book, which, as its title implies, is the official book of general reference for the different branches of the Dominion's activities, and the various aspects of its social and economic characteristics and progress. Necessarily, much of the information given in the Year-Book is of a condensed character, owing to the wide range of subjects covered. The Local Authorities Handbook, the annual Statistical Reports, and the census publications contain much more detailed information on the particular subjects they deal with, while the Monthly Abstract of Statistics contains the latest statistical information available on a variety of subjects, giving monthly or quarterly figures in most cases, together with letterpress discussion on the principal features, and periodic articles on newly completed annual matter.

The full list of the regular publications of the Census and Statistics Department is as follows:—

Title.Periodicity of Issue.
New Zealand Official Year-BookAnnual.
Annual Statistical Reports— 
Population and BuildingsAnnual.
Vital StatisticsAnnual.
JusticeAnnual.
Trade and Shipping (Part I)Annual.
Trade and Shipping (Part II)Annual.
Agricultural and Pastoral ProductionAnnual.
Factory and Building ProductionAnnual.
InsuranceAnnual.
Miscellaneous (Prices, Wage-rates and Hours of Labour, Unemployment, Industrial Accidents, Tramways, Banking, Building Societies, Bankruptcy, Commercial Afforestation, Incomes and Income-tax, Statistical Summary)Annual.
Local Authorities Handbook of New ZealandAnnual.
Pocket Compendium of New Zealand StatisticsAnnual.
Monthly Abstract of StatisticsMonthly.
Volumes of Census ResultsNormally quinquennial.
Published in New Zealand Gazette 
Estimated Yields of Wheat, Oats, and BarleyAnnual.
Estimated Areas under Wheat, Oats, Barley, and PotatoesAnnual.
Stocks—Flour, Wheat, and OatsAnnual.

During the years 1927-31 a series of Compendia was issued, but publication of these was suspended in 1932 owing to the dictates of economy. In August of 1938 a Pocket Compendium of New Zealand Statistics was issued, marking the commencement of a new series. The Compendium presents in easily accessible form the more significant statistical data illustrative of social and economic trends in the Dominion. The nature of the publication precludes any detailed exposition of methods of compilation or any interpretation of the statistics, but free use has been made of diagrams in presenting important statistical data.

OTHER STATISTICAL SOURCES.

The various publications of the Census and Statistics Department—notably the New Zealand Official Year-Book—contain summaries of statistical information collected from various governmental and other sources, as well as data compiled de novo by the Department.

The detailed publication of statistics in these volumes is, however, confined to the statistics actually compiled by the Census and Statistics Department, so that the list of publications contained under the preceding heading is by no means a complete bibliography of sources of statistical information. A wealth of statistical data is contained in the various departmental reports presented to Parliament, while other governmental and semi-governmental institutions regularly publish statistical matter illustrative of their activities.

The regular publication of original statistics by universities, private organizations, or firms is not developed in New Zealand to the same extent as in some other countries, notably the United States of America. Reviews and interpretations of official and other statistics are included in several periodicals, the regular series of bulletins issued by the Canterbury Chamber of Commerce and the interpretations of official economic statistics included in the Journal of the Auckland Chamber of Commerce being notable examples.

Following are lists (not claimed to be exhaustive) of official and other publications of importance from a statistical point of view.

ANNUAL PARLIAMENTARY PAPERS.

Subject.Report.
Number.Title.
* In four parts.
Meteorology, seismology, geological survey, &c.H.-34Report of Scientific and Industrial Research Department.
Public health, hospitals, &c.H.-31Report on Public Health, Hospitals, and Charitable Aid.
 H.-7Report on Mental Hospitals.
EducationE.-1Report of Minister of Education.
 E.-2Report on Primary and Post-primary Education.
 E.-3Report on Education of Native Children.
 E.-4Report on Child Welfare, State Care of Children, Special Schools, and Infant-life Protection.
 E.-7Report on Higher Education.
 H.-32aReport of the Country Library Service.
JusticeH.-16Report on Police Force.
 H.-20Prisons Report.
 H.-20aReport of Prisons Board.
 H.-20bReport on Offenders' Probation.
DefenceH.-19Report of General Officer Commanding.
 H.-5Report on New Zealand Naval Forces.
 H.-37Report of Air Department.
External tradeH.-44Report of Department of Industries and Commerce.
ShippingH.-15Report of Marine Department.
RailwaysD.-2Railways Statement.
 D.-1Public Works Statement.
Roads and road transportD.-1Public Works Statement.
 H.-40Report of Transport Department.
Air transportH.-37Report of Air Department.
 H.-40Report of Transport Department.
Postal and telegraphicF.-1Report of Post and Telegraph Department.
BroadcastingF.-3Report of Broadcasting Service.
 F.-1Report of Post and Telegraph Department.
LandsH.-3Report of Land Transfer and Deeds Registration Department.
 C.-1aReport on Surveys.
 C.-4Report on Swamp Drainage.
 C.-6Report on Scenery Preservation.
 C.-8Report on Drainage Operations in Hauraki Plains.
 C.-11Report on Drainage Operations in Rangitaiki Plains.
Crown landsC.-1Report on Settlement of Crown Lands.
 C.-5Report on Land for Settlements Act.
 C.-9Report on Discharged Soldiers' Settlement.
 C.-14Report on National Endowments.
Native landsG.-9Report on Native Land Courts, &c.
 G.-3, 4Accounts of East Coast Native Trust Lands.
 G.-10Report of Board of Native Affairs.
Agricultural and pastoral productionH.-29Report of Department of Agriculture.
 H.-23Annual Sheep Returns.
 H.-30Report of Primary Products Marketing Department.
 H.-34Report of Scientific and Industrial Research Department.
ForestryC.-3Report of State Forest Service.
 C.-12Report on Kauri-gum Industry.
FisheriesH.-15Report of Marine Department.
 H.-22Report of Internal Affairs Department.
MiningC.-2Mines Statement.
 C.-2aReport on State Coal-mines.
 C.-7Report of the State Iron and Steel Department.
 C.-12Report on Kauri-gum Industry.
 H.-34Report of Department of Scientific and Industrial Research.
Factory productionH.-44Report of Department of Industries and Commerce.
Public financeB.-1*Public Accounts.
 B.-2Report and Accounts of Public Debt Commission.
 B.-6Financial Statement (Budget).
 B.-7Appropriations chargeable on Consolidated Fund and other Accounts.
 B.-7aAppropriations chargeable on Public Works Fund.
 B.-10Public Securities held.
 B.-16Report of the Reserve Bank of New Zealand.
 D.-1Public Works Statement.
 H.-4.Report of Stores Control Board.
State advancesB.-13Report of State Advances Corporation.
 B.-14Report of Rural Intermediate Credit Board.
PensionsH.-18Report of Pensions Department.
SuperannuationH.-26Report of Public Service Superannuation Board.
 E.-8Report on Teachers' Superannuation Fund.
 D.-5Report on Government Railways Superannuation Fund.
National Provident FundH.-17Report of National Provident Fund Board.
Local authoritiesH.-22Report of Internal Affairs Department.
BankingB.-15Balance-sheet of Bank of New Zealand.
 B.-16Report of the Reserve Bank of New Zealand.
 F.-1Report of Post and Telegraph Department.
InsuranceH.-8Report of Government Insurance Commissioner.
 H.-6Report of State Fire Insurance Office.
 H.-6aReport of Accident Insurance Branch of the State Fire Insurance Office.
 H.-12Report on Fire Brigades.
Friendly societiesH.-1Report of Registrar of Friendly Societies.
Trade-unionsH.-11Report of Labour Department.
UnemploymentH.-11aReport of Labour Department (Employment Division).
Industrial disputesH.-11Report of Labour Department.
Industrial accidentsH.-11Report of Labour Department.
 D.-2Railways Statement.
 C.-2Mines Statement.
Electric-powerD.-1Public Works Statement.
Public Trust OfficeB.-9, 9aReport and Accounts of the Public Trust Office.
Patents, designs, and trademarksH.-10Report of Commissioner of Patents, &c.
Inspection of machineryH.-15Report of Marine Department.
DependenciesA.-3Report on Cook Islands.
 A.-4Report on Western Samoa.
 A.-6Report on Niue Island.
Public ServiceH.-14Report of Public Service Commissioners.

RECENT SPECIAL REPORTS OF STATISTICAL INTEREST PRESENTED TO PARLIAMENT.

1934.

B.-3Report of the Monetary Committee.
 (Note.—A separate appendix contains evidence heard by and statements presented to the Committee.)
H.-28Report of Tariff Commission.
H.-28aStatement on Customs Tariff.
H.-30Report of Dairy Industry Commission.
1935.
H.-30Report of Departmental Committee on National Compulsory Superannuation and Health Insurance.
I.-13aReport on Commercial Trusts Amendment Bill by Industries and Commerce Committee, together with Minutes of Evidence.
1936.
H.-44aReport on Cook Islands Fruit Industry.
1937.
H.-31aReport of Committee of Inquiry into various aspects of Problem of Abortion in New Zealand.
H.-44aReport of Sea Fisheries Investigation Committee.
1938.
H.-30aReport of Guaranteed Prices Advisory Committee.
H.-31aReport of Committee of Inquiry into Maternity Services.
I.-6Report of National Health and Superannuation Committee, 1938.
1939.
B.-4Report covering the Adjustment of Mortgages and Leases.
H.-33 and 33aVoting at General Election, 1938.
H.-33bVoting at Local Option and National Prohibition Polls, 1938.

A list of regularly issued reports, periodicals, &c., containing original statistical data, follows:—

Subject.Title of Publication.Periodicity of Issue.Produced by or under Authority of.
Meteorology, seismology, geological survey, &c.Meteorological ObservationsAnnualDepartment of Scientific and Industrial Research.
 New Zealand Journal of Science and TechnologyMonthlyDepartment of Scientific and Industrial Research.
 New Zealand Journal of AgricultureMonthlyDepartment of Agriculture.
Public-health, hospitals, &c.Appendix to the Annual Report of the Department of HealthAnnualDepartment of Health.
External tradeNews BulletinPeriodicallyDepartment of Industries and Commerce.
 Quarterly BulletinQuarterlyDepartment of Industries and Commerce.
Civil AviationCivil Aviation StatisticsQuarterlyAir Department.
Agricultural and pastorla productionNew Zealand Journal of AgricultureMonthlyDepartment of Agriculture.
 New Zealand Journal of Science and TechnologyMonthlyDepartment of Scientific and Industrial Research
 Report of New Zealand Dairy BoardAnnualNew Zealand Dairy Board.
 Report of New Zealand Meat-producers' BoardAnnualNew Zealand Meat-producers' Board.
 Report of New Zealand Fruit-export Control BoardAnnualNew Zealand Fruit-export Control Board.
 Dalgety's Wool Review for Australia and New ZealandAnnualDalgety and Co., Ltd.
 Annual ReviewAnnualPyne, Gould, and Guinness, Ltd.
Public financeAbstract of the Revenue and Expenditure of the Public AccountQuarterlySupplement to the New Zealand Gazette.
Prices, &c.Meat and WoolMonthlyNew Zealand Pastoral and Stud Stock Industries.
 Official Record of the Stock Exchange of New ZealandMonthlyStock Exchange Association of New Zealand.
DependenciesTrade, Commerce, and Shipping of the Territory of Western SamoaAnnualCollector of Customs, Samoa.
GeneralNew Zealand in a Nutshell—Facts and FiguresAnnualDepartment of Industries and Commerce. Tourist and Publicity.
 Statistical SummaryMonthlyReserve Bank of New Zealand.
 Quarterly BulletinQuarterlyDepartment of Industries and Commerce.

Chapter 4. SECTION IV.—POPULATION.

NEW ZEALAND AND DEPENDENCIES.

Population censuses were taken during 1936 in New Zealand and in all its inhabited dependencies. For New Zealand proper the census related to the night of Tuesday, 24th March, 1936, and recorded a total of 1,573,810, inclusive of 82,326 Maoris. The annexed Kermadec Islands had a population of 2. For the Cook Islands and Niue Island the effective date of the census was 30th April, 1936, and the population was 16,350 (Cook Islands, 12,246; Niue Island, 4,104). The Tokelau Islands, where a census was taken by the Western Samoan Administration for 4th November, 1936, had a population of 1,170. The same date was selected by the Administration for its census of Western Samoa, the population being recorded as 55,946. All the outlying islands (vide page 1) are uninhabited at present, as is also the huge Ross Dependency situated in Antarctic regions. The total population of New Zealand and dependencies at the 1936 censuses was, therefore, 1,647,278.

Further 1936 census figures will be found later in this section or in other portions of this volume, but for details it will be necessary to refer to the census volumes published separately. The following summary gives, where available, figures more recent than those of the census.

Date.Males.Females.Totals.
New Zealand proper (exclusive of Maoris)1 April, 1939779,095757,1691,536,264
Maoris 45,96842,48288,450
Totals, New Zealand proper 825,063799,6511,624,714
Kermadec Islands 5..5
Cook Islands and NiueCensus, 19368,3677,98316,350
Tokelau Islands1,9395656261,191
Mandated Territory of Western Samoa1,93930,41628,89059,306
Totals..864,416837,1501,701,566

METHOD OF COMPILATION.

In common with almost all countries, the chief instrument in compiling population data in New Zealand is the census, which in this country is taken quinquennially. The minutiæ of the distribution of population, together with analyses of various population characteristics, compiled from census data will be found in the official publications compiled after each census.

The basis adopted for the census, and virtually throughout population statistics in New Zealand, is that of the population present, which may be defined as the population present at the place of enumeration and at the time of the enumeration.

Intercensal figures of total population are based on the customary equation:—

Population = Population (census) + Births and immigration — Deaths and emigration.

The comparative shortness of the interval between the census enumerations, combined with New Zealand's insular position and the completeness of her registration system, prevents serious intercensal errors in statements of the total population of New Zealand. Paucity of data regarding internal movements of population permits of occasional significant errors in the estimates of the population of towns, provincial districts, &c. Though such errors rarely attained serious dimensions prior to the last decade, the omission of the 1931 census, combined with the disturbance of population resulting from the unprecedented economic depression, inevitably resulted in more significant errors during this period.

The fact that all migration to and from the Dominion must be waterborne over lengthy distances, and that it centres in a few ports, facilitates the compilation of accurate statistics of external migration. Records of passenger traffic by sea and air between the North and South Islands are also maintained.

Residents of the Cook Islands, Niue, Western Samoa, and the Tokelau Group are not included in the population statistics quoted throughout this section, except in the first table. Further information will be found in the section entitled “Dependencies.”

Separate statistics of the Maori population are given towards the end of this section.

INCREASE OF POPULATION.

The outstanding note of the history of population movement in New Zealand is that of unbroken growth. That it has not been invariably regular is well attested by the accompanying table, and by the fifty years' record shown in the later section of this edition entitled “Statistical Summary.”

Date of Census.Population (excluding Maoris).Numerical Increase.Percentage Increase.Average Annual Percentage Increase.
* See letterpress.
December, 185126,707   
185859,41332,706122.4612.14
1861*97,90438,49164.7918.26
1864171,00973,10574.6720.74
1867217,43646,42727.158.20
February, 1871254,92837,49217.245.11
March, 1874297,65442,72616.765.29
1878412,465114,81138.578.49
April, 1881487,88975,42418.295.60
March, 1886576,52488,63518.173.41
April, 1891624,47447,9508.321.60
1896701,10176,62712.272.33
March, 1901770,31269,2119.871.91
April, 1906886,000115,68815.022.79
19111,005,589119,58913.502.60
October, 19161,096,22890,6399.011.57
April, 19211,214,677118,44910.812.31
19261,344,469129,79210.692.05
March, 19361,491,484147,01510.931.05

Note.—The census due to be taken in 1931 and proclaimed for 21st April of that year was abandoned owing to financial stringency.

Commencing with the 1926 census all half-caste European-Maoris were included with the Native population in lieu of the previous practice of treating as Europeans such half-castes as were living in European fashion, and as Maoris those half-castes who were living in Native fashion. The figures in the above table have been corrected from 1861 onwards, to accord with the present practice. Lack of data prevents adjustment for years prior to 1861. The increase from 1858 to 1861 is, therefore, very slightly understated.

The “European” population now looks in retrospect down a vista of well over one hundred years. At the opening of the nineteenth century there existed a more or less fluctuating population of perhaps one hundred; by 1839 it had swelled to a total of about a thousand whalers, sealers, traders, missionaries, adventurers, and settlers. Activities of the colonizing companies and societies in the “forties” brought rapid changes and swiftly rising numbers, to be enhanced in the “sixties” by the gold rushes of the period.

The most significant period is possibly that of the “seventies,” marked by a vigorous developmental policy of public works and assisted immigration. The record year 1874, which saw a rise in population of 46,000 (including 32,000 assisted immigrants), was, and still is, the high-water mark of population gains. Both 1874 and 1875 showed a ratio of growth far in advance of any level subsequently attained.

In the late “eighties” and early “nineties” came economic depression and, consequently, comparative stagnation in population. In the four “March” years 1887-88, 1888-89, 1890-91, and 1891-92, and also in 1927-28 emigrants exceeded immigrants, these being the only such occasions in the history of the country, until the recent depression, when departures exceeded arrivals in the six “March” years 1931-32 to 1936-37. The years 1937-38 and 1938-39 have both recorded excesses of arrivals over departures.

From the middle “nineties” rising world prices and the development of the frozen-meat trade brought a return of prosperity and moderate, but steady, increase of population. Development of manufacturing industries and the remarkable expansion of dairying provided an economic foundation for increasing numbers.

The average annual population increment during the ten years 1919-1928 exceeded 30,000, while for the next ten years the average per annum was a little over 15,000. Apart from the war years 1914-18, which were affected by movements of troops, the year 1934-35 showed the lowest absolute increase since 1891, and the lowest relative increase ever recorded. Some improvement, however, has been recorded during the last four years due to both natural increase and migration increase.

Up to the “seventies” New Zealand was dependent on migration for the greater portion of her increase of population, but since then natural increase—i.e., excess of births over deaths—has been the principal factor.

A table is appended showing for each five-yearly period from 1861 the excess of births over deaths and of immigration over emigration. Maoris are not included, nor, prior to 1921, are crews of vessels. Figures for years later than 1920 have not been adjusted consequent upon the censuses. While there thus exist discrepancies with total population increases given elsewhere, such discrepancies do not impair the use of the table.

Period.Excess of Births over Deaths.Excess of Arrivals over Departures.Total Increase.
Males.Females.Both Sexes.Males.Females.Both Sexes.Males.Females.Both Sexes.

* Decrease, migration figures.

†Departure and return of troops of Expeditionary Force not included in migration figures.

1861-657,6258,98516,61063,28529,88493,16970,91038,869109,779
1866-7015,66317,77933,44211,1679,36920,53626,83027,14853,978
1871-7519,40921,12940,53846,50135,44581,94665,91056,574122,484
1876-8030,14332,80862,95131,87022,91754,78762,01355,725117,738
1881-8532,36235,04667,40815,95813,00128,95948,32048,04796,367
1886-9030,78133,54464,325-4,911*-3,791*-8,702*25,87029,75355,623
1891-9527,25530,63057,8859,9175,40315,32037,17236,03373,205
1896-190028,09731,43759,5347,3203,31810,63835,41734,75570,172
1901-0532,51536,22368,73831,22314,22345,44663,73850,446114,184
1906-1038,68143,06781,74825,45415,51240,96664,13558,579122,714
1911-1542,32346,68289,00517,65617,90535,56159,97964,587124,566
1916-2035,24841,35976,6076,9797,87514,85442,22749,23491,461
1921-2541,87644,86886,74426,73223,25649,98868,60868,124136,782
1926-3036,88640,45677,34214,7589,86924,62751,64450,325101,969
1931-3530,71533,23763,952-5,256*-4,662*-9,918*25,45928,57554,034
19365,4586,32311,781972-245*7276,4306,07812,508
19375,7306,62712,3571,8415402,3817,5717,16714,738
19385,6816,81412,4951,8184082,2267,4997,22214,721
Totals, 1861-1938466,448517,014983,462303,284200,227503,511769,732717,2411,486,973

The table shows clearly the irregularity of the migration increase and the comparative steadiness of the natural increase. With a stable birth-rate the natural increase would show mounting numbers, whereas actually the peak occurred in 1911-15 and the shrinking birth-rate has reduced numbers accruing from this source.

TREND OF POPULATION.

The trend of population movement in past decades has been in the direction of a decline in the rate of population increase, the decline quickening in recent years. There appears no indication at present of any radical alteration in the trend, and it has become of the greatest moment to consider, in general terms at least, what a continuance of this trend would mean. Baldly stated, it implies that New Zealand is facing at only a few years' distance the possibility of a stationary, and even of a declining, population. Remarks under this head apply, it should be observed, to population other than Maori.

This prospect would present entirely novel features to New Zealand, where unbroken growth has been recorded in every year from the settlement of 1840. There have been, it is true, variations in the rate of increase—for example, from the high levels of the gold rushes in the “sixties” and the assisted immigration and public-works measures of the “seventies” to the lower strata reached in the depression-caused outflow of 1888-91—yet the numbers of the population at the end of the year have always been some thousands, at least, in excess of those at the year's beginning.

It is inevitable that much of the economy of New Zealand has been planned on the assumption of steadily increasing numbers, and it is unnecessary to indicate the vast and widespread effect of the removal of the “safety-valve” which continued growth affords. A secondary yet highly important factor is the redistribution of the population in major age divisions.

Apart from the question of annexation of territory, or alteration of nationality, or other laws affecting the determination of population, there are only two sources from which increase in the population of the State is possible—viz., excess of births over deaths (natural increase) and excess of overseas arrivals over departures (net migration increase). Except in the earliest stages of a country's development, or in exceptional circumstances, the former is naturally the more important source. It is also, for numerous reasons, the more desirable source. Since 1875, three-fourths of the increase in New Zealand's population (other than Maori) has come from excess of births over deaths, and one-fourth from the net migration increase.

The natural-increase ratio was formerly unusually high in New Zealand, the annual average, for instance, reaching 29.41 per 1,000 of mean population in the quinquennium 1876-80 (see subsection relating to “Births”). Comparison with the 1936 figure of 7.89 per 1,000 and the 1937 and 1938 figures of 8.21 and 8.22 respectively per 1,000 is sufficiently striking. The erstwhile favourable ratio of natural increase in New Zealand was due partly to its exceptionally low death-rate, which was for very many years the lowest in the world. It is out of the question to expect further considerable falls in the death-rate; in fact, with the less favourable age-constitution of the population a rise must be envisaged. In this respect it is interesting to note that successive increases in the death-rate have been recorded since 1935.

The nominal natural-increase ratio of the past year (8.22 per 1,000 of mean population in 1938) gives the impression of a still substantial margin of increase in population. While this is correct in one sense, it yet obscures the more important aspect, which is that the proportions at reproductive ages are not being maintained. Based on expectation-of-life figures calculated for 1931, an “equilibrium” birth-rate of over 15 per 1,000 of mean population is required to maintain even a stationary population, and should the death-rate increase a higher birth-rate would be necessary. It is clear that even the nominal margin of increase is precariously low, and will vanish in a few years if the present trend continues.

Calculations by the Kuczynski technique, using the female population and female births of the year 1936, give a gross reproductive rate of 1.044, which on the basis of a life-table compiled for the year 1931, reduces to a net reproduction rate of 0.967. A net reproduction rate of below 1.000 implies that the population is failing to reproduce itself at a rate sufficient to preserve even stationary numbers, apart from the effects of external migration. A time-lag, of course, operates to cause an interval to elapse before numbers actually fall. However, these rates furnish an indication of what is about to occur. For various reasons they are not and cannot be exact measures, but they do offer very close and reliable approximations.

The improvement in the birth-rate for the last three years affords justification for a rather more optimistic view. For 1938 the gross reproduction rate was 1.106 and the net rate 1.025. The degree of improvement is little more than sufficient to maintain, roughly speaking, a stationary population; a definite and marked continuation of this improvement is necessary before the natural-increase ratio is satisfactory for a population in circumstances such as those of New Zealand.

Should the birth-rate of future years reach and maintain higher levels, population growth is assured, but even if this takes place the effects of the low increase ratio of the more immediate past will remain for many years. Two examples will serve as illustrations. The 1936 census showed that (still omitting Maoris) the population as a whole increased since 1926 by 147,000, but there were actually over 22,000 fewer children under 10 years of age in 1936 than there were in 1926. Again, in 1936 there were 134,000 persons aged 20-24 years, of whom the vast bulk were employed in gainful pursuits. But in twenty years' time they will be replaced by the group aged under 5 years in 1936. This latter group numbered only 117,000, and before they reach maturity mortality will have exacted its toll. In short, there will be at least 20,000 fewer persons aged 20-24 years available for gainful pursuits than there are now. The picture should require no further elaboration. Reflection will show that the changing age structure will react on the social economy in very many ways.

In the past the population of New Zealand has been derived almost wholly from the British Isles, whether directly or indirectly. It has, however, become clear that this source of recruitment of additional population—upon anything over a small scale—may within a few years be no longer available. In Britain, as in New Zealand and, indeed, in many other countries, the rate of growth of population has slackened, and, unless some drastic changes in migration occur, a declining population is imminent. Statisticians agree that, subject to certain qualifications, the population of England and Wales is now almost at its peak and must decline. One authority* places the population of England and Wales in 1976 as 28,500,000 (it is now 41,000,000); another has placed the 1976 figure several millions in excess of the former estimate. These estimates are admittedly subject to the maintenance of certain conditions, and long-term forecasts of population indeed serve only limited purposes. That the population of England, however, will decline in the near future, possibly to a considerable extent, seems inevitable. The consequences to New Zealand, both from the viewpoint of a failure as a recruiting source of population (for migration from England is probably unlikely to receive encouragement if the population falls) and from that of declining consumption by the principal export customer of New Zealand, are sufficiently obvious in their more immediate implications.

SEX PROPORTIONS.

The following table is interesting as showing the early excess of males and the gradual equalization of the sexes in New Zealand. The figures quoted are exclusive of Maoris, and have not been adjusted as has the second table in this section.

Census Year.Males.Females.Females to 1,000 Males.Census Year.Males.Females.Females to 1,000 Males.
186161,06237,9596221,911531,910476,558896
1871150,356106,0377051,916551,775547,674993
1881269,605220,3288171,921623,243595,670956
1891332,877293,7818831,926686,384658,085959
1901405,992366,7279031,936756,226735,258972

The preponderance of males in the early years of New Zealand was doubtless due to the fact that the difficulties of pioneering and the remoteness of the country from Europe were such as to deter female immigration to a greater extent than male. This was accentuated by the character of the early industries. Gold-mining and coal-mining, for instance, would attract large numbers of men but few women. The effect of this early preponderance of males no doubt still exists, but in an ever-diminishing degree, its gradual elimination being effected by the passing of the earlier settlers.

* Dr. G. Leybourne.

† Dr. E. C. Snow.

Of the two sources from which the Dominion's population has been recruited—viz., migration and natural increase—the effect of the former has hitherto been to give in the aggregate a considerable preponderance of males, and of the latter to give a regular preponderance of females. In the period 1921-38 the gain through external migration provided 11,700 more males than females; and in the same period natural increase was responsible for 12,000 more females than males. The surplus of males at present, exclusive of the Native population, is 21,926.

INTERCENSAL RECORDS.

As already noted, the intercensal statements of total Dominion population, prepared from the records of vital statistics and of external migration, have been by virtue of the favourable position of the Dominion in this respect relatively accurate, and the 1936 census results have afforded a further demonstration of this. The same degree of accuracy does not persist, however, for Maori and European elements. Results for the censuses of 1921 and 1926 suggested that numbers of Maori-European children of at least half Maori blood have been counted in birth statistics as Europeans. In consequence, the Maori population had been slightly understated, and the European population overstated to a corresponding degree. The 1936 census results afforded further support to this view. Accordingly the statements of population at intercensal dates, 1921-36, have been revised and the four tables following give revised figures. For fuller details of revised statements (including the annual estimates of population of towns, provincial districts, &c.) reference should be made to the 1936-37 edition of the annual “Statistical Report on Population and Buildings.”

Year ended 31st March,Population (excluding Maoris) at End of Year.Increase during Year.Mean Population for Year.
Males.Females.Totals.Numerical.Per Cent.
1929715,238688,3791,403,61715,8131.141,393,606
1930723,058696,7281,419,78616,1691.151,409,631
1931733,565706,9411,440,50620,7201.461,428,127
1932739,378713,1011,452,47911,9730.831,445,804
1933743,474719,2231,462,69710,2180.701,455,943
1934747,614724,8281,472,4429,7450.651,466,149
1935751,641729,3731,481,0148,5720.581,475,487
1936756,417735,1431,491,56010,5460.711,484,106
1937762,111740,6261,502,73711,1770.751,495,335
1938769,394748,3181,517,71214,9751.001,508,542
1939779,095757,1691,536,26418,5521.221,523,796

As population figures for the calendar year are in demand for numerous purposes, figures are given also for years ending 31st December.

Calendar Year.Population (excluding Maoris) at End of Year.Increase during Year.Mean Population for Year.
Males.Females.Totals.Numerical.Per Cent.
1928713,608686,6321,400,24015,6231.131,389,676
1929721,891695,3431,417,23416,9941.211,405,485
1930731,109705,0021,436,11118,8771.331,423,178
1931737,889712,2821,450,17114,0600.981,442,550
1932742,116717,8901,460,0069,8350.681,453,436
1933746,330723,6781,470,00810,0020.691,463,680
1934750,745728,2441,478,9898,9810.611,473,293
1935754,168733,7371,487,9058,9160.601,481,674
1936760,667739,9911,500,65812,7530.861,492,344
1937768,238747,1581,515,39614,7380.981,504,826
1938775,976754,3901,530,36614,9700.991,519,606

The figures given in the two preceding tables show the population exclusive of Maoris. The following table shows the population inclusive of Maoris:—

Population (including Maoris) at End of Year.Mean Population for Year.
Males.Females.Totals.
Years ended 31st March.
1929750,446720,6641,471,1101,460,363
1930759,259729,9441,489,2031,478,027
1931770,611741,0891,511,7001,498,416
1932777,369748,1761,525,5451,517,940
1933782,622755,4061,538,0281,530,119
1934787,965762,1601,550,1251,542,651
1935793,221767,7711,560,9921,554,297
1936799,303774,6241,573,9271,565,263
1937806,011781,2001,587,2111,578,757
1938814,456790,0231,604,4791,594,275
1939825,063799,6511,624,7141,611,362
Years ended 31st December.
1928748,641718,7291,467,3701,456,075
1929757,830728,3041,486,1341,473,419
1930767,910738,8991,506,8091,493,019
1931775,648747,1141,522,7621,514,215
1932780,934753,8011,534,7351,527,062
1933786,374760,7501,547,1241,539,590
1934791,997766,3761,558,3731,551,532
1935796,732772,9571,569,6891,562,233
1936804,304780,3131,584,6171,575,231
1937813,104788,6541,601,7581,589,972
1938821,668796,6451,618,3131,606,763

EXTERNAL MIGRATION.

Statistics of external migration have been recorded in New Zealand since 1860. Since 1st April, 1921, they have been compiled from individual statements obtained from each person entering or leaving the Dominion.

Commencing with the year 1933-34, the year ending 31st March has been adopted as a standard for the statistical expression of external migration in place of the calendar year formerly in use. The principal reason for the change is the avoidance of the partition of a season's migration movement into two statistical years as was inevitable with the calendar year ending in the middle of the summer flow of tourists and immigrants.

Including crews of vessels, 109,680 persons from overseas arrived in New Zealand during the year ended 31st March, 1939, which, compared with 1937-38, shows an increase of 6,308. During the same period 104,609 persons departed. This figure, compared with the corresponding one for 1937-38, shows an increase of 3,704.

In addition to the above, there were also 13,801 “through” passengers who called at a port of New Zealand en route to their destination, and 8,708 “tourists on cruising liners.”

Migration in 1938-39, for the second time since 1930-31, recorded an excess of arrivals over departures (5,071) as compared with an excess of 2,467 during 1937-38.

The numbers of arrivals and departures during the last ten years are given in the table following. Crews of vessels, through passengers, and tourists on cruising liners have not been taken into account in this table.

Year ended 31st March,Arrivals.Departures.Excess of Arrivals over Departures.
Males.Females.Totals.Males.Females.Totals.
* Excess of departures.
193018,51515,32433,83916,80314,65131,4542,385
193116,71814,02330,74113,98011,65225,6325,109
19329,6968,19517,89111,8009,26321,063-3,172*
19339,7608,95318,71311,6639,64521,308-2,595*
193410,0459,64219,68711,40110,62122,022-2,335*
193512,65512,24624,90114,08013,97128,051-3,150*
193613,37513,56126,93613,82614,22428,050-1,114*
193716,04115,62931,67015,54716,47632,023-353*
193819,29219,44638,73817,87018,48236,3522,386
193921,56921,07942,64818,21519,47037,6854,963

The excess of “crew” arrivals over “crew” departures, neither of which is included above, normally provides an annual increment of several hundred to the population of New Zealand.

The monthly figures for 1937-38 and 1938-39 are as follows, the excess of passenger arrivals or of passenger departures, exclusive of through passengers and tourists on cruising liners, for each month being also shown:—

Month.Arrivals.Departures.Excess of Arrivals.Excess of Departures.
1937-38.1938-39.1937-38.1938-39.1937-38.1938-39.1937-38.1938-39.
April2,6002,7293,7194,621....1,1191,892
May2,2042,9633,5323,985....1,3281,022
June1,6411,9762,4152,617....774641
July2,2162,7332,1382,78778....54
August2,7112,9682,5542,466157502....
September3,0792,6552,1242,328955327....
October3,3024,1302,1861,8041,1162,326....
November4,2534,2721,8152,1262,4382,146....
December4,7404,5572,8863,1631,8541,394....
January4,0345,6883,6933,4453412,243....
February4,3364,1193,4453,912891207....
March3,6223,8585,8454,431....2,223573
  Totals38,73842,64836,35237,6852,3864,963....

In general, arrivals exceed departures in the spring and summer months, while the contrary holds for the autumn and winter periods.

CLASSES OF ARRIVALS AND DEPARTURES.

The following table gives an analysis of the various classes of passenger arrivals during the last five years. It is, therefore, exclusive of crews of vessels, a source from which comes a small increment of population. The average annual excess of crew arrivals over departures in the five years 1934-35 to 1938-39 was 36 and in the preceding five years 777.

In these tables, as has already been noted, “through” passengers (13,801 in 1938-39 and 12,204 in 1937-38) and tourists on cruising liners (8,708 in 1938-39 and 6,654 in 1937-38) have not been included.

1934-35.1935-36.1936-37.1937-38.1938-39.
Immigrants intending permanent residence1,5791,9152,8074,3416,493
New Zealand residents returning from abroad12,09112,19414,02717,67219,259
Tourists8,3789,92711,34812,88013,054
Persons on business1,1371,2671,3951,5531,805
Persons visiting the Dominion in connection with entertainments, sports, &c.392552569872730
Others (officials, &c., of other countries)371305566404328
Persons in transit895755908938906
No information available5821507873
    Totals24,90126,93631,67038,73842,648

The New Zealand Government suspended from early in 1927 the major portion of its scheme of granting assisted passages to migrants from the British Isles, and this is partly responsible for the diminished number of immigrants, since governmentally assisted immigrants in years preceding 1927 formed more than half of the total. There were 13 assisted immigrants in 1938-39, as against 10 in 1937-38 and 11,239 in 1926-27; while the numbers of those who migrated to New Zealand without State assistance amounted to 6,480, 4,331, and 6,898 for the years 1938-39, 1937-38, and 1926-27 respectively.

The succeeding table gives an analysis of passenger departures:—

1934-35.1935-36.1936-37.1937-38.1938-39.
New Zealand residents departing permanently3,5924,3313,9723,9973,838
New Zealand residents departing temporarily13,53111,63044,14816,38317,544
Visitors to the Dominion departing10,88412,04613,85415,91416,215
No information available4443495888
Totals28,05128,05032,02336,35237,685

AGES.

The following table gives the age-distribution of immigrants and emigrants for the twelve months ended 31st March, 1939:—

Age, in Years.Permanent Arrivals.Permanent Departures.Excess of Arrivals over Departures.
Males.Females.Totals.Males.Females.Totals.
* Excess of departures over arrivals.
0-14548435983255225480503
15-249774471,424621367988436
25-341,2757692,0445245961,120924
35-446644411,105247315562543
45-59414268682187256443239
60 or over9612822493145238-14*
Unspecified20113143724
Totals3,9942,4996,4931,9311,9073,8382,655

ORIGIN AND DESTINATION.

Of the 6,493 new immigrants during the year 1938-39 intending to settle in the Dominion, the vast majority (5,742, or 88 per cent.) came from British countries, mainly from the British Isles, Australia, Canada, India, Fiji, and the Union of South Africa. The majority of immigrants from foreign countries came from Germany, Yugoslavia, China, and the United States of America.

The following table shows for each of the last five years the principal countries whence arrived new immigrants who intended permanent residence in the Dominion:—

Country of Last Permanent Residence.1934-35.1935-36.1936-37.1937-38.1938-39.
British Isles4916538921,5132,020
India4573103107139
Union of South Africa510242832
Canada577189158257
Australia7077851,1821,7873,021
Other British countries93128178204273
Poland51682613
Germany (including Austria)1894172221
Switzerland256711
Italy2219122637
Yugoslavia273683131178
China194076118145
United States of America5125495264
Other foreign countries and unspecified37456411282
    Totals1,5791,9152,8074,3416,493

A noticeable feature of the above table is the large increase shown for Germany during 1938-39. In fact, during recent years there has been a considerable increase in the numbers of immigrants intending residence from foreign European countries. The following summary shows the numbers for the last five years:—

Year ending 31st March,Males.Females.Totals.
1,935435295
1,9364363106
1,93710278180
1,938193132325
1,939265241506

Of the New Zealand residents who left the Dominion permanently, the great majority (94 per cent.) went to British countries. Foreign countries, other than China and the United States of America, recorded only very small figures.

NATIONALITIES.

Of the total of 6,493 new immigrants intending permanent residence who arrived during 1938-39, 746 (males, 416; females, 330) were of foreign nationality. During the last three years the number of alien immigrants has grown considerably. In 1938-39 there were 746; in 1937-38, 528; and in 1936-37, 375; the annual average for the five years preceding was only 124. The chief nationalities represented among alien immigrants arriving in 1938-39 were as follows (total figures for the five years preceding being given in parentheses): United States, 43 (152); Yugoslavia, 173 (306); Italy, 29 (86); China, 127 (214); Germany, 239 (197); Poland, 27 (82); and Greece, 5 (63).

The number of foreign nationals among New Zealand residents departing permanently during the year ended March, 1939, was 139 (104 males and 35 females), or 3.6 per cent. of the total.

A noticeable feature in regard to foreign nationals is the relative disparity of the sexes as between arrivals and departures. Of the arrivals 56 per cent. were males and 44 per cent. females, whereas of the departures 75 per cent. were males and 25 per cent. females.

RACE ALIENS.

Although race aliens comprise comparatively small proportions of the total arrivals and departures, they are by no means unimportant. The principal race aliens with whom New Zealand is concerned are Chinese, Indians, and Syrians, and the first two are shown separately from other race aliens. The definition of the term “race alien,” as used in connection with these statistics, is “a person of other than European race.”

Permanent arrivals of race aliens in 1938-39 comprised 110 Indians, 130 Chinese, and 72 of other races. Departures were 69 Indians, 73 Chinese, and 14 of other races. In the last ten years permanent arrivals have aggregated 367 Chinese, 466 Indians, and 291 others; and the permanent departures 547 Chinese, 193 Indians, and 183 others.

It should be noted that the figures quoted above include all persons of mixed European and race alien origin.

The total arrivals and departures of race aliens during each of the last ten years were as follows:—

Year ending 31st March,Arrivals.Departures.
Chinese.Indians.Others.Totals.Chinese.Indians.Others.Totals.
1930458191265914521167219907
1931375162247784542157255954
1932327117133577461140142743
193324081148469340112150602
193422210715248134992132573
1935273130140543228104153485
1936309158283750218109256583
1937343178298819218111258587
19384731723791,024265171317753
19393112554561,022160199330689

At the census of 24th March, 1936, the numbers of the principal alien races in New Zealand (inclusive of persons of mixed blood) were: Chinese, 2,899; Syrian, 1,235; and Indian, 1,157. The corresponding figures for the 1926 census were 3,374, 951, and 978 respectively.

ASSISTED IMMIGRATION.

The general scheme of Governmental assistance to immigrants, which has been restricted in varying degrees since May, 1927, is based on nomination by a person who is already domiciled in New Zealand, and who undertakes to find employment for his nominee and guarantees that such nominee will reside at least five years in New Zealand. Further details will be found in the 1931 or preceding issues of the Year-Book.

Various systems of assisted immigration have been in force since 1871, with the exception of the period 1892 to 1903 (inclusive). The numbers of assisted immigrants during each of the last ten calendar years were as follows:—

Year.Number.Year.Number.
19291,8781,9341
19301,4051,935Nil
19314891,9369
1932771,93711
193391,93811

The total to 31st December, 1938, was 226,260, of which number all came from the United Kingdom with the exception of 3,909 from the Continent of Europe, spread over the five years 1874 to 1878 (inclusive).

In the following analysis of migration increase the figures given are annual averages for the periods quoted:—

Period.Governmentally assisted Immigrants.Immigrants not governmentally assisted.Total Net Migration Increase.
1909-133,479 7,095
1920-247,5496,2009,683
1925-295,8085,7086,571
1930-343962,541-563
1935-3883,653744

PASSPORTS.

PERMISSION TO ENTER NEW ZEALAND.

With certain specified exceptions, no person over the age of sixteen years may land in New Zealand unless in possession of a passport or some other document satisfactorily establishing his or her nationality and identity. Exemption from this requirement (which is additional to the requirements of the Immigration Restriction and Undesirable Immigrants Exclusion Acts) may be granted by the Minister of Internal Affairs.

In the case of a person coming from a foreign country the passport must, with certain exceptions, have been issued or viséd by the British Ambassador or a British Consul in that country, and in the case of a person coming from any part of the British dominions the issue or visé must have been by some public official duly authorized in that behalf.

Certain exceptions are made with respect to persons coming to New Zealand from the Cook Islands and Western Samoa. In their case the only requirement is the possession of a permit to visit New Zealand granted by the Resident Commissioner of the Cook Islands or the Administrator of Samoa, as the case may be. The regulations, further, do not apply to a British subject arriving in New Zealand as the master or a member of the crew of the vessel in which he arrives, or to a British subject arriving from the Commonwealth of Australia.

DEPARTURE FROM NEW ZEALAND.

With the exception of British subjects travelling to the Commonwealth of Australia, the Cook Islands, or Western Samoa, all persons travelling to places beyond the seas are required to be in possession of a passport or similar document to facilitate landing thereat. British passports are issued, under the direction of His Excellency the Governor-General, by the Department of Internal Affairs. They are valid for five years and may be renewed for any number of years not exceeding five. Subject to the Immigration Regulations in force in the various countries of the Empire, they are valid for travelling anywhere within the British Empire, including territories under British protection or mandate, but not Palestine or Transjordan, for which the passport must be specially endorsed, or the Aden Protectorate, for which both an endorsement and a visa are required.

IMMIGRATION RESTRICTION.

The legislation respecting the restriction of immigration into New Zealand is contained in the Immigration Restriction Act, 1908, and its amendments, and the Undesirable Immigrants Exclusion Act, 1919. It is administered by the Customs Department.

Subject to certain exemptions, the following classes of persons are prohibited from landing in New Zealand:—

  1. Persons not of British birth and parentage, unless in possession of permits issued by the Customs Department. (Note.—A person is not deemed to be of British birth and parentage by reason that he or his parents or either of them is a naturalized British subject, or by reason that he is an aboriginal Native or the descendant of an aboriginal Native of any dominion (other than New Zealand), colony, possession, or protectorate of His Majesty.)

  2. Idiots or insane persons.

  3. Persons suffering from contagious diseases which are loathsome or dangerous.

  4. Persons arriving in New Zealand within two years after the termination of a period of imprisonment for a serious offence.

  5. Persons who are considered by the Attorney-General to be disaffected or disloyal, or of such a character that their presence in New Zealand would be injurious to the peace, order, and good government of the Dominion.

  6. Aliens of the age of fifteen years or over who refuse or neglect to take an oath (or make an affirmation) of obedience to the laws of New Zealand.

Provision is made in the law to permit persons covered by clause (1) above to pay temporary visits to New Zealand for the purposes of business, pleasure, or health. Temporary permits are normally restricted to a period not exceeding six months, but may be extended if the proper authorities consider that the circumstances warrant such action. A deposit of £10 is required in respect of such temporary permits, and is returned on the departure of the visitor if the conditions of the temporary permit are complied with. The Collector of Customs may also require, if he so decides, a deed to be entered into by some person or persons resident in New Zealand approved by him guaranteeing to pay all expenses that may be incurred by the Crown or any public body for the visitor's maintenance, relief, arrest, or detention in New Zealand or his deportation therefrom.

Provision is also made whereby, under certain conditions, students may be allowed to enter New Zealand temporarily.

RESTRICTED IMMIGRANTS.

When persons who are lunatic, idiotic, deaf, dumb, blind, or infirm arrive in New Zealand and are likely to become a charge upon the public or upon any public or charitable institution, the master, owner, or charterer of the ship by which such persons come to New Zealand may be called on to enter into a bond for £100 for each such person, guaranteeing payment of any expenses which may be incurred for his support and maintenance by or in any such institution within a period of five years.

DECLARATION BY PERSONS ARRIVING IN NEW ZEALAND.

Every person of and over the age of fifteen years who lands in New Zealand must, unless exempted by the Minister of Customs, make and deliver to an officer of Customs a declaration giving the following particulars: Name, age, nationality, race or people to which he belongs, residence, particulars of children under fifteen years of age arriving with him, and (if not domiciled in New Zealand) occupation, and places of birth of himself and father.

NATIONALITY AND NATURALIZATION.

The British Nationality and Status of Aliens (in New Zealand) Act, 1928, which was reserved for Royal assent, came into force on the 1st July, 1929. This Act made important alterations in the naturalization law of New Zealand, and made provision for the adoption of Part II of the British Nationality and Status of Aliens Act, 1914 (Imperial). A fairly detailed account of its effects will be found on pp. 92-95 of the 1931 issue of the Year-Book.

The British Nationality and Status of Aliens (in New Zealand) Amendment Act, 1934-35, was assented to on 26th March, 1935. This Act does two things: in the first place, it brings the New Zealand law into conformity with the law of the United Kingdom by the formal adoption as part of the law of New Zealand of section 10 of the Imperial Act of 1914 (as re-enacted by the British Nationality and Status of Aliens Act, 1933).

The provisions of section 10, as re-enacted in 1933, and containing modifications incidental to its application in New Zealand, are quoted:—

  • "10. (1) Subject to the provisions of this section, the wife of a British subject shall be deemed to be a British subject, and the wife of an alien shall be deemed to be an alien.

  • "(2) Where a woman has (whether before or after the commencement of this Act) married an alien, and was at the time of her marriage a British subject, she shall not, by reason only of her marriage, be deemed to have ceased to be a British subject unless, by reason of her marriage, she acquired the nationality of her husband.

  • "(3) Where a man has, during the continuance of his marriage, ceased (whether before or after the commencement of this Act) to be a British subject, his wife shall not, by reason only of that fact, be deemed to have ceased to be a British subject unless, by reason of the acquisition by her husband of a new nationality, she also acquired that nationality.

  • "(4) Where a man ceases, during the continuance of his marriage, to be a British subject and, by reason of his acquisition of a new nationality, his wife also acquires that nationality, she may, whether her marriage is still continuing or not, at any time within the period of twelve months from the date on which she so acquired that nationality, or at such later time as the Minister of Internal Affairs may in special circumstances allow, make a declaration that she desires to retain British nationality, and thereupon she shall be deemed to have remained a British subject.

  • "(5) Where, after the end of the year nineteen hundred and thirty-four, a certificate of naturalization is granted to an alien, his wife, if not already a British subject, shall not be deemed to be a British subject, unless, within the period of twelve months from the date of the certificate, or within such longer period as the Minister of Internal Affairs may in special circumstances allow, she makes a declaration that she desires to acquire British nationality.

  • “(6) Where an alien is a subject of a State at war with His Majesty, it shall be lawful for his wife, if she was at birth a British subject, to make a declaration that she desires to resume British nationality, and thereupon the Minister of Internal Affairs, if he is satisfied that it is desirable that she be permitted to do so, may grant her a certificate of naturalization.”

In the second place, the New Zealand Act referred to goes further than the Imperial Act. It allows to a woman who has lost her British nationality by reason of her marriage to an alien, the right while she remains in New Zealand to claim the same privileges as if she had remained a British subject. The legislation does not seek to alter the fact that such a woman has in law ceased to be a British subject: it merely says that upon making the prescribed declaration she is, while she remains in New Zealand, entitled to all the rights and privileges and is subject to all the duties and obligations of a natural-born British subject.

During 1938, 22 women took advantage of section 3 of the Act and made the necessary declaration. The nationalities of the husbands were as follows: Danish, 4; Swedish, Yugoslav, and United States of America, 3 each; German and Swiss, 2 each; and Norwegian, Belgian, Italian, Greek, and Chinese, 1 each.

During the year 1938 certificates of naturalization in New Zealand were granted to 386 persons of the undermentioned birthplaces, as compared with 218 in the previous year. In addition, 73 children were included in the certificates of their parents, and certificates under the 1928 legislation were issued to 5 males (and 1 child, in addition, on parent's certificate) previously naturalized in New Zealand. The birthplaces of these were Finland, Russia, Yugoslavia (and 1 child), Rumania, and Syria, 1 each.

Country of Birth.Males.Females.Totals.Children.*
* Children included in certificate of parent; additional to preceding figures.
Russia8..81
Norway17118..
Finland7..71
Sweden18119..
England..331
Estonia1..1..
Denmark372392
Latvia235..
Lithuania2..2..
Poland8..83
Germany (including Austria)233262
Western Samoa2247
Danzig1..1..
Netherlands3..3..
Belgium3..3..
France617..
Rumania5..51
Hungary3..3..
Switzerland112..
Italy281299
Yugoslavia151..15141
Spain1..1 
Portugal1..1..
Greece16..16..
Syria5383
Manchukuo2..2..
Society Islands..11..
Australia..22..
Tonga2..2..
New Zealand112..
United States6172
    Totals3602638673

There were also 131 cases in which declarations were made by wives of naturalized British subjects who desired to acquire British nationality.

In the ten years 1929-38, 1,424 subjects or citizens of other nations obtained certificates of naturalization in New Zealand. The following table exhibits the principal countries involved:—

Country of Birth.No.
Yugoslavia422
Italy151
Denmark136
Germany (including Austria)116
Sweden88
Norway76
Poland49
Russia49
United States42
Greece40
Finland33
France31
Syria30
Switzerland27
Netherlands14
Latvia12
Belgium11
Western Samoa10
Hungary9
Other countries78
Total1,424

DISTRIBUTION OF POPULATION.

NORTH AND SOUTH ISLANDS.

In 1858 the North Island had a larger population than the South, but this position was reversed at the succeeding enumeration and retained until 1901. In that year the North Island was found to have slightly the larger total and since then has steadily increased its lead. The Maori War which broke out in 1860 retarded settlement in the North, while a large area of land reserved for the Maoris was for many years a serious hindrance to the development, by Europeans, of this portion of the Dominion. The South Island was practically free from Maori troubles, and settlement was more rapid, though much of the land was disposed of in large areas. The discovery of gold in Otago in 1861 and on the West Coast in 1864 attracted to these localities considerable numbers of miners.

Census Year.Population (excluding Maoris).Proportions per Cent.
North Island.South Island.*Totals.North Island.South Island.*
* Including Stewart Island and Chatham Islands.
1,881193,047296,886489,93339.4060.60
1,886250,482328,000578,48243.3056.70
1,891281,474345,184626,65844.9255.08
1,896340,638362,722703,36048.4351.57
1,901390,579382,140772,71950.5549.45
1,906476,737411,841888,57853.6546.35
1,911563,733444,7351,008,46855.9044.10
1,916651,072448,3771,099,44959.2240.78
1,921741,255477,6581,218,91360.8139.19
1,926831,813512,6561,344,46961.8738.13
1,936938,939552,5451,491,48462.9537.05

The natural increase of European population (i.e., excess of births over deaths) for the South Island during the 1926-36 intercensal period was 47,181, but the total net increase was only 39,889. For the North Island the natural increase was 92,130, and the total net increase 107,126. Allowing for the fortuitous presence in the South Island in 1926 of 2,000 or 3,000 North Island residents visiting the Dunedin Exhibition the margin is reduced, but the existence of a northward drift of population is still evident.

INTERNAL MIGRATION.

Statistics of passenger migration between the North and South Islands are compiled from returns supplied by Collectors of Customs and are of use in the compilation of population estimates. The following table shows inter-Island migration for ten years ending 31st March. These figures have not been adjusted to give effect to corrections indicated by the 1936 census.

Year.Arrivals in North Island.Arrivals in South Island.Excess in favour of North Island.
1929-30147,490143,8573,633
1930-31135,730135,318412
1931-32110,295108,9211,374
1932-33100,57399,823750
1933-34109,544108,754790
1934-35121,665118,0223,643
1935-36128,352125,9352,417
1936-37144,832141,1013,731
1937-38157,589155,4172,172
1938-39168,046166,7771,269

Of the 168,046 passengers from the South Island in 1938-39, 168,038 landed at Wellington, including 132,482 from Lyttelton, 20,410 from Nelson, and 15,144 from Picton.

The 166,777 passengers who landed in the South Island for the same period included 129,187 at Lyttelton, 21,310 at Nelson, 16,243 at Picton, and 37 at Dunedin, the passengers, with the exception of 2 from Onehunga and 5 from Auckland, all arriving from Wellington. One-day inter-Island excursion (return) trips are not included in the above figures.

In addition to the sea-borne passengers just mentioned, a considerable number of persons were carried by two air services operating between the North and South Islands. For the year ended 31st March, 1939, the arrivals in the North Island were 13,710 and in the South Island 13,020. The corresponding figures for the year ended 31st March, 1938, were 11,892 and 11,206 respectively. A certain number of passengers are carried by private aeroplanes or by aeroplanes belonging to aero clubs, but particulars of these are not available.

PROVINCIAL DISTRICTS.

The approximate areas and the populations, inclusive of Maoris, of the various provincial districts are as follows:—

Provincial District.Area (Square Miles).Census Population.Estimated Population as at 1st April, 1939.
1901.1921.1926.1936.
* Including 196 Maori wives of Europeans, provincial district not specified.
Auckland25,400204,899406,899469,458546,970575,364
Hawke's Bay4,26039,60465,08070,35376,96879,400
Taranaki3,75040,46565,24471,84877,65279,800
Wellington10,870146,326254,695281,020316,446329,500
Marlborough4,22013,74618,28918,79319,14919,800
Nelson10,87038,06747,73450,87859,48159,200
Westland4,88014,56614,25315,26018,67619,300
Canterbury13,940144,195199,969215,079234,399237,350
Otago—      
  Otago portion14,050125,782137,062149,921151,213151,400
  Southland portion11,17048,01662,43965,52972,85673,600
    Totals103,410815,862*1,271,6641,408,1391,573,8101,624,714

The foregoing table illustrates the wide disparities in the size of the provincial districts, whether measured by area or by population. The 1926 to 1936 growth of population is given below both in absolute numbers and as a percentage of the 1926 totals. The figures include Maoris.

 Numbers.Per Cent.
Auckland77,51216.51
Hawke's Bay6,6159.40
Taranaki5,8048.08
Wellington35,42612.61
Marlborough3561.89
Nelson8,60316.91
Westland3,41622.39
Canterbury19,3208.98
Otago—  
Otago1,2920.86
Southland7,32711.18
Dominion165,67111.77

Between 1906 and 1926 Auckland's ratio of growth was higher than that of any other provincial district, and in the period reviewed above (1926-36) it is surpassed only by two relatively small districts. The Auckland increase, between 1926 and 1936, absorbed 47 per cent. of the total increase of population in the Dominion. Of its total of 78,000, 12,000 was credited to North Auckland, 25,000 to Auckland City with its suburbs and neighbouring counties, 20,000 to the Waikato and southern districts, 8,000 to the Thames-Tauranga area, 10,000 to the Taupo - Bay of Plenty area, and 3,000 to the East Coast.

In the Hawke's Bay Provincial District growth was more marked in the north (6,000) than in the south (1,000).

Northern Taranaki increased its population by 4,000, and the southern portion by 2,000, this giving a rather higher rate of increase to the north.

The percentage increase for Wellington was a little over the Dominion level, but was not evenly distributed. The total gain of 35,000 was derived mainly from the 30,000 increment to Wellington City with its suburbs and neighbouring counties. Manawatu-Horowhenua contributed 6,000 and Wairarapa-Bush under 1,000. Wanganui-Rangitikei nominally declined by over 1,000, although virtually the population was about stationary, since the 1926 figures were temporarily swelled by a Maori gathering Marlborough recorded a population almost stationary, as it did also at the preceding census. In the fifty years 1886-1936 the population of Marlborough has increased by only 60 per cent., which was considerably smaller than the increase for the Dominion as a whole.

To Nelson fell the second highest rate of growth of any provincial district between 1926 and 1936. Some part of this appears to be due to the revival of gold-mining, caused by the high price-level of gold. To a small extent the 1936 figures were swelled by fruit and hop pickers. Its gain of 9,000 was derived as follows: North, 6,000; west, 2,000; and cast, 1,000.

The smallest of the provincial districts, Westland, disclosed the greatest relative growth between 1926 and 1936, in part due to revived interest in gold-mining. In common with all gold-mining areas, Westland has experienced vicissitudes in population, and, in spite of the steady growth in recent years, had in 1936 a population only 16 per cent. greater than in 1886.

In Canterbury the major portion (15,000) of the decennial gain of 19,000 belonged to Christchurch City with its suburbs and the adjoining counties. North Canterbury increased by 1,000, central by 1,000, and south by 2,000.

Otago, as apart from Southland, showed an almost stationary population. In 1926, however, several thousand visitors to the Exhibition were included in the population, and with allowance for these the increase would rise to about 3 per cent. or 4 per cent. The 1926 Exhibition visitors affect only Dunedin City and environs, which showed a nominal decline of 3,000; whereas the Otago West and North area gained 4,000 (largely through mining operations), and Otago South remained stationary.

Southland was one of the three districts (the others were Westland and Nelson) to average a greater annual rate of growth 1926 to 1936 than in 1921 to 1926. The eastern portion increased by 6,000 and the western portion by 1,000.

URBAN AND RURAL POPULATION.

On 24th March, 1936, somewhat over one-third (38.5 per cent.) of the population of the Dominion (excluding Maoris) was included in the four principal urban areas—Auckland, Wellington, Christchurch, and Dunedin—and over one-half (51.7 per cent.) in these or in the ten secondary urban areas. In the following table urban population means the population in cities and boroughs, while rural population covers counties, all town districts, and extra-county islands. The continuance of urban drift is noticeable, but with a marked slackening in pace.

Census.Population.Per Cent.
Rural.Urban.Migratory.Rural.Urban.Migratory.
* Figures exclude military and internment camps.
Excluding Maoris—      
  1881292,036194,9812,91659.6139.800.59
  1886328,144245,6124,72656.7242.460.82
  1891352,991270,3433,30556.3343.140.53
  1896392,678307,2943,38155.8343.690.48
  1901418,746350,2023,76354.1945.320.49
  1906459,492424,6144,46751.7147.790.50
  1911497,858505,5985,00849.3750.130.50
  1910*501,956585,3063,46346.0253.660.32
  1921531,694681,9885,23143.6255.950.43
  1926552,344785,0407,08541.0858.390.53
  1936602,519884,2934,67240.4059.290.31
Including Maoris—      
  1926610,446790,5557,13843.3556.140.51
  1936677,087892,0244,69943.0256.680.30

Another conception of urban and rural population is presented in the next table, which covers the last seven censuses. Maoris are omitted, as data are not available over the whole period. The great bulk of Maoris inhabit rural communities. In the case of the larger centres there are numerous suburban boroughs and town districts; consequently, as regards the fourteen urban areas the centre has been taken as including all cities, boroughs, and town districts within the territory of the present urban area. In other instances the “centre” is a borough or town district.

Centres of1901.1906.1911.1916.1921.1926.1936.
Population.
1,000-2,49941,81447,00254,89565,70680,12084,79282,516
2,500-4,99933,47831,98237,19246,15956,48749,59451,779
5,000-9,99936,83450,45051,32644,83823,30632,07348,292
10,000-24,99910,63733,00562,71582,770128,984155,105172,885
25,000 or over214,098254,138302,943349,271401,710472,603531,588
  Totals, urban336,861416,577509,071588,744690,607794,167887,060
Rural432,095467,529494,389498,518523,075543,217599,752
  Grand totals (excluding migratory)768,956884,1061,003,4601,087,2621,213,6821,337,3841,486,812
Per Cent.
1,000-2,4995.445.325.476.046.606.345.55
2,500-4,9994.353.623.714.254.653.713.48
5,000-9,9994.795.715.114.131.922.403.25
10,000-24,9991.383.736.257.6110.6311.6011.63
25,000 or over27.8528.7430.1932.1233.1035.3335.75
  Totals, urban43.8147.1250.7354.1556.9059.3859.66
Rural56.1952.8849.2745.8543.1040.6240.34
  Grand totals (excluding migratory)100.00100.00100.00100.00100.00100.00100.00

The comparison is not an exact one, but is sufficiently accurate to indicate the general trend of urbanization. For instance, it is noticeable that in 1901 29 per cent. of the population were in towns of 10,000 population or over; by 1936 the proportion had become 47 per cent.

An important characteristic of the distribution of urban population in New Zealand is what may be termed its decentralization. In place of one great metropolis containing a huge proportion of the population, as in the case of the Australian States—e.g., Victoria, whose capital city (Melbourne), contains over 50 per cent. of the total population of the State—the more highly urbanized portion of the community is localized in four widely separated centres. These four centres have always existed more or less on the same plane, a fact which has played no small part in the development of the country. An interesting feature is the wide gap which has long existed between the four major centres and the next largest towns.

Urban and rural communities are not evenly distributed. The South Island, for example, contains proportionately more rural population than does the North Island.

New Zealand is not alone in experiencing the modern tendency towards urban aggregation: it is, in fact, occurring in almost all countries.

RECENT MOVEMENTS IN TOWNS.

Urban areas afford the best basis of comparison of population-growth in the case of the largest towns, since their boundaries are stable and, of greater significance, they include the suburbs as well as the central city or borough. The following table excludes Maoris—data being lacking in earlier years—but their numbers are too small to exercise any significant effect.

Urban Area.1911.1916.1921.1926.1936.
Auckland115,750133,712157,757192,223210,393
Wellington82,80095,235107,488121,527149,382
Christchurch87,40092,733105,670118,501132,282
Dunedin67,20068,71672,25585,09581,848
Hamilton5,7008,98013,79816,53819,373
Gisborne10,70012,66014,45014,78915,521
Napier13,00015,13117,18718,06618,443
Hastings8,75011,01812,99014,46017,715
New Plymouth8,6009,79512,64515,93118,194
Wanganui16,25019,51723,52326,12925,312
Palmerston North11,90014,00616,88519,70923,953
Nelson8,8759,96210,63211,75213,545
Timaru12,47513,71615,50716,82218,805
Invercargill15,70017,86219,21021,84925,682

URBAN AREAS.

The population of each of the fourteen urban areas (cities or boroughs, plus their suburbs), as estimated for 1st April, 1939, was as follows:—

URBAN AREAS.—ESTIMATED POPULATION (INCLUDING MAORIS), 1ST APRIL, 1939.

Urban Area.Population (including Maoris).
* Excludes a small area which, though part of the borough, is not within the urban area.
Auckland.
Auckland City106,000
Birkenhead Borough3,470
Northcote Borough2,400
Takapuna Borough7,570
Devonport Borough9,880
New Lynn Borough3,680
Mount Albert Borough20,600
Mount Eden Borough19,250
Newmarket Borough3,010
Ellerslie Borough2,790
One Tree Hill Borough8,720
Onehunga Borough11,400
Otahuhu Borough5,950
Remainder of urban area16,780
Total221,500
Wellington.
Wellington City119,700
Lower Hutt Borough19,000
Petone Borough11,150
Eastbourne Borough2,390
Johnsonville Town District1,920
Remainder of urban area3,740
Total157,900
Christchurch.
Christchurch City94,300
Riccarton Borough5,620
New Brighton Borough5,320
Sumner Borough3,290
Lyttelton Borough*3,150
Remainder of urban area23,720
Total135,400
Dunedin.
Dunedin City65,500
Port Chalmers Borough2,080
West Harbour Borough1,860
St. Kilda Borough7,770
Green Island Borough*2,340
Remainder of urban area3,250
Total82,800
Hamilton.
Hamilton Borough17,850
Remainder of urban area2,950
Total20,800
Gisborne.
Gisborne Borough13,950
Remainder of urban area2,350
Total16,300
Napier.
Napier Borough15,950
Taradale Town District1,240
Remainder of urban area2,210
Total19,400
Hastings.
Hastings Borough13,550
Havelock North Town District1,220
Remainder of urban area4,130
Total18,900
New Plymouth.
New Plymouth Borough17,400
Remainder of urban area1,900
Total19,300
Wanganui.
Wanganui City23,500
Remainder of urban area2,600
Total26,100
Palmerston North.
Palmerston North City23,400
Remainder of urban area1,900
Total25,300
Nelson.
Nelson City11,550
Tahunanui Town District890
Remainder of urban area1,560
Total14,000
Timaru.
Timaru Borough17,850
Remainder of urban area1,450
Total19,300
Invercargill.
Invercargill City22,600
South Invercargill Borough1,170
Remainder of urban area2,730
Total26,500

COUNTIES.—ESTIMATED POPULATION (INCLUDING MAORIS) AND AREA, 1ST APRIL, 1939.

(NOTE.—"Administrative Counties" do not include boroughs or town districts independent of county control, but include dependent town districts.)

Administrative County.Population (including Maoris).Approximate Area, in Square Miles.
North Island—  
  Mangonui8,410960
  Whangaroa2,670240
  Hokianga9,130613
  Bay of Islands10,620820
  Whangarei12,0301,046
  Hobson6,700746
  Otamatea5,360421
  Rodney5,160447
  Waitemata14,550607
  Eden11,20014
  Great Barrier Island470110
  Manukau10,250240
  Franklin14,310551
  Raglan10,500936
  Waikato13,030648
  Waipa12,880435
  Otorohanga5,760600
  Kawhia2,340330
  Waitomo7,9701,130
  Taumarunui3,800878
  Coromandel2,730439
  Thames2,880419
  Hauraki Plains5,010233
  Ohinemuri3,530237
  Piako10,750444
  Matamata9,700930
  Tauranga10,100609
  Rotorua5,960989
  Taupo4,1103,272
  Whakatane10,7001,677
  Opotiki4,8101,537
  Matakaoa1,960295
  Waiapu6,710793
  Uawa1,800256
  Waikohu3,370947
  Cook8,200791
  Wairoa7,8001,373
  Hawke's Bay16,3001,673
  Waipawa3,590524
  Waipukurau1,020121
  Patangata2,750658
  Dannevirke4,950426
  Woodville1,950156
  Weber370118
  Ohura2,170416
  Whangamomona1,290447
  Clifton2,960451
  Taranaki6,540229
  Inglewood3,420187
  Egmont4,700239
  Stratford5,390419
  Eltham3,640207
  Waimate West2,81083
  Hawera5,950191
  Patea3,970591
  Kaitieke3,340550
  Waimarino3,190883
  Waitotara3,760468
  Wanganui3,990460
  Rangitikei9,5101,675
  Kiwitea2,470359
  Pohangina1,390259
  Oroua3,960190
  Manawatu5,450264
  Kairanga5,480184
  Horowhenua7,550544
  Hutt9,720462
  Makara4,570117
  Pahiatua2,880288
  Akitio1,170321
  Castlepoint630203
  Eketahuna2,050311
  Mauriceville780115
  Masterton3,490586
  Wairarapa South3,010440
  Featherston4,010953
    Totals423,43043,811
South Island—  
  Sounds1,080505
  Marlborough7,7101,920
  Awatere1,8101,243
  Kaikoura2,990705
  Amuri2,4902,256
  Cheviot1,420327
  Waimea12,3001,538
  Takaka2,060456
  Collingwood1,540562
  Buller6,4201,950
  Murchison1,8201,412
  Inangahua3,940949
  Grey5,7201,579
  Westland5,7304,410
  Waipara2,710937
  Kowai2,060157
  Ashley780309
  Rangiora3,31096
  Eyre1,880175
  Oxford1,680318
  Tawera870941
  Malvern3,020250
  Paparua5,830136
  Waimairi14,75048
  Heathcote6,06020
  Halswell2,12040
  Mount Herbert44066
  Akaroa1,630169
  Chatham Islands730372
  Wairewa1,020170
  Springs1,84091
  Ellesmere3,290230
  Selwyn1,560954
  Ashburton11,7002,459
  Geraldine5,940690
  Levels4,970263
  Mackenzie3,1302,739
  Waimate7,1501,383
  Waitaki10,2002,392
  Waihemo1,270338
  Waikouaiti4,540312
  Peninsula2,84040
  Taieri5,960903
  Bruce4,280520
  Clutha7,300990
  Tuapeka4,8201,388
  Maniototo2,9601,340
  Vincent4,8002,922
  Lake2,3503,872
  Southland26,5303,736
  Wallace10,1003,727
  Fiord203,035
  Stewart Island500670
    Totals233,97059,010
    Grand totals657,400102,821

BOROUGHS.—ESTIMATED POPULATION (INCLUDING MAORIS) AND AREA, 1ST APRIL, 1939.

Borough.Population (including Maoris).Approximate Area, in Acres.
North Island—  
  Whangarei7,5503,354
  Dargaville2,2902,800
  Birkenhead3,4703,084
  Northcote2,4001,190
  Takapuna7,5702,780
  Devonport9,8801,100
  New Lynn3,6801,392
  Auckland (City)106,00018,253
  Mount Albert20,6002,430
  Mount Eden19,2501,476
  Newmarket3,010182
  Ellerslie2,790735
  One Tree Hill8,7202,450
  Onehunga11,4001,876
  Otahuhu5,9501,345
  Manurewa1,5801,960
  Papakura1,8902,010
  Pukekohe2,6903,470
  Huntly2,090803
  Ngaruawahia1,4801,112
  Hamilton17,8503,740
  Cambridge2,3301,280
  Te Awamutu2,5601,162
  Te Kuiti2,6101,668
  Taumarunui2,7701,925
  Thames4,2702,712
  Paeroa2,2701,419
  Waihi4,0104,094
  Te Aroha2,4702,783
  Morrinsville2,000950
  Matamata1,480934
  Tauranga3,860998
  Te Puke1,0201,047
  Rotorua6,6103,288
  Whakatane1,9201,507
  Opotiki1,510772
  Gisborne13,9503,378
  Wairoa2,6001,603
  Napier15,9502,024
  Hastings13,5502,612
  Waipawa1,1601,710
  Waipukurau2,1201,040
  Dannevirke4,4701,300
  Woodville1,0601,054
  Waitara2,0401,587
  New Plymouth17,4004,070
  Inglewood1,280703
  Opunake1,100676
  Stratford3,9202,016
  Eltham1,9101,599
  Hawera4,790897
  Patea1,4701,420
  Ohakune1,3902,079
  Raetihi1,190958
  Wanganui (City)23,5005,726
  Taihape2,2101,923
  Marton2,8301,415
  Feilding4,7402,031
  Foxton1,5801,271
  Palmerston N. (City)23,4004,851
  Shannon940844
  Levin2,7701,332
  Otaki1,8201,390
  Upper Hutt4,1902,165
  Lower Hutt19,0003,706
  Petone11,1501,132
  Eastbourne2,3901,546
  Wellington (City)119,70016,289
  Pahiatua1,760720
  Eketahuna740948
  Masterton9,5002,973
  Carterton1,9601,265
  Greytown1,2001,927
  Featherston1,050760
  Martin borough9601,070
    Totals612,570170,091
South Island—  
  Picton1,4001,052
  Blenheim5,1301,640
  Nelson (City)11,5504,966
  Richmond1,1602,600
  Motueka1,7503,050
  Westport4,310760
  Runanga1,6901,186
  Greymouth8,4902,522
  Brunner1,0105,700
  Kumara460842
  Hokitika2,770674
  Ross4404,196
  Rangiora2,280877
  Kaiapoi1,630877
  Riccarton5,620728
  Christchurch (City)94,30010,370
  New Brighton5,3201,651
  Sumner3,2903,797
  Lyttelton3,2002,540
  Akaroa480233
  Ashburton7,2001,830
  Geraldine950566
  Temuka1,940795
  Timaru17,8502,780
  Waimate2,340715
  Oamaru7,6101,375
  Hampden300630
  Palmerston800900
  Waikouaiti6001,958
  Port Chalmers2,080500
  West Harbour1,8602,020
  Dunedin (City)65,50015,227
  St. Kilda7,770462
  Green Island2,350875
  Mosgiel2,160965
  Milton1,390315
  Kaitangata1,3301,280
  Balclutha1,730639
  Tapanui310129
  Lawrence660615
  Roxburgh470515
  Naseby200112
  Alexandra880815
  Cromwell730806
  Arrowtown250457
  Queenstown950270
  Gore4,7701,940
  Mataura1,5501,272
  Winton890505
  Invercargill (City)22,6005,914
  South Invercargill1,1702,257
  Bluff2,0802,110
  Riverton920718
  Totals320,470102,528
    Grand totals933,040272,619

TOWN DISTRICTS.—ESTIMATED POPULATION (INCLUDING MAORIS) AND AREA, 1ST APRIL, 1939.

Town District.Population (including Maoris).Approximate Area, in Acres.
* Parent county shown in parentheses.
(a) Town Districts not forming Parts of Counties.
North Island—  
  Kaitaia8601,123
  Kaikohe7601,167
  Hikurangi1,020960
  Kamo460852
  Warkworth6501,420
  Helensville9601,300
  Henderson1,2001,265
  Glen Eden1,3401,267
  Howick9301,091
  Papatoetoe2,6001,267
  Waiuku8901,275
  Tuakau7301,265
  Leamington5501,330
  Otorohanga790314
  Manunui7801,251
  Putaruru850975
  Mount Maunganui680935
  Taradale1,2401,380
  Havelock North1,220835
  Ohura470815
  Manaia630510
  Waverley690484
  Mangaweka390955
  Hunterville580791
  Bull's530677
  Johnsonville1,920842
    Totals23,72026,346
(a) Town Districts not forming
South Island—  
Tahunanui890520
Leeston560391
Tinwald6901,525
Pleasant Point560780
Wyndham550680
Lumsden5301,264
Nightcaps610285
Otautau590954
Totals4,9806,349
Grand totals28,70032,695
(b) Town Districts forming Parts of Counties.*
North Island—  
Kohukohu (Hokianga)3701,020
Rawene (Hokianga)350280
Russell (Bay of Islands)4001,066
Kawakawa (Bay of Islands)530280
Onerahi (Whangarei)430990
Mercer (Franklin)3101,000
Te Kauwhata (Waikato)3801,290
Ohaupo (Waipa)2801,283
Kihikihi (Waipa)350523
Kawhia (Kawhia)250470
Te Karaka (Waikohu)350700
Patutahi (Cook)2801,275
Ormondville (Dannevirke)2801,255
Kaponga (Eltham)410558
Norman by (Hawera)360260
Rongotea (Manawatu)250218
Totals5,58012,468
South Island—  
Havelock (Marlborough)260210
Takaka (Takaka)470585
Southbridge (Ellesmere)400531
Outram (Taieri)390886
Clinton (Clutha)440930
Edendale (Southland)430696
Totals2,3903,838
Grand totals7,97016,306

ADJACENT ISLANDS.

The following adjacent islands not attached to any county were inhabited at the census of 1936:—

Island.Population (including Maoris).
M.F.Totals.
* Included in Waitemata County from 28th May, 1936.
Kukutango*7512
Pakatoa178
Rotoroa34640
Little Barrier213
Tiritiri4610
Rakino415
Brown's5 5
Pahiki729
Mokohinau7613
Ponui132235
Waiheke346347693
Rangitoto121022
Motutapu30636
Motuihi9354147
Kawau463884
Motuhora6410
Motutara16723
Moturekareka1 1
Cuvier8614
Great Mercury235
Motiti5647103
Kapiti5813
Graves527
Somes156
Tata1 1
Ripa123
Quarantine2 2
Dog235
Centre7310
Totals7246011,325

Adjacent to the main Islands are many smaller islands, some of which are of considerable area and are under cultivation; others are but islets used as sites for lighthouses, while others, again, are barren and unfitted for human habitation. Some of these islands are included within the boundaries of counties, and their populations are included in the county figures.

AGE DISTRIBUTION.

The following table shows the estimated age distribution of the population at 1st April, 1939:—

Age, in Years.Excluding Maoris.Maoris.
Males.Females.Totals.Males.Females.Totals.
Under 561,79559,669121,4647,4437,18214,625
5-962,60059,800122,4007,0256,85013,875
10-1467,60064,500132,1005,7505,57511,325
15-1969,40066,300135,7004,6504,3509,000
20-2467,60065,200132,8004,0003,8257,825
25-2966,90064,100131,0003,7003,3757,075
30-3461,30058,300119,6002,8502,5505,400
35-3954,30052,200106,5002,1751,9004,075
40-4446,50049,10095,6001,9751,7503,725
45-4943,90046,50090,4001,5251,1502,675
50-5445,90045,00090,9001,4251,0752,500
55-5942,80040,00082,8001,0007501,750
60-6434,00032,00066,0008507251,575
65-6924,20023,30047,5006505751,225
70-7415,40015,50030,900500450950
75-798,6009,10017,700225175400
80 and over6,3006,60012,900225225450
Totals under 14178,100170,900349,00019,15018,55037,700
Totals under 16205,800197,100402,90021,25020,55041,800
Totals under 21274,100262,700536,80025,70024,70050,400
Totals 21 and over504,995494,469999,46420,26817,78238,050
Grand totals779,095757,1691,536,26445,96842,48288,450

DENSITY OF POPULATION.

The total area of the Dominion of New Zealand is approximately 103,934 square miles. Omitting the annexed islands and certain uninhabited outlying islands, the area of the land-mass remaining is 103,415 square miles. This calculation, it should be explained, includes all inland waters—viz., lakes, rivers, harbours, estuaries, &c. It should be noted also that there is a great deal of high mountainous country in New Zealand, particularly in the South Island, while there are also great areas of broken, swampy, or hilly country either incapable of effective use or which can be used profitably only for pastoral purposes, afforestation, or the like.

Using the latter figure as a base, the density of population in 1939 may be quoted as 15.71 persons to the square mile.

The area and population of individual towns and counties will be found in preceding tables in this section. At the 1936 census density of population in the various provincial districts was—

 Persons per Square Mile.
Auckland21.53
Hawke's Bay18.07
Taranaki20.71
Wellington29.11
Marlborough4.54
Nelson5.47
Westland3.83
Canterbury16.81
Otago—Otago10.76
    Southland6.52

Attention must be drawn to the necessity for the exercise of discretion in the use of data concerning density of population, particularly in comparing one country with another. Areas may be calculated in many ways, while area itself may have little relationship to potentiality of use. In the case of urban population, it is impossible to obtain the aggregate area of sites actually in occupation by business premises, residences, &c. Many boroughs contain within their boundaries large reserves which, with farming and other unbuilt-on land, tend to disguise the actual relation of population to area.

MAORI AND HALF-CASTE POPULATION.

A record of early statistics of Maoris is given in Vol. XIV of the 1926 Census Results. The first official general census was taken in 1857-58, and others occurred in regular sequence from 1874 onwards. Owing to inherent difficulties the earlier census records make no pretence towards complete accuracy, and even some later enumerations hardly claim to be more than approximations which approach the truth as nearly as possible.

Available statistical evidence points to a decline in the numbers of the Native race since the advent of Europeans, but this decline was commonly exaggerated by early writers. Of later years an unmistakable increase has been noted. This gain, however, has been accompanied by a very considerable dilution of blood.

The Maori population recorded at the census of 24th March, 1936, was 82,326, which is an increase of 18,656 on the 1926 total. The percentage increase was 29.30, equivalent to an average annual increase of 2.60 per cent. These percentages, it will be noted, are considerably higher than the corresponding figures for the European population—viz., 10.93 per cent. and 1.05 per cent. For the year 1938-39 the net increase of the Maori population was 1.94 per cent., which compares with 1.22 per cent. for the European population.

The census record is as follows:—

Year.No.
1857-5856,049
187447,330
187845.542
188146,141
188643,927
189144,177
189642,113
190145,550
190650,309
191152,723
191652,997
192156,987
192663,670
193682,326

Of the 88,450 Maoris at the 1st April, 1939, 85,081 were in the North Island. Auckland Provincial District contains the bulk (64,000), particularly in the Auckland Peninsula and Poverty Bay regions. Hawke's Bay contains 6,700; Taranaki, 4,600; and Wellington, 9,500. In the South Island Maoris do not attain any numerical significance.

The records of the 1926 and 1936 censuses permit of a statement of the total numbers wholly or partly of Maori blood.

Counted in the Maori population—
 1926.1936.
Full Maori45,42955,915
Maori-Europeans—  
  Three-quarter caste6,63211,397
  Half-caste11,30614,891
  Degree not specified303123
    Totals03,67082,326
Counted in the non-Maori population—  
Maori-European quarter-caste1926.1936.
 6,05311,508
Maori-Polynesian39102
Maori-Japanese99
Maori-Chinese938
Maori-Indian 41
Maori-Syrian 26
Maori-American Indian 3
Cook Island Maori 103
    Totals6,11011,830

In 1936 there were recorded in New Zealand some 94,156 persons wholly or partly of Maori origin. Of these, some 59 per cent. were recorded as of unmixed Maori descent. There is some reason to believe that the degree of miscegenation is understated, and it is unlikely that the proportion of pure Maori descent is more than 45 per cent. to 50 per cent.

WORLD POPULATION.

The sources of the data quoted herein comprise official publications, bulletins issued by the League of Nations, publications of the International Institute of Statistics, and the Statesman's Year-Book. So far as can be ascertained with some pretension to comparative accuracy—the various estimates of the population of the Chinese Empire, for instance, vary to the extent of considerably over 100 millions—the world population is 2,126 millions. The inhabitants of the Dominion therefore comprise about one thirteen-hundredth part of the population of the world. Details for continents as given in the Statistical Year-Book of the League of Nations are:—

 1913.1938.
Europe498,000,000530,000,000
Asia978,000,0001,160,000,000
Africa134,000,000153,000,000
North America134,000,000182,000,000
South America56,000,00090,000,000
Oceania8,000,00011,000,000
Totals1,808,000,0002,126,000,000

As a useful indication of the comparative population of various countries, the following index has been prepared:—

Country.Population (000 omitted).Year.Index of Population (New Zealand = 1).
* According to Chinese Ministry of the Interior. Some authorities consider the population is probably not in excess of 350,000,000, and is stationary.
England and Wales41,2151,93825
Scotland4,9851,9383
Northern Ireland1,2851,9380.8
Eire2,9371,9382
India (including Native States)362,0001,938223
Burma15,7971,9389
Ceylon5,7801,9384
Union of South. Africa9,9801,9386
Canada11,2091,9387
Newfoundland2891,9380.2
Australia6,9301,9394
New South Wales2,7361,9392
Victoria1,8741,9391
Queensland1,0041,9390.6
South Australia5951,9390.4
Western Australia4621,9390.3
Tasmania2411,9390.1
New Zealand1,6251,9391
Belgium8,3861,9395
Bulgaria6,3711,9394
Denmark3,7931,9392
Estonia1,1341,9390.7
Finland3,8351,9382
France41,9801,93826
Germany86,8001,93953
Greece7,1071,9394
Hungary11,1381,9397
Italy43,5091,93927
Latvia1,9811,9391
Lithuania2,5751,9392
Netherlands8,7271,9395
Norway2,9221,9392
Poland35,0901,93922
Portugal7,4601,9395
Rumania19,8521,93912
Russia (Soviet Union)170,4671,939105
Spain24,8491,93615
Sweden6,3101,9394
Switzerland4,2101,9393
Yugoslavia15,6301,93910
China*457,8351,936282
Japan72,2231,93844
Turkey16,8001,93810
Egypt16,0301,93810
Mexico19,4791,93812
United States of America130,2151,93880
Argentina12,9581,9398
Bolivia3,3001,9382
Brazil44,1161,93927
Chile4,6351,9393
Colombia8,7221,9385
Ecuador3,0001,9382
Peru7,1001,9384
Uruguay2,1201,9391
Venezuela3,5301,9382

Chapter 5. SECTION V.—VITAL STATISTICS.

SUBSECTION A.—BIRTHS.

REGISTRATION.

Registration of births in New Zealand dates from 1848, consequent upon the passing, in 1847, of a Registration Ordinance which made provision for a record of births and deaths being kept by the State. Under this Ordinance many registrations were effected, some of births as far back as 1840. Compulsory registration did not, however, come into force until 1855.

The law as to registration of births is now embodied in the Births and Deaths Registration Act, 1924, a consolidation of the then existing legislation. The provisions generally as to registration are that a birth may be registered within sixty-two days without fee. After sixty-two days and within six months a birth is registrable only after a statutory declaration, of the particulars required to be registered, has been made before the Registrar by the parent or some person present at birth and on payment of a fee of 5s. When six months have elapsed, and a conviction for neglect to register has been entered against the persons responsible, a birth may be registered with a Registrar of Births within one month after conviction, and in this case no fee is payable. An information for such neglect must be laid within two years of date of birth. Notwithstanding the foregoing provisions, power is given by the Act of 1924 for the Registrar-General to register an unregistered birth which occurred in New Zealand, irrespective of the time that may have elapsed, a fee of 5s. being payable and satisfactory evidence on oath, and such other proof as the Registrar-General may deem necessary, being required. This provision does not, however, relieve any person from liability to prosecution for failure to register in the proper manner.

Registration of still-births, previously not provided for, was made compulsory from the 1st March, 1913.

Although sixty-two days are allowed for the registration of a birth, it is compulsory to notify the birth to the Registrar within a much shorter interval—viz., forty-eight hours if in a city or borough and twenty-one days in every other case.

Particulars now required to be registered are: Date and place of birth; name and sex of child; names, ages, and birthplaces of parents; occupation of father; maiden name of mother; date and place of parents' marriage; and ages and sex of previous issue (distinguishing living and dead) of the marriage. The father of an illegitimate child is not required to give information or to be registered.* A child born out of New Zealand but arriving before attaining the age of eighteen months may be registered within six months of arrival.

REGISTRATION OF MAORI BIRTHS.

In the successive Registration Acts special provision was made for exemption from the necessity of registration in the case of births and deaths of Maoris, though registration could be effected if desired. Section 20 of the Births and Deaths Registration Amendment Act, 1912 (now section 60 of the Births and Deaths Registration Act, 1924), empowered the making of regulations to provide for the registration of births and deaths of Maoris. Regulations were made accordingly, and Maori births and deaths became registrable as from the 1st March, 1913. The number of Registrars of Maori Births and Deaths in the Dominion is over 200, most of these being in the North Island, where the great majority of the Maori population is located. Every Native settlement of any size is within easy reach of one of these Registrars. Maori registrations are entered in a separate register, and the figures of births given in the following pages do not include those of Maoris, which are dealt with at the end of this subsection.

Birth statistics are compiled from the records of the Registrar-General. The births covered by a year's statistics are those registered during the year irrespective of the year of birth. The figures do not include still-births, except in the special classification on pages 98 and 99.

NUMBERS AND RATES.

The numbers and rates of births (children born alive) for each of the last twenty years were as follows:—

Year.Number.Rate per 1,000 of Population.
1,91924,48321.42
1,92029,92125.09
1,92128,56723.36
1,92229,00623.18
1,92327,96721.96
1,92428,01421.60
1,92528,15321.20
1,92628,47321.06
1,92727,88120.29
1,92827,20019.57
1,92926,74719.03
1,93026,79718.83
1,93126,62218.45
1,93224,88417.12
1,93324,33416.63
1,93424,32216.51
1,93523,96516.17
1,93624,83716.64
1,93726,01417.29
1,93827,24917.93

The year 1936 witnessed the first yearly increase in the number of births since 1930 and also an actual increase in the birth-rate after a continuous downward movement during the previous fifteen years. The improvement recorded during

* But see p. 97.

that year was more than maintained during the subsequent two years, the number of births registered in 1938 being the highest recorded since 1927 and the birthrate the highest since 1931. This reversal of trend would appear to be a logical one in view of the substantial and continued rise in the number of marriages celebrated during recent years.

The fall of 3.49 per 1,000 of population between 1919 and 1938 is equivalent to a decline of 16 per cent. in the birth-rate. This falling tendency is, however, of long standing, and one common to other “European” populations. The following diagram shows, inter alia, the marked decline in the birth-rate, in so far as New Zealand is concerned, since about 1880:—

Comparisons of birth-rates over a series of years or between different countries are usually made on the basis of the “crude” rates—i.e., the number of births per 1,000 of the mean population, irrespective of sex or age.

The “crude” rates do not permit of allowance being made for variations in the proportion of women of the child-bearing ages, and it is advisable and of interest to supplement the table of “crude” rates with a computation of the legitimate birth-rate per 1,000 married women between 15 and 45 years of age, or the total birth-rate per 1,000 of all women of these ages. The following table gives both rates for New Zealand in each census year from 1878 to 1936:—

Year.Number of Women 15 and under 45.Number of Births.Birth-rate per 1,000 Women 15 and under 45.
Married.Total.Legitimate.Total.Legitimate.*Total.
* Per thousand married women.
1,87850,99980,31317,34117,770340.0221.3
1,88157,46196,14418,19818,732315.0194.8
1,88662,709117,89518,69719,299298.2163.7
1,89163,172131,27117,63518,273279.2139.2
1,89669,816158,21417,77818,612254.6117.6
1,90179,420183,38719,55420,491246.2111.7
1,90698,249212,59823,12024,252235.3114.1
1,911119,390240,71425,27626,354211.7109.5
1,916141,322267,30027,36328,509193.6106.7
1,921150,400288,47727,30928,567181.699.0
1,926161,739313,36327,00028,473166.990.9
1,936173,557344,12423,71124,818136.672.1

The legitimate rate per 1,000 married women between the ages of 15 and 45 is seen to have fallen by 60 per cent. between 1878 and 1936, while an even greater fall is shown for the total rate on the basis of all women of the ages mentioned. The greater fall in the latter rate than in the former is due to the fact that among women of the child-bearing ages the proportion of married women is considerably lower nowadays than in the earlier years covered.

A greater proportion of women formerly married at younger ages than they do at present, and a study of the figures for successive censuses reveals considerable changes in the age-constitution of married women within the child-bearing ages. As the birth-rate varies with age, the change in age-constitution over the period is a factor which should be taken into account. This was done in the computation of index-numbers of birth-rates published in the 1933 (page 80) and earlier issues of the Year-Book.

NATURAL INCREASE.

The decline of the birth-rate in New Zealand has been accompanied until recent years by a decrease in the death-rate. Nevertheless, the nominal rate of natural increase of population has fallen from 31.19 per 1,000 of mean population in 1870 to 8.22 in 1938. Acceptance of this figure without consideration of the effect of the changing age-constitution will give an erroneous view of the present margin of increase and of the probable trend of population growth in the future (see section on Population).

Period.Annual Rates per 1,000 Population.
Births.Deaths.Natural Increase.
1871-187539.8812.6727.21
1876-188041.2111.8029.41
1881-188536.3610.9525.41
1886-189031.159.8521.30
1891-189527.6810.1517.53
1896-190025.759.5516.20
1901-190526.609.9116.69
1906-191027.069.7517.31
1911-191525.989.2216.76
1916-192024.3210.7313.59
1921-192522.228.6213.60
1926-193019.768.6011.16
1931-193516.988.238.75
1936-193817.299.188.11

New Zealand's position in the following table is much higher on the basis of the natural-increase rate than it would be on that of the birth-rate.

BIRTH AND NATURAL-INCREASE RATES.

Country.Quinquennium.Annual Rates per 1,000.
Births.Natural Increase.

* Registration area.

† Decrease.

Palestine1934-3842.524.4
Egypt1933-3742.415.2
Union of S. Africa1933-3724.014.3
Yugoslavia1933-3729.813.3
Japan1933-3730.713.2
Greece1933-3728.413.0
Argentina1934-3823.211.8
Bulgaria1934-3825.511.7
Netherlands1934-3820.211.6
Portugal1934-3827.711.5
Poland1934-3825.511.5
Ceylon1934-3835.911.1
Rumania1934-3831.011.0
Canada1934-3820.210.5
Spain1931-3526.610.4
Uruguay1933-3720.210.1
Lithuania1934-3823.39.9
Italy1934-3823.29.4
Chile1934-3833.88.8
New Zealand1934-3816.98.0
Australia1934-3817.07.5
Germany1934-3818.97.3
Denmark1934-3817.87.1
Hungary1934-3820.76.2
United States*1934-3817.16.0
Finland1933-3718.25.7
Northern Ireland1934-3819.85.6
Eire1934-3819.45.3
Czechoslovakia1933-3718.14.7
Norway1934-3814.94.7
Scotland1934-3817.84.6
Switzerland1934-3815.64.1
Latvia1934-3817.83.8
England & Wales1934-3814.93.0
Belgium1934-3815.52.7
Sweden1934-3814.12.4
Estonia1934-3815.91.1
France1934-3815.2-0.1

SEXES OF CHILDREN BORN.

With the exception of one year (1860), there has always been a preponderance of males in the number of children born in New Zealand. The proportions are usually shown by stating the number of births of male children to every 1,000 female births. This number has been as high as 1,113 (in 1859), and as low as 991 (in 1860).

But little significance can be attached to any figures prior to 1870, on account of the comparatively small number of births. The period preceding 1870 exhibits violent fluctuations in the proportion of males, which tend to disappear as the total of births grows larger. The extreme range since 1870 has been from 1,016 male per 1,000 female births in 1878 to 1,081 in 1923.

Year.Number of Births ofMale Births per 1,000 Female Births.
Males.Females.
1,91912,58711,8961,058
1,92015,43414,4871,065
1,92114,57613,9911,042
1,92214,89714,1091,056
1,92314,53113,4361,081
1,92414,29513,7191,042
1,92514,51813,6351,064
1,92614,64913,8241,060
1,92714,29113,5901,052
1,92814,08213,1181,073
1,92913,64513,1021,041
1,93013,71313,0841,048
1,93113,76612,8561,071
1,93212,82412,0601,063
1,93312,41911,9151,042
1,93412,55411,7681,067
1,93512,31611,6491,057
1,93612,60812,2291,031
1,93713,24512,7691,037
1,93813,92913,3201,046

The gradual increase in the proportion of males born is illustrated by taking the average ratios of successive decennial periods. The apparent cessation in the increase, as shown by the figures for the period 1916-25 as compared with the preceding decennium, is due to the low masculinity recorded in the last two war years, when (it may be remarked in passing) the proportion of first births to total births was abnormally low.

Period.Male Births per 1,000 Female Births.
1856-18651,062
1866-18751,043
1876-18851,045
1886-18951,045
1896-19051,054
1906-19151,055
1916-19251,053
1926-19351,057

Further information as to the proportions of sexes of children may be obtained from some figures extracted from the records of births registered in the ten years 1929-38 in cases where the child was shown to be the fourth-born of a family in which the three previously born children were still living. In the following statement showing the sex-nativity order up to the fourth child, families in which plural births occurred among the first four children have been excluded.

Firstborn.Second-born.Third-born.Fourth-born.Number of Cases.
MaleMaleMaleMale1,304
MaleMaleMaleFemale1,222
MaleMaleFemaleMale1,072
MaleMaleFemaleFemale1,099
MaleFemaleMaleMale1,073
MaleFemaleMaleFemale1,039
MaleFemaleFemaleMale1,059
MaleFemaleFemaleFemale1,027
FemaleFemaleFemaleFemale1,043
FemaleFemaleFemaleMale1,148
FemaleFemaleMaleFemale1,022
FemaleFemaleMaleMale1,120
FemaleMaleFemaleFemale1,008
FemaleMaleFemaleMale1,104
FemaleMaleMaleFemale1,064
FemaleMaleMaleMale964

Of the 17,368 families covered, in 8,895 the first child was a male and in 8,473 a female, the number of males per 1,000 females being thus 1,050. The proportion is reduced for subsequent births. The figures are as follows:—

Child.Males.Females.Males per 1,000 Females.
First8,8958,4731,050
Second8,8378,5311,036
Third8,8088,5601,029
Fourth8,8448,5241,038

The contention that there is a higher masculinity rate among first-born children than among later issue seems to explain the increasing masculinity of births in successive decennia referred to previously, when it is remembered that the average number of children to a family has fallen heavily during the period, and the proportion of first-born children correspondingly increased.

The sex-proportions of illegitimate births are generally supposed to be more nearly equal than those of legitimate births. However, although little reliance can be placed on the figures for New Zealand by reason of the small numbers represented, it may be stated that the average for the period 1929-38 was 1,032 males per 1,000 females.

MULTIPLE BIRTHS.

The number of cases of multiple births and the proportion per 1,000 of the total (living births only) during the last ten years were—

Year.Total Births.Total Cases.Cases of Twins.Cases of Triplets.Multiple Cases per 1,000 of Total Cases.
* Including one case of quadruplets.
1,92926,74726,470275110.43
1,93026,79726,488305211.59
1,93126,62226,332288110.98
1,93224,88424,618260310.68
1,93324,33424,079251210.51
1,93424,32224,060258210.81
1,93523,96523,6852752*11.70
1,93624,83724,60822529.22
1,93726,01425,735277110.80
1,93827,24926,949296211.06

Counting only cases where both children were born alive, there were 296 cases of twin births (592 children) registered in 1938. There were also two cases of triplets.

The number of accouchements resulting in living births was 26,949, and on the average one mother in every 90 gave birth to twins (or triplets).

When still-births are taken into account, however, the total number of accouchements for the year 1938 is increased to 27,662, and the number of cases of multiple births to 328. On this basis the proportion of mothers giving birth to twins or triplets is increased to one in 84.

The following table shows the sexes in individual cases of twin births for the same decade:—

Year.Total Cases.Both Males.Both Females.Opposite Sexes.
1,929275959288
1,93030510197107
1,9312881018998
1,932260878093
1,9332517073108
1,934258898089
1,9352758390102
1,936225827172
1,9372779381103
1,93829610189106

During the ten years 1929-38 there were seventeen cases of triplets. In four cases all three children were males, in five cases all were females, in one case there were two males and one female, and in seven cases two of the three children were females.

QUADRUPLETS.

On 6th March, 1935, quadruplets were born in Dunedin, one child being a male and the remaining three females. A previous case of quadruplets occurred at Ngaruawahia in 1919, all being males. In earlier years no specific note would have been made of such instances, and it is impossible to state whether the above represents all quadruple births which have occurred in New Zealand.

AGES OF PARENTS.

Information as to the relative ages of parents of legitimate living children whose births were registered in 1938 is shower in the following table:—

Age of Mother, in Years.Age of Father, in Years.
Under 21.21 and under 25.25 and under 30.30 and under 35.35 and under 40.40 and under 45.45 and under 50.50 and under 55.55 and under 65.65 and over.Totals.

*Including twenty-four cases where plural births would have been registered had not one child been still-born.

† Including two cases of triplets.

Multiple Births.
Under 21130748561151318244..1,639
21 and under 25451,3662,9071,0682566930114..5,756
25 and under 3073583,4833,2221,04421573371628,457
30 and under 351326312,5821,726540177794135,812
35 and under 40..5463251,2037343331315392,839
40 and under 45....436135332241110617926
45 and over........37232023278
    Totals1832,5097,6327,3844,3981,9058793922022325,507*
Multiple Births.
Under 21..4611..........12
21 and under 25..7209111......39
25 and under 30..232361441......89
30 and under 35....1245265411..94
35 and under 40..1171916311..49
40 and under 45..........131....5
    Totals..14719861271232..288
    Grand totals1832,5237,7037,4824,4591,9328913952042325,795*

PREVIOUS ISSUE OF PARENTS.

Information as to the previous issue of the existing marriage, required in connection with the registration of births in New Zealand, is useful not only for record purposes, but also as providing valuable data for statistical purposes. Tables are given in the annual “Report on Vital Statistics” containing detailed information as to number of previous issue in conjunction with (1) age of mother, (2) duration of marriage, and (3) occupation of father. The table under the first heading for the year 1938 is here summarized.

Age of Mother.Number of Previous Issue. 
0.1.2.3.4.5.6 and under 10.10 and under 15.15 and over.Totals.
* This number represents 25,507 single cases and 288 multiple cases.
Under 211,329280393..........1,651
21 and under 253,5711,5514881443092....5,795
25 and under 303,6082,5691,336606244119622..8,546
30 and under 351,5231,6681,1496984052272288..5,906
35 and under 4042448356742434120539648..2,888
40 and under 458412112213611582197668931
45 and over62594102514378
    Totals10,5456,6743,7062,0201,1396529101381125,795*

In computing previous issue, multiple births have been given their full significance, the numbers at the head of the columns relating to children born alive. In the following table this procedure has been followed not only for the previous issue but also for children covered by the 1938 registrations, who are also taken into account in the computation of the averages.

Age of Mother, in Years.Total Mothers.Total Issue.Average Issue.
Under 211,6512,0301.23
21-245,7958,9701.55
25-298,54617,6872.07
30-345,90616,4322.78
35-392,88811,5073.98
40-449314,8685.23
45 and over785707.31
  Totals25,79562,0642.41

It should be stressed that the averages are no more than they purport to be—viz., the average number of children (including those registered in 1938) born up to the present time to those mothers of legitimate children whose births were registered during the year. They do not purport to represent, nor do they represent, the average issue of all women of the ages shown. Furthermore, they represent issue born to the existing marriage only. The averages for the last five years were as follows: 1934, 2.69; 1935, 2.64; 1936, 2.55; 1937, 2.47; and 1938, 2.41. In 1915, the earliest year for which reliable comparative figures are available, the average issue was 3.11. This falling trend in the average issue of women giving birth to children is a measure of the tendency towards smaller families. The acceleration in the decline during recent years, however, is the result of the abnormal proportion of first births registered during those years.

The serious effect of a steadily declining birth-rate upon the population of a country is now receiving increasing attention, not only in New Zealand but in many other countries where a similar state of affairs is being experienced.

While there are manifold aspects of the problem, the birth statistics compiled annually in New Zealand do not furnish adequate data for a comprehensive study and, indeed, the quantity of material that it is possible to utilize is, as regards many aspects, insufficient to permit reliable conclusions to be drawn therefrom.

Nevertheless, in view of the increasing importance now attaching to this phase of the Dominion's vital statistics, the birth statistics of recent years have been analysed a little more fully than it had been found possible to do previously. As a result, some light may be thrown upon several important questions relating to the reproductivity of the country's population.

It has already been shown that the average issue of married women in New Zealand is definitely declining. It is of value, however, to discover what sections of the population are contributing most to this decline. Certain indications are obtainable from statistics of average issue (to date) of parents who had issue born to them during 1938, analysed according to the occupation of the father. The earliest similar analysis was made for the year 1925, and a summary of the results obtained for the two years 1925 and 1938 is given in the table which follows.

There has been a decrease in the average for every group except that relating to persons dependent on public or private support. The totals covered by this group are, however, too small to possess any significance. A noteworthy feature is that in the groups showing the higher averages the excess over the general average is much less in 1938 than in 1925.

Occupations of Fathers in Industrial Groups.Average Number of Children.
1925.1938.
Fishing and trapping3.952.83
Agricultural and pastoral farming3.232.61
Forestry3.382.77
Mining and quarrying3.392.61
Processes relating to minerals2.582.03
Processes relating to chemical, animal, and vegetable products3.232.28
Processes relating to metals, machines, conveyances, &c.2.662.07
Processes relating to fibrous materials, textiles, and dress2.752.15
Processes relating to food, drink, and tobacco2.912.25
Processes relating to wood, basketware, and furniture2.512.13
Processes relating to paper, stationery, printing, &c.2.361.88
Construction and repair of buildings, roads, &c.2.952.53
Transport and communication2.832.36
Commerce and finance2.732.03
Public administration, clerical, and professional2.311.94
Entertainment, sport, and recreation2.802.08
Personal or domestic service2.622.24
Dependent on public or private support1.504.62
Other and indefinite occupations3.252.85
    Totals2.962.41

The figures of average number of issue quoted above do not show the average number of children in a New Zealand family. On the one hand, they represent only the average family to date of those parents who had children born to them during 1925 or 1938; on the other hand, in computing the averages no allowance is made for age or duration of marriage or for the fact that many married couples remain childless. Even the general comparison between 1925 and 1938 may be somewhat vitiated by the greatly increased proportion of first births among births registered during the latter year.

FIRST BIRTHS.

Of a total of 119,376 accouchements resulting in legitimate births during the five years 1934-38, the issue of no fewer than 45,256, or 38 per cent., were firstborn children, and in 20,057, or 44 per cent. of these cases, the birth occurred within twelve months, and in 32,944, or 73 per cent., within two years after the marriage of the parents. In the remaining 27 per cent. of cases where there was any issue to the marriage, two years or more had elapsed before the birth of the first child.

In view of the abnormal conditions operating during the last few years, and particularly as a result of the heavy increase in the number of marriages during each of the five years 1934 to 1938, it is not surprising to find the proportion of first births for the years 1935 to 1938 showing a definite increase. In fact, the proportion of first births to total births since 1936 has been phenomenal, and in each year up to 1938 has established a new record. The proportion of first births occurring within one year of the marriage of the parents, however, was lower in the last three years than for many years past. The figures for each of the last five years are:—

Year.Total Legitimate Cases.Total Legitimate First Cases.Proportion of First Cases to Total Cases.First Cases within One Year after Marriage.First Cases within Two Years after Marriage.
Number.Proportion to Total First Cases.Number.Proportion to Total First Cases.
   Per Cent. Per Cent. Per Cent.
1,93422,9057,92534.603,66546.255,78873.03
1,93522,6508,07035.633,70945.965,93673.56
1,93623,4868,93338.043,98144.576,52673.05
1,93724,5409,78339.874,31344.097,07472.31
1,93825,79510,54540.884,38941.627,62072.26
Totals for five years119,37645,25637.9120,05744.3232,94472.79

During the five years there were 8,816 cases of legitimate births within seven months after marriage, a period which may be regarded as a minimum in a consideration of extra-marital conception; also 5,661 cases of illegitimate births were registered, and if these latter are all regarded as first births (which is not entirely the case), the following position is shown:—

Year.Total Legitimate First Cases. (a)Illegitimate Cases. (b)Legitimate Cases within Seven Months after Marriage. (c)Proportion of (c) to (a). (d)Proportion of (b) + (c) to Total of (a) + (b). (e)
    Per Cent.Per Cent.
1,9347,9251,1551,75622.1632.06
1,9358,0701,0351,67420.7429.75
1,9368,9331,1221,76819.7928.74
1,9379,7831,1951,78918.2927.18
1,93810,5451,1541,82917.3424.64
Totals for five years45,2565,6618,81619.4828.43

The figures quoted in the above table indicate a continuous and substantial decrease in the proportion of extra-maritally conceived cases.

Apart from the tendency to restrict the size of families (already commented upon), it would appear that postponement of the birth of the first child is becoming a feature of modern times. Statistics of first births over a number of years indicate that the proportion occurring within one year of marriage is gradually declining. The following table illustrates this point.

FIRST BIRTHS, DURATION OF MARRIAGE OF PARENTS.

Duration of Marriage in Years.Proportion per Cent. of Total First Births.
1914.1924.1934.1938.
Under 1 year52.9550.0646.2541.62
1 and under 2 years28.6226.6426.7930.64
2 and under 3 years9.0210.4310.2413.02
3 and under 4 years3.435.516.165.82
4 and under 5 years1.883.033.963.24
5 and under 10 years3.263.365.494.72
10 years and over0.840.971.110.94
    Totals100.00100.00100.00100.00

For the years covered by the foregoing table the average duration of marriage before the birth of the first child was—1914, 1.63 years; 1924, 1.76 years; 1934, 1.85 years; and 1938, 1.85 years.

The following table relating to the births registered during 1938, and showing the average duration of marriage before the birth of the first child in conjunction with the occupational grouping of the father, is of interest.

AVERAGE DURATION OF MARRIAGE BEFORE THE BIRTH OF THE FIRST CHILD, 1938.

Occupations of Fathers in Industrial Groups.Total Fathers.Average Duration of Marriage in Years.
Fishing and trapping232.17
Agricultural and pastoral2,0491.69
Forestry561.23
Mining and quarrying1211.32
Workers in stone, clay, earthenware, lime, cement, glass, &c.361.44
Processes relating to chemicals, animal and vegetable products171.41
Workers in non-precious metals, electric fittings, &c.8221.95
Workers in precious metals, jewellery, scientific instruments, &c.192.00
Workers on ships, boats, and conveyances811.52
Workers in fibrous materials, textiles, &c., other than clothing or dress621.66
Workers in clothing and dress, &c.1001.69
Workers in harness, saddlery, and leatherware52.40
Workers in food, drink, and tobacco2461.69
Workers in wood2471.74
Workers in paper, printers, photographers1012.25
Workers in other materials371.81
Workers in building, construction, and maintenance of roads, &c.8951.76
Workers in production or supply of gas, water, electricity, or power372.27
Workers in transport and communication1,0261.59
Financial and commercial occupations1,2821.96
Persons engaged in public administration1121.89
Clerical and professional occupations1,2542.00
Entertainment, sport, and recreation592.02
Personal and domestic occupations1841.73
Other or ill-defined occupations1,5631.35
Persons not actively engaged in gainful occupations132.08
Totals10,4471.74

(NOTE.—Cases where the duration of marriage was ten years or over have been omitted from the above calculations.)

Of those groups which covered a sufficient number of fathers to render the averages of any value, the greatest average elapsed time before the birth of the first child according to the above statistics was recorded for the “Workers in paper, printers, and photographers” group. The “Other and indefinite occupations” group, which contains a great number of fathers of the general-labourer category, indicates a relatively short period of elapsed time before the advent of issue after marriage.

Another item of interest extracted from the 1938 birth statistics is a table of first births occurring to mothers in different age-groups expressed as a proportion per cent. of the total first births. A comparison has also been computed on the same basis for the years 1914, 1924, and 1934.

FIRST BIRTHS BY AGE OF MOTHER.

Age of Mother.First Births, Proportion per Cent. at each Age-group to Total First Births.
1914.1924.1934.1938.
Under 206.737.558.907.56
20 and under 2535.8938.1640.3938.91
25 and under 3035.0132.5932.7934.22
30 and under 3515.6114.6813.1014.44
35 and under 405.525.333.794.02
40 and under 451.161.590.990.79
45 and over0.080.100.040.06
Totals100.00100.00100.00100.00

The figures of average ages of mothers at the births of their first children are as follows for the above years: 1914, 26.55; 1924, 26.39; 1934, 25.90; and 1938, 26.08.

ILLEGITIMACY.

The births of 1,164 children (568 males, 596 females) registered in 1938 were illegitimate. The numbers for each of the last ten years, with the percentages they bear to total births registered, were as follows:—

Year.Number.Percentage to Total Births.
1,9291,3274.96
1,9301,3715.12
1,9311,3154.94
1,9321,2625.07
1,9331,1194.60
1,9341,1614.77
1,9351,0464.36
1,9361,1264.53
1,9371,2104.65
1,9381,1644.27

The illegitimacy rate for the last quinquennium is lower than for the preceding five-yearly period, the average proportion for 1934-38 being 4.52 as against an average of 4.94 for the period 1929-33. The long-term trend in the illegitimate birth-rate is indicated by the movement in the proportion of illegitimate births per 1,000 unmarried women—i.e., spinsters, widows, and divorced women—at the reproductive ages. The figures for each census from 1891 to 1936 are as follows:—

Census Year.Unmarried Women aged 15-45 Years.Illegitimate Births.Illegitimate-birth Rate per 1,000 Unmarried Women.
1,89168,9906389.25
1,89689,7228349.30
1,901105,4209378.89
1,906116,5061,1329.72
1,911116,7261,0789.24
1,916125,4611,1599.24
1,921136,5391,2589.21
1,926150,2651,4739.80
1,936156,7761,1267.18

The illegitimate birth-rate has shown a marked decline during the last decade.

Included in the total of 1,164 illegitimate births in 1938 were ten cases of twins, the number of accouchements being thus 1,154. From the following table it will be seen that of the 1,154 mothers 412, or 36 per cent., were under twenty-one years of age.

ILLEGITIMATE BIRTHS, 1938.—AGES OF MOTHERS.

Age.Cases.
Years. 
143
1519
1640
1766
1874
19102
20108
2186
2272
2364
2462
2564
2644
2746
2836
2940
3036
3122
3225
3316
3422
3519
3610
3720
3813
3912
4011
414
426
435
446
471
Total1,154

The Births and Deaths Registration Amendment Act, 1930, directs the omission of the word “illegitimate” from the register when the birth of an illegitimate child is registered. The word “illegitimate” appearing in any entry made prior to the passing of the Act is deemed to be expunged and deleted, and must also be omitted from any certified copy of an entry.

THE LEGITIMATION ACT.

An important Act was passed in 1894 and re-enacted in 1908, intituled the Legitimation Act. Under this Act any child born out of wedlock whose parents afterwards intermarried was deemed to be legitimized by such marriage on the birth being registered in the manner prescribed by the Act. For legitimation purposes a Registrar was required to register a birth when called upon to do so by any person claiming to be the father of an illegitimate child; but such person was required to make a solemn declaration that he was the father, and was also required to produce evidence of marriage between himself and the mother of the child.

Prior to the passing of the Legitimation Amendment Act, 1921-22, legitimation could be effected only if at the time of the birth of the child there existed no legal impediment to the intermarriage of the father and mother, but the legal-impediment proviso was repealed by that amendment.

The amendment of 1921-22 also provided for legitimation by the mother in the event of the death of the father after the intermarriage of the parents. In such a case the application for legitimation was heard by a Magistrate, and upon his certifying that it had been proved to his satisfaction that the husband of the applicant was the father of the child, the child was registered as the lawful issue of the applicant and her husband.

Important changes are made by the Legitimation Act of 1939, which stipulates that every illegitimate person whose parents have intermarried, whether before or after the passing of the Act, shall be deemed to have been legitimated from birth by reason of such marriage. The Act requires the parents or surviving parent of any person legitimated under the Act to register with the Registrar-General the particulars of the birth of that person, showing that person as the lawful issue of the parents. Application for registration must be made within six months after the date of the passing of the Act in cases where the marriage took place prior to that date. In cases where the marriage takes place after the passing of the Act, application for registration must be made within three months after the date of the marriage.

Where the Registrar-General has reason to believe that any person has been legitimated under the terms of the Act, and no application for registration has been made within the prescribed time, he may require the responsible parents or parent to make an application within a specified period of not less than seven days after receiving notice to do so. Any failure to comply with the notice requiring application for registration within the time specified renders the person or persons responsible liable on summary conviction to a fine of £5. If no application for registration is made within the appropriate time specified in the Act or notice received from the Registrar-General, application for registration of the particulars of the birth of any legitimated person may be made by that person, or by one of his parents, or by any other person.

The number of legitimations registered in each of the last ten years, and the total since the Act of 1894 came into force, are:—

 Number of Children legitimized.
Year.Previously registered.Not previously registered.Total.
1,92926166327
1,930234111345
1,93129292384
1,93223695331
1,93330995404
1,93428494378
1,93527663339
1,93632785412
1,937322114436
1,93835697453
Totals to 19386,4352,9409,375

ADOPTIONS.

The Births and Deaths Registration Act contains provision for the registration of adopted children. The Clerk of the Court by which any adoption order is made is required to furnish to the Registrar-General particulars of the order, including the full name and place of birth of the child, as well as the full names and addresses of both the natural and the adopting parents. If the child's birth has been registered in New Zealand a note of the adoption order is made in the register, and a new entry is made in the prescribed form in the register of births, particulars of the adopting parents being substituted for those of the natural parents.

During the year 1938 the registration of 570 adopted children (270 males and 300 females) was effected, as compared with 444 in 1937, 413 in 1936, 340 in 1935, and 338 in 1934. Statistics of adoptions effected are available in New Zealand only since 1919. These indicate that the annual number of adoptions follows closely the economic condition of the country. The record total occurred in 1921 with 584 adoptions registered, this, no doubt, being the result of post-war influences. The lowest total (329) occurred in 1931, while the 1938 figure of 570 is the second highest on record.

STILL-BIRTHS.

The registration of still-births was made compulsory in New Zealand as from the 1st March, 1913. A still-born child is defined as one “which has issued from its mother after the expiration of the twenty-eighth week of pregnancy and which was not alive at the time of such issue.” Still-births are not included either as births or as deaths in the various numbers and rates shown in this subsection and in that relating to deaths.

The registrations of still-births during each of the last ten years were as follows:—

Year.Males.Females.Totals.Male Stillbirths per 1,000 Female Still-births.Percentage of Still-births to
Living Births.All Births.
1,9295013698701,3583.253.15
1,9304703958651,1903.233.13
1,9314303798091,1353.042.95
1,9324303167461,3613.002.91
1,9334173057221,3672.972.88
1,9343873006871,2902.822.75
1,9353933457381,1393.082.99
1,9364243087321,3772.952.86
1,9374273347611,2782.932.84
1,9384093347431,2252.732.65

Masculinity is in general much higher among still-births than among living births, though an exception to the rule occurred in 1928. The figures for the ten years covered by the table show the rate for still-births to have been 1,272 males per 1,000 females. The rate for individual years has ranged between 1,726 (in 1914) and 1,022 (in 1928).

Tabulation of the relative ages of the parents of the still-born children in 1938 does not appear to disclose any significant features. The median age of the mothers was 29, as compared with 28 in the case of living births. The percentage of illegitimates among still-born infants was 4.98, as compared with 4.27 among infants born alive.

Of the living legitimate births registered in 1938, 41 per cent. were first births, while of legitimate still-births 48 per cent. were first births. It would thus appear that there is a considerably greater probability of still-births occurring to mothers having their first accouchement than those having subsequent accouchements.

The following table, based on the figures for the five years 1934-38, indicates that this is so, and further demonstrates the effect of the increasing age of the mother in the causation of still-births. While for women between 20 and 25 the proportion of still-births to living births was 2 per cent. for all births and 2.5 per cent. for first births, for women aged forty and over it was 6.2 per cent. for all births and over 8.2 per cent. for first births.

LEGITIMATE BIRTHS, 1934-38.—PERCENTAGE OF STILL TO LIVING.

Age of Mother, in Years.All Births.First Births.Percentage of Still to Living.
Living.Still.Living.Still.All Births.First Births.
Under 204,180783,594701.871.95
20 and under 2529,11159217,6084342.032.46
25 and under 3039,5081,01215,5365672.563.65
30 and under 3527,0238266,2443133.065.01
35 and under 4014,2775781,8491394.057.52
40 and over5,277329425356.238.24
    Totals119,3763,41545,2561,5582.863.44

The next table shows the percentage of still-births to living births according to nativity order of legitimate births registered in the five years 1934-38. The column for mothers of all ages shows a fairly definite gradation, the second child having the best chance of being born alive, and the probability of a still-birth increasing thereafter.

LEGITIMATE BIRTHS, 1934-38.—PERCENTAGE OF STILL TO LIVING.

Nativity Order.Living Births.Still-births.Percentage of Still to Living.
Mothers of All Ages.Mothers aged 35-40.Mothers of All Ages.Mothers aged 35-40.Mothers of All Ages.Mothers aged 35-40.
First45,2561,8491,5581393.447.52
Second30,2002,344540851.793.63
Third18,1552,696429942.363.49
Fourth10,3342,243295762.853.39
Fifth6,0251,660203543.373.25
Sixth3,5511,135115393.243.44
Seventh2,28988981263.542.92
Eighth1,35058156194.153.27
Ninth85537642144.913.72
Tenth58954942177.136.83

It will be observed that the rates shown in the column for mothers aged 35-40 are, up to the fourth child, materially higher than the rates for all mothers. From the seventh child onwards the reverse holds due no doubt to the preponderance of mothers aged 40 and over. The figures suggest that the age of the mother is probably a more important factor contributing to the still-birth rate than the number of previous accouchements, and that the cause of the steady increase noted in the case of mothers of all ages—from the second child upwards—is to be found in the fact of increasing age rather than in the number of previous issue. The special risks that attend a first birth account for the relatively high figures shown for first births, while the influence of increasing age is particularly assertive in respect of first births to mothers aged 35-40.

MAORI BIRTHS.

The number of births of Maoris registered with Registrars of Maori Births and Deaths during 1938 was 3,625 (1,904 males, 1,721 females). In addition, 68 births (35 males and 33 females) recorded as of Maori race were registered under the main Act, making a total of 3,693 Maori births for the year. Although this number represents a decrease of 278 as compared with the previous year (with a consequent fall in the birth-rate from 46.64 to 42.37 per 1,000 of Maori population) the Maori birthrate in 1938 was more than double the non-Maori birth-rate (17.93 per 1,000). Registrations in each of the last five years were as follows:—

Year.Number of Maori Births.Rate per 1,000 of Mean Population.
Males.Females.Total.
1,9341,5761,4052,98138.10
1,9351,7591,4923,25140.36
1,9361,8121,8183,63043.79
1,9372,0601,9113,97146.64
1,9381,9391,7543,69342.37

There is reason to believe that the number of Maori births is somewhat understated, and that both number and rate are actually higher than shown above. For population purposes, half-castes and persons between half and full blood rank as Maoris; but it is not always possible to ensure that this practice is followed in the registration of births (and of deaths).

SUBSECTION B.—MARRIAGES.

INTRODUCTORY.

MARRIAGE may be solemnized in New Zealand only on the authority of a Registrar's certificate, either by a person whose name is on the list of officiating ministers under the Marriage Act, or before a duly appointed Registrar or Deputy Registrar of Marriages. Marriage by an officiating minister can be solemnized only between 8 o'clock in the forenoon and 8 o'clock in the evening. Marriage before a Registrar can be celebrated at any time during the hours the office of the Registrar is open for the transaction of public business. Prior to the passing of the Marriage Amendment Act, 1920, the limits in all cases were 8 a.m. and 4 p.m.

Notice of intended marriage must be given to a Registrar of Marriages by one of the parties to the proposed marriage, and one of the parties must have resided for three full days in the district within which the marriage is to be solemnized. In the case of a person under twenty-one years of age, not being a widow or widower, the consent of parent or guardian is necessary before the Registrar's certificate can be issued. A schedule to the Guardianship of Infants Act, 1926, sets out the person or persons whose consent is required in various circumstances. In cases where double consent is required, section 8 provides for dispensing with the consent of one party if this cannot be obtained by reason of absence, inaccessibility, or disability. In similar cases where the consent of only one person is necessary, consent may be given by a Judge of the Supreme Court. Consent of the Court may also be given in cases of refusal by any person whose consent is required.

If a declaration is made in any case that there is no parent or lawful guardian resident in the Dominion, then a certificate may be issued by the Registrar (without the necessity of Court proceedings) after the expiration of fourteen days following the date on which the notice of intended marriage was given.

The system of notice and certificate has operated in New Zealand since 1855. Officiating ministers and Registrars are required to send to the Registrar-General returns of all marriages solemnized, and as the returns come in they are checked off with the entries in the Registrars' lists of notices received and certificates issued. In case of the non-arrival of a marriage return corresponding to any entry in the list of notices, inquiries are made as to whether solemnization has been effected.

The marriage of a man with his deceased wife's sister was legalized in New Zealand in the year 1881, and the marriage of a woman with her deceased husband's brother in 1901. Marriage with a deceased wife's niece or a deceased husband's nephew was rendered valid in 1929.

An important provision is contained in section 7 of the Marriage Amendment Act, 1920, which reads as follows:—

  1. Every person commits an offence against this Act, and is liable on summary conviction to a fine of one hundred pounds, who—

    1. Alleges, expressly or by implication, that any persons lawfully married are not truly and sufficiently married; or

    2. Alleges, expressly or by implication, that the issue of any lawful marriage is illegitimate or born out of true wedlock.

  2. "Alleges" in this section means making any verbal statement, or publishing or issuing any printed or written statement, or in any manner authorizing the making of any verbal statement, or in any manner authorizing or being party to the publication or issue of any printed or written statement.

  3. A person shall not be deemed to make an allegation contrary to the provisions of this section by reason only of using in the solemnization of a marriage a form of marriage service which at the commencement of this Act was in use by the religious denomination to which such person belongs, or by reason only of the printing or issue of any book containing a copy of a form of marriage service in use at the commencement of this Act by any religious denomination.

An amendment to the Marriage Act in 1933 prohibited the marriage of persons under the age of sixteen years, and also made provision enabling women to become officiating ministers for the purposes of the Marriage Act.

Particulars regarding divorce will be found at the close of this subsection.

NUMBERS AND RATES.

The movement of the marriage-rate since 1855 is shown by the diagram on p. 86. The numbers and rates of marriages during each of the last twenty years are here given:—

Year.Number.Rate per 1,000 of Population.
1,9199,5198.33
1,92012,17510.21
1,92110,6358.69
1,9229,5567.64
1,92310,0707.91
1,92410,2597.91
1,92510,4197.85
1,92610,6807.90
1,92710,4787.63
1,92810,5377.58
1,92910,9677.80
1,93011,0757.78
1,9319,8176.81
1,9329,8966.81
1,93310,5107.18
1,93411,2567.64
1,93512,1878.23
1,93613,8089.25
1,93714,3649.55
1,93815,32810.09

The low rates for 1931 and 1932 are indicative of the effect of the period of financial stringency and depression. The partial recovery in 1933 probably reflects an acceptance of, or an adjustment to, the changed conditions. The recovery continued in 1934, accompanying an improving trend in economic conditions. In the years 1935, 1936, and 1937, the outlook was very much brighter, and consequently a further impetus was given to the marriage-rate, while in 1938 the highest rate ever recorded in New Zealand, with the exception of the post-war year 1920, was established. The number of marriages during 1938 creates a new record for the Dominion and represents an increase of 6 per cent. over the previous year.

STANDARDIZED MARRIAGE-RATE.

In a country like New Zealand where the age-constitution of the population has altered considerably, the crude marriage-rate based on the total population does not disclose the true position over a period of years. Even if only the unmarried (including widowed and divorced) population over twenty in the case of men and over fifteen in the case of women be taken into account, the rates so ascertained would still not be entirely satisfactory for comparative purposes as between various periods, owing to differences in sex and age constitution, divergences between rates for different age-groups, and variations in the proportions of marriageable persons in the community. A better plan is to ascertain the rate among unmarried females in each age-group and to standardize the results on the basis of the distribution of the unmarried female population in a basic year.

This has been done for each census year from 1881 to 1936, the year 1911 being taken as the standard. The course of the standardized rates as shown in the following table varies materially from that of the crude rates:—

Year.Marriage-rate per 1,000.Index Numbers of Marriage-rates. (Base: 1911 = 100.)
Total Population.Unmarried Female Population 15 and over.Total Population.Unmarried Female Population 15 and over.
Crude.Standardized.Crude.Standardized.
1,8816.673.980.776125137
1,8866.055.160.46993102
1,8916.048.350.3698285
1,8966.847.348.0788081
1,9017.850.249.0908583
1,9068.555.653.7989491
1,9118.759.159.1100100100
1,9167.550.754.3868692
1,9218.759.763.9100101108
1,9267.953.162.69190106
1,9369.360.569.8107102118

The index numbers of the three classes of rates over the series of years enable the effect of standardization to be shown at a glance. Comparing, for instance, the years 1881 and 1911, it is seen that whereas the crude rate per 1,000 of total population was nearly one-fourth less in 1881 than in 1911, the crude rate when only the unmarried female population of fifteen or over is considered was one-fourth greater, and the standardized rate more than one-third greater. Similar though less noticeable results are recorded for years subsequent to 1881.

The standardized rate for 1936 is considerably higher than that recorded for any other census year subsequent to 1881.

RATES OF VARIOUS COUNTRIES.

A comparison of the latest available marriage-rates per 1,000 of mean population is given for various countries in the next table.

Country.Quinquennium.Average Yearly Rate.
* Four years' average.
United States of America1933-3710.23
Union of S. Africa1932-369.84
Germany1934-389.66
Palestine*1935-389.37
Denmark1934-389.23
Rumania1934-389.08
New Zealand1934-388.95
England and Wales1934-388.63
Hungary1934-388.60
Australia1934-388.50
Sweden1934-388.43
Latvia1934-388.36
Estonia1934-388.34
Bulgaria1934-388.25
Poland1934-388.17
Czechoslovakia1933-378.02
Japan1933-378.01
Scotland1934-387.66
Chile1934-387.62
Norway1934-387.62
Belgium1934-387.58
Finland1933-377.56
Lithuania1934-387.48
Netherlands1934-387.48
Italy1934-387.47
Switzerland1934-387.39
Yugoslavia1933-377.37
Canada1933-377.01
Northern Ireland1934-386.74
France1934-386.72
Argentina1934-386.64
Greece1933-376.57
Portugal1934-386.56
Uruguay1933-375.63
Eire1934-384.94

DISTRIBUTION OF MARRIAGES OVER THE YEAR.

Annual averages for the decade 1929-38 give marriages as follows: March quarter, 2,766; June quarter, 3,325; September quarter, 2,536; December quarter, 3,294.

It would appear that the advantages offered by the holiday periods are responsible for the Easter and Christmas seasons being regarded as the most suitable for the celebration of marriage, and, judging by the quarterly figures for an average year, Easter would appear to predominate slightly.

The marriages contracted in each month of 1938, commencing with January, were as follows: 1,138, 1,094, 1,067, 2,193, 946, 1,404, 1,031, 1,004, 1,007, 1,334, 1,102, 2,008: total for year, 15,328.

The 1938 proportions per cent. of the total marriages for the various days of the week were: Sunday, 0.3; Monday, 10.5; Tuesday, 9.3; Wednesday, 20.8; Thursday, 11.7; Friday, 7.7; Saturday, 39.7

The increasing popularity of Saturday has been in evidence over a comparatively lengthy period, and added impetus would appear to have been given to this movement by the introduction of the “five-day” week. Between the years 1927 and 1937 the proportion of marriages celebrated on that day increased from 12.8 per cent. to 32.2 per cent., and in 1938 the proportion of Saturday marriages rose to 39.7 per cent. Wednesday marriages, on the other hand, have declined from 39.5 per cent. to 20.8 per cent. during the last ten years.

CONJUGAL CONDITION.

The total number of persons married during the year 1938 was 30,656, of whom 27,879 were single, 1,398 widowed, and 1,379 divorced. The figures for each of the last ten years, but showing the sexes separately, are given in the table following:—

Year.Single.Widowed.Divorced.Total Persons married.
Bridegroom.Bride.Bridegroom.Bride.Bridegroom.Bride.
1,9299,94410,17972145830233021,934
1,93010,03810,23070947632836922,150
1,9318,8569,02664441931737219,634
1,9328,9309,16264237632435819,792
1,9339,5199,71065640033540021,020
1,93410,19810,44970640035240722,512
1,93511,04411,27672046442344724,374
1,93612,57912,82878845744152327,616
1,93713,05413,29776349154757628,728
1,93813,77614,10385354569968030,656

The position is more easily seen by studying the percentages given in the next table:—

Year.Bridegrooms.Brides.
Single.Widowed.Divorced.Single.Widowed.Divorced.
Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
1,92990.676.582.7592.814.183.01
1,93090.646.402.9692.374.303.33
1,93190.216.563.2391.944.273.79
1,93290.246.493.2792.583.803.62
1,93390.576.243.1992.383.813.81
1,93490.606.273.1392.833.553.62
1,93590.625.913.4792.523.813.67
1,93691.105.713.1992.903.313.79
1,93790.885.313.8192.573.424.01
1,93889.875.574.5692.013.554.44

During the period 1929-38 the number of divorced persons remarrying increased from 29 per 1,000 persons married to 45, an appreciable advance. The fall in the number of widowed persons remarrying—from 54 per 1,000 persons married in 1929 to 46 per 1,000 in 1938—is due probably to the higher figure in the earlier year having been an indirect outcome of the 1914-18 war and, to a certain extent, of the influenza epidemic.

The relative conjugal condition of bridegrooms and brides for each of the last ten years is next given:—

Year.Marriages between Bachelors andMarriages between Widowers andMarriages between Divorced Men and
Spinsters.Widows.Divorced Women.Spinsters.Widows.Divorced Women.Spinsters.Widows.Divorced Women.
1,9299,478234232477192522243246
1,9309,540245253446191722444044
1,9318,379217260415159702324342
1,9328,496195239419147762473443
1,9339,068187264411168772314559
1,9349,737185276447177822653849
1,93510,551219274442195832835090
1,93612,032193354477218933194676
1,93712,4452333764592059939353101
1,93813,11722343648524812050174124

Taking the whole period covered by the foregoing table, it is found that, while 4,068 divorced men remarried, the corresponding number for women was 4,462. In the case of widowed persons, however, in spite of the fact that widows greatly exceed widowers in the population, only 4,486 widows remarried, as compared with 7,202 widowers. It would appear that in the case of divorced persons women are more likely to remarry than men, while in the case of the widowed the converse holds.

Included amongst the widows in 1938 were ten women, and amongst the widowers thirteen men, who elected to go through the form of marriage with other persons under the protection of the provisions of section 224, subsection (5), of the Crimes Act, which reads: “No one commits bigamy by going through a form of marriage if he or she has been continually absent from his or her wife or husband for seven years then last past, and is not proved to have known that his wife or her husband was alive at any time during those seven years.”

During the last ten years the number of persons married under the protection of the above subsection was 252, comprising 96 men and 156 women.

AGES OF PERSONS MARRIED.

Of the 30,656 persons married in 1938 3,000, or 10 per cent., were under twenty-one years of age; 9,839, or 32 per cent., were returned as twenty-one and under twenty-five; 9,715, or 32 per cent., as twenty-five and under thirty; 5,659, or 18 per cent., as thirty and under forty; and 2,443, or 8 per cent., as forty years of age or over. The following table relates to the year 1938:—

Age of Bridegroom, in Years.Age of Bride, in Years.Total Bridegrooms.
Under 21.21 and under 25.25 and under 30.30 and under 35.35 and under 40.40 and under 45.45 and over.
Under 2127610319    398
21 and under 251,2422,093561637 13,967
25 and under 308392,6471,89831852915,764
30 and under 351987659584641202382,536
35 and under 403219435929217046221,115
40 and under 45748831211116929468
45 and over822731171731805071,080
Total brides2,6025,8723,9511,37563332756815,328

There have been some considerable changes in the proportions of persons marrying at the various age-periods. To illustrate the extent to which these figures have varied since the beginning of the century, a table is given showing the proportions of men and women married at each age-period to every 100 marriages in quinquennia from 1900 to 1934, and also for the years 1935, 1936, 1937, and 1938:—

Period.Under 21.21 and under 25.25 and under 30.30 and under 35.35 and under 40.40 and under 45.45 and over.Totals.
Males.
1900-041.6724.7538.4218.638.053.584.90100.00
1905-091.7923.4239.2518.788.473.384.91100.00
1910-141.9422.0438.0420.758.543.904.79100.00
1915-193.2621.4033.0419.6710.475.027.14100.00
1920-243.1324.6632.2117.7310.245.436.60100.00
1925-293.4928.0434.4914.337.704.487.47100.00
1930-343.4627.2837.0215.146.103.617.39100.00
1,9352.8525.0738.7416.776.573.326.68100.00
1,9362.6825.3038.6016.656.623.266.89100.00
1,9372.7625.8638.1416.346.813.276.82100.00
1,9382.6025.8837.6116.547.273.057.05100.00
Females.
1900-0416.9239.7527.339.263.401.531.81100.00
1905-0916.1537.1028.5310.184.211.802.03100.00
1910-1415.6034.9028.5211.575.042.052.32100.00
1915-1915.2135.0126.1711.396.062.983.18100.00
1920-2415.9935.4726.2110.665.532.983.16100.00
1925-2918.6137.8823.678.934.652.823.44100.00
1930-3418.6738.5124.798.223.852.403.56100.00
1,93517.0337.5727.278.723.961.903.55100.00
1,93616.5138.6526.558.893.841.953.61100.00
1,93717.4737.8726.279.003.931.943.52100.00
1,93816.9838.3125.788.974.132.133.70100.00

A perusal of the above table reveals the fact that greater proportions of marriages are now being celebrated at both the younger and the older age-groups. The 1935 and 1936 figures, however, illustrate the postponement of a number of marriages in the earlier years of the depression, resulting in a proportion of marriages falling in later groups than would normally have been the case.

For many years the average age (arithmetic mean) at marriage for both males and females, more particularly the latter, showed a tendency to increase. However, after reaching its maximum in the three years 1917, 1918, and 1919, the average age subsequently decreased considerably. For reasons already mentioned, the average age is tending to increase again in more recent years. The figures for each of the last ten years are given.

MEAN AGE AT MARRIAGE (IN YEARS).

Year.Bridegrooms.Brides.
1,92929.8026.10
1,93028.4726.13
1,93129.8326.02
1,93229.7126.04
1,93329.7225.83
1,93429.8626.15
1,93529.9426.27
1,93629.9726.32
1,93729.9326.26
1,93830.0326.37

The average ages of bachelors and spinsters at marriage are considerably lower than those shown in the preceding table, which covers all parties and is naturally affected by the inclusion of remarriages of widowed and divorced persons. The average ages of grooms and brides of the various conditions in each of the last five years were:—

Year.Bridegrooms.Brides.
Bachelors.Divorced.Widowers.Spinsters.Divorced.Widows.
 Years.Years.Years.Years.Years.Years.
1,93428.1741.2949.0725.0635.9244.64
1,93528.1840.0550.2825.0836.5845.35
1,93628.2941.3050.4725.2035.7946.86
1,93728.2440.9050.9825.0836.4846.13
1,93828.2040.7650.7925.1136.3146.60

The foregoing figures give the average age at marriage, but these do not correspond with the modal or popular age, if the age at which the most marriages are celebrated may be so termed. For several years prior to 1918 age 26 held pride of place for bridegrooms and age 21 for brides. The latter has continued right through to 1938 without alteration, but in the case of bridegrooms the most popular age has varied, and for 1938 stands at 25.

MARRIAGES OF MINORS.

Of every 1,000 men married in 1938, 26 were under twenty-one years of age, while 170 in every 1,000 brides were under twenty-one.

In 276 marriages in 1938 both parties were given as under twenty-one years of age, in 2,326 marriages the bride was returned as a minor and the bridegroom as an adult, and in 122 marriages the bridegroom was a minor and the bride an adult.

Year.Age in Years.Totals.
16.17.°18.19.20.Number.Rate per 100 Marriages.
Bridegrooms.
1,93424261162033513.12
1,935 735992063472.85
1,936 4431182053702.68
1,93716481142273962.76
1,938 13441222193982.60
Brides.
1,934731953985687181,95217.34
1,935862034095837952,07617.03
1,936871994396928622,27916.51
1,9371002264857259742,51017.47
1,938932605347349812,60216.98

The proportion of minors among persons marrying declined continuously from 1932 to 1936, probably a result of the depression. It will be observed that the number of marriages of minors shows a material increase in 1936; but that the rate per 100 marriages showed a continuation of the fall.

MARRIAGES BY MINISTERS OF VARIOUS DENOMINATIONS.

Of the 15,328 marriages registered in 1938, Church of England clergymen officiated at 4,128, Presbyterians at 4,056, Methodists at 1,645, and Roman Catholics at 1,775, while 2,624 marriages were celebrated before Registrars.

The following table shows the proportions of marriages by ministers of the principal denominations in the last ten years:—

Denomination.Percentage of Marriages.
1929.1930.1931.1932.1933.1934.1935.1936.1937.1938.
Church of England27.1826.9325.8225.5425.4725.5226.0726.1026.5226.93
Presbyterian27.1326.4725.7126.6326.7326.5826.7926.9426.8626.46
Methodist10.199.899.5910.2710.5210.5010.4310.5510.7410.73
Roman Catholic11.3411.0610.7310.8111.0611.5011.4011.6511.7411.58
Other denominations4.845.165.535.846.287.928.397.617.277.18
Before Registrars19.3220.4922.6220.9119.9417.9816.9217.1516.8717.12
  Totals100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00

The foregoing figures must not be taken as an exact indication of the religions of the parties married, as it does not necessarily follow that one or both of the parties are members of the Church whose officiating minister performed the ceremony, and persons married before Registrars may belong, in greater or lesser proportion, to any or none of the denominations.

NUMBER OF OFFICIATING MINISTERS.

The number of names on the list of officiating ministers under the Marriage Act is (August, 1939) 2,248, and the denominations to which they belong are shown hereunder:—

Denomination.Number.
Church of England478
Presbyterian Church of New Zealand418
Roman Catholic Church393
Methodist Church of New Zealand311
Salvation Army125
Baptist86
Associated Churches of Christ32
Congregational Independent32
Brethren28
Seventh-day Adventist17
Latter-day Saints37
Lutheran Church2
Evangelical Lutheran Concordia Conference5
Apostolic Church9
Commonwealth Covenant9
Church of Christ4
Hebrew Congregation4
Liberal Catholic Church6
Unitarian4
Assemblies of God15
Spiritualist Churches of New Zealand13
Ratana Church of New Zealand148
Ringatu Church45
Church of the Seven Rules of Jehovah2
Pentecostal3
Others22
    Total2,248

The Ringatu Church, the Church of the Seven Rules of Jehovah, and the Ratana Church of New Zealand are Maori denominations.

MAORI MARRIAGES.

In cases where both parties to a marriage are of the Native race there is no necessity under the Marriage Act to comply with the provisions of that Act, though the parties are at liberty to take advantage thereof. Considerable inconvenience, however, was found to exist on account of the non-registration of Maori marriages, and a section was inserted in the Native Land Act, 1909, and re-enacted in 1931, whereby it was laid down that Maori marriages must be celebrated either under the provisions of the Marriage Act or in the presence of a registered officiating minister, but without complying with the other requirements of the Marriage Act. Ministers solemnizing the latter class of marriages must send returns to the Registrar-General.

Returns of 631 marriages in which both parties were of the Native race were received during the year 1938. The figures for each of the last ten years are as follows:—

Year.Under Native Land Act.Under Marriage Act.Totals.
1,929315121436
1,93034574419
1,93135879437
1,93251482596
1,93347879557
1,93444686532
1,93548968557
1,936514126640
1,937498111609
1,938505126631

Maori marriages are not included in the numbers shown elsewhere in this subsection, nor are they taken into account in the computation of marriage-rates.

DIVORCE.

The provisions as to dissolution of marriage are contained in the Divorce and Matrimonial Causes Act, 1928, which consolidated and amended the then existing legislation on the subject.

A brief historical account of divorce legislation will be found in the 1931 issue of the Year-Book; the present position is outlined in the following résumé.

Any married person, domiciled in New Zealand for two or more years at the time of filing the petition, may obtain a divorce on one or more of the following grounds:—

  1. Adultery.

  2. Wilful desertion for three years.

  3. Habitual drunkenness for four years, coupled with (wife's petition) failure to support or habitual cruelty, or with (husband's petition) neglect of, or self-caused inability to discharge, domestic duties.

  4. Sentence of seven years' imprisonment for attempting to murder, or for wounding or doing actual bodily harm to petitioner or child.

  5. Murder of child of petitioner or respondent.

  6. Insanity and confinement as a lunatic for seven out of ten years preceding the petition.

  7. Insanity for seven years, and confinement for three years preceding the petition.

  8. Failure to comply with a decree of Court for restitution of conjugal rights.

  9. Parties have separated under an agreement, written or verbal, which has been in force for three years.

  10. Parties have been separated by a decree of judicial separation or a separation order which has been in force for three years. (An amendment in 1930 removed the restriction imposed by the principal Act—which permitted only New Zealand decrees or orders—and extended the provision to cover similar decrees or orders made in any country.)

  11. Husband guilty of rape, sodomy, or bestiality since marriage.

A deserted wife whose husband was domiciled in New Zealand at the time of desertion is considered, for the purpose of the Divorce and Matrimonial Causes Act, 1928, as retaining her New Zealand domicile. Where a wife petitions on grounds (i) and (j), her New Zealand domicile is retained if her husband was domiciled in the Dominion at the date of the agreement, decree, or order.

The amending Act of 1930 establishes a New Zealand domicile for a wife petitioning for divorce where she has been living apart from her husband for three years, if she has been living in New Zealand for three years preceding the petition, and has the intention of residing in New Zealand permanently.

Figures showing the operations of the Supreme Court in its divorce jurisdiction during each of the last ten years are as follows:—

Year.Dissolution or Nullity of Marriage.Judicial Separation.Restitution of Conjudal Rights.
Petitions filed.Decrees Nisi.Decrees Absolute.Petitions filed.Decrees for Separation.Petitions filed.Decrees for Restitution.
1,9298437186352 130107
1,9308397246201 9679
1,9317666835915110894
1,932785653612518875
1,9338046836481 11877
1,934839762683 19789
1,9358677426531 9480
1,9361,09993384951133104
1,9371,1541,0089174 138107
1,9381,1781,0631,05051145119

In 1,090 of the 1,178 cases covered by divorce petitions filed during 1938 the parties had been married in New Zealand.

The next table gives the grounds (dissolution or nullity cases) of petition. Decrees may relate to petitions filed prior to 1938.

Grounds.Petitions filed.Decrees Nisi granted.Decrees Absolute granted.
Husbands' Petitions.Wives' Petitions.Husbands' Petitions.Wives' Petitions.Husbands' Petitions.Wives' Petitions.
Adultery1218288739166
Desertion961168312386117
Drunkenness, with cruelty, failure to maintain, &c. 5 4 6
Insanity546293
Malformation12 2 2
Non-compliance with order for restitution of conjugal rights802980307125
Separation for not less than three years240395204366184388
Non-consummation111111
Totals544634462601442608

The figures shown for decrees nisi include cases where both nisi and absolute decrees were granted during the year, while those for decrees absolute cover all such granted during the year whether the antecedent decree nisi was granted in 1938 or in a previous year. A small increase of 2 per cent. over the previous year is recorded for the total of petitions filed in 1938.

In 388 of the 1,178 cases where petitions for dissolution were filed during 1938 there was no living issue of the marriage. The number of living issue was 1 in 338 cases, 2 in 224 cases, 3 in 106 cases, and 4 or more in 122 cases.

The table which follows shows the duration of marriage in all cases for which petitions for dissolution were filed in the five years 1934 to 1938:—

Duration of Marriage, in Years.Husbands' Petitions.Wives' Petitions.
1934.1935.1936.1937.1938.1934.1935.1936.1937.1938.
Under 556507369565045545447
5 and under 10114123159158136128143197157176
10 and under 159986122118128116109129166166
15 and under 206462789793798187101115
20 and under 30405273809357758110893
30 and over14303124362211152236
Not stated    2    1
Totals387403536546544452464563608634

The number of children affected by the divorce petitions of their parents during each of the last five years was as follows: 1934, 1,216; 1935. 1,286; 1936, 1,667; 1937, 1,725; and 1938, 1,706.

SUBSECTION C.—DEATHS.

Compulsory registration of deaths was instituted in New Zealand in 1855. As in the case of births, a system of non-compulsory registration had operated since 1848.

Until the year 1876 the only information provided for in the death-registration entry was the date, place, and cause of death, and the name, sex, age, and occupation of deceased. The Registration of Births and Deaths Act, 1875, required information to be recorded as regards parentage, conjugal condition, and issue of deceased. Particulars as to burial had also to be entered, as well as more detailed information regarding cause of death. Subsequent amendments to the Act have made it requisite to give additional information concerning issue, and, in the case of married males, age of widow.

Every death occurring in New Zealand is required to be registered within three days after the day of the death if in a city or borough, or seven days in any other case. There is a penalty up to £10 for neglect, the undertaker in charge of the funeral being solely responsible for registration. Prior to 1913 the undertaker was primarily responsible for registration, but, in addition, the occupier of the house and every other person present at the death were also responsible parties.

The law does not impose any limit of time after which a death may not be registered as it does in the case of a birth. It is not necessary to effect a death-registration entry in the case of a still-born child, though an entry must be made in the register of births.

Any person burying, or permitting or taking part in the burial of, the body of any deceased person without a certificate of cause of death signed by a duly registered medical practitioner, a Coroner's order to bury the body, or a Registrar's certificate of registration of the death, renders himself liable to a fine of £10.

Prior to 1937 it was incumbent upon a medical practitioner to give the certificate of cause of death to the person required to supply information for the purpose of registering the death (the undertaker or other person in charge of the burial). By section 11 of the Statutes Amendment Act, 1936, however, the medical practitioner is now required to deliver the certificate forthwith direct to the Registrar of the district in which the death occurred. It is now the duty of the medical practitioner, on signing a certificate of cause of death, to give written notice of the signing to the undertaker or other person having charge of the burial.

In the new form of medical certificate introduced by this amendment, provision is made for an additional statement to be filled in by the medical practitioner in any case where, in his opinion, the death has occurred in any circumstances of suspicion. The practitioner is required to report such case forthwith to the Coroner, and an indication that this has been done must be made in the space provided on the certificate.

NUMBERS AND RATES.

The following table shows the number of deaths and the death-rate per 1,000 of the mean population during each of the last twenty years:—

Year.Number.Rate per 1,000.
1,91910,8089.46
1,92012,10910.15
1,92110,6828.73
1,92210,9778.77
1,92311,5119.04
1,92410,7678.30
1,92511,0268.30
1,92611,8198.74
1,92711,6138.45
1,92811,8118.50
1,92912,3148.76
1,93012,1998.57
1,93112,0478.35
1,93211,6838.04
1,93311,7017.99
1,93412,5278.50
1,93512,2178.25
1,93613,0568.75
1,93713,6589.08
1,93814,7549.71

With the exception of 1918 (the year of the great influenza epidemic) the number of deaths registered during 1938 was the largest ever recorded in New Zealand. Except for a slight break in 1935, the crude death-rate has risen steadily from the low point of 7.99 per 1,000 of mean population in 1933 until in 1938 the comparatively high rate of 9.71 was reached. This figure has been exceeded on only two occasions during the last thirty years—viz., in 1918 and 1920.

A long-range review of the death-rate is afforded by the graph on p. 86.

New Zealand has been noted for many years for its favourable death-rate. In the early history of the country the high proportion of immigrants to total population contributed very materially towards the establishment of a comparatively low death-rate. The effect of immigration in causing a high ratio of persons in the early adult ages—at which ages mortality experience is most favourable—more than counterbalanced the effect on the death-rate of the hazards inherent in the pioneering activities typical of the economy of the country in those days. The influence of immigration on vital statistics has, however, waned very considerably in the later decades.

The favourable climate of the country has always been an important factor contributing to a relatively low death-rate, while the high efficiency of health services has assisted considerably towards maintaining the Dominion's enviable record in respect of its death-rate. The progress of the health service has been reflected in, inter alia, a relatively low incidence of serious outbreaks of the more important epidemic diseases (which were much more prevalent in the early days of colonization), and in a greatly lowered infant mortality rate.

An even more potent force than a heightened efficiency in health services has, however, been operative for many years past. As observed in the subsection on Births, the general trend of the birth-rate has been downwards for several decades. The initial effect of a falling birth-rate on the mortality experience of a population is to lower the death-rate, the age constitution becoming more favourable towards a low death-rate, since there are fewer infants and a relatively higher ratio of persons of the younger adult ages. That this has been a very material factor contributing to New Zealand's very low death-rate is obvious; for a death-rate of 7.99 per 1,000—the low point which was reached in 1933—would connote an expectation of life of almost 125 years if it applied to a population of stable age-distribution. The increase in the crude death-rate since 1933 is indicative that the age constitution of the population has passed the optimum distribution from the viewpoint of maintaining a very low level of death-rates. This trend must continue for some years to come since the present death-rate of 9.71 per 1,000 is still much lower than could be regarded as possible in a population stable in respect of age constitution, and it is reasonable to expect further increases in death-rates. Further evidence that the age constitution of the population has become less favourable towards the maintenance of the extremely low death-rates of the past twenty years is afforded by the statistics of “standardized” death-rates quoted later in this subsection. The death-rate for 1938 standardized on the age constitution of 1911, was 7.66 per 1,000, as compared with the crude rate (reflecting the 1938 age constitution of the people) of 9.71 per 1,000.

The death-rates of males and females for the last ten years are shown separately in the next table.

Year.Deaths per 1,000 of Population.Male Deaths to every 100 Female Deaths.Male Rate expressed as Index Number of Female Rate (= 100).
Males.Females.Totals.
1,9299.677.828.76128124
1,9309.427.698.57127122
1,9319.087.598.35124120
1,9328.597.478.04119115
1,9338.747.237.99123121
1,9349.267.738.50124120
1,9358.957.528.25122119
1,9369.458.038.75121118
1,9379.858.289.08122119
1,93810.718.689.71127123

DISTRIBUTION OF DEATHS OVER THE YEAR.

An examination of the total number of deaths registered in each quarter of the decade 1929-38 gives the following annual averages: March quarter, 2,765; June quarter, 3,041; September quarter 3,656; and December quarter, 3,155.

A classification according to month of death shows that in 1938 the months during which the greatest number of deaths occurred were July, August, September, and October, with totals of 1,548, 1,544, 1,360, and 1,335 respectively. Excluding December, a proportion of deaths occurring in that month not being registered till January, April had the least number of deaths (987), followed by February and January, with 1,044 and 1,066 respectively.

The least number of deaths on any one day, again excluding December, was 21, this number occurring on the 7th April. The greatest number (67) occurred on the 4th August.

AGES AT DEATH.

The deaths registered during the year 1938 are tabulated below according to age:—

Ages.Males.Females.Totals.
Under 1 month397261658
1-2 months564197
3-5 ”494998
6-11 ”6850118
1 year7265137
2 years532780
3 years312253
4 years262349
5-9 years11679195
10-14 years9275167
15-19 years15478232
20-24 years152121273
25-29 years171155326
30-34 years189133322
35-39 years203173376
40-44 years262200462
45-49 years306258564
50-54 years491352843
55-59 years7054631,168
60-64 years7755771,352
65-69 years9116761,587
70-74 years9147651,679
75-79 years8057411,546
80-84 years6946051,299
85-89 years389348737
90-94 years132135267
95-99 years333063
100 years112
101 years112
102 years..11
103 years..11
    Totals8,2486,50614,754

The following table indicates the changes that have occurred over a period of fifty years in the age-distribution of persons dying:—

Ages, in Years.Number of Deaths.Percentage to Total.
1888.1898.1908.1918.1938.1888.1898.1908.1918.1938.
Under 11,3361,5101,7611,25297123.4120.8419.477.656.58
1 and under 55204104676663199.115.665.174.072.16
5 102701661692901954.732.291.871.771.32
10 151481421512221672.591.961.671.361.13
15 202212631884832323.873.632.082.951.57
20 252723203457512734.774.423.824.591.85
25 302482904261,2463264.354.004.717.622.21
30 352352693311,4163224.123.713.668.652.18
35 402562713751,3133764.493.744.158.022.55
40 452672823269864624.683.893.606.033.13
45 502903043898975645.084.204.305.483.82
50 552903283958148435.084.534.374.975.72
55 602764414107251,1684.846.094.534.437.92
60 652634934918231,3524.616.815.435.039.16
65 702375747188661,5874.167.927.945.2910.76
70 752134157759991,6793.735.738.576.1111.38
75 801583866791,1371,5462.775.337.516.9510.48
80 and over2063806471,4782,3723.615.257.159.0316.08
Unspecified2..................
Totals5,7087,2449,04316,36414,754100.00100.00100.00100.00100.00

Some remarkable changes in the age-distribution of persons dying have occurred during the last fifty years. The total deaths in 1938 were over two and a half times as numerous as in 1888; but the number of deaths under one year in 1938 was considerably less than the corresponding number recorded in 1888. This is an eloquent tribute to the efficacy of the steps taken to preserve infant life (a subject which is dealt with later on in this subsection), as over the fifty-year period the annual number of births increased by 44 per cent. The 1918 influenza epidemic took a heavy toll of life, especially in the 15 to 50 age-groups. The effect of this is clearly seen in the deviation in that year from the normal downward trend of the proportions at these age-groups.

The enormous reduction in deaths from the principal epidemic diseases of early childhood over a long period of years has resulted in a greater proportion of children surviving to adult life. A similar, though not quite so pronounced, decline in the fatal incidence of tuberculosis, which is largely confined to early and middle adult life, has also tended to ensure a greater proportion of persons attaining old age.

The movement in the proportions of deaths occurring at the different age-groups is very striking. The results of two main factors are illustrated. First, the health measures, already commented upon, which have achieved an immense saving of young life; and, second, the exposure of a greater proportion of the population to the diseases of old age.

There appears to be little likelihood of any further drastic reduction in the death-rate from the diseases of infancy and early adult life; and, unless public-health measures meet with even greater success in the prolongation of the human life-span through the amelioration of the degenerative diseases of old age, the death-rate must continue to advance fairly rapidly.

During the earlier period covered by the next table the fall in the death-rate was common to all ages and to both sexes. In comparison with 1931, however, the 1938 figures reveal increases in the rates for infancy and early childhood and for the groups beyond middle age, while the intervening age-groups (15 to 55) have recorded slight decreases.

The table is further of interest as showing that the female rate for the various age-groups is almost invariably lower than the male rate. The rapid increase in the death-rate at successive age-groups is well exemplified.

DEATH-RATES PER 1,000, BY AGE-GROUPS.

Year.Under 1.1 and under 5.5 and under 15.15 and under 25.25 and under 35.35 and under 45.45 and under 55.55 and under 65.65 and under 75.75 and under 85.85 and over.
Males.
1,90178.606.811.893.523.976.1611.9423.1250.59126.26280.00
1,91163.485.361.912.423.876.2711.0220.8353.22116.21281.21
1,92153.104.781.852.443.565.559.6119.9646.17102.84257.70
1,93138.212.831.352.282.774.648.6918.2544.18111.00269.13
1,93842.803.851.602.252.854.708.8919.6547.28117.11278.00
Females.
1,90163.875.501.643.584.726.7010.6219.4443.32107.02285.30
1,91148.745.371.482.764.344.928.3817.8940.44104.84221.90
1,92142.314.491.312.343.384.468.0014.8836.8194.42230.05
1,93125.672.470.971.853.203.816.8415.3636.8398.31270.44
1,93831.233.001.241.522.393.726.7214.7537.92102.75235.00
Both Sexes.
1,90171.406.171.773.554.336.4011.3721.6347.87117.97282.52
1,91156.315.361.702.584.095.649.8219.5547.74111.73251.81
1,92147.824.641.582.393.475.108.8517.5941.9099.00245.21
1,93132.152.651.172.072.984.227.8016.8840.56105.02269.75
1,93837.153.431.421.892.634.207.8017.2842.64109.85255.48

The average (arithmetic mean) age at death of persons of either sex in each of the last ten years was as follows:—

Year.Males.Females.
1,92953.1554.27
1,93054.2354.47
1,93154.1455.48
1,93255.7956.05
1,93356.1756.45
1,93456.9957.75
1,93556.9557.79
1,93657.1257.70
1,93757.7058.82
1,93856.1358.10

EXPECTATION OF LIFE.

For reference to, or records of, the various series of life-tables constructed on New Zealand's mortality experience, ranging from 1880 to 1922, recourse may be had to issues of the Year-Book for 1915, 1926, and 1927, and to the General Report on the Census of 1921. The following data on expectation of life or average after-lifetime, which are quoted by courtesy of the compilers, are from a life-table constructed by L. I. Dublin, Ph.D., and A. J. Lotka, D.Sc., of the Metropolitan Life Insurance Co. of New York, U.S.A., and published in the Statistical Bulletin of that company. The table is based upon New Zealand experience of the year 1931, data regarding deaths and age-constitution of the population having been supplied by the Census and Statistics Department. As the 1931 census was not taken, details of age-distribution were derived from the annual inter-censal age-estimates, with a consequent potentiality of error.

Age.Males.Females.
065.0467.88
563.3565.30
1058.7560.67
1554.1155.88
2049.6151.28
2545.2146.80
3040.7842.45
3536.3738.14
4032.0733.80
4527.8329.45
5023.7325.24
5519.8721.13
6016.2217.30
6512.8613.82
709.8710.63
757.387.88
805.455.63
853.523.60
901.892.00
950.840.97

Expectation of life at age 0 is steadily increasing in New Zealand, and is, so far as is known, higher than that of any other country. Brief figures are quoted:—

Period.Males. Years.Females. Years.
1891-189555.2958.09
1896-190057.3759.95
1901-190558.0960.55
1906-191059.1761.76
1911-191560.9663.48
1921-192262.7665.43
1925-192763.9966.57
1,93165.0467.88

DEATH-RATES OF VARIOUS COUNTRIES.

Country.Quinquennium.Average Rate per 1,000.
* Registration area.
Netherlands1934-388.6
New Zealand1934-388.9
Australia1934-389.5
Canada1934-389.7
Union of South Africa1933-379.7
Uruguay1933-3710.1
Norway1934-3810.2
Denmark1934-3810.7
United States*1934-3811.1
Argentina1934-3811.4
Switzerland1934-3811.5
Germany1934-3811.6
Sweden1934-3811.7
England and Wales1934-3811.9
Finland1933-3712.5
Belgium1934-3812.8
Scotland1934-3813.2
Czechoslovakia1933-3713.4
Lithuania1934-3813.4
Italy1934-3813.8
Bulgaria1934-3813.8
Latvia1934-3814.0
Poland1934-3814.0
Eire1934-3814.1
Northern Ireland1934-3814.2
Hungary1934-3814.5
Estonia1934-3814.8
France1934-3815.3
Greece1933-3715.4
Spain1931-3516.2
Portugal1934-3816.2
Yugoslavia1933-3716.5
Japan1933-3717.5
Palestine.1934-3818.1
Rumania1934-3820.0
Ceylon1934-3824.8
Chile1934-3825.0
Egypt1933-3727.2

After enjoying for many years the enviable reputation of having the lowest death-rate in the world, New Zealand's position at the head of the above list of countries has now been taken by the Netherlands.

An analysis of death-rates by sex and age-groups for various countries shows that, while the Netherlands is the only country to show a lower total death-rate than New Zealand, several other countries as well as the Netherlands also record lower death-rates at certain age-groups. For males, the Netherlands in 1937 (the latest year for which the requisite statistics are available) recorded a lower death-rate than New Zealand for all ages from 10 to 65. The total death-rate for females was lower for New Zealand than for the Netherlands, and the latter country had lower rates for only seven of the sixteen age-groups into which the statistics are divided.

Investigation into the causes of deaths in the two countries suggests diseases of the heart as being responsible for the higher death-rate in New Zealand, this factor being particularly well illustrated in the higher age-groups.

STANDARDIZATION OF DEATH-RATES.

All death-rates quoted previously in this section are crude rates—i.e., those ascertained by applying the total deaths during the year to the mean population for the year.

Crude rates are easily compiled and readily understood, and are consequently generally used. However, changes in the age constitution of a population and, to a lesser extent, changes in sex composition have a material effect on death-rates. This is obvious, for, on the one hand the very young, and on the other hand the very old, are particularly subject to the risk of dying, while females have, generally speaking, lower average death-rates than males. Consequently, differences in crude death-rates as between one period of time and another, or as between one country (or part of a country) and another, reflect not only the incidence of mortality, but also differences in age and sex constitution of populations. A country with an abnormally high proportion of very old people will, other things being equal, have a high death-rate, but this high death-rate does not by any means necessarily imply that the country is relatively unhealthy.

In New Zealand the age and sex constitutions of the people have changed very materially within a comparatively short span of years, so that death-rates for recent years relate to a differently constituted population than do death-rates for earlier years. This factor has had a marked influence on the risks—and causes—of dying. In order to eliminate the effect of changing age constitution from other causes influencing the death-rate, the device of standardization is resorted to. The principle of this method is to compute death-rates on the assumption that the sex and age composition of the population has not varied. A “standard” population is selected, and the mortality experience of any particular year is weighted according to the age-distribution of that standard population.

The standardized death-rates thus calculated for each of a number of countries, or for a number of years for the same country, may then be regarded as indexes to the relative mortalities free from the distortion which might arise through differences in their respective sex or age constitutions.

A system of standardization of death-rates was introduced some years ago in New Zealand the age and sex constitution of the population as disclosed at the census being taken as the basis. The following table gives both recorded and standardized death-rates per 1,000 of population (on the 1911 standard population) for each fifth year from 1875 to 1935 and for the year 1938:—

Year.Recorded Rates./Males.Females.Totals.Standardized Rates./Males.Females.Totals.
1,87516.5615.0715.9219.0315.3617.30
1,88012.0510.7311.4613.8111.4712.70
1,88511.519.6710.6713.3810.0612.36
1,89010.518.689.6612.2610.1111.25
1,89510.818.899.9112.2610.0711.22
1,90010.338.439.4311.049.2910.21
1,90510.188.249.2710.498.619.60
1,91010.678.639.7110.678.469.62
1,91510.197.879.0610.7.879.09
1,92011.119.1510.1510.838.849.89
1,9259.107.488.308.686.787.78
1,9309.427.698.578.666.487.63
1,9358.957.528.257.685.786.78
1,93810.718.689.718.856.347.66

The above standardized rates, of course, apply only to New Zealand and do not afford adjusted comparisons with other countries. For purposes of international comparisons, a standard population, based on the age-distribution of the population of nineteen European countries at their censuses nearest to the year 1900, has been compiled by the International Institute of Statistics, and is used in the following table of New Zealand death-rates per 1000 of population:—

Year.Recorded Rates.International Standardized Rates.
Males.Females.Both Sexes.Males.Females.Both Sexes.
Without Distinction between Sexes.With Distinction between Sexes.
1,90110.808.719.8111.8111.2111.6411.51
1,91110.468.219.3910.799.7410.4010.26
1,9219.757.668.739.658.639.239.14
1,9269.677.788.749.528.669.189.09
1,9299.677.828.769.308.398.868.79
1,9309.427.698.578.968.108.598.53
1,9319.087.598.358.587.858.268.21
1,9328.597.478.048.017.677.897.84
1,9338.747.237.998.097.297.747.69
1,9349.267.738.508.447.688.128.06
1,9358.957.528.258.037.327.737.67
1,9369.458.038.758.297.638.017.96
1,9379.858.289.088.417.568.037.91
1,93810.718.689.719.117.848.538.47

An interesting point brought out by the use of this method in New Zealand is that the male standardized rate has now for many years been lower than the corresponding recorded rate; in other words, the standard population has a more favourable age constitution from the mortality viewpoint than the actual population. Since 1934 the standardized death-rate for females has also receded below the recorded rate.

Unfortunately, as far as is known, only three countries—viz., New Zealand, Australia, and England and Wales—publish standardized death-rates based on the international standard population of the International Institute of Statistics.

While it is thus not possible to obtain direct comparisons of the death-rates in various countries on a comparable basis, it is possible to secure standardized death-rates for the majority of the larger units of the British Empire on the basis of the population of England and Wales at the census of 1901. These rates are given in the following table for each of the five years 1933 to 1937:—

Year.Countries.
New Zealand.England and Wales.Canada.Northern Ireland.Union of South Africa.
* Not available.
1,9336.89.88.911.59.3
1,9347.19.38.710.99.6
1,9356.89.09.011.710.3
1,9367.19.29.011.29.5
1,9377.19.3*11.49.7

Important as it is to eliminate the distortion in comparative death-rates due to variance in the sex and age constitution of different populations as a whole, it may be even more important to do so when a comparison is made between death-rates from certain causes of death in various countries, or at widely separated periods of time in the same country.

Such diseases as cancer and tuberculosis, groups of epidemic diseases, degenerative diseases, &c., take their greatest toll at varying periods of the human life-span. If, therefore, there is variation during the passage of time, of the proportion of persons exposed to the risk of death from certain causes at specified age-groups, it is possible that a proportion of the variation in the recorded death-rates from such causes may be fictitious in the sense that the rates have been distorted by the influence of the age- or sex-constitution factor.

It is possible to eliminate this factor by the compilation of standardized death-rates for individual causes of death on a similar basis to that for the death-rate from all causes. England and Wales is the only country in the world that has regularly published standardized death-rates by sex for a considerable number of the principal causes of death.

Standardized death-rates were computed for New Zealand for a number of causes for each of the ten years 1928-37, and details relating to the years 1932 to 1936 were published in the 1939 issue of the Year-Book (pp. 114-115), while details covering a ten-yearly period are included in the “Annual Report on Vital Statistics.” The standard population used was that of England and Wales at the census of 1901, in order that the death-rates so calculated might be comparable with those published for England and Wales.

Some remarkable variations were revealed in the standardized death-rates from different causes in the two countries. Epidemic diseases are apparently not nearly as prevalent in New Zealand as in England and Wales. In both countries, a higher rate is recorded for females than for males for scarlet fever and whooping-cough. For diphtheria, however, while the female rate is higher in England and Wales, the reverse is the position in New Zealand. Influenza, on the other hand, shows a higher rate for males in both countries. Particularly outstanding is the excessively high death-rate from tuberculosis recorded for England and Wales in comparison with that for New Zealand.

The group of diseases including syphilis, with its associated causes of death tabes dorsalis and general paralysis of the insane, on the whole shows a greater death-rate for males in England and Wales, although the respective rates for syphilis alone are fairly even. The female rate for these causes is approximately equal in both countries.

An interesting feature of the comparison is that, even when the age-constitution of the population factor is eliminated by standardization of the death-rates, the fatal incidence of cancer appears to be considerably higher in England and Wales than in New Zealand.

The respective death-rates from diabetes reveal a curious position. The figures for both countries for males indicate a similar incidence of the disease among the male population, but the New Zealand death-rate for females maintains a level distinctly above that for England and Wales throughout the period covered. It is difficult to account for this marked variation in the fatal incidence of diabetes among females.

Deaths from heart-disease (all forms) claim a greater proportion of victims in England and Wales than in New Zealand. But it is of interest to note that deaths from diseases of the coronary arteries and angina pectoris, which have exhibited a tendency to increase rapidly in recent years, out of all proportion to the rate of increase for all forms of heart-disease, exact a heavier toll in New Zealand.

Probably the most significant aspect of the comparative statistics of the two countries is an enormous disparity in the standardized death-rates for the principal diseases of the respiratory system, the disparity being definitely in favour of New Zealand for both sexes.

Chronic nephritis is one of the few major diseases for which New Zealand has a higher death-rate for both males and females. The male death-rate from accidental causes is definitely higher in this country, while for suicide the New Zealand rate for males is higher and the female rate lower.

While the standardization of death-rates from various causes on a common basis eliminates for all practical purposes the anomalies due to differences in the sex and age constitution of the populations, there is still one other important factor affecting the comparisons between the death-rates of the two countries; that is, the variation in the system of selection for classification of the principal cause of death in cases where more than one cause is certified. There can be little doubt that some of the anomalies revealed are due in no small measure to this influence rather than to actual wide disparities in incidence of certain diseases.

ORPHANHOOD.

The table following shows the number of living issue left by married men or widowers whose deaths were registered during the ten years 1929-38, the information being given according to age of father and of issue.

Number of Issue left by Fathers, aged—
Under 30.30 and under 40.40 and under 50.50 and under 60.60 and under 70.70 and under 80.80 and over.Totals.
Age of issue, in years—        
Under 55201,3721,20046013418 3,704
  5 and under 101091,5622,4301,45137672146,014
  10 and under 1527743,0713,1521,080217458,341
  15 and under 2111412,9846,0963,62588817813,913
  21 and over111,15212,07430,90544,40037,668126,201
  Unspecified  522  9
    Totals6333,85010,84223,23536,12245,59537,905158,182
Married men or widowers who died—        
  Leaving issue3731,6263,4516,6069,25410,1697,55839,037
  Without leaving issue2133997611,3511,7401,6821,0037,149
    Totals5862,0254,2127,95710,99411,8518,56146,186

During the period under review 39,037 fathers left issue to the number of 158,182, an average of 4.05. For the preceding decennial period, 1919-28, the average issue left was 4.47.

Taking all deaths of married men or widowers, whether leaving issue or not, it is found that the average living issue is 3.42, as compared with 3.80 for the period 1919-28.

Average numbers of issue left by married men or widowers during the decade 1929-38 were: Under age 30, 1.08; aged 30-39, 1.90; 40-49, 2.57; 50-59, 2.92; 60-69, 3.29; 70-79, 3.85; 80 or over, 4.43. Averages are, with one exception, lower than in the preceding decade.

The following table shows the average issue for various age-groups in different periods since 1904:—

Age-group (in Years).Total Number of Issue left.Average Number of Issue left.
1904-08.1909-18.1919-28.1929-38.1904-08.1909-18.1919-28.1929-38.
Under 303189226316331.141.151.071.08
30 and under 401,7926,6694,8393,8502.092.092.011.90
40 and under 503,94910,71811,71310,8423,473.012.752.57
50 and under 607,29816,80018,15723,2354.483.953.232.92
60 and under 7013,74827,62829,06036,1225.014.703.823.29
70 and under 8013,98138,91041,72045,5954.724.834.613.85
80 and over5,76421,26633,32037,9054.514.564.634.43
    Totals46,850122,913139,440158,1824.304.043.803.42

The average number of children left by the death of married men or widowers has, as might naturally be expected, declined during the last two or three decades. It is of interest, however, to observe that the average issue left by married men or widowers under the age of thirty has declined least of all, and, in fact, showed a slight rise during the last decade.

The explanation probably lies in the fact that among the fathers who died before attaining the age of thirty would be the majority of cases where there was only one child, while, on the other hand, the proportion of childless marriages has not shown much variation percent years. The remaining averages shed further light on the declining birth and the dwindling in the average size of families in modern times.

Of the 1,081 cases where issue under 16 years of age was left by married men or widowers during 1938, a widow was also left in 1,018 cases, the aggregate children under 16 in these 1,018 cases being 2,087, and the average per widow 2.05. By the deaths of their fathers, children under 16 to the number of 104 were left without either parent, and for 2 children there was no information as to whether the mother was alive or dead.

The foregoing figures all refer to children partially or completely orphaned in the case of families where only the father died during the year 1938 or the decade 1929-38. Similar information is also available for families of which the mother died during the year 1938. Altogether 4,868 married women or widows died during 1938, leaving a total issue of 16,379, or an average living issue of 3.36. Considering only those mothers who left issue, the average issue left was 3.98. The average issue under 16 years of age left by all widows who died during the year 1938 was 0.28.

The following summary tables of the numbers and ages of issue under the age of 16 years left by married men, widowers, married women, and widows during the year 1938 are of considerable interest:—

(a) AGES OF ISSUE UNDER SIXTEEN LEFT BY THE DEATH OF EITHER PARENT, 1938.

Age of Issue.Numbers of Issue left at Ages specified by
Married Men.Widowers.Married Women.Widows.Total Married Men and Widowers.Total Married Women and Widows.Total Widows and Widower.
04980149811 
172255174563
290156291583
392245194463
484352187534
592672298748
610796621166811
71226843128879
813559351409810
915178941589311
1016288761709314
111601293817210120
1219581091120312019
1318411110919511920
142049991221311121
15201151091521612430
Totals—       
Under 162,1001041,299832,2041,382187
16 and over10,9494,8006,2158,78215,74914,99713,582
Grand totals13,0494,9047,5148,86517,95316,37913,769

(b) NUMBER OF ISSUE UNDER SIXTEEN LEFT BY THE DEATH OF EITHER PARENT, 1938.

Number of Issue.Families under Sixteen Years of Age left by
Married Men.Widowers.Married Women.Widows.Total Married Men and Widowers.Total Married Women and Widows.Total Widows and Widowers.
1466302662149628751
227214168928617723
31653912168935
470237272394
528422 32224
615 8215102
76 1116121
83 4 34 
9111 211
101   1  
11   1 11
Totals1,02754608381,08164692

From section (a) of the above table it will be seen that during 1938 no fewer than 2,100 children under 16 years of age were left fatherless, although their mother was still alive at the time of the father's death; 1,299 were left without a mother, but with their father living: thus a total of 3,399 were left with only one parent. By the death of their father 104 children, and by the death of their mother 83 children, were left without either parent, making a total of 187 true orphans under 16 years of age during 1938. In this total, of course, there might possibly be a few cases where both the father and the mother died during 1938, and in any such cases the number of children left would be duplicated, as they would be included in the figures of issue left upon the death of each parent.

Section (b) of the table indicates that in a total of 92 families there were 187 children under 16 years of age left as true orphans during 1938, equivalent to an average of 2.03 per family. The average number of children under 16 years of age left fatherless per family was 2.04; and the average number left motherless was 2.14. These averages, of course, relate only to those families in which there were any children under 16 years of age.

WIDOWS AND ORPHANS.

Of 46,186 married men or widowers whose deaths were registered during the ten years 1929-38, 11,854 were shown to have been widowers and 33,792 to have left widows, while in the remaining 540 cases there was no information on the point. Of the married men leaving widows, 28,794 had living issue also at time of death, and 4,998 had no living issue. In 10,004 cases widowers left issue, and in 1,850 cases no issue. In 239 of the 540 cases where no information was given as to whether a widow was left, there was living issue, and in 301 cases there was no living issue.

INFANT MORTALITY.

New Zealand has the lowest rate of infant mortality in the world, a fact attributable partly to such matters as climate, virility of the race, comparative absence of densely settled areas, &c., and partly to legislative and educative measures—the latter conducted by the State as well as by various organizations. A great deal of the success achieved in this direction has been due to the activities of the Royal New Zealand Society for the Health of Women and Children. Founded in Dunedin in 1907, this society has since extended its Plunket system throughout New Zealand, and its methods are being adopted to an ever-increasing extent in other countries.

The following table, giving infant mortality rates in various countries for the latest available quinquennial period, clearly shows the favourable position occupied by New Zealand:—

Country.Quinquennium.Deaths under One Year per 1,000 Births.
* Registration area.
New Zealand1934-3832
Netherlands1934-3839
Australia1934-3840
Norway1933-3743
Sweden1934-3845
Switzerland1934-3846
Iceland1933-3748
United States*1934-3856
England and Wales1934-3857
Union of S. Africa1933-3760
Germany1934-3865
France1934-3867
Denmark1933-3767
Eire1934-3869
Finland1933-3770
Canada1934-3870
Northern Ireland1934-3877
Scotland1934-3877
Belgium1934-3877
Latvia1934-3881
Estonia1933-3791
Uruguay1932-3696
Italy1933-37102
Spain1931-35112
Japan1933-37115
Greece1933-37117
Czechoslovakia1933-37125
Lithuania1934-38130
Poland1934-38137
Hungary1934-38141
Yugoslavia1933-37142
Bulgaria1934-38145
Portugal1933-37147
Egypt1933-37163
British India1933-37169
Rumania1934-38182
Ceylon1934-38184
Chile1934-38248

Particulars of deaths in New Zealand of infants under one year of age for each of the last ten years are shown in the following table:—

Year.Number.Rate per 1,000 Births.
Males.Females.Totals.Males.Females.Totals.
1,92954836491240.1627.7834.10
1,93052539992438.2830.5034.48
1,93152633085638.2125.6732.15
1,93242635177733.2229.1031.22
1,93345531577036.6426.4431.64
1,93445632578136.3227.6232.11
1,93544432977336.0528.2432.26
1,93641535476932.9228.9530.96
1,93746135181234.8127.4931.21
1,93857040197140.9230.1135.63

With an appreciable rise in the number of births registered during the last three years, it is not surprising to find the total of infant deaths increasing. The figure of 971 deaths of infants under one year of age recorded for 1938 represents an increase of 159, or 19 per cent. over the 1937 figure, and is the highest total recorded since 1928. The infant-mortality rates per 1,000 live births were 35.63 and 31.21 for 1938 and 1937 respectively—equivalent to an increase for 1938 of 4.42, or 14 per cent. Since 1931, the infant-mortality rate in New Zealand has hovered about 31 or 32 per 1,000 live births, so that the rate recorded for 1938 is substantially above the average of recent years, and, as with the total numbers, it is necessary to go back as far as 1928 to find a higher rate in this country.

The pronounced fall in New Zealand's infant mortality rate during the last two decades has not been accompanied by an increase in the death-rate of children between the ages of one and ten, years. There has, on the contrary, been a substantial fall, as is shown by the following figures. The numbers and rates given refer to annual averages for the quinquennia mentioned.

Quinquennium.1 and under 5 Years.5 and under 10 Years.
Number of Deaths.Rate.*Number of Deaths.Rate.*
* Per 10,000 children at ages shown.
1894-18984406818622
1899-19035047619423
1904-19084443717219
1909-19134474919318
1914-19185475326622
1919-19234654424519
1924-19284033820315
1929-19333052917513
1934-19382542715812

The increase in 1914-18 as compared with 1909-13 is due to the fact that during the latter period New Zealand experienced several minor epidemics, principally of diphtheria. The influenza epidemic in 1918 also somewhat affected the rate.

Since 1921 a distinction has been made between legitimate and illegitimate children in the New Zealand statistics of infant mortality. The proportion of illegitimate infants among those dying within the first year of life has been found to be greater (in some years substantially so) than the proportion of illegitimate births to total births, in spite of the fact that legitimations and adoptions would tend to reduce the number which would appear as illegitimate in the death entries. The year 1930 constitutes an exception.

Year.Total Deaths under One Year.Deaths of Illegitimate Infants under One Year.Proportion of Illegitimates in Total Deaths under One Year.Proportion of Illegitimates in Total Births.
   Per Cent.Per Cent.
1,929912727.894.96
1,930924475.095.12
1,931856607.014.94
1,932777546.955.07
1,933770425.454.60
1,934781415.254.77
1,935773536.864.36
1,936769506.504.53
1,937812415.054.65
1,938971585.974.27

Normally the excess of the male over the female rate of infant mortality holds for each of the four divisions of the first year of life shown in the next table. The discrepancy is, however, usually somewhat greater in the first half of the year than in the second.

Year.Male Deaths per 1,000 Male Births.Female Deaths per 1,000 Female Births.
Under 1 Month.1 and under 3 Months.3 and under 6 Months.6 and under 12 Months.Under 1 Month.1 and under 3 Months.3 and under 6 Months.6 and under 12 Months.
1,92927.484.842.864.9818.853.512.063.36
1,93026.765.832.193.5021.173.222.293.82
1,93126.954.502.334.4318.121.872.103.58
1,93221.993.983.353.9020.562.572.163.81
1,93326.893.702.663.3918.553.022.941.93
1,93426.373.662.713.5819.122.222.973.31
1,93524.284.712.924.1419.662.403.262.92
1,93624.513.331.823.2620.032.542.543.84
1,93724.012.573.624.6120.362.272.042.82
1,93828.504.023.524.8819.603.083.683.75

Even when the effect of the male excess among infants born is eliminated by comparing the respective rates for the two sexes, the number of male deaths per 100 female deaths in the first month of life during the ten years 1929-38 is found to be 131; between one and three months, 154; between three and six months, 107; between six and twelve months, 123; and for the whole of the first year, 136.

The rates per 1,000 births for the two sexes in conjunction are now given for each of the last five years.

Year.Under 1 Month.1 and under 3 Months.3 and under 6 Months.6 and under 12 Months.Totals under 1 Year.
1,93422.862.962.843.4532.11
1,93522.033.593.093.5532.26
1,93622.312.942.183.5330.96
1,93722.222.422.843.7331.21
1,93724.153.553.604.3335.63

Infants who die in the first year of life may be grouped roughly into two main classes—viz., those dying within one month of birth and those surviving the first month of life but dying before attaining the first anniversary of their birth. Deaths among the first class are due principally to causes operating before the actual birth of the infant. The second group, generally speaking, are infants who have succumbed to causes arising from post-natal influences, such as the various epidemic diseases, faulty feeding, diseases of the respiratory system, &c. The first group naturally presents the greatest problem to the infant-welfare worker, while the history of the comparatively rapid decline of the infant-mortality rate in New Zealand is largely an illustration of the effective measures adopted towards combating the post-natal causes of death in infancy.

The unusually high increase in the total infant-mortality rate recorded for 1938 over 1937 was common to all age-groups with the exception of infants who did not survive twenty-four hours. The greatest increase occurred among infants between the ages of one and twelve months, and it would thus appear that the principal causes of the sudden rise in the total infant-mortality rate for 1938 are to be found in the post-natal groups of diseases.

The next table shows that, whereas in the quinquennium 1931-35 the death-rate for children under one month of age was 25 per cent. lower than in the quinquennium 1881-85, the rate for children who had survived the first month of life was only a little more than one-seventh as high as in the “eighties.” In other words, where the Dominion formerly lost between the ages of one month and one year more than sixty children out of every thousand it lost in 1931-35 only ten.

Period.Deaths per 1,000 Births.Deaths between 1 and 12 Months per 1,000 Children who survive 1 Month.
Under 1 Year.Under 1 Month.Between 1 and 12 Months.
1881-188590.6029.7760.8362.70
1886-189084.0927.5756.5258.13
1891-189587.6030.3457.2658.93
1896-190080.0630.3849.6851.24
1901-190574.7730.6444.1345.54
1906-191069.6230.2839.3440.57
1911-191553.6329.2824.3525.05
1916-192048.6228.1620.4621.05
1921-192542.7527.4815.2715.70
1926-193036.7024.8211.8812.18
1931-193531.8822.349.549.76
1936-193832.6022.899.719.94

The decrease by nearly two-thirds in the general rate, and by four-fifths in the rate between one and twelve months, and the relatively low movement of the rate under one month, are well indicated in the accompanying diagram.

As stated above, the death-rate for infants under the age of one month has shown little improvement in recent years, while a substantial reduction has taken place in the mortality-rate after the first month of life. It would appear, therefore, that on the one hand the diseases that can be combated openly, such as epidemic diseases, respiratory diseases, and diseases due to faulty nourishment, &c. (i.e., diseases of the digestive system), have shown a definite response to the strenuous campaigns launched against them; while, on the other hand, many infants are evidently non-viable at birth. This point is accentuated by the following table, which shows the rates for further divisions of the first month of life.

DEATHS UNDER ONE MONTH PER 1,000 LIVE BIRTHS.

Year.Under 1 Day.1 Day and under 2 Days.2 Days and under 1 Week.Totals under 1 Week.1 Week and under 2 Weeks.2 Weeks and under 3 Weeks.3 Weeks and under 1 Month.Totals under 1 Month.
1,9297.373.377.6618.401.831.531.5023.26
1,9308.363.287.4619.102.761.310.8624.03
1,9317.143.796.7617.692.741.470.7922.69
1,9326.593.506.3516.442.611.251.0021.30
1,9338.012.886.9917.882.631.271.0322.81
1,9349.093.376.2918.752.630.700.7822.86
1,9358.183.006.7217.902.251.460.4222.03
1,9369.143.105.7217.962.621.050.6822.31
1,9379.382.386.8118.572.271.000.3822.22
1,9388.153.118.1519.412.611.250.8824.15

Approximately one-third (222) of the 658 deaths under one month in 1938 occurred within twenty-four hours of birth, and four-fifths (529) within one week. The following table gives, for each of the last five years, detailed information as to the number of deaths at various periods of the first year of life:—

Year.Under 1 Day.1 Day and under 2 Days.2 Days and under 1 Week.1 Week and under 2 Weeks.2 Weeks and under 3 Weeks.3 Weeks and under 1 Month.1 Month and under 2 Months.2 Months and under 3 Months.3 Months and under 6 Months.6 Months and under 9 Months.9 Months and under 12 Months.Totals.
Males.
1,9341294895391282620342916456
1,9351204093271632533363021444
1,9361234084401572814232120415
1,93712827107341572311483031461
1,938120501434625133422494127570
Females.
1,934923458255111313352118325
1,935763268271972088259329
1,93610437582511101516312423354
1,9371163570251131514262214351
1,9381023579259112516492525401
Both Sexes.
1,934221821536417193933695034781
1,935196721615435104541745530773
1,936227771426526174330544543769
1,937244621775926103825745245812
1,938222852227134245938986652971

Some remarkable changes are disclosed by the next table, which gives the infant mortality rates for various groups of causes in quinquennial periods commencing with the years 1872-76. If a comparison be made between the averages of the first and last quinquennia given—1872-76 and 1932-36—it is found that the general infant mortality rate shows a decline of 71 per cent., while even greater decreases are recorded for tuberculosis (96 per cent.), convulsions (94 per cent.), gastric and intestinal diseases (95 per cent.), epidemic diseases (89 per cent.), and respiratory diseases (74 per cent.). The rate for diseases of early infancy shows a decrease of only 30 per cent. in 1932-36 as compared with 1872-76. but of 33 per cent. as compared with 1917-21, and the figures indicate that some measure of success has already attended the steps taken in recent years to cope with ante-natal conditions.

The increase shown for malformations and the decrease for tuberculosis are probably somewhat less than is indicated by the figures. In the earlier years covered by the table the latter heading included all deaths from hydrocephalus, many of which were no doubt due to congenital hydrocephalus, which is now included among the malformations. A proportion of the deaths from hydrocephalus in the earlier years would also probably be due to meningitis. The most striking features of the figures for recent years are the increased death-rate for malformations and the drop in the rate from diseases peculiar to early infancy. The following table shows quinquennial average death-rates of infants under one year of age, per 1,000 live births.

INFANT MORTALITY RATES FOR PRINCIPAL CAUSES.

Period.Epidemic Diseases.Tuberculosis.Infantile Convulsions.Respiratory Diseases.Gastric and Intestinal Diseases.Malformations.Early Infancy.Other Causes.Totals.
1872-187613.55.59.712.924.21.225.017.3109.3
1877-188110.25.27.512.319.81.421.915.393.6
1882-18869.34.77.911.819.11.225.512.391.8
1887-18918.93.76.310.518.51.324.78.882.7
1892-18969.83.36.611.016.61.424.911.284.8
1897-19016.12.65.610.017.21.526.29.778.9
1902-19065.51.54.19.715.31.327.67.972.9
1907-19115.91.33.37.615.51.926.76.368.5
1912-19163.60.62.25.17.43.926.23.552.5
1917-19213.20.51.94.74.54.326.12.948.1
1922-19261.80.41.34.32.84.822.43.341.1
1927-19311.50.30.53.71.75.019.43.135.2
1932-19361.50.20.63.31.25.017.52.431.7
1937-19381.30.20.33.51.45.718.03.033.4

Two out of every three deaths of infants under one year of age are due to causes coming within the groups “Early Infancy” and “Malformations,” and premature birth alone is usually responsible for approximately one-third of the total instant mortality.

In accordance with international practice, New Zealand's infant mortality rate represents the number of deaths of infants actually born alive, expressed as a proportion per 1,000 live births. This method, however, takes no account of still-births. Reference has been made in an earlier paragraph to the effect on the infant mortality rate of efforts made towards the reduction of those ante-natal influences which generally cause death to ensue during the early weeks of life. The fact that still-births are also the result of such ante-natal influences should not be lost sight of, and for this and other reasons it is of interest to compute rates for infant mortality and still-births in conjunction, as in the following table. In the computation of the rates for numbers inclusive of still-births, the latter are taken into account in both births and deaths.

DEATHS OF INFANTS UNDER ONE YEAR PER 1,000 BIRTHS.

Year.Exclusive of Still-births.Inclusive of Still-births.
Males.Females.Totals.Males.Females.Totals.
1,92940.1627.7834.1074.1654.4164.53
1,93038.2830.5034.4870.1558.9164.67
1,93138.2125.6732.1567.3453.5760.80
1,93233.2229.1031.2264.5853.8959.42
1,93336.6426.4431.6467.9350.7459.55
1,93436.3227.6232.1165.1451.7958.70
1,93536.0528.2432.2665.8656.1961.17
1,93632.9228.9530.9664.2852.8058.70
1,93734.8127.4931.2164.9552.2858.75
1,93840.9230.1135.6368.2853.8361.23

In 1938 the still-birth rate dropped to 26.54 per 1,000 total births, from 28.42 in 1937. This very largely offsets the increase in the number of deaths of infants under one month of age for the same period. This is more clearly seen by a comparison of the total rates of what may be termed neo-natal deaths—i.e., still-births plus deaths of infants under one month of age. In 1938 this death-rate was 50.05 per 1,000 total births (including still-births), compared with 50.01 in 1937.

The still-birth rate in New Zealand has shown a falling tendency in recent years, and this, combined with the falling infant mortality rate, has resulted in a steady improvement in the rate of all infant deaths, including still-births. Owing to the rise in infant mortality in 1938, the rate computed on the usual method indicates an increase of 4 per cent. during the period covered by the previous table. The inclusion of still-births, however, produces a reduction of 5 per cent.

CAUSES OF DEATH.

Since 1908, the classification of causes of death in New Zealand has been on the basis of the international classification initiated by Dr. Jacques Bertillon and used by the principal European and American countries and the Commonwealth of Australia.

A comparison of the causes of deaths in 1938, grouped in accordance with the classes of the international classification, and the proportion per 10,000 of population of each sex, are given in the following table. The classification adopted is in accordance with the Fourth Revision (1929) of the International List of Causes of Death.

Class.Number of Deaths.Proportion per 10,000 of Mean Population.
Males.Females.Totals.Males.Females.Totals.
I. Infectious and parasitic diseases6474601,1078.406.147.28
II. Cancer and other tumours9619091,87012.4712.1412.31
III. Rheumatic diseases, diseases of nutrition and of endocrine glands, and other general diseases1513024531.964.032.98
IV. Diseases of the blood and blood-forming organs71741450.920.990.95
V. Chronic poisonings and intoxications9 90.12 0.06
VI. Diseases of the nervous system and of organs of special sense5456401,1857.078.547.80
VII. Diseases of the circulatory system2,6542,1154,76934.4528.2331.38
VIII. Diseases of the respiratory system8945201,41411.606.949.31
IX. Diseases of the digestive system3922926845.093.904.50
X. Diseases of the genito-urinary system4853418266.294.555.44
XI. Pregnancy, labour, and the puerperal state 111111 1.480.73
XII. Diseases of the skin and cellar tissue2015350.260.200.23
XIII. Diseases of the bones and of organs of locomotion1714310.220.190.20
XIV. Congenital malformations128852131.661.141.40
XV. Early infancy2852104953.702.803.26
XVI. Senility2101914012.732.552.64
XVII. Violence or accident77222799910.023.036.57
XVIII. Causes not determined7 70.09 0.05
    Totals8.2486,50614,754107.0586.8597.09

Class VII, diseases of the circulatory system, is the most important as regards numerical strength, for included in it are diseases of the heart, which easily rank first among individual causes of death in New Zealand. Next in order comes Class II (cancer and other tumours).

Detailed information concerning the various causes of death is given in the “Annual Report on Vital Statistics.” The statistics for tuberculosis, cancer, puerperal causes, and violence—causes which are of special interest and significance—are discussed later on in this section.

The two following tables show the numbers of deaths and the death-rates per 10,000 of mean population from certain principal causes, following the abridged international list of causes of death.

PRINCIPAL CAUSES OF DEATH—NUMBERS.

Cause of Death.1929.1930.1931.1932.1933.1934.1935.1936.1937.1938.
Typhoid and paratyphoid fever22710116110898
Measles12....1746134163
Scarlet fever2716116488862
Whooping-cough17333644184042471321
Diphtheria92585540272633202431
Influenza29713122167103186110140110133
Tuberculosis of the respiratory system524529501488476491471540495482
Other forms of tuberculosis11812011612713513010514095115
Syphilis37433435484744456754
Malaria..21..112..1..
Other infectious and parasitic diseases1221049011578102578910898
Cancer and other malignant tumours1,4671,4521,4931,4721,6241,6991,6561,7621,7781,787
Tumours, non-malignant78729589909886788383
Chronic rheumatism and gout25281333232523182130
Diabetes mellitus201223227229229250226238275285
Alcoholism18111210995748
Other general diseases and chronic poisonings277227242242240261251267277284
Progressive locomotor ataxia and general paralysis of the insane55534436414138494327
Cerebral hæmorrhage, embolism, and thrombosis634659634611677729721760808852
Other diseases of the nervous system and organs of special sense299280246238237256284241261306
Diseases of the heart2,5332,8972,8172,9353,0983,3483,4593,6463,9504,170
Other diseases of the circulatory system476464435469440403480475580599
Bronchitis314268803207177217199202172200
Pneumonia715647506504422473481642766967
Other diseases of the respiratory system186210192170190200183199217247
Diarrhœa and enteritis82777468605881604997
Appendicitis10099105101108116107119117117
Diseases of the liver and biliary passages96123106118106120124124138146
Other diseases of the digestive system343298294282283303299316326324
Nephritis537567579580561560528591587581
Other diseases of the genitourinary system195191182193212196211218222245
Puerperal septicæmia49574739405931233851
Other diseases of the puerperal state80798062685970695660
Diseases of the skin and cellular tissue, and of the bones and organs of locomotion108697056655760545066
Congenital debility, malformations, premature birth, and other diseases of early infancy677682623595601589571604637708
Senility518418426439337456354381355401
Suicide221193226240200181149149167188
Homicide91113251420817812
Accidental deaths725773926663609642622698728799
Cause of death not specified or ill-defined392662442724279137
    Totals12,31412,19912,04711,68311,70112,52712,21713,05613,65814,754

PRINCIPAL CAUSES OF DEATH—RATES PER 10,000.

Cause of Death.1929.1930.1931.1932.1933.1934.1935.1936.1937.1938.
Typhoid and paratyphoid fever0.160.050.070.080.040.010.070.050.060.05
Measles0.010.01....0.120.310.010.020.031.07
Scarlet fever0.190.110.080.040.030.050.050.050.040.01
Whooping-cough0.120.230.250.300.120.270.280.320.090.14
Diphtheria0.650.410.380.280.180.180.220.130.160.20
Influenza2.110.921.530.460.701.260.740.940.730.88
Tuberculosis of the respiratory system3.733.723.473.363.253.333.183.623.293.17
Other forms of tuberculosis0.840.840.800.870.920.880.710.940.680.76
Syphilis0.260.300.240.240.330.320.300.300.440.35
Malaria..0.010.01..0.010.010.01..0.01..
Other infectious and parasitic diseases0.870.730.620.790.530.690.380.600.720.64
Cancer and other malignant tumours10.4410.2010.3510.1311.1011.5311.1811.8111.8211.76
Tumours, non-malignant0.550.510.660.610.610.670.580.520.550.55
Chronic rheumatism and gout0.180.200.090.230.160.170.160.120.140.20
Alcoholism0.130.080.080.070.060.060.030.050.030.05
Other general diseases and chronic poisonings1.971.601.681.671.641.771.691.791.841.87
Progressive locomotor ataxia and general paralysis of the insane0.390.370.310.250.280.280.260.330.290.18
Cerebral hæmorrhage, embolism, and thrombosis4.514.634.394.204.634.954.875.095.375.61
Other diseases of the nervous system and organs of special2.131.971.711.641.621.741.921.621.732.01
Diseases of the heart18.0220.3619.5320.1921.1722.7223.3524.4326.2527.44
Other diseases of the circulatory system3.393.263.023.233.012.743.243.183.853.94
Bronchitis2.231.881.411.421.211.471.341.351.141.32
Pneumonia5.094.553.513.472.883.213.254.305.096.36
Other diseases of the respiratory system1.321.481.331.171.301.361.241.331.441.62
Diarrhœa and enteritis0.580.540.510.470.410.390.550.400.320.64
Appendicitis0.710.700.730.690.740.790.720.800.780.77
Diseases of the liver and biliary passages0.680.860.730.810.720.810.840.830.920.96
Other diseases of the digestive system2.442.092.041.941.932.062.022.122.172.13
Nephritis3.823.984.013.993.833.803.563.963.903.82
Other diseases of the genitourinary system1.391.341.261.331.451.331.421.461.471.61
Puerperal septicæmia0.350.400.330.270.270.400.210.160.250.34
Other diseases of the puerperal state0.570.560.550.430.460.400.470.460.370.40
Diseases of the skin and cellular tissue, and of the bones and organs of locomotion0.770.480.480.380.440.390.400.360.330.43
Congenital debility, malformations, premature birth, and other diseases of early infancy4.824.794.324.094.114.003.854.054.234.66
Senility3.692.942.953.022.313.102.392.552.362.64
Suicide1.571.361.571.651.371.231.001.001.111.24
Homicide0.060.080.090.170.100.130.050.110.050.08
Accidental deaths5.165.436.424.564.164.364.204.684.845.26
Cause of death not specified ill-defined0.280.180.430.300.180.160.180.060.090.05
Totals87.6185.7283.5180.3879.9485.0382.4587.4990.7697.09

MEASLES.

An epidemic of measles was widespread in the Dominion during 1938. As measles is not a notifiable disease in this country, the number of people who contracted the disease is not known. The only statistics available are those in respect of fatal cases and of people treated in the public hospitals of the Dominion for the disease. The hospital aspect of the epidemic is covered in the “Morbidity” subsection of this issue of the Year-Book.

The 1938 epidemic was not a particularly fatal one among the non-Maori population but, on the other hand, it made serious inroads in the case of the Maori population. There were 212 deaths of Maoris from measles registered, which, added to the non-Maori figure of 163, gives a total of 375 during 1938, equivalent to a death-rate of 2.33 per 10,000 of total mean population. The death-rates from measles of Maoris and non-Maoris separately were 24.32 and 1.07 respectively.

Previous to 1938, the last serious outbreak of measles was recorded in 1920, when 122 deaths (exclusive of Maoris) were registered. Fifty or sixty years ago measles was responsible for a relatively high proportion of deaths. The greatest number of deaths during a calendar year occurred in 1893, when as many as 511 persons died from measles, and in 1875, when 289 deaths occurred. Proportionately to the population, the 1875 epidemic was the worst in the history of the country.

TUBERCULOSIS.

The death-rate from tuberculosis of the respiratory system has been decreasing gradually during recent years, with occasional upward fluctuations. The rate for 1936, however, of 3.62 per 10,000 of population represented an abnormal reversal of trend difficult to account for. It is possible'e, of course, that some of the unusual increase represented a carry-over from the previous year, when the second lowest rate on record was established. The rate for 1938 (3.17 per 10,000) is the lowest to date.

A graph on the succeeding page illustrates the decline in the tuberculosis death-rate since 1875.

Of the 482 persons who died from tuberculosis of the respiratory system, in 1938, 349, or 72 per cent., were known to have been born in the Dominion. In twelve cases the country of birth was not known or not stated, and in the remaining 121 cases the deceased person had been born outside New Zealand. Three of the last-mentioned had been in New Zealand less than five years.

In addition to the 482 deaths from tuberculosis of the respiratory system during 1938, there were 115 deaths from other forms of tuberculosis, including—

Tuberculosis of meninges and central nervous system35
Tuberculosis of intestines and peritoneum19
Tuberculosis of vertebral column18
Tuberculosis of bones and joints5
Tuberculosis of the lymphatic system3
Tuberculosis of genito-urinary system11
Disseminated tuberculosis21

Tuberculosis claims its victims at a comparatively early age. Of those dying from this cause in 1938, persons under the age of 20 years formed 12 per cent., and those under 45 years 62 per cent.

AGES OF PERSONS WHO HAD FROM TUBERCULAR DISEASES, 1938.

Age, in Years.Males.Females.Totals.
Under 514620
5 and under 1010414
10 and under 154913
15 and under 20111425
20 and under 25203151
25 and under 30303868
30 and under 35362359
35 and under 40343367
40 and under 45351954
45 and under 50251641
50 and under 55341448
55 and under 60301848
60 and under 6522830
65 and under 70161329
70 and under 7510616
75 and under 808210
80 and over314
    Totals342255597

The average annual death-rate from tubercular diseases in certain of the principal countries of the world during the latest available period of five years is next shown.

Country.Period.Death-rates (per 10,000).
*Registration area.
Union of South Africa1933-373.8
New Zealand1934-384.1
Australia1934-384.1
Netherlands1933-375.3
United States*1933-375.6
Denmark1932-365.6
Canada1934-385.9
Ceylon1930-346.4
Germany1932-367.2
England and Wales1933-377.4
Scotland1933-377.5
Belgium1932-367.6
Italy1932-369.4
Switzerland1933-379.7
Lithuania1932-3610.1
Northern Ireland1934-3810.2
Sweden1932-3610.2
Norway1932-3611.5
Spain1931-3511.6
Eire1933-3712.0
France1932-3612.8
Uruguay1931-3512.9
Czechoslovakia1933-3713.3
Greece1932-3614.4
Hungary1933-3715.8
Estonia1933-3716.7
Rumania1933-3717.4
Japan1932-3619.1
Finland1932-3619.8
Chile1932-3625.5

CANCER.

Cancer is annually responsible for more deaths in New Zealand than can be assigned to any cause other than diseases of the heart.

One factor contributing towards the recorded numerical increase in deaths from cancer is the increasing proportion of persons entering into the age-groups of 40 years of age and upwards. This has been brought about principally by the gradual amelioration of the one-time scourges of certain epidemic diseases which exacted a heavy toll of human life at the earlier ages.

Tuberculosis may, perhaps, be classified in the group mentioned, as the progressive decline in the death-rate from tuberculosis for very many years is practically uniform with the rise in the cancer death-rate. This is illustrated by the following figures of average death-rates from tuberculosis and cancer for decennial periods, and for the nine-year period 1930-38:—

 Average Death-rates per 10,000 of Population.
Decennium.Tuberculosis.Cancer.
1880-8912.353.42
1890-9910.625.44
1900-099.106.79
1910-196.998.22
1920-295.699.30
1930-384.2011.10

The relative movements in the death-rates from cancer and tuberculosis are further illustrated in the following diagram.

In 1938 there were 1,787 deaths from cancer in the Dominion, a proportion of 11.76 per 10,000 of population. The standardized cancer death-rate for 1938 shows a decrease of 0.09, while the recorded death-rate shows a decrease of 0.06 per 10,000.

Year.Number of Deaths from Cancer.Recorded Death-rate.Standardized Death-rate.*
* On basis of age distribution in 1911.
1,9291,46710.448.53
1,9301,45210.208.17
1,9311,49310.358.16
1,9321,47210.137.79
1,9331,62411.108.36
1,9341,69911.538.51
1,9351,65611.188.12
1,9361,76211.818.26
1,9371,77811.828.02
1,9381,78711.767.93

The following table shows the proportion of deaths from cancer to the 10,000 of population in some of the principal countries of the world. The rates are an annual average of the latest available period of five years.

CANCER DEATH-RATES IN CERTAIN COUNTRIES.

Country.Period.Death-rate per 10,000 of
* Registration area.
Ceylon1930-340.9
 1933-374.2
 1932-364.4
 1932-364.5
Spain1931-356.8
Chile1932-366.9
Japan1932-367.0
Italy1932-367.9
Uruguay1931-358.2
Finland1932-368.4
France1932-369.6
Union of South1933-379.8
Canada1934-3810.4
Belgium1932-3610.6
United States*1933-3710.8
 1933-3710.8
Australia1934-3811.1
Hungary1933-3711.1
New Zealand1934-3811.6
Eire1933-3711.9
Czechoslovakia1933-3712.3
Netherlands1933-3712.7
Northern Ireland1934-3812.9
Norway1932-3612.9
Sweden1931-3513.0
Germany1932-3614.1
Denmark1932-3614.7
Switzerland1933-3715.2
Scotland1933-3715.6
England and Wales1933-3715.9

The following summary shows the types of cancer returned in the death entries in New Zealand for the year 1938:—

 Deaths.
Type.Males.Females.Totals.
Carcinoma7857351,520
Adeno-carcinoma192544
Sarcoma213152
Lympho-sarcoma7512
Melanotic sarcoma426
Fibro-sarcoma246
Osteo-sarcoma314
Myxo-sarcoma2..2
Chondro-sarcoma..22
Epithehoma181432
Hypernephroma12618
Seminoma1..1
Scirrhus carcinoma31215
Rodent ulcer11314
Endothelioma112
Multiple myelomata..22
Malignant teratoma314
Malignant melanoma426
Chordoma1..1
Malignant tumour151126
Malignant papilloma7411
Malignant disease257
    Totals9218661,787

The parts of the body most commonly affected in New Zealand are the stomach and liver. Among females the genital and mammary organs are among the parts principally affected. Full details of location are published in the “Annual Report on Vital Statistics,” but a summary of deaths from cancer during 1938 is as follows:—

Seat of Disease.Males.Females.Totals.
Buccal cavity and pharynx551166
Digestive tract and peritoneum548380928
Respiratory organs8227109
Uterus..123123
Other female genital organs..7575
Breast..159159
Urinary organs and male genital organs15622178
Skin241438
Other or unspecified organs5655111
    Totals9218661,787

Ninety - two per cent. of the deaths from cancer during 1938 were at ages 45 years and upwards, and 53 per cent. at ages 65 years and upwards. Females predominate generally at the younger and males at the older ages.

There has been very little movement in the standardized cancer death-rate for persons under 65 years of age. For persons over 65, however, the standardized death-rate increased fairly rapidly in the earlier years of the Dominion's history, and reached its maximum in the quinquennium 1926-30, at about the time when the age-constitution of the population of New Zealand for the first time approximated that of the older countries of Europe. The figures suggest that cancer, while undoubtedly increasing in numerical incidence, is not doing so out of proportion to the population exposed to the cancer risk. Improvement in diagnosis has also been responsible for some of the numerical increase in the recorded deaths from cancer, but this factor has probably become more stabilized in recent years.

AGES OF PERSONS WHO DIED FROM CANCER, 1938.

Age, in Years.Males.Females.Totals.
Under 5213
5 and under 10112
10 and under 15145
15 and under 20235
20 and under 256410
25 and under 305712
30 and under 3510616
35 and under 40121931
40 and under 45203555
45 and under 50286795
50 and under 556087147
55 and under 60107107214
60 and under 65124122246
65 and under 70147130277
70 and under 75163103266
75 and under 8011779196
80 and over11691207
Totals9218661,787

PUERPERAL CAUSES.

In point of numbers of deaths, puerperal accidents and diseases do not rank high among causes of death. Nevertheless, deaths from puerperal causes are of special importance and significance.

During the 44-year period 1872-1915 the death-rate from puerperal causes exceeded 5 per 1,000 live births on only 14 occasions, but after 1915 did not fall below this figure until 1925. The rate for 1920 (when the proportion of first births was high) was the third highest on record, having been exceeded only in 1884 and 1885, but the highest rate since 1920 has been 5.14 per 1,000 recorded in 1922. The rate for each of the last twenty years is as follows:—

Year.Proportion per 1,000 Live Births.
1,9185.06
1,9206.48
1,9215.08
1,9225.14
1,9235.11
1,9245.00
1,9254.65
1,9264.25
1,9274.91
1,9284.93
1,9294.82
1,9305.08
1,9314.77
1,9324.06
1,9334.44
1,9344.85
1,9354.21
1,9363.70
1,9373.61
1,9384.07

Commencing with 1916, special inquiry has been made in all cases where a woman of child-bearing age has been returned as having died of such causes as septicæmia, peritonitis, nephritis, &c. (without qualification), with the result that in each year several of such cases are found to be puerperal, and are now so classed. During 1928 the system of investigating possible puerperal cases was still further extended.

Although the number of women who lost their lives through some cause connected with pregnancy or childbirth rose from 94 in 1937 to 111 in 1938, the rate showed a proportionately smaller increase. The relatively low level to which the death-rate from puerperal causes has fallen in recent years is all the more remarkable in view of the abnormal proportion of first births in the total of births upon which the death-rate for these years is based. It is a well established fact that puerperal mortality is higher in first confinements than in subsequent confinements.

The rate of deaths from puerperal causes is frequently, though not quite accurately, referred to as “the maternal death-rate.” It should be noted, however, that the class provided for puerperal causes in the international classification covers all deaths from accidents and diseases of pregnancy and parturition, and is not limited to deaths resulting from accouchements of normal women after more or less normal pregnancies. If it were possible to exclude certain types of puerperal cases a true maternal death-rate would result—considerably lower than that shown for all puerperal accidents and diseases. Full distinction cannot be made, but it may be mentioned that the 111 deaths from puerperal causes during 1938 included 32 from abortion, of which 30 became septic cases. Including these 30 deaths from septic abortion there were 51 deaths from puerperal septicæmia in 1938.

The next table shows the deaths from puerperal causes during each of the last five years, grouped in the divisions into which such causes are divided in the international classification.

Group.Number of Deaths.Rate per 1,000 Live Births.
1934.1935.1936.1937.1938.1934.1935.1936.1937.1938.
Abortion with septic conditions42231424301.730.960.560.921.10
Abortion without septic conditions specified589620.200.330.360.230.07
Ectopic gestation4453..0.160.170.210.11..
Other accidents of pregnancy16......0.040.25......
Puerperal hæmorrhage99196110.370.380.760.230.40
Puerperal septicemia178914210.700.330.360.540.77
Puerperal albuminuria and eclampsia15211816120.620.880.720.620.44
Other toxæmias of pregnancy15131219170.620.540.480.730.63
Puerperal phlegmasia alba dolens, embolus, sudden death631190.250.120.040.040.33
Other accidents of childbirth465590.160.250.210.190.33
Other conditions of the puerperal state....................
    Totals11810192941114.854.213.703.614.07

Puerperal septicæmia (excluding septic abortion) definitely increased during the last two years, and the 1938 figures represent an appreciable rise in both number and rate. Puerperal embolism also exhibited an unexpected increase in 1938. Puerperal albuminuria and eclampsia and other toxæmias of pregnancy form an important group of puerperal diseases, and an appreciable decrease from these causes was recorded for 1938 in spite of a considerable increase in the number of confinements taking place during the year.

Figures are now available for twenty countries indicating the death-rates from puerperal septicæmia, septic abortion, puerperal eclampsia and albuminuria, and all puerperal causes, per 1,000 live births, and the latest available quinquennial average rates are shown in the following table:—

Country.Death-rate per 1,000 Live Births.
Septic Abortion.Other Puerperal Sepsis.Puerperal Albuminuria and Eclampsia.All Puerperal Causes.
Including Septic Abortion.Excluding Septic Abortion.
Norway0.540.700.652.742.20
Sweden0.760.910.533.322.56
Japan0.010.640.652.662.65
Estonia0.730.490.293.422.69
Italy0.180.950.552.872.69
Netherlands0.320.640.413.072.75
New Zealand1.040.500.734.153.11
Denmark0.330.980.413.783.45
England and Wales0.411.170.604.053.64
Switzerland0.660.760.534.493.83
Germany1.391.040.525.243.85
Australia1.440.830.815.363.92
Eire0.121.360.754.544.42
Union of South Africa0.571.840.565.004.43
Canada0.591.200.985.134.54
United States of America0.901.231.085.704.80
Greece0.082.840.095.255.17
Northern Ireland0.261.641.005.645.38
Scotland0.371.940.825.765.39
Chile0.503.510.548.327.82

When deaths from septic abortion are excluded from the puerperal mortality figures, a measure of what may be termed the true maternal mortality rates of the various countries can be obtained. On this basis New Zealand had the seventh lowest rate of the twenty countries covered by the above table.

The stigma of a high septic abortion mortality rate lies upon New Zealand at the present time. The average rate for this country for the latest quinquennium for which international comparisons are available places New Zealand third highest in the above list of countries.

The figures quoted in the above table, however, cannot be taken as strictly comparable, as wide variations in methods of assignment of deaths due to puerperal causes exist in different countries, particularly as regards the registration of deaths from abortion. The general tendency in most countries is for the statistics relating to puerperal mortality to be lower than would be the case if these statistics were established on a basis akin to that adopted in New Zealand.

DEATHS FROM EXTERNAL CAUSES.

Deaths from external causes, apart from suicide, claim approximately 5 per cent. of the total deaths. Deaths from external causes in each of four years at quinquennial intervals are given in the next table.

Cause of Death.Number of Deaths.Rate per 1,000,000 of Mean Population.
1923.1928.1933.1938.1923.1928.1933.1938.
Homicide1110141297108
Accidental causes—        
Poisoning111911991476
Conflagration16191151314110
Burns and scalds2533222620241517
Died under anæsthetic, asphyxia, &c.252477201755
Drowning1671441271491311038798
Firearms1523222312161515
Falls369612212228698380
In mines and quarries141614171112911
Crushing176283214337138203146222
Injuries by animals158917126611
Fractures (causes not specified)3215125241183
Other5664487243463348
Totals599754623811470542425534

The number of deaths recorded from all accidental causes in 1938 was 799, corresponding to a rate of 5.26 per 10,000 of population. Although this represents, by comparison with 1923, an increase of 211 in the number of deaths, the death-rate has increased by only 0.65 per 10,000 of population. Noticeable decreases are shown for drowning and fractures (causes not specified). Part of the large increase between 1923 and 1938 in the death-rate from accidental falls is due to fuller information being obtained in a proportion of cases formerly classified under the heading of “fractures (causes not specified).”

In view of the steady rise in the number of deaths attributable to transport accidents, it is advisable to reduce the figures and rates to their respective headings. In classifying deaths under these various subheadings the rule of assignment is that in fatalities due to collisions of railway-trains and electric tram-cars with motor-vehicles the death is assigned to the railway-train or electric tram-car as being the heavier and more powerful vehicle. In the case of collisions between motor-vehicles and horse-drawn vehicles the death is assigned to the motor-vehicle.

In the following table the number and rate of deaths resulting from railway, tramway, and motor-vehicle accidents during each of the last ten years are given.

Year.Deaths due to Accident.Rate per Million of Population.
Railway.Tramway.Motor-vehicle.Railway.Tramway.Motor-vehicle.
1,929495178354127
1,930638220446155
1,931409159286110
1,932279159196109
1,93331712021582
1,934315152213103
1,935217166145112
1,9364110202277135
1,9374110195277130
1,938527230345151

Deaths from motor-vehicle accidents recorded an appreciable increase up to 1930, but this trend was reversed during the depression years, largely due to a great reduction in the number of motor-vehicles on the road during that period. With the advent of more prosperous times, the toll of the motor-vehicle again mounted, although, fortunately, scarcely in proportion to the tremendous increase in motor-vehicular traffic on the highways of the Dominion. The 1938 figures, both number and rate, were the highest ever recorded in New Zealand. The figures (which do not include deaths of Maoris) are exclusive of accidents where persons have been killed in collisions between motor-vehicles and trains or trams. For 1938 there were 14 deaths from such accidents, bringing the total number of deaths in cases where a motor-vehicle was an agent up to 244. The corresponding figure for 1937 was 213. Further data regarding accidents will be found elsewhere in this volume (see Index). A later section is devoted wholly to statistics of industrial accidents.

SUICIDES.

The suicidal deaths in 1938 numbered 188—males 150, females 38—the death-rate per 10,000 of mean population being 1.24.

Year.Number of Suicidal Deaths.Rate per 10,000 of Population.
Males.Females.Totals.Males.Females.Totals.
1,934142391811.900.541.23
1,935114351491.520.481.00
1,936114351491.510.481.00
1,937109581671.430.781.11
1,938150381881.950.511.24

The rate of suicidal deaths, until recent years, has been gradually increasing, as is evidenced by the following table presenting, for annual averages of various quinquennia, the suicide-rate per 10,000 of mean population:—

Annual average duringMales.Females.Both Sexes.
1895-991.480.310.93
1900-041.660.311.02
1905-091.620.341.02
1910-141.830.411.16
1915-191.790.401.10
1920-241.920.461.20
1925-292.170.561.38
1930-342.290.551.44
1935-38 (4 years)1.600.561.09

A comparison of the average annual rates for the latest quinquennial periods available for the undermentioned countries is as follows:—

Country.Quinquennium.Rate per 10,000 of Population.
* Registration area.
Eire1933-370.33
Northern Ireland1934-380.45
Greece1932-360.55
Ceylon1930-340.59
Norway1932-360.65
Chile1932-360.66
Netherlands1933-370.81
Italy1932-360.85
Canada1934-380.85
Lithuania1932-360.87
Scotland1933-371.00
Union of S. Africa1933-371.00
Rumania1933-371.03
New Zealand1934-381.12
Australia1933-371.17
England and Wales1933-371.31
United States*1933-371.48
Sweden1931-351.56
Uruguay1931-351.57
Belgium1932-361.72
Denmark1932-361.83
Finland1932-361.87
France1932-362.03
Japan1932-362.16
Czechoslovakia1933-372.27
Estonia1933-372.44
Switzerland1933-372.63
Germany1932-362.84
Hungary1933-373.17
Spain1931-353.66

MAORI DEATHS.

Deaths of Maoris are not included in the statistics quoted in preceding pages of this subsection. Their omission is due principally to the fact that a considerably lower standard of accuracy and completeness of data exists in the case of Maori registrations than in the general death records. Registrations of Maori deaths during each of the last five years have been as follows:—

Year.Number.Rate per 1,000 of Maori Population.
Males.Females.Totals.Males.Females.Totals.
1,9346606231,28316.2416.5716.40
1,9357506971,44717.9018.0317.96
1,9368477551,60219.6418.9919.33
1,9378317261,55718.7817.7518.29
1,9381,1071,0132,12024.4624.1824.32

As indicated on p. 100, the number and rate of Maori deaths are probably slightly understated.

The Maori death-rate has recently exhibited a definite rising tendency, and in 1938 a record in both number and rate was established. This was partly due to the epidemic of measles, which, as has already been stated, caused a heavy death-roll among the Maori population.

The rates for the two sexes are much more nearly equal for Maoris than for the rest of the population, the female rate being indeed higher than the male in two of the five years shown above.

Until recently, the only statistics available concerning Maori deaths were merely numbers of deaths according to sex. A tabulation was, however, made in 1925 for the five years 1920-24 on the basis of age and cause of death, and summarized statistics were prepared and published in the 1926 and 1927 issues of the Year-Book. Annual tabulations are now made, and the detailed statistics may be found in the “Annual Report on Vital Statistics.” The ages of Maoris whose deaths were registered during the year 1938 were as follows:—

Age, in Years.Males.FemalesTotals.
Under 1311255566
1 and under 5237195432
5 and under 10454489
10 and under 15334881
15 and under 20384280
20 and under 25315788
25 and under 30304070
30 and under 35282553
35 and under 40252853
40 and under 45172542
45 and under 50312859
50 and under 55302555
55 and under 60362157
60 and under 65343165
65 70473077
70 75402767
75 80362662
80 85202444
85 90151328
90 95131023
95 100257
100 and over268
Unspecified6814
    Totals1,1071,0132,120

With the exception of diphtheria and scarlet fever (only 4 deaths of Maoris from the latter disease being recorded during the last ten years), epidemic and infectious diseases generally exact a much heavier toll proportionately among Maoris than among the non-Maori population, the most noteworthy examples being tuberculosis, particularly of the respiratory system, and typhoid fever. Other diseases of the respiratory system also show much higher rates for Maoris than for Europeans, and the same state of affairs is disclosed for diarrhœal diseases and stomach complaints.

On the other hand, there is a much lower mortality among Maoris from certain diseases which rank high as causes of death among the non-Maori population. Principal among these are cancer, heart-disease and other diseases of the circulatory system, nephritis, the group of general diseases which includes diabetes and exophthalmic goitre, and the group of diseases of the nervous system which includes apoplexy and cerebral hæmorrhage. Malformations show lower rates for Maoris than for Europeans, but the indefinite nature of the data in the registration entries covering the deaths of many Maori infants may be partly responsible. The figures of deaths from malformations and the group “early infancy” taken in conjunction indicate a much higher rate for Maoris from these causes as a whole than for Europeans.

A summary is here given showing deaths from the principal causes and groups of causes.

Cause of Death.Number of Deaths.Rate per 10,000 of Mean Maori Population.
1934.1935.1936.1937.1938.1934.1935.1936.1937.1938.
Typhoid fever10192720241.282.363.262.352.75
Measles131122121.660.120.120.2424.32
Whooping-cough2757568163.457.086.760.941.84
Diphtheria252260.260.620.240.240.69
Influenza46413834605.885.094.583.996.88
Dysentery101264151.281.490.720.471.72
Pulmonary tuberculosis24124324323629130.8030.1729.3227.7233.39
Other forms of tuberculosis54598668766.907.3210.377.998.72
Cancer21464337572.685.715.194.356.54
Cerebral hæmorrhage16212018112.042.612.412.111.26
Convulsions (under five years)7151411190.891.861.691.292.18
Heart-diseases1098410313215113.9310.4312.4315.5017.33
Bronchitis28255127463.583.106.153.175.28
Broncho-pneumonia751121481631969.5913.9017.8619.1422.49
Pneumonia16216917018624020.7020.9820.5121.8427.54
Diarrhœa and enteritis285758481083.587.087.005.6412.39
Nephritis14162830201.791.993.383.522.30
Senility848788948310.7410.8010.6211.049.52
Violence—          
  Suicide86138101.020.741.570.941.15
  Accident72768074669.209.439.658.697.57
  Homicide21..1..0.260.12..0.12..
Cold, cough, chest trouble, &c.1434..0.130.500.360.47..
Stomach trouble, internal trouble, &c.1....2..0.13....0.23..
Ill-defined or not specified26342839583.324.223.384.586.65
Other causes22625729630935528.8931.9035.7136.2940.73
    Totals1,2831,4471,6021,5572,120163.98179.62193.28182.86243.24

Although measles was the principal cause of the phenomenal rise in the Maori death-rate during 1938, as is seen from the above table, almost every cause of death listed shows an appreciable increase. Influenza was particularly severe; and pulmonary tuberculosis, which for three years had recorded a definite decrease in the death-rate, has now risen above the level established in 1934. Respiratory diseases also ranked high in fatal incidence in 1938.

As stated earlier, the records of Maori births and deaths are not nearly so accurate and complete as those covering the non-Maori population. This is particularly the case as regards causes of deaths, in spite of the fact that considerable improvement has been effected in the last few years.

From 1925 onwards information has been obtained as to whether the cause of death has been certified by a medical practitioner or a Coroner's inquest. As a further indication of the improvements achieved in the specifying of the causes of deaths of Maoris, it may be said that in 1925, out of a total of 867 deaths, 446 or 51 per cent. were definitely shown to have been certified, while in 1938 the number so certified was 1,486 out of 2,120 registrations, equivalent to 70 per cent.

As regards infant mortality, the Maori rate is much higher than the non-Maori, principally owing to the ravages of epidemic diseases, tuberculosis, respiratory diseases, and diarrhœal diseases. The infant mortality rate for the first year of life was, for the ten years 1929-38, 106 per 1,000 births in the case of Maoris, as compared with 33 per 1,000 among non-Maori infants, and this in spite of the fact that for the first month of life the Maori rate is on the average slightly lower. It is during the succeeding eleven months that the heaviest toll of Maori infant life is taken.

The numbers and rates per 1,000 live births for the last ten years are given in the next table.

Year.Maoris.Non-Maoris.
Number of Deaths under One Year.Rate per 1,000 Maori Births.Number of Deaths under One Year.Rate per 1,000 Non-Maori Births.
1,92917478.5291234.10
1,93018888.5192434.48
1,93122195.5985632.15
1,93226295.4577731.22
1,93327392.6177031.64
1,93427993.5978132.11
1,935355109.2077332.26
1,936399109.9276930.96
1,93736692.1781231.21
1,938566153.2697135.63

The next table shows for the year 1938 principal causes of deaths of Maori infants under 1 year, classified according to age.

Cause of Death.Under 1 Day.1 Day and under 2 Days.2 Days and under 1 Week.1 Week and under 2 Weeks.2 Weeks and under 3 Weeks.3 Weeks and under 1 Month.1 Months and under 2 Months.2 Months and under 3 Months.3 Months and under 6 Months.6 Months and under 9 Months.9 Months and under 12 Months.Totals.
Measles..............39213265
Whooping-cough................1427
Diphtheria..................11 
Influenza............1162313
Dysentery............1124..8
Tuberculosis........1....144515
Venereal disease................1....1
Other infectious diseases................1..45
Infantile convulsions........113..34113
Bronchitis..............164213
Broncho-pneumonia........1277303424105
Pneumonia....2..123515242375
Other respiratory diseases..............1..225
Diseases of the stomach........1..1..2116
Diarrhœa and enteritis........114420181967
Hernia, intestinal obstruction............1..2....3
Congenital malformations2223211131..18
Congenital debility &c.2111215136326
Injury at birth211..1..1........6
Premature birth23912534..1......57
Other causes peculiar to early1221111..11..11
Accident....11......23....7
Other defined causes......13..2136218
Unspecified or ill-defined1..11........531021
    Totals3115221318133130120139134566

The huge increase in the Maori infant mortality rate for 1938 appears to have been principally among infants who survived the first three months of life, but who died before attaining one year of age. The principal causes of the high infant mortality rate in 1938 were measles, broncho-pneumonia and pneumonia, and diarrhœa and enteritis.

SUBSECTION D.—MORBIDITY.

INTRODUCTORY.

DEATH-RATES are of great value as indicating the relative healthiness of different countries or of different years. The statistics of causes of registered deaths are of further use as showing the incidence of fatal diseases or accidents, and as indicating in a general way the relative rise or fall of diseases over a series of years. For instance, the fall in the incidence of tuberculosis and the increase in cancer (discussed in Subsection C of this section) can be readily traced from the records of deaths attributed to these causes in different years.

In comparisons of healthiness based on death-rates, however, the effect of the advance of medical science in recent years is not taken into account. It is common knowledge that many diseases regarded a few decades ago as incurable now show a fair percentage of recoveries. Similarly, the death-rates in epidemics are in general much lower now than formerly, owing partly to the steps taken to prevent the spread of the disease, partly to the necessity of early notification in most countries, and partly to increased medical knowledge. Again, many diseases seldom or never result fatally.

Of recent years much attention has been devoted in different countries to the possibility or otherwise of obtaining reliable statistics of morbidity. In New Zealand certain diseases are notifiable, but beyond this and the statistics of industrial accidents, given in Section XLII, practically the only record other than that of fatality is the information ascertainable from the returns of patients treated in public hospitals. The sickness experience of friendly societies' members is mentioned briefly in Section XXX. In the absence of full statistics of sickness, however, information from the sources mentioned is of considerable value, and gives a fair indication of the prevalence of the more important diseases.

NOTIFICATIONS OF DISEASES.

Notifications of notifiable diseases during 1938 are shown for each month of the year, in the following table:—

Disease.January.February.March.April.May.June.July.August.September.October.November.December.Totals.
Scarlet fever726583687782724523252525662
Diphtheria32254484100110748756485670786
Enteric fever47728753..241564
Pulmonary tuberculosis768682599178947873102116961,031
Cerebro-spinal meningitis233....31..162324
Acute poliomyelitis91381..............22
Pneumonic influenza..1....34751024..36
Erysipelas221631254639747060524938522
Puerperal fever—..........................
  Ordinary12913853111314141013125
  Following abortion241118101251411510810138
Eclampsia34107710210456674
Tetanus..11..2..231......10
Hydatids42354551..44946
Trachoma1......11....1..2..6
Ophthalmia neonatorum..12..3231342..21
Lethargic encephalitis....211......1..2..7
Food poisoning..2315......1....2..23
Dysentery222575355..10..313161
Undulant fever21323..13112221
Actinomycosis....1..2..............3
Anthrax..........................
Lead-poisoning1..2..2....1..1..18
    Totals2662373363694033543653422532792952913,790

The foregoing figures are exclusive of notifications of diseases of Maoris, figures for whom are far from complete. The following were the notifications of principal diseases among Maoris during 1938: Diphtheria, 28; enteric fever, 65; tuberculosis, 219; influenza, 8; puerperal fever, 24; trachoma, 10; bacillary dysentery, 33; hydatids, 6; ophthalmia neonatorum, 10; erysipelas, 10; other, 10; total, 423.

A quinquennial summary of notifications (exclusive of Maori notifications) of certain principal diseases is now given. Substantial proportionate increases, as compared with 1937, are recorded during 1938 for diphtheria, pulmonary tuberculosis, and erysipelas.

Disease.1934.1935.1936.1937.1938.
Scarlet fever7628631,152924662
Diphtheria436747513599786
Enteric fever5187615564
Pulmonary tuberculosis8248089349151,031
Cerebro-spinal meningitis1910121324
Acute poliomyelitis1488776522
Erysipelas239252291329522
Puerperal fever and septic abortion299257216298263

Information as to case-fatality in regard to the first three diseases mentioned above is given in the next table for each of the last ten years:—

Year.Diphtheria.Scarlet Fever.Enteric Fever.
Cases notified.Deaths.Case-fatality.Cases notified.Deaths.Case-fatality.Cases notified.Deaths.Case-fatality.
   Per Cent.  Per Cent.  Per Cent.
1,9291,687925.454,848270.56278227.91
1,9301,440584.032,244160.7114974.70
1,9311,327554.141,304110.84161106.21
1,932802404.9982960.72195115.64
1,933963272.3678340.5110665.66
1,934436263.9676281.055111.96
1,935747334.4286380.93871011.49
1,936513203.901,15280.6961813.11
1,937599244.0192460.6555916.36
1,938786313.9466220.3064812.50

All three diseases, on the whole, show marked reductions in incidence during the period covered, although during the two years 1937-38 notifications of diphtheria have shown substantial increases. Scarlet fever recorded in 1938 the lowest fatality rate for the period.

MEASLES.

The epidemic of measles which was widespread in New Zealand during 1938, though not particularly fatal in character (except among the Maori population), caused considerable economic loss through sickness. Measles is not a notifiable disease, and consequently there is no means of measuring statistically the extent of the incidence of the disease. The public-hospital statistics of the Dominion, however, afford an insight into various aspects of the epidemic, as a considerable number of sufferers from the disease are treated in public hospitals.

Information along these lines has been available since 1914, and, from the aspect of the number of patients treated in hospital, the 1938 epidemic was easily the most severe. The number concerned during that year was 2,909 (1,337 males and 1,572 females), the next highest being 1915, with 661 patients (597 males and 64 females), followed by 1920, with 581 patients (269 males and 312 females). The pronounced female excess in 1920 and in 1938 may be ascribed to the fact that hospital nurses who contract measles are all treated in hospital. This theory is largely substantiated by the statistics of age-incidence of measles, which show a preponderance of females in the age-groups in which nurses would principally be included. The extraordinary male excess shown for 1915 is probably accounted for by the outbreak of measles in the Trentham military camp. It is on record that in June and July of 1915 no fewer than 425 cases of measles occurred in the camp, and no doubt many of these were transferred to Wellington Hospital for isolation and treatment. This hospital was the only one to show a pronounced male excess in that year.

ACUTE POLIOMYELITIS (INFANTILE PARALYSIS).

Acute poliomyelitis has been epidemic in New Zealand on several occasions. The most recent outbreak of serious proportions was that which occurred in 1937. This epidemic began in December, 1936, and lasted until November, 1937. During that period a total of 896 cases was notified, while 46 deaths were recorded (including Maoris).

Certain aspects of the epidemic were fully discussed in the 1938 issue of the Year-Book, while Appendix B on page 72 of the report of the Director-General of Health for the year ended 31st March, 1938 (Parliamentary Paper H.-31), contains a comprehensive survey of the course and nature of the epidemic as revealed by the statistics of notifications of the disease received by the Department of Health. Some of the statistical tables appearing in that report were summarized in the 1939 issue of the Year-Book.

PUBLIC HOSPITALS: PATIENTS TREATED.

The public hospitals to which the following statistics relate include all those hospitals under the control of the various Hospital Boards; two hospitals which are also old people's homes (Greytown and Reefton); five special infectious diseases hospitals; the various tuberculosis institutions and special sanatoria, and such public maternity hospitals as have also provision for emergency general cases. All St. Helens Hospitals, private hospitals, and solely maternity hospitals, are excluded. Out-patients are not covered by the statistics, which, however, relate to all in-patients—whether European or Maori.

During the year 1938 the total admissions to public hospitals in New Zealand numbered 101,947. There were 5,376 patients in hospital at the beginning of the year, the total cases dealt with during the year being thus 107,323, equal to 668 per 10,000 of mean population, including Maoris; or, in other words, equivalent to one person out of every fifteen in the Dominion receiving some degree of treatment in public hospitals in 1938, although, of course, the total of cases mentioned includes an unknown number of multiple admissions of the same persons.

The following table shows for each of the last ten years the total number of patients treated, and the proportion of population:—

Year.Total Patients treated.Rate per 10,000 of Mean Population.
1,92983,812569
1,93081,065543
1,93179,176523
1,93279,143518
1,93383,817544
1,93488,085568
1,93593,173596
1,93698,444625
1,93798,235618
1,938107,323668

Up to the close of 1929 patients (i.e., in-patients) treated in public hospitals had shown marked increases annually not only in numerical totals, but also in ratio to population. The three years subsequent to 1929 reversed this position by recording successive declines in both number and ratio to population.

Some part of this decline is attributable to the diminution in the incidence of the principal epidemic diseases, in particular scarlet fever, and, to a lesser extent, diphtheria. The special fever hospitals in the large centres were virtually empty during those years, and in one case actually closed. Another partial explanation may be in changes of administrative policy by some controlling authorities.

The significance of the coincidence of the downward movement with the progress of the depression commencing in 1930 suggests that the major cause is inherent in the direct and indirect phenomena of the depression. Comparative impoverishment may in some instances have acted as a deterrent where normally such persons would have entered hospitals for treatment. For similar reasons others might have become out-patients instead of in-patients. There is also the possibility that in individual cases the enforced changes in living conditions (e.g., change to outdoor work) may have resulted in improved health.

The decline between 1929 and 1932 in the number of in-patients is due chiefly to a fall in the figures for males, their numbers in 1932 being exceeded by females for the first time. The fall in total patients treated was checked in 1933, when a rise of over 4,500 was recorded in the number of in-patients treated, followed by further increases of over 4,000 in 1934, 5,000 in 1935, and 5,000 in 1936. The 1937 figures showed a small decrease in both number and rate, but the following year, 1938, witnessed a phenomenal rise in the hospital population, when the record total of 107,323 in-patients was established. This represents an increase of over 9,000 patients over 1937. Measles accounts for nearly 3,000 of the increase, and the following diseases also record appreciable increases: German measles (1,000), diseases of the ears and mastoid process (900), and bronchopneumonia and pneumonia (1,000). Generally speaking, the increases in recent years in public-hospital population have been spread over the majority of the most important diseases treated. Lowering of fees in some cases, improved financial conditions, delayed effect of depression exigencies on the health and stamina (particularly of the poorer classes), may all be contributory factors.

From figures given in the Appendix to the Annual Report of the Department of Health, it would appear that the average duration in hospital in respect of each admission was approximately twenty-two days. On this basis sickness, as represented by treatment of in-patients in the public hospitals alone, aggregated approximately 337,000 weeks for the year 1938.

CONDITION ON DISCHARGE.

Of the 107,323 persons treated as in-patients in public hospitals in 1938, 63,981 were discharged as recovered, 27,006 as relieved, and 4,709 as unrelieved. Deaths in hospital numbered 5,959, and 5,668 patients were still in hospital at the end of the year.

The numbers of admissions, discharges, and deaths for each of the last five years were—

Year.Admissions.Discharges.Deaths.Total Discharges and Deaths.
Recovered.Relieved.Unrelieved.
1,93483,47352,79122,7933,4284,38383,395
1,93588,48356,82123,3493,5624,49788,229
1,93693,50060,02424,1564,1504,95293,282
1,93793,07258,32125,2164,0485,27492,859
1,938101,94763,98127,0064,7095,959101,655

The following percentage analysis of total cases dealt with during each of the five years is of interest:—

Year.Discharged asDied.Remaining at End of Year.
Recovered.Relieved.Unrelieved.
1,93459.9325.883.894.985.32
1,93560.9825.063.824.835.31
1,93660.9724.544.225.035.24
1,93759.3725.674.125.375.47
1,93859.6225.164.395.565.27

SEXES OF PATIENTS.

For many years males considerably outnumbered females among hospital patients. In 1932, for the first time, however, and in each of the three following years, females were in the majority. During the last three years the proportion of males has once again shown a tendency to increase. The death-rate is invariably higher among males than among female patients, chiefly due to a higher average incidence of serious types of diseases and of accident cases among male patients than among female patients.

Year.Discharges and Deaths.Deaths.Death-rate per 1,000 Cases.
Males.Females.Males per 100 Females.Males.Females.Males per 100 Females.Males.Females.
1,92940,98537,7861082,5691,5561606341
1,93039,55736,6871082,4711,5081646241
1,93137,86736,7551032,3131,5091536141
1,93237,09337,563992,3451,5371536341
1,93339,31739,888992,4321,6041526241
1,93441,38042,015982,6191,7641486342
1,93544,10644,1231002,6751,8221476141
1,93646,94146,3411012,9731,9791506343
1,93747,02545,8341033,2572,0171616944
1,93851,09150,5641043,5832,3761517047

AGES OF PATIENTS.

The ages of patients who were discharged from, or who died in, public hospitals during 1937 and 1938 were as shown in the following summary:—

Ages of Patients, in Years.1937.1938.
Males.Females.Totals.Males.Females.Totals.
Under 54,6573,2967,9535,2713,9829,253
5 and under 104,7543,8868,6405,1664,2039,369
10 153,4042,8026,2063,9863,1947,180
15 258,14910,27618,4259,16012,21421,374
25 356,2439,81516,0586,77710,65917,436
35 454,9125,89910,8115,1926,02811,220
45 555,1213,9149,0355,0934,0409,133
55 654,7882,9907,7785,0683,1728,240
65 and over4,8452,7757,6205,2982,9918,289
Unspecified1521813338081161
Totals47,02545,83492,85951,09150,564101,655

SUMMARY OF DISEASES, ETC.

As explained in the preceding subsection, the international classification of diseases and causes of death is used in New Zealand. The following table covers all patients discharged from or dying in public hospitals during the year 1938:—

Class.Discharges.Deaths.Total Discharges and Deaths.
Recovered.Relieved.Unrelieved.Males.Females.Males.Females.
I. Infectious and parasitic diseases8,0783,0936734513156,3186,292
II. Cancer and other tumours1,2161,2055864463081,7072,054
III. Rheumatic diseases, diseases of nutrition and of endocrine glands, and other general diseases1,0321,518174691251,1291,789
IV. Diseases of the blood and blood-forming organs105256434441241248
V. Chronic poisonings and intoxications248132175335847
VI. Diseases of the nervous system and of organs of special sense3,0502,6238073512873,8033,315
VII. Diseases of the circulatory system1,4102,0812196803842,8751,899
VIII. Diseases of the respiratory system5,4911,9411795993145,2043,320
IX. Diseases of the digestive system17,6983,65246727619611,68710,602
X. Diseases of the genito-urinary system4,2782,505400193992,6634,812
XI. Pregnancy, labour, and puerperal state7,800665244 70 8,779
XII. Diseases of the skin and cellular tissue2,833898461392,2261,573
XIII. Diseases of the bones and of the organs of locomotion1,4261,31311025131,927960
XIV. Congenital malformations121235663739266232
XV. Diseases of early infancy16851104828160145
XVI. Senility 105875435156125
XVII. Violence or accident7,7443,8391592901109,2242,918
XVIII. Ill-defined diseases1,2838944222 1,1471,454
    Totals63,98127,0064,7093,5832,37651,09150,564

In the succeeding table the data are reduced to percentages; and, in addition, the ratio of deaths to total cases is given.

Class.Discharges.Deaths.Total Discharges and Deaths.Percentage of Deaths to Total Discharges and Deaths.
Recovered.Relieved.Unrelieved.Males.Females.Males.Females.
I12.6311.4514.2912.5913.2612.3712.446.07
II1.904.4612.4412.4512.963.344.0620.05
III1.615.623.701.935.262.213.546.65
IV0.160.950.911.221.720.470.4917.38
V0.390.490.360.140.130.700.091.98
VI4.779.7117.149.8012.087.446.568.96
VII2.207.714.6518.9816.165.633.7622.29
VIII8.587.193.8016.7213.2110.196.5710.71
IX27.6613.529.927.708.2522.8720.962.12
X6.699.288.495.394.175.219.523.91
XI12.192.465.18..2.95..17.360.80
XII4.433.320.980.360.384.363.110.58
XIII2.234.862.340.700.553.771.901.32
XIV0.190.871.401.031.640.520.4615.26
XV0.260.190.211.341.180.310.2924.92
XVI..0.391.851.511.470.310.2531.67
XVII12.1014.223.388.094.6318.055.773.29
XVIII2.013.318.960.05..2.252.870.08
  Totals100.00100.00100.00100.00100.00100.00100.005.86

PRINCIPAL DISEASES.

A summary is now given of the principal diseases treated in public hospitals during the year 1938. All figures given (including deaths) are inclusive of Maoris.

It should be noted that the disease or condition for the treatment of which a patient is admitted to hospital is not necessarily that which would rank as the cause of death in the death statistics. Cystitis, for instance, ranks comparatively high in hospital cases as the condition immediately affecting the patient, but is frequently only the consequence of some more important disease, which would take precedence of cystitis in the statistics of causes of death. Generally speaking, the hospital returns show only the immediate or final disease or condition for which the patient is treated, and classification for statistical purposes is generally made regardless of the primary cause of that disease or condition. In the death statistics, on the other hand, the primary cause of decease is of paramount importance. In the hospital statistics a case admitted on account of the fracture of any bone is treated and classified as “fracture.” Should the patient die, however, the death would be classified in the mortality statistics according to the cause of the fracture—e.g., motor-car accident, accidental fall, &c.

SUMMARY OF PRINCIPAL DISEASES TREATED IN PUBLIC HOSPITALS DURING 1938.

Diseases.Total Deaths registered in the Dominion.Total Cases in Public Hospitals.Deaths in Public Hospitals.
Number.Proportion of Total Deaths in Dominion.Proportion of Total Cases in Public Hospitals.

* See letterpress ante.

*See letterpress ante.

† Excluding 100 cases of “residual poliomyelitis,” which includes an unknown number of duplicate admissions for treatment of resultant paralysis.

    Per Cent.Per Cent.
Typhoid and paratyphoid fever321192681.2521.85
Measles3752,8199625.603.41
Scarlet fever35784*0.69
Whooping-cough371191027.038.40
Diphtheria377233286.494.43
Influenza1931,2955629.024.32
Erysipelas114201090.912.38
    Per Cent.Per Cent.
Acute poliomyelitis41604100.002.50
Pulmonary tuberculosis7731,91131540.7516.48
Tuberculous meningitis71715780.1680.16
Other forms of tuberculosis1207365848.337.88
Venereal diseases588993051.723.34
Septicæmia (non-puerperal)207461470.001.88
Hydatids191211263.169.92
Other infectious or parasitic diseases811,8934251.852.22
Cancer1,8442,35069937.9129.74
Non-malignant tumours931,4115559.143.90
Rheumatism and gout711,1114664.794.14
Diabetes29081710837.2413.22
Exophthalmic goitre774872431.174.93
Other goitres5313240.000.64
Other general diseases351901440.007.37
Anæmias553563461.829.55
Leukæmia and Hodgkin's disease85994350.5943.43
Other diseases of the blood and blood-forming organs1034880.0023.53
Alcoholism83878100.002.07
Chronic poisonings118......
Diseases of the spinal cord641621929.6911.73
Cerebral hæmorrhage, apoplexy58433226044.5278.31
Other diseases of the nervous system5493,33532058.299.60
Diseases of the eyes..1,240......
Diseases of the ears and mastoid process502,0493978.001.90
Diseases of the heart4,3212,63396222.2636.54
Diseases of the arteries5562326712.0528.88
Diseases of the veins207721050.001.30
Other diseases of the circulatory system281,1372589.292.20
Bronchitis2461,7986727.243.73
Broncho-pneumonia5501,21127149.2722.38
Pneumonia8532,50642049.2416.76
Pleurisy697084666.676.50
Asthma396201025.641.61
Other diseases of the respiratory system1731,6819957.235.89
Diseases of the mouth41,330375.000.23
Diseases of the pharynx and tonsils238,242939.130.11
Ulcer of the stomach and duodenum1391,0967553.966.84
Other diseases of the stomach21832733.330.84
Diarrhœa and enteritis2051,3327034.155.26
Appendicitis1294,8309170.541.88
Hernia, intestinal obstruction1221,8469880.335.31
Other diseases of the intestines171,06021*1.98..
Diseases of the liver (excluding hydatids)66902537.8827.78
Diseases.Total Deaths registered in the Dominion.Total Cases in Public Hospitals.Deaths in Public Hospitals.
Number.Proportion of Total Deaths in Dominion.Proportion of Total Cases in Public Hospitals.
* See letterpress ante.
    Per Cent.Per Cent.
Diseases of the gall-bladder and biliary passages861,3964552.333.22
Peritonitis1715618*11.54
Other diseases of the digestive system13791076.9212.66
Nephritis60139915325.4638.35
Other diseases of the kidneys701,1112941.432.61
Urinary calculi17568952.941.58
Diseases of the bladder10638880.001.25
Diseases of the urethra10238770.002.94
Diseases of the prostate1185106454.2412.55
Diseases of other male genital organs27603*0.40
Diseases of the female genital organs272,9391970.370.65
Diseases of the breast..312......
Normal labour..4,378......
Septic abortion301821653.338.79
Puerperal septicæmia271531866.6711.77
Other puerperal diseases and accidents754,0663648.000.89
Diseases of the skin443,7992250.000.58
Osteomyelitis3052031*5.96
Other diseases of the bones, &c.102,367770.000.30
Malformations2324987632.7615.26
Diseases of early infancy5953057612.7724.92
Senile debility, &c.4842818918.3931.67
Burns and scalds346552985.294.43
Fractures, dislocations, &c.94,764300*6.30
Other external causes1,0326,723716.881.06
Unspecified or ill-defined652,60123.080.08
    Totals16,874101,6555,95935.315.86

Chapter 6. SECTION VI.—PUBLIC HEALTH, HOSPITALS, ETC.

SUBSECTION A.—PUBLIC HEALTH.

PUBLIC HEALTH ADMINISTRATION.

The law relating to public health in New Zealand is contained in the Health Act, 1920, which repealed the consolidated Public Health Act, 1908, and its amendments. A full account of the Act was given in the 1927 issue of the Year-Book.

For the administration of the Act there is established a Department of Health, with a Director-General of Health as chief administrative officer. The Department comprises Divisions of Public Hygiene, Hospitals, Nursing, School Hygiene, Maternal Welfare, and Dental Hygiene, each of which is under the supervision of a Director.

For purposes of local administration the country is divided into health districts, each of which is under the charge of a Medical Officer of Health, who must be a medical practitioner with special qualifications in public health. These officers are entrusted with wide powers, and act as advisers of the local governing bodies in matters pertaining to the public health.

In addition to being charged with the administration of the Health Act, the Department controls the registration of medical practitioners, dentists, nurses, midwives and maternity nurses, opticians, masseurs, and plumbers. It supervises the sale of food and drugs (including poisons and “dangerous” drugs), and protects the public against exploitation by fraud in connection with alleged remedies. The Department also administers the law covering the control of cemeteries and crematoria.

The Director-General of Health is Chairman of the Medical Research Council set up in 1938. The functions of the Council have been set out in the following terms:—

  1. To correlate, as far as may be practicable, medical research work in New Zealand.

  2. To recommend what researches and investigations should be undertaken.

  3. To appoint separate ad hoc committees to take charge of each investigation.

  4. To recommend what amount of money should be allocated for medical research each year, and to suggest an apportionment of the amount to separate investigations.

The medical and dental inspection and treatment of school-children are carried out by special divisions of the Department.

NOTIFIABLE DISEASES.

The system of notification of certain diseases has been in force in New Zealand for many years, and the list of notifiable diseases has undergone several alterations. The list at present is as follows:—

  1. Notifiable infectious diseases mentioned in Part I of First Schedule of Health Act, 1920:—

    Anthrax.Plague (bubonic or pneumonic).
    Cerebro-spinal fever (cerebro-spinal meningitis).Puerperal fever (puerperal septicæmia and puerperal sapræmia).
    Cholera.Scarlet fever (scarlatina).
    Dengue.Smallpox (variola, including varioloid, alastrim, amaas, Cuban itch, and Philippine itch).
    Diphtheria. 
    Erysipelas. 
    Enteric fever (typhoid fever, paratyphoid fever).Typhus.
    Leprosy.Yellow fever.
  2. Infectious diseases declared notifiable by Gazette notice:—

    Dysentery (amœbic and bacillary).Syphilis.*
    * In certain circumstances. (See letterpress post.)
    Encephalitis lethargica.Gonorrhœa.*
    Fulminant influenza.Soft chancre.*
    Pneumonic influenza.Undulant fever.
    Septicæmic influenza.Puerperal fever, involving any form of puerperal sepsis other than or in addition to puerperal septicæmia and puerperal sapræmia.
    Ophthalmia neonatorum.Any form of sepsis or sapræmia following abortion or miscarriage.
    Acute poliomyelitis (infantile paralysis). 
    Trachoma (granular conjunctivitis, granular ophthalmia, granular eyelids). 
    Tuberculosis (pulmonary) 
    Septicæmia consequent on abortion or miscarriage. 
  3. Notifiable diseases, other than infectious, mentioned in Second Schedule:—

    Actinomycosis.Food poisoning (botulismus, ptomaine poisoning).
    Ankylostomiasis (hookworm disease).Chronic lead poisoning.
    Bilharziosis (endemic hæmaturia, Egyptian hæmaturia).Phosphorus poisoning.
    Beriberi.Tetanus.
    Hydatids. 
  4. Notifiable disease, other than infectious, declared by Gazette notice:—

    Eclampsia.

SOCIAL HYGIENE REGULATIONS.

In November, 1924, syphilis, gonorrhœa, and soft chancre were declared to be infectious diseases within the meaning of the Health Act, 1920; and in July of the following year provision was made for the compulsory notification of these diseases in certain circumstances, and for the treatment of those affected by venereal disease in a communicable form.

Under these regulations it is incumbent upon a medical practitioner, or a medical officer of a hospital, who has been treating any person suffering from venereal disease in a communicable form to notify the Director-General of Health if such person fails for more than two weeks (after the date fixed in that behalf by the medical practitioner or medical officer) to attend for treatment, unless he is known in the meantime to have placed himself under treatment of some other qualified person.

If the Director-General of Health has reason to believe (either from a notification, as provided for above, or otherwise) that any person is suffering from venereal disease in a communicable form, he may require such person to submit himself for examination to some medical practitioner, and to supply a medical certificate as to the state of his health in relation to venereal disease. If a medical certificate is not supplied within the time specified, or if the certificate does not definitely disclose whether or not the person to whom it relates is suffering from venereal disease in a communicable form, the Director-General of Health may authorize two medical practitioners to examine such person.

In cases where a medical certificate is not obtainable, or where the certificate shows the person to be suffering from venereal disease in a communicable form, the Director-General of Health may, if he thinks such a course necessary or expedient in the public interest, authorize a Medical Officer of Health to make an order, under section 84 of the Health Act, 1920, for the removal of such person to a hospital or other place where he may be effectively isolated. On the other hand, on application being made to a Magistrate, an order for examination by two medical practitioners (to be named in the order) is made, and if their report shows that the person is free from venereal disease in a communicable form, the Magistrate then makes an order for his release.

Where treatment is not conveniently obtainable at a public hospital or public clinic, the Director-General of Health may authorize a registered medical practitioner to administer free treatment if the patient is unable to pay. In such cases fees for service are paid by the State according to a scale laid down.

It is an offence for any person, while suffering from venereal disease in a communicable form, to engage in any employment, or to act in any capacity, in or about any factory, shop, hotel, restaurant, house, or other place, if by reason thereof any food intended for consumption by any other person is exposed to infection from venereal disease or is likely to be so affected. If any person suffering from the disease knowingly infects, or does or suffers any act likely to infect, any other person, he is liable to imprisonment for twelve months, together with a fine of £100.

It is the duty of every medical practitioner who is consulted by any person, sixteen years of age or over, suffering from venereal disease in a communicable form, to give such person a notice setting forth the requirements for treatment and for not infecting others, and expressly warning him or her against marrying until medically certified as cured.

Every precaution is taken for the maintenance of secrecy and the avoidance of publicity in the carrying-out of the regulations. Every person concerned in the administration of the regulations is liable to a penalty of £50 if he divulges any information which comes to his knowledge in respect of any person suffering, or suspected to be suffering, from venereal disease.

HYDATID PREVENTION.

In January, 1939, an amendment to the Dogs Registration Act, 1908, came into force requiring local authorities to keep a supply of approved remedies for the cure or prevention of disease in dogs caused by infection from the parasite Echinococcus granulosus. At the time of registration every person registering a dog receives a sufficient amount of an approved remedy to enable that person to treat the dog every three months until the ensuing date of registration, and also printed instructions for the use of the remedy. The approved remedy at present supplied is arecoline hydrobromide. This Act is administered by the Department of Internal Affairs.

DIPLOMAS IN PUBLIC HEALTH.

In addition to the powers of conferring degrees of Bachelor and Master of Surgery and Bachelor and Doctor of Medicine, the Senate of the New Zealand University has power to grant diplomas in public health, and to make regulations for the examination of candidates for such diplomas. The examination for the diploma in public health is held in two parts, which may be taken separately or at the same time.

REGISTRATION OF MEDICAL PRACTITIONERS.

Under the Medical Practitioners Act, 1914, as amended by the Medical Practitioners Amendment Act, 1924, is constituted the Medical Council of New Zealand, consisting of the Director-General of Health and six other registered medical practitioners. One of the six members is appointed on the recommendation of the New Zealand Branch of the British Medical Association.

The Council deals with all applications for registration under the Act, which enacts that every person shall be entitled to registration who satisfies the Council that he is a graduate in medicine and surgery of the University of New Zealand; or registered on the register kept in accordance with the provisions of the Acts regulating the registration of medical practitioners in the United Kingdom, or eligible for registration on such last-mentioned register; or the holder, after a course of not less than five years' study, of a foreign diploma approved by the Council. The Council may, however, refuse to approve any diploma (even in the case of persons registered or eligible for registration in the United Kingdom) unless it appears that New Zealand graduates are, without further examination, entitled to registration in the country granting the diploma. It may also require the holder of a foreign diploma to pass an examination in medicine and surgery to be prescribed and conducted by the Senate of the New Zealand University.

Applicants who are refused registration have the right of appeal to the Supreme Court. The fee for registration is £2, payable on deposit of evidence of qualification. Under the Finance Act, 1932-33 (No. 2), an annual practising certificate (fee 5s.) is required.

The Medical Council is vested with disciplinary powers, including the suspension of a medical practitioner from practice. Right of appeal to the Supreme Court is provided. The Supreme Court, on the motion of the Medical Council, may order the removal of a name from the register in cases where a medical practitioner is guilty of grave misconduct, or is convicted of an indictable offence punishable by imprisonment with hard labour for a term of two years or upwards. The number of medical practitioners on the register at 31st March, 1939, was 1,559. During 1938, the names of 23 practitioners were removed and 125 added, 106 of the latter having New Zealand qualifications.

REGISTRATION OF DENTISTS.

The Dentists Act, 1936, provides for the constitution of a Dental Council consisting of:—

  1. The Director-General of Health.

  2. Two dentists appointed on recommendation of the Minister of Health.

  3. One dentist, being a member of the Faculty of Dentistry in the University of Otago, appointed on the recommendation of the Minister.

  4. One dentist appointed upon election by postal vote of those dentists whose registered addresses are in the North Island.

  5. One dentist appointed upon election by postal vote of those dentists whose registered addresses are in the South Island.

  6. One medical practitioner, being a member of the Faculty of Medicine in the University of Otago, appointed on the recommendation of the Minister.

  7. One medical practitioner nominated in that behalf by the New Zealand Branch of the British Medical Association and appointed on the recommendation of the Minister.

Every adult person is entitled to be registered as a dentist who satisfies the Dental Council that he is the holder of a qualification in dentistry obtained from the University of New Zealand; or that he is the holder of a qualification approved by the Dental Council and obtained from a university or other institution in the United Kingdom or in some other part of His Majesty's dominions (in the latter case, however, the Council may require a further examination); or the holder of an approved foreign qualification, but the Council may refuse to approve any foreign qualification if New Zealand graduates in dentistry are not accepted for registration without further examination in the country concerned, or the Council may require the applicant to pass a further examination.

Application for registration should be made to the Secretary, Dental Council of New Zealand, Department of Health, Wellington. The fee for initial registration is £2. If a provisional practising certificate is required there is a further fee of 5s. A fee of £1 per annum is payable for an annual practising certificate the applicant desires to practise.

The number on the register at 31st May, 1939, was 798.

REGISTRATION OF NURSES, MIDWIVES, AND MATERNITY NURSES.

The Nurses and Midwives Registration Act, 1925, as amended in 1930, provides for a Nurses and Midwives Registration Board, consisting of the Director-General of Health or his deputy; the Director of the Division of Nursing (who is Registrar of the Board); a registered medical practitioner; a registered nurse and a registered midwife, and one other person recommended by the New Zealand Trained Nurses' Association or a similar body; and one person nominated by the Hospital Boards' Association.

Every person who has attained the age of twenty-two years and is certified as having undergone training for not less than three years and three months in a general hospital approved by the Board as a training-school under the Act, and who has passed the prescribed hospital and State examination, is entitled to registration. The number of nurses on the register at 31st March, 1939, was 4,520, of whom 1,419 were shown on the non-active list (mostly married, retired, or permanently overseas).

The Act also provides for the registration of midwives and maternity nurses.

The requirements for training are as follows:—

Maternity Nurses.—In the case of a person who is a registered nurse the period of training is six months, and in the case of any other person is a period of eighteen months. At the end of this time the candidate is eligible to sit for the State Maternity Examination.

Midwives.—No person may be accepted for training as a midwife until such person has been registered as a maternity nurse; the duration of the course of training will be then a period of six months, at the end of which the candidate is eligible to sit for the State Midwifery Examination.

The number of registered midwives on the 31st March, 1939, was 1,736, and the number of registered maternity nurses 1,479. Of these totals, 519 midwives and 355 maternity nurses were non-active.

REGISTRATION OF OPTICIANS.

The Opticians Act, 1928, provides for the constitution of an Opticians Board, consisting of the Director-General of Health (the Registrar), two persons engaged in practice as opticians in New Zealand, and a registered medical practitioner with special knowledge of diseases of the eyes.

The Board deals with all applications for registration under the Act. On payment of the prescribed fee (£5), every person is entitled to registration as an optician who satisfies the Board that—

  1. He has received satisfactory training qualifying him to practise as an optician, and is the holder of a certificate of qualification recognized by the Board, or

  2. He has passed an examination under the Act, both theoretical and practical, after a course of not less than three years' training in New Zealand as prescribed by regulations.

Under the Finance Act, 1932-33 (No. 2), an annual practising certificate (fee 10s.) is required.

Regulations pursuant to the Opticians Act, 1928, have been prepared, prescribing the conditions and period of training and the syllabus for the examination conducted by the Opticians Board.

The number of opticians on the register at 31st March, 1939, was 284.

REGISTRATION OF MASSEURS.

Under the Masseurs Registration Act, 1920, and the Masseurs Registration Amendment Act, 1924, there is constituted the Masseurs Registration Board of New Zealand, consisting of the Director-General of Health, a registered medical practitioner, and two persons engaged in the practice of massage in New Zealand.

The Board deals with all applications for registration (fee £3) under the Act. It is necessary for applicants to be in possession of approved certificates for the three branches of massage: (1) Massage; (2) medical electricity; (3) remedial exercises and other branches of physiotherapy.

Under the Finance Act, 1932-33 (No. 2), an annual practising certificate (fee 10s.) is required.

The number of masseurs on the register at 31st March, 1939, was 593.

REGISTRATION OF PLUMBERS.

The Plumbers Board of New Zealand, constituted under the Plumbers Registration Act, 1912, consists of five members—viz., the Director-General of Health or his deputy (Chairman); the Director of Education; a city or borough engineer nominated by the Municipal Association of New Zealand; a master plumber and a journeyman plumber elected by their respective associations.

The functions of the Board are to decide what persons may be registered under the Act, and in what districts sanitary plumbing may be performed only by registered plumbers. It also decides the scope of the examinations to be held as a part of the process of securing registration.

The main principles underlying the Act are the securing of trained and certificated sanitary plumbers, and the ensuring that such registered plumbers shall not be required to pay any license fee or pass any examination under any local authorities controlling sanitary-plumbing works.

Under the Finance Act, 1932-33 (No. 2), an annual license fee of 5s. is payable by registered plumbers if doing any sanitary plumbing.

The total of names on the register at 31st March, 1939, was 2,729.

SALE OF FOOD AND DRUGS.

In order to make better provision for the sale of food and drugs in a pure state the Sale of Food and Drugs Act was passed by the Legislature, and came into force on 1st January, 1908. The Act is administered by the Health Department, and provides for the analysis, by public analysts, of any article of food or drink, or of any drug, which may be sold, offered for sale, or exposed for sale, and for the inspection of any place where there is any food or drug intended for sale. If any such article be proved to be unfit for human consumption, or likely to cause injury to health if consumed, heavy penalties may be inflicted on the person or persons responsible. Stringent measures are provided for the prevention of adulteration of food, drink, or drugs, and for the inspection of places where such goods are manufactured or packed. The selling of light-weight bread is an offence under the Act, as is also the taking back of bread after it has been in the possession of the purchaser for more than an hour.

Considerable progress has been made in following out the purposes of the Act, all the commonly used foodstuffs being standardized, and the labelling of packages being controlled by regulations, which are revised and added to as the necessity arises.

An amendment of the Act in 1924 marks a noteworthy advance in legislation of this kind, and has been used to good effect in controlling all kinds of publicity concerning any food or drug whereby a purchaser is likely to be deceived in regard to the properties of such food or drug, whether it is dealt with by a regulation or not.

The definition of “drug” includes medicines used externally or internally by man, anæsthetics, soaps, ointments, disinfectants, and tobacco.

Any person may, on payment of the prescribed fee, together with the cost of the sample, require any authorized officer to purchase a sample of any food or drug and to submit it for analysis.

Statistics compiled by the Department of Health show that during the year 1938 11,805 samples of milk were examined, resulting in 392 warnings and 181 prosecutions. The figures for the previous year were 9,361, 222, and 111 respectively. Other foodstuffs sampled—1937 figures in parentheses—numbered 1,178 (891), warnings being 41 (46), and prosecutions 20 (3).

The administration of the Weights and Measures Act is among the functions of the Department of Labour; the correct weighing of bread, butter, and other foodstuffs coming within the scope of this Act.

QUACKERY PREVENTION.

Section 2 of the Quackery Prevention Act, 1908, enacts that every person commits an offence who publishes or causes to be published any statement which is intended by the defendant or any other person to promote the sale of any article as a medicine, preparation, or appliance for the prevention, alleviation, or cure of any human ailment or physical defect, and which is false in any material particular relating to the ingredients, composition, structure, nature, or operation of that article, or to the effects which have followed or may follow the use thereof.

The penalty inflicted is a fine not exceeding £100 in the case of a first conviction, and not exceeding £200 for every subsequent conviction. The object of the Act is to prevent the exploitation of the public by means of medicines or treatment alleged to cure all and sundry complaints and ailments.

DANGEROUS DRUGS AND POISONS.

In order to carry out New Zealand's obligations under the Geneva Convention (League of Nations), the Dangerous Drugs Act, 1927, was enacted. the dealing in and use of prepared opium is prohibited, and the production, manufacture, sale, and distribution of other dangerous drugs are subject to a license granted by the Director-General of Health or some other lawful authority. Provisions are made to prevent illicit traffic in drugs of a habit-forming nature. Suitable regulations are now in force to give effect to the provisions of the Act, and follow lines similar to the regulations in England and Australia.

The Poisons Act, 1934, is aimed principally at preventing deaths from misadventure arising from two main causes. First, the careless use of industrial and farm poisons through loose packing or handling in bottles commonly used for foodstuffs, beverages, or harmless medicines. Second, the increasing tendency by the public to use certain of the newer drugs having hypnotic or pain-reducing properties, or supposed to be effective for slimming, &c. Regulations providing machinery for carrying out the Act have been passed on the lines of the provisions in force in Great Britain.

PHARMACY.

The Pharmaceutical Society of New Zealand, constituted by the Pharmacy Act, 1908, consists of about 700 members. These are known as “registered chemists,” and no chemist shop may be opened in the Dominion except under the charge of one of these.

The society is governed by the Pharmacy Board, set up by the Act, consisting of ten members elected by members of the society. The main function of the Pharmacy Board is to administer the Pharmacy Act and its amendments in the interests of the public and of the members of the society, also to watch such other legal provisions generally as may have a bearing upon pharmacy.

The society has reciprocal agreements with the societies of Great Britain and all the Australian States: that is to say, a member registered after passing the full examination of a reciprocating country can be registered in any other on payment of the fees, and on complying with prescribed formalities.

The Pharmacy Board holds examinations annually for those who wish to obtain the necessary qualifications entitling them to registration. Candidates must also serve four years' apprenticeship. The first official College of Pharmacy was opened in Wellington in 1933, where tuition is available for students; while students may also study at any University College or Technical College.

The Society has a Benevolent Fund, which is used for the relief of members who may be in needy circumstances, or of their relatives who may be unprovided for.

In addition to the statutory organization set up by the Pharmacy Act, members of the Pharmaceutical Society have another organization known as the Chemists' Defence Association, Limited, which provides an indemnity guarantee for its members, deals with matters of general interest not covered by the Act. and governs ethical questions as between pharmacists and medical men and the public generally. There is also a Chemists' Service Guild governing purely business matters.

Pharmacy is now subject to the provisions of the Industrial Efficiency Act, 1936, every open shop being under license: no company or individual may open a pharmacy or change his premises, without consent from the licensing authority.

At the present time (August, 1939) there is a Bill before Parliament which has for its objects the making of better provision for the registration and control of pharmaceutical chemists, and the registration or licensing of wholesale druggists and manufacturing chemists.

CEMETERIES.

By the Cemeteries Amendment Act of 1926 the administration of cemeteries was placed under the control of the Minister of Health. The Department of Health, with its Inspectors always in the field, is able to give the various matters closer attention than had been possible previously. Steps are being taken to ensure proper methods of plotting and keeping records, the importance of which has not been sufficiently recognized in the more sparsely populated areas, but the necessity for which will become more apparent as time goes on.

Regulations are in force to facilitate the procedure in cremations, providing also for special methods as carried out according to the rites of any religious denomination elsewhere than in a crematorium. Due precautions are provided for in all cases to ensure against any untoward development in connection with the cremation of any body.

MEDICAL INSPECTION OF SCHOOLS.

School medical work in New Zealand is carried out by the Division of School Hygiene, which is responsible for the supervision of all measures for safeguarding the health of school-children and for ensuring a satisfactory environment at school.

The School Medical Service in New Zealand was placed on a definite basis in 1912, when three full-time School Medical Officers were appointed. Prior to that date regular examinations were restricted to some of the larger secondary and private schools. There is now a permanent staff consisting of a Director and sixteen School Medical Officers. In addition, four Medical Officers of Health act as part-time School Medical Officers. The nursing-work of the Division of School Hygiene was in the past carried out by school nurses, who did this work exclusively. In 1938, districts were made smaller, and the school work was undertaken by district nurses, of whom there are ninety-eight at the present time.

The Health Act, 1920, section 139, gives the necessary authority for the medical examination of children attending the primary schools, but the duties and powers of the School Medical Officers are defined in the Education Act, 1914, section 134.

The School Medical Service aims at securing for each child three complete physical examinations during his primary-school life, but special examinations are carried out when parents, teachers, or the School Medical Officers consider them necessary. In nearly all centres throughout the Dominion regular medical examinations of kindergarten schools are conducted. The examination of Native schools since the establishment of the East Cape and North Auckland Health Districts has been greatly extended. Secondary schools are inspected as staff and time permit, and an increased number of these pupils were examined last year. An effort is made to keep under supervision children who are tuberculosis contacts. It is recognized that medical treatment must be available for every child in need of it.

If defects are found, the practice of the School Medical Officer is to notify the parents of their existence, the choice of medical attendant being left entirely to the parents. If the parents are unable for financial reasons, or are too apathetic, to obtain the necessary advice and treatment, it is the duty of the School Medical Service to see that it is carried out. This is done through the medium of the district nurse, who acts as a link between the school and the home, the treatment being given at the nearest hospital. The work of the service, however, is essentially educational and preventive.

As preventive measures in dealing with malnutrition in school-children, special attention has been given to the extension of two activities—firstly, the supply of a milk ration to children at school; and, secondly, health camps. Both of these measures are being developed throughout the Dominion. Impetus has been given to the health-camp movement by the formation of the National Federation of Health Camps in 1936 and the success of the appeal by which some £89,000 was raised by public subscription for the erection of permanent health camps in New Zealand in memory of his late Majesty King George V. This subscription carries a pound-for-pound subsidy from the Government, so that approximately £178,000 will ultimately be available for this cause.

A considerable amount of work is done in co-operation with the Education Department and also with the Mental Hospitals Department in regard to children suspected of mental backwardness or defect, in order to determine whether special provision for their welfare, either educational or institutional, is indicated. A great amount of work has been done with the object of ascertaining the incidence and distribution of goitre throughout the Dominion, and this problem continues to receive attention.

The School Medical Officers work in association with the Medical Officers of Health in regard to the control of infectious disease. Preventive treatment for diphtheria by means of inoculation with toxin anti-toxin, and more recently with anatoxin, has been carried out to a considerable extent.

The School Medical Service also works in close co-operation with the Child Welfare Branch of the Education Department, under the supervision of which are all measures for the protection of destitute and neglected children, also the regulations governing juvenile employment. It also co-operates with the officers of the Education Department in the supervision of school-buildings and sanitation.

DENTAL TREATMENT OF SCHOOL-CHILDREN.

The New Zealand School Dental Service, instituted in 1921, is conducted by the Dental Division of the Department of Health. By the end of 1938 school dental clinics had been established at 279 centres in the Dominion. Each clinic deals with the children of certain schools in its vicinity, and these are organized into a “dental group,” the local administration of which is in the hands of a dental clinic committee composed of local residents. Besides undertaking various duties in connection with local administration, these committees have to undertake the important task of raising funds to meet a certain proportion of the cost of operating the clinics. Treatment of the children in the clinics is carried out by school dental nurses specially trained for the work by the Department.

At the end of December, 1938, there were 210 trained dental nurses in the service, and in addition there were 138 student dental nurses in training. Some 95,000 children, belonging to 1,620 schools, are under systematic treatment at the various clinics. These children are kept under constant observation, and are being maintained dentally fit from the time they enter school until they pass out of the Fourth Standard. For this purpose they are re-examined at frequent and regular intervals (approximately twice a year), and necessary treatment is carried out.

Particular attention is given to instructing the children in the principles of dental hygiene, and the Department aims at securing the co-operation of both the children and their parents in an endeavour to reduce the prevalence of dental disease.

The following is a summary of the treatment performed in the service during the year 1938: Fillings, 570,199; extractions, 67,932; other operations, 187,427.

SUBSECTION B.—HOSPITALS AND CHARITABLE INSTITUTIONS.

INTRODUCTORY.

Prior to the abolition of the provinces in 1876 hospital maintenance was left to the care of the several Provincial Councils, each of which had a system of its own. On the change-over to the county form of government in the following year all of these diverse systems came under the charge of the Central Government, and many difficulties and incongruities occurred. Gradually there grew up a system of excessive demands upon the Government, and in 1885 an attempt to reduce a somewhat chaotic state of affairs to some semblance of order and uniformity took shape in the Hospitals Act of that year, which provided for the constitution of special hospital districts and Boards. Several amendments, based on the result of experience, were passed in later years, and the present law relating to the subject is embodied in the Hospitals and Charitable Institutions Act, 1926, as amended in 1928, 1929, 1932, and 1936.

HOSPITAL BOARDS.

The management of affairs in each hospital district is entrusted to a Hospital Board, consisting of not more than twenty and not less than eight members representing the contributory local authority districts comprising the hospital area. Members are elected at the ordinary general election of the contributory authorities.

Subject to the consent of the Minister of Health, a Hospital Board has power to establish, control, and manage any of the following institutions: Hospitals, charitable institutions, maternity homes, convalescent homes, sanatoria, habitual inebriates' homes, reformatory institutions for the reception of women and girls, and any other institutions for any purpose which the Governor-General by Order in Council may declare to be a public charitable purpose. It may grant charitable aid to indigent, sick, or infirm persons; may provide medical, surgical, and nursing attention for persons not inmates of an institution; and may grant financial assistance to medical and nursing associations and private philanthropic institutions approved by the Minister.

It is the duty of every Hospital Board to provide and maintain such hospitals as the Director-General of Health considers necessary in any part of the district for (a) the reception, relief, &c., of any persons suffering from infectious diseases: (b) the reception, &c., of persons suffering from other than infectious diseases.

PROVISION OF FINANCE.

No rating-powers are given to Hospital Boards, but under the Hospitals and Charitable Institutions Act the estimated net expenditure (excluding Government subsidy) of a Board is apportioned by the Board among the contributory local authorities within its district in proportion to the capital value of the rateable property in each contributory district. On levies from local authorities for maintenance purposes a scale of subsidy is in operation ranging from 14s. to 26s. per £1, and averaging throughout the Dominion £1 for £1. The principle of the scale is to give relatively greater assistance where the requirements are high in proportion to the rateable capital value of the hospital district.

Levies on contributory local authorities and Government subsidy each form about one-third of the total maintenance receipts of Hospital Boards, the remainder being chiefly patients' fees and other recoveries on account of relief.

The above remarks apply to levies for maintenance purposes. As regards capital works, the net requirements are met by levy and by subsidy in equal amounts; in other words, the subsidy is at the rate of £1 for £1. Where the expenditure is very heavy, Boards may have recourse to borrowing.

A Government subsidy was formerly payable on voluntary contributions and bequests, but this has been discontinued since March, 1932.

The operation of the Social Security Act, 1938, marks a change in the system of Hospital Board finance in so far as patients' fees are concerned. Under Part III of the Act hospital benefits are payable from the Social Security Fund to Hospital Boards and proprietors of private hospitals in respect of treatment provided to patients. In the former case the benefits are to be regarded as in full settlement of the charge, and in the latter case as in partial settlement of the charge. These benefits came into operation on 1st July, 1939, the prescribed rate being 6s. for every day on which treatment is afforded.

RECEIPTS AND PAYMENTS.

The following is a summary of the receipts and payments of Hospital Boards for the years ended 31st March, 1937 and 1938:—

1936-37.1937-38.
Receipts.££
Voluntary contributions and bequests21,72354,430
Levies716,475821,815
Subsidies748,140826,467
Patients' payments and charitable-aid recoveries509,845594,791
Rent, interest, and dividends26,36832,191
Loans119,017775,039
Sale of capital assets64242,076
Miscellaneous receipts50,13849,089
    Totals2,192,3483,195,898
Payments.  
Hospital maintenance1,265,5871,491,328
Charitable aid292,903257,492
Medical associations or medical men in outlying districts12,87015,070
District nursing13,61916,184
Administration83,09795,592
Amounts paid to other Boards or separate institutions90,81898,351
Rents, rates, and taxes2,7662,411
Interest49,52257,616
Contributions to National Provident Fund for superannuation of employees19,28522,614
Capital works211,521314,355
Loan-repayments or payments to sinking fund50,70859,640
Miscellaneous payments17,84521,242
Amounts invested on account of funds for special purposes17,31344,458
    Totals2,127,8542,496,353

REVENUE AND EXPENDITURE.

Although the figures in the preceding statement relate to receipts and payments, the official returns of Hospital Boards have since 1916-17 been supplied on the basis of an Income and Expenditure Account and Balance-sheet.

REVENUE.

The following, showing the sources of revenue for the last two financial years for which figures are available, relates not only to Hospital Boards, but also to Government institutions and the Mercury Bay Hospital Trustees.

1936-37.1937-38.
Amount.Percentage of Total.Amount.Percentage of Total.
 £ £ 
Contributions by Government819,21040.0909,28638.6
Levies on local authorities714,25134.9821,76534.8
Voluntary contributions31,5891.552,7892.2
Recoveries from those assisted432,63021.1507,53421.5
Rents, interest, and dividends27,1641.332,3741.4
Miscellaneous revenue23,5391.235,2931.5
Cash in bank (other than loan-money)2,048,383
62,247
100.02,359,041
37,080
100.0
    Totals2,110,630..2,396,121..

With the exception of “Recoveries from those assisted,” which is a purely cash figure, the above particulars and those below relating to expenditure are taken from the Income and Expenditure Accounts and Balance-sheets.

To ascertain the total receipts for the year 1937-38 the sum of £801,579 (receipts and cash in hand from loans for capital purposes) should be added, making the aggregate £3,197,700.

The amount contributable by the Government consists of subsidies on maintenance levies, £720,402; subsidies on capital levies, £96,922; cost of maintaining Government institutions, £44,212; patients' fees paid to Boards or remitted in respect of Government institutions, £44,253; and special payments to Boards, £3,497; making a total of £909,286.

EXPENDITURE.

The maintenance expenditure for the last two financial years was made up as follows:—

1936-37.1937-38.
Amount.Percentage of Total.Amount.Percentage of Total.
 £ £ 
Hospital maintenance1,328,45673.01,553,36775.8
Charitable relief—    
  Indoor127,5627.0151,5687.4
  Outdoor160,2448.8103,3295.0
Medical associations10,4640.611,3910.6
District nursing13,7150.816,5270.8
Ambulances9,3150.511,0170.5
Miscellaneous maintenance expenditure9,0570.515,3540.8
Administration92,0615.1105,4935.2
Interest on loans49,4512.759,0452.9
National Provident Fund18,5661.021,1261.0
    Totals1,818,891100.02,048,217100.0

Capital expenditure for the year 1937-38 totalled £406,637, this amount including £64,518 in respect of amortization of loan-money. The total expenditure for the year, excluding amounts paid from one Board or departmental institution to another, was thus £2,454,854.

HOSPITAL MAINTENANCE EXPENDITURE.

The average annual cost of maintenance of general hospitals per occupied bed in the years shown was as follows:—

Year.Provisions.Surgery and Dispensary.Domestic and Establishment.Salaries and Wages.Miscellaneous.Totals, Maintenance.
 ££££££
1910-1122.78.726.738.82.799.6
1914-1525.010.727.043.51.9108.1
1919-2040.415.443.252.40.3151.7
1924-2540.914.950.477.08.4191.6
1930-3140.718.052.691.41.8204.5
1933-3429.416.540.679.42.6168.5
1934-3529.816.641.180.23.5171.2
1935-3631.717.844.585.43.9183.3
1936-3734.118.748.497.04.1202.3
1937-3837.419.752.7110.84.2224.8

CHARITABLE-AID EXPENDITURE.

Charitable-aid expenditure during the last ten years has been as follows:—

Year.Indoor Relief.Outdoor Relief.Totals.
 £££
1928-29110,874134,864245,738
1929-30114,532140,065254,597
1930-31119,774192,073311,847
1931-3299,688269,632369,320
1932-3398,788195,883294,671
1933-34103,316172,692276,008
1934-35105,741176,894282,635
1935-36112,973187,267300,240
1936-37127,562160,244287,806
1937-38151,568103,329254,897

The sharp rise in outdoor relief which took place during 1930-31 and the succeeding year is attributable mainly to the provision of relief necessitated by unemployment. As from 1932-33 Hospital Boards were relieved of responsibility for the bulk of unemployment relief.

COST TO GOVERNMENT AND LOCAL AUTHORITIES.

The following shows, for triennial periods, the average annual net maintenance requirements of Hospital Boards—i.e., the average estimated deficit which is provided for by levies on the local authorities and Government subsidy thereon:—

Triennium.Average Annual Amount. £
1925-28979,333
1926-291,074,138
1927-301,156,254
1928-311,193,380
1929-321,156,699
1930-331,116,503
1931-341,075,146
1932-351,086,479
1933-361,100,228
1934-371,173,581
1935-381,306,206
1936-391,495,335

The following shows the total cost to the public funds of hospitals and charitable aid for the past decade, as represented by levies and subsidies for both capital and maintenance purposes; including also subsidies on voluntary contributions (while in force) and expenditure out of the Health Department's own vote:—

Year.Levies made.Subsidies payable.Expenditure out of Department's Vote.Totals.Amount per Head of Population.
 ££££s.d.
1928-29675,238698,105158,0401,531,38321 0
1929-30688,279718,025177,4651,583,76921 5
1930-31695,264707,581188,6701,591,51521 3
1931-32564,135559,077152,7241,275,93616 10
1932-33578,901604,043128,5241,311,46817 5
1933-34586,318584,479142,8521,313,64917 0
1934-35601,715593,998118,1321,313,84516 11
1935-36621,271621,308127,1061,369,68517 6
1936-37714,251745,049145,2371,604,53720 5
1937-38821,765817,324264,1001,903,18924 1

PATIENTS' PAYMENTS.

The amount of patients' fees received per occupied bed in Hospital Boards' hospitals in 1913-14 was £23.4; in 1937-38, exclusive of fees received from other Boards, it was £55.5. Receipts during the last five years have been as follows:—

 Totals.Amount per Occupied Bed.
 ££
1933-34276,31051.5
1934-35257,10245.9
1935-36272,44946.7
1936-37304,71850.1
1937-38351,96755.5

Included in these fees are amounts paid by the Government, which in 1937-38 amounted to £44,253.

LOANS.

During the year 1937-38 fourteen new loans aggregating £748,455 were authorized for terms ranging from ten to thirty years.

The amount of loans outstanding at the 31st March, 1938, was £1,855,515. This amount, however, is reduced by a sum of £88,398 standing to the credit of sinking funds, making the net amount of loan-money £1,767,117.

EMPLOYEES.

Statistics of persons employed by Hospital Boards will be found in the section of this Year-Book relating to “Employment and Unemployment.”

PUBLIC HOSPITALS.

Subsection D of the preceding section contains statistics of inpatients treated at public hospitals other than maternity hospitals. In the following table the figures are inclusive of maternity hospitals, sanatoria, &c., and relate to the financial year instead of to the calendar year:—

Year.Inpatients treated.Average Number of Occupied Beds.Beds available.
Total Number.Proportion per 1,000 of Population.Number.Proportion per 1,000 of Population.Number.Proportion per 1,000 of Population.
1910-1125,19124.12,0251.93,2223.1
1928-2987,88860.26,1344.28,4575.8
1929-3089,76160.76,0574.18,5775.8
1930-3189,14759.55,9123.98,8035.9
1931-3285,56256.45,5643.78,6465.7
1932-3385,64656.05,3953.58,4165.5
1933-3491,06259.05,6773.78,6985.6
1934-3596,27661.95,8733.88,7465.6
1935-36100,59263.96,1013.98,8425.6
1936-37104,14166.06,3784.08,8765.6
1937-38107,05667.26,6404.29,0855.7

The number of institutions coming under the heading of public hospitals at 31st March, 1938, was 129, comprising 70 general hospitals (2 of which were also old people's homes, and 2 [special hospitals), 1 chronic hospital, 2 convalescent hospitals, 42 maternity hospitals, 5 tuberculosis sanatoria, 1 tuberculosis prevention institution, 2 chronic-tubercular hospitals, 2 tuberculosis dispensaries, and 4 infectious-diseases hospitals. A comparison of beds and patients for the last five years is as follows:—

 1933-34.1934-35.1935-36.1936-37.1937-38.
*In addition, dental cases treated during the year and attendances were: Auckland, 2,607, 11,491; Wellington, 11,815, 30,700; Christchurch, 5,276, 19,532; and Timaru, 1,056, 4,069.
Number of institutions131129130130129
Number of beds—     
General4,7694,8514,9584,9855,143
Children's cots1,0411,0511,0941,1101,165
Maternity604597603606609
Tuberculosis1,0941,0981,0891,0831,001
Infectious disease1,1901,1491,0981,0921,064
Totals8,6988,7468,8428,8768,982
Average number of occupied beds per diem5,6775,8736,1016,3786,546
Inpatients treated during year91,06296,276100,592104,141107,056
Deaths during year4,0684,3994,5674,9355,384
Outpatients—     
Number81,599109,382115,512119,822138,692*
Attendances386,796495,232492,671526,775547,902*

PRIVATE HOSPITALS.

The Private Hospitals Act, which came into force on 1st January, 1907, is now embodied in the Hospitals and Charitable Institutions Act, 1926, Part III of which provides for the licensing, management, and inspection of private hospitals. All such institutions must be licensed, and every application for a license must be accompanied by a full description and plan of the house it is proposed to use, together with a statement showing the number and class of cases it is proposed to receive. The license shall state whether it is in respect of a lying-in private hospital or a surgical and medical private hospital, or if for both classes of cases; and no private hospital may be used for any purpose other than that in respect of which the license is granted and purposes reasonably incidental thereto.

For every private hospital there must be a resident manager, either the licensee or some person appointed by the licensee, and in every case the manager must be a legally qualified medical practitioner or a registered nurse in the case of a surgical and medical hospital, or a registered midwife in the case of a lying-in hospital, or a registered nurse and midwife, or a registered nurse having as resident assistant a registered midwife, in the case of a hospital licensed for both purposes. No license may be granted in respect of a house not previously licensed until such house and annexed buildings have been approved by the Director-General of Health, and no addition may be made to any private hospital until it has been so approved. No license may be granted unless the character and fitness of the applicant have been proved satisfactory. The license must be renewed on 1st January of each year.

In every private hospital there must be kept a register of patients showing particulars as to name, age, abode, and date of reception of each patient, date when such patient left, or, in the event of death, the date thereof, name of medical practitioner attending, and such other details as may be prescribed. Inquiry may be made at any time as to the management, conduct, and equipment of any private hospital, and if such inquiry discloses an unsatisfactory state of affairs the license may be revoked. Provision is made for the inspection of private hospitals in the same manner as for public institutions.

The total number of private hospitals licensed in the Dominion is 279, of which 82 are medical and surgical hospitals, 32 medical, surgical, and maternity institutions, 147 maternity hospitals, and 18 medical and convalescent hospitals. These hospitals provide 1,530 beds for medical and surgical cases, 927 beds for maternity cases, and 135 medical and convalescent beds.

MATERNITY SERVICES.

BENEFITS UNDER THE SOCIAL SECURITY ACT, 1938.

The above-mentioned Act, inter alia, makes provision for payments from the Social Security Fund to hospitals, medical practitioners, and nurses for services in connection with maternity cases. The medical practitioner service did not come into full operation until 1st October, 1939, but the remaining benefits came into force on 15th May, 1939, and the main provisions are as follows:—

  1. State Maternity (St. Helens) Hospitals.—No charge is made for any services in the St. Helens Hospitals.

  2. Public Maternity Hospitals or Maternity Wards under Control of Hospital Boards.—Payment to Hospital Board as under:—

    1. Two pounds five shillings in respect of the day or days of labour.

    2. Twelve shillings and sixpence in respect of each of the fourteen days succeeding the birth of the child.

    3. A fee of £2 where any patient is actually attended during labour and at delivery by a medical officer employed by the Board.

    These amounts are to be regarded as in full settlement of all claims in respect of the maternity services afforded by the Board.

  3. Licensed (Private) Maternity Hospitals.—Licensees of licensed maternity hospitals who have entered into contracts under the Act are entitled to receive fees from the Social Security Fund at the same rates as stated in (a) and (b) in regard to Hospital Boards. These amounts are not necessarily to be regarded as in full satisfaction of the licensee's claims in respect of the maternity benefits afforded by the hospital, any charges over and above being payable by the patient.

  4. Midwives and Maternity Nurses.—Approved midwives and maternity nurses who are in attendance in cases where confinement takes place other than in a maternity hospital are entitled to receive from the Fund fees at the rate of £1 for the day or days of labour (£2 in the case of midwives) and 13s. per day for each of the fourteen days succeeding the birth of the child. These amounts are to be regarded as in full satisfaction of a nurse's claims in respect of the nursing services.

STATE MATERNITY HOSPITALS.

There were formerly seven State maternity (St. Helens) hospitals, but in 1933 two—Wanganui and Gisborne—were handed over to the control of the Wanganui and Cook Hospital Boards respectively; and at the end of 1937 the St. Helens Hospital, Dunedin, was closed. Prior to the advent of the maternity benefits under the Social Security Act, the use of these hospitals was confined to cases where the husband's income did not exceed £5 per week, and in cases of large families £6 per week. There are now no restrictions in this respect.

This service is given under the supervision of the Medical Superintendent, who is also responsible for the conduct of all abnormal cases and for the supervision of the ante-natal and post-natal care of all patients attending. There is also an outpatient department attached to each hospital, which provides nursing services for patients not entering the institution.

The statistics given below for the year 1938 cover only the four State maternity (St. Helens) hospitals.

Hospital, and Year of Opening.Number of Beds.Confinements in Institution.Confinements attended Outside.
Total Live-births.Total Still-births.Deaths of Mothers.Deaths of Infants in Hospital.
Auckland (1906)3265715 753
Wellington (1905)26556103815
Christchurch (1907)1536314653 
Invercargill (1918)162905 41
Totals891,86644525122

During the ten years ended December, 1938, total live-births in State maternity (St. Helens) hospitals numbered 20,828; still-births, 640; deaths of mothers, 50; deaths of infants in hospital, 291; and confinements attended outside, 2,805.

PUBLIC MATERNITY HOSPITALS.

There were at 31st March, 1938, sixty-nine public maternity hospitals or maternity wards attached to public hospitals under control of Hospital Boards or Hospital Trustees. These maternity hospitals and wards had 541 beds available. They are open to any district residents irrespective of income. The charges, prior to the advent of maternity benefits under the Social Security Act, varied from £1 5s. to £5 5s. per week for those who were able to pay. At most of these institutions patients may be attended by the midwives in charge of the institution, under the supervision of the medical superintendent of the hospital, or in some instances may engage their own medical attendants.

For the reception of single girls there are special charitable institutions at Auckland, Wellington, and Christchurch, in addition to those established by the Salvation Army at the four chief centres and at Napier and Gisborne.

DISTRICT MIDWIVES AND MATERNITY NURSES.

Fifteen Hospital Boards have thirty-nine midwives doing district work, in most cases in conjunction with other health work. In addition, there are forty-nine district nurses appointed for the purpose of attending the Maori population, part of whose work is the attendance on Maori women during confinement.

ANTE-NATAL SERVICES.

Forty-eight free public ante-natal clinics have been established in various parts of New Zealand in connection with State or public maternity hospitals or maternal welfare societies, such as the Plunket Society. These clinics are conducted by registered midwives and registered nurses who have been specially trained for this purpose, and they work in conjunction with the medical attendants or midwives engaged to attend the patients during labour. The training of midwives in New Zealand includes training in ante-natal work. The total attendances at the various free clinics in New Zealand during 1938 were 42,029. Several thousand copies of the pamphlet “Suggestions to Expectant Mothers” have been distributed free, mainly through these clinics. This pamphlet gives simple instructions for the maintenance of health during pregnancy and information regarding the necessary preparation for confinements to be conducted in private houses.

Every effort is being made to impress the public with the importance of parental hygiene and systematic ante-natal care throughout pregnancy. Addresses and lectures are delivered by Medical Officers of the Department of Health to nurses and societies interested in this subject. So that there will be definite co-operation between the midwife and the ante-natal clinic, and in order that the midwife may be informed of the clinical methods adopted by the Health Department, refresher courses of lectures, given particularly on ante-natal work, are available to all registered midwives and maternity nurses.

BENEVOLENT AND ORPHAN ASYLUMS.

One hundred and twenty-four institutions classed under the heading of benevolent and orphan asylums furnished returns to the Census and Statistics Department for the year 1938. These institutions, which are conducted by Hospital Boards, religious bodies, and other public or semi-public organizations, are alike in that they provide accommodation on a benevolent or charitable basis, but differ largely in the classes of persons to whom they afford assistance. The generic name covers old people's homes, maternity and refuge homes for women and girls, orphanages, homes for the infirm or afflicted, “prison gate” homes, and an institute for the blind. Some of the orphanages deal with cases similar to those dealt with by the special schools under the control of the Education Department, and a few of the women's institutions receive offenders committed to them by the Court. The following table relates to the year 1938.

Controlling Authorities.Number of Institutions.Inmates at 1st January.Admissions during Year.Births in Institutions during Year.Discharges during Year.Deaths in Institutions during Year.Inmates at 31st December.Total Inmates during Year.
Hospital Boards251,5712,0282541,8384661,5493,853
Church of England17631262412873644934
Roman Catholic Church161,496834..654971,5792,330
Presbyterian Church17469179..11510523648
Methodist Church418843..60..171231
Baptist Church14622..23..4568
Brethren13010..11..2940
Salvation Army281,0606,7211806,859121,0907,961
Undenominational associations, &c.155788545251,368235661,957
    Totals1246,06910,9531,00011,2156116,19618,022

In many cases there is a variation in the class of inmate provided for by the different controlling bodies. For instance, none of the homes under the supervision of the Roman Catholic Church, the Presbyterian Church, the Methodist Church, the Baptist Church, or the Brethren are maternity homes of any description. The last four churches mentioned control children's homes and orphanages only, while the Church of England provides chiefly for children, although some maternity cases are dealt with. Again, the Hospital Boards concentrate chiefly upon old people's homes, while the Salvation Army deals with all types, and is the only body that conducts extensively the “prison-gate” or industrial type of institution. Factors such as these affect the demands made upon the different institutions for accommodation or relief.

The ages and sexes of all inmates in the institutions at 31st December, 1938, were as follows:—

Age-group.Males.Females.Totals.
Under 5 years263212475
5 and under 10 years512460972
10 and under 15 years6726351,307
15 and under 17 years104197301
17 and under 25 years49218267
25 and under 35 years71137208
35 and under 45 years98135233
45 and under 55 years171109280
55 and under 65 years289161450
65 years and over1,1295481,677
Unspecified32326
Totals3,3612,8356,196

Some remarkable differences in the sex proportions at the various age-groups are apparent in the foregoing table. The first three groups, which relate to infants and young children, naturally show relatively little disparity. The next four groups, covering ages 15 and under 45 years, show a large excess of females. The number of females in this group, of course, is greatly increased by the inclusion of girls and young women entering maternity homes. The figures are also affected by the fact that the majority of boys who have spent most of their lives in orphanages obtain outside employment at these ages. From 45 onwards a distinct male excess is observed.

The overwhelming majority of males dependent upon charitable aid at these later ages is indeed remarkable, although the “prison-gate” and industrial type of home no doubt swells the numbers at this stage.

The next table contains information concerning inmates of orphanages and of a few other institutions which provide for both children and older people. The figures relate to inmates under the age of twenty-one who were remaining in the institutions at 31st December, 1938.

Age, in Completed Years.Legitimate.No Information as to Legitimacy.Illegitimate.Totals.
Father and Mother both Alive.Father Dead, Mother Alive.Father Alive, Mother Dead.Father and Mother both Dead.No Information as to Orphanhood
0312......1723
11928......3564
221161111748
342214....12079
4572111121488
5816375..124154
683142571219151
792134541219176
8103134871229203
91052460103..23225
10116266111..133248
11902261156421219
121063174163436270
13952874226318246
14641984185428222
15431548193..17145
162061620221480
1765144....736
184..361..418
19613......212
20111......25
Not stated......1......1
Totals1,15723269516734293992,713

Contrary to what might generally be expected, the above figures reveal that the largest group is that covering children both of whose parents were shown to have been alive. Cases where both parents were dead were comparatively few.

SUBSECTION C.—MENTAL HOSPITALS.

There are eight public mental hospitals in the Dominion maintained wholly or in part out of the public revenue. There is also one private hospital licensed for the reception of the mentally afflicted.

The patients on the register at the end of 1938 were distributed as shown below. Numbers given throughout this subsection are inclusive of Maoris. Figures for Maoris are also given separately toward the end of the subsection.

Mental Hospital.Males.Females.Totals.
Auckland7216131,334
Kingseat (Papakura)291284575
Tokanui319337656
Porirua8455901,435
Nelson454354808
Hokitika212240452
Christchurch7786071,385
Seacliff and Waitati6634531,116
Ashburn Hall (private mental hospital)132336
Totals4,2963,5017,797

The number of patients remaining at the end of each of the last five years is shown in the following table:—

Year.Patients remaining at 31st December.Proportion per 10,000 of Total Population.
Males.Females.Totals.Males.Females.Totals.
19344,1333,3007,43352.1843.0647.70
19354,2823,4057,68753.7444.0548.97
19364,3573,5037,86054.1744.8949.60
19374,3523,5457,89753.5244.9549.30
19384,2963,5017,79752.2843.9448.18
Average of five years4,2843,4517,73553.1344.2548.77

The total number of patients under oversight, care, or control during 1938 was 9,095 (males 4,931, females 4,164), as against 9,229 in 1937. The average number resident in mental hospitals was 7,416 in 1938 and 7,384 in 1937.

ADMISSIONS.

The total admissions to mental hospitals during the year 1938 were 1,102 (527 males and 575 females), this number not including 96 transfers from one institution to another. The causes of insanity as assigned on admission are as follows:—

CAUSES OR INSANITY.

Heredity38
Congenital173
Previous attack152
Puberty and adolescence50
Climacteric7
Puerperal state21
Senility153
Involution51
Mental stress, prolonged159
Toxic8
Syphilis22
Constitutional118
Alcohol49
Encephalitis5
Epilepsy24
Organic brain-disease16
Arterio-sclerosis47
Traumatic3
Ill health6
Totals, excluding transfers (96)1,102

Of the 1,102 persons admitted to mental hospitals during 1938, those admitted for the first time to any mental hospital in New Zealand numbered 933 (males 445, females 488), and those readmitted 169 (males 82, females 87).

The figures for 1938 represent one first admission for every 1,722 persons in the mean population of the Dominion. The number of first admissions and the rate per 10,000 of mean population for each of the last five years were as follows:—

Year.Number of First Admissions.Proportion per 10,000 of Mean Population.
Males.Females.Totals.Males.Females.Totals.
1,9344054238285.145.545.34
1,9355014109116.315.335.83
1,9364834659486.045.996.01
1,9374644659295.745.945.84
1,9384454889335.466.175.81
    Average of five years4594509095.725.805.76

VOLUNTARY INMATES.

Persons labouring under mental defect, but capable of understanding the meaning of the procedure, may seek admission to a mental hospital as voluntary boarders. At the beginning of 1938 there were 337 such patients on the books (178 males, 159 females), and during the year 329 (171 males, 158 females) were admitted. If a voluntary boarder should after admission show mental defect sufficiently pronounced and sustained to render it improper to classify him any longer as such, application for a reception order is made to a Magistrate. During the year 1938, 26 (11 males, 15 females) were transferred from the voluntary to the ordinary register, and 11 males and 8 females died, while 269 (144 males, 125 females) were discharged, leaving 352 on the records at the end of the year (183 males, 169 females).

AGES OF INMATES.

A summary is given showing the ages of patients in mental hospitals at the end of 1938.

Age, in Years.Males.Females.Totals.
1 and under 5121022
5 and under 106248110
10 and under 1513965204
15 and under 20238160398
20 and under 306434141,057
30 and under 407045211,225
40 and under 507176831,400
50 and under 608627881,650
60 and under 705755051,080
70 and under 80261235496
80 and under 90473784
90 and over516
Unknown313465
    Totals4,2963,5017,797

DISCHARGES AND DEATHS.

The next table gives the average number resident, those who were discharged as recovered, and those who died, during the period 1934-38.

Year.Average Number Resident.Discharged as recovered.Died.
Number.Per Cent. of Number admitted.Number.Per Cent. of Average Number Resident.
1,9346,93826026.454366.28
1,9357,11425323.674356.11
1,9367,28827024.344656.38
1,9377,38435931.944976.73
1,9387,41638034.485477.38
  Average of five years7,22830428.224766.58

The table following shows the length of residence in mental hospitals of patients who died and of patients who were discharged as recovered during the year 1938. Of those discharged as recovered, 56.32 per cent. had been inmates for less than one year.

Length of Residence.Patients who died.Patients discharged as recovered.
Males.Females.Totals.Males.Females.Totals.
Under 1 month242044325
1 month and under 3 months342559222446
3 months and under 6 months162339253459
6 months and under 9 months131629223153
9 months and under 12 months101020203151
1 year and under 2 years172643385492
2 years and under 3 years141226131326
3 years and under 5 years262248131427
5 years and under 7 years1114256410
7 years and under 1 years0282048538
10 years and under 12 years87152..2
12 years and under 15 years101323......
15 years and over53581111..1
Died during absence9817......
    Totals273274547170210380

Old age and diseases of the circulatory system are the principal causes of death among mental hospital patients. The figures for the principal causes and groups of causes for the year 1938 are as follows:—

DEATHS OF MENTAL HOSPITAL PATIENTS.

Tuberculosis30
Cancer16
Other general diseases18
General paralysis of the insane15
Epilepsy30
Other diseases of the nervous system83
Diseases of the circulatory system135
Diseases of the respiratory system67
Diseases of the digestive system14
Diseases of the genito-urinary system13
Old age103
External causes6
Died while on leave17
Total547

A table is added showing for all admissions since 1876 the percentages of patients who were discharged (as recovered and relieved, separately), who died undischarged, or who still remained at the end of 1938.

Males.Females.Totals.
* Includes a small number of patients discharged whose condition was not improved.
Discharged—Per Cent.Per Cent.Per Cent.
Recovered34.4139.5336.63
Relieved*10.3212.0611.07
Died37.8129.8334.35
Remaining at end of 193817.4618.5817.95
Total admissions 1876-1938100.00100.00100.00

PRIVATE MENTAL HOSPITAL.

A license may be granted to enable a private mental hospital to receive patients for treatment. Stringent conditions are attached to the issue of such licenses, which may be revoked at any time. The Director-General of Mental Hospitals has wide powers in the regulation and control of private institutions, which are placed practically on the same footing as public mental hospitals in regard to inspection and other matters.

There is only one licensed private institution in the Dominion, that at Wakari (Ashburn Hall), near Dunedin, established in 1882. Particulars of admissions, discharges, deaths, and patients remaining, for the last five years, are as follows. These figures are included in preceding tables.

Year.Admissions.Discharges.Deaths.Patients remaining at End of Year.
1,934137339
1,935109436
1,936114241
1,93785539
1,93878236

MAORIS IN MENTAL HOSPITALS.

The number of Maoris admitted as patients to mental hospitals is small. The figures for the last five years were—

Year.Admitted during Year.Remaining at End of Year.
Males.Females.Totals.Males.Females.Totals.
1,9341714316854122
1,935126187543118
1,9361816348259141
1,9371616327869147
1,9381514298162143

The above figures are also included in the tables covering all inmates of mental hospitals.

EXPENDITURE, ETC.

The total expenditure on maintenance of public mental hospitals (not including the cost of new buildings and additions), and receipts from patients and for sale of produce, &c., during the last five years were as follows:—

Year.Total Expenditure.Receipts from Patients, Sale of Produce, &c.Net Expenditure.
Total.Per Head of Mean Population
 £££s. d.
1934-35424,119171,677252,4423 3
1935-36462,318182,735279,5833 7
1936-37524,310189,847334,4634 3
1937-38608,327213,873394,4544 10
1938-39641,053223,570417,4835 2¼

As from 1st April, 1939, free maintenance and treatment have been provided in all public mental hospitals in accordance with the provisions of the Social Security Act, 1938. The consequent loss of revenue to the Mental Hospitals Department, through the operation of the Act, is to be recovered from the Social Security Fund, the estimated amount for the year 1939-40 being £166,000.

Chapter 7. SECTION VII.—EDUCATION.

HISTORICAL BACKGROUND.

The education system of New Zealand can be understood only when it is seen against its historical background. The first settlements in the new colony were relatively isolated units which had each to make its own provision for the education of its children. In some places the provision of schools was left to the churches, in some to private enterprise, and in others to public associations. When the provinces were established in 1852, the Provincial Councils took over education as one of their functions, but this brought no degree of uniformity to New Zealand schools, for each province tended to foster the type of school organization already established in its area. The provinces varied considerably in the efficiency of their school systems; but, in spite of some success in the face of difficulties in certain areas, at the end of the provincial period in 1876 not more than half the children between the ages of five and fifteen were attending school at all.

The present national system of free, secular, and compulsory* education is based on the Education Act of 1877. This Act followed upon the abolition of the provinces, but the provinces, though dead as political units, left their mark upon the school system. A fierce struggle between the protagonists of central and of local control ended in a victory for the provincialists, and the public schools were placed under the control of District Education Boards, which were for the most part the same bodies as the old Provincial Education Boards. The Colonial Government, however, had to provide all the finance in the form of capitation grants, and a small Department of Education was set up in Wellington, very largely for the purpose of distributing the grants. For every school. district constituted under the Act there was a School Committee, elected by householders, which, subject to the control of the Board, had “the management of educational matters within the school district.” The School Committees elected the members of the Education Board.

As far as mere structure is concerned, this still remains the pattern of the system of school administration in New Zealand, but there have been, in the intervening sixty-odd years, great changes in the relative functions of the three authorities. The general tendency has been for final power and responsibility to shift from the Committes to the Boards and from the Boards to the Department. The Committees, in fact, through lack of professional executive officers and independent sources of revenue, from the very beginning were unable to take over the full powers that the 1877 Act obviously intended them to have, and for the first twenty years of national education the Education Boards were the predominant authorities in the system.

From just before the beginning of this century the Education Department began to play an increasingly important part in educational administration, partly as a result of improved means of communication. Under the Act of 1877 the

* Every child between the ages of seven and fourteen years has to be enrolled as a pupil of either a public or a registered school. There are statutory exemptions from attendance in certain circumstances.

Boards had been given wide powers: to administer funds from endowments and Departmental grants, to appoint and remove teachers, to pay teachers' salaries according to their own scales, to establish scholarships and provide for secondary education in district high schools, and to control the inspectorate. Legislation, beginning with the establishment of a national scale of primary school salaries and staffing in 1901 and culminating in the Education Act of 1914 (still the basic measure under which the education system is administered), concentrated these powers more and more in the hands of the Department, which began to take a more detailed interest in expenditure by the Boards. The original freedom of the Boards in the expenditure of building grants was taken away, and the present system, requiring special departmental authorization for each new building, gradually became established. From 1901 onwards the Department paid over to the Boards the exact sum required for teachers' salaries, thus leaving a much-reduced capitation grant to be used by the local authorities at their own discretion. In 1914 the Department took over the control of the school inspectorate.

The centralization of the inspectorate made possible a further change affecting the powers of the Boards. In 1920 a Dominion grading scheme was instituted under which all primary-school teachers are annually awarded grading marks by the Inspectors. A teacher's total marks give him a place on a numerically graded list*. Since all ordinary appointments are decided on the basis of this list, the system of appointment is in effect a national one, and the Boards have very limited powers of discretion although they make the appointments and the teachers are servants of the Boards.

It does not follow, however, that, since the Boards and the School Committees have lost many of their original powers, they have ceased to play an important part in the system. The Committee's primary function is the care of school buildings, grounds, and equipment, but, in addition to this, many interest themselves very keenly in the general activities of the school and provide in each district a focusing-point for local opinion on educational matters. The Education Boards are still the initiating bodies on matters of buildings, sites, conveyance of pupils, consolidation, and provision of school facilities generally; and, although the final word often lies with the Minister of Education or the Department, the Boards have no small influence in the fixing of policy within their districts. The schools are legally their schools and the teachers their teachers, and, although in general the Boards' choices of applicants are limited by the grading system, they have much more discretion in the selection of applicants for special or key positions. The teachers' class-room activities are under the control of the Inspectors, but their general responsibility is to the Boards, and their professional life tends to centre on the Boards rather than on the Department. In spite of the apparent clumsiness of the administrative structure and of periods of strong feeling in the past, the system at present functions remarkably smoothly, and has achieved a balance, workable if not ideal, between the claims of local initiative and national efficiency.

Post-primary education, with the exception of that given in the district high schools, was not brought by the Act of 1877 within the province of the Education Boards. Several secondary schools had been established in various ways before

* A teacher's salary was determined by his grade. But in 1938 new regulations for the purpose of raising the salaries and stabilizing the staffs of public-school teachers fixed a basic salary dependent on years of service, plus a possible position salary depending on the position held.

† The Education Amendment Act of 1938 provided for increased grants to Education Boards for general purposes and also for the incidental expenses of the School Committees.

1877 and these continued under their own Boards of Governors, which were in no way related to the Education Boards. The Education Reserves Act, 1877, set aside one-fourth of the educational reserves for secondary education, vesting the remainder in the Education Boards for primary-school purposes. Thus there was introduced into the colony that cleavage between elementary and secondary education that was characteristic of the English system. In the years immediately following the Act of 1877, a series of Acts set up a number of local High School Boards, each in control of its own land endowments. No effective provision was made for the inspection of these schools by any outside authority or the co-ordination of their work with any other part of the school system.

Further secondary schools, and, from 1902 onwards, technical high schools, were from time to time established. Before 1901, fees had been charged even in district high schools. In that year free places were instituted in district high schools, and in 1902 secondary schools were offered special capitation grants if they would provide free places for deserving scholars. Under the Education Act of 1908 free places at the technical schools were granted on a more liberal basis, and by 1914 all State post-primary schools were obliged to give free places for two years at least to any pupil who had passed the Proficiency examination. By 1938, less than 1 per cent. of the pupils in public post-primary schools paid tuition fees.

A direct effect of this movement towards free post-primary education was that the Department began to exercise an increasing degree of control over the schools. The Education Amendment Act, 1920, authorized the establishment of Dominion staffing and salary scales for post-primary schools, and instituted the system—already operative in the case of the Education Boards—of paying over to the schools the exact sum required for salaries plus a capitation grant for incidental expenses, less the amount received from local secondary-school endowments. This, in effect, nationalized these endowments, and spread more evenly the benefits resulting from the foresight of the early settlers.

THE SCHOOL SYSTEM.

Perhaps the best method of sketching the outline of the school system as it now stands is to trace the career of a child as he passes through the system. He may at the age of three enter a free kindergarten. These are under the control of the Free Kindergarten Association, but are subsidized by the Government. At the age of five he may enter, and at seven he must enter, either a primary school organized under one of the nine Education Boards, or a registered private, primary school. All State primary schools are co-educational. The child passes through the infant classes and Standards I, II, III, and IV. At this point he will in most places go straight on to Forms I and II in the same school, but since 1922 there have been established a number of intermediate schools (under the control of Education Boards) and intermediate departments (most of them under post-primary school Boards), which take Form I and II pupils from contributing schools in their areas.

Until 1936, children had to sit, at the end of Form II, the Proficiency examination set by departmental Inspectors. This examination was then abolished, leaving the path to free post-primary education until the age of nineteen completely open to any child satisfying the requirements of his headmaster in Form II or attaining the age of fourteen. When he leaves the primary stage the child must make a choice between alternatives. He may, if he is fourteen or over, go straight to work, though this is in most cases discouraged. If he is a country child he may have no alternative but to enter Form III of a district high school, which is really a secondary top to a primary school and is under the same control. In more thickly populated areas there will be either a secondary school or a technical high school. In some towns a secondary school and a technical high school have amalgamated to form a combined school. To those not understanding the peculiar character of the New Zealand technical high school this may seem a strange union, but the differences between schools of the two types are, except in the larger centres, relatively slight.

The technical schools, combined schools, and a few of the secondary schools run evening classes, particularly in practical and vocational subjects, which an adolescent may attend after he leaves full-time day school. Apprentices in some trades are required to attend evening classes as a part of their trade training.

Should the pupil desire to proceed to higher education he will remain at postprimary school for three or four years before sitting for the University Entrance examination. The completion of another year of satisfactory work at school after passing this examination gives him a Higher Leaving Certificate, which entitles him to free tuition at a University college. The University of New Zealand, whose controlling body is the University Senate, is constituted of University colleges in Auckland, Wellington, and Canterbury, and the University of Otago (which does not itself grant degrees). The School of Agriculture, consisting of Massey and Canterbury Agricultural Colleges and governed under one Council in connection with the University of New Zealand, is open to students specializing in agricultural studies.

The four teachers' training colleges, although they work in conjunction with the four University colleges, are organically related to them only through the newly formed Boards of Studies. The Education Boards in the four main centres are the controlling authorities of the training colleges.

The State system also caters for the needs of certain special groups of children. Maori children may attend the public schools, but there are also Native village schools provided for their primary education*. There are also a few mission schools remaining from the pre-Maori War system established with the help of Government subsidies. For his post-primary education the Maori child may go free to any available secondary school; but in remote areas he will go to a denominational Maori secondary school. Some of these denominational secondary schools are financed in part from public endowments specially provided, and all of them receive funds from special State scholarships.

Children living in isolated areas or prevented in other ways from attending school have access to the Correspondence School for both primary and post-primary work.

Finally there are several special schools and smaller homes, administered by the Education Department's Child Welfare Branch, to take care of deaf-and-dumb, backward, or delinquent children.

In addition to the various State schools described, a parent may send his child to a private school, either primary or secondary, conducted by either religious bodies or private individuals. No Government free place, however, is tenable at

* Established under the Native Schools Act, 1867, and administered by the Education Department since 1880.

these schools*. All private schools must be registered, and are subject to annual inspection by the Department's Inspectors. The majority of the private schools are conducted by the Roman Catholic Church. Amongst the private schools are two endowed secondary schools modelled after the English public school.

To complete the above sketch it should be added that co-education exists only in certain stages of the system. In the public, Native, technical, and some of the secondary schools (particularly those in the country), and in the teachers' training colleges and the University colleges, pupils and students of both sexes attend together. The principal State secondary schools in the larger centres, however, and—with one exception—all the registered private secondary schools, are single-sex schools.

PUPILS AND STUDENTS.

The number of pupils and students receiving instruction in the educational institutions of the Dominion is shown in the following summary. The table refers to roll numbers as at the end of the year (except in the case of technical classes, which are as at 1st July).

Class of Institution.1935.1936.1937.1938.
‡ Exclusive of children in kindergartens (1,756 in 1938).
Primary Education.    
Public (State) schools    
Intermediate schools and departments197,326210,172207,653206,002
Native village schools7,8769,1759,6429,832
Native mission schools570638632755
Registered private primary schools26,86927,70927,93127,631
Lower departments of secondary schools200214226218
Correspondence classes (primary)1,4441,6581,8031,744
Chatham Islands163166157155
Totals, primary234,448249,732248,044246,337
Post-primary Education.    
Secondary schools13,64814,00214,10114,418
Combined schools1,9741,9862,1132,722
Secondary departments of district high schools4,5934,0704,3894,905
Technical high schools7,3237,4227,8338,149
Maori secondary (boarding) schools373408501457
Registered private and endowed secondary schools4,5084,8095,2105,286
Correspondence classes (secondary)519758818894
Totals, post-primary32,93833,45534,96536,831
Technical Classes (excluding Technical High Schools and Technical Day Schools).    
Conducted by Education, Secondary School, or High School Boards2,5553,1853,1724,621
Conducted by Technical School Boards7,9928,9929,98210,615
Conducted by University colleges286304276316
Totals, technical10,83312,48113,43015,552
University Education.    
University colleges4,1094,3774,4624,646
University students exempt from lectures709590548573
Lincoln Agricultural College674144105
Massey Agricultural College220210184383
Totals, University5,1055,2185,2385,707
Totals, scholars and students283,324300,886301,677304,427

* Except for Maori “Government pupils” in the denominational secondary schools.

† Education Amendment Act, 1921-22.

ANNUAL EXAMINATIONS.

The number of candidates who actually presented themselves for the various examinations conducted by the Education Department during the last five years is given below:—

Examination.1934.1935.1936.1937.1938.
* The Intermediate examination was discontinued in 1938.
Intermediate1,0269961,0121,092*
Public Service Entrance......1,0951,547
Teachers' C and B991028710393
Training College Entrance Examination308684845893167
School Certificate4,1974,3074,4024,5654,559
London University Examinations32243
Handicraft Teachers' Certificate1713161110
Technological Examinations64676963123
Naval Cadetships61243
Aircraft Apprenticeships13214
    Totals5,7216,1756,4377,8316,509

The University of New Zealand conducted examinations in 1938 in the faculties of arts, science, medicine, public health, dentistry, home science, law, engineering, commerce, agriculture, forestry, and music; for diplomas in journalism, in banking, and in insurance; and for admission to the legal and accountancy professions. There were 9,672 entrants for the degree examinations in 1938, compared with 9,445 in 1937. The number of candidates for the University Entrance examination in the last five years has been: 1934, 4,610; 1935, 4,602; 1936, 4,774; 1937, 4,860; 1938, 4,925.

PUBLIC EXPENDITURE ON EDUCATION.

Out of public funds £5,099,523 was spent on education for the financial year ended 31st March, 1939. This sum includes amounts paid from reserves revenue, but not revenues received by certain secondary schools and University colleges from endowments, fees, &c., which are available for educational purposes. Direct income of post-primary schools and University colleges in 1938-39 from reserves vested in them amounted to £57,700. The following shows the expenditure from public funds for each branch or service of education for each of the last five years:—

Service.1934-35.1935-36.1936-37.1937-38.1938-39.
* Includes £1,181 capital expenditure on kindergartens.
 £££££
General administration32,35835,88237,33642,90745,244
Elementary education1,886,9052,011,6102,458,3062,798,0733,075,184*
Secondary education and technical instruction597,976682,917802,777952,2341,023,358
Training colleges, &c.12,66955,359154,894171,655212,322
Higher education63,73971,89590,252152,396195,488
Native schools91,792100,077126,886155,025181,358
Physical instruction1,7491,4252,6803,1233,072
School for the deaf4,9065,5316,36511,40715,718
Education of the blind1,0671,4141,5874,2326,196
Schools for the mentally backward12,65014,47618,63022,54623,246
Child welfare107,549105,128104,734124,805141,415
Material and storesCr. 455Cr. 64439Cr. 792Cr. 711
Country library service........7,597
Miscellaneous services58,262171,020170,839181,523170,036
    Totals2,871,1673,256,6703,975,7254,619,1345,099,523

There is now given a series of comparative figures which shows the cost of education during the last ten years.

Year ended 31st March,Expenditure from Public Funds.Expenditure per Head of Mean Population.
 £(000)s. d.
19304,05854 11
19314,10254 9
19323,41044 11
19332,81636 10
19342,74135 6
19352,87136 11
19363,25741 7
19373,97650 4
19384,61957 11
19395,10063 4

PRIMARY SCHOOLS.

The primary-school system consisted in 1938 of 2,290 public schools (including district high schools and intermediate schools or departments), 143 Native village and 11 mission schools for Maoris, 307 registered private primary schools, and 6 lower departments of secondary schools. There were also 37 kindergarten schools.

Lower departments of secondary schools may be run for pupils who have not passed Form II, provided that no part of the cost of instruction or of the maintenance of the department is met out of the income from endowments of the school or from Government grants. At the end of 1938 the total number of pupils in the six departments mentioned in the preceding paragraph was 218 (103 boys, 115 girls), with 9 teachers.

The curriculum of the primary school, as set out in the syllabus of instruction, includes English, arithmetic, geography, history and civics, drawing and handwork (including needlework), nature-study and elementary science, physical education, moral instruction and health, and singing. Elementary science, agriculture, and dairy work are taught by the regular staff under the supervision of specialist itinerant instructors. Woodwork and metal-work instruction is given to the older boys at manual training centres, and the older girls are taught domestic subjects, including cookery and hygiene.

The abolition in 1936 of the last barrier between primary and post-primary education—the Proficiency examination—has allowed much more flexibility in curriculum and teaching methods. Emphasis has recently been placed on the fuller use of broadcasting, visual aids, art-work, the school library, and physical education.

KINDERGARTENS.

Children below the age of five are not enrolled in the State primary schools. They may be enrolled, however, at free kindergartens maintained by local branches of the New Zealand Free Kindergarten Association. Since 1935 the Government has substantially increased its total grant to the kindergartens. In 1938 three women advisers to infant departments and kindergartens were appointed.

At the end of 1938 there were 1,756 children on the rolls of thirty-seven free kindergartens. As yet the system is far from universal.

PUBLIC (STATE) SCHOOLS.

The figures tabulated below refer to pupils in public schools, and for the year 1929 also include pupils of three junior high schools (now termed intermediate schools) administered by the Auckland Education Board. From 1930 to 1933 Forms I and II pupils, and since 1934 all pupils of intermediate schools and departments, have been included. Thus all pupils receiving primary instruction are accounted for in the figures from 1930 onwards.

Year.Population at 31st December (excluding Maoris).Number of Schools (including Intermediate Schools and Departments).Pupils at End of Year.Mean of Average Weekly Roll.Average Attendance, Whole Year.Average Attendance as Percentage of Weekly Roll.
1,9291,417,2342,597217,961213,210193,97890.9
1,9301,436,1112,601218,479212,702196,08292.2
1,9311,450,1712,534218,442213,059197,32492.6
1,9321,460,0062,528207,280210,078193,70192.2
1,9331,470,0082,531200,641195,935182,01792.9
1,9341,478,9892,548199,745194,812177,94791.3
1,9351,487,9052,502197,326192,466178,08692.5
1,9361,500,6582,460210,172203,631187,66092.2
1,9371,515,3962,394207,653202,635187,06192.3
1,9381,530,3662,290206,002200,164177,73388.8

Of the 2,290 schools shown above for 1938, 1,670 had rolls of not more than seventy, and of these 897 had rolls ranging from one to twenty-four.

The following figures show the number of schools and intermediate schools or departments as at 31st December, 1938, and the number of pupils at the end of each of the last five years. The latter figures are exclusive of the secondary departments of district high schools.

District.Schools at End of 1938.Pupils at End of—
1934.1935.1936.1937.1938.
Auckland69563,00562,77467,28567,34367,510
Hawke's Bay18014,69414,55015,37615,24415,112
Taranaki15011,28810,98011,61711,21311,161
Wanganui18814,90314,72415,69915,31915,220
Wellington21926,37125,87127,41427,13126,894
Nelson1326,2996,3086,7716,7096,599
Canterbury34233,58932,95634,99934,44933,774
Otago22118,56018,13319,19718,64918,320
Southland16311,03611,03011,81411,59611,412
Totals2,290199,745197,326210,172207,653206,002

In each of the education districts are located Inspectors of Schools, who form part of the staff of the Department of Education. The total number of primary-school Inspectors on the 31st March, 1938, was 38, allocated as follows: Auckland, 10; Hawke's Bay, 3; Taranaki, 3; Wanganui, 3; Wellington, 6; Nelson, 2; Canterbury, 6; Otago, 4; Southland, 3.

The following table relates to pupils on the rolls of the public schools and Forms I and II of intermediate schools and departments of the Dominion at the 1st July, 1938:—

Age.1938.Percentage of Total Pupils.
Boys.Girls.Totals.1934.1935.1936.1937.1938.
5 and under 6 years9,0378,41017,4471.01.48.68.68.7
6 and under 7 years11,26310,40221,66511.611.510.811.410.8
7 and under 8 years12,17511,27223,44712.512.411.311.311.7
8 and under 9 years11,70611,18722,89312.612.511.511.511.5
9 and under 10 years11,69211,25822,95012.812.611.911.711.5
10 and under 11 years12,13911,53123,67012.413.011.911.911.9
11 and under 12 years12,25311,37823,63112.512.412.111.811.8
12 and under 13 years11,77710,93922,71612.311.810.911.411.4
13 and under 14 years8,1796,75814,9378.38.57.57.37.5
14 and under 15 years3,2472,0555,3023.33.22.92.62.7
15 and under 16 years6182909080.60.60.50.50.5
16 years and over6930990.10.10.10.00.0
Totals104,15595,510199,665100.0100.0100.0100.0100.0

In 1938 20,542 pupils (10,536 boys and 10,006 girls) left public primary schools, as against 20,689 (10,636 boys and 10,053 girls) in 1937. Of those leaving in 1938, 17,145, or 83 per cent., had passed Form II (Standard 6), and 3,397 or 17 per cent., had not passed that standard. The corresponding percentages in 1937 were also 83 and 17. Of those leaving public schools in 1938, 65.6 per cent. went on to some post-primary school.

PRIMARY SCHOOLS FOR MAORIS.

Approximately one-half of the Maori children in New Zealand are educated in the public schools. At the end of 1938 there were 11,454 attending public schools out of a total of 20,975 Maori children receiving primary education.

The language of instruction in the Native schools is English, but the schools are not completely English in outlook, for Maori arts and crafts, song, legend, and history are taught.

Methods of teaching are becoming increasingly practical, and objectives more closely related to the special needs of the Maori people. In many of the Native schools, such equipment as woodwork-rooms, cookery-rooms, model cottages, baths, hot and cold showers, and laundries is supplied. Elementary agriculture and health are essential centres of activity in every Native school.

The number of pupils on the rolls of the 143 Native village schools at the end of 1938 was 9,832 (including 1,021 non-Maori children), while the total roll number of the eleven Maori mission schools was 652. The total roll number of all the Native schools inspected by officers of the Education Department was 11,044.

The following table gives the principal statistics of Native village schools during the last ten years:—

Year.Number of Schools at End of Year.Roll at 1st July.Average Attendance Whole Year.Average Attendance as Percentage of Weekly Roll.Number of Teachers.
Maori.Non-Maori.Males.Females.
1,9291376,1198326,25289.9104203
1,9301386,2188296,43790.9111211
1,9311396,4901,0116,80490.5111212
1,9321356,6359696,84891.0108219
1,9331376,4429326,58189.6114218
1,9341386,5409646,79990.4119221
1,9351386,8989547,09890.8120218
1,9361407,9991,0998,14090.0126269
1,9371418,4371,0848,59490.1132273
1,9381438,7431,0258,47186.6141286

Three Inspectors of Schools attached to the Education Department are engaged in the inspection of Native schools, mission schools, and secondary schools for Maoris.

INTERMEDIATE SCHOOLS.

The intermediate school (formerly termed junior high school) was first initiated as an experiment in New Zealand in 1923. By the end of 1938, sixteen intermediate schools or departments had been established, of which six are separate schools, seven are attached to secondary schools, two to district high schools or departments, and one to a technical school. A child may transfer to an available intermediate school after passing Standard IV of the primary school or, with special permission of the Director of Education, on reaching the age of thirteen. Since 1932 the regular course has been two years, though in a few schools, particularly where pupils are not proceeding to a post-primary school, a third-year course is available. The main purpose of the intermediate school is to secure the benefits of consolidation for the older children and, through the provision of varied and enriched courses, to help them decide on their lines of further education.

Pupils on the rolls of intermediate schools or departments at the end of 1938 numbered 4,382, or nearly 10 per cent. of all children in Forms I or II. The average attendance during the year was 4,120. The ages of pupils on the roll at 1st July, 1938, were—

Age, in Years.Boys.Girls.Totals.
Under 11181432
11 and under 12381413794
12 and under 139218021,723
13 and under 147316161,347
14 and under 15307203510
15 and under 167136107
16 and under 1710 10
    Totals2,4392,0844,523

PRIVATE SCHOOLS.

By the Education Amendment Act, 1921-22, every private school was required to apply for registration before the 13th July, 1922, and no private school can now be established unless application is first made to the Department of Education for registration. Certain standards of efficiency and suitability of staff, premises, equipment, and curriculum have to be fulfilled.

The following table contains the principal statistics of private primary schools for each of the last five years:—

Year.Number of Schools.Roll at End of Year.Average Yearly Attendance.Teachers.
Males.Females.Totals.Males.Females.Totals.
1,93430712,76213,87426,63623,38598891989
1,93531012,97113,89826,86923,930109866975
1,93630913,39814,31127,70924,714115877992
1,93730613,54814,38327,93125,1811319011,032
1,93830713,74314,64328,38624,4421389081,046

The majority of the schools included in the preceding table are Roman Catholic, the figures for Roman Catholic schools for 1938 being—Schools, 226; scholars on roll at end of year, 24,072 (males 11,749, females 12,323); average yearly attendance, 20,729; teachers, 769 (males 60, females 709).

POST-PRIMARY SCHOOLS.

One of the most striking features of New Zealand education is the proportion of pupils who proceed to some form of post-primary schooling at the conclusion of the primary course. The movement towards free secondary education for all began in 1901 when free places were introduced in the district high schools. In 1903 it became obligatory on all State post-primary schools to provide some free places, and from 1914 every child who had passed the Proficiency examination was entitled to free education in any State post-primary school. The final step was taken in 1936, when the Proficiency examination was abolished and free post-primary education to the end of the year in which he is nineteen was offered to every child completing a primary-school course or attaining the age of fourteen years. Extension beyond the age of nineteen is allowable in special cases approved by the Minister. In 1938, 65.6 per cent. of the children leaving primary schools went on to full-time post-primary schooling. The average length of stay in the State post-primary schools as a whole is about two and a half years. In 1938, returns for secondary and combined schools showed that 36.2 per cent. of their pupils received education beyond the second year.

Post-primary schools are either public (State) or private. The following table shows the number and types of post-primary schools during the last five years:—

Year.Secondary Schools.Combined Schools.Secondary Departments of District High Schools.Technical High Schools.Maori Secondary Schools.Endowed and Private Secondary Schools.Totals.
193438682211055212
193538685211056216
19364068421856215
19374068621857218
19383978820857219

A combined school is an amalgamation of a secondary and a technical school under a single governing body. District high schools are public primary schools with a secondary “top.” The basic course is academic, as in the normal secondary school, but where staffing and equipment allow, special courses are provided in agriculture, commercial work, and domestic science. Technical schools are described later in this section.

Until 1904, secondary schools were established by special (local) Acts of the General Assembly, and the majority of schools giving post-primary education have been established in this manner. At the present time the provisions of the 1914 Education Act allow the Minister of Education to establish such schools. Secondary schools and combined schools are controlled by Boards of Governors and district high schools by the Education Boards.

The secondary schools are regularly inspected by four Inspectors and the technical schools by two Inspectors, attached to the Education Department. Combined schools are inspected by both secondary and technical Inspectors. In addition, there is a woman Inspector of home science and a woman Supervisor of domestic subjects.

The post-primary curriculum includes English, French, Latin, history, geography, arithmetic and mathematics, general science, chemistry, biology, heat and light, electricity and magnetism, home science, dairy science, agriculture, botany, physiology and hygiene, book-keeping, shorthand and typing, accountancy, economics, woodwork and metal-work, mechanical and electrical engineering, wool-classing, artwork, music and singing, cookery, needlework, &c. All post-primary schools do not offer all these subjects; nor, except in special cases, are they studied as separate subjects, but are grouped in courses termed professional, industrial, commercial, agricultural, art, home-life, according to their composition. In general, the combined schools and larger technical high schools provide the widest range of alternative courses.

The number of pupils at the end of each year of the last decade is shown in the following table; no account is taken of lower departments of secondary schools, and in the case of district high schools only the secondary departments are included.

Year.Secondary Schools.Combined Schools.District High Schools.Technical High Schools.Maori Secondary Schools.Endowed and Private Secondary Schools.Correspondence Classes.Totals.
192915,498..3,8696,1145333,6989829,810
193016,149..4,1156,9535353,82516631,743
193115,4284484,6727,3974484,14128632,820
193213,4461,9754,3457,1063464,05332531,596
193313,3091,9294,3897,1493024,06335531,496
193413,4871,9194,3657,1833334,14639631,829
193513,6481,9744,5937,3233734,50851932,938
193614,0021,9864,0707,4224084,80975833,455
193714,1012,1134,3897,8335015,21081834,965
193814,4182,7224,9058,1494575,28689436,831

At the end of 1938, of the total scholars attending secondary schools, 7,440 were boys and 6,978 girls; combined schools, 1,528 and 1,194; secondary departments of district high schools, 2,205 and 2,700; technical schools, 4,526 and 3,623; endowed and registered private schools, 2,377 and 2,909; and Maori secondary schools, 240 and 217.

WAR BURSARIES FOR SOLDIERS' DEPENDANTS.

Regulations which came into force in January, 1918, provided for the award of bursaries to dependants of members of the New Zealand Expeditionary Forces who were killed through active military service or who were disabled through such service. To qualify for a war bursary a child must be eligible for—

  1. Free education at technical classes; or

  2. A free place at a post-primary school; or

  3. A University National bursary.

Seven hundred and fifty-five war bursaries were current in 1938.

TECHNICAL HIGH SCHOOLS.

The technical schools fall roughly into two types: (a) Those in the small centres, which provide for all the post-primary needs and are distinguishable from secondary schools only by having in general a rather more strongly developed practical side; and (b) the large technical high schools in the main centres, in which there is less evidence of the generalized academic curriculum, since this is adequately provided by the city secondary schools.

However, even in the latter type most of the courses in the day schools are still designedly pre-vocational and not genuinely “technical” in character. Technical schools are controlled either by a Board of Managers or by the Education Board of the district acting in a similar capacity.

There were twenty technical high schools in 1938. The following table shows the number of pupils taking the different courses available (as on 1st July in each of the last five years):—

Course.1934.1935.1936.1937.1938.
Industrial2,4202,5962,6722,9083,216
Commercial and general4,0314,1784,3444,4694,582
Domestic1,5331,3851,3021,3201,383
Agricultural468465429379403
Art459425416332381
    Totals8,9119,0499,1639,4089,965

TECHNICAL CLASSES.

The number of centres at which technical classes for part-time day and evening students are given increased from 93 in 1937 to 132 in 1938. These classes, on the whole, are more in the nature of trade classes than the usual technical-school course, but many of the pupils attend in order to continue their general post-primary education, and a great number to be trained only in shorthand, typing, and book-keeping.

The number of individual students in 1938 was as follows:—

Classes conducted by Education or High School Boards4,621
Classes conducted by Technical School Boards or by Managers10,615
Classes conducted by University colleges316
Total15,552

Of the above number, 9,001 (6,286 males and 2,715 females) held free places.

EXAMINATIONS.

Technological examinations were conducted by the Department of Education in 1938 on behalf of the City and Guilds of London Institute at eleven centres. The total number of entries was 273, and the number of passes 128. The Department also held its own examinations in technological subjects in 1938: 123 candidates sat for examination, of whom 31 passed in the preliminary, 34 in the intermediate, and 10 in the final examination.

SECONDARY SCHOOLS FOR MAORIS.

The Maori child has the same right to a free secondary education as the non-Maori, and where a State post-primary school is accessible he may attend it. For the Maori children in remote districts, post-primary education is provided by means of Government scholarships granted by the Education Department to selected private denominational schools. There are eight of these schools, five for girls and three for boys. Some of them are also partly financed out of public endowments originally provided for the purpose of Maori education.

At the end of 1938, 411 Maori pupils were receiving secondary education at these schools, 229 of the total being Government scholarship-holders.

VOCATIONAL GUIDANCE.

Since 1938 full responsibility for the work of vocational guidance of pupils at post-primary schools, which for some years past had been carried on almost entirely by voluntary organizations, has been taken by the Government. Eight vocational guidance officers (four men and four women) were appointed, two to each of the four chief centres; and educational guidance officers, known as “careers-advisers,” have also been selected at certain large post-primary schools to work in conjunction with the district vocational guidance officers. So far as the work of finding positions for children leaving school is concerned, the vocational guidance officers act in collaboration with the officers of the Placement Service of the Labour Department, and in each of the four main cities a “Youth Centre” has been established where the work of guidance and placement is undertaken jointly by officers of the Education and Labour Departments. These voluntary organizations, known as “Youth Employment and Guidance Committees,” are retained in an advisory capacity to act as a link between the Youth Centres and industry.

It is now recognized that a highly differentiated system of post-primary education necessitates provision of adequate facilities for helping pupils to choose appropriate schools, courses, and occupations, and vocational guidance has become a vital part of the developing education system.

RURAL EDUCATION.

CONSOLIDATION OF SCHOOLS.

In order to give children in country districts the advantages of special equipment and more specialized teaching in larger schools, the consolidation of the smaller rural schools has been encouraged wherever practicable. Approval was given in 1938 for the consolidation of 113 small schools on seventy-three centres.

CONVEYANCE AND BOARD.

A natural consequence of consolidation is the provision of adequate conveyance facilities to bring children into the centres. Free passes on the railway to the nearest public or private school are granted to children living near a railway-line but out of reach of a primary school, and the same privilege is enjoyed by pupils having to travel to attend secondary schools, combined schools, district high schools, and technical high schools, as well as to pupils travelling to attend technical schools or classes other than at technical high schools.

In 1936 the Government extended the post-primary school conveyance service to include road as well as rail transport. Since 1938 the full cost of conveying pupils to manual-training centres for manual and technical classes has been met by the Government. The expansion of conveyance services is indicated by the number of contracts arranged for primary and post-primary pupils over the past three years—in December, 1936, there were some 260 contracts; in 1937, 490; and in 1938, 640. In addition to conveyance, board allowances are made both to primary and post-primarily pupils obliged to leave home to attend school.

It has been found that the provision of better transport facilities has stimulated the demand for post-primary education in country districts. Thus in 1935 there were some 31,500 pupils in attendance at post-primary schools, exclusive of the Correspondence School; in 1938 there were 34,200. This new demand has in turn led to further expansion of conveyance services. The total expenditure on such services for 1938-39 was almost double that of 1936-37. The following table gives the details for the last two years:—

1937-38.1938-39.
Rail.Other.Totals.Rail.Other.Totals.
 ££££££
Public primary8,749105,884114,6336,267150,862157,129
Private primary3,356..3,3562,342..2,342
Public post-primary16,44211,05727,4999,51718,63328,150
Native898,9719,060619,8779,938
Private secondary1,642..1,642836..836
    Totals30,278125,912156,19019,023179,372198,395

During the same years the expenditure on board of pupils attending schools was as follows:—

 1937-38.1938-39.
 ££
Public primary4,9278,010
Public post-primary22,91141,207
Native1,1021,556
    Totals£28,940£50,773

CORRESPONDENCE SCHOOL.

Since 1922, correspondence classes have been conducted for the primary education of children in very remote areas and of those unable to attend school on account of lengthy illness or other causes. In 1929, courses were extended to cover secondary education up to the stage of the University Entrance Examination. Recently the effort has been made to develop a corporate school spirit through the institution of craft and club activities, weekly radio lessons, and personal visits from special travelling teachers. Vacation schools have been organized in various centres in order to give pupils the opportunity to do practical work and to take part in group activities.

The benefit of correspondence tuition has now been extended to young persons in employment, including teachers of small public schools, junior assistants in Native schools, Post Office cadets, and others who are unable to attend post-primary schools for evening classes. An increasing amount of attention is paid to practical subjects, such as needlework, woodwork, and practical agriculture.

At the end of 1938 there were 2,668 pupils on the roll of the Correspondence School, 1,774 being in the primary department and 894 in the secondary. The staff of the school consists of a headmaster, 35 secondary and 45 primary assistant teachers (10 of whom are engaged in the infant department), 7 specialists engaged exclusively in teaching needlework, and 3 teachers of “special class” children. There are also 33 office-assistants.

AGRICULTURAL CLUBS.

An effort has recently been made to see that the curriculum is adapted to the social and economic background of each school. The teaching of agriculture is made a special feature in the rural schools, and, encouraged by Government grants, the growth of boys' and girls' agricultural clubs marks the success of this policy. Projects have been undertaken by the clubs in the rearing of calves, lambs, chickens, pigs, and bees, and in the production of crops. In 1935-36 some 4,000 projects were completed; in 1936-37, 6,750; and in 1937-38, 15,188.

HEALTH SERVICES.

PHYSICAL EDUCATION.

Physical education, including swimming and life-saving, is a recognized part of the primary and post-primary school curricula. In the public schools a period of not less than fifteen minutes a day is devoted to the subject, and in post-primary schools at least one hour a week. During the summer month of February public schools have since 1937 suspended ordinary time-tables and concentrated on development of physical welfare and outdoors activities. Corrective classes are held in the larger schools for the purpose of remedying physical defects of the children.

As a result of a conference held in 1937, increasing importance is being attached to the place of physical education in the curriculum. A Superintendent, to organize and control physical education in the schools throughout the Dominion, was appointed to begin duties in 1939.

MEDICAL AND DENTAL TREATMENT.

Information on the medical and dental inspection of school-children and the dental-clinic system is given in the section (VIa) of this Year-Book devoted to Public Health.

MILK IN SCHOOLS.

The milk-in-schools scheme for the free issue of a half-pint daily ration of milk to children commenced on 1st March, 1937. The consumption of the milk is entirely voluntary, and it is found over all schools that about 85 per cent. of children accept. By 1938 milk was made available to some 65 per cent. of the total school population (inclusive of the 15 per cent. declining the milk issue and of 8,000 Maori children to be issued with malted milk).

In remote areas where it is impossible to maintain a pasteurized supply, the needs of the children are met by the free issue of milk for cocoamaking or the issue of whole-milk or malted-milk powder.

CHILD WELFARE AND SPECIAL SCHOOLS.

The Child Welfare Act of 1925 provided for the creation of a special branch of the Education Department, known as the Child Welfare Branch. The Act was passed to make better provision with respect to the maintenance, care, and control of children who are specially under the protection of the State, and to provide generally for the protection and training of indigent, neglected, or delinquent children.

An important section of the Act provided for the establishment of Children's Courts, to be presided over by Stipendiary Magistrates or Justices specially authorized to exercise jurisdiction in these Courts. Provision was also made for the appointment of honorary associates of either sex, whose function it is to consider all the facts concerning children brought before the Courts and to advise the presiding Magistrate or Justice as to what action should be taken. The appointment of Child Welfare Officers for the investigation of all cases coming before the Courts was also provided for. The functions of such officers are carried out mainly by the regular officers employed by the Department, but in outlying districts the services of a number of honorary child welfare officers are utilized for this important work.

The principle of dealing with children in the privacy of the Magistrate's room had been followed for many years throughout the Dominion, and the Child Welfare Act was designed to give legality to such a practice. Very wide discretionary powers are given to these special Courts in dealing with children. The ordinary procedure of requiring the child to plead, of taking evidence on oath, and, indeed, of hearing the particular charge may be dispensed with altogether. Wherever practicable the Children's Court is held in premises apart from the ordinary Police Court, and no newspaper is permitted to publish either the names of children appearing before these Courts or any particulars that are likely to identify a child.

A child was originally defined for purposes of the Act as one under sixteen years of age. This age was raised to seventeen in 1927.

In order to provide for the greater protection of infants of unmarried mothers and for the assistance and guidance of the mothers themselves, there is provision for Child Welfare Officers, on being notified of such births, to investigate each case and to render such assistance as is required, either in placing the child in a suitable foster-home or in advising the mother in the matter of affiliation proceedings, or in assisting her in obtaining employment, &c. By an amending Act in 1927 provision was made for the inspection and registration of all private institutions for children.

In addition to the work in connection with the maintenance and education of destitute, neglected, and delinquent children committed by the Courts, the Child Welfare Branch (1) supervises all infants and young children under the age of six years who are living apart from their parents (2) makes inquiry through its field officers, for the information of Magistrates, into all applications for the adoption of children; (3) supervises all children and young persons placed under the field officers by order of the Court; and (4) controls institutions for deaf or for mentally backward children.

The following figures (which are exclusive of children dealt with as preventive cases, 1,691 in 1938-39) indicate the numbers under control during each of the last five years. In addition there were (1938-39) 21 children at the New Zealand Institute for the Blind, for whom the Education Department made payment.

 1934-35.1935-36.1936-37.1937-38.1938-39.
Boarded out, institutions, receiving-homes, and in hospitals, or convalescent homes, &c.3,9934,0223,9803,9854,046
Under supervision917892863910973
Infant-life protection816836830842695
Deaf children127116111113103
Mentally backward children282240253263268
Totals6,1356,1066,0376,1136,085

The Child Welfare Act authorizes Children's Courts to place children under the supervision of Child Welfare Officers in cases where it appears undesirable or unnecessary to remove them from their own homes, and generally in all cases where friendly contact with the parents as well as the children is sufficient to bring about a readjustment of the home conditions or the correction of incipient anti-social traits in the children. In this important work the Department receives valuable assistance from certain of the private social service organizations.

The number of cases dealt with by the Courts in 1938-39 was 2,801 (2,982 in the previous year), and of these 744 were placed under supervision and dealt with as indicated in the foregoing paragraph. The number actually admitted to institutions, such as receiving-homes, special schools, training-farms, &c., was 501; but all these, with the exception of 186 who required long periods of training or were regarded as unfit for placing out, were suitably provided for in the community before the close of the year. The remainder of the children were dealt with in a manner not calling for supervision by a Child Welfare Officer.

At 31st March, 1939, the number of children boarded out was 2,628, as compared with 2,673 at the end of the preceding year. The boarding-out rate is 17s. 6d. per week for infants under twelve months, 15s. for children over that age attending primary schools, and 17s. 6d. per week for those attending secondary schools, this last figure including pocket money for the child. The Department provides free medical and dental treatment and medicines, and also school books and stationery.

The Boys' Training Farm at Weraroa provides for boys of all ages—usually from fourteen years upwards—who require a period of reformative detention in an institution. There is a similar institution for girls at Burwood, and also a Girls' Hostel in Wellington.

An institution at Otekaike provides a special course of education for mentally-backward boys. The older lads, under capable supervision, are employed in farm-works garden and orchard work, and in the bootmaking and carpentering shops. Girls are provided for at the Special School at Richmond, and employed in housework and laundry-work, sewing, knitting, &c., and in outside occupations, such as gardening and flower-growing.

In order to meet the requirements of children who are retarded in their development owing to physical or other defects special classes have been established. These classes provide for children in certain public hospitals, for hard-of-hearing children and speech defectives, for under-nourished and physically defective children, and for children who are unable to benefit from ordinary class instruction.

Infant-life protection is carried out under the supervision of trained nurses who are fully qualified in the care and feeding of infants and young children. Very many infants dealt with under this system are illegitimate.

A residential school at Sumner exists for the teaching of deaf children, and special classes are established in the main centres for the education of hard-of-hearing children and for the correction of defective speech among children. Classes are also conducted for adults.

Provision is made for blind children and also for blind adults at the New Zealand Institute for the Blind at Auckland.

TEACHING PROFESSION.

TRAINING OF TEACHERS.

Recent extensions of the school system (admission of five-year-old children, with free education until nineteen), reduction in the size of classes, and the projected raising of the school-leaving age to fifteen have necessitated wider facilities for teacher training. Having been closed during the depression years, the training colleges in Wellington and Dunedin were reopened in 1936, so that with the Christchurch and Auckland Colleges there are now four centres of training available, as was the case before 1932. The special Training College Entrance Examination was abolished as from 1939, and the minimum academic qualification is now a pass in the University Entrance or School Certificate Examinations. Since 1937 a selection committee consisting of the Senior Inspector of Schools and two nominees of the local Education Board has been responsible for the selection in each district of students to be trained as teachers.

The allowance to students was raised in 1936 from £20 per annum (£30 in the case of third-year students) to £70, plus a boarding-allowance of £30 where a student is obliged to live away from home in order to attend training college. Government expenditure on the training colleges increased from £55,359 in 1935 to £212,322 in 1938.

In 1936 there were 1,178 students in training; at the end of 1938 there were 1,525. The normal course of training for “Division A” students is a period of two years at the training college, followed by a further period of one year as a probationary assistant attached to a public school. Students of “Division C” must be University graduates, and their course is for one year. Recently the practice has been revived of giving an extra year's training to selected students wishing to specialize in the teaching of certain subjects of the curriculum. In 1938 there were 56 “Division C” (graduate) students and 62 taking the extra year for purposes of specialization.

The following table gives details of students in training at the end of 1938:—

Training College.Division A.Division C.All Students.
M.F.M.F.M.F.Totals.
Auckland—       
  First year1011781010111188299
  Second year97136....97136233
  Specialist1212....121224
Wellington—       
  First year591142461118179
  Second year3672....3672108
  Specialist46....4610
Christchurch—       
  First year611109970119189
  Second year5986....5986145
  Specialist68....6814
Dunedin—       
  First year611238469127196
  Second year4272....4272114
  Specialist68....6814
    Totals54492529275739521,525

PUBLIC PRIMARY-SCHOOL TEACHERS.

Of the 6,363 teachers at the end of 1938, 87.6 per cent. held teachers' certificates. The average number of pupils for each class teacher was 28 (the average is affected by the inclusion of sole-charge schools, some of them with very small rolls). The table following relates to teachers as at 31st December, 1938, but excludes 158 teachers in intermediate schools and departments:—

Education District.Sole Teachers.Heads of Schools.Probationary Assistants.Assistant Teachers.Total Number of Teachers.Percentage of Male to Female Teachers.
M.F.M.F.M.F.M.F.
Auckland212783315468872429241,99674.6
Hawke's Bay5843631225284419546868.3
Taranaki3828651810133016236464.7
Wanganui524581614284721248566.7
Wellington41598621436010837979753.6
Nelson37463781121178826562.6
Canterbury90861371929831364351,01562.9
Otago8136821328437723259282.7
Southland662365714144414838198.4
    Totals6754449471582423777452,7756,36369.5

If schools with fewer than twenty-five pupils are omitted, the ratio of men teachers to women teachers in 1938 was 100 to 162. The proportion of men to women in charge of schools with not more than twenty-four pupils was 100 to 71. If all public schools are taken, it is found that the ratio of men teachers to women teachers in 1938 was 100 to 144.

Information as to the Teachers' Superannuation Fund will be found in the section of this book dealing with Pensions, Superannuation, &c.

POST-PRIMARY-SCHOOL TEACHERS.

The following table indicates the number of adult teachers employed in the post-primary schools mentioned. The principals are included except in the case of district high schools, the figures for which apply to assistants in the secondary department only.

Year.Secondary Schools.District High Schools.Technical High Schools.Combined Schools.Grand Totals.
Males.Females.Males.Females.Males.Females.Males.Females.
1,9343472641269825014758381,328
1,93534826812910025514958391,346
1,9363652891218426414858421,371
1,9373652891279327415159421,400
1,93835329214610228615477531,463

TEACHING AIDS.

BROADCASTING.

Regular broadcasting programmes for schools were initiated in 1931, the full cost being borne by the National Broadcasting Service. An increasingly varied series of talks is given weekly over the YA stations at Auckland, Wellington, Christchurch, and Dunedin. The growth of interest in the radio as an educational medium is reflected in the increasing number of schools (public and private) which listen-in to the special programmes (1,100 in 1939, as compared with some 600 in 1938) and in the number of pupils receiving programme booklets (61,927 on 1st March, 1939, as compared with 47,156 in 1938).

PUBLICATIONS.

An illustrated monthly paper, called the School Journal, is published by the Education Department for use as the chief reader in primary schools and intermediate schools and departments, and is supplied free to all schools, both public and private. Of the last issue of the School Journal for the year 1938 the number of copies printed was—Part I, 85,000; Part II, 73,000; Part III 69,000: total, 227,000.

A monthly Gazette, mainly for the information of teachers, is published by the Department. In addition to containing articles by leading educationists, it is a medium for the prompt dissemination of official information and for the advertisement of vacancies. Copies are distributed to educational authorities and to State schools throughout the Dominion.

VISUAL AIDS.

As a result of a Conference on Visual Education held in 1937, the use of visual aids, particularly the film-strip projector, is increasing in the schools. The Department of Education is concentrating on building up in the Education Board offices libraries of films and film-strips for free use in schools. The Visual Education Association in Auckland runs a circuit of silent films covering some fifty schools.

To assist schools to make the fullest use of the museums, an education officer was in 1938 attached jointly to the museum and the training college in each of the four centres. Half the salaries of these officers is paid by the Government and half by a grant from the Carnegie Corporation of New York, which has also provided funds for the preparation of museum boxes for circulation to schools where pupils cannot make regular visits to a museum.

Further art and music sets were made available by the Carnegie Corporation to schools and training colleges during 1938, and have assisted considerably in developing an appreciation of the arts.

HIGHER EDUCATION.

NEW ZEALAND UNIVERSITY.

Control of higher education in New Zealand is vested in the New Zealand University, founded by the New Zealand University Acts of 1870, 1874, and 1875.

The University was formerly an examining, not a teaching body, with four teaching institutions affiliated to it—the Auckland University College, founded in 1882; Victoria University College, founded in 1897 at Wellington; Canterbury University College, founded in 1873 at Christchurch; and Otago University, founded in 1869 at Dunedin. By the New Zealand University Amendment Act, 1926, the constitution of the University has been altered so that it now actually consists of the four University colleges. Each of the colleges, besides providing the usual University courses, specializes in certain directions: Otago University has medical and dental schools, a school of mining and metallurgical engineering, and a school of home science; Canterbury University College has a school of engineering (mechanical, electrical, and civil); Auckland University College has a school of architecture, a school of commerce, and a school of engineering up to and including the second professional examination; and Victoria University College specializes in law. There are also two agricultural colleges—viz., Massey and Canterbury—attached to the University (see page 199).

In 1930 a New Zealand University Amendment Act was passed to enable the New Zealand University to discharge its functions under the Law Practitioners Amendment Act. 1930. For this purpose a Council of Legal Education was established to make recommendations to the Academic Board of the University with respect to any matter relating to legal education. Further, the Senate of the University in making or altering statutes concerning legal education must first consider any recommendations made by the Academic Board or the Council of Legal Education.

In 1938 there were 5,134 students actually in attendance at the four University colleges and the two agricultural colleges. Of these, 382 were graduates, 3,849 undergraduates, and 903 unmatriculated students. In addition there were 573 students attached to the various University colleges, but exempt from lectures. Comparable figures for the last ten years are given in the following table:—

Year.Students attending Lectures.Exempt Students.Totals.
Males.Females.Males.Females.
1,9292,9081,2203861094,623
1,9302,8791,2845081304,801
1,9312,9731,2364881724,869
1,9322,9451,2045891744,912
1,9332,8921,0686312154,806
1,9342,9051,0056032084,721
1,9353,0191,0905521574,818
1,9363,2291,1484901004,967
1,9373,3451,117460885,010
1,9383,9001,2344601135,707

Professors attached to the various University colleges in 1938 numbered 71, of whom Auckland had 14; Victoria, 15; Canterbury, 15; Otago, 24; Massey, 2; Canterbury Agricultural, 1. In addition there was a considerably larger number of full-time lecturers, part-time lecturers, and assistants.

FREE UNIVERSITY EDUCATION.

Free University education was instituted in 1911 for all holders of University Scholarships (gained by examination) and bursaries (gained by accrediting). University Junior Scholarships and University National Scholarships are of the value of £25 per annum plus tuition fees, and are tenable for three years. In the case of holders living away from home a further sum of £35 per annum is allowed. The number of University Junior and National Scholarships awarded in 1938 was thirty. Taranaki Scholarships are of the annual value of £60, and the Senate may, at its discretion, extend the tenure from three to four years. The above scholarships are awarded on the results of the Entrance Scholarships Examination. There are also some thirty or forty local and privately endowed scholarships awarded on the results of the same examination.

Scholarships awarded during the degree course are the Senior University (£60 per annum), Sir George Grey (£50 per annum), and John Tinline Scholarships (£60 per annum). The various colleges have also private scholarships for which their own students may compete. The chief scholarships awarded at the end of the University course are the Rhodes Scholarships, the 1851 Exhibition Scholarship, the Medical Travelling Scholarship, the Engineering Travelling Scholarship, the Travelling Scholarship in Architecture, the Post-graduate Travelling Scholarships in Arts and in Science, the French Travelling Scholarship, the Law Travelling Scholarship, Shirtcliffe Scholarship, and the National Research Scholarships. All except the last-named are tenable abroad. The Research Scholarships are each of the value of £100 per annum.

So far, fifty-four Rhodes Scholarships have been granted, of which fifteen have been gained by students of Auckland University College, ten by students of Victoria University College, thirteen by students of Canterbury University College, fifteen by students of Otago University, and one by a student of Massey College.

The Science Research Scholarship offered annually by the Royal Commission for the Exhibition of 1851 has been awarded to thirty-six graduates, nine from Auckland University College, seven from Victoria University College, thirteen from Canterbury University College and eight from the University of Otago.

In 1937 new regulations were issued for University national bursaries and holders are now entitled to the payment of tuition fees up to £20 per annum. Furthermore, the higher leaving certificate has been reinstated as a qualification, and a number of boarding bursaries of £30 per annum are available for those who are obliged to live away from home to attend a University college. A bursary is tenable for a three (or possibly four) years' course at a University college or at a school of agriculture recognized by the University. The number of University national bursaries held in 1938 was 1,249. In order to assist qualified students to pursue special University courses, bursaries are available in agriculture, architecture, art, engineering, and domestic science. In 1938 the number of bursaries held was twenty-six in agriculture, twelve in engineering, two in architecture, and thirty-five in domestic science (tenable at Otago University). Fine arts bursaries of an annual value of £60, tenable at Canterbury College School of Art, were established in 1936, and there were twelve bursaries current in 1938.

From the table given below will be seen the number of students who received free University education during each of the last ten years:—

Year.Junior University, University National, and Taranaki Scholarships.Senior University Scholarships.University Bursaries.Training-college Studentships.Other.Totals.
* Including also educational bursaries.
1,92984211,161*7081092,083
1,93084191,162*645992,009
1,93192191,186558841,939
1,932102171,184493611,857
1,9339919749248761,191
1,93411021580 126837
1,93510821435258117939
1,936109182926691171,205
1,937105261,0936361612,021
1,938111171,2497001992,276

SCHOOL OF AGRICULTURE.

The New Zealand School of Agriculture consists of two agricultural colleges specializing in higher agricultural education—Massey Agricultural College near Palmerston North, and Canterbury Agricultural College, near Christchurch. Until 1937 the two colleges were separately governed, though both were attached to the University of New Zealand. Under an Act of that year they were co-ordinated as the New Zealand School of Agriculture in connection with the University of New Zealand. They are now governed by one Council, but continue to specialize in their respective spheres of work as separate institutions. The staff of Massey College consisted in 1938 of two professors, ten lecturers, and eight assistant lecturers, while that of Canterbury was made up of a professor, director, assistant director, and sixteen lecturers. The total number of students at Massey College in 1938 was 383 and at Canterbury 105.

Encouragement to the development of higher agricultural education is given through a Government statutory grant to the Council, amounting to £27,000 in 1938. In addition, a sum of £52,300 was made available in 1938 out of the Public Works Fund for additions and replacements to be undertaken at the colleges. Various research projects at the colleges have been aided by expert assistance and grants from the Department of Scientific and Industrial Research.

In addition, agricultural bursaries are awarded to qualified candidates to provide them with practical training for positions as teachers or instructors of agriculture. During 1938 four bursars were in attendance at Canterbury Agricultural College, fifteen at Massey College, three at Auckland University College, one at Victoria University College, and three at Otago University.

COUNCIL FOR EDUCATIONAL RESEARCH.

In 1933 the Carnegie Corporation of New York set up a committee to report on the proposal to found in New Zealand a Council for Educational Research. This committee called a conference of representative educationists to consider the proposal, and approached educational authorities for their co-operation. In view of the unanimous support given to the proposal, the committee recommended the foundation of the Council, and in November, 1933, the Carnegie Corporation appropriated a substantial grant for the purpose, payable in five yearly grants, beginning in 1933-34. During 1938 the Corporation extended the grant to cover a second five-year period, from 1940 to 1944.

The Council decided to devote the first five years very largely to a survey of the organization and administration of the New Zealand education system. Its publications to date include—

  1. Research Series.—Educational Research in New Zealand, a Bibliography of New Zealand Education (Mary Mules and A. G. Butchers); The University of New Zealand (J. C. Beaglehole); The Control of Education in New Zealand (Leicester Webb); Littledene—A New Zealand Rural Community (H. C. D. Somerset); The Intermediate Schools of New Zealand (C. E. Beeby); Types of Administration (I. L. Kandel); An Experiment in Self Government (L. J. Wild); The School Looks at Life (J. E. Strachan); Entrance to the University (W. Thomas and C. E. Beeby).

  2. Studies in Education.—The Education of the Adolescent in New Zealand (C. E. Beeby); Impressions of Education in New Zealand (I. L. Kandel); A School of Political Studies (J. C. Beaglehole); Science and the Community (Alexander Findlay); Social Attitudes in the New Zealand School Journal (D. R. Jenkins).

In addition to its activities as a research organization, the Council administers the finances of the Carnegie Museums' Trust Fund and acts as a clearing-house for information in educational matters.

The Council's activities are under the control of a permanent officer (the Director), who is assisted by a staff of four. There are local Institutes for Educational Research in Auckland, Wellington, Christchurch, and Dunedin.

ADULT EDUCATION.

COUNCIL OF ADULT EDUCATION.

The Council of Adult Education, consisting of the Director of Education, the Director of Broadcasting, two representatives of the Senate of the University of New Zealand, one representative of the Dominion Council of the Workers' Educational Association, and two persons appointed by the Minister of Education, was established under the Education Amendment Act of 1938. The purposes of the Council are—

  1. To co-ordinate the different activities of adult education and take any action it may consider desirable to further the interests of adult education:

  2. To recommend to the Minister of Education the amount of the annual grant for adult education to be paid to the University of New Zealand:

  3. To recommend to the Minister the allocation of the grant among such bodies or agencies engaged in adult education as the Council may approve:

  4. To receive annual reports from the University College Councils and from any other bodies to which grants for adult education are made.

Provision was made for the appointment of district advisory committees to facilitate the work of the Council. In 1938 an amount of £7,000 was made available to the Council for disbursement amongst agencies and organizations engaged in adult education.

WORKERS' EDUCATIONAL ASSOCIATION.

The Workers' Educational Association is the principal agency for adult education in New Zealand. It operates in conjunction with the University colleges in the four University districts, and on the administrative side consists of two parts—the District Council and the Tutorial Classes Committee. The former consists of representatives of affiliated bodies (such as trade-unions) and members of classes, and is responsible for organizing classes. The latter is composed of equal representation from the District Council and the University colleges, and is responsible for the maintenance of academic standards and the appointment of staff and class tutors.

The work of the Workers' Educational Association is carried on in the cities by means of tutorial classes, which cover a wide range of cultural subjects, such as economics, sociology, psychology, literature, social and economic history, international affairs, music, art, drama, &c. The usual practice is for the lecture to last an hour, followed by class discussion for an hour.

Of recent years the country work of the Workers' Educational Association has been greatly extended. The country work is carried on by means of duplicated lectures specially prepared as a basis for discussion among groups of interested people. By way of variation, boxes of material illustrative of the lecture (especially in the arts) are sent to the groups. These country groups are visited and assisted by travelling tutors. This method has enabled adult educational facilities to be carried to very remote parts of the country and to reach a large number of people. The result has been that country students now outnumber those attending tutorial classes in the cities.

The Workers' Educational Association is financed by Government grant, University grant, and donations from local bodies, trade-unions, and private individuals. The Government grants were restored in 1936 to the extent of £750 to each of the four University colleges and £500 to the Dominion Council of the Workers' Educational Association. For the year 1937-38 £6,500 was provided, of which £1,000 was earmarked for the cost of extending the benefits of the Workers' Educational Association to those living in isolated districts and in Public Works camps. Since the inauguration of the Council of Adult Education, Government grants have been made direct to the Council for disbursement at its discretion to adult-education agencies.

ASSOCIATION FOR COUNTRY EDUCATION.

The Association for Country Education was formed in 1935 by amalgamation of two organizations which since 1930 had been carrying on adult-education schemes in the country districts of Canterbury, Otago, and Southland—the Canterbury Adult Rural Library Service and the Home Science Extension Service. These services were financed by a five-year grant from the Carnegie Corporation and supervised by the University Councils of Canterbury College and Otago University respectively. The combined Association was inaugurated with a Carnegie grant under the authority of the New Zealand Carnegie Advisory Committee and the University Councils of Otago University and Canterbury University College with two advisors, an organizer, and a small tutorial staff.

The Association has continued and extended the activities of the Home Science Extension Service and, until 1937, that of the Canterbury Rural travelling library. Early in 1938 it was decided to donate the stock and equipment of the library to the newly formed national Country Library Service. Perhaps the most striking feature of the Association's work has been its drama courses. A full-time tutor spends eight to ten weeks in a district organizing drama groups and supervising the rehearsal of plays for local production. In home science some fourteen junior homemakers' clubs were active in housecraft work in 1938, and lectures and classes were given to country groups by tutors in dressmaking, homecraft, and diet.

COUNTRY LIBRARY SERVICE.

The inauguration of the Country Library Service on 30th May, 1938, marked an important step towards a planned system of rural library service for New Zealand.

Assistance to small country libraries had hitherto taken the form of money subsidies to be used for the purchase of books. The amount of the subsidy granted was based on the income of the library concerned, the total available vote, which ranged between £3,000 and £4,000, being divided among some three hundred libraries in localities with a population not exceeding 1,500. The subsidy was withdrawn in 1931. In 1934 the publication of “New Zealand Libraries: A Survey of Conditions and Suggestions for their Improvement,” by Messrs. R. Munn and J. Barr, drew attention to the backward state of library development in New Zealand, especially with regard to rural library service. In this connection the Munn-Barr report emphasized the need for a central organization which would purchase stocks of books and make them available to country libraries by means of periodical exchanges, ensuring a greater supply of books to each library and eliminating wasteful book-buying. Further, the report pointed out that the subscription method of financing public library services had been universally condemned in Great Britain, the United States, and other countries, and emphasized that ultimately public library services in New Zealand should be supported by money provided by the local authorities or the central government, with the intention that cultural, vocational, and recreational books should be freely available for home reading to all responsible persons regardless of their locality.

In 1937 the Minister of Education approved a plan for rural library service, and the sum of £3,000 was made available on the estimates for the year for the purpose of creating the organization necessary to put this plan into operation. The necessary preparation—involving the purchase of books, library equipment, and two book-vans, and the appointing of a staff—was undertaken, as well as the necessary field organization, and the service was duly commenced in May, 1938. For the year ending 31st March, 1940 the sum of £13,359 has been appropriated.

Books are made available to country districts in four ways:—

  1. To free public libraries maintained by Borough Councils or Town Boards in localities with a population of 2,500 or less. On condition that certain minimum standards of library service are maintained by such local authorities, and, further, on condition that the subscription basis for financing the library is abandoned, free loans of books to the extent of fifteen books per hundred of the local population are provided by the Country Library Service. These books are changed periodically from the travelling book-vans under the care of the field librarians, and help in library management is also given to each library.

  2. Through independent subscription libraries situated in county areas. To these libraries a service of books is available on a contract basis, the library receiving 50 books, changed periodically as in (a) at a charge of £4 per annum. A small library is thus able to place at little cost up to 150 fresh titles on its shelves each year.

  3. Through groups of libraries in isolated districts. A service of travelling book-hampers is available to groups that undertake to co-operate for the receipt, use, and regular dispatch of collections of books. The books are made up into collections at headquarters and are forwarded from one group to another by means of rail and transport services. The forwarding group pays freight. A small charge is made as in (b) for this service, 50 books being available to a group for £2 per annum.

  4. Through the post individuals may receive books of an informative or cultural nature. Requests for books not in stock are satisfied wherever possible by means of the inter-library loan scheme now adopted by the New Zealand Library Association. A stock of books is being systematically built up, based on requests covering a wide range of interests. This postal service is free, but the borrower pays return postage on books lent.

By 31st December, 1938, books were on loan in 216 localities throughout the country, service being given through 16 free public libraries, 170 small subscription libraries, and 24 groups of readers. The postal service to individual borrowers was also becoming more widely used.

Plans for the extension of the offer of free loans of books to County Councils as well as to Borough Councils and Town Boards are being drawn up for use early in 1940.

It is expected, also, that books for children through the libraries participating in the Service will be available early in 1940, when it is hoped to have four book-vans operating instead of two as in 1938-39.

COMMUNITY CENTRE.

In 1938 an experimental Community Centre was established at Feilding under the supervision of two experienced educationists specially appointed to the staff of Feilding Agricultural High School. They spend half a day each per week in class-teaching in order to maintain contact with the older pupils; the remainder of their time is spent at the Community Centre, a building in the town specially equipped to cater for adult education in the fullest sense.

Classes are conducted in drama, child-care, literature, art appreciation, physical welfare, and the like, and courses are also run in outlying areas. The centre serves not only as a meeting-place for existing adult-education organizations, but as a place where any individual can drop in for advice and guidance.

OBJECTIVES IN NEW ZEALAND EDUCATION.

In the 1939 report of the Minister of Education appears the following statement:—

"The Government's objective, broadly expressed, is that every person, whatever his level of academic ability, whether he be rich or poor, whether he live in town or country, has a right, as a citizen, to a free education of the kind for which he is best fitted, and to the fullest extent of his powers. So far is this from being a mere pious platitude that the full acceptance of the principle will involve the reorientation of the education system. The structure of the New Zealand school system as originally laid down (and, indeed, of practically all the school systems of the world) was based on the principle of selection. An elementary education in the three Rs was given to all the population, but, beyond that, schooling had to be either bought by the well-to-do, or won, through scholarships, by the specially brilliant. Under such a system post-primary education was a thing apart from primary education and tended to be verbal and academic in nature. A definite penalty was placed on the children of the poor, especially on those who lived outside the main centres of population.

“From the beginning of this century the rigour of this selective system has been progressively relaxed. New Zealand has moved far more rapidly in this respect than the countries of the Old World, and had, even before 1935, given a large measure of free education even at the higher levels. Yet the principle of selection for post-primary and higher education remained, and the present Government was the first to recognize explicitly that continued education is no longer a special privilege for the well-to-do or the academically able, but a right to be claimed by all who want it to the fullest extent that the State can provide. Important consequences follow from the acceptance of this principle. It is not enough to provide more places in schools of the older academic type that were devised originally for the education of the gifted few. Schools that are to cater for the whole population must offer courses that are as rich and varied as are the needs and abilities of the children who enter them: this means generous equipment, more and better-trained teachers, and some system of guidance to help pupils to select the schools and courses that will best cater for their abilities. It means also, if there is to be true equality of opportunity, that, by one method or another, the country child must be given access to the facilities from which he has always tended to be barred by the mere accident of location. Most important of all, perhaps, it means that the system of administrative control must be such that the whole school system is a unit within which there is free movement.”

Chapter 8. SECTION VIII.—JUSTICE.

CIVIL CASES.

The law relating to the jurisdiction of Magistrates and Justices of the Peace in civil matters was consolidated by the Magistrates' Courts Act, 1928. Under this statute the ordinary civil jurisdiction of a Magistrate is limited to claims not exceeding £300; or, where the parties agree in writing that the Court shall have jurisdiction, to claims not exceeding £500. Justices of the Peace may hear and decide certain civil cases when the sum in dispute does not exceed £20. The numbers of plaints entered and of cases tried, and the amounts sued for and for which judgment was recorded, in the lower Courts during the last ten years are shown in the following table:—

Year.Plaints entered.Cases tried.
Number.Total, Amount sued for.Number.Total Amount claimed.Total Amount for which Judgment entered.
 £ ££ 
192987,1831,431,25656,668911,667772,247
193096,7701,542,43463,1201,010,026879,839
193191,5951,544,60162,9451,047,511889,978
193275,2611,244,23652,886861,088762,171
193364,6811,065,49944,669766,503687,009
193457,957848,38940,883619,243536,367
193559,105871,41340,094588,844504,448
193654,085767,89737,911523,553440,828
193753,613767,57835,015473,848378,810
193861,351829,93540,327500,395423,528

Civil business cases, in respect of both number of plaints and amount involved, rose very sharply in 1921, and continued to rise almost uninterruptedly from then to 1931. From 1932 until 1937 the tendency was rapidly downward, but in 1938 the fall was checked and a substantial increase recorded.

The numbers of actions commenced, cases tried, and judgments entered, together with the total amount for which judgments were recorded, in the Supreme Court of New Zealand in its civil jurisdiction during the last decade were as follows:—

Year.Number of Actions commenced.Cases tried.Judgments recorded.
With Jury.Without Jury.Number.Amount.
     £
19291,44644410643207,399
19301,45464392659260,870
19311,48174453706311,400
19321,26370422562215,697
19331,14754418493148,119
193490050346364200,805
193593188303383148,155
1936934128284386176,636
1937887144282334137,714
1938775138127245137,916

INQUESTS.

The number of bodies on which inquests were held in 1938 was 2,035, including 156 Maoris. In 1,430 cases the bodies were of males, and in 605 of females.

Nature of Verdict.Males.Females,Totals.
Diseases and natural causes5894131,002
Accident646134780
Homicide538
Suicide15847205
Violent deaths of which nature (accident, homicide, suicide) unknown32840
    Totals1,4306052,035

Of the accidental deaths the most common causes are injuries by motor-vehicles and drowning. The verdicts show that in 1938 255 deaths, or 32.7 per cent. of the total accidental deaths, were due to injuries by motor-vehicles, while 156 deaths, or 20 per cent., were due to drowning.

The inquests on suicidal deaths for each of the last ten years have been—

Year.Inquests on Suicides.
Males.Females.Totals.
192918048228
193016335198
193119929228
193220050250
193316244206
193415035185
193511139150
193612830158
193710660166
193815847205

FIRE INQUESTS.

In case of fire causing the destruction of any building, ship, or merchandise, or any stack of grain, pulse, or hay, or any growing crop, a Coroner may hold an inquiry into the cause of such fire, the procedure being similar to that of inquests into causes of death. One inquest of this type was held during the year 1938, the verdict being inconclusive.

During the five years 1934-38, 9 fire inquests were held. In 2 cases the verdict was arson, in 2 cases accident, and in 5 cases there was insufficient evidence to determine the cause.

POLICE FORCE.

The Police Force in New Zealand is a national body maintained wholly by the General Government. As at present constituted, it was established under the provisions of the Police Force Act, 1886, which came into operation on 1st September of that year. Prior to that date police duty in New Zealand had been carried out by members of the Armed Constabulary, which was then disbanded, some of its members being transferred to the newly constituted Police Force and others to the Permanent Militia. The Police Force Act, 1886, consolidated in 1908, was revised and brought up to date by the Police Force Act, 1913, and the latter, with minor amendments in 1919 and 1924, is the statute under which the Force now functions.

ORGANIZATION AND DUTIES.

The Commissioner of Police, with headquarters at Wellington, has, subject to the directions of the Minister in Charge of the Police Department, the general superintendence and control of the Police Force. The Dominion is divided into fifteen districts, each under the charge of a Superintendent or Inspector of Police, who is responsible to the Commissioner for the maintenance of good order and the proper execution of police duty therein. Districts are divided into subdistricts under the charge of sergeants or constables, and cities and towns where regular beat duty is performed are divided into beats, patrolled by constables under the supervision of sergeants.

The principal duty of the Police Force as defined by the Police Force Act is “the preservation of peace and order, the prevention of crime, and the apprehension of offenders against the peace.” In addition to the enforcement of the criminal law and the provisions of the Police Offences Act, there are several statutes of a regulatory nature which the police are called upon to administer, wholly or partly, such as the Arms Act, Licensing Act, Gaming Act, Dangerous Drugs Act, Motor-vehicles Act, Pawnbrokers Act, Second-hand Dealers Act, &c. They also undertake inquiries and other duties on behalf of other Departments of the Government Service, principally the Pensions Department, Registrar-General's Office, Internal Affairs Department, and Education Department (Child Welfare Branch).

Police in country districts in many cases hold such additional appointments as Clerks and Bailiffs of Magistrates' Courts, Inspectors of Factories, Probation Officers, Inspectors of Sea-fishing, Kauri-gum Rangers, and collectors of Agricultural and Pastoral Statistics.

RECRUITING.

Recruits for the Police Force must be between the ages of twenty-one and thirty years, not less than 5 ft. 9 in. high, and have a normal chest measurement of not less than 38 in. They must have passed the Fifth Standard Examination under the Education Act or an examination of equal or higher grade. They must be of good moral character, smart, active, intelligent, and free from bodily complaint or infirmity. The selection of recruits is made by the Commissioner after exhaustive inquiries have been made into the character, antecedents, and qualifications of the applicants. Before appointment they undergo a course of training in the Training Depot, in which they are drilled and receive instructions in the duties they will be called upon to perform.

Appointments to vacancies in the higher ranks of the Force are made from those members of the next lower rank who have qualified by examination, efficiency, and seniority for such promotion.

Members who show an aptitude for detective duty are detailed for service in the Detective Branch, which is attached to each district headquarters and undertakes the investigation and detection of the more serious crimes.

STRENGTH OF FORCE.

On the 31st March, 1939, the number of members of the Police Force in New Zealand was 1,440 of all ranks, being an increase of 11 during the year. The total was made up as follows: 1 commissioner, 6 superintendents, 15 inspectors, 6 sub-inspectors, 34 senior sergeants, 114 sergeants, 1,107 constables, 66 temporary constables, 4 senior detectives, 31 detective-sergeants, and 56 detectives. There were also 15 police surgeons, 8 matrons, 3 district constables, and 1 Native constable.

The following table shows the number of stations and of police in each police district. Temporary constables are included, but not district or Native constables.

Police District.No. of Stations.No. of Police.
Whangarei1539
Auckland46320
Hamilton2584
Gisborne1642
Napier1966
New Plymouth1550
Wanganui2054
Palmerston North1757
Wellington30240
Nelson1238
Greymouth2147
Christchurch38169
Timaru1345
Dunedin36118
Invercargill2253

There were also 9 officers attached to headquarters, 1 on loan to the Cook Islands Administration, 1 to the Samoan Administration, and 6 on leave prior to retirement.

The proportion of police to population is 1 to every 1,129 persons, and the expenditure (exclusive of the cost of buildings) on the whole Police Force for the year ended the 31st March, 1939, was 7s. 5¾d. per head of population.

The following table shows the growth of the Police Force during the last ten years:—

Year ended 31st March,Officers.Non-commissioned Officers.Detectives.Constables.Totals.Police to Population (Including Maoris).Cost per Head of Population.
       s.d.
1,93022127549431,1461 to 1,29961
1,93125120659591,1691 to 1,2936
1,93225123659441,1571 to 1,31955
1,93324121679831,1951 to 1,2875
1,93423124729921,2111 to 1,2805
1,93528127749901,2191 to 1,28157
1,93626123771,0001,2261 to 1,2845
1,93725127911,0121,2551 to 1,26563
1,93826145931,1641,4281 to 1,12376
1,93927148911,1731,4391 to 1,1297

WOMEN POLICE.

By the Statutes Amendment Act, 1938, provision was made for the appointment of women police, it being enacted that the terms of the Police Force Act. 1913, shall apply to women appointees.

CRIMINAL CASES IN MAGISTRATES` COURTS.

Maoris are included in the statistics relating to Magistrates' Courts in the following pages, as well as in those for the Supreme Court and for Prisons. Separate figures relating to offences by Maoris are given towards the end of this section. Children's Court cases are excluded, however, and will be found under the later heading “Juvenile Offenders.”

Persons charged in Magistrates' Courts may be brought before the Court either on summons, or after arrest, according to the nature of the offence and to other circumstances. Of the total of 57,658 cases in 1938, 13,234 (males 12,601, females 633) were “arrest” and 44,424 (males 42,057, females 2,367) were “summons” cases.

The following table shows the number of criminal charges dealt with in Magistrates' Courts during each of the last ten years.

Year.Number.Per 1,000 of Mean Population.
Against Males.Against Females.Totals.Against Males.Against Females.Totals
192950,0732,64852,72166.653.6735.78
193051,9592,61454,57368.273.5736.55
193147,2212,35049,57161.193.1732.74
193247,4482,50649,95461.033.3432.71
193342,1072,36844,47553.773.1328.89
193440,8302,74843,57851.773.6028.09
193541,3462,63443,98052.103.4328.15
193644,5122,56347,07555.663.3029.88
193747,7412,84250,58359.143.6331.81
193854,6583,00057.65867.003.7935.88

[NOTE.—Figures for 1937 and earlier years in this and other Magistrates' Courts tables have been amended by the exclusion of Children's Courts cases.]

The next table shows the results in all cases heard during each of the last three years, and similar information concerning distinct cases for the year 1938—i.e., counting only the principal offence in cases where a person is charged simultaneously with two or more offences.

Result of Hearing.Total Cases.Distinct Cases.
1936.1937.1938.1938.
Dismissed or withdrawn for want of prosecution or of evidence4,0554,4154,5822,912
Dismissed on the merits2.0411,9842,0091,462
Admonished and discharged181424231
Committed for trial398498414255
Committed for sentence883918960320
Summarily convicted39,51742,72649,65141,573
Totals47,07550,58357,65846,553

The summary convictions for the year 1938 represent a rate of 30.90 per 1,000 of mean population. The figures for the last ten years are as follows:—

Year.Number.Per 1,000 of Mean Population.
192944,31130.07
193045,54430.50
193140,37426.66
193240,59126.58
193336,04323.41
193435,75223.04
193536,23023.19
193639,51725.09
193742.72626.87
193849,65130.90

The great bulk of the cases dealt with in New Zealand are in respect of comparatively trivial offences — drunkenness and offences against traffic regulations accounting for about half of the total convictions. An analysis of traffic offences is given later in this section.

A classification of convictions during the last five years according to principal offences and groups of offences is next given.

1934.1935.1936.1937.1933.
Offences against the person481482603581633
Offences against property (including forgery)4,1864,4584,1844,1914,384
Drunkenness (including issue of prohibition orders)4,5084,3185,7546,2587,049
Offensive conduct or language, obstruction, &c., of police, and vagrancy1,4081,3431,2091,1991,706
Breaches of traffic regulations, &c.13,77014,49015,54816,47323,206
Other offences against good order1,4341,4541,6561,7101,362
Breaches of Licensing Act2,6492,8343,2113,6393,358
Breaches of Destitute Persons Act2,2112,2412,4822,8383,003
Breaches of Impounding Act446561381503573
Breaches of Arms Act367383279273273
Breaches of Employment Promotion Act9316065611,221507
Unlicensed wireless sets1,0479329831,076903
Other offences2,3142,1282,6662,7642,694
    Totals35,75236,23039,51742,72649,651

In the preceding table offences are necessarily grouped, but in the case of convictions in 1938 certain individual offences are distinguished below.

I.—Person.
Common assault573
Attempted suicide53
Aggravated assault2
II.—Property.
Theft (not further defined)2,587
Fraud and false pretences872
Wilful damage, &c.445
Unlawful conversion of vehicle372
Receiving stolen property41
Unlawful conversion of property19
Horse, cattle, and sheep stealing4
Embezzlement30
III.—Forgery, etc.
Forgery, uttering, &c.5
IV.—Good Order.
Breaches of by-laws378
Gambling587
Vagrancy340
Sunday trading116
Cruelty to animals32

There were only 507 convictions during 1938 for breaches of the Employment Promotion Act, compared with 1,221 convictions during 1937. Of the number during the year 1938, 360 were for false declaration and 131 for failure to pay levy instalments.

PUNISHMENT ON SUMMARY CONVICTION.

A table showing punishments following summary convictions for the year 1938 is given.

Punishment.Offences against the Person.Offences against Property.*Offences against Good Order.Other Offences.Totals.
* Including forgery and offences against the currency.
Released under Offenders Probation Act318656033989
Convicted and discharged761,1352,0925893,892
Convicted and ordered to come up for sentence845902291491,052
Committed to Borstal institution, Salvation Army Home, &c.1935819171
Fined32883328,3907,41236,963
Imprisonment in lieu of fine32757152131,035
Peremptory imprisonment787824851,2732,618
Bound over316 10
Order made 101,2881,6232,921
Totals6334,38433,32311,31149,651

CRIMINAL CASES IN SUPREME COURT.

Criminal oases in the Supreme Court are of two classes—viz., those in which the accused person has pleaded guilty in the lower Court and has been committed to the Supreme Court for sentence, and those actually tried in the Supreme Court.

The following table gives a summary of criminal cases dealt with in the Supreme Court during each of the last five years. Maoris are included in this and following tables.

Year.Tried in Supreme Court.Sentences in Case of Committal for Sentence.Total Sentences.
Indictments and Informations.Convictions.
M.F.M.F.M.F.M.F.Totals.
(a) Total Cases.
19347893938425768361,152611,213
19357814033825775101,113351,148
1936502292841187941,163151,178
19376792634112940251,281371,318
1938670163421096371,305171,322
(b) Distinct Persons.
1934250151609318347812490
1935271171499307745616472
193620713139631434539462
19372441214883361548423507
1938260141578317647414488

Of the 274 distinct persons indicted during 1938, 165 were convicted and 90 acquitted. In the case of 16 persons no bill was returned or the prosecution otherwise not proceeded with, 2 persons were found insane, and one was awaiting trial at the end of the year.

The next table summarizes the offences of persons convicted or sentenced in the Supreme Court during the last five years:—

Year.Total Convictions or Sentences.Distinct Persons convicted or sentenced.
Offences against the Person.Offences against Property.Forgery and Offences against the Currency.Other OffencesTotals.Offences against the Person.Offences against Property.Forgery and Offences against the Currency.Other OffencesTotals.
1934215768191391,2131392844720490
193521680395341,1481432773517472
193628779674211,1781772521914462
1937270824168561,3181782693228507
193830090484341,3221862672213488

The following were the principal offences for which persons were convicted or sentenced in the Supreme Court during 1938:—

I.—PERSON.
Murder2
Attempted Murder1
Manslaughter6
Negligent driving causing death or bodily injury22
Wounding with intent2
Failing to stop motor-vehicle after accident involving injury12
Aggravated assault15
Assault with intent to rob8
Common assault5
Unnatural offences and attempts11
Incest10
Attempted rape9
Carnal knowledge and attempts36
Indecent assault18
Indecent assault on male16
Procuring abortion and attempts1
Bigamy7
II.—Property.
Robbery4
Burglary33
Breaking and entering by night26
Breaking and entering89
Horse, cattle, or sheep stealing8
Embezzlement20
Theft44
Receiving stolen property6
Fraud and false pretences27
Arson and attempts7
Other3
III.—Forgery, etc.
Forgery20
Forgery and uttering forged documents2
IV.—Other Offences.
Indecent, &c., conduct4
Obscene language1
Keeping a brothel1
Negligently driving motor-vehicle1
False declarations4
Intimidation1
Perjury1

Forty-four Maoris were included in the 488 distinct offenders sentenced in the Supreme Court in 1938, and 353 others (including 9 women) were born in New Zealand. In 35 cases the birthplace was England or Wales, in 13 Scotland, in 10 Ireland, and in 18 Australia.

SUPREME COURT.—OFFENCES AND PUNISHMENTS OF DISTINCT PERSONS, 1938.

Sentence.Offences against the Person.Offences against Property.Forgery and Offences against the Currency.Other Offences.Totals.
*Subsequently commuted to imprisonment for life.
Awaiting sentence..1....1
Ordered to come up for sentence423413
Discharged35....8
Released under Offenders Probation Act336873111
Fined1911122
Death2*......2*
Imprisonment or detention—     
  Imprisonment80120104214
  Imprisonment and reformative detention..3....3
  Imprisonment and declared habitual criminal63....9
  Reformative detention only35371174
  Detention in Borstal institution427....31
    Total persons sentenced1862672213488
Length of sentence of imprisonment or detention—     
  10 and under 15 years2......2
  7 and under 10 years11....2
  5 and under 7 years10......10
  3 and under 5 years3021....51
  2 and under 3 years1855..174
  1 and under 2 years21594..84
  6 months and under 1 year26365269
  Under 6 months17182239
    Totals, imprisonment or detention125190115331

Of the offenders, 51 were under twenty years of age, 133 between twenty and twenty-five, 85 between twenty-five and thirty, 115 between thirty and forty, 62 between forty and fifty, 27 between fifty and sixty, and 15 sixty or over.

COURT OF APPEAL.

Under the provisions of the Judicature Amendment Act, 1913, the Court of Appeal consists of two divisions, called the First Division and the Second Division, each division consisting of five Judges of the Supreme Court, who are appointed as members of either division by the Governor-General in Council on the recommendation of three Judges of the Supreme Court, including the Chief Justice. The same division does not exercise the jurisdiction of the Court of Appeal at two successive sittings, but exercises its jurisdiction separately, except that in cases of importance involving special difficulty the Chief Justice and one other Judge may recommend, for the approval of the Governor-General in Council, that a joint sitting of both divisions may be held. The Chief Justice or, in his absence, the senior Judge presides. The decision of the Court must be in accordance with the majority of the Judges present, but if the Judges present are equally divided in opinion the judgment, &c., appealed from is deemed to be affirmed.

Under an amendment of 1933, special sittings of the Court of Appeal may be held at times and places appointed by Order in Council. This authority may be exercised only on a certificate of not less than three Judges (of whom the Chief Justice shall be one) that it is not expedient to delay hearing the appeal or other proceeding. For a special sitting any three or more Judges may exercise the jurisdiction of the Court.

In addition to the ordinary appeals from the Supreme Court, certain other proceedings arising in inferior Courts may, on an order of the Supreme Court, be removed into the Court of Appeal for argument. All decisions of the Court of Appeal are final unless leave is granted to appeal to His Majesty in Council (i.e., the Privy Council).

In criminal cases questions of law may be reserved by the Supreme Court for the Court of Appeal, and upon a refusal by the Court to reserve any question the person aggrieved may move the Court of Appeal for leave to appeal. Any person aggrieved may also (after conviction) apply to the Court of Appeal for a new trial upon leave being granted by the Supreme Court. Any person has now the right to apply to the Court of Appeal against a sentence passed in the Supreme Court where such person has been convicted upon an indictment or sentenced for any crime on a plea of “Guilty.”

During the last five years 11 Crown criminal cases were brought before the Appeal Court, and in 4 instances convictions were affirmed. There wore 97 civil appeals, of which 52 were allowed, and also 44 cases removed to the Appeal Court, resulting in 35 judgments for plaintiff and 9 for defendants.

Particulars concerning applications during the last five years (1934 to 1938) for leave to appeal against sentences under the provisions of the Crimes Amendment Act, 1920, are: Applications filed, 188; granted, 40; refused, 148. In all cases in which leave to appeal was granted the sentence was varied as a result of the appeal.

PRISONS AND PRISONERS.

There are fourteen prisons and State reformatories and three Borstal institutions in New Zealand, as well as 23 minor prisons and police-gaols. In addition to these there are the police-stations which, under section 17 of the Statute Law Amendment Act, 1917, may be deemed to be prisons for any period (which must not exceed seven days) during which prisoners are detained there undergoing sentence.

On the 1st January, 1938, the various institutions had 835 persons under detention (males, 789; females, 46). During the year 4,301 were received (males, 4,138; females, 163) and 4,328 discharged or transferred (males, 4,150; females, 178). At the end of the year 808 (males, 777; females, 31) remained in confinement. The daily average number of persons in confinement during the year 1938 was 871 (males, 837; females, 34).

The 4,328 discharges during 1938 include 1,350 transfers of inmates to other prisons or to the police. Prisoners discharged on expiration of sentence numbered 2,173, 46 were released on bail, 367 were set free on the recommendation of the Prisons Board, and 158 released on special remission. Debtors discharged during the year numbered 128, and 24 lunatics were transferred to mental hospitals. The remaining 82 discharges represented persons who had been in prison on remand or awaiting trial, and notice of whose acquittal had been received.

The following table shows the number of persons in gaol on 31st December of each of the last ten years:—

At 31st December,Persons in Gaol.Proportion per 10,000 of Population.
Undergoing Sentence.On Remand and awaiting Trial, &c.Total.Undergoing Sentence.Total in Confinement.
19291,342531,3959.039.39
19301,523461,56910.1110.41
19311,614431,65710.6010.88
19321,522611,5839.9210.31
19331,410321,4429.119.32
19341,199371,2367.697.93
19351,112381,1507.087.33
1936915479625.776.07
1937790458354.935.21
1938777318084.804.99

In the following table persons in confinement at the end of each of the last five years are classified according to nature of sentence:—

Year.Hard Labour or Simple Imprisonment.Habitual Criminals.Detained for Reformative Purposes.Detained in Borstal Institution.On Remand, awaiting Trial, &c.Totals.
Under Three Months.Three Months and under One Year.One Year and over.
19346719042942278193371,236
19356814237254292184381,150
1936831472927517414447962
1937721312833312614545835
1938621082803414414931808

The total number of new receptions—counting each person once every time received—in the various institutions during the year 1938 was 4,301 (males, 4,138; females, 163), as compared with 3,966 (males, 3,815; females, 151) in 1937. Forty-five persons were in prison awaiting trial or sentence at the beginning of the year, thus bringing the gross total of receptions up to 4,346. If allowance be made for persons awaiting trial or sentence, or for debtors and lunatics received, transfers between institutions, multiple receptions, acquittals, &c., the residual figure represents the number of distinct prisoners received under sentence for criminal offences. The net total under this heading in 1938 was 2,224 (males. 2,157; females, 67), an increase of 233 as compared with the previous year. Of the total of 2,224, 252 (males, 243; females, 9) were Maoris.

The number of distinct persons received into prison under sentence of imprisonment during the last ten years, with the proportion per 10,000 of mean population, is given in the next table. Debtors and lunatics received into gaol have been omitted.

Year.Number.Per 10.000 of Population.
19292,59617.62
19302,86419.18
19313,20321.15
19323,40122.27
19332,73117.74
19342,37615.31
19352,15813.81
19361,79011.36
19371,99112.52
19382,22413.84

The following table shows the sexes and ages of distinct persons received into prison under sentence during the year 1938, and distinguishes between Maoris and others:—

Age, in Years.Excluding Maoris.Maoris.Including Maoris.
Males.Females.Totals.Males.Females.Totals.Males.Females.Totals.
Under 211143117482501625167
21 and under 2523362397547930810318
25 and under 30257726457..573147321
30 and under 352513254171182684272
35 and under 40257426122..222794283
40 and under 45213922281922110231
45 and under 501641017481917211183
50 and under 5515271595..51577164
55 and under 6013131342..21333136
60 and under 65833861..184387
65 and under 7039241......39241
70 and under 7513..13......13..13
75 80314......314
80 and over2..2......2..2
Not stated2..2......2..2
    Totals1,914581,97224392522,157672,224

Ages and offences of distinct persons received into prison under sentence during 1938 are summarized in the next table.

Age, in Years.Offences against the Person.Theft and other Offences against Property.Drunkenness.Vagrancy.Other Offences.Totals.
Sexual Offences.Assaults.Other.
Under 21891113..927167
21 and under 25111861421912110318
25 and under 30101541362611119321
30 and under 351314893306108272
35 and under 4010113823911127283
40 and under 45793513010121231
45 and under 5074146151199183
50 and under 554234020887164
55 and under 6043..2620974136
60 and under 6551..111375087
65 and over12..4934160
Not stated............22
    Totals808829744221979652,224

The final table of this category supplies statistics of ages and previous convictions of distinct persons received into prison under sentence during 1938.

Age, in Years.Number of Previous Convictions.Total previously convicted.Not previously convicted.Totals. Distinct Prisoners.*
One.Two.Three.Four.Over Four.
* Including 145 cases where no information was given as to previous convictions (if any).
Under 2143211242410456167
21 and under 255132201462179119318
25 and under 303634251310421285321
30 and under 35342019119017477272
35 and under 403416151211118875283
40 and under 4528151379816147231
45 and under 501814798813638183
50 and under 551913637811938164
55 and under 60146437510227136
60 and under 65665647701387
65 and over243335471060
Not stated........1112
Totals285181129858131,4935862,224

BORSTAL INSTITUTIONS.

Included among the 808 prisoners undergoing sentence at the 31st December, 1938, were 149 persons (136 males, 13 females) detained in Borstal institutions under the provisions of the Prevention of Crime (Borstal Institutions Establishment) Act, 1924. This Act, which is an adaptation of Part I of the Prevention of Crime Act, 1908, (Imperial), as amended by the Criminal Justice Administration Act, 1914, is designed to prevent crime, and provides for the detention of young offenders in a special class of reformative institution. An offender between the ages of fifteen and twenty-one years (twenty-three in certain cases), who would otherwise be liable to sentence of imprisonment by the Supreme Court or sentence of imprisonment of not less than one month by a Magistrate, may be made the subject of an order of detention of from two to five years by a Judge of the Supreme Court, and from one to three years by a Magistrate, without a conviction being recorded in the latter case. Inmates may be transferred from prisons, reformatory homes, State reformatory institutions, and institutions under the Child Welfare Act, 1925, to Borstal institutions, and from Borstal institutions to prisons. The Minister of Justice has power to release an offender undergoing detention on condition that he is placed under the supervision or authority of a probation officer, or of a society or person (to be specified) who may be willing to take charge of the case.

HABITUAL CRIMINALS AND REFORMATIVE DETENTION.

The following table shows the distinct persons received into prison during 1938, after having been sentenced to detention for reformative purposes or having been declared habitual criminals, classified according to sentences:—

Original Sentence.Sentenced to Reformative Detention for a Period ofDeclared Habitual Criminals.Totals.
Under Two Years.Two and under Five Years.Five Years and over.
Reformative detention only65492..116
Declared habitual criminals only..........
Hard labour—     
Under 1 year44....8
1 year and under 2 years41..27
2 years and under 3 years..........
3 years and under 5 years1....23
5 years and over......55
    Totals745429139

PRISONS BOARD.

For the purposes of the Crimes Amendment Act of 1910 there is constituted a Prisons Board, the members of which are appointed by the Governor-General in Council for a period of three years, and may be reappointed. As at present constituted, the Board consists of a Judge of the Supreme Court, as President, and six other members.

It is the duty of the Board to make inquiry from time to time as to whether there is reasonable cause for belief that any habitual criminal, habitual offender, or other person under sentence of imprisonment or reformative detention is sufficiently reformed to be released on probation or discharged, or for granting discharge to any person who has been released on probation; and to make recommendations as to the release or discharge of any habitual criminal, habitual offender, or other person under sentence of imprisonment or reformative detention, and as to the conditions which may be imposed on any such release or probation. The Board is required to take into consideration, at least once a year, the case of every habitual criminal, habitual offender, or person under sentence of reformative detention. Other classes of prisoners may not apply for and are not entitled to consideration until they have served at least half the sentence (or five years in the case of those sentenced to terms exceeding ten years), and no case is to be considered until six months after the date of reception of the prisoner into prison.

The following table shows the number of cases considered by the Board during each of the last five years:—

Year.Borstal Detention.Reformative Detention.Hard Labour.Habitual Criminals and Offenders.Habitual Criminals for Remission of Hard Labour.Probationers for Discharge from Probation or Variation of Terms.Totals.
Crimes Amendment Act.Offenders Probation Act.
19344184804006228241,394
193534548840776317231,359
193636747436783614111,322
19372832913156531218987
19382942553075421626954

Of the cases considered in 1938, recommendations were made for release on probation in 381 cases, and for discharge from prison or from probation in 44 cases. Twenty-two probationers under the Offenders Probation Act were ordered to be discharged, while one secured modification of the terms of his probation. In 27 cases petitions were declined, and two habitual criminals had remissions of their hard labour sentences. The remaining 499 cases were deferred.

PROBATION.

Legislation on this subject dates from 1886. Under the Offenders Probation Act of 1920 probation may be granted for “any offence punishable by imprisonment, whether on indictment or otherwise.” Formerly there were numerous important exceptions. The maximum period of probation was fixed in 1920 at five years.

The conditions of release on probation include the necessity for a person on probation to report to the Probation Officer on specified days not more than one month apart, and to notify his address and any change of address. The nature and place of his employment must be made known to and be approved of by the Probation Officer, and he must not commit any offence against the law. The Probation Officer may warn him not to associate with any particular person or class of persons.

A breach of the conditions of the probationary license renders the offender liable to imprisonment or fine, and in addition he may, in respect of the original offence, be either committed to prison or again released on probation.

The following figures are taken from successive returns prepared by the Chief Probation Officer:—

Year.Number admitted to Probation.
1929557
1930650
1931750
1932726
1933620
1934664
1935605
1936585
1937636
1938715

The following table gives the ages and terms of probation of offenders dealt with under the provisions of the Act during the year 1938:—

Age, in Years.6 Months or under.1 Year.18 Months.2 Years.3 Years.4 Years.5 Years.Totals.
Under 201168476201..186
20 and under 251887991311..237
25 and under 306462379....100
30 and under 408545357....109
40 and under 503172243....49
50 and under 601111101....24
60 and over..6..22....10
    Totals4728923275792..715

JUVENILE OFFENDERS.

Under the provisions of the Child Welfare Act, 1925, offences committed by juveniles are dealt with by Magistrates in special Courts. The Child Welfare Amendment Act. 1927, altered the definition of “child” to cover persons under seventeen years of age, instead of sixteen as formerly. Cases dealt with in Children's Courts are not now included in the statistics relating to Magistrates' Courts, and it is not the practice to enter a conviction against juvenile offenders.

The figures for Children's Court cases during each of the last five years are as follows:—

Result of Hearing.1934.1935.1936.1937.1938.
Dismissed or withdrawn for want of prosecution or evidence9077110156145
Dismissed on the merits83927110893
Admonished and discharged1,1641,3691,3481,9861,624
Committed for trial or sentence2..2..1
Released under Offenders Probation Act8276816
Ordered to come up for sentence122984558
Committed to care of Child Welfare Superintendent519585586637739
Placed under supervision of Child Welfare Officer1,0541,1351,4041,1871,453
Committed to an institution under Child Welfare Act7659914735
Committed to Borstal Institution, Salvation Army Home, &c.2125173167
Fined131173194284301
Whipped1124....
Order made146121211
    Totals3,1853,5793,8534,5014,543

The principal offences against the person in 1938 were indecent assault (33 cases), indecent assault on a male (23 cases), and common assault (22 cases). The figures for 1937 were 56, 1, and 22 respectively.

Theft was again the principal offence against property, 1,650 charges being dealt with in 1938, compared with 1,581 in the previous year. These figures do not include housebreaking and stealing, which was the offence in 507 cases (395 in 1937).

Wilful damage, trespass, &c., is also an important class of offence in juvenile cases, being responsible for 339 charges in 1938. In 273 cases the charge was unlawfully converting vehicle to own use.

In the “Other” offences the effect of the introduction of the Child Welfare Act, 1925, is very noticeable, the number of cases for 1938 (808) being over nine times that recorded for 1925 (88). Over 74 per cent. of the cases in this class were brought under the Child Welfare Act, the number of cases of children not under proper control or in indigent circumstances being 595, as against 454 in 1937. In connection with these charges orders were made for committal to the care of the Superintendent, Child Welfare Branch, or for supervision by a Child Welfare Officer in 489 cases, while in 15 cases the children concerned were committed to an institution under the Child Welfare Act.

Offences by juveniles are seldom of a very serious nature, and Magistrates frequently adopt the course of discharging the offender or of ordering him to come up for sentence when called upon. It is found that in very few cases does the future conduct of the offender render it necessary for him to be brought before the Magistrate again for sentence.

CHILDREN'S COURTS.—TOTAL CASES, 1938.

Result of Hearing.Class of Offence.
Against the Person.Against Property.*Against Good Order.Other.Totals.
* Including forgery and offences against the currency.
Dismissed or withdrawn for want of prosecution or evidence..662851145
Dismissed on the merits2033211993
Admonished and discharged321,0403851671,624
Committed for trial or sentence..1....1
Released on probation..142..16
Ordered to come up for sentence1503458
Committed to care of Child Welfare Superintendent33655366739
Placed under supervision of Child Welfare Officer281,216361731,453
Committed to an institution under Child Welfare Act317..1535
Committed to Borstal Institution, Salvation Army home, &c.1602467
Fined..252715301
Whipped     
Order made..7..411
    Total cases882,8947538084,543

It should be remembered that the figures given throughout this section relate to total charges brought against juveniles in Children's Courts. In a considerable number of instances several charges are preferred simultaneously against the one offender; consequently the number of distinct cases (excluding multiple charges) is much below that of total cases. Distinct cases during 1938 numbered 2,853, of which 2,501 were preferred against males and 352 against females.

Very few juvenile cases find their way to the Supreme Court, and, beyond the information disclosed by the Children's Courts returns as to committals for sentence or trial, no statistics of such cases in the higher Court are available. Statistics of ages of persons sentenced show, however, that no persons under seventeen years of age were sentenced in the Supreme Court during 1938.

Eight distinct persons (all being males) under seventeen years of age were received into Borstal institutions during 1938.

OFFENCES BY WOMEN.

Of the 49,631 summary convictions in Magistrates' Courts in 1938 only 2,624, or 5.28 per cent., were of females, the following being the commonest offences:—

Common assault18
Attempted suicide23
Theft381
Fraud and false pretences44
Wilful damage, &c.19
Drunkenness179
Negligently driving motor-vehicles235
Vagrancy39
Breaches of regulations for lighting of vehicles84
Non-registration, &c., of motor-vehicles135
Breaches of parking regulations325
Speeding, &c.92
Other minor traffic offences251
Application for prohibition order31
Offensive conduct or language34
Sunday trading24
Breaches of by-laws, &c.33
Breaches of Shops and Offices Act96
Unlicensed wireless sets171
Breaches of prohibition orders16
Other breaches of Licensing Act123
Allowing horses, cattle, &c., to wander65
Selling adulterated milk29
Charges under Destitute Persons Act32
Failing to clear noxious weeds13

In addition to the 2,624 summary convictions of women in Magistrates' Courts during 1938 there were 23 committals to the Supreme Court—13 for trial and 10 for sentence. The Supreme Court statistics show that 16 charges against females were dealt with during the year, resulting in 10 convictions, representing 8 different persons. In addition, 6 women were sentenced after committal for sentence in respect of 7 offences.

The number of distinct females received into prison under sentence during 1938 was 67, the principal offences of these being—vagrancy, 13; theft, 21; and failing to pay fine, 13. The actual number of receptions of female prisoners during the year was 163, this number including 17 Maoris, and the daily average number of women prisoners in gaol was 34. Two reformatories (at Addington and Point Halswell) house women prisoners only. There is also a Borstal institution at Point Halswell (Wellington) for women only.

OFFENCES BY MAORIS.

The number of summary convictions of Maoris brought before Magistrates' Courts for the last five years is shown in the following table:—

Year.Class of Offence.Percentage of Total Convictions in Magistrates' Courts.
Against the Person.Against Property.Against Good Order./Drunkenness.*Other.Other Offences.Totals.
* Excluding prohibition-order cases.
1934815181594693501,5774.18
1935555621954563841,6524.31
19361196533697504522,3435.59
19371006234949296672,8136.25
19381264745021,1176512,8705.78

The total number of Maoris convicted and sentenced in the Supreme Court during the last five years was 219. The 44 convictions or sentences during 1938 were made up as follows: 21 for offences against the person (including 9 for unlawful carnal knowledge), and 23 for property offences (including 14 for burglary and breaking and entering). Thirty-one of these were sent up from the Magistrates' Courts for sentence, the remaining 13 being tried and convicted in the Supreme Court.

The number of distinct Maoris received into prison under sentence during 1938 was 252 (including 9 women), as compared with 257 in 1937.

DRUNKENNESS.

The extent to which convictions for drunkenness swell the total of convictions is obvious from the information given earlier in this section. The number of convictions for drunkenness, including drunkenness with disorderly conduct, drunk in charge of vehicle or of horse, and habitual drunkenness, during 1938 totalled 5,746 (males, 5,567; females, 179). It is of interest to note that in 1895 the proportion of convictions for drunkenness per 1,000 of the mean population was 6.52, while in 1938 the proportion was 3.58.

The convictions for drunkenness in 1938 represent 11.21 per cent. of the total convictions during the year. In addition, there were 1,303 technical convictions in cases of applications for the issue of prohibition orders. Prohibition-order cases are not included in the following table, which shows the number of convictions for drunkenness recorded, and the proportion per 1,000 of the mean population of each sex, during the last five years:—

Year.Convictions for Drunkenness.Per 1,000 of Mean Population.
Males.Females.Totals.Males.Females.Totals.
19343,2911613,4524.170.212.23
19353,2491253,3744.100.162.16
19364,3831604,5435.480.212.88
19374,8751575,0326.040.203.16
19385,5671795,7468.822.263.58

Of the total convictions for drunkenness during 1938, 5,558 (5,380 males and 178 females) were arrest cases, while 188 (187 males and 1 female) were cases brought before the Magistrate by summons.

Repeated charges against the same person are included in the totals shown in the preceding table.

The total convictions for all offences in arrest cases during 1938 were 11,325, of which number 8,558 were distinct convictions—i.e., excluding multiple charges against the same person at the same time. Of the 2,767 multiple charges, 765 were heard in conjunction with charges of drunkenness, the principal associated offences being—

Offence.Number of Convictions.
Common assault45
Theft49
Wilful damage76
Indecent, riotous, or offensive con duct36
Obscene, threatening, or abusive language138
Casting offensive matter79
Assaulting, resisting, or obstructing police47
Vagrancy20
Breaches of regulations relating to motor-vehicles76
Breach of prohibition order125
Breaches of Licensing Act24

In addition, there were 130 cases where prohibition orders were issued against persons convicted at the same time for drunkenness.

Any person who has been three times convicted for drunkenness within the nine months immediately preceding any conviction for drunkenness may be declared an habitual drunkard, the number of such convictions during 1938 being 19 (all being males). A Magistrate may, in addition to or in lieu of a penalty, commit an habitual drunkard to any institution authorized by the Governor-General to receive and detain such persons for any period of not less than twelve months.

The sentences in the 5,746 convictions for drunkenness during the year were: Fined. 3,476; imprisonment in lieu of fine, 608; peremptory imprisonment, 239; committed to Salvation Army Home or other such institution, 43; convicted and discharged, 1,292; released under Offenders Probation Act, 14; other sentences, 74.

Statistics of the consumption of alcoholic liquors in the Dominion will be found in a later section of the Year-Book (Consumption of Commodities).

TRAFFIC OFFENCES.

In keeping with the enormous growth of motor traffic during recent years, there has been a huge increase in minor traffic offences, which constitute a high proportion of the cases dealt with in Magistrates' Courts. The number of cases and convictions during 1938 shows a considerable increase over the previous year, due to some extent to the vigorous campaign against unroadworthy vehicles and breaches of traffic regulations generally. With the improvement in economic conditions there has also been a further increase in the number of motor-vehicles licensed, those actually licensed on 31st December, 1938, numbering 293,171, an increase of 9.7 per cent. on the previous year's figure. On the other hand, cases and convictions for traffic offences show an increase of 38.42 per cent. over those for 1937.

The number of cases and convictions, and the number of convictions per 1,000 of mean population (including Maoris), for this class of offence are shown below:—

 1934.1035.1936.1937.1938.
Cases15,55016,28217,75919,00226,095
Convictions14,23815,06210,30017,39024,279
Convictions per 1,000 of mean population9.189.6410.3510.9415.11

The convictions for traffic offences in 1938 represented 48.90 per cent. of all convictions during the year.

The following table chows convictions for traffic offences during the last five years:—

Offence.1934.1935.1936.1937.1938.
Negligent driving causing death..........
Negligent driving causing bodily injury....1....
Failing to stop motor-vehicle after accident involving bodily injury......4..
Unlawfully converting vehicle to own use203237259325372
Drunk in charge of motor-vehicle253327477573685
Drunk in charge of other vehicle128151516
Excessive speed in motor-vehicle1,2681,3521,6941,5872,855
Negligent or dangerous driving of motor-vehicle2,4182,8013,5173,7124,523
Negligent or dangerous driving of other vehicle627918148164
Riding bicycle on footpath375361364400262
Breaches of regulations for the lighting of vehicles3,1523,3373,2422,4382,301
Offences relating to the registration. &c., of motor-vehicles4,4444,2294,2944,2654,317
Breaches of parking regulations1,3251,4951,3342,1613,547
Other traffic offences7268361,0851,7625,237
    Totals14,23815,06216,30017,39024,279

The following table shows the number of cases and the results of hearings for the various traffic offences or groups of offences heard in Magistrates' Courts during 1938:—

Offence.Total Cases.Dismissed, or Admonished and Discharged.Committed to Supreme Court.Convictions.Results of Convictions.
Fined.Convicted and Discharged.Other.
Negligent driving causing death521240........
Negligent driving causing bodily injury16412........
Failing to stop motor-vehicle after accident involving bodily injury1367........
Unlawfully converting vehicle to own use469395837255121196
Drunk in charge of motor-vehicle7556196855254156
Drunk in charge of other vehicle171..16151..
Excessive speed in motor-vehicle2,93378..2,8552,84942
Negligent or dangerous driving of motor-vehicle5,287740244,5234,490294
Negligent or dangerous driving of other vehicle17814..16415410..
Riding bicycle on footpath2686..2622575..
Breaches of regulations for the lighting of vehicles2,36665..2,3012,261382
Offences relating to the registration, &c., of motor-vehicles4,629312..4,3174,1201889
Breaches of parking regulations3,661114..3,5473,52027..
Other traffic offences5,45121135,2375,0282063
    Totals26.0951,66315324,27923.274633372

By far the greater proportion of the cases are for comparatively trivial offences, such as breaches of lighting regulations and breaches of regulations for the registration, &c., of motor-vehicles (including driving unlicensed cars, and driving without drivers' licenses). These cases result in a far greater proportion of convictions in Magistrates' Courts than the more serious class of traffic offences—viz., negligent driving causing death or bodily injury—which are usually committed to the Supreme Court for trial or sentence.

Dealing only with motor-vehicles, it is found that the total number of convictions for traffic offences during 1938 was 21,164 (which total excludes motor-vehicles without lights, &c., and unlawful conversions of motor-vehicles—separate figures not available), and of these 14,969 were in the North Island and 6,195 in the South. The number of motor-vehicles actually licensed on 31st December, 1938, was—North Island, 193,803; South Island, 99,368. The convictions were therefore: North Island 7.72 per cent., South Island 6.23 per cent., of the number of licensed vehicles.

In view of the increased interest in problems of road transport, the following table showing the number of convictions in Magistrates' Courts for traffic offences in relation to the number of licensed motor-vehicles and to the consumption of motor-spirit (an indication of road-usage) is of interest:—

Year.Drunk In Charge of Motor-vehicle.Other Traffic Offences.All Traffic Offences.
Number.Per 1,000 Motor-vehicles licensed at 31st December.Per 1,000,000 Gallons of Motor-spirit consumed.Number.Number.Per 1.000 Motor-vehicles licensed at 31st December.Per 1,000,000 Gallons of Motor-spirit consumed.
19294182.277.3916,34916,76791.0296.4
19304352.266.9217,71018,14594.4288.8
19314032.157.3014,73215,13580.9274.2
19323081.646.1815,29615,60483.0312.9
19332871.525.6013,84914,13674.8275.6
19342531.264.5214,17714,43071.9257.7
19353271.515.2114,97615,30370.6243.7
19364771.976.6216,21616,69369.0231.5
19375732.146.9817,24117,81466.7217.0
19386852.347.6923,59424,27982.8272.5

The number of convictions for drunkenness in charge of a motor-vehicle shows a steady increase, both absolutely and relatively to road-usage, over the last four years. On the other hand, the ratio of total offences to the number of vehicles in use and to the consumption of motor-spirit showed an improvement until 1938, when a more vigorous campaign against unroadworthy vehicles resulted in a greatly augmented total of convictions for this class of offence. For the year 1938 the number of convictions for failing to carry warrant of fitness, defective brakes, &c., was no less than 5,230, as compared with 1,729 for the previous year. Taking this fact into account, the present position compares quite favourably with that of previous years.

Road-safety campaigns and the stricter enforcement of traffic regulations must inevitably result, for the time being, in a greater number of convictions for traffic offences. In the long run, however, these measures may be expected to lead to a steady improvement in road behaviour and a keener sense of responsibility on the part of road users generally.

OFFENCES REPORTED TO THE POLICE.

So far all criminal statistics in this section relate to offenders who have been brought before the Courts, no account being taken of those cases where offences have been reported to the police but in which no arrest or summons resulted.

The following figures relating to offences reported are taken from the reports of the Police Department for the years 1934-38:—

Year.Number of Offences reported.Offences in which Arrests or Summonses resulted.
Number.Percentage of those reported.
193432,28629,42791.16
193533,16830,60192.26
193635,44833,05293.24
193738,62936,07893.40
193844,30841,61893.93

It will be seen that, in cases where a crime is definitely established as such and reported to the police, an arrest or summons usually follows. The proportion of arrests and summonses varies with the offence, however, and certain classes of offence might not come under the notice of the public at all but for the arrest or summons, while other classes of offence are obvious, but the offender is sometimes not apprehended. Examples of the former class are most of the sexual offences, while assaults and offences against property come within the latter.

The following table shows, in respect of some of the principal offences, the number of offences reported during the last four years, and the number of arrests and summonses which resulted.

Offences.1935.1936.1937.1938.
Reported.Resulting in Arrest or Summons.Reported.Resulting in Arrest or Summons.Reported.Resulting in Arrest or Summons.Reported.Resulting in Arrest or Summons.
Murder and attempts17121389876
Manslaughter55333355
Negligent driving causing death or injury3836676759587373
Attempted suicide7371949494949191
Assaults, wounding, &c.513499647616678660770752
Sexual offences338327335315364351277262
Robbery, breaking and entering, theft and receiving7,2255,4327,8945,9797,5375,5847,8415,987
Forgery, embezzlement and fraud1,4031,3219769181,2531,1721,024950
Arson and attempts3123191621161714

In the following table some of the more serious offences dealt with during 1938 are set out, with the progress of the cases from the reporting of the offences to their final disposal.

Offences.Number reported.Offences resulting in
Arrest or Summons.Committal for Trial.Summary Conviction.Dismissal.Conviction after Committal for Trial.
Murder766....5
Attempted murder      
Negligent driving causing death or injury7373624731
Manslaughter554..13
Attempted suicide9191..865 
Aggravated assaults, wounding, &c.4441335327
Common assault7287139647576
Sexual—      
Unnatural offence and attempts3231271327
Incest212120..117
Rape and attempts2019171113
Unlawful carnal knowledge and attempts3836292523
Indecent assault1029246341232
Indecent assault on a male6160486635
Robbery and stealing from the person3021172213
Burglary and breaking and entering1,20691642447121412
Embezzlement1121085746547
Theft (other, undefined and attempts)6,3934,8441744,508162142
Receiving stolen property98961376713
Fraud and false pretences878817727232267
Forgery, uttering, &c.1211086540359

Chapter 9. SECTION IX.—DEFENCE.

NEW ZEALAND MILITARY FORCES.

CONSTITUTION.

General.—The New Zealand Military Forces are raised, maintained, and organized under the provisions of the Defence Act, 1909, as amended by the Defence Amendment Acts of 1910, 1912, 1915, and 1931. They are divided into the Regular Force and the Territorial Force.

The Regular Force.—The Regular Force is maintained in order to provide commanders and staffs at the various headquarters and military establishments, adjutants, instructional staff, and instructional cadres for the Territorial Force, nucleus garrisons for the fixed defences, and maintenance and administrative staffs at ordnance depots. It is raised by voluntary enlistment, and corresponds to the Regular Army in Great Britain.

The Territorial Force.—The Territorial Force is maintained for the defence of New Zealand, and is so organized that on mobilization it will be capable of forming the field army and fortress troops required for that purpose. It is raised on the basis of voluntary service, and corresponds broadly to the Territorial Army in Great Britain.

LIABILITIES AND TERMS OF SERVICE.

Liability to Compulsory Service and Training.—The Defence Act, 1909, and amendments provide that all male inhabitants who have resided in New Zealand for six months and are British subjects are liable to be trained as follows:—

  1. From fourteen to seventeen years of age in the Senior Cadets:

  2. From eighteen to thirty-five years of age (or such less age as may be prescribed) in the Territorial Force; but any member of the Territorial Force who has been classified as efficient for three consecutive years may be posted to the Territorial Force Reserve.

  3. From the date of posting to the Territorial Force Reserve to forty years of ago in the Reserve.

Training in Peace.—Since 1st October, 1930, the compulsory provisions of the Defence Act have not been enforced; but, if the Government so directed, these could be brought into operation again without legislation.

Training in the Territorial Force and Cadets is now purely voluntary. Recruits for the Territorial Force voluntarily engage to serve for three years. Men may extend their service up to the age of thirty-two years, and W.O.s, N.C.O.s, and specially selected men may continue their service for a further period of three years.

The only Cadets trained are those, at secondary schools. Practically every secondary school has a Cadet unit.

Liability to Compulsory Service in War.—In time of war all male inhabitants between the ages of seventeen and fifty-five (with certain exceptions mentioned in the Act) are liable to serve in the Militia. The Militia, when embodied, becomes part of the Defence Forces. Both the Territorial Force and the Militia are liable to serve in any part of New Zealand, but cannot be compelled to serve outside it. Any Force raised for service overseas would be recruited on a voluntary basis.

Terms of Service.—(i) Regular Force: The engagement of personnel in the Regular Force is voluntary, as with the Regular Army in Great Britain. The original period of engagement is for eight years; but at the end of five years' service a soldier may be re-engaged (his engagement to terminate on his reaching the age of fifty-five years), or he may be transferred to the Reserve for the remainder of his original engagement of eight years. During his first five years' service any soldier who is not on active service may purchase his discharge, but in that case he will be enrolled in the Reserve, and be liable to be called up at any time during the remainder of his original engagement. Extension of service up to sixty years of age may be permitted, if necessary, to enable the soldier to qualify for pension, (ii) The Territorial Force: Service at present is for three years.

Application of the Army Act.— Members of the Regular Force are subject at all times to the Army Act, except where it is inconsistent with Defence Acts, while members of the Territorial Force are subject only when undergoing training or when on active service.

ESTABLISHMENTS.

The Regular Force.—On 1st June, 1939, the peace establishment of the Regular Force was 100 officers, 15 officer cadets, and 478 other ranks.

The Territorial Force.—The peace establishment of the Territorial Force on 1st June, 1939, was 1,158 officers and 14,739 other ranks. Under the provisions of the Defence Act, 1909, this may be increased up to a total of 30,000 all ranks.

The Territorial Force Reserve.—No establishment is laid down for the Territorial Force Reserve.

National Military Reserve.—No establishment is laid down for the National Military Reserve.

War and Peace Establishments.—War and peace establishments are based on British establishments as far as is practicable.

COMMAND AND ADMINISTRATION.

The Council of Defence is responsible for advising the Government on matters of policy and for co-ordinating the activities of the three services (Naval, Army, and Air).

The Council consists of—

  • The Prime Minister (Chairman):

  • The Minister of Finance:

  • The Minister of Defence:

  • Such other members as may be appointed by the Prime Minister:

  • Chief of the Naval Staff:

  • Chief of the General Staff:

  • Chief of the Air Staff:

  • The Secretary to the Treasury:

  • The Permanent Head of the Prime Minister's Department:

  • Secretary (an officer of the Regular Force).

The Minister of Defence controls and administers the three fighting services through the medium of the Department of Defence, which is divided for the purpose into—

  • The Naval Department:

  • The Army Department:

  • The Air Department.

The Army Board and Army Headquarters.—The Army Board is responsible for the command, training, and administration of the New Zealand Military Forces, and consists of—

  • The Minister of Defence (President):

  • The Chief of the General Staff (First Military Member):

  • The Adjutant and Quartermaster-General (Second Military Member):

  • The Army Secretary (Member).

Army Headquarters, which is the counterpart in New Zealand of the War Office, is organized as follows:—

  • The Branch of the General Staff:

  • The Branch of the Adjutant and Quartermaster-General:

  • The Finance Branch.

The Military Districts.—New Zealand is divided into three military districts (Northern, Central, and Southern), with headquarters at Auckland, Wellington, and Christchurch. Each military district is under the command of a Colonel of the Regular Force, who is provided with a suitable staff. Each military district is divided into four areas, and furnishes four battalions and a proportion of other troops. In a national emergency each area would provide additional units up to the extent of the man-power and equipment available. An officer of the Regular Force is in charge of each area, and is responsible for the inspection, training, and administration of both Territorial and Cadet units therein.

COMPOSITION AND ORGANISATION.

  1. The Regular Force.—The Regular Force consists of—

    • The New Zealand Staff Corps:

    • The New Zealand Permanent Staff:

    • The Royal New Zealand Artillery:

    • The New Zealand Permanent Army Service Corps:

    • The New Zealand Army Medical Corps:

    • The New Zealand Army Ordnance Corps:

    • The General Duty Section of the New Zealand Regular Force.

    [Note.—Officers of the New Zealand Staff Corps are liable to be posted for staff or instructional purposes to any arm of the service, and are trained accordingly.]

  2. The Territorial Force.—The peace establishment of the Territorial Force provides for the following :—

    1. Field Troops—M

      • Nine Mounted Rifles Regiments (six horsed, three motorized):

      • Ten Field Batteries (seven 18-pr., three 4.5 in. howitzers):

      • Four Medium Batteries (three 6 in. howitzers, one 60-pr.):

      • Two 3.7 in. Howitzer Batteries:

      • Three Field Companies, Engineers:

      • Three Signal Companies:

      • Nine Infantry Battalions:

      • Three Composite Companies, A.S.C.:

      • Three Field Ambulances.

    2. Fortress Troops—

      • Three Heavy Batteries:

      • Two Anti-aircraft Gun Sections:

      • Two Anti-aircraft Searchlight Sections:

      • Three Infantry Battalions.

      The above Force is so designed that in the event of a national emergency it will be capable of expanding to—

      • One Infantry Division;

      • One Mounted Rifles Brigade;

      • One Medium Artillery Brigade;

    plus the Fortress Troops shown in (ii) above.

  3. The Territorial Force Reserve.—The Territorial Force Reserve is composed of those who served efficiently for three years in the Territorial Force and are under the age of forty-one years.

  4. The National Military Reserve.—See later subheading.

TRAINING.

The Regular Force.—All ranks of the Regular Force are required to assist in the training of the Territorial Force, and provide in certain cases a permanent nucleus thereof. The officers of the Regular Force undergo the same examination for promotion, and candidates for the staff colleges the same entrance examinations, as British Regular officers.

In addition to specialist courses, refresher courses are held from time to time for the benefit of officers studying for their promotion examinations.

The Territorial Force.—The annual training prescribed for all units of the Territorial Force consists of—

  1. Annual training camp—Mounted Rifles and Heavy Batteries, ten days; other arms and services, six days:

  2. Out-of-camp training (at week-end bivouacs)—Mounted Rifles and Heavy Batteries, four days; other arms and services, eight days:

Attendance at a six days' course of instruction at the Army or a District School of Instruction is authorized in addition to the annual training prescribed.

There are obligatory courses in camp lasting one week for Majors, Captains, and Lieutenants who are preparing for their promotion examinations.

The Territorial Force Reserve.—Officers of the Territorial Force Reserve are liable to be called upon to attend a camp of instruction with their unit triennially, but these fficers have not been called up since 1930. Other ranks do no training at all.

MILITARY ESTABLISHMENTS.

The Army School of Instruction.—The Army School of Instruction at Trentham provides for refresher and specialist courses for officers and other ranks of the Regular Force, besides courses in tactics, staff duties, &c., for senior officers of the Territorial Force.

All recruits for the Regular Force receive their recruit training at the Army School.

District Schools of Instruction.,—Each military district has a training-school at which are held all courses essential for the military education of the junior officers of the Territorial Force. Courses in weapon training, drill, signalling, &c., for all ranks of the Territorial Force are also provided.

[Note.—There is no military college in New Zealand corresponding to the Royal Military Colleges at Sandhurst, Kingston, and Duntroon, but cadets are sent to the last mentioned (in Australia). These cadets, after completing their courses and receiving their commissions, are sent abroad for further training.]

OFFICERS TRAINING CORPS.

The only Officers Training Corps in New Zealand is the Otago University Medical Company, which consists of medical and dental students.

RIFLE CLUBS.

Rifle clubs exist for the purpose of encouraging individuals who are not members of the Naval, Military, or Air Forces, to learn to shoot. They are affiliated to, but do not form part of, the Territorial Force. All British subjects over the age of eighteen years are eligible to join. A free issue of 100 rounds of ammunition is made to all members who fire and qualify in the annual musketry course prescribed, and a further 100 rounds to those who qualify as marksmen. Other ammunition is provided at quarter-cost. On 1st June, 1939, there were 154 clubs with a membership of 5,589.

CADETS.

In order to facilitate administration, the Cadets are organized in battalions, but, except on ceremonial occasions, seldom work as such. The strength of the Cadets on 1st June, 1939, was 361 officers and 17,359 other ranks.

Since the suspension of compulsory military training only Cadets attending secondary schools are trained. The annual training approximates thirty drills of one and a half hours' duration, including a musketry course and a “barracks” lasting five days.

NATIONAL MILITARY RESERVE.

The National Military Reserve was formed in May, 1939, of men between the ages of twenty and fifty-five years inclusive. Enrolment is voluntary. The Reserve is divided into three classes as follows:—

Class 1.—Men of the ages of twenty to thirty-five inclusive who have served during peace-time for not less than two years in the New Zealand Territorial Army or any of the Military Forces of the Empire. These men are required—

  1. To bring the Territorial Army to war establishment on mobilization.

  2. To furnish reinforcements after mobilization.

Class 2.—Returned soldiers and ex-Regulars between thirty-five and fifty-five years. These men are required—

  1. To augment Fortress Troops at main ports.

  2. To provide garrisons at secondary ports.

  3. To protect vital points.

  4. To fill training and administrative appointments on mobilization.

  5. To provide a reserve to Class 1.

Class 3.—Men of thirty-three to fifty-five years inclusive with no previous training. These men are required:—

  1. As a reserve to Classes 1 and 2.

  2. To provide a General Reserve from which various units, such as Defence Works Construction Companies, &c., will be formed.

  3. For any other purpose for which the Government may require their services.

Men of Territorial age—i.e., between the ages of twenty and thirty-two years inclusive, who have not performed two years' military training (vide Class 1), and members of any Naval, Army, or Air Force unit or Reserve and members of the New Zealand Police Force, are not eligible to join the National Military Reserve.

EXPEDITIONARY FORCES.

New Zealand supplied ton contingents for service during the South African War, comprising a total of 6,500 officers and men.

Immediately the Great European War of 1914-18 broke out an Expeditionary Force was despatched to Western Samoa and occupied those islands, while a larger force in the form of a mixed brigade was despatched to Europe. The latter force was, however, landed in Egypt, and took part in the defence of the Suez Canal. It gave a good account of itself in the desperate campaign on Gallipoli, and after being withdrawn to Egypt was expanded into a Division and a Mounted Brigade. The Division then went to the western front, while the Mounted Brigade continued to operate against the Turks in Palestine. Both forces became famous for their military qualities, and took part in practically all the great actions of their respective theatres up to the Armistice.

A total of 98,950 troops left New Zealand for service with the New Zealand Expeditionary Forces, and, of these, 16,697 lost their lives on active service. In addition to the 98,950 of all ranks of the New Zealand Expeditionary Forces, 944 British Army Reservists, British Naval Reservists, and others left the Dominion to rejoin their units in the United Kingdom or in a theatre of war. It is also known that 3,370 (not included above) left New Zealand during the period of the war and joined units of the British Forces or the Expeditionary Forces of other Dominions.

On the Armistice being declared in November, 1918, New Zealand had 52,000 troops in the field, while 10,000 more were ready to embark or were under training.

The tremendous amount of transport work involved in the conveyance of these forces to Egypt, France, Britain, Gallipoli, and Samoa was carried out with extraordinary success, not one New Zealand transport having been lost while conveying troops.

The troops provided for foreign service represented nearly 10 per cent. of the total population of the Dominion in 1914, and over 40 per cent. of the male population between the ages of twenty and forty-five years. These percentages do not take into account New-Zealanders who served in the British or Australian Naval or Military Forces.

NAVAL DEFENCE.

HISTORICAL SUMMARY.

From the year 1887 to 1909 New Zealand's interest in Naval defence was expressed in a practical way by contributions to assist in maintaining an Imperial Naval Force in Australian and New Zealand waters. From 1887 the sum contributed amounted to £20,000 per annum. In 1903. it was raised to £40,000 per annum; and, in 1908, it was enacted that it should be increased to a sum of £100,000 per annum for ten years as from 12th May, 1909.

The proceedings of the Imperial Conference held in London in 1909 had the effect of fussing greater public interest on the Naval defence problem, with the result that New Zealand undertook to present the battle cruiser “New Zealand” to the Imperial Government. This vessel was commissioned in 1911. She served with the battle cruiser squadrons of the Grand Fleet throughout the war, and took part in the naval actions of Heligoland Bight, Dogger Bank, and Jutland.

In 1911, consequent on arrangements agreed upon at the Imperial Conference of 1909, the Imperial Parliament passed the Naval Discipline (Dominion Naval Forces) Act. This statute provided for the application of the Imperial Naval Discipline Acts to Naval Forces raised by any Dominion, with such modifications and adaptations as might be found necessary to conform to the law in the Dominion. In 1913 New Zealand decided to prepare a naval organization for the express purpose of manning ships to be employed in New Zealand waters. The Naval Defence Act of 1913 was passed to give effect to this decision. This Act empowered the Government to raise and maintain Naval Forces and to govern them by regulations issued under authority of Orders in Council. Transfers of ships and personnel as between the New Zealand Government, the Imperial Government, and other Dominion Governments were authorized. The Imperial Naval Discipline Act and the Admiralty Regulations were applied to the New Zealand Naval Forces, subject to any modifications necessitated by local conditions. The Act provided that whenever Great Britain is engaged in hostilities the Naval Forces of the Dominion pass automatically under the control and disposition of the Government of Great Britain. During periods of strained relations or emergency the Governor-General may by Proclamation place the Naval Forces under Imperial control.

In 1913 H.M.S. “Philomel” was detailed as a sea-going training-ship, while a Naval Adviser to the New Zealand Government was appointed. But war broke out in 1914 before any other executive action could be taken to give effect to the statute. H.M.S. “Philomel” was withdrawn for escort duty and for service in naval operations in the Red Sea and Persian Gulf; until, at the end of the war, she was presented by the Admiralty to the Government of New Zealand as a training-ship. Subsequently she became the nucleus of a Dominion Naval organization.

In the meantime, in 1917, the question of Naval Defence was reconsidered in London, but no effective decisions were taken beyond recognizing that the administration of all Naval Forces in the Empire should follow the same lines in matters of maintenance, armament, methods and principles of training, and organization. At the Imperial Conference held in 1919 the Dominion representatives lost no opportunity of impressing on the Government of Great Britain the importance of Naval defence to New Zealand. At the request of the Dominion representatives, Admiral of the Fleet Viscount (later Earl) Jellicoe, flying his flag on board H.M.S. “New Zealand,” visited the Dominion to report on matters affecting Naval defence. Having considered Lord Jellicoe's report, the Government decided to give effect to the Act of 1913. H.M.S. “Chatham” was lent by the Imperial Government in 1920 for service under the New Zealand Government, and the first batch of New Zealand recruits joined H.M.S. “Philomel” the following year.

The Naval Forces of the Dominion are administered by a Naval Board, consisting of the Minister of Defence as Chairman, a Captain (Royal Navy) as First Naval member, with the rank of Commodore, a Commander (Royal Navy) as Second Naval member, and a Paymaster-Commander (Royal Navy) as Naval Secretary and member with the rank of Paymaster-Captain.

The First Naval member holds office also as Chief of the Naval Staff, New Zealand. The Admiralty have vested in him the charge and direction of Imperial ships and Imperial Naval interests on the New Zealand station.

New Zealand, therefore, having followed a consistent attitude towards the problem of Naval defence, by a natural process of evolution departed from the policy of subsidies, and thereupon assumed responsibility for a definite share in the material organization of Naval defence. She undertook to maintain a sea-going Naval Force and a training-centre under her immediate control. It was provided by Order in Council dated 20th June, 1921, that the official designation of this Force should be “The New Zealand Division of the Royal Navy.” (The expression “New Zealand Naval Forces” is now used to denote the ships and personnel generally, and “New Zealand Squadron” to denote the sea-going ships.) Another step was taken in fulfilment of Naval obligations by an enactment passed in 1922 to authorize the formation of a Naval Reserve Force officered by and recruited from volunteers who do not follow the sea as a profession. This Naval Volunteer Force has headquarters at Wellington, Auckland, Christchurch, and Dunedin. It is under the general administration of the Nava J Board.

Parliament passed an Act in 1927 binding the Dominion Government to contribute to the cost of construction of the Imperial Naval Base at Singapore. This contribution took the form of an annual subsidy to provide for a total sum of £1,000,000. The last instalment of this sum was paid during the year ended 31st March, 1936. At the same time (in 1927) the Government announced that New Zealand would undertake responsibility for the maintenance of modern cruisers when the Singapore subsidy had lapsed.

THE NAVAL STATION.

The Naval Base of the Division is at Devonport, Auckland. The property in this base was vested in the Auckland Harbour Board, but certain important rights therein were exercised by the New Zealand Naval Board under the terms of two contracts entered into between the Admiralty and the Harbour Board in 1899 and 1903. These contracts gave full rights of use of the machinery and of the Calliope Dock. Certain sections of the area are reserved for Naval purposes. The contracts provided for a subsidy payment of £150,000 to the Harbour Board payable over thirty years in half-yearly instalments until 31st October, 1939. The liability for these annual subsidy payments was assumed by the New Zealand Government in 1921.

H.M.S. “Philomel,” whose engines have been removed, is now based at Devonport and acts as a depot ship and instructional establishment. Arrangements have been made for this vessel to be reconstructed to provide a comfortable and conveniently fitted-up accommodation-ship, and amenities will be provided in adjacent buildings for the development of the instructional establishment.

During 1924 and 1925 H.M.S. “Chatham” was relieved by H.M. ships “Dunedin” and “Diomede,” and the oil-tanker “Nucula” was hired from the Admiralty to attend them. Because of the progress made in the formation of the Volunteer Reserve, H.M.S. “Wakakura” (a mine-sweeping trawler) was purchased in 1926 for instructional work with the Volunteer Reserve Divisions.

The Imperial escort vessels, H.M. ships “Leith” and “Wellington” are also employed on the New Zealand Station. They are maintained by the Admiralty, but are under the command of the Chief of the Naval Staff, New Zealand.

In October, 1935, because of representations made to the New Zealand Government by Great Britain relating to the international situation consequent on the Italian invasion of Abyssinia, H.M.S. “Diomede” was placed under the control of the Imperial authorities for service on the East Indies Station. Having served for six months at Aden and in the Red Sea. the ship proceeded to England, where she paid off on 31st March and transferred her New Zealand crew to H.M.S. “Achilles.” This vessel was then commissioned for service in the New Zealand Division. H.M.S. “Leander” was commissioned on 29th April, 1937, and has replaced H.M.S. “Dunedin” in the New Zealand Division.

During the same year the Government approved of plans for the lengthening of the Calliope Dock to enable it to accommodate a cruiser of the “Achilles” class. A three-year plan (now completed) was inaugurated for the reconstruction and modernization of the Naval Base at Auckland, and negotiations were made with the Auckland Harbour Board for the purpose of drawing up a new contract to provide for the effective Naval control of the repair facilities to be installed. Under authority of the Naval Defence Amendment Act, 1936, the Crown has purchased the property of the Harbour Board surrounding the Calliope Dock at Devonport, and has entered into a deed of arrangement, dated 22nd December, 1936, with the Harbour Board as to the use of the dock and the provision of certain wharves and other services. The sum of £101,780 is payable under this agreement in three instalments in consideration of the transfer of the property, for outstanding liabilities, for subsidy payments under the Admiralty agreements now cancelled, and for certain wharfage and other works undertaken by the Harbour Board in connection with the reconstruction.

The Government also proclaimed part of a public domain at Kauri Point, in Birkenhead Borough, for use as a Naval Armament Depot, and inaugurated there a three-year programme (now completed) of developmental works. The ammunition and stores from Fort Takapuna have now been transferred to Kauri Point.

PROVISION OF PERSONNEL.

Officers.—Officers of the Imperial Service are lent from time to time to the New Zealand Government for service in the ships and establishments of the Division.

In 1939 the entry of New-Zealanders as officers in the Executive, Engineering, and Accountant Branches was inaugurated. Candidates enter as cadets, cadets (E), and Probationary Paymaster Sub-Lieutenants respectively, and must be between the following ages on the 31st December of the year of entry: Cadets, 17 years and 18 years 8 months; cadets (E), 17 and 19 years; Probationary Paymaster Sub-Lieutenants, 19 and 24 years.

Candidates must have passed the University Entrance Examination or an equivalent, and they must undergo medical and educational examinations for entry, as well as an interview before a Board. Candidates for entry as Probationary Paymaster Sub-Lieutenant who possess the degree of Bachelor of Laws or Commerce, or who have passed the Accountants' Professional Examination, are not required to undergo the educational examination. Artificer apprentices from the Naval Dockyard at Devonport are also eligible for consideration for entry as cadets (E).

All officers proceed immediately after entry to England for training in the Royal Navy, the cadets and cadets (E) for about three years, the Paymaster Sub-Lieutenants for six months, before being appointed to ships of the New Zealand Naval Forces.

All officers can rise to the rank of Commander and Captain in their respective branches.

The entry of New-Zealanders as medical officers is (1939) under consideration.

Vacancies for warrant officers are filled by the promotion of New-Zealand-recruited ratings when such ratings qualify for promotion.

The Admiralty make provision for the nomination of a limited number of New Zealand Naval cadets into R.N. College, Dartmouth, and of special-entry cadets to the training-cruiser H.M.S. “Vindictive”; candidates are required to pass medical and educational examinations. The nomination of cadets is made by His Excellency the Governor-General on the recommendation of the Director of the Education Department. The age qualification now ruling is—13 years 4 months to 13 years S months for R.N. College, Dartmouth; 17 to 18½ years for special-entry cadets.

These cadets are eligible for periods of “loan” service in the New Zealand Division as soon as they have passed the examinations for the rank of Lieutenant.

Arrangements were made in 1935 whereby a very limited number of ratings recruited in New Zealand for the Seamen, Signal, Wireless, and Engine-room Branches, who display exceptional ability and marked officer-like qualities, are eligible under Imperial Regulations for promotion to commissioned rank in the Imperial Navy. Officers so promoted are eligible for periods of service in the New Zealand Division from time to time.

The Admiralty Regulations also provide for the nomination of a limited number of qualified medical and dental practitioners for entry into the Medical and Dental Branches of the Imperial Service.

Ratings.—Recruiting of New Zealand boys and young men is open for all branches of the Service, provided they are medically fit, give proof of the required educational standard, and possess (where applicable) trade qualifications. The branches of the Service are—

  • Seamen:

  • Signal and Telegraphist:

  • Engine-room Artificer:

  • Stoker (outstanding Stoker ratings may be qualified as Mechanicians):

  • Electrical and Ordnance Artificers :

  • Shipwright:

  • Joiner, Blacksmith, Plumber, and Painter (in very limited numbers):

  • Sick Berth:

  • Writer and Supply:

  • Cooks and Stewards.

Advertisements are inserted in the press between January and March and in August of each year giving particulars of the numbers required. The recruiting of Seamen, Stokers, and Signal and Telegraphist ratings is in the hands of the Army Department. Recruiting for the remaining branches is effected by the Superintendent of Naval Training, H.M.S. “Philomel,” Auckland. A small pamphlet entitled “How to join the New Zealand Division of the Royal Navy” has been published and may be obtained on application to Navy Office, Wellington; District Defence Offices; and H.M.S. “Philomel.” All candidates are required to hold Sixth Standard certificates or to be capable of passing an educational test of equal standard.

The term of engagement in the Naval Service is for twelve years, or, if under the age of eighteen years, to serve until the age of thirty. Short-service ordinary seamen (six years in New Zealand Naval Forces and six years in Reserve, with an option of transferring to continuous service if recommended) are also entered.

All ratings are eligible for advancement to Leading, Petty Officer, and Chief Petty Officer rates in their respective branches, provided they satisfy the conditions provided for in the regulations.

On completion of the first engagement all ratings may re-engage for two more periods of five years' service provided they are recommended.

Provision is made for the qualification of ratings in technical work connected with Gunnery, Electricity, Torpedoes, Diving, Physical Training, Signals, and Wireless Telegraphy, &c., in the technical schools attached to Naval establishments in Australia and England.

Ratings may qualify for and be promoted to Warrant Officer rank when vacancies occur. Selected men in the Division may be transferred from time to time to the Imperial Fleet, for periods of not less than a year, to gain further experience.

On discharge from the permanent Naval Forces all ratings are required to enrol in the Royal Naval Reserve until they are forty years of age.

Ranks and Ratings borne.—On 31st March, 1939, the following numbers of New-Zealand-entered officers and ratings were borne on the active strength of the Division.

Officers7
Ratings672

Royal Naval Volunteer Reserves.—The Volunteer Reserves are appropriated to the four Divisional Headquarters at Auckland, Wellington, Christchurch, and Dunedin. Men enrol for a period of four years and may re-enrol for periods of two years up to twenty years' total service. They undergo annual training of seven or fourteen days in H.M. ships of the sea-going squadron or in H.M.S. “Wakakura.”

The strength of the Naval Reserve Forces at 31st March, 1939, was—

 Officers.Ratings.
Royal Naval Reserve14172
Royal Naval Volunteer Reserve78610

NEW ZEALAND AIR FORCE.

On 1st April, 1937, the administration of Service (and civil) aviation was provided for by the establishment of an Air Department. References to the Royal New Zealand Air Force are Included in the section on aviation and air transport (Section XV).

EXPENDITURE ON DEFENCE.

The following statement shows the expenditure on the various arms of the Defence Forces hi each of the last nine years:—

Year.Consolidated Fund.Public Works Fund.Totals.Per Head of Population.
Naval Forces.Military Forces.Air Force.*

* Including civil aviation.

† Including contributions to Singapore Naval Base.

 £££££s.d.
1930-31543,837277,79913,812835,4480112
1931-32444.674183,089..627,763083
1932-33462,094207,827..669,921089
1933-34497,384264,724..762,1080911
1934-35537,840321,563143,669..1,003,07201211
1935-36562,245378,181173,944..1,114,3700143
1936-37632,062427,635132,382..1,192,0790151
1937-38760,529529,632313,65298,2651,702,078114
1933-39835,331706,753557,205368,7202,468,0091108

Chapter 10. SECTION X.—EXTERNAL TRADE.

SUBSECTION A.—GENERAL.

TOTAL MERCHANDISE TRADE.

Data regarding the overseas trade of New Zealand are invested with a special significance in view of the Dominion's relatively high degree of dependence upon its external trade. According to figures compiled by the Secretariat of the League of Nations, New Zealand's total trade per caput is the highest in the world. Parenthetically, it may be observed, as a factor highly relevant in this connection, that New Zealand's overseas debt commitments are also upon a high scale.

In the official annual statistics of the trade of New Zealand the twelve-monthly period adopted is the calendar year. Summarized trade statistics for each of the last fifty calendar years are included in the Statistical Summary at the end of this volume. Monthly figures covering the principal items of export and import are published in the Monthly Abstract of Statistics, so that summarized figures are readily available for any twelve-monthly period. As the production year ends about June and the financial year at 31st March, it is desirable to record the trade for years ended 30th June and 31st March as well as for that ended 31st December.

The following table relates to merchandise only—i.e., it excludes specie, particulars of which will be found at the close of this subsection. Figures are given in New Zealand currency for the latest decennial periods. Up to the end of 1929 New Zealand currency and sterling were at virtual parity, but thenceforward New Zealand currency has been below sterling parity (vide section relating to Banking and Currency). Consequently figures converted to a sterling basis have been appended covering the years from 1930 onwards.

Year.Year ended 31st December.Year ended 31st March.Year ended 30th June.
Exports.Imports.Exports.Imports.Exports.Imports.
 £(N.Z.)£(N.Z.)£(N.Z.)£(N.Z.)£(N.Z.)£(N.Z.)
1,92954,930,06348,734,47256,526,24345,076,86556,110,65046,479,009
1,93044,940,51744,339,65448,411,81749,429,58446,969,21349,295,452
1,93134,950,69826.498,15139,527,00939,833,15736,943,77435,073,948
1,93235,609,91924,646,00633,942,61724,760,42134,668,40724,655,259
1,93341,005,91925,581,36637,510,16425,059,52037,470,65725,290,201
1,93447,342,84731,339,55246,042,57026,135,49649,141,91420,703,380
1,93546,538,38136,317,26744,918,18032,567,78542,953,69834,301,328
1,93656,751,94044,258,88649,675,99237,439,94453,659,96339,509,276
1,93766,713,37956,160,69560,234,51147,621,10464,621,47450,076,468
1,93858,376,28355,422,18965,007,94658,064,55961,919,91357,542,606
1,939....57,867,27954,408,44757,851,31250,499,607
 £(Stg.)£(Stg.)£(Stg.)£(Stg.)£(Stg.)£(Stg.)
1,93043,158,00042,481,00047,933,00049,085,00045,908,00048,448,000
1,93131,852,00024,157,00037,198,00037,656,00034,321,00032,873,000
1,93232,373,00022,406,00030,857,00022,509,00031,517,00022,414,000
1,93332,805,00020,465,00032,677,00022,049,00031,516,00021,613,000
1,93437,874,00025,071,00036,834,00020,908,00039,314,00021,363,000
1,93537,380,00029,170,00035,985,00026,082,00034,450,00027,495,000
1,93645,584,00035,549,00039,900,00030,072,00043,101,00031,734,000
1,93753,585,00045,109,00048,381,00038,250,00051,905,00040,222,000
1,93846,889,00044,516,00052,215,00046,638,00049,735,00046,219,000
1,939....46,415,00043,657,00046,349,00045,291,000

The total merchandise exports and imports are next given for each month from July, 1938, to June, 1939, and for the twelve-monthly period ending with each such month. By reason of the seasonal nature of the production of the principal commodities exported from the Dominion, approximately two-thirds of the exports are made during the latter half of the production year—i.e., the first six months of the calendar year. Imports are normally spread fairly evenly over the year.

Month.Exports.Imports.Excess of Exports.
New Zealand Currency.Sterling Equivalent.New Zealand Currency.Sterling Equivalent.On New Zealand Currency basis.On Sterling Basis.
* Excess of imports.
Monthly Totals.
1938.£(000)£(000)£(000)£(000)£(000)£(000)
July3,7833,0394,6103,704-827*-665*
August3,8233,0705,0634,066-1,240*-996*
September3,1842,5574,8213,872-1,637*-1,315*
October2,1651,7394,2703,430-2,105*-1,691*
November4,3863,5234,7833,842-397*-319*
December3,7282,9944,7653,827-1,037*-833*
1939.      
January6,2114,9694,7233,7791,4881,190
February6,1724,9384,7953,8361,3771,102
March7,6826,1454,3553,4843,3272,661
April4,9333,9463,7783,0221,155924
May6,6385,3105,3384,2701,3001,040
June5,1454,1165,1974,158-52*-42*
Twelve-monthly Totals.
1938.      
July60,87948,89957,31046,0323,5692,867
August60,24448,38956,36445,2733,8803,116
September59,52647,81255,78344,8053,7433,007
October58,78847,21955,42944,5213,3592,698
November59,06547,44255,26544,3903,8003,052
December58,37646,88955,42244,5162,9542,373
1939.      
January57,09545,83954,56143,8092,5342,030
February57,55046,18554,96044,1142,5902,071
March57,86746,41554,40843,6573,4592,758
April58,25346,71053,73143,1014,5223,609
May58,62046,98354,88544,0113,7352,972
June57,85146,34956,49945,2911,3521,058

TRADE PER HEAD.

Imports of merchandise per caput were highest in 1920 with a rate of £49 10s. 11d., the export record of £45 4s. having occurred in the previous year.

The next table shows the total merchandise trade, exports, and imports per head of the population. Values are expressed in terms of New Zealand currency.

Year.Exports.Imports.Total Trade.
 £s.d.£s.d.£s.d.
1,9194540258370123
1,9203770491011861711
1,92135233398681111
1,92232149261385985
1,92334119321306749
1,9243816535176741311
1,925391813717477155
1,926320635486752
1,92733140312564165
1,92838333016068193
1,929375733167071
1,93030202914059160
1,93123181710040118
1,932236516123977
1,93326128161244350
1,93430103204050143
1,93529159234115308
1,9363607281116426
1,9374119235657757
1,93836683491070166

INDEX NUMBERS OF VALUE AND VOLUME OF TRADE.

The table following facilitates appreciation of the movement of external trade in recent years, both in value and in physical volume. For notes regarding the construction of the index-numbers reference may be made to the Monthly Abstract of Statistics for December, 1933. Volume of exports and effect of price changes upon exports are dealt with at greater length in the subsection succeeding this.

Year.Value.Volume.
On Gold Basis.On Sterling Basis.On New Zealand Currency Basis.Exports.Imports.Total External Trade.
Exports.Imports.Exports.Imports.Exports.Imports.
1,926100100100100100100100100100
1,92710790107901079010896102
1,928123901239012390112100106
1,929122981229812298116114115
1,9309685968510089119106112
1,9316444704877531206993
1,9325232724579491346698
1,93349287241915115766109
1,934523184501056315183115
1,935493583591037315397124
1,93661431017112589160118138
1,937715511891147113160143151
1,938625310489129111151143147

VISIBLE BALANCE OF TRADE.

As a debtor country New Zealand has normally a substantial excess of exports over imports, imports having exceeded exports in only three (calendar) years since 1885—viz., in 1908, 1920, and 1926. The figures for the last twenty years—merchandise only—are as follows:—

Year.Visible Excess of Exports.
* Excess of Imports.
 £(N.Z.)£(Stg.)
1,91923,598,75823,598,758
1,920-15,148,487*-15,148,487*
1,9212,084,3382,084,338
1,9227,899,8757,899,875
1,9232,575,8102,575,810
1,9243,981,6203,981,620
1,9252,817,2902,817,290
1,926-4,542,839*-4,542,839*
1,9273,713,6883,713,688
1,92810,726,27910,726,279
1,9296,195,5916,195,591
1,930600,863677,000
1,9318,452,5477,695,000
1,93210,963,9139,967,000
1,93315,424,55312,340,000
1,93416,003,29512,803,000
1,93510,221,1148,210,000
1,93612,493,05410,035,000
1,93710,552,6848,476,000
1,9382,954,0942,373,000

It will be noticed that the balance for the year 1930 is greater on a sterling basis than on a New Zealand currency basis. The apparent anomaly is due to a combination of (1) successive movements in the exchange rate, and (2) the unequal distribution of exports over the year. This combination of factors affects the relationship between the sterling and New Zealand currency figures for other periods also.

The high figure of excess of imports in 1920 is a natural sequence of the much higher excess of exports in the previous year, combined with the filling of delayed orders which in many cases had been duplicated in the meantime. A substantial recovery from the low excess of exports recorded in 1930 is evident from the figures for the period 1931-37. A pronounced fall in experts was responsible for a low export excess in 1938.

The visible balance of trade — i.e., the excess of exports over imports or vice versa—is an essential record valuable for numerous purposes, but with very definite limitations.

In the first place, although this is not the most important factor, the trade statistics themselves contain inevitable errors. For instance, it is necessary in many instances to assess the value of exports where goods are not sold until arrival at their destination; again, in the case of imports, an arbitrary assumption is made to cover freight, insurance, and handling charges. While errors arising from such sources do not appreciably affect items or totals of exports or imports, they may conceivably cause significant errors in the visible balance of trade, since there is no guarantee that such errors will be of a compensatory nature. In particular, when a small visible balance emerges from a year's trading in commodities, a relatively small margin of error in the assessment of export or import values (or both) may make a quite significant error in the residual balance. The possible error arising from the necessity of pre-estimating the final realization in the case of certain exports is not likely to be of importance in years of relatively stable prices; but, in periods when world prices are changing rapidly, an appreciable margin of error may result from this cause in the assessment of the total of export valuations for a single year.

Furthermore, there are additional difficulties where trade with individual countries is concerned. The ultimate destination of goods exported is sometimes not known at the time of export. In particular, it is evident from the United Kingdom trade statistics that a considerable proportion of New Zealand's exports to continental countries is recorded in the New Zealand statistics among exports to the United Kingdom. Such produce may be sold on the United Kingdom markets to continental purchasers; while, again, goods may be diverted to continental markets after arrival in the United Kingdom.

Of much greater importance is the fact that the visible trade is not the only factor to be taken into account in considering the balance of payments between countries. Debt payments, capital investments and flow of capital, freight payments, tourist expenditure, and the like are vitally important factors which frequently reverse a credit visible balance of trade into a debit balance of payments. An estimate of New Zealand's balance of payments is given later in this subsection.

The partial disintegration of world trade, accompanied by currency difficulties, which has been such a marked feature of current economic trends, has intensified interest in the bi-lateral aspect of trade statistics as opposed to the multilateral aspect, which latter is the really significant indication of the external trading relations of a country. It is perhaps germane to the question of New Zealand's position to draw attention to the fact that an estimated aggregate credit balance (vide “Balance of Payments” immediately following—the estimates are admittedly imperfect) of about 15 millions sterling over the twenty years ended 31st March, 1938, has been accompanied by an increase of some 72 millions sterling in Government and local-authority debt domiciled abroad.

The following table shows for the year 1938 the amount of merchandise exports to, and imports from, each of the principal countries trading with the Dominion, the balance of trade in each case also being given. Exports are valued f.o.b. New Zealand ports, and imports at New Zealand import values—i.e., current domestic value in country of shipment plus 10 per cent. allowance for freight, &c. The trade balances therefore represent the differences between exports and imports, both at New Zealand ports. Since this is the accepted practice internationally in statistics of trade, it follows that New Zealand trade statistics will yield different results in respect of her trade with any given country than will be obtained from the trade statistics of that country, unless allowance be made for this practice.

Country.Exports.Imports (by Country of Shipment).Balance. (+ = excess of exports; - = excess of imports.)
*Not including Austria.
 £(N.Z.)£(N.Z.)£(N.Z.)4pD(Stg.)
United Kingdom48,897,99026,886,475+22,011,515+17,680,000
Canada1,127,1244,834,462-3,707,338-2,978,000
India137,281555,189-417,908-336,000
Ceylon362802,744-802,382-644,000
Union of South Africa19,35790,266-70,909-57,000
Australia2,189,4547,468,987-5,279,533-4,241,000
Fiji98,440142,163-43,723-35,000
Nauru Island4,775140,685-135,910-109,000
Other British countries248,100488,040-239,940-193,000
Totals, British countries52,722,88341,409,011+11,313,872+9,087,000
Germany*890,9761,003,660-112,684-90,000
France1,015,456198,857+816,599+656,000
Belgium303,078487,027-123,949-100,000
Italy6,578142,260-135,082-109,000
Sweden84,549375,113-290,564-233,000
Japan592,6891,197,225-604,536-486,000
Netherlands East Indies7,6682,159,740-2,152,072-1,728,000
United States of America1,421,6306,047,278-5,225,648-4,197,000
Other foreign countries989,2001,802,018-812,818-653,000
Totals, foreign countries5,371,82414,013,178-8,641,354-6,940,000
Ships' stores281,576..+281,576+226,000
Totals, all countries58,376,28355,422,189+2,954,094+2,373,000

The wide variations in the balance of commodity trade with individual countries merit special mention. It will be observed that a very substantial credit balance—£(N.Z.)22,011,515—resulted from trade in merchandise with the United Kingdom in 1938; whereas an adverse balance is shown in the case of all other British countries, amounting to £10,697,643 in the aggregate. A credit balance of £11,313,872 emerged from commodity trade with British countries as a whole, while trade with foreign countries resulted in an adverse balance of £8,641,354.

The credit balance with the United Kingdom is subject to some deduction on account of goods credited in New Zealand exports to the United Kingdom, but re-exported thence to European countries (see page 252). The assessment of the amount so involved is particularly difficult; but examination of relevant statistics suggests that the annual total in recent years averages not less than £(N.Z.)2,500,000. It will be realized, then, that in consequence of the United Kingdom's entrepôt trade in New Zealand produce the recorded adverse balance of £8,641,354 with foreign countries in 1938 is reduced to about £6,000,000, while the credit balance with the United Kingdom reduces from £22,011,515 to approximately £19,500,000.

New Zealand has a heavy adverse balance of trade in respect of invisible items, particularly in respect of her dealings with the United Kingdom. This subject is dealt with under the next heading.

BALANCE OF OVERSEAS PAYMENTS.

Bound up with the matter of the visible trade balance is the question of the balance of overseas payments. Sufficient data are not available for the presentation of an accurate statement on the subject, but an estimate has been attempted, and the summarized results for the twenty financial years ending with 1937-38 are here given, all figures being expressed in terms of sterling:—

Year ended 31st March,Inward Balance on Account of
Visible Merchandise Trade (as recorded).Visible Trade (Merchandise and Specie).Visible Trade, plus Interest on Public and Local Authorities' Debt.Visible Trade, Public and Local Authorities' Interest and Debt Movement.All Items other than Public and Local Authorities' Debt Movement.All Items including Public and Local Authorities' Debt Movement.
 £m.£m.£m.£m.£m.£m.
1,919+6.3+6.2+1.7+8.4-8.8-2.1
1,920+19.2+18.9+14.3+14.1+10.9+10.7
1,921-19.2-19.3-24.1-21.0-29.6-26.5
1,922+8.0+7.7+2.5+11.9+0.2+9.6
1,923+8.7+8.6+3.0+8.5+0.7+6.2
1,924+7.2+7.3+1.4+8.3-1.3+5.6
1,925+4.8+4.9-1.3+9.5-4.1+6.7
1,926-4.3-4.3-11.1-2.2-13.3-4.4
1,927-2.4-2.5-9.6-2.2-10.5-3.1
1,928+10.6+10.5+3.0+10.6+1.7+9.3
1,929+11.4+12.0+4.0+15.0+1.9+12.9
1,930-1.1-0.6-8.9-11.3-10.7-13.1
1,931-0.5-0.8-9.2-1.2-10.5-2.5
1,932+8.3+9.0+1.1+4.5+0.9+4.3
1,933+10.6+12.3+5.2+4.0+3.5+2.3
1,934+15.9+15.7+8.6+6.4+6.3+4.1
1,935+9.9+11.9+5.0+2.7+3.9+1.6
1,936+9.8+10.2+3.4+0.3+1.9-1.2
1,937+10.2+10.1+3.8-0.9+1.7-3.0
1,938+5.6+5.4-0.7-1.2-2.4-2.9
Aggregate of twenty years+119.0+123.2-7.9+64.2-57.6+14.5

The first four columns are based wholly on ascertained figures, which, by the way, relate to 90 per cent. of the total inward and outward payments. The balances shown in the fifth and sixth columns, however, are given only as the best possible with the data at present available, and the unrecorded investment of private New Zealand funds in overseas securities is not taken into account. The small net balance (£14.5m.) for all items over the twenty years, taken in conjunction with the factor just mentioned and the probability that London balances on New Zealand account were at 31st March, 1938, higher than at the corresponding date twenty years earlier, indicates that the balance for the period as a whole is not seriously in error, having regard to the magnitude of total inward and outward payments. This close coincidence, however, may be due in part to counterbalancing inaccuracies as between individual items or years.

As indicating the relative importance of trade, of debt increase, and interest payments of the Government and local authorities, and of other items, the following aggregates (in sterling) for the twenty years are given:—

 Inward or Credit Payments.Outward or Debit Payments.
Trade—£m.£m.
  Merchandise895.2776.2
  Specie7.83.6
Government and local-authority debt—  
  Increase72.1 
  Interest..131.1
Other items (largely estimated)74-0123.7
    Totals1,049 11,034.6

The figures for the last five years available are given in more detail in the next table. As indicated previously, arbitrary assessment has had to be resorted to in the case of certain items, notably interest, &c., on private debt and investments. All the amounts shown in the table are in terms of sterling.

Year ended 31st March,
1934.1935.1936.1937.1938.
Inward or credit items—£(000)£(000)£(000)£(000)£(000)
Merchandise exports (f.o.b.)36,83435,98539,90048,38152,215
Specie exports3732,939537111
Interest on inter-Governmental debts77664
Other interest and dividend receipts140161484650
Freights165197236272357
Passage-money253317400460475
Port receipts627652700700855
Funds of immigrants7281103151251
Expenditure by tourists5636447969171,115
Consular, &c., expenditure3030303035
Governmental sales of overseas long-term securities5835302005
Governmental receipts, n.e.i.273297248139167
    Total credit items39,34242,14543,03451,31355,530
Outward or debit items—     
Merchandise imports (as recorded)20,90826,08230,07238,25046,638
Additional allowance for freight, &c.490245......
Specie imports64790116960236
Reductions in Government and local authority debts2,2402,2933,0784,652533
Interest on Governmental debt6,0106,0425,8235,3585,330
Interest on local authority debt1,090936936914793
Interest, &c., on private debt and investments9001,0001,0001,0001,000
Funds of emigrants320368462428463
Tourist expenditure1,4141,9462,0333,0322,882
Consular, &c., expenditure6060606095
Governmental purchases of overseas long-term securities774........
Governmental expenditure, n.e.i.370713599603486
    Total debit items35,22340,58644,23254,35758,456

As mentioned previously, exports are valued f.o.b., New Zealand ports, while imports are counted at their value in the country of shipment, plus 10 per cent. to cover freight, insurance, &c. This 10-per-cent. allowance was usually on the conservative side, and estimated additional charges were allowed for on the debit side of the above statement. Investigation into the position in recent years led to the conclusion that the 10-per-cent. allowance was adequate to cover this item in 1935-36 and the two following years.

It may be desirable to explain that freight and other charges on exports—at the present time estimated to approximate £(stg.)6,000,000 annually (mostly earned by United Kingdom vessels)—do not enter into the balance of payments on the basis adopted, exports being shown f.o.b., or at their net value to New Zealand. Freight, &c., on imports in 1937-38 is estimated at £(stg.)4,240,000—i.e., 1/11 of £(stg.)46,638,000.

If the various items listed in the foregoing statement were all correct and the statement complete in all respects, the excess of inward or outward items should correspond to the net increase or decrease of overseas funds, information concerning which is available for the last three periods covered by the statement.

During the twelve months ended March, 1936, there was a decrease of £(stg.)967,000 in the total comprising overseas funds of the Reserve Bank, overseas funds of the trading banks on account of New Zealand business, and short-term Government holdings overseas. This agrees very closely with the outward excess of £(stg.)1,198,000 disclosed by the statement of overseas receipts and payments for that year.

For 1936-37, however, there was a big discrepancy, an outward excess of £(stg.)3,044,000 being accompanied by a fall of £(stg.)8,024,000 in overseas holdings of funds. Of the discrepancy of £5,000,000, £750,000 was accounted for by a change made during the year whereby—under the scheme of guaranteed prices of dairy produce—funds in respect of New Zealand butter and cheese are not credited until the produce is actually sold. Part of the balance is probably due to the investment of New Zealand funds in Australian securities during the year; but there is reason to believe that the bulk of the 1936-37 fall in London funds is accounted for by the repatriation, during that year, of overseas funds temporarily domiciled in New Zealand, a considerable volume of credits accruing on overseas account since the raising of the exchange-rate having been retained in New Zealand in the expectation of a fall in the rate. There is a smaller discrepancy in the same direction of £(stg.)2,625,000 in 1937-38, mainly due, it is believed, to the investment of New Zealand private funds in Australian and other British securities and to the repatriation of capital.

IMPORT AND EXPORT CONTROL.

The decline in overseas funds which commenced during 1936-37 is mentioned under the preceding heading, and reference to the section on Banking and Currency will show that—allowing for seasonal fluctuations—the decline continued steadily, until at 28th November, 1938, the net overseas funds of the Reserve Bank and the trading banks were under £(N.Z.)8,000,000.

With a view to conserving overseas funds, so as to ensure that overseas-debt services would be met and that sufficient funds would be available for essential imports, regulations—effective from 7th December, 1938, and known respectively as the Import Control Regulations 1938, and the Export Licenses Regulations 1938—were made by Orders in Council of 5th December, 1938.

The Import Control Regulations prohibit the importation of goods except in pursuance of a license under the regulations or of an exemption granted by the Minister. Under the Export Licenses Regulations, goods (with certain minor exceptions) may not be exported except under license.

Three classes of export licenses are provided for—viz., particular, general, and purchaser's. The particular license applies to an occasional shipment; the general license is issuable to exporters who make regular or frequent shipments; and the purchaser's license is for cases where goods have been purchased for export by means of credits made available from overseas. A condition of the issue of any export license is that the overseas credits arising from the sale of the goods (or used to finance their purchase) must be sold to a New Zealand bank in exchange for New Zealand currency.

From 7th December, 1938, also, the Minister of Finance has suspended the obligation of the Reserve Bank to give sterling in exchange for its bank-notes. This obligation was imposed by section 16 (1) of the Reserve Bank of New Zealand Act, 1933, which—as amended by section 8 of the Finance Act, 1934—reads as follows:—

“On presentation at the Head Office of the Reserve Bank in Wellington of notes of the Bank to any amount not less than one thousand pounds, it shall be the duty of the Bank, in accordance with this section, to give in exchange for such notes sterling for immediate delivery in London.”

These measures have had the effect of arresting the fall in the overseas funds, which at 30th October, 1939, amounted to £(N.Z.)8,756,251.

MOVEMENT OF SPECIE.

There is no Mint in New Zealand, while there is a fairly considerable production of gold bullion. Uncoined gold, therefore, ranks as au ordinary export of the Dominion, along with wool, frozen meat, and dairy-produce. In earlier days this export of gold was much more important than now, amounting in 1863 to 70 per cent. of the total exports, from which figure it shrank steadily to 6 per cent. in 1913. The proportion later fell to only about 1 per cent. but, as a combined effect of the falling-off in commodity values in terms of gold and of the consequential fillip given to the gold-mining industry and to the export of gold contained in old jewellery, &c., it has risen to 2 per cent. in the last few years.

A table is given showing imports and exports of specie during the last ten years. Exports in 1934 were easily a record, mainly due to gold shipments by the Reserve Bank; while imports in the same year were the second highest yet recorded, the high figure being ascribable to importations of silver coinage for the New Zealand currency. The values given represent the face value of the specie.

Year.Specie imported.Specie exported.Excess of Specie Imports (+) or Exports (-).
 £££
1,92963,505649,000-585,495
1,930363,087175+362,912
1,93156,155202,330-146,175
1,93255,3101,355,861-1,300,551
1,933424,704296,032+128,672
1,9341,242,0002,283,900-1,041,900
1,935381,821521,000-139,179
1,93636,60145,245-8,644
1,937318,5103,500+315,010
1,93831,27431,805-531

SUBSECTION B.—EXPORTS.

INTRODUCTORY.

In New Zealand the Department of H.M. Customs requires for every package exported a declared statement of the contents, value, and destination.

In all cases exports are valued “free on board at the port of shipment.” In many cases, however, the goods are not sold till arrival at their destination, and in such cases values must be assessed in New Zealand with reference to current prices. Exports of merchandise are valued in terms of New Zealand currency, which has been below sterling parity since the beginning of 1930 (vide section on Banking and Currency). The value of total exports, 1930-38, in sterling will be found in the preceding subsection.

The ultimate destination of the goods is distinguished as far as is practicable, but it is impossible to discover what proportion of the exports is intended for home consumption in the country of destination. In the trade records a distinction is made between exports of New Zealand produce and re-exports of imported goods.

CLASSIFICATION OF EXPORTS.

The total merchandise exports (i.e., excluding specie) during the last ten years are given in the following table, classified according to five broad divisions. A table showing specie exports and imports for the same period will be found at the close of the preceding subsection.

Year.Food, Drink, and Tobacco.Raw Materials and Articles mainly unmanufactured.Articles wholly or mainly manufactured.Miscellaneous.Bullion.Total Merchandise Exports.
 ££££££
1,92932,609,83619,766,7051,547,947485,863519,71254,930,063
1,93031,676,69310,835,1461,494,255345,618588,80544,940,517
1,93125,724,1997,255,7491,107,610254,031609,10934,950,698
1,93225,794,1127,269,9461,093,495239,7731,212,59335,609,919
1,93328,437,1909,784,9251,141,632261,8231,380,34941,005,919
1,93429,210,95615,294,0361,121,438323,0691,393,34847,342,847
1,93533,315,23210,141,6511,209,680357,5611,514,25746,538,381
1,93636,398,20417,214,5821,234,704443,7321,460,71856,751,940
1,93739,836,45923,642,1721,317,848429,5141,487,38666,713,379
1,93840,317,72415,055,8351,237,322425,4841,339,91858,376,283

The most important class is that for food, drink, and tobacco, which, in the case of exports from New Zealand, is composed almost wholly of foodstuffs, the principal items being butter, cheese, and frozen meat. Of the total exports during the five years 1934-38 this class accounted for 64.9 per cent. Next in order of magnitude is the raw-materials class (mainly wool, hides, skins, and tallow), which during the last five years constituted 29.5 per cent. of the total exports for that period. Manufactured goods do not figure very prominently in New Zealand's exports, and during the five years under review accounted for only 2.6 per cent., while bullion and the small miscellaneous class were responsible for the remaining 3 per cent.

In the following table exports of New Zealand produce—i.e., exclusive of specie and other re-exports—are classified under the main industries, according to a broad division, to illustrate the relative importance of the pastoral, agricultural, forestry, mining, and other industries as far as the export trade is concerned. It must be remembered that in a particular industry the home trade may be relatively more important than the external trade.

The table demonstrates the tendency of the Dominion to rely mainly upon the pastoral industry for her exports. The percentage supplied by this group was high in the late “nineties,” but after 1898 fell relatively, owing mainly to increased exports of agricultural and mining produce. From 1902 onwards, however, the percentage increased almost continuously, till in 1924 and 1925 it amounted to 94.2 per cent. of the total. The percentage dropped noticeably in the depression years, owing to the relatively greater fall in prices of pastoral products, particularly wool, but with the advent of improved prices progressive recovery was made during subsequent years, the record percentage of 94.4 being reached in 1937. Enhanced wool-prices were the dominant factor in the high total for that year. A sharp decline in wool-prices in the following season saw the declared value of wool exported during 1938 decrease by 36 per cent. as compared with 1937, and this was mainly responsible for the decrease of £8,248,069 in exports of pastoral produce.

PROPORTIONS OF EXPORTS SUPPLIED BY THE MAIN INDUSTRIES.

Year.Exports (New Zealand Produce).Percentage of Total Exports.
Pastoral.Agricultural.Forest.Mining.Other.Pastoral.Agricultural.Forest.Mining.Other.
 £££££Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
1,91948,611,240788,187698,8491,668,3141,537,79491.21.51.33.12.9
1,92041,560,176530,0561,262,8941,103,3441,135,82491.11.22.82.42.5
1,92140,698,867490,094884,279787,591754,62793.31.12.01.91.7
1,92238,182,793968,9441,066,054850,469630,88891.62.32.62.01.5
1,92342,128,295568,3561,080,326937,238657,69892.91.32.42.11.3
1,92448,944,828431,325937,178787,664819,83394.20.91.81.51.6
1,92551,370,479467,8971,000,453770,439911,76394.20.91.81.41.7
1,92640,763,348902,164820,947854,995997,72991.92.01.91.92.3
1,92744,207,037887,893725,047804,834946,42292.91.91.51.72.0
1,92851,509,520964,956626,696710,450848,74394.21.81.11.31.6
1,92950,780,1131,036,700717,088809,676832,43693.81.91.31.51.5
1,93041,368,145971,259503,170784,125582,70793.62.21.11.81.3
1,93132,112,634910,937311,656707,126276,89193.62.60.92.10.8
1,93232,102,2181,043,277321,9231,190,306318,66391.83.00.93.40.9
1,93337,102,5101,221,979318,8911,374,211391,16091.83.00.83.41.0
1,93443,336,9601,153,056411,5111,416,911452,85592.72.40.93.01.0
1,93542,569,666935,821448,6861,573,362524,19892.42.01.03.41.2
1,93652,671,9751,108,341366,3501,515,679601,46093.62.00.62.71.1
1,93762,533,5041,033,060358,6801,566,157716,65694.41.60.52.41.1
1,93854,285,4351,252,241285,6411,420,661556,64893.92.20.52.41.0

Included in the Statistical Summary near the end of this volume are figures showing the principal exports from New Zealand during the last fifty years. A more detailed list of commodities is covered by the five-years tables on pp. 257-261. A comparison of values between 1937 and 1938 gives the following results for fourteen principal commodities.

INCREASES OR DECREASES IN THE MAIN EXPORTS IN 1938.

Commodity (New Zealand Produce).Value.Amount ofPercentage.
1937.1938.Increase.Decrease.Increase.Decrease.
 ££££Per Cent.Per Cent.
Wool19,070,24012,185,483..6,884,757..36.1
Frozen meat14,689,61615,092,059402,443..2.7..
Butter16,986,47716,520,226..466,251..2.7
Seeds, grass and clover205,988233,37227,384..13.3..
Peas105,760125,75819,998..18.9..
Casein247,78298,030..149,752..60.4
Cheese5,371,8785,935,061563,183..10.5..
Dried and preserved milk364,676307,603..57,073..15.7
Sausage-casings760,264742,595..17,669..2.3
Apples452,335719,528267,193..59.1..
Tallow647,969524,775..123,194..19.0
Skins, hides, and pelts3,873,9842,383,055..1,490,929..38.5
Silver48,18438,873..9.311..19.3
Gold1,435,2161,296,839..138,377..9.6
Coal73,48673,477..9....
Kauri-gum151,589103,777..47,812..31.5
Phormium and tow130,71581,644..49,071..37.5
Timber200,855177,831..23,024..11.5

Agricultural exports showed an abnormal increase from 1899 to 1903, the period which covers the South African War, but their importance then steadily declined. Their lowest level (0.6 per cent. of total exports) was reached in 1916 and 1917. The higher levels recorded from 1926 onwards are attributable mainly to a considerable development in the export of apples, pears, peas, and, to a lesser extent, grass- and clover-seeds, tobacco, and food for animals (chaff, &c.). With the exception of wheat, importations of which are frequently necessary, New Zealand now normally produces sufficient cereal crops to supply home requirements, but only in exceptional years is there a surplus available for export. Forest products, though steady, show a relative downward tendency. Mining products have recorded a marked increase since 1931 due to the enhanced price of gold, which led to greater activity in gold-production and to the export of a large quantity of gold recovered from old jewellery, &c.

In the following table exports during 1938 are grouped in classes in accordance with the statistical classification which has been used for both exports and imports since 1914:—

No.Class.New Zealand Produce.Re-exports.
  ££
IFoodstuffs of animal origin (excluding live animals)39,199,0463,554
IIFoodstuffs of vegetable origin, and common salt1,022,6145,926
IIIBeverages (non-alcoholic), and substances used in making up the same1,32116,341
IVSpirits and alcoholic liquors4,6486,050
VTobacco and preparations thereof28,3703,101
VILive animals119,7122,551
VIIAnimal substances (mainly unmanufactured), not being foodstuffs14,574,8111,132
VIIIVegetable substances and non-manufactured fibres332,6032,698
IXaApparel51612,648
IXbTextiles6,96519,418
IXcManufactured fibres2,1579,336
XOils, fats, and waxes564,315186,202
XIPaints and varnishes5007,321
XIIStones and minerals used industrially186,419579
XIVaMetal (unmanufactured and partly manufactured) and ores1,362,7104,472
XIVbMetal manufactures other than machinery and machines19,88538,148
XVMachinery and machines49,73864,755
XVIaRubber and manufactures thereof (not including tires)92854
XVIbLeather and manufactures thereof (including substitutes)8,0532,639
XVIIaTimber177,831678
XVIIbWood, cane, and wicker manufactures1,504705
XVIIIEarthenware, china, glass, stoneware, cement, and cement materials1,0412,727
XIXaPaper1711,575
XIXbStationery16,0359,332
XXJewellery, timepieces, and fancy-goods37922,588
XXIOptical, surgical, and scientific instruments78143,626
XXIIaDrugs, chemicals, and druggists' wares26,2068,268
XXIIbManures25,922167
XXIIIaVehicles669,106
XXIIIbMiscellaneous36,59989,160
 Parcels-post29,616...
     Totals, merchandise57,800,626575,657
XIIISpecie (face value)..31,805

Exports during 1938 (including specie and re-exports) are now grouped according to a classification adopted by the British Board of Trade for the compilation of Empire trade statistics. Exports to British and foreign countries are distinguished.

Commodity (including Re-exports).United Kingdom.Other British Countries.United States of America.Other Foreign Countries.Ships' Stores.Totals.

* Not including bunker coal, £61,171.

† Not including bunker oil, £177,281.

‡ Face value.

 ££££££
Grain71,76048,3671,4016,804..128,332
Milled products..293....11304
Fish2,004171,6796021,205661176,151
Meat (including poultry and game)15,218,94468,42610,30132,53157715,330,779
Butter, cheese, and eggs21,919,380296,15717,504235,83018322,469,054
Fruits (fresh and dried)529,60554,422..188,399340772,766
Preserved fruit and vegetables, fruit-pulp, jams, &c.332454..749041,764
Live animals for food      
Sugar..12,883..1,6491,52816,060
Tea913,951..3501,79816,108
Alcoholic beverages17080629148,70710,599
Tobacco24,203369..346,86531,471
Coal*..275..12,307..12,582
Ores, concentrates, and scrap15,3338,862..2,257..26,452
Iron and steel—      
Pig, ingots, &c.      
Bar, rod, plate, sheet, &c.15,3504055774..16,534
Other manufactures of iron and steel5,28427,5032254163,81237,240
Agricultural implements and machinery6413,336790125..4,892
Electrical machinery and equipment6,55114,2603,08343289825,224
Other machinery12,81266,3123,6201,44119284,377
Motor-vehicles and parts (excluding motor-bicycles)3,9873,50627861..7,832
Other metals and metal manufactures3,5882,2372921,3003867,803
Raw cotton      
Flax, hemp, and raw jute (including tow)36,89035,1841,1228,451..81,647
Wool, raw7,911,2961,204,098168,2122,901,877..12,185,483
Yarns and thread279465..209..953
Cotton piece-goods1,5312,352..1,173195,075
Woollen piece-goods1,430576..754502,810
Other piece-goods1,0202,913531,786..5,772
Other textiles77919,3048351,9371,01523,870
Apparel2,4975,1512721,3684589,746
Footwear1,2831,5371190..2,921
Chemicals, drugs, dyes, &c.52,79927,23039961,0093,226144,663
Fertilizers19,9131,7243,2541,198..26,089
Earthenware (including bricks, glass, &c.)2901,66412389002,904
Wood, timber, and manufactures thereof (including wood-pulp)2,560176,74721808582180,718
Newsprint3650433....573
Paper and cardboard1,5657,83011851462710,654
Seeds and nuts for expressing oil therefrom..309......309
Animal and vegetable oils, fats, greases, and waxes403,640128,8262,75928,91236564,173
Oil—Petroleum, crude, and refined801,74982075,9497,993
Hides, skins, and furs, undressed715,812414,186896,496357,248..2,383,742
Leather and manufactures thereof (excluding clothing and footwear)6,5852,4501,210447..10,692
Other891,488671,945308,71295,257241,8522,209,254
Total47,881,7263,501,2471,421,6303,950,186281,57657,036,365
Gold and silver bullion1,016,264323,646..8..1,339,918
Total exports (excluding specie)48,897,9903,824,8931,421,6303,950,194281,57658,376,283
Specie7,90523,900......31,805

The principal items of export may again be regrouped under six definite classes, as in the table following, which shows in more detail the commodities exported from the Dominion. Only New Zealand produce is included.

Practically all the main commodities are homogeneous articles, and it is therefore possible to give the quantities exported. For some purposes, especially for comparisons between recent and more remote years, quantities are preferable to values, since the latter are affected by price-variations.

Commodity (New Zealand Produce).1934.1935.1936.1937.1938.
* Ounces of the fineness of 20 carats and upwards.
The mine—     
  Coal (ton)40,36146,14644,87249,08955,711
  Gold* (oz.)162,490171,283168,073172,317152,487
  Scheelite (cwt.)6661,040815735971
  Silver (oz.)359,540389,263478,859439,554370,084
  Other minerals (ton)1416175
The fisheries—     
  Fish (cwt.)56,20555,46361,76448,70347,223
  Oysters (doz.)204,020197,117136,19570,45833,709
  Whale-oil (gal.)35,00171,60171,76085,35043,605
The forest—     
  Fungus (cwt.)1,2781,418938925613
  Kauri-gum (ton)3,2092,8723,2373,2262,304
  Timber, sawn and hewn (sup. ft.)34,530,27939,585,19826,993,33417,656,98814,534,253
Pastoral products—     
  Bacon and hams (cwt.)962738987808842
  Meats, salted and smoked ”4,8737256641,025633
  Butter ”2,614,5192,789,2982,796,1452,976,0852,614,549
  Casein ”57,74465,16780,83677,53441,403
  Cheese ”1,984,4961,727,5521,658,2061,647,1601,61,523
  Eggs in shell (doz.)384,545354,580327,79874,686227,741
  Hides and skins (number)1,852,6821,999,4731,899,4361,814,9591,864,862
  Honey (lb.)669,6831,155,247739,956318,6211,853,215
  Live-stock—     
    Cattle (number)34257288653
    Horses ”336257211229192
    Sheep ”1,8442,2835,54514,09411,329
    Pigs ”3733472521
  Preserved meats (cwt.)44,34874,25686,00669,84951,435
  Meat extract (lb.)134,029167,848303,812176,176106,965
  Frozen meats (cwt.)4,969,4475,206,5145,119,8045,410,9125,373,308
  Milk, dried and preserved (lb.)21,562,45020,783,08023,742,35424,713,64820,536,678
  Sugar of milk ”466,222289,016527,520632,464421,956
  Sausage-casings (cwt.)40,39737,42939,42937,89536,460
  Rabbit-skins (number)13,035,01513,536,74516,928,93112,050,43810,268,012
  Sheep-skins and pelts ”12,193,69714,170,54412,627,58112,503,04114,177,592
  Tallow (cwt.)553,240505,540521,900518,800592,260
  Lard ”11,9726,03714,75517,35219,574
  Wool (lb.)255,796,783222,661,403314,409,402282,339,148271,283,233
Agricultural products—     
  Bran and sharps (ton)1,35316582521
  Flour ”7128238
  Apples (lb.)57,763,64337,790,81944,806,17336,081,75757,642,927
  Pears ”4,915,0703,786,7904,530,3401,638,6364,203,995
  Grain and pulse—     
    Barley (cental)48..131..
    Beans ”4178591,5461,375522
    Peas ”258,560147,110167,407144,096166,036
    Oats ”21,84638,1912,3252,2642,102
    Wheat ”7712514610028
  Hops (cwt.)3,0693,9934,2651,2093,464
  Oatmeal (ton)......12
  Onions ”1,891144880389264
  Potatoes ”9471,0725,80320,8284,885
  Seeds (grass and clover) (cwt.)48,75171,64979,98258,10745,484
  Tobacco, unmanufactured (lb.)4266,419185,40575,222240,971
Miscellaneous—     
  Ale, stout, and cider (gal.)31,63635,70127,51917,33719,548
  Phormium fibre and tow (ton)4,1734,1016,2095,4734,519
  Sugar (cwt.)17,19122,26635,76326,97820,472
  Metals, scrap (not precious) ”243,961171,590238,534274,94515,866
  Pumice—sand and stone (ton)2,4913,3003,2422,9313,046
  Blood and blood-and-bone manures ”2,9422,1571,6642,7301,695

The values of these principal exports are tabulated in the following table, and the statement is rendered complete by the addition of a miscellaneous group and the provision of totals for each group and for all combined:—

Commodity (New Zealand Produce).1934.1935.1936.1937.1938.
* As recorded. Certain exports of ambergris by parcels-post are not available, but are included in “Miscellaneous—Other” at the end of the table.
The mine—£££££
  Coal51,48962,91055,21773,48673,477
  Gold1,320,6901,441,7901,398,6561,435,2161,296,839
  Scheelite4,4627,0835,5638,41210,804
  Silver39,37261,31755,74548,18438,873
  Other minerals898262498859668
    Totals1,416,9111,573,3621,515,6791,566,1571,420,661
The fisheries—     
  Fish134,311140,683172,713172,756175,083
  Oysters1,8602,1361,441990532
  Whalebone     
  Whale-oil2,5405,0515,4928,1675,328
  Ambergris*968441,383..209
  Other456740648533349
    Totals140,135148,654181,677182,446181,501
The forest—     
  Fungus3,7885,1945,0206,0743,981
  Kauri-gum86,91779,11396,161151,589103,777
  Timber, sawn and hewn320,527364,359265,108200,855177,831
  Other279206116252
    Totals411,511448,686366,350358,680285,641
Pastoral products—     
  Bacon and hams4,9454,5305,8325,5075,761
  Meats, salted and smoked9,6111,5241,4242,5211,543
  Butter10,042,77613,616,74015,317,57616,986,47716,520,226
  Casein149,666161,700194,907247,78298,030
  Cheese4,694,4594,376,5125,122,4385,371,8785,935,061
  Eggs in shell18,34122,37822,6644,83313,708
  Hides and skins697,014740,274847,7251,070,837766,341
  Honey19,73133,78820,8449,09950,330
Live-stock—     
    Cattle9,3162,9501,5503,0111,390
    Horses58,77464,03768,08275,15454,896
    Sheep28,52918,05840,10869,89162,289
    Pigs144178182159410
    Other1,262140108275275
  Milk, dried and preserved407,708370,890405,801364,676307,603
  Sugar of milk12,0467,75414,15817,29211,346
  Preserved meats127,090216,417273,201258,055231,369
  Meat extract12,13211,97317,32510,5836,482
  Frozen meats11,886,95512,768,96813,239,41414,689,61615,092,059
  Sausage-casings625,394787,261641,393760,264742,595
  Rabbit-skins257,585395,090763,961557,132247,390
  Sheep skins and pelts1,250,0911,275,4641,703,1302,246,0151,369,324
  Tallow480,354630,638628,310647,969524,775
  Lard5,3079,65030,23234,73226,852
  Wool12,516,4257,097,13313,293,70619,070,24012,185,483
  Other21,30520,44317,90429,50629,897
    Totals43,336,96042,634,49052,671,97562,533,50454,285,435
Agricultural products—     
  Bran and pollard4,146599591,1438
  Food for animals7,16416,84221,77935,00736,279
  Flour8812532533171
Fruits—     
    Apples716,780467,422552,902452,335719,528
    Pears62,06057,07155,52820,40452,568
    Other210144164194113
Grain and pulse—     
    Barley27..74..
    Beans6371,8844,1292,1071,026
    Peas138,261107,173121,743105,760125,758
    Oats7,30011,2201,1701,2731,214
    Wheat3966735817
    Other4..1168171
  Hops21,80927,35928,4848,34721,093
  Oatmeal..9152845
  Onions10,9701,2006,3233,9902,295
  Potatoes5,3178,49031,316172,18020,451
  Seeds (grass and clover)166,511215,738249,861205,988233,372
  Seeds (various)7,6998,66510,58510,0687,242
  Tobacco146,64218,4957,52724,096
  Other4,0205,2855,1656,0466,794
    Totals1,153,056935,8211,108,3411,033,0601,252,241
Commodity (New Zealand Produce).1934.1935.1936.1937.1938.
Miscellaneous (including manufactures)—£££££
  Ale, stout, and cider7,0217,5755,8994,2394,648
  Apparel (including hats, caps, hosiery, and millinery)1,6721,3481,2651,512442
  Dairying machinery7,92610,22915,47820,42634,042
  Blood and blood - and - bone manures21,89317,55714,55730,40420,275
  Metals, scrap (not precious)34,84235,19946,31999,82115,498
  Cordage8088568651,180484
  Foods, infants' and invalids'13,66112,50013,84615,81713,210
  Leather5,1855,0967,1896,6727,755
  Phormium fibre and tow52,01857,553111,528130,71581,647
  Pumice, sand and stone6,7968,7698,8818,0578,811
  Soap9,17010,9868,5137,5706,319
  Sugar12,96716,44820,04721,35816,071
  Binder-twine53172267257161
  Woollen manufactures4,0294,9041,9242,1741,812
  Other134,679121,528163,205184,008163,972
    Totals312,720310,720419,783534,210375,147
Totals, New Zealand produce46,771,29346,051,73356,263,80566,208,05757,800,626
Re-exports of merchandise571,554486,648488,135505,322575,657
Total exports of merchandise47,342,84746,538,38156,751,94066,713,37958,376,283
Specie exports (face value)2,283,900521,00045,2453,50031,805

DESTINATION OF NEW ZEALAND EXPORTS.

The first exports from New Zealand went naturally to the earlier-developed sister colony, and for a considerable time Australia had a monopoly of our trade. In 1865, 70 per cent., and even in 1871, 44 per cent., of the total exports went to Australia. But since the establishment of direct shipping lines the United Kingdom has absorbed the bulk of New Zealand exports, having taken during the forty years 1875-1914, £365,880,997 (78 per cent.) of a grand total of exports amounting to £469,347,969. This percentage, prior to the war of 1914-18, did not vary greatly from year to year, but there have been considerable variations since 1914. In each of the three years 1915-1917 approximately 80 per cent. of exports went to the United Kingdom, but there was a sudden drop to 64.1 per cent. in 1918. The lowest percentage experienced since that year was in 1928 (72.9) and the highest in 1932 (88.0 per cent.). During the twenty-four years since 1914, the aggregate value of merchandise exported from New Zealand amounted to £1,102,764,897, of which £902,319,679, or 81.8 per cent., was taken by the United Kingdom.

The principal destinations of New Zealand's exports of merchandise (including re-exports) during the last twenty years are given in the table below. The principal “other countries” in 1938, in order of magnitude, were France, Japan, Belgium, Poland, Egypt, the Netherlands, India, Fiji, Sweden, and Panama Canal Zone.

Year.United Kingdom.Australia.Canada.Pacific Islands (other than Australia).United States.Germany*Other Countries.Total Merchandise Exports.
* Not including Austria.
 ££££££££
1,91944,312,0482,249,827980,190485,9624,200,861 1,679,03753,907,925
1,92034,354,3002,351,7991,357,774681,7037,456,04123203,72646,405,366
1,92138,716,5932,070,013454,597516,9962,702,10446,162321,99544,828,460
1,92236,154,1742,208,280446,457399,0782,672,775218,338626,84742,725,949
1,92337,324,6052,614,894665,696466,1643,531,272190,6001,146,56245,939,793
1,92441,969,6912,474,879716,543575,5303,278,1351,166,3022,328,14352,509,223
1,92544,066,9812,489,230423,068548,5914,349,7581,614,0901,751,32955,243,047
1,92635,102,0873,048,282861,717514,7533,818,232364,6291,559,22445,268,924
1,92736,877,8873,665,9621,666,598495,4022,681,0911,139,6541,969,76048,496,354
1,92840,510,0752,902,6552,469,150574,8664,160,3151,290,0713,663,24955,570,381
1,92940,417,0432,338,4103,353,975517,9583,553,4271,220,5523,528,69854,930,063
1,93036,015,1281,562,2812,539,212471,9742,116,752401,0841,834,08644,940,517
1,93130,739,9761,167,403256,890302,634920,931309,8471,253,01734,950,698
1,93231,344,6701,444,860244,160265,425690,015289,9171,330,87235,609,919
1,93335,275,9091,393,311560,875232,0001,188,972376,8861,977,96641,005,919
1,93438,629,2401,882,516697,865223,4861,250,364944,3103,715,06647,342,847
1,93538,921,5681,781,811656,984284,0352,468,066165,3042,260,61346,538,381
1,93645,492,9891,843,4751,103,008345,4562,877,752272,4814,816,77956,751,940
1,93750,705,5911,824,1831,678,403373,2804,784,099919,1486,428,67556,713,379
1,93848,897,9902,189,4541,127,124320,8391,421,630890,9763,528,27058,376,283

The statistics quoted in the foregoing table indicate the destination of New Zealand exports as recorded by the Customs Department. In some instances the ultimate destination of exports is not known at the time of export, such goods being entered as exported to the country to which they are being shipped. This consideration applies more particularly to wool, considerable quantities of which are shipped to the United Kingdom, and subsequently re-exported to the Continent. It should be observed, however, that in all instances where the final destination is known at the time of export the exports are credited to that destination in the New Zealand trade statistics. It is possible, of course, that the destination of goods may be changed while in transit; and this, in fact, happens occasionally in the case of wool. In such cases the actual destination will be different from that to which the goods have been credited in the statistics; but it is quite impossible to keep a record of movements of this nature.

A further point of some importance is the fact that an appreciable quantity of wool is exported each year on an “optional” basis—United Kingdom, option Continent. In such instances, the wool is entered in the New Zealand statistics as exported to the United Kingdom.

It will be realized from the considerations outlined above that the actual final destinations of New Zealand exports may vary appreciably from the classification shown in the table. The qualifications to the statistics as an indication of the final destination of New Zealand exports point, generally speaking, to the conclusion that our exports to Continental countries are somewhat higher than the figures shown; while, on the other hand, our exports to the United Kingdom for retention in that country are lower than the totals quoted in the table.

The table which follows shows for each of ten years the percentage of total exports (excluding specie, and in 1937 and 1938 ships' stores), taken by each of the principal countries trading with the Dominion.

Country.1929.1930.1931.1932.1933.1934.1935.1936.1937.1938.
* Not including Austria.
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
United Kingdom73.5880.1487.9688.0286.0381.5983.6380.1676.3084.17
Canada6.115.650.740.691.371.461.411.952.531.94
India0.700.910.170.150.080.140.130.220.200.24
Ceylon0.010.020.010.010.010.000.000.000.000.00
Union of South Africa0.090.040.020.030.030.060.060.040.050.03
Australia4.263.483.344.063.403.983.833.252.753.77
Fiji0.230.240.250.250.210.180.190.180.140.17
Other British countries0.420.480.430.440.370.420.520.480.460.43
Totals, British countries85.4090.9692.9293.6591.5087.8389.7786.2882.4390.75
Germany*2.220.890.890.820.922.000.360.481.381.53
France3.221.151.201.431.802.601.042.901.531.75
Belgium0.450.440.420.470.811.291.391.091.030.63
Japan0.780.340.760.670.861.810.932.744.711.02
United States of America6.514.712.661.942.912.645.305.077.202.45
Other foreign countries1.421.511.151.021.201.831.211.441.721.87
Totals, foreign countries14.609.047.086.358.5012.1710.2313.7217.579.25

A little more than five-sixths of New Zealand's exports went to the United Kingdom during 1938. The principal commodities, in order of magnitude, taken by the United Kingdom from New Zealand in 1938 were as follows (1938 values shown first, with those for 1937 in parentheses): Butter, £15,979,086 (£16,563,016); frozen and chilled meat, £15,047,446 (£14,653,239); wool, £7,911,127 (£9,995,537); cheese, £5,926,973 (£5,361,490); gold, £978,698 (£1,102,300); hides and skins, £714,537 (£986,274); apples, £489,093 (£362,937); tallow, £375,625 (£410,433); sausage-casings, £301,975 (£172,605); dried and preserved milk and cream, £258,084 (£283,180).

Exports to Australia in 1938 were valued at £2,189,454, an increase of £365,271 over the 1937 total, and ranking Australia next to the United Kingdom among the Dominion's export customers. Comparative figures of the principal items in 1938 and 1937 (the latter in parentheses) are as follows: Wool, £766,123 (£324,856); gold, £322,339 (£336,893); fish, £169,740 (£167,395); cattle-hides, £159,024 (£177,022); timber, £153,503 (£174,601); grass- and clover-seeds, £74,148 (£65,005).

Exports to the United States dropped very considerably from £4,784,099 in 1937 to £1,421,630 in 1938, wool declining from £2,281,082 to £168,212 and sheepskins from £1,353,843 to £532,228. Other prominent items in 1938 were as follows (1937 figures in parentheses): Sausage-casings, £217,662 (£304,011); rabbit-skins, £203,300 (£399,925); and calf-skins, £123,425 (£180,123).

Canada took £1,127,124 of New Zealand's exports in 1938, as compared with £1,678,403 in 1937. Values of the principal items for the two years (1937 figures in parentheses) are as follows: Wool, £432,757 (£957,721); sausage-casings, £218,685 (£266,733); butter, £167,615 (£1,134); calf-skins, £117,151 (£56,113).

Exports to France were practically stationary at £1,014,941, and there was a slight decline in Germany's total, from £919,148 to £890,976. Wool predominates in New Zealand's exports to these countries, and Germany, as in 1937, took butter—the subject of a special agreement—valued at £65,000. Apples valued at £20,467 represented a new item of export to France in 1938.

There was a very marked decline in exports to Japan from £3,131,986 in 1937 to £592,689 in 1938, wool falling from £2,705,946 to £478,152 and casein from £173,257 to £56,254.

Belgium took a total of £363,078 in 1938, compared with £682,913 in 1937, wool decreasing from £604,361 to £288,355.

Exports on a smaller scale in 1938 were as follows (1938 figures shown first, with those for 1937 in parentheses):—

British Countries—

  • Hong Kong: Butter, £19,916 (£16,564); fungus, £4,294 (£6,253).

  • India: Tallow, £92,016 (£103,432); butter, £27,283 (£19,142).

  • Malaya: Dried and preserved milk and cream, £25,444 (£48,737); butter, £32,341 (£20,537).

  • Union of South Africa: Peas, £4,078 (£4,378); hops, £2,373 (£2,948).

  • Bermuda: Butter, £1,961 (£1,019).

  • British West Indies: Butter, £33,759 (£52,353).

  • Falkland Islands: Sheep, £2,006 (£1,697).

  • Fiji: Tinned meats, £12,890 (£16,709); tea, £13,651 (£10,371); films, £15,067 (£7,141); potatoes, £4,928 (£5,002); bacon and hams, £3,963 (£3,947); tallow £2,203 (£3,632); bags and sacks, £7,880 (£3,042).

  • Gilbert and Ellice Islands: Tinned meats, £4,657 (£2,545).

  • Nauru Island: Sugar, £1,638 (£2,050).

  • Papua: Tinned meats, £2,348 (£4,038); mining machinery, £1,901 (£2,213).

  • Tonga: Tinned meats, £7,628 (£15,186); films, £7,176 (£3,820); textile piece-goods, £1,803 (£3,298); sugar, £2,593 (£2,751).

  • Western Samoa: Timber, £18,094 (£16,803); tinned meats £9,450 (£17,569); films, £8,426 (£3,573); sugar, £7,485 (£9,413).

Foreign Countries—

  • Bulgaria: Greasy wool, £14,331 (£7,403).

  • Czechoslovakia: Greasy wool, £24,665 (£56,406).

  • Denmark: Wool, £43,797 (£27,750); cattle-hides, £17,135 (£8,101).

  • Finland: Cattle-hides, £4,631 (£7,423).

  • Greece: Greasy wool, £24,441 (£14,593).

  • Italy: Wool, £5,347 (£6,179).

  • Netherlands: Apples, £58,596 (£24,061); greasy wool, £43,708 (£46,738); cattle-hides, £12,932 (£5,913).

  • Norway: Wool, £1,033 (£2,000).

  • Portugal: Wool, £2,361 (£9,565).

  • Spain: Wool, £7,730 (£13,868).

  • Poland: Greasy wool, £191,972 (£165,396).

  • Sweden: Greasy and scoured wool, £43,924 (£86,069).

  • Yugoslavia: Wool, £1,326 (£7,388).

  • China: Butter, £21,879 (£22,895); dried and preserved milk and cream, £6,088 (£1,810).

  • Philippine Islands: Butter, £14,981 (£6,687).

  • Egypt: Greasy wool, £162,920 (£23,579).

  • Argentina: Potatoes, £13,332 (£44,140); sheep, £4,340 (£5,744).

  • Brazil: Apples, £38,929 (£12,501).

  • Panama Canal Zone: Butter, £73,140 (£106,570).

  • Uruguay: Sheep, £13,513 (£5,422).

  • Hawaii: Butter, £48,406 (£55,488); frozen meat, £4,370 (£10,840).

  • Society Islands: Tinned meats, £8,502 (£19,388); butter, £5,944 (£9,516); dried and preserved milk and cream, £4,350 (£13,206).

  • Tutuila: Tinned meats, £7,625 (£9,222).

RE-EXPORTS OF NEW ZEALAND PRODUCE FROM THE UNITED KINGDOM.

The lack of direct shipping facilities between New Zealand and the Continent of Europe has led to the development of a considerable entrepôt trade in New Zealand produce between the United Kingdom and the Continent. Wool is (and has been) the principal commodity entering into this trade, accounting for 78 per cent. of the total of such re-exports in 1933-37, while hides and skins account for a considerable proportion of the remainder. Butter and cheese formerly occupied an important place in the trade; but, with the development of agrarian policies by Continental Governments, re-exports of these commodities have fallen off very considerably in recent years. Wool, being a raw material of manufacture, has not been subjected to trade restrictions to the same extent as farm-produced foodstuffs, although the increase in production of substitute fibres and the increased use of “recovered” wool have tended to decrease Continental purchases of New Zealand (and other) raw wools.

In the following table the value of re-exports of New Zealand produce from the United Kingdom during the calendar years 1933-37 is shown. The figures are taken from the official trade statistics of the United Kingdom issued by the Board of Trade.

RE-EXPORTS OF NEW ZEALAND PRODUCE FROM THE UNITED KINGDOM .

Commodity.1933.1934.1935.1936.1937.
 £(Stg.)£(Stg.)£(Stg.)£(Stg.)£(Stg.)
Butter195,899185,729427,887262,190463,283
Cheese34,29551,20150,71246,50741,658
Casein6082,9212,6481,7941,861
Milk-powder, not sweetened23,75712,91413,2797,1839,649
Oleo-margarine, oleo-oil, and refined tallow2,2203,2856,215579355
Peas, not fresh1,67011,3773,5501,3452,258
Apples44,49519,54231,19626,47122,159
Pears15,21317,11113,58514,0974,970
Grass and clover seeds1,60216,83018,5076,0958,361
Beef, frozen4,5415,2069,8128,41721,679
Beef, tinned, canned, &c. (including tongues) and extracts and essences7551,598633927423
Mutton and lamb, frozen51,36553,91354,48354,47059,646
Meat, other kinds13,6758,5219,4899,80510,426
Sausage-casings55,56523,6935,18956,60022,220
Hides104,114181,034205,168147,846135,484
Sheep and lamb skins281,050281,797369,655311,681387,278
Rabbit-skins12,44228,17140,39258,79060,532
Kauri-gum5,5997,6178,8098,42811,868
Tallow37,45340,79031,50735,54625,393
Phormium-fibre2,6401,6354992,173663
Wool, raw; sheep and lambs' wool4,340,1894,365,5702,555,8334,071,9955,012,508
All other commodities35,65733,97026,93831,21041,190
    Totals5,264,8045,354,4253,885,9865,164,1496,343,864

The above figures indicate the constitution of the United Kingdom's entrepôt trade in New Zealand produce, the movements in the values for individual commodities, and the total value of the trade at United Kingdom values. The figures should not, however, be regarded as directly comparable with the New Zealand statistics of exports to the United Kingdom quoted elsewhere in this section. In the first instance, the re-export statistics quoted above are valued in sterling currency, the basis of valuation being value at United Kingdom ports; secondly, the statistics include a proportion of exports credited in the New Zealand trade statistics as exported to other countries, and merely shipped to the United Kingdom on account of lack of direct shipping facilities (see remarks on page 252); thirdly, the United Kingdom statistics for any single year do not cover the identical exports included in the New Zealand statistics for the same year owing to the time-lag.

EXPORTS TO EACH COUNTRY, 1934-38.

The table following shows the exports (including re-exports, but excluding specie) for five years according to the countries of destination. Reference should be made to remarks above regarding re-exports of New Zealand produce from the United Kingdom.

DESTINATION OF EXPORTS FROM NEW ZEALAND.

Country.1934.1935.1936.1937.1938.
* Not including Austria.
 £££££
United Kingdom38,629,24038,921,56845,492,98950,705,59148,897,990
British Possessions, Protectorates, Mandated Territories, &c.     
Europe—     
  Eire7,05114,08610,80255760
  Malta and Gibraltar1..35..10
..7,05214,08610,83755770
Asia—     
  Ceylon3931,5281,4011,074362
  Hong Kong16,23811,24922,91727,18028,028
  India65,16160,956125,826135,730137,281
  Malaya49,72763,77171,38378,86964,080
  Other3028301,1746431,386
 131,821138,334222,701243,496231,137
Africa—     
  Union of South Africa29,15227,50421,85529,55419,357
  Other8933983811,542755
 30,04527,90222,23631,09620,112
America—     
  Canada697,865656,9841,103,0081,678,4031,127,124
  British West Indies42,22853,96648,79854,94237,280
  Other314,0771,0543,1834,518
 740,124715,0271,152,8601,736,5281,168,922
Pacific islands—     
  Australia1,882,5161,781,8111,843,4751,824,1832,189,454
  Fiji85,49386,191102,07695,21498,440
  Gilbert and Ellice Islands8,9108,42911,9844,2766,711
  Nauru Island10,82112,19118,0844,3544,775
  Norfolk Island3,5131,106337551340
  Papua1,8676,8164,2908,1775,172
  Solomon Islands8675766672,095641
  Tonga12,94819,10427,21540,13430,960
  Western Samoa34,65244,56752,54976,86766,975
  Other5328381,0669391,184
    Foreign Countries and Possessions.2,042,1191,961,6292,061,7432,056,7902,404,652
Europe—     
  Belgium612,646647,212618,356682,913363,078
  Bulgaria73,54717,8109,44414,331
  Czechoslovakia1,98612,96920,06458,14126,330
  Denmark22,09212,09811,21938,05662,728
  Finland5,2789,9771,2127,8226,129
  France1,228,699484,6101,646,1681,014,9411,015,456
  Germany*944,310165,304272,481919,148890,976
  Greece1,7689,64945,90918,37231,803
  Italy205,67321,0921,76710,3226,578
  Netherlands165,07479,615112,539128,474152,373
  Poland133,234103,321173,159166,255194,164
  Portugal2..2,2039,5653,585
  Spain20,69624,28315,15813,9257,730
  Sweden117,52947,14264,93692,76584,549
  Switzerland6992,8921,3607462,791
  Yugoslavia217146,6977,7095,782
  Other4,8431,1091,3778,6376,629
 3,464,7531,624,8343,012,4153,187,2352,875,012
Country.1934.1935.1936.1937.1938.
Asia—£££££
  China19,0997,71832,85482,06834,560
  Netherlands East Indies2,5482,2351,8944,0537,668
  Japan856,014432,4951,554,8373,131,986592,689
  Philippine Islands2,4933,9455,9839,30416,066
  Other3,597247575,5085,018
 883,751446,4171,596,3253,232,919656,001
Africa—     
  Egypt157,68718,90623,687163,669
  Other31617534291,290
 3317,86218,94023,716164,959
America—     
  Argentina4,0793,40111,79750,33117,677
  Brazil13,08011,5175,93712,50138,937
  Chile11,500762,5201,369114
  Ecuador..2811,161150447
  Panama Canal Zone57,14078,17998,047108,50374,313
  United States of America1,250,3642,468,0662,877,7524,784,0991,421,630
  Uruguay10,72214,26836,080126,91013,904
  Other1,6957091139,4793,189
 1,348,5802,576,4973,033,4075,093,3421,570,211
Pacific Islands—     
  Hawaii14,92741,52067,33269,20854,680
  New Caledonia1473,9061,48171811,439
  Society Islands35,30941,91741,74053,73724,016
  Tuamotu Archipelago1,8941,1821,299....
  Tutuila11,48714,52415,24116,98415,176
  Other1,2671,17639426330
 65,031104,225127,487140,673105,641

Nearly 91 per cent. of the total exports from New Zealand went to British countries in 1938. The United States, France, Germany, and Japan took the bulk of the remainder.

Full details of quantities and values of commodities exported to various countries are given in Part I of the Annual Statistical Report on Trade and Shipping, while in Part II of the same report values of exports of principal commodities to various countries are summarized. The table which follows shows quantities of principal export commodities sent to various destinations during the last five years. Both New Zealand produce and re-exports are covered.

DESTINATION OF MAIN EXPORTS.

Country to which exported.1934.1935.1936.1937.1938.
* Not including Austria.
Wool.
 lb.lb.lb.lb.lb.
United Kingdom171,190,802149,895,217183,666,855149,590,128172,729,452
India2,01757,068159,88857,70993,790
Union of South Africa258,106237,16299,914173,48020,109
Canada6,728,8796,140,99213,696,52512,442,4568,318,613
Australia8,098,5968,213,5549,232,4655,992,28319,666,128
Belgium11,979,01518,545,08212,798,0239,785,8936,746,299
Bulgaria..104,028431,736131,311337,751
Czechoslovakia31,001811,611390,351812,665541,671
Denmark292,041141,04558,012362,061934,272
France18,431,50911,815,41537,360,07714,997,74521,942,723
Germany*14,322,2082,741,2833,519,95810,453,55514,533,126
Greece20,291257,3611,255,119245,093713,222
Italy2,973,237311,05137,36790,754102,046
Netherlands1,321,168447,757950,041732,750988,267
Poland2,897,5733,567,0494,578,5772,570,5914,376,789
Spain85,962136,840284,444180,202167,971
Sweden2,408,4571,164,5751,162,8171,344,944923,126
Yugoslavia....193,962109,11833,940
China71,590..324,705656,29072,611
Japan12,405,7668,519,28326,995,79838,220,61310,584,031
Egypt..205,076591,859408,7553,344,126
United States of America2,267,6969,816,04616,516,75432,790,5563,975,074
Other countries10,86933,908104,155203,201138,097
    Totals255,796,783222,661,403314,409,402282,352,153271,283,233
Frozen Meat.
 Cwt.Cwt.Cwt.Cwt.Cwt.
United Kingdom4,961,6105,154,7575,105,4495,393,0495,353,714
Canada2,3451,4883664003,819
Australia2,141573152150599
Germany*........4,038
Japan6016088,7056,2401,454
United States of America10743,9051293,8656,160
Hawaii2782,6592,1934,8571,288
Pacific islands (other than Hawaii)1,4541,8801,8311,6241,309
Other countries911644979727927
    Totals4,969,4475,206,5145,119,8045,410,9125,373,308
Butler.
 Cwt.Cwt.Cwt.Cwt.Cwt.
United Kingdom2,568,0562,696,8322,721,3422,903,0052,526,981
Hong Kong2,4238172,4792,6622,957
India1,6742,0502,6663,4644,287
Malaya2,6543,4745,2393,6835,003
British West Indies10,04310,2008,4109,0745,370
Canada6,2501,9182,41320829,052
Australia1121515..1
Germany*......10,00010,000
China1,5101,0741,4054,1253,406
Japan58585814,3742
Philippine Islands4607749601,1752,197
Panama Canal Zone14,34515,22617,41819,16912,118
United States of America1,15946,41920,2812,0082,787
Hawaii2,7547,51010,65910,3667,717
Society Islands1,3611,4581,4931,090667
Other countries1,1331,3101,2941,6822,004
    Totals2,614,5192,789,2982,796,1452,976,0852,614,549
Cheese.
 Cwt.Cwt.Cwt.Cwt.Cwt.
United Kingdom1,983,0581,723,1971,654,8271,644,2411,608,437
Hong Kong28126522620026
British West Indies31614268121247
Canada721,8111,0101,3891,038
Australia136177283245183
Fiji230205301300243
China297219355516191
Panama Canal Zone1,05791517....
Other countries106479221131158
    Totals1,984,4961,727,5521,658,2061,647,1601,610,523
Dried and Preserved Milk.
 lb.lb.lb.lb.lb.
United Kingdom18,477,60117,146,42720,059,78220,036,82817,886,649
Ceylon3,36020,6708,84820,72016,800
Hong Kong7,8402,24018,22038,20579,758
India194,800299,748266,630139,228379,500
Malaya2,181,4162,702,9842,537,9343,046,6081,501,687
British West Indies33,43955,55730,55634,24546,128
Canada..45,36014,632....
Australia151,91937,43239,25322,90845,170
Fiji22,10325,88224,56012,4926,304
Western Samoa13,53013,50815,58233,30416,298
China83,02384,37477,63374,162224,036
Netherlands East Indies31,07618,3465,48014,49814,153
Japan15,68029,14083,405404,65611,200
Philippine Islands11,4542242,800126,00019,040
Panama Canal Zone39,30233,60080,640103,60068,420
Society Islands261,442221,363242,653498,063170,976
Hawaii....193,90256,958..
Other countries36,56546,22539,84451,59350,559
    Totals21,564,55020,783,08023,742,35424,714,06820,536,678
Tallow.
 Ton.Ton.Ton.Ton.Ton.
United Kingdom20,3009,70115,64216,86822,139
India1,9061,0933,0013,7254,257
Canada..18843819940
Australia678149479270367
Fiji7273137136118
Belgium301591232133
Germany*483..39568485
Netherlands703624958122
China....8834790
Japan1,4703562,2032,422243
United States of America2,34413,4803,640480176
Other countries309186127515543
    Totals27,66225,27726,09525,94029,613
Hides (Cattle and Horse).
 Number.Number.Number.Number.Number.
United Kingdom101,528145,613126,834113,464126,816
India1,400..2,100..4,630
Canada63,57359,82336,867105,26838,141
Australia140,170118,12287,68093,963133,012
Belgium11,80919,83520,44829,13938,485
Denmark5,2505,7818,1637,49423,783
Finland7,49813,9931,3006,1826,452
France8,76810,89719,96923,58917,302
Germany*65,06670,95159,39039,38962,108
Italy31,77212,091..3,530..
Netherlands5,4056,44511,4368,07917,860
Norway3,6831754721,050700
Sweden1,1343,7262,1362,6933,300
Yugoslavia....7691486,366
Turkey4,964........
Japan3,17310,16815,97414,1061,332
United States of America21,69443,93136,98456,27133,317
Other countries3682,5002,0894,2634,491
    Totals477,255524,051432,611508,628518,095
Calf-skins.
 Number.Number.Number.Number.Number.
United Kingdom16,02033,39927,43772,56352,488
Canada259,719373,262575,989199,619540,578
Australia337,964178,80666,38762,46135,906
Belgium87,757101,1581,00045,810..
France5,0949,887..5044,004
Germany*24,00230,85838,22252,37536,685
Greece3,000....5,718..
Netherlands97,860205,442139,332128,20417,410
United States of America274,754330,999327,455595,428554,922
Other countries3,8292,4472,0252705,000
    Totals1,109,9991,266,2581,177,8471,162,9521,246,993
Opossum-skins.
 Number.Number.Number.Number.Number.
United Kingdom232,825145,557199,97758,30952,592
Australia2,480821..133..
Germany2,000........
Austria1,707........
United States of America..5004,80820,173..
Other countries1,746..55759500
    Totals240,758146,878204,84079,37453,092
Rabbit-skins.
 Number.Number.Number.Number.Number.
United Kingdom3,798,7102,003,5413,533,9843,435,8321,483,232
Canada237,73829,4609,57010,9379,198
Australia3,66214,93729,19026,608527,688
Belgium177,37220,526....185,465
France340,641124,302213,322196,829119,478
Germany*........33,952
Japan3,0009,1302,640....
Netherlands East Indies........51,072
United States of America8,473,59211,332,42913,140,2258,403,2237,857,927
Other countries3002,420..1,921..
    Totals13,035,01513,536,74516,928,93112,075,35010,268,012
Sheep-skins (with Wool).
 Number.Number.Number.Number.Number.
United Kingdom1,300,9931,107,690743,678804,631623,315
India11,3246,91612....
Canada209,258179,587186,769199,653138,963
Australia5782,1966,5187,75762,589
Belgium161,68734,31050,49321,29367,416
France987,970747,128320,85197,012481,226
Germany*62,48421,43238,085112,389115,654
Italy1,03317,359532....
Netherlands5,66311218,188..97,326
Spain55,34396,85814,783....
Japan22,18411,37519,59022,19057,863
United States of America131,454176,232380,506478,057175,090
Other countries..4,0563271,0004,584
    Totals2,949,9712,405,2511,780,3321,743,9821,824,026
Sheep-skins (without Wool).
 Number.Number.Number.Number.Number.
United Kingdom3,747,7883,745,6692,715,4382,639,5494,562,725
Canada69,069163,22562,76698,580119,918
Australia217,533293,745143,05452,786463,157
Belgium68,019101,832358,16030,120186,267
Finland..1,500..4,788..
France34,337125,91142,89316,440102,487
Germany*7,20025,61810,04429,2396,312
Italy15,3121,258..1,044..
Netherlands5,62230,0123,6005,60051,144
Sweden..15,6247,2001,272..
Japan134,670210,546270,172229,65560,779
United States of America4,944,1767,050,3537,232,8907,649,9866,800,777
Other countries....1,032....
    Totals9,243,72611,765,29310,847,24910,759,05912,353,566
Sausage-casings.
 lb.lb.lb.lb.lb.
United Kingdom936,1011,140,6871,694,0711,139,3641,720,849
Canada974,1551,143,6201,089,7391,359,0981,143,777
Australia248,245301,380292,221215,146134,781
France..29,397......
Germany*396,76432,01012231,794..
United States of America1,974,1031,563,3351,335,0071,497,6151,086,634
Other countries1,1759584,9101,210840
    Totals4,530,5434,211,3874,416,0704,244,2274,086,881
Peas.
 Cental.Cental.Cental.Cental.Cental.
United Kingdom181,040100,669114,15387,264112,946
Union of South Africa6,6225,4935,5295,1414,680
Canada4843,3708,5136,01090
Australia19,88326,01733,77837,60034,598
Belgium........7,861
France..45....1,982
Germany*7,281......1,077
Netherlands39,363462....102
United States of America3,60110,1485,4218,0602,706
Other countries2869281321..
    Totals258,560147,132167,407144,096166,042
Apples (Fresh).
 lb.lb.lb.lb.lb.
United Kingdom44,877,84331,129,77339,494,75728,889,35039,167,460
Hong Kong..4,00091,68036,640..
India..12,08068,3304,000157,880
Malaya..4,00026,00040,04094,760
British West Indies240..20,000..80,000
Canada2,052,2801,895,0801,005,4002,855,2003,847,040
Falkland Islands......4,000..
Australia96023,5206,440120240
Fiji85,58488,257116,600138,184130,874
Tonga2364,1659,2619,3303,261
Western Samoa14,84313,4899,17521,58319,412
Belgium..1,053,000......
France........1,637,400
Germany*5,076,160..1,367,640985,1202,671,080
Netherlands4,088,040882,3601,220,0001,924,8404,687,600
Sweden..133,92037,160..1,914,080
China4,0006,20058,00043,200..
Netherlands East Indies..4,0008,00070,48024,400
Philippine Islands....38,00046,12054,800
Argentina....715,360....
Brazil1,121,600921,320485,3601,000,0003,114,360
Panama Canal Zone......8,000..
United States of America..814,800......
Uruguay434,280783,240......
Other countries8,37019,99132,28810,56439,424
    Totals57,764,43637,793,19544,809,45136,086,77157,644,071
Seeds (Grass and Clover).
 Cwt.Cwt.Cwt.Cwt.Cwt.
United Kingdom18,79241,63725,75413,73612,563
Union of South Africa296392514702666
Canada1,8141,3992,9886,0731,550
Australia18,29220,72532,40923,63021,425
Denmark57264465422100
Germany*259....40..
Netherlands9991,1771,548466460
United States of America7,9756,28615,86512,8208,580
Other countries13265634293266
    Totals49,13171,74580,17758,18245,610
Gold.
 Oz.Oz.Oz.Oz.Oz.
United Kingdom137,133135,369135,711130,750114,039
Australia30,02432,89433,10742,09739,017
United States of America....4,51696..
Other countries..3....1
    Totals167,160172,779168,914172,847153,057
Silver.
 Oz.Oz.Oz.Oz.Oz.
United Kingdom328,336362,611453,610417,402357,500
Australia33,61226,65224,97922,23212,584
    Totals361,948389,263478,589439,634370,084
Kauri-gum.
 Ton.Ton.Ton.Ton.Ton.
United Kingdom1,9791,8272,0021,8081,551
Canada13662174297236
Australia14914524613797
Belgium..157153
France151114969869
Germany*34369954134
Italy5524....30
Sweden1031424626
Japan5420426576
United States of America332568438684158
Other countries..11453524
    Totals3,2092,8723,2373,2262,304
Phormium-fibre. 
 Ton.Ton.Ton.Ton.Ton.
United Kingdom9141,1632,3632,1122,126
Canada5067459620
Australia2,6072,4192,9652,7881,703
Denmark........71
Germany*51022779366
Norway........41
United States of America....504651
Other countries152577231
    Totals3,5913,6615,7075,1934,409
Timber (Sawn and Hewn).
 Sup. ft.Sup. ft.Sup. ft.Sup. ft.Sup. ft.
United Kingdom572,434475,834379,173464,75488,097
Australia33,207,53437,608,96725,709,21516,087,04713,127,387
Fiji21,86444,93750,63835,27337,828
Tonga66,39582,441126,48762,79653,045
Western Samoa650,3261,407,288758,800978,3561,187,361
New Caledonia..3,29112418,32436,084
Other countries51,88319,26219,04569,77863,958
    Totals34,570,43639,642,02027,043,48217,716,32814,593,760

EXPORTS FOR YEARS ENDED 30th JUNE

As indicated elsewhere in this section (pages 245-46) farm products account for an extremely high proportion of exports from New Zealand (96.1 per cent. in the calendar year 1938). The farm-production export season fits much more closely to a June year than to a calendar year. The flush of the dairy-production season, the whole harvest season, and most of the wool-selling season occur in the early months of the calendar year. By 30th June the great bulk of the season's farm-produce destined for export is shipped, excepting held-over wool and a certain amount of dairy-produce and frozen meat kept in cool store to equalize shipments. It is desirable, therefore, for some purposes to tabulate New Zealand exports for years ending in June instead of December, a desideratum which, it may be observed, applies to most countries in the Southern Hemisphere.

EXPORTS OF NEW ZEALAND PRODUCE (QUANTITIES) FOR YEARS ENDED 30TH JUNE.

Commodity.1934-35.1935-36.1936-37.1937-38.1938-39.

* Not available.6

† Includes a proportion of chilled beef.

Butter cwt.2,575,5952,786,6412,991,3572,917,7462,467,776
Casein ”58,57077,09580,99257,61328,543
Cheese ”1,858,7331,620,3941,662,2181,690,8371,599,248
Fish ”54,93161,88853,21649,72245,244
Honey lb.806,2671,031,287536,8371,126,620826,191
Beef, chilled cwt.*202,235262,076370,041389,461
Beef, frozen ”754,797550,734432,020588,583642,301
Lamb, frozen ”2,796,0372,395,8242,692,0712,804,8852,591,742
Mutton, frozen ”1,043,925888,266798,907988,2701,028,886
Pork, frozen ”485,677578,166591,299586,025514,161
Veal, frozen ”54,073115,008127,267153,427139,565
Meats, tinned ”53,79796,34377,83856,88561,022
Sausage-casings lb.4,444,0164,514,7304,399,3953,956,9244,382,142
Milk, preserved ”6,044,4327,211,6097,106,2677,387,1935,826,496
Milk, dried ”13,432,42917,728,55814,474,88115,460,82616,829,612
Apples, fresh ”37,291,15444,737,42536,555,64444,792,03850,426,404
Pears, fresh ”*4,532,6541,640,2962,310,2356,222,670
Peas cental208,516167,421162,109180,642161,800
Oats ”58,5991,0622,4592,4094,278
Wheat bushel178287182104..
Hops lb.516,002323,514290,810246,199230,947
Potatoes ton1,2501,02613,15313,1575,428
Calf-skins No.1,126,9381,264,9921,190,7341,180,5871,083,485
Hides, cattle ”451,191527,685436,199531,063541,380
Rabbit-skins ”11,285,83517,866,00114,450,99710,934,85911,497,314
Opossum-skins ”209,031156,147201,043121,2364,132
Sheep-skins, with wool ”2,239,8012,045,3731,755,2761,155,4182,010,068
Sheep-skins, without wool11,808,25010,531,86211,813,4309,307,51714,018,151
Wool bale582,763918,471846,374761,248900,583
Phormium fibre ton3,5984,7715,8054,5702,947
Seeds, grass and clover cwt.80,93653,84780,81245,80746,223
Tallow ton29,43419,94129,56728,58728,338
Coal ”43,34747,43339,42342,02156,217
Kauri-gum ”3,3542,7103,8592,0212,523
Gold oz.165,518177,167165,825164,575170,875
Silver ”393,916428,075465,271371,856369,848
Timber, sawn sup. ft.39,794,87938,059,90818,424,23216,236,55012,933,724

EXTORTS OF NEW ZEALAND PRODUCE (VALUES) FOR YEARS ENDED 30TH JUNE.

Commodity.1934-35.1935-36.1936-37.1937-38.1938-39.

* Not available.

† Includes a proportion of chilled beef.

 £££££
Butter10,625,12114,789,64916,434,27018,284,60315,833,843
Casein146,419179,180233,635168,40256,069
Cheese4,524,0244,509,1745,282,2596,069,0265,705,824
Fish133,125163,181173,869183,192164,093
Honey23,64130,22514,76331,57221,682
Beef, chilled*335,186426,839694,788757,844
Beef, frozen848,159643,546540,413831,3131,078,807
Lamb, frozen8,832,2897,642,8138,956,0639,759,6118,768,236
Mutton, frozen1,905,4141,634,4571,500,3761,975,8671,812,624
Pork, frozen1,313,5021,507,5531,630,6171,885,2671,685,675
Veal, frozen62,207154,401192,140298,813265,485
Meats, tinned154,984281,610281,450216,452274,499
Sausage-casings791,615695,811750,001730,148672,700
Milk, preserved96,284117,005120,169125,63899,242
Milk, dried271,985332,217193,993218,740237,272
Apples, fresh462,401551,305457,619580,571612,784
Pears, fresh*55,56920,42328,63583,670
Peas113,575119,313121,668129,280144,071
Oats17,7939481,3361,3762,104
Wheat56885541..
Hops32,04819,99716,75415,11311,525
Potatoes8,2217,53988,975112,70326,756
Calf-skins175,655273,440349,378329,799238,737
Hides, cattle374,725487,768511,810617,666475,227
Rabbit-skins232,963562,710683,034503,393244,191
Opossum-skins57,88952,28177,00438,678705
Sheep-skins, with wool306,671452,716585,452445,383386,470
Sheep-skins, without wool833,7111,098,3151,638,369988,5681,045,311
Wool6,327,79312,762,49818,770,64312,325,75512,899,228
Phormium-fibre47,84985,244128,03199,28647,001
Seeds, grass and clover248,323192,941249,297219,736240,945
Tallow614,991539,210709,888577,080453,490
Coal59,03562,45051,62158,98172,441
Kauri-gum89,40478,657145,321103,104112,283
Gold1,385,1191,485,0771,378,6841,368,4901,505,818
Silver54,29259,15951,09340,21438,297
Leather2,6787,0245,9789,4125,409
Timber, sawn370,178350,031203,346194,687154,974
Other New Zealand produce874,212868,2271,162,1001,110,5001,108,167
Totals42,418,35153,188,51564,138,73661,371,88357,343,499

RE-EXPORTS.

The forwarding trade of New Zealand has never at any time been of great significance. The bulk of the total amount is made up by various classes of machinery, hardware, metal manufactures, motor-vehicles, and also items such as apparel, books, tobacco, and spirits.

There is a genuine entrepôt trade with the islands of the Pacific, the amount of which is, however, comparatively small. Exports to Cook Islands, which are treated as part of the Dominion, are not included in the figures of either exports or re-exports.

RE-EXPORTS (EXCLUDING SPECIE ) FROM NEW ZEALAND.

 £
1,918543,568
1,919603,541
1,920813,072
1,9211,213,002
1,9221,026,801
1,923567,885
1,924588,395
1,925722,016
1,926929,741
1,927925,121
1,928910,016
1,929754,050
1,930731,111
1,931631,554
1,932633,532
1,933597,168
1,934571,554
1,935486,648
1,936488,135
1,937505,322
1,938575,657

Re-exports of merchandise in 1938 were equal to 0.99 per cent. of total exports of merchandise for the year and to 1.04 per cent. of imports.

The destination of this re-export trade is shown in the following table:—

Country.1934.1935.1936.1937.1938.
* Allocated to countries.
 £££££
United Kingdom146,572110,192127,15087,799110,244
Canada4,2013,9334,9714,3693,770
Australia287,469244,996223,061131,588132,119
Fiji37,86434,43028,11732,54047,416
Tonga2,6382,8775,33311,56312,374
Western Samoa10,19911,82012,13715,02117,065
United States of America53,91347,57946,46412,29216,936
Society Islands3,9313,8402,9733,3561,694
Other countries24,76726,98137,92929,82624,987
Ships' stores***176,968209,052
Totals (excluding specie)571,554486,648488,135505,322575,657

Prior to 1937, goods exported as ships' stores were recorded as having been shipped to the countries to which vessels cleared.

EFFECT OF PRICES ON NEW ZEALAND EXPORTS.

The incidence of fluctuating prices over a number of years operates to render the currency aggregate of a country's trade of little value as an indicator of movement in the volume of trade—i.e., from a quantity point of view. Owing to the homogeneous nature of the bulk of the Dominion's exports it is possible, fortunately, in nearly every case to obtain the quantity exported as well as the value. By taking the prices of a selected base year or other period it is then possible to find what the value of the exports of each subsequent year would have been on the basis of prices ruling in the base period. This method is especially suitable for application to New Zealand, and, in point of fact, 98 per cent. of the Dominion's exports can be treated quantitatively, leaving only 2 per cent. to be calculated pro rata.

In the following table the actually recorded exports (exclusive of specie and other re-exports) are shown for 1900 and for each of the last ten years. Values are also shown on the basis of prices ruling in 1900, and index numbers have been computed to show movements in the physical volume of exports of New Zealand produce, both for the total and on a per caput basis.

Year.Recorded Value of Exports of New Zealand Produce.Value at Rates ruling in 1900.Index Numbers of Volume of Exports.
Total.Per Head.Total.Per Head.Total.Per Head.
  ££££ 
1,90013,055,24916.2713,055,24916.271,0001,000
1,92954,176,01336.7727,490,07918.6621061,147
1,93044,209,40629.6128,220,74818.9021611,162
1,93134,319,24422.6628,549,65118.8521871,159
1,93234,976,38722.9031,819,94620.8424371,281
1,93340,408,75126.2537,425,92824.3128671,494
1,93446,771,29330.1535,901,92123.1427501,422
1,93546,051,73329.4836,333,40523.2627831,430
1,93656,263,80535.7238,189,23024.2429251,490
1,93766,208,05741.6437,933,75423.8629061,467
1,93857,800,62635.9735,858,14122.3227471,372

The effect of prices on the total value of exports is seen at a glance from the accompanying diagram showing the yearly movement since 1900. The curve representing values on the basis of prices ruling in 1900 may also be taken as representing the course of the volume of trade on a quantity basis.

The record in total volume of exports was reached in 1936, when the index number showed an increase of 192.5 per cent. over that for 1900. There was a slight decline in 1937, followed by a more substantial fall in 1938, when the volume was 6.1 per cent. below that of the record in 1936 and the lowest since 1932. The decline was mainly due to decreased butter shipments.

It is necessary to observe that the foregoing table is expressed in terms of New Zealand currency, and consequently, for certain uses, allowance must be made for changes in the external value of New Zealand currency, particularly the depreciation in relation to sterling. This applies also to the graph following.

EXPORTS AS RECORDED AND AS ASSESSED AT PRICES OF 1900.

In order to show the effect of changes in price from year to year, and particularly in the latter years, the table following has been compiled by recomputing the values of each year's exports according to the prices of the previous year. In this way it is possible to compare succeeding years directly, instead of comparing each year with a given base. The method used is the same, except that the base is changed.

Year.Total Exports (New Zealand Produce).Effect of Price-changes.
Recorded Value.Value at Prices of Previous Year.Gain.Loss.
 ££££
1,92954,176,01356,465,248..2,289,235
1,93044,209,40655,655,835..11,446,429
1,93134,319,24444,630,116..10,310,872
1,93234,976,38738,128,569..3,152,182
1,93340,408,75140,999,141..590,390
1,93446,771,29339,039,1927,732,101..
1,93546,051,73345,694,497357,236..
1,93656,263,80549,172,2617,091,544..
1,93766,208,05755,966,79110,241,266..
1,93857,800,62662,933,946..5,133,320

The comparison of each year with the preceding year brings out the advantage or loss resulting from a rise or fall in prices. The gain or loss shown for individual years represents the increase or decrease in value, due to rising or falling prices.

A study of the figures given in the Statistical Summary at the end of this book, and showing quantities and values of the principal commodities exported over a period of fifty years, will give a good idea of the relative effects of increased volume and of price-movements in the huge growth of external trade during the half-century, as measured by the total value of exports.

The following comparison between the year ended 30th June, 1914, and the two latest years—1937-38 and 1938-39—is of interest as showing the influence of altered prices on the value of exports of principal commodities.

As mentioned earlier, June years are in many respects preferable to calendar years, as affording a comparison between one season and another.

Commodity.Twelve Months ended 30th June, 1914.Twelve Months ended 30th June, 1938.Twelve Months ended 30th June, 1939.
Recorded Value.Value at Prices of 1913-14.Recorded Value.Value at Prices of 1913-14.
 £££££
Butter2,197,77118,284,60315,769,02515,833,84313,337,152
Cheese2,317,9706,069,0265,013,6755,705,8244,742,095
Beef, frozen (and chilled)561,8171,526,1011,372,1101,836,6511,476,795
Lamb, frozen2,545,1759,759,6116,126,5848,768,2365,661,026
Mutton, frozen1,880,5831,975,8671,515,2941,812,6241,577,569
Pork, frozen5,8431,885,2671,360,4221,685,6751,193,594
Meat, preserved122,078216,452202,049274,499216,743
Sausage-casings132,038730,148120,041672,700132,941
Apples12,160580,571361,830612,784407,544
Hides319,995618,795857,673475,227872,185
Rabbit-skins90,350503,393144,209244,191151,627
Sheep-skins (without wool)545,037988,568698,9851,045,3111,052,749
Wool8,262,15312,325,75510,866,12212,899,22812,835,509
Phormium-fibre576,09599,286109,66347,00170,717
Tallow711,858577,080820,952453,490813,801
Kauri-gum790,338103,104164,549112,288205,340
Gold1,485,9371,368,490638,2841,505,818662,717
Timber, sawn372,092194,68781,865154,97465,212
  Totals22,929,29057,806,80446,223,33254,140,35945,475,316
Other N.Z. produce1,383,4543,565,079..3,203,140..
  Grand totals24,312,74461,371,883..57,343,499..

Exports during 1938-39 of the commodities dealt with realized £8,665,043 more than they would have at prices ruling in 1913-14. In 1937-38 the corresponding gain was £11,583,472, and in 1936-37, £13,299,732. During the depression period of 1930-31 to 1934-35 the recorded value of these commodities was actually less than it would have attained at 1913-14 prices, the greatest loss (£8,880,425) occurring in 1932-33. The adjusted values afford a reliable comparison of the volume of exports, the volume in 1938-39 being 1.6 per cent. less than in 1937-38, and 98 per cent. greater than in 1913-14. The eighteen items utilized in arriving at the foregoing percentage comprise 94 per cent. of the total exports of domestic produce, and therefore may be taken as thoroughly representative of the whole. This growth in volume has been achieved in spite of an increase of over 400,000 in the consuming population of the Dominion, with little increase in the number of those engaged in producing the principal export commodities.

EXPORTS TO COOK ISLANDS AND NIUE.

Trade with the Cook Islands and other islands annexed in 1901 is not regarded as external to New Zealand, but merely as interchange between different parts of the Dominion, and it is therefore not included in the account of the external trade. The trade of the Cook Islands and Niue with other countries is also omitted from New Zealand trade statistics. Separate returns are made of the transactions between the Dominion and the annexed islands, and exports to the islands are summarized below:—

Year.Exports.
 £
1,92979,962
1,93078,512
1,93159,202
1,93256,599
1,93356,254
1,93454,261
1,93553,109
1,93666,857
1,93787,658
1,93864,442

Further particulars regarding the trade of the Islands will be found in the section of this book dealing with Dependencies.

SUBSECTION C. — IMPORTS.

INTRODUCTORY.

The statistics of imports are compiled from entries passed at the Customs. The value shown for all merchandise imported is the current domestic value in the country of export at the time of exportation, plus an allowance of 10 per cent. to cover freight, insurance, &c. Import values are expressed in terms of New Zealand currency. In Subsection A will be found (in conjunction with export figures) a summary of import totals for recent years, expressed both in New Zealand currency and in sterling, together with a series of index numbers of the volume of import trade and of the value, expressed in terms of gold, sterling, and New Zealand currency. Import totals are exclusive of specie, except where the contrary is expressly stated. A decennial table of movements of specie will be found at the end of Subsection A.

IMPORT CONTROL.

The Import Control Regulations, which came into force on 7th December, 1938, prohibit the importation of all goods into New Zealand except under a license or unless exemption from a license is granted by the Minister of Customs. Application for a license must be made in the prescribed form to the Collector of Customs at the port at which it is desired to import the goods. The policy generally is to ensure that after overseas debt commitments have been met from the sterling funds the maximum funds available will be provided for the importation of essential commodities, with particular regard to the needs of primary and industrial production in the Dominion. In the consideration of a license existing stocks and probable requirements are taken into account, and also the possibility of manufacturing in New Zealand goods which were formerly imported. A further important feature of the policy is the desire to give the greatest possible preference to the goods of United Kingdom manufacturers.

The issue of import licenses to date has been for six-monthly periods, the first period commencing on 1st January, 1939. The brief period from 7th December to 31st December, 1938, was regarded as a preliminary one during which all goods imported were exempt from a license, provided that they were in transit prior to the date of the regulations (5th December) and also that they arrived in the Dominion not later than 31st December. Reductions were made in certain classes of imports during the first half of 1939, the basic period taken being the first half of 1938; but certain factors referred to later operated to more than offset these reductions, and total imports during the first half of 1939 were actually neatly £1,100,000 more than for the similar period of 1938. Moreover, there was no perceptible change in the direction of trade, and goods of United Kingdom origin imported during the period of 1939 were, expressed as a percentage of total imports, slightly less than in 1938. The factors responsible for increased imports in 1939 were: (1) additional imports of plant and materials were made for the development of industry within the Dominion, and (2) the provision requiring unlicensed goods to be landed by 31st December, 1938, was partly relaxed. Considerable quantities of goods were on order prior to the introduction of control, and provided they were not abnormally large and were the subject of orders despatched overseas before 5th December, 1938, they were admitted without restriction.

The basis for the issue of licenses for the second half of 1939 was announced on 22nd April. Although the fall in sterling funds had been arrested, it was anticipated that—mainly because of lower wool-prices—the return from exports in 1939 would be less than in 1938. Accordingly it was considered necessary to apply greater restriction for the second half of 1939, the basic period being the second half of 1938. The majority of imports were restricted, in some cases to the extent of 100 per cent., and a maximum preference was given to the United Kingdom. A detailed list of the commodities restricted is beyond the scope of this publication, and it is possible to mention only a few of them. Complete prohibition was applied to, among others: biscuits; chewing-gum; confectionery; matches; soups; cigars, cigarettes, and cut tobacco; beer, whisky, and other alcoholic beverages; various articles of apparel; bags and sacks; carpets, linoleum, and other floor-coverings; bottles; musical instruments; wireless receiving sets; hand lawn-mowers; storage batteries and parts; electric irons; vacuum cleaners; tinware; assembled motor-vehicles; paints and varnishes; sawn dressed timber; and coal. Imports of unassembled or completely knocked down motor-vehicles from all sources were cut by 40 per cent., but consideration was also given to the granting of licenses for additional unassembled vehicles up to 60 per cent. of the value of assembled vehicles imported during the first half of 1938. Consideration was also given to the granting of licenses where importers were able to arrange supplies without drawing on the sterling funds, and a result of this arrangement has been that many commodities on the completely prohibited list are still in fair supply. The importation of fruits, vegetables, and certain other products was placed under the control of the Internal Marketing Division of the Marketing Department.

Conditions for the third licensing period, from January to June, 1940, were made known on 20th October, 1939. Imports for this period are again based on the 1938 level, and, owing to the prospective additional call on sterling funds for loan repayments and war requirements, they are subject to even greater restriction than before. Although a wide range of goods, generally materials for industry and other essential commodities, carries no restriction other than a confinement to the 1938 level, and many other goods are cut only when from a source other than the United Kingdom, the restriction generally is severe. The policy of maintaining a maximum volume of trade with the United Kingdom is emphasized, but it is recognized that owing to the uncertainties of war it may not always be possible to obtain imports from that source, in which case it is proposed to give preference to some other British country. Imports for the new period are scheduled in seven lists, the measure of restriction being indicated in each case. Owing to the lengthy detail, it is impossible here to specify individual commodities. The lists are as follows:—

  • List A.—Goods which may be admitted from any country subject to the proviso that in the meantime licenses will be limited to the value of the imports of such goods during the corresponding period of 1938.

  • List B.—Goods which may be admitted from the United Kingdom up to the 1938 level but subject to restrictions if from other sources.

  • List C.—Goods subject to a reduction of 25 per cent. if from the United Kingdom and greater restriction if from other countries.

  • List D.—Goods subject to a reduction of 50 per cent. if from the United Kingdom and mostly total prohibition if from other sources.

  • List E.—Goods subject to a general reduction, mostly severe, and in some cases complete prohibition if from countries other than the United Kingdom.

  • List F.—Goods in respect of which no basic allocation is being made but for which applications will be considered individually. In all such cases the applicant for a license is obliged to furnish full details of stocks and any other available information to establish that the goods are actually required.

  • List G.—Goods for which no licenses will be granted in the meantime for imports from any country.

It should be noted that the possession of a license does not necessarily give the importer the right to an immediate claim on sterling. The procedure on obtaining a license is for the importer to apply for sterling through his bank to the Reserve Bank. Sterling is allocated as it becomes available, frequently in instalments extending over periods up to twelve months. It had been hoped to dispense with this method for the third licensing period, as it is an arrangement not universally acceptable to overseas manufacturers, but for various reasons no change in the system has yet been found practicable.

CLASSIFICATION OF IMPORTS.

A classification of imports under five broad divisions is given in the following table for the last ten years. Taken in conjunction with a table based on the same classification which is given in Subsection B (Exports), the figures show plainly how New Zealand's export trade is derived predominantly from the products of her primary industries, and her import trade consists very largely of manufactured or partly manufactured goods.

Year.Food, Drink, and Tobacco.Raw Materials and Articles mainly unmanufactured.Articles wholly or mainly manufactured.Miscellaneous and Unclassified.Bullion.Total Merchandise.
 ££££££
1,9296,635,6892,289,48339,496,050306,1077,14348,734,472
1,9306,066,5421,889,67336,121,373259,0952,97144,339,654
1,9314,453,2121,437,49520,460,797144,2502,39726,498,151
1,9324,180,2841,234,75419,072,507156,7521,70924,646,006
1,9334,016,8421,157,53220,257,535147,4032,05425,581,366
1,9344,510,4281,377,41025,241,859207,1312,72431,339,552
1,9355,038,7191,564,16329,497,032214,8432,51036,317,267
1,9365,472,1121,691,79736,848,951241,9574,06944,258,886
1,9376,701,2991,953,12047,203,577299,1493,55056,160,695
1,9387,132,6592,243,14245,808,987233,0574,34455,422,189

The principal groups of commodities imported are clothing and textiles, metals and machinery, sugar, tea, alcoholic liquors, tobacco, paper and stationery, oils, motor-vehicles and accessories, chemicals and drugs, manures, and timber. It will be seen that articles wholly manufactured or mainly manufactured account for upwards of 80 per cent. of total merchandise imports. It should not be assumed, however, that items included in this class necessarily compete with New Zealand manufactures. In the first place, a large proportion of imports of manufactured commodities is comprised of goods which cannot be produced economically in New Zealand—e.g., cotton piece-goods, pigments—or products of industries which have never been established in New Zealand. A further point to be taken into consideration is the fact that many imports of manufactured or semi manufactured goods form the raw material of further factory processes in the Dominion—e.g., piece-goods.

Imports for the year 1938 are classified in the following table on the same basis as that used in the case of exports on page 248. The grouping by countries is on the basis of country of origin.

IMPORTS, 1938.

United Kingdom.Other British Countries.United States of America.Other Foreign Countries.Total Merchandise.
* At face value.
 £££££
Grain2,224926,47171020,368949,773
Milled products64,523145,860392487211,262
Fish41,630127,2357,94562,148238,958
Meat (including poultry and game)4332,007271382,605
Butter, cheese, and eggs719537..1,2732,529
Fruits, fresh and dried..780,565143,70357,864982,132
Preserved fruits and vegetables, fruit-pulp, jams, &c.30,233276,04214,0809,316329,671
Live animals for food..........
Sugar42317,8904,190518,374540,877
Tea125812,969..3,766816,860
Alcoholic beverages520,70197,135130129,023746,989
Tobacco534,301153,833351,1042,8881,042,126
Coal682107,418....108,100
Ores, concentrates, and scrap2,0313,006389946,069
Iron and steel—     
Pig, ingots, &c.34,307120,91314451155,415
Bar, rod, plate, sheet, &c.1,562,229754,61120,5843,4592,340,883
Other manufactures of iron and steel2,520,794824,082297,612197,2213,839,709
Agricultural implements and machinery103,34884,272128,33432,161348,115
Electrical machinery and apparatus2,210,405498,231401,170207,5133,317,319
Other machinery1,978,312583,0621,699,605343,0834,604,062
Motor-cars and parts thereof3,759,7922,046,995822,97844,2706,674,035
Other metals and metal manufactures637,810367,20061,034223,5211,289,565
Cotton, raw......515515
Flax, hemp, and raw jute (including tow)4213,966..31,09135,478
Wool, raw..10,112....10,112
Yarns and threads336,226111,1711,03912,459460,895
Cotton piece-goods1,225,41321,47116,555265,3951,528,834
Woollen piece-goods763,8471,80410110,397776,149
Other piece-goods512,756183,47230,475551,6381,278,336
Other textiles1,213,504455,18241,077243,9901,953,753
Apparel1,371,397395,08450,353396,5882,213,422
Footwear355,634252,00813,79962,979684,420
Chemicals, drugs, dyes, &c.1,058,118538,772170,733193,8201,961,443
Fertilizers128,893242,96238327,433699,326
Earthenware (including bricks, glass, &c.)494,59785,03834,838170,432784,905
Wood, timber, and manufactures thereof (including wood-pulp)29,555602,07483,013182,887897,529
Newsprint108,758416,358..2,239527,355
Paper and cardboard, &c.684,677375,908184,495295,7311,540,811
Seeds and nuts for expressing oil therefrom..1,436..2871,723
Animal and vegetable oils, fats, greases, and waxes151,65743,3206,26747,690248,934
Oils—Petroleum, crude and refined82,2808,603890,3941,963,7372,945,014
Hides, skins, and furs (undressed)1,65620,09957,17324,920103,848
Leather and manufactures thereof (except clothing and footwear)148,40377,42374,12019,673319,619
Rubber, raw..4,904..3,1608,064
Gold and silver bullion1,4091,95198044,344
Other merchandise3,858,4651,654,9451,246,9021,129,9947,890,306
    Total merchandise26,532,68814,238,3976,856,1327,794,97255,422,189
Gold and silver coin*13,109......13,109
Other coin*18,165......18,165

Since 1914 the statistics of both imports and exports have been classified according to the nature of the commodity, which assembles the items in well-defined classes as shown in the following table, where the imports for the year 1938 are given under the various classes:—

No.Class.Value in 1938.
* At face value.
  £
IFoodstuffs of animal origin (excluding live animals)313,837
IIFoodstuffs of vegetable origin, and common salt4,000,221
IIIBeverages (non-alcoholic) and substances used in making up the same991,075
IVSpirits and alcoholic liquors818,043
VTobacco and preparations thereof1,042,126
VILive animals54,815
VIIAnimal substances (mainly unmanufactured), not being foodstuffs134,803
VIIIVegetable substances and non-manufactured fibres815,954
IXaApparel3,202,637
IXbTextiles5,115,448
IXcManufactured fibres451,683
XOils, fats, and waxes3,333,770
XIPaints and varnishes466,794
XIIStones and minerals used industrially129,016
XIVaMetal, unmanufactured, partly manufactured, and ores1,145,135
XIVbMetal manufactures, other than machinery and machines7,067,449
XVMachinery and machines8,039,142
XVIaIndiarubber and manufactures thereof (not including tires)234,795
XVIbLeather and manufactures thereof, including substitutes319,619
XVIIaTimber622,396
XVIIbWood, cane, and wicker manufactures208,284
XVIIIEarthenware, china, glass, stoneware, cement, and cement materials953,743
XIXaPaper1,641,391
XIXbStationery1,197,063
XXJewellery, time-pieces, and fancy goods950,852
XXIOptical, surgical, and scientific instruments838,567
XXIIaDrugs, chemicals, and druggists' wares1,918,417
XXIIbManures699,326
XXIIIaVehicles7,222,174
XXIIIbMiscellaneous1,493,614
     Total merchandise55,422,189
XIIISpecie*31,274

The next classification presented is that according to the purpose or use of commodities, particulars being given for the last five years. It should be mentioned that the absence of essential information in regard to actual purpose or use of a number of commodities has created certain difficulties, necessitating the employment of arbitrary decisions in some instances. Also, where certain commodities are used for more than one purpose it has not been possible to segregate the portion applicable to each. In such doses the whole import has been assessed according to the principal use of the article commodity in New Zealand.

Class of Merchandise.1934.1935.1936.1937.1938.
Producers' materials—£Values. ££££
  Building and construction1,797,5332,377,1263,032,9303,877,7924,140,912
  Farm789,632868,0871,049,0951,345,9511,212,736
  Manufacturing—     
      Food1,338,5921,535,7261,541,4581,995,7252,154,417
      Beverages35,96877,37960,64380,95557,464
      Tobacco185,504197,933227,356247,336324,222
      Textiles (apparel or household goods)3,799,9473,933,0154,607,0705,334,8203,958,222
Other5,158,1415,768,2746,789,6638,343,0608,158,703
Fuels and lubricants1,873,2171,895,1672,535,2342,899,2663,092,282
Auxiliary aids to production830,609888,305919,1731,011,919992,104
Producers' equipment—     
  Farm654,126899,4561,245,0021,693,0881,609,083
  Commerce and industry1,985,4842,807,2154,114,5295,532,3336,263,658
Transport equipment—     
  Railway236,473285,320320,071461,1081,137,272
  Road3,557,9514,531,6925,949,3657,633,7967,040,509
  Other49,254185,38533,989132,720205,322
Consumers' goods—     
  Food1,282,1751,423,3811,515,1631,954,4332,145,110
  Beverages1,317,6601,291,2451,498,0501,662,6011,651,928
  Tobacco411,640571,451651,971775,597823,555
  Clothing and accessories2,231,5012,242,7412,554,7853,633,5423,071,639
  Household equipment1,467,5661,806,0612,293,7403,317,0703,045,765
  Other2,325,5912,678,1433,215,5334,021,5174,027,450
Unclassified10,98854,165104,066206,066309,836
    Totals, merchandise imports31,339,55236,317,26744,258,88656,160,69555,422,189

To facilitate a study of the trend during the period covered by the table, the results are now given in percentage form.

Class of Merchandise.1934.1935.1936.1937.1938.
Percentage of Total Merchandise Imports.
Producers' materials—Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
  Building and construction5.746.546.856.917.47
  Farm2.522.392.372.402.19
  Manufacturing—     
    Food4.274.233.483.553.89
    Beverages0.110.210.140.140.10
    Tobacco0.590.550.510.440.59
    Textiles (apparel or household goods)12.1210.8310.419.507.14
  Other16.4615.8815.3414.8614.72
Fuels and lubricants5.985.225.735.165.58
Auxiliary aids to production2.652.452.081.801.80
Producers' equipment—     
  Farm2.092.482.813.022.90
  Commerce and industry6.347.739.309.8511.30
Transport equipment—     
  Railway0.760.790.720.822.05
  Road11.3512.4813.4413.5912.70
  Other0.160.510.080.240.37
Consumers' goods—     
  Food4.093.923.423.483.87
  Beverages4.203.563.392.962.98
  Tobacco1.311.571.471.381.49
  Clothing and accessories7.126.175.776.475.54
  Household equipment4.684.975.185.905.50
  Other7.427.377.277.167.26
Unclassified0.040.150.240.370.56
    Totals, merchandise imports100.00100.00100.00100.00100.00

In the next table particulars are given of New Zealand's import trade for the years 1934-38 according to the stage of production or degree of manufacture of commodities, the divisions used, following the classification of the League of Nations, being “crude,” “simply transformed,” and “more elaborately transformed.” In addition to total imports, the classification on these lines of the two main classes of commodities—“producers' materials” and “consumers' goods”—is shown.

1934.1935.1936.1937.1938.
Producers' materials—£££££
  Crude1,586,7901,776,8471,831,1632,732,8052,827,052
  Simply transformed3,681,8944,513,4065,465,7136,813,1886,834,787
  More elaborately transformed7,836,6338,467,28710,011,33911,679,64610,344,837
Consumers' goods—     
  Crude1,473,3371,422,6121,583,7531,823,9231,892,920
  Simply transformed164,779183,667206,050248,466264,315
  More elaborately transformed7,398,0178,406,7439,939,43913,292,37112,608,212
Total imports of all merchandise—     
  Crude3,503,8003,652,9513,946,0835,066,4235,465,555
  Simply transformed5,627,9936,602,7218,177,89210,009,66710,315,299
  More elaborately transformed22,207,75926,061,59532,134,91141,084,60539,641,335
    Totals, all merchandise imports31,339,55236,317,26744,258,88656,160,69555,422,189

DIRECTION OF IMPORT TRADE.

The import trade of the Dominion, though spread over more countries than the export trade, is yet confined mainly to the United Kingdom, Australia, the United States, and Canada. In the early years of settlement Australia was the source from which the young colony drew most of its supplies, and for a long period imports from Australia overshadowed imports from the United Kingdom. The proportion of imports from Australia, however, decreased steadily from 60 per cent. in 1862 to 8 per cent. in 1923. A slight recovery was shown in the two following years, after which there was a progressive decline to less than 7 per cent. in 1929, since when the trend has been upward.

Imports from the United Kingdom comprised between 60 per cent. and 70 per cent. of total imports during the “eighties” and “nineties”; so that, at that time, the United Kingdom and Australia between them supplied approximately 80 per cent. of the total imports of the Dominion. In the decade immediately preceding the war of 1914-18 the United Kingdom supplied about 60 per cent. of total imports; but, with the disruption in trading relations during that war, other countries—notably the United States and Japan—increased their share of New Zealand's import trade.

The post-war economy of New Zealand and other countries has been characterized by a marked growth in the diversity of products entering into international trade, despite the fact that in recent years the total quantum of such trade, though recovering, is still materially below the pre-depression levels. Notable examples of important new industries are to be found in the growth of the motor, artificial silk, motion picture, and (more recently) radio industries. International trade in the products of these and certain other new industries became almost a monopoly of the United States; in fact, the dominating position of that country in such spheres of industrial activity has been seriously challenged only recently. The traditional position of the United Kingdom in the forefront of manufacturing activity was shaken severely by circumstances arising from the 1914-18 war; her textile industries, for example, being subjected to acute and increasing foreign competition. In the circumstances, it is not surprising to find that the proportion of goods of United Kingdom origin included in New Zealand's imports of merchandise fell from about 60 per cent. before the war to about 46 per cent. in the late “twenties” (the lowest actual percentage being 45.67 per cent. in 1926).

From 1930 onwards there was a definite improvement in the relative position of the United Kingdom in New Zealand's import trade, partly due to New Zealand's tariff policy, in which preference to Empire countries plays an important part. During each of the five years, 1931-35, over 50 per cent. of our imports of merchandise were of United Kingdom origin, this recovery having been made despite the growth in imports from Australia of certain goods—e.g., iron and steel—which were formerly almost entirely imported from the United Kingdom. In 1936 and 1937, however, the proportion fell slightly below the 50 per cent., and in 1938 there was a sharp decline to 47.9 per cent. A more detailed treatment of changes in the import trade between British and foreign countries is given in a later paragraph under the heading “Imports of British and of Foreign Origin.”

The United States was sending goods to New Zealand almost from the foundation of the colony, and the share of the imports received from that country steadily increased till in the first decade of the present century it was 11 or 12 per cent. The adoption of Imperial preference seems to have caused a temporary drop in the figure to about 7 per cent., though the proportion maintained a steady increase for several years after the 1914-18 war, and, indeed, considerably surpassed its old level. During the last four years about one-eighth of the total imports came from the United States, this being considerably lower than the pre-depression proportion of more than one-sixth.

India captured the New Zealand jute-market in the early “eighties,” and since then there has been a regular import of corn-sacks, woolpacks, &c. In former times the colony imported its sugar from Fiji, but in late years Fiji has been largely supplanted by the Netherlands East Indies and Cuba. Similarly, the import of tea from China has given way to imports from Ceylon.

Imports from Japan increased substantially during the latter years of the 1914-18 war period, but in 1922 the value fell away to about one-third of what it had been two years previously. From 1922 onwards there was little variation until the advent of the depression, 1931 recording the low figure of £332,281. Commencing with the following year a steady and progressive increase commenced, culminating in the record total of £1,629,191 in 1937. The latest year, however, recorded a decrease of approximately 25 per cent. below the 1937 total.

The table which follows shows imports during the last twenty years from the United Kingdom, other British countries, and from foreign countries. The information is shown on the basis both of country of shipment and of country of origin.

IMPORTS.

Year.Country of Shipment.Country of Origin.Total Merchandise Imports.
United Kingdom.Other British Countries.Foreign Countries.United Kingdom.Other British Countries.Foreign Countries.
 £££££££
1,91911,496,5748,970,1029,842,49111,173,3227,983,76611,152,07930,309,167
1,92029,767,24116,995,63914,790,97328,513,81215,305,51217,784,52961,553,853
1,92121,257,65411,211,07010,275,39820,635,05710,316,21611,792,84942,744,122
1,92219,246,5698,561,2957,018,21018,109,6867,709,1799,007,20934,826,074
1,92323,991,1619,840,0399,532,78322,517,6959,334,79611,511,49243,363,983
1,92424,904,17813,169,64210,453,78323,203,82512,627,08412,696,69448,527,603
1,92527,233,35913,219,56411,972,83425,542,65212,688,97414,194,13152,425,757
1,92624,286,61011,604,64213,920,51122,749,60611,246,33515,815,82249,811,763
1,92722,678,5829,578,87312,525,21121,463,8349,253,44714,065,38544,782,666
1,92822,489,7169,809,28112,545,10521,247,1119,520,91414,076,07744,844,102
1,92923,675,44210,811,40314,247,62722,496,63810,534,82615,703,00848,734,472
1,93021,938,7869,546,66112,854,20721,102,1169,231,17914,006,35944,339,654
1,93113,834,7445,324,8127,338,59513,306,0015,141,8758,050,27526,498,151
1,93212,906,4205,136,2766,603,31012,575,9544,972,4687,097,58424,646,006
1,93313,504,2455,858,0186,219,10313,126,0325,669,7336,785,60125,581,366
1,93416,152,7627,592,5137,594,27715,789,7617,349,8528,199,93931,339,552
1,93518,519,6008,592,1099,205,55818,283,0968,320,0649,714,10736,317,267
1,93622,078,95910,585,08411,594,84321,851,52410,341,09012,066,27244,258,886
1,93728,184,89113,750,26914,225,53527,861,27513,430,22114,869,19956,160,695
1,93826,886,47514,522,53614,013,17826,532,68814,238,39714,651,10455,422,189

The next table shows in more detail the principal countries from which New Zealand draws its imports, figures on the basis of country of origin being given for each of the five years 1934 to 1938, and on the basis of country of shipment for the year 1938.

IMPORTS FROM PRINCIPAL COUNTRIES.

Country.On Basis of Country of Origin.On Basis of Country of Shipment.
1934.1935.1936.1937.1938.1938.
* Not including Austria.
British Countries££££££
United Kingdom15,789,76118,283,09621,851,52427,861,27526,532,68826,886,475
Ceylon585,689633,594750,982823,470818,192802,744
India667,552571,630554,100579,922565,285555,189
Union of South Africa56,09255,801119,405131,9709,68290,266
Canada2,098,6102,450,4573,326,8784,563,2874,855,3154,834,462
Australia3,238,1243,957,3984,941,3766,595,6057,159,4287,468,987
Fiji103,16680,09095,93395,573112,538142,163
Nauru Island201,0171,094136,191169,301140,647140,685
Western Samoa53,74755,67251,32966,916104,814115,728
Foreign Countries      
Belgium137,139217,513409,214545,534517,782487,027
Czechoslovakia79,892120,590142,218194,746189,911161,450
Finland21,80431,69446,607109,521116,065111,443
France240,813222,049215,111232,464235,044198,857
Germany*482,644534,674748,427972,7601,119,0131,003,660
Italy192,432225,15745,275174,917163,745142,260
Netherlands139,611161,480210,401268,521269,798252,207
Sweden243,314285,792343,982368,908404,828375,113
Switzerland91,28397,208140,797181,479260,360220,169
Bahrein Islands......53,087247,815247,815
China98,45497,251151,353143,644121,523108,989
Iran3,7584,71559,82517,934127,811127,333
Japan836,5951,100,1501,328,1951,629,1911,208,5941,197,225
Netherlands East Indies1,381,9741,436,9641,772,6422,238,4132,160,5242,159,740
United States of America3,749,5594,535,0605,605,3796,962,5186,856,1326,647,278

Direct shipments from the United Kingdom in 1938 exceeded by £353,787 the imports of goods produced in that country. In view, however, of the considerable quantities of British goods that enter New Zealand by way of Australia it would not be correct to take that figure as fully measuring the re-export trade done by Great Britain in goods from abroad intended for the Dominion.

Australia acts as a re-exporting centre for a certain proportion of goods received from India end Ceylon. British West Africa and the British West Indies both produce more of the imports than they ship direct. The figures for Canada show a small balance in favour of goods of Canadian origin. Goods of United States origin exceeded direct imports from that country by £208,854 in 1938.

The following table shows for the last ten years the percentage of total imports (excluding specie) from each of the principal countries concerned.

IMPORTS (COUNTRY OF ORIGIN).

Country.1929.1930.1931.1932.1933.1934.1935.1936.1937.1938.
* Not including Austria.
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
United Kingdom46.1647.5950.2151.0351.3150.3850.3949.3749.6147.87
Canada9.838.955.074.494.956.706.757.528.138.76
India1.571.501.621.582.262.131.581.251.031.02
Ceylon1.901.662.551.572.161.871.751.701.471.48
Union of South Africa0.210.220.290.340.200.180.150.270.230.16
Australia6.696.827.839.6110.0710.3310.9011.1611.7412.92
Fiji0.360.470.430.470.420.330.220.220.170.20
Other British countries1.061.201.632.112.121.921.571.251.141.15
Totals, British countries67.7868.4169.6371.2073.4973.8473.3172.7473.5273.56
Germany*1.932.292.372.051.841.541.471.691.732.02
France1.491.431.351.200.960.770.610.490.410.42
Belgium1.211.061.200.800.670.440.600.920.970.94
Japan1.281.331.251.942.642.673.033.002.902.18
Netherlands East Indies2.371.913.503.533.904.413.964.013.993.90
United States of America19.1217.8015.9514.4711.5411.9612.5012.6612.4012.37
Other foreign countries4.825.774.754.814.964.374.524.494.084.61
Totals, foreign countries32.2231.5930.3728.8026.5126.1626.6927.2626.4826.44

Prior to the 1914-18 war period, imports from the United Kingdom represented about 60 per cent. of the total, and those of United Kingdom origin would appear on this basis to have been about 55 per cent. of the aggregate. The latter are now a little less than one-half of the total.

For many years prior to 1938 the United States of America ranked next to the United Kingdom in the list of exporters to New Zealand. The highest percentage (20.08) attained by the United States in recent years was reached in 1926, the lower level of subsequent years being due to decreases in motor-vehicles and motor-spirits. Motor-spirits now make up the greater part of the reduced total, motor-vehicles having undergone a pronounced decline since 1929 in favour of the United Kingdom, and, in more recent years, of Canada. In 1929 the United States supplied (on a value basis) 41 per cent. of the motor-cars entering the Dominion and 53 per cent. of the lorries, trucks, vans, and buses; in 1938 the corresponding percentages were 10 and 23 respectively. Important factors in the decline in trade with the United States have been the high rate of exchange against New Zealand, particularly before the United States currency measures of 1933 and 1934, and the preferential tariff favouring importations of British goods.

Imports of Australian origin in 1938 were £563,823 greater than in 1937, and, with the exception of 1920, were the highest ever recorded. Australia ranked next in importance to the United Kingdom as a source of the Dominion's imports in 1938, this position having been held by the United States for many years. Iron and steel have made a remarkable contribution to the increase, while there have also been noteworthy advances in confectionery, dried and fresh fruits, tobacco, machinery, wire, paints and varnishes, apparel, timber, stationery, books, papers, and music, fancy goods and toys, and cigarette-papers.

Imports of Canadian origin, after a temporary decline during the depression, have risen again with the marked improvement in the motor trade and as a result of the Canada-New Zealand Trade Agreement commencing in May, 1932 (vide next subsection).

IMPORTS OF BRITISH AND OF FOREIGN ORIGIN.

The influences tending towards a greater diversity in the sources of New Zealand's imports in the post-war years are briefly referred to in a preceding paragraph (p. 275). The following diagram illustrating the trend in the direction of our imports shows the effect of such influences, and the recent recovery in imports from Empire sources.

VALUE OF MERCHANDISE IMPORTS (IN NEW ZEALAND CURRENCY).

Semi-logarithmic Scale.

From the tables given under the preceding heading, it will be seen that the great bulk of New Zealand's imports of merchandise are of British origin, the proportion of total imports derived from British countries having varied between 73 and 74 per cent. during each of the last six years, as compared with about 68 per cent. in 1926-30. The strong bias towards Imperial preference in the Customs tariff (which, however, is low relative to that of most countries, even for imports of foreign origin), and the virility of Empire manufacturers, notably Australian and United Kingdom, in meeting foreign competition, have been important factors contributing to the recent improvement in the proportion of imports of British origin. The Ottawa Agreement, which resulted in increases in the margin of Imperial preference in the tariff on certain commodities, and the placing of several commodities previously dutiable on the free list, if of Empire origin, must also be mentioned as a factor of considerable moment.

One of the outstanding facts brought into relief by the foregoing diagram is the recent marked relative expansion in imports from Australia. The increase has been achieved despite the fact that New Zealand's imports of certain natural products—e.g., timber and coal—from Australia are now on a considerably lower level than was normal for many years prior to 1930. The decline in imports of these items has been more than compensated for by increased imports from Australia of certain manufactured and semi - manufactured goods, notably iron and steel. Australian industries have advanced under the stimuli of a depreciated currency and tariff protection to the stage when they can compete effectively in the New Zealand market with the manufactured products of the older countries. The comparative nearness of Australia to New Zealand is a very strong factor operating to the benefit of Australian firms in the New Zealand import market, the closeness of personal contact possible between importers and the Australian manufacturers, the short period in which goods can be delivered after ordering, and the intimate knowledge of New Zealand requirements, all acting strongly to the mutual advantage of the Australian exporter and the New Zealand buyer. Moreover, the New Zealand market presents a very strong attraction to Australian firms, since the potential demand in this country is of sufficient size to represent a very profitable addition to the home market. This stimulus does not act with anything like comparable force in the case of United Kingdom and continental manufacturers.

Despite the recent growth in New Zealand's imports from Australia of commodities which compete with the products of the United Kingdom and other countries catering for export markets in manufactured goods, it will be noted from the diagram that the United Kingdom has in recent years maintained its share in the New Zealand market. New Zealand's import trade from the Empire as a whole has grown at the expense of its imports from foreign countries—reversing the trend which became evident between 1922 and 1929, during which period imports from foreign countries gained ground—though not to a marked extent.

The predominance of imports from British countries in New Zealand's import trade is very marked, the following table showing the percentage of imports from British and foreign countries for each of the principal members of the British Commonwealth of Nations being of particular interest in this connection:—

Country.Percentage of Total Imports.
Imports of British Origin.Imports of Foreign Origin.
New Zealand (1938)73.626.4
Australia (1937-38)59.140.9
India (1937-38)54.845.2
Union of South Africa (1938)53.047.0
United Kingdom (1938)40.459.6
Canada (1937-38)29.270.8

It will be seen that imports from British countries form a much higher percentage of total imports in the case of New Zealand than for any of the other countries listed. In respect of imports of United Kingdom origin New Zealand also occupies a leading position, as is illustrated by the following table:—

 Imports of United Kingdom Origin: Per Cent. of Total Imports.
New Zealand (1938)47.9
Union of South Africa (1938)43.6
Australia (1937-38)41.5
India (1937-38)29.9
Canada (1937-38)18.2

On a per caput basis New Zealand is the best customer of the United Kingdom, as is shown by the following summary of a table published by the British Board of Trade. All countries taking United Kingdom exports to the value of £1 (sterling) per head or more in 1938 are included.

Countries to which consigned.Exports of United Kingdom Merchandise (per Head of Population), Year 1938.
 £ s. d.
British countries—(Sterling).
  New Zealand11 19 11
  Eire6 17 8
  Australia5 10 11
  Union of South Africa3 19 2
  British West Indies2 13 9
  British Malaya2 3 7
  Canada2 0 6
Foreign countries—..
  Denmark4 3 0
  Norway2 11 11
  Sweden1 17 3
  Netherlands1 10 3
  Argentina1 10 1
  Finland1 8 9

ORIGIN OF PRINCIPAL IMPORTS.

The table which follows shows by main countries of origin details of the principal imports into New Zealand during each of the last five years.

ORIGIN OF PRINCIPAL IMPORTS.

Country of Origin.1934.1935.1936.1937.1938.
* Not including Austria.
Confectionery.
 £££££
United Kingdom25,85424,47625,57256,45149,164
Canada3023834122,9501,558
Australia31,38136,58237,93759,17472,994
France1,1321,2211,500751459
United States of America9642,8001,8412,2413,846
Other countries9351,0935511,0501,232
    Totals60,56866,55567,813122,617129,253
Fruits (Dried).
Union of South Africa4,6123,02820,90419,2026,585
Australia255,577293,824329,523338,860321,242
Iraq45,59130,53021,05148,92939,049
Turkey10,80310,56413,56815,60413,604
United States of America51,43361,87865,15689,69586,374
Other countries2,4788085256,8364,975
    Totals370,494400,632450,727519,126471,829
Fruits (Fresh).
 £££££
British West Indies7,80219,73917,86114,17015,042
Canada8511,4591,6612,3592,479
Australia93,45880,25094,185172,182241,063
Fiji86,65464,11375,62868,68286,940
Norfolk Island..963..1,067271
Tonga15,50314,29510,6457,5225,697
Western Samoa48,69851,41745,41162,101101,055
United States of America51,47354,74649,05661,73657,329
Other countries1,0821,4782,5433,699427
    Totals305,521288,460296,990393,518510,303
Sugar.
United Kingdom11,75511,4918,4978,4873,171
Australia7,7738,0899,4717,5727,397
Fiji11,2419,73410,54615,10913,528
Netherlands75619,53129,42328,7208,281
Netherlands East Indies526,421580,884402,387538,006464,898
Cuba45,53945,524188,206109,11956,843
United States of America39,63433,30512,34710,51544,982
Other countries3,0312,0802,4026,6362,170
    Totals646,150710,638663,279724,164601,270
Tea.
Ceylon567,594610,496723,354785,049797,000
India144,47231,54017,71622,84515,969
China6,3215,6086,2775,9513,124
Netherlands East Indies4,110..11312..
Japan2,4968362,4618,473550
Other countries17165106241217
    Totals725,164648,545750,027822,571816,860
Tobacco and Preparations thereof.
United Kingdom319,363431,251444,637556,359534,301
Australia42,06856,03392,841108,377147,715
United States of America196,433205,900246,310266,345351,104
Other countries6,65811,24810,5849,4479,006
    Totals564,522704,432794,372940,5281,042,126
Hosiery.
United Kingdom153,087108,642104,039205,198168,596
Canada86,18061,416103,967130,788111,764
Australia17,24013,43319,21747,42818,602
Czechoslovakia5,1915,6305,24616,3245,172
Germany*4,9553,7928,97012,17113,801
Spain83..1291,793..
Japan5,3233,2033,60431,56145,752
United States of America1502399211,4751,413
Other countries150275443609197
    Totals272,359196,630246,536447,347365,297
Hats, Caps, and Millinery.
United Kingdom91,07990,513112,823143,576137,679
Canada1,1461,73712,96619,39720,016
Australia11,12014,20114,27319,90015,853
Czechoslovakia1,2111,1782,7045,1515,323
France3,8966,4562,9883,8782,307
Germany*5,3603,8454,69912,3599,189
Italy5,1793,116682,0351,726
Switzerland1,4181,0602,5092,3921,762
China5,7093,9706,1704,9778,074
Japan12,44915,18010,99811,0938,400
United States of America4,5566,6777,0843,3074,400
Other countries3,7654,3454,4904,5513,717
    Totals146,888152,278181,772232,616218,446
Miscellaneous Apparel and Ready-made Clothing.
 £££££
United Kingdom789,464843,226900,5241,243,4411,199,321
Canada9,44416,29536,398100,875255,109
Australia43,06440,40664,681101,95279,921
Belgium2,9811,7269,01411,14611,392
Czechoslovakia15,19516,68923,44327,84130,923
France7,9334,8184,3476,64310,493
Germany60,87246,90855,55058,26855,803
Austria4,2462,5933,50010,2128,214
Hungary3301,2585,56013,61310,902
Italy27,00624,9886,65929,13023,928
China2,8714,1265,3966,5959,704
Japan50,21864,00690,075114,235121,035
United States of America19,03132,67042,30151,87941,902
Other countries3,5462,1783,3318,72010,787
Totals1,036,2011,101,8871,250,7851,784,5501,869,434
Boots and Shoes.
United Kingdom241,390253,597276,363422,417316,647
Hong Kong2,1784702,9153,3306,192
India85,3004,72512,20814,722
Canada75,350100,380109,546155,816163,051
Australia42,43140,84151,47139,25819,045
Czechoslovakia8,46915,4656,29513,6625,400
Japan56,03250,14050,87552,36547,530
United States of America8,0745,1255,0997,3914,472
Other countries8707381,4821,577964
Totals434,802472,056508,771708,024578,023
Miscellaneous Drapery.
United Kingdom355,716373,934419,115641,348514,466
Canada4,9261,0393,81614,19913,094
Australia3,6234,3538,12418,07514,442
Czechoslovakia3,5375,4846,6448,1549,501
France9,3668,3689,6307,8719,368
Germany*10,41810,46417,05221,99320,515
Switzerland17,23616,25516,34421,68827,295
China6,2848,56616,38516,42913,691
Japan15,18824,96841,65878,65475,697
United States of America1,3642,2872,7837,4849,006
Other countries10,52311,61010,55220,75127,151
Totals438,181467,328552,103856,646734,226
Cotton, Linen, and Canvas Piece-goods.
United Kingdom1,521,4011,502,7671,575,4201,640,4881,217,833
Canada2,8638,80210,67111,47012,567
Australia8,5677,7136,9668,4592,671
Belgium34,14347,43272,06876,51575,392
France2,6693,7943,8382,8572,059
Germany*8,2745,0088,60013,16817,342
Netherlands3,5053,3733,69210,73212,297
Switzerland4,3673,2903,6957,7109,969
Japan89,435141,586268,834279,935229,338
United States of America20,56319,88218,35620,02416,543
Other countries7,5028,1986,4248,69512,361
Totals1,703,2891,751,8451,98,5642,080,0531,608,372
Silk, &c., Piece-goods.
United Kingdom371,013291,774335,225430,032329,500
Canada4,59339,03361,20222,52429,253
Australia68,04730,75835,67046,83512,931
Czechoslovakia1,6652,7813,7047,51913,357
France40,09633,88727,16619,90325,182
Germany*23,54222,40138,00060,35366,349
Hungary3,0814,48114,56417,03410,607
Italy26,94435,0192,46513,60214,669
Switzerland12,5537,3041,0,8515,30014,679
China10,1865,9972,2653,9161,389
Japan294,273396,450416,005431,618308,307
United States of America10,4147,6357,7667,28513,741
Other countries9,3071,9348,2523,7042,521
Totals875,714879,544964,3691,079,625842,485
Woollen Piece-goods.
 £££££
United Kingdom656,305638,133833,6841,105,420703,847
Canada5..2,14912,10151
Australia3,7234,9413,7053,7351,529
Germany*7,7493,4501,9041,5242,568
Belgium8..1,6712,7832,939
Japan9382,3774,4113,1652,785
Other countries5,1763,7924,8131,8522,430
Totals673,904652,693852,3371,130,580776,149
Paints and Varnishes.
United Kingdom165,899221,931236,925252,025231,603
Canada1,8092,6683,55817,45813,210
Australia67,11099,635127,098137,930164,363
Germany*6,7416,2027,6168,2239,843
Netherlands2,5133,0604,3727,8277,310
United States of America26,46934,95932,68736,13636,155
Other countries7,2794,6333,3366,1704,310
Totals277,820373,088415,592465,769466,794
Iron and Steel.—Bar, Bolt, and Rod.
United Kingdom100,02597,841118,556164,260209,791
Canada6,3321,48714,8053,44069,214
Australia159,033189,654278,282381,663483,704
Other countries6463583138742,452
Totals266,036289,340411,956550,237765,161
Iron and Steel.—Plate and Sheet.
United Kingdom677,648847,7581,032,0491,370,7061,184,181
Australia29,77432,95248,125102,64291,060
Other countries2,8663,6394,1339,27520,849
Totals710,288884,3491,084,3071,482,6231,296,090
Iron and Steel.—Tubes, Pipes, and Fittings.
United Kingdom255,402312,172362,924418,754479,119
Canada33,47052,88464,49680,27370,821
Australia6,2054,64615,14426,44315,814
Germany*2,7942,4934,7718,3427,431
Other countries1,7212,6213,0056,0922,320
Totals299,592374,816450,340539,904575,505
Artificers' Tools.
United Kingdom126,418149,414183,229168,936171,220
Canada24,13427,42046,33360,62060,510
Australia4,6595,28410,6718,55612,028
Germany*11,80314,11516,80020,60424,171
United States of America30,48148,71673,41589,56782,848
Other countries5,0398,42010,22611,39410,502
Totals202,534253,369340,674359,677361,279
Fencing-wire.—Plain and Barbed.
United Kingdom111,395161,394144,953251,561172,745
Canada13,87124,95837,54321,34421,775
Australia27,40049,70658,67462,94075,668
United States of America23,75714,9919,07610,3655,626
Other countries..31816..68
Totals176,423251,367250,262346,210275,882
Miscellaneous Hardware.
 £££££
United Kingdom342,726423,412536,820769,348695,022
Canada9,94021,69450,13952,27747,762
Australia50,63944,31483,259108,630109,725
France4,7532,1642,4063,3854,041
Germany*18,04319,16021,03429,92332,756
Sweden9,98112,90816,46820,15827,164
Japan11,62520,82523,76230,07715,422
United States of America34,650100,06078,25879,27972,364
Other countries6,7287,4375,7496,9218,605
Totals489,085651,974817,8951,099,9981,012,861
Agricultural Machinery.
United Kingdom55,86772,44895,689106,651103,348
Canada16,93039,61846,54458,01554,278
Australia17,21918,69734,79141,21729,994
France1,3549892,0604,0746,951
Germany*2,6123,1544,2595,5664,466
Sweden13,23211,38415,88919,10519,680
United States of America40,74164,386101,676132,543128,334
Other countries7495244757331,064
Totals148,704211,200301,383367,904348,115
Dairying Machinery.
United Kingdom67,77451,51455,58957,69745,072
Canada2,1872,9385,0653,7791,884
Australia24,13720,33425,25518,64619,244
Germany*5,7493,4663,1152,9337,683
Sweden40,25246,87367,06035,19121,332
United States of America7,2544,3642,6889,79614,246
Other countries2,4994,3624,4563,9085,076
Totals149,852133,851163,228131,950114,537
Electrical Machinery and Equipment (including Telephones and Accessories).
United Kingdom630,241873,8731,312,1631,863,5561,924,073
Canada60,48276,239100,844158,996240,402
Australia98,760111,438140,787185,640138,278
Belgium3,2593,8494,87113,06251,071
Germany*13,17516,14620,60841,04446,203
Netherlands6,4547,46512,18510,0558,647
Sweden9,31320,14229,85845,52352,051
Japan8,95211,37016,22616,21212,074
United States of America90,100146,506180,619242,021248,847
Other countries7,6629,35916,38223,64135,094
Totals928,3981,276,3921,834,5432,599,7502,756,740
Wireless Apparatus.
United Kingdom84,00847,01572,966143,460211,553
Canada15,45512,60311,48611,1775,498
Australia51,60449,71397,609124,82357,994
Germany*6045183131,6432,238
Netherlands11,31119,34910,0747,0753,156
United States of America201,131189,076247,097317,866148,362
Other countries4921,1721,0231,1941,354
Totals364,605319,446440,568607,238430,155
Leather and Leather Goods (excluding Boots and Shoes).
United Kingdom109,902132,059170,532200,533148,403
Canada4,9156,7288,57416,72713,396
Australia86,29068,46583,60593,36663,219
Germany*6,7078,2808,6257,1874,244
United States of America35,52049,55377,65065,59374,120
Other countries8,49110,04512,16111,71716,237
Totals251,825275,130361,147395,123319,619
Timber.
 £££££
Canada25,11331,01549,52265,02163,249
Australia144,506301,306271,021348,812434,016
Finland3145,16994130,52514,014
Sweden14,96611,58328,3661193,365
Japan27,88523,49538,72466,41641,224
United States of America16,04121,08635,47638,83054,699
Other countries3,2134,8566,20310,43311,829
Totals232,038398,510430,253560,156622,396
Earthenware and Chinaware.
United Kingdom152,530212,210243,257300,430278,487
Australia1,8543,0391,9853,1414,522
Czechoslovakia3894371,4931,7552,475
Germany*5871,3131,4542,4173,575
Japan27,56026,67730,20231,16132,452
Other countries5273334998481,039
Totals183,447244,009278,890339,752322,550
Glass and Glassware.
United Kingdom111,963140,903177,790180,992176,114
Canada3,6573,4113,9966,9256,179
Australia43,74357,19264,32956,69760,402
Belgium26,49727,70735,75858,69747,074
Czechoslovakia14,70223,53033,40338,34030,382
Germany*7,58310,49020,80722,87324,159
Japan9,91714,42117,29522,89523,062
United States of America14,62914,60321,20528,24328,753
Other countries7,14211,6767,4554,0454,624
Totals239,833303,933382,038419,707400,749
Printing-paper.
United Kingdom167,802165,081178,335276,099303,805
Canada288,614323,980432,721310,159425,759
Finland6,0243,5244,9915,2266,182
Germany*8,71215,64122,63031,31229,797
Norway11,44211,94910,0069,2335,123
Sweden3,7284,0053,4032,5953,225
United States of America6,98820,03826,56930,73831,456
Other countries5,5156,0586,78510,98115,137
Totals498,825550,276685,440676,343820,484
Paper, other than Printing.
United Kingdom251,594268,946289,134322,296298,803
Canada93,86192,482123,559182,077170,153
Australia5,8976,9976,3939,3187,015
Belgium6,9647,71910,59710,0363,839
Finland10,11315,73623,79938,46942,580
Germany22,23827,13536,40743,81529,181
Austria5,1864,7312,4167,0726,621
Japan7221,0197,75712,9527,375
Netherlands9,9117,7817,08616,89814,308
Norway26,36226,35232,41028,72417,783
Sweden49,27252,15744,44063,92877,732
United States of America45,17161,18384,256138,916128,316
Other countries5,1326,8588,9739,84417,201
Totals532,423579,096677,227884,345820,907
Books, Papers, and Music.
United Kingdom311,943320,974373,104426,512473,828
Australia62,86675,45583,14095,108138,745
United States of America30,28036,17354,67275,49589,874
Other countries3,6015,3157,2237,2498,341
Totals408,690437,917518,139604,364710,788
Miscellaneous Stationery.
 £££££
United Kingdom201,420213,352225,754303,714280,085
Canada8,4738,04215,98816,15322,212
Australia68,94875,61088,24194,579106,459
Germany*7,3376,8248,13012,73610,629
Japan7,36111,88114,25116,95912,702
United States of America32,16831,17431,89839,04546,143
Other countries9,6059,0318,45210,1468,045
Totals335,312355,914392,714493,332486,275
Fancy Goods, Toys, and Smokers' Requisites (other than Cigarette-papers).
United Kingdom86,894109,011121,670152,751142,794
Canada3,8416,1259,12911,89311,208
Australia10,61212,60416,06020,655117,263
Czechoslovakia10,72816,26617,90821,65924,172
France4,1773,3465,1376,0897,282
Germany*11,71512,86215,14421,13320,587
Japan39,89145,52252,86162,95657,495
United States of America4,3377,74614,65125,82231,274
Other countries8,5098,7967,79012,20511,443
Totals180,704222,278260,350335,163423,518
Motor-cycles.
United Kingdom23,70840,26869,446112,21480,001
United States of America8716517011,5071,039
Other countries........59
Totals24,57940,91970,147113,72181,099
Motor-cars.
United Kingdom960,4551,567,5592,080,9162,851,4972,805,418
Canada395,025439,153714,0331,127,6611,220,811
Germany*........28,701
Italy......4059,985
United States of America463,856710,454762,876741,290447,903
Other countries....12199401
Totals1,819,3362,717,1663,557,9464,720,9524,513,219
Motor Lorries, Trucks, Vans, and Buses.
United Kingdom249,517222,033475,930401,515348,442
Canada60,019110,587176,983428,115363,712
United States of America133,096157,511335,564236,736210,071
Other countries......3,454..
Totals442,632490,181988,4771,069,820922,225
Tires, Tubes, and Covers, for Motor-vehicles.
United Kingdom419,410446,069369,062375,725412,275
Canada285,594254,626261,807429,441397,067
Australia12,92213,56113,65422,0815,508
France4,6624,3212,8721,915949
United States of America13,77715,61521,71342,56641,836
Other countries3,9688516342601,805
Totals740,333735,043669,742871,988859,440
Motor-spirit.
Netherlands East Indies659,305623,8511,008,2271,169,6641,054,437
Russia36,792125,850145,986....
Bahrein Islands....52,859245,671..
Iran..57,28115,53063,412..
United States of America385,146359,523430,862618,093527,777
Other countries16110110712842
Totals1,081,4041,109,3251,642,4631,856,2741,891,339

IMPORTS FROM COOK AND OTHER ANNEXED ISLANDS.

Trade with the Cook and other annexed islands is not included in the export and import totals for the Dominion, but is shown separately in official publications. The following table shows imports into New Zealand from the group. Further particulars of the trade of the islands will be found in the section dealing with Dependencies.

Year.Imports.
 £
1,929124,043
1,930122,156
1,93187,581
1,93289,136
1,93392,910
1,93477,018
1,93567,779
1,93686,873
1,93769,121
1,93890,479

The principal articles imported into New Zealand from the Cook and other annexed islands are as follows:—

Article.1934.1935.1936.1937.1938.
Fruits, fresh—£££££
  Bananas31,71522,86838,67227,49528,955
  Oranges30,10921,08928,68925,96944,495
  Tomatoes11,76519,09614,0809,6718,868
  Other393285750246445
Fruit juices1,0471,5867591,7321,879
Coconuts779533743472746
Copra..1,0561,014582..
Potatoes863581,0111,6803,157
All other items1,1249081,1551,2741,934

SUBSECTION D.—CUSTOMS TARIFF AND REVENUE.

THE TARIFF.

THE rates of Customs and Excise duty in force in New Zealand are set out in the publication entitled “The Customs Tariff of New Zealand,” obtainable from the Government Printer, Wellington.

A summarized historical account of the Customs tariff of New Zealand, setting forth the principal developments and changes from earliest times to 1930 will be found in the 1931 number of the Year-Book. The tariff has now developed into a complex schedule of duties, and considerations of space prevent a detailed account of the rates of duty now levied on goods imported into New Zealand.

Briefly the Customs tariff, apart from the obtaining of revenue, has for its objects the following:—

  1. The development of New Zealand industries.

  2. The maintenance and extension of markets for New Zealand produce.

  3. The encouragement of intra-Empire trade.

Under the Ottawa agreement of 1932, New Zealand, in common with the other Dominions, was committed to hold an inquiry into the tariff and, if necessary, to revise it in accordance with certain explicitly stated principles. New Zealand undertook to afford protection against United Kingdom products only to industries which are reasonably assured of sound opportunities for success and to grant protection on such a level as to enable the United Kingdom producer to compete on the basis of the relative cost of economical and efficient production.

As soon as possible after the Ottawa Conference dutiable goods, the produce of the United Kingdom or of any British possession except da, the Union of South Africa, Eire, Newfoundland, or India, were from the surtax on duty previously payable. Reductions were in the rates of duty charged on confectionery, apparel, hosiery, and silk and silk piece-goods, and additional preference to British countries was granted by the imposition of a duty or an increase in the existing rate on foreign coffee, cigars, rum, asphalt and bitumen, certain unground spices, and paper.

A Tariff Commission was set up in 1933 to inquire into the Customs tariff and to recommend for the consideration of the Government any alterations therein with a view to implementing the agreement made at Ottawa, and .........., inter alia, to the financial, economic, and industrial conditions in the Dominion.

On the basis of the report of this Commission, resolutions amending the tariff were introduced on 10th July, 21st August, and 13th September, 1934, and ratified by the Customs Acts Amendment Act. 1934.

Some of the principal alterations made to the British preferential tariff were:—

  1. Protective duties were abolished on: Certain stock foods; nails (as from 1st November, 1936)*; certain iron and steel pipes; linseed oil; whitelead ground in oil (as from 1st November, 1936)*; wireless sets in cabinets; maizena and cornflour in small packages.

    * Extended to 1st November, 1940.

  2. The protective duties were reduced on: Preserved and dried milk; baking powder; coffee essence; confectionery; sauce; soap; hats, caps, and millinery; boots and shoes; leather manufactures; glass bottles; oil engines; manufactured stationery; galvanized iron manufactures; metal office furniture; tinware; furniture and upholstery; paints and varnishes; biscuits; plaster pulp sheets; polishes; apparel; whole maize; vinegar; cement; matches; furs and fur skins; floor-mats and floor-rugs of wool.

  3. The revenue duties were reduced on: Carpets; fancy goods; sporting requisites; jewellery; platedware; tobacco pipes; toilet preparations; pianos and other musical instruments; engines for tractors; cigarettes; table chinaware; oak timber; builders' and cabinetmakers' hardware.

  4. The protective duties were increased on: Maize, ground or crushed; porcelain enamelled cast-iron baths; and household gas meters.

  5. Revenue duties were increased on: Cigarette papers.

  6. The protective duty previously payable on motor-car bodies was abolished, and the duties were amended to encourage the assembling of motor-vehicles in New Zealand by a reduction in the rate of duty on vehicles imported unassembled or completely knocked-down.

In addition to the ordinary rates of duty imposed on goods entering the Dominion, additional revenue has been obtained in recent years by a surtax on dutiable imports and a primage duty on goods otherwise free.

The surtax was imposed in 1930 in lieu of a primage duty of 1 per cent. or 2 per cent. ad valorem previously charged on practically all imports whether free or dutiable. This surtax was not, however, applied to dutiable goods of Australian origin, which continued to pay the primage duty of 1 per cent. or 2 per cent.

The rate of surtax was fixed at one-twentieth of the total duty otherwise payable on certain goods (e.g., spirits, tobacco, timber, sugar, motor-spirit), and nine-fortieths of such duty on all other dutiable goods, except wheat and flour, and some other lines which have since been exempted.

As stated above, surtax was not charged on goods the produce of the United Kingdom or any British country except Canada, the Union of South Africa, Eire, Newfoundland, or India, on and after the 14th October, 1932, and the primage duty payable on Australian goods in lieu of surtax was also removed as from that date.

A primage duty of 3 per cent. was charged, as from the 31st July, 1931, on imports from all countries which were otherwise free of duty. Certain specified items were, however, exempted from primage duty.

The following is a list of the principal items which are free of duty (and in some cases are also exempt from primage duty) under the Customs Acts Amendment Act, 1934:—

Free in any Case.—Live animals; barley (if to be used as stock-food); bran; pollard; seeds; vegetable butters or fats; currants; dates; figs; prunes; glucose and caramel; nuts, except walnuts; rice; acids, other than acetic; inorganic salts of metallic elements and many other drugs and chemicals; bags and sacks of jute, &c.; woolpacks; raw cotton; hatmakers' materials; buttons; needles and pins; wadding; cotton piece-goods for meat-wraps and cheese-bandages; umbrella-makers' materials; upholsterers' materials; coir, flax, and jute yarns; grindery; leather made from goat and kid skins; patent leathers; bricks, other than firebricks; marble in the rough; grindstones and whetstones; cinema films (subject however to film-hire tax); bookbinders' materials; cardboard and similar boards; parchment and greaseproof paper; printed books, papers, and music; beekeepers' apparatus; percussion caps, detonators, and explosives; hay-rakes, reapers and binders, mowers, and certain other agricultural implements; certain dairying machinery; sewing-machines; iron and other metal in ingots, pigs, or billets; fish and vegetable (other than linseed) oils; kerosene and other refined mineral oils not exceeding in specific gravity 0.860 at 60°F. (other than motor-spirit); waxes; cork; crude tanning materials; manures; skins and hides.

Free if British, but dutiable if Foreign.—Bananas; oranges, mandarins and grapefruit; raisins; infants' and invalids' foods; mustard; salt; cocoa-beans; raw coffee; sago and tapioca; maizena and cornflour; macaroni; acetic acid; cream of tartar; disinfectants; chloroform and other anæsthetics; antiseptics; manufactured dyes; most surgical, dental, optical, and scientific instruments and materials; felt, cotton, linen, and canvas piece-goods; silk and artificial silk piece-goods; leather-cloth; oil baize; sewing, &c., cottons and threads; elastics; plain tape; tailors' lining materials; cotton, silk, and artificial silk yarns; plain tablecloths, towels, and similar plain articles; belting (other than leather); children's boots and shoes; gum boots; rubber hose; most rubber manufactures, except tires for motor-vehicles; sheet glass; lenses; watch-glasses; pianos and certain other musical instruments; gramophone records; artists' materials; paperhangings; sensitized surfaces; waxed paper; paper (other than wrapping) in large sheets or rolls; ball bearings; bolts and nuts; rivets and washers; buckles; chains; fire-engines, fire-extinguishers, and other fire-extinguishing appliances; adding and computing machines; typewriters; most electrical apparatus; measuring, testing, &c., appliances; sheep-shearing machines; tractors; artificers', &c., tools; machinery peculiar to industrial processes; iron and other metal in bars or sheets; wire and wire netting; metal cordage; rails for railways and tramways; under-carriage springs and metal fittings for vehicles; asphalt and bitumen; table chinaware.

An indication of the incidence of Customs taxation on various classes of commodities imported will be found in the last two columns of the table on page 296, where the Customs duty collected in 1938 is distinguished as a proportion of the dutiable imports and total imports in each of the statistical classes.

As previously stated it is impossible to give any account of the range of duties payable on all of the numerous tariff items, but the duties on some of the principal commodities in general use are mentioned hereunder. It should be noted that, in addition, surtax or primage may also be payable.

Tea.—Tea in bulk, when of British origin, was placed on the free list as early as 1907, when the duty on foreign tea was fixed at 2d. per lb. In 1917 a duty of 3d. per lb. was imposed on British tea, the foreign rate being increased to 5d. per lb. British tea in bulk was again placed on the free list in 1923, and the duty on foreign tea reduced to 2d. Rates of 3d. and 5d. per lb. respectively were reinstated as from 31st July, 1931.

Sugar.—Sugar also was placed on the free list in 1907, prior to which the duty was ½d. per lb. Refined sugar of foreign origin was charged ½d. per lb. under the 1921 tariff, the rate being altered in 1923 to 5/16d. and in 1924 to ½d., irrespective of origin. The duty on refined sugar was increased to 3/4d. per lb. in 1931; and raw sugar, which is imported for refinement at Auckland, was made dutiable at ½d. per lb., or, alternatively, ½d. per lb. excise duty on manufacture. An additional ½d. per lb. on both refined and raw sugar was imposed as from 9th February, 1933.

Tobacco.—Prior to the imposition of special war-taxation in 1939, the duties on tobacco were as follows: Cigarettes, exceeding in weight 2½ lb. per 1,000, 10s. 6d. per lb.; cigarettes, not exceeding 2½ lb. per 1,000, 25s. 6d. per 1,000. Cigars, 12s. per lb. under the British preferential tariff and 14s. or 16s. under the general tariff. Manufactured tobacco, cut, 6s. 10d. per lb., and plug, 6s. 8d. per lb. Unmanufactured tobacco, for the manufacture of cigarettes, 3s. per lb.; and unmanufactured tobacco for the manufacture of tobacco, cigars, or snuff, 2s. per lb. In order to assist in financing the expenses of the war, further duties, in addition to those set out above, and equal to 25 per cent. of the duties, have been levied as from 27th September, 1939. A duty of ½d. British preferential tariff or 3/4d. general tariff is levied on each sixty cigarette tubes or papers or the equivalent thereof. The excise duties on tobacco, &c., made in New Zealand are shown later under “Excise Duties.”

Alcoholic Beverages.—Prior to the imposition in 1939 of special taxation for war purposes the rate of duty payable on most spirituous beverages was 40s. per proof gallon, except rum of foreign origin, which is dutiable at 44s. per proof gallon. Sparkling wine was liable to a duty of 10s. per gallon under the British preferential tariff and 13s. or 15s. under the general tariff, and still wines to 4s. and 6s. respectively. Australian and South African still wines were liable to a duty of 5s. 6d. per gallon. The duty on imported beer was ls. 9d. per gallon under the British preferential tariff and 3s. under the general tariff. In order to assist in financing the expenses of the war, further duties, in addition to those set out above, and equal to 15 per cent. of the duties, have been levied as from 27th September, 1939. The excise duty on beer produced in New Zealand is given under “ Excise Duties.”

Apparel.—Most apparel pays duty at the rate of 20 per cent. or 25 per cent. under the British preferential tariff and 65 per cent. under the general tariff. The duties on apparel of Canadian and Australian origin vary from the British preferential rates to 40 per cent., 45 per cent., and 55 per cent.

Timber.—Certain types of special timbers and Australian hardwoods, if imported in logs, or rough sawn or rough hewn, are admitted free. Oak timber is free of duty under the British preferential tariff, and dutiable at 6s. per 100 sup. ft. under the general tariff. Other kinds of timber, such as Douglas fir (Oregon pine), redwood, Baltic pine, are subject to the following rates: Logs, round, unworked, 25s. per 100 cubic ft; rough sawn or rough hewn, 7s. 6d. or 9s. 6d. per 100 sup. ft. under the British preferential tariff, and 9s. 6d. or 11s. 6d. under the general tariff; dressed, 19s. per 100 sup. ft. British preferential tariff and 21s general tariff.

Motor-vehicles.—Motor-vehicles imported in an unassembled or completely knocked-down condition are dutiable at 5 per cent. under the British preferential tariff and 50 per cent. under the general tariff. Assembled motor-vehicles are subject to a duty of 15 per cent. if admissible under the British preferential tariff and 60 per cent. if liable to the general tariff. Special rates apply to vehicles of Canadian origin.

Tires for Motor-vehicles.—Previously dutiable at 10 per cent. ad valorem under the British preferential tariff and 40 per cent. under the general tariff, these were in 1934 made subject to a duty based on the weight of the tires. Pneumatic rubber tires for motor-vehicles, inner tubes of rubber therefor, and moulded rubber strip for repair of such tires are now dutiable at 2½d. per lb. under the British preferential tariff and 8d. per lb. under the general tariff. Solid rubber tires are liable to a duty of 1d. per lb. and 4d. per lb. under the British preferential and general tariffs respectively. The duty on tires is earmarked for the maintenance of highways.

Motor-spirits.—Towards the end of 1927 the Motor-Spirits Taxation Act of that year imposed a duty of 4d. per gallon (increased in 1930 to 6d.) on motor-spirits. The proceeds of this tax were devoted to roading purposes. In 1931 and 1933 an increase in duty of 2d. per gallon in each year was made, and an additional 4d. per gallon duty was imposed as from 2nd August, 1939. The total duty on motor-spirits is now 1s. 2d. per gallon, plus a surtax of one-twentieth of the duty on foreign. The proceeds from 6d. per gallon of this tax are earmarked for roading purposes, and the balance (8d. per gallon and surtax) is levied for general purposes and is retained in the Consolidated Fund.

PROHIBITED AND RESTRICTED IMPORTS.

Full particulars of the goods which are prohibited or restricted from being imported into New Zealand are contained in the publication entitled “ The Customs Tariff of New Zealand.”

The Import Control Regulations 1938 (made by Order in Council of 5th December, 1938) prohibit the importation of any goods except in pursuance of a license under the regulations or of an exemption granted by the Minister of Customs.

EXCISE DUTIES.

An important excise duty is that on beer, which up to 1915 was charged at the rate of 3d. per gallon. In that year the beer duty was altered so as to increase according to the specific gravity of the worts used, the rate being 3¾d. per gallon when the specific gravity did not exceed 1,047, and increasing by 1/16d. per gallon for every unit of specific gravity up to 1,055, and by 1/8d. thereafter. On the 2nd August, 1917, the minimum rate of duty for beer was increased from 3¾d. to 4¾d. per gallon, and further (on the 15th September, 1917) to 5¾d., with a maximum of 6d. per gallon. In 1921 a rate of 11½d. per gallon (increased to 1s. in 1930, and to 1s. 6d. in 1931) was imposed where the specific gravity of the worts used did not exceed 1,047. the rate being increased by 1/16d. for every unit of specific gravity above 1,047. The basic rate of excise duty on beer was reduced from 1s. 6d. to 1s. 3d. per gallon by the Customs Acts Amendment Act, 1934, but was increased to 1s. 9d. per gallon as from 2nd August, 1939. In order to assist in financing the expenses of the war, a further increase to 2s. per gallon was made as from 27th September, 1939. The specific gravity of distilled water at 60° F. is taken as 1,000, and the specific gravity of the worts is determined in relation thereto.

Prior to the introduction of special taxation for war purposes, cut tobacco was charged an excise duty of 4s. 6d. per lb.; other tobacco, 4s. 4d. per lb. Cigars and snuff paid 4s. per lb., and the excise duty on cigarettes made in New Zealand was 13s. 6d. per 1,000 on cigarettes not exceeding in weight 2½lb. per 1,000, and 5s. 6d. per lb. on cigarettes over 2½ lb. per 1,000. A war surcharge of 25 per cent. of the excise duty on tobacco, cigars, cigarettes, and snuff has been levied as from 27th September, 1939. Imported leaf tobacco used in the manufacture of tobacco, &c., in New Zealand paid on importation a duty of 3s. per lb. if for the manufacture of cigarettes, and 2s. per lb. if for tobacco, cigars, or snuff. An excise duty of ½d. is levied on each sixty cigarette tubes or papers or the equivalent thereof.

The Customs Acts Amendment Act, 1931, imposed an excise duty of ½d. per lb. (increased to 1d. per lb. from 9th February, 1933) on sugar manufactured in New Zealand.

Excise duties were formerly levied direct on certain manufactures the preparation of which involved the use of a considerable proportion of spirits. In lieu of excise duty on the finished manufactured article, however, a special schedule of duties has since 1921 been provided on imported alcohol used in manufacturing these articles in licensed warehouses. The present rates are: On alcohol used in the manufacture of—perfumed spirits, 36s. per gallon; toilet preparations, 34s.; culinary and flavouring essences, 20s.; medicinal preparations containing more than 50 per cent. of proof spirit, 4s. 6d. per gallon. In similar medicinal preparations containing less than 50 per cent. the alcohol used is duty-free.

EXPORT DUTIES.

The Gold Duty Act of 1858, amended from time to time, first imposed an export duty on gold. Under the Gold Duty Abolition and Mining Property Rating Act of 1890, the export duty on South Island gold was replaced by a system of rating mining property. The consolidating Gold Duty Act of 1908 maintained an export duty of 2s. per ounce of 20 carats fineness on gold produced in or exported from the North Island. A further export duty of 6d. per ounce (on gold of New Zealand origin only, and exclusive of gold produced by alluvial or dredge mining) was levied by the Mining Act of 1926, and this additional duty applied also to South Island gold. The Customs Acts Amendment Act passed in February, 1933, imposed an additional export duty of 12s. 6d. per ounce troy weight of gold of the fineness of 20 carats and upwards, and covered all gold, with certain minor exceptions, wherever produced or exported. Provision was made for reduction, by Order in Council, of the rate of duty in the event of a reduction in the value of gold in New Zealand. In order to assist in financing the expenses of the war, a further duty has been imposed as from 27th September, 1939, of an amount equal to 75 per cent. of the excess of the London market value of gold (expressed in New Zealand currency), as on the date when the gold is laden upon the exporting ship or when it is posted to an overseas address, over the value of that gold if it is computed at the rate of £9 5s. 8d. (New Zealand currency) for every ounce troy weight of gold of the fineness of 24 carats.

An export duty was also imposed on timber (white-pine and kauri) by Acts of 1901 and 1903, and still operates. The present rates of 5s. per 100 superficial feet on logs, and 3s. or 5s. per 100 superficial feet on flitches, were imposed by the Timber Export Duty Order of 23rd June, 1937. This duty is not payable in respect of sawn timbers.

The Customs Department collects the levies imposed on meat and honey exported. The proceeds (less expenses of collection) are, however, handed over to the respective Boards set up to control the export, &c., of these commodities in the interests of the producers. A levy is also made on wool exported and is paid, less cost of collection, &c., to a Wool Publicity Committee to enable it to carry out its functions.

CUSTOMS REVENUE.

In the earlier years of New Zealand's history the revenue derived from Customs and excise duties produced a greater proportion of the total revenue from taxation than it docs to-day. For a considerable period prior to 1914, there was a constant tendency for this proportion to decrease, and the taxation legislation of the 1914-18 war period temporarily accelerated the movement. The percentage rose after 1921-22, but did not regain its pre-war proportions, and of recent years has shown a tendency to fall again. The figures for the last twenty years are as follows:—

Year ended 31st March,Total Taxation.Customs and Excise Duties.Year ended 31st March,Total Taxation.Customs and Excise Duties.
Amount.Percentage of Total Taxation.Amount.Percentage of Total Taxation.
 ££Per Cent. ££Per Cent.
1,92016,251,7695,185,72831.911,93019,471,1319,517,35948.88
1,92122,184,4148,769,25139.531,93118,878,2858,181,07643.34
1,92216,370,5165,554,33433.931,93217,405,6226,545,42837.61
1,92315,715,3806,644,42042.281,93319,703,7036,785,64134.44
1,92416,540,4387,870,30947.581,93421,470,8277,140,47833.26
1,92516,549,6098,187,27349.471,93524,737,9398,094,60532.72
1,92617,254,6888,974,23552.011,93625,476,3728,876,20334.84
1,92717,437,8278,826,28750.621,93731,164,30210,340,83833.18
1,92817,145,1458,501,24549.581,93836,767,52511,737,17031.92
1,92917,832,0338,565,73648.041,93937,764,91211,727,22431.05

The figures for Customs and excise duties from 1922-23 onwards are exclusive of tire-tax, and for 1927-28 and subsequent years the highways proportion (6d. per gallon) of the motor-spirits tax—two classes of duties collected through the Customs for road-maintenance purposes, and included in total taxation.

In the foregoing table the financial year has been taken for purposes of comparison with total taxation, figures concerning which are not available for calendar years. In subsequent tables the Customs-taxation figures relate to the calendar year, which is the statistical year for most trade purposes.

In the two tables which follow, the figures do not include taxes for highway purposes, excise duties, or export duties, and are also exclusive of surtax, primage, and depreciated-currency duties for the years during which these have been in force.

YearFoods and Nonalcoholic Drinks.Clothing and Textiles.Alcoholic Drinks and Tobacco.All other Articles.Total.
Amount of Duty collected.
 £££££
1,911147,456682,7101,286,6011,048,8903,165,657
1,916170,009985,3351,390,3221,036,2273,581,893
1,921237,8781,297,1211,930,8981,826,3575,292,254
1,926389,6861,760,4082,679,0803,102,6237,931,797
1,931366,709981,1391,780,3051,360,4244,488,577
1,934310,476780,1491,464,2812,471,9395,026,845
1,935321,561761,3611,597,5572,879,0525,559,531
1,936346,167929,7271,866,2173,733,5056,875,616
1,937397,5851,258,9822,061,8754,263,5987,982,040
1,938419,7961,131,4832,247,7784,313,5078,112,564
Year.Foods and Non-alcoholic Drinks.Clothing and Textiles.Alcoholic Drinks and Tobacco.All other Articles.Total.
Percentage of Total Duty collected.
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
1,9114.6621.5740.6433.13100.00
1,9164.7527.5138.8128.93100.00
1,9214.4924.5136.4934.51100.00
1,9264.9122.1933.7939.11100.00
1,9318.1721.8639.6630.31100.00
1,9346.1815.5229.1349.17100.00
1,9355.7813.7028.7451.78100.00
1,9365.0413.5227.1454.30100.00
1,9374.9815.7725.8353.42100.00
1,9385.1713-9527-7153.17100.00

The Customs and excise duties received during the last five years are shown in more detail in the next table. Primage duties and surtax are included, but not tire-tax or the highways proportion of petrol-tax, which do not really represent Customs taxation, although levied on imports and for the sake of convenience collected through the Customs.

1934.1935.1936.1937.1938.
    Customs Duties.£££££
Spirits658,348685,473778,670831,395898,019
Wine31,67936,89943,17446,31654,990
Beer2,5844,0136,5697,96610,411
Cigars, cigarettes, and snuff332,127441,431545,901625,439667,155
Tobacco433,532425,114486,311544,608615,895
Tea124,065132,254138,494134,221133,824
Motor-spirit1,033,5741,037,1611,416,4681,492,6111,616,553
Other duties2,410,9932,797,1863,460,0294,299,4844,115,717
Primage276,060319,919326,059303,764287,379
Surtax421,542474,461593,336697,229664,414
Dumping duty........2,113
    Totals, Customs duties5,724,5046,353,9117,795,0118,983,0339,066,470
Excise Duties.     
Alcohol used in perfumed spirit, &c.—New Zealand22,88621,37521,58619,02820,216
Cigars, cigarettes, and snuff—New Zealand manufactured257,201168,209210,467236,229274,083
Tobacco—New Zealand manufactured645,818631,203661,180652,416640,364
Beer—New Zealand673,788696,527805,997938,2561,066,689
Sugar664,433657,142683,089676,246632,172
    Totals, excise duties2,264,1262,174,4562,382,3192,522,1752,633,524
Revenue per head:—£  s.  d.£  s.  d.£  s.  d.£  s.  d.£  s.  d.
From Customs duties3  13  104  1  44  19  05  13  05  12  10
From excise duties1  9  21  7  101  10  31  11  91  12  9
    Totals5  3  05  9  26  9  37  4  97  5  7

The following table furnishes a general view of the ratio of Customs revenue to merchandise imports at intervals since 1895, which is taken as the base year:—

Year.Merchandise Imports.Revenue (excluding Excise Duties).Percentage of Revenue to Total Imports.Index Numbers of Customs Revenue compared with Imports.
Value.Value per Head.Amount.Actual Rate per Head.Rate per Read at 1895 Ratio.
 ££s.d.££s.d.£s.d.Per Cent. 
1,8956,115,9538671,619,97024124126.491,000
1,90010,207,326121462,170,354214137421.26803
1,90512,481,178131342,652,6662181312421.25802
1,91016,748,223161112,954,989216945217.64666
1,91520,658,720171963,190,8832156415215.45583
1,92061,553,8534910117,953,477697135612.92488
1,92552,425,757371748,287,2885199100715.81597
1,93044,339,654291407,776,103542717417.54662
1,93431,339,55220405,724,5043131057018.27690
1,93536,317,267234116,353,91141463217.50661
1,93644,258,886281117,795,0114190781017.61665
1,93756,160,69535658,983,033513097216.00604
1,93855,422,189349109,066,4705121092916.36618

The figures given in the column “Rate per head at 1895 ratio “ indicate the amount of revenue per head of population which would have been obtained had the same ratio of Customs taxation to imports prevailed as in 1895.

Substantial reductions in the scale of duties were responsible for the sharp fall in the percentage of revenue to imports between 1895 and 1920. The percentage rose again after 1920, due partly to heavier taxation and partly to a rise in the proportion of imports from foreign countries. To some extent also the position is affected by a change from the 1st April, 1926, in the system of computation for British preference purposes in the case of articles only partly manufactured in British countries.

FREE AND DUTIABLE IMPORTS.

At the present time nearly one-half of New Zealand's imports are admitted free of duty.

The figures given in the following table are exclusive of specie, which is admitted free. Imports free of duty include items otherwise dutiable but admitted free for Government use, &c.

Year.Value of Merchandise Imports.Percentage of Total.Customs Duty collected.
Free.Dutiable.Total.Free.Dutiable.Amount.Percentage of
Dutiable Imports.Total Imports.
 £££Per Cent.Per Cent.£Per Cent.Per Cent.
1,92920,886,79827,847,67448,734,47242.8657.148,582,39330.8217.61
1,93020,255,01924,084,63544,339,65445.6854.327,776,10332.2917.54
1,93112,306,83914,191,31226,498,15146.4453.565,282,51037.2319.93
1,93211,634,88313,011,12324,646,00647.2152.795,035,91338.7120.43
1,93312,424,19813,157,16825,581,36648.5751.434,920,59337.4019.24
1,93415,019,01716,320,53531,339,55247.9252.085,724,50435.0818.27
1,93517,358,65218,958,61536,317,26747.8052.206,353,91133.5117.50
1,93620,615,65423,643,23244,258,88646.5853.427,795,01132.9717.61
1,93725,862,09130,298,60456,160,69546.0553.958,983,03329.6516.00
1,93826,981,93228,440,25755,422,18948.6851.329,066,47031.8816.36

The next table gives for 1938 detailed figures arranged according to the statistical classification, for the key to which reference should be made to p. 247. The oils, fats, and waxes class, in which motor-spirit predominates, accounted for 22 per cent. of the total Customs duty (excluding primage) collected in 1938. Next followed tobacco, 16 per cent.; alcoholic liquors, 12 per cent.; vehicles (chiefly motor), 9½ per cent.; apparel, 8½ per cent.; machinery and machines, 6½ per cent.; and textiles, 5½ per cent.

FREE AND DUTIABLE IMPORTS, 1938.

Class No.Value of Merchandise Imports.Percentage of Total.Customs Duty collected.
Free.Dutiable.Total.Free.Dutiable.Amount.Percentage of
 Dutiable Imports.Total Import.
 £££Per Cent.Per Cent.£Per Cent.Per Cent.
I1,995311,842313,8370.6499.3654,71417.5517.43
II2,521,3721,478,8494,000,22163.0336.97215,88614.605.40
III86,817904,258991,0758.7691.24149,19616.5015.05
IV22,966795,077818,0432.8197.19964,728121.34117.93
V1071,042,0191,042,1260.0999.911,283,050123.13123.12
VI54,815..54,815100.00........
VII129,1035,700134,80395.624.381,64328.821.22
VIII631,477184,477815,95477.3922.6129,87816.203.66
IXA457,6452,744,9923,202,63714.2985.71689,96525.1421.54
IXB2,332,3282,783,1205,115,44845.5954.41441,51815.868.63
IXC406,63645,047451,68390.039.977,49816.641.66
X1,102,7192,231,0513,333,77033.0866.921,754,22179.6352.62
XI179,942286,852466,79438.5561.4552,88018.4311.33
XII123,3235,693129,01695.604.4095216.720.74
XIVA1,136,3838,7521,145,13599.240.7689610.240.08
XIVB5,528,9451,538,5047,067,44978.2324.77300,87519.564.26
XV4,908,1443,130,9988,039,14261.0538.95525,44116.786.54
XVIA210,06624,729234,79589.4710.534,45618.021.90
XVIB112,865206,754319,61935.3164.6937,79818.2811.83
XVIIA447,464174,932622,39628.1171.8959,92934.269.63
XVIIB39,288168,996208,28418.8681.1441,12924.3419.75
XVIII455,989497,754953,74347.8152.1988,46517.779.28
XIXA1,411,164230,2271,641,39185.9714.0329,42412.781.80
XIXB827,123369,9401,197,06369.1030.9080,25421.696.70
XX4,806946,046950,8520.5199.49238,26025.1825.05
XXI606,968231,599838,56772.3827.6245,31619.575.40
XXIIA1,151,143767,2741,918,41760.0040.00152,34519.857.94
XXIIB699,326..699,326100.00........
XXIIIA409,0326,813,1427,222,1745.6694.34772,55011.3410.70
XXIIIB981,981511,6331,493,61465.7534.2589,29717.455.98
Primage and surtax..........953,906....
  Totals26,981,93228,440,25755,422,18948.6851.329,066,47031.8816.36

RATES OF DUTY.

The following table shows merchandise imports in 1938 according to the nature of rate of duty.

MERCHANDISE IMPORTS, 1938, BY RATES OF DUTY.

Nature of Duty.United Kingdom.Other British.Foreign.Totals.
 ££££
Free14,806,2578,139,2374,036,43826,981,932
Specific duties2,062,2221,977,3843,581,6577,621,263
Ad valorem duties—    
5 per cent.1,808,02960,21230,6691,898,910
10 per cent.366,577170,6381,267,7991,805,014
12½ per cent...1,572,478..1,572,478
15 per cent.1,662,410136,221994,1822,792,813
20 per cent.4,141,945805,740862,8945,810,579
25 per cent.1,678,802411,150990,5603,080,512
30 per cent.5,759369,863153,355528,977
32½ per cent...22,569..22,569
35 per cent...244,44278,562323,004
40 per cent.687121,444365,963488,094
45 per cent...118,137395,545513,682
50 per cent.....1,262,6011,262,601
55 per cent...88,88272,026160,908
60 per cent.....367,509367,509
65 per cent.....191,344191,344
  Totals ad valorem9,664,209121,7767,033,00920,818,994
  Total merchandise import26,532,68814,238,39714,651,10455,422,189

NOTE.—The primage duty of 3 per cent. ad valorem payable on certain otherwise free imports, and the surtax of 9/40 or 1/20 of the duty otherwise payable on certain dutiable goods, have been disregarded in the compilation of this table.

PREFERENCE AND RECIPROCITY.

Preference to British countries in respect of certain commodities was provided for in the earliest tariff in force in New Zealand—that introduced in 1841. The amended tariff of 1844 involved the dropping of this preference to British goods, but two years later preference was again introduced.

The first definite attempt at reciprocity was made in 1870, when the Colonial Reciprocity Act gave power to the Government to make reciprocal agreements with the Australian States, including Tasmania; but this Act failed to receive the Royal assent and consequently lapsed.

In 1895, however, the Customs Duties Reciprocity Act received the Royal assent, and ratified an agreement which had been tentatively proposed with South Australia, besides giving power to the Government to make further agreements with the other Australian States. In 1907 the New Zealand and South African Customs Treaty was negotiated. A tariff agreement with the Australian Commonwealth has been in operation since 1922, and with Canada since 1932.

Imperial preference proper was introduced in New Zealand by the Preferential and Reciprocal Trade Act, 1903, which followed the lead given by Canada. At first only a few items were covered by the extra duties levied upon goods of foreign origin, but the Tariff Act of 1907 extended this additional preferential duty to a great number of items. The effect of the 1921, 1927, 1930, and 1934 tariffs has been to widen the disparity in the duty as between goods of British and of foreign origin. Under the Ottawa agreement, New Zealand undertook to preserve the existing margins of preference on United Kingdom goods when the margin of preference did not exceed 20 per cent., and where the margin exceeded that figure not to reduce it below 20 per cent. without the consent of the Government of the United Kingdom. In the tariff of 1934, where reductions in duty were made under the British Preferential Tariff, the rates of duty under the general (foreign) tariff were, except in a few cases, retained.

The following are the classes 0f goods which are deemed to be the produce or manufacture of countries, the produce or manufactures of which are entitled to be entered for duty at British preferential rates:—

  1. Goods wholly the produce of such countries:

  2. Goods wholly manufactured in such countries from unmanufactured raw material and/or from one or more of the imported partly manufactured raw materials which are enumerated in the regulations:

  3. Goods partially manufactured in such countries, provided that the final process of manufacture has been performed in such countries, and also that the expenditure in material produced in such countries and/or labour performed within such countries in each and every article is not less than one-half of the factory or works cost of such article in its finished state.

The conditions applying to British countries, the products of which are admissible under the British Preferential Tariff pursuant to agreements made by New Zealand with such countries, may be varied to suit the provisions of such agreements.

Prior to the 1st April, 1926, the minimum mentioned in paragraph (c), which is now one-half, was one-fourth.

In the calculation of the proportion of produce or labour none of the following items is to be included or considered:—

  1. Manufacturer's profit, or the profit or remuneration of any trader, agent, broker, or other person dealing in the article in its finished condition:

  2. Royalties payable in respect of the finished goods:

  3. The cost of outside packages or any cost of packing the goods thereinto:

  4. Administrative and general office expenses:

  5. Any cost of convoying, insuring, or shipping the goods subsequent to their manufacture:

  6. Any other charges incurred subsequent to the completion of the manufacture of the goods.

Tea to be. entitled to be entered at British preferential rates must be grown in some part of the British Empire, and the final process of manufacture must also be performed in some British country.

Certain imports from Australia and Canada pay more than corresponding items from other British countries, while, from June, 1931, to 24th May, 1932, the bulk of imports of Canadian origin paid the general rate of duty.

The following table shows the extent of the imports which are affected by preference, by giving the percentage of the total imports and of foreign imports so affected.

Year.Value of Merchandise Imports.Imports on which Preferential Surtax payable.Percentage of
Total.Of British Origin.Of Foreign Origin.Total Imports.Foreign Imports.
 ££££Per Cent.Per Cent.
1,92948,734,47233,031,46415,703,0088,437,21717.3053.73
1,93044,339,65430,317,84714,021,8076,648,14215.0047.41
1,93126,498,15118,401,8878,096,2643,097,99511.6938.26
1,93224,646,00617,510,3177,135,6892,388,1189.6933.47
1,93325,581,36618,759,0066,822,3602,573,64510.0637.72
1,93431,339,55223,139,6138,199,9393,778,15512.0646.08
1,93536,317,26726,603,1609,714,1074,898,06313.4950.42
1,93644,258,88632,192,61412,066,2726,182,65613.9751.24
1,93756,160,69541,291,49614,869,1997,959,68014.1753.53
1,93855,422,18940,771,08514,651,1047,569,17213.6651.66

Of foreign goods imported in 1938, 28 per cent. were free of duty, as compared with 58 per cent. in 1921. A further 21 per cent. (7 per cent. in 1921), although dutiable, paid no higher rate than if they had been of British origin. This leaves 51 per cent. (35 per cent. in 1921) with the disadvantage of the higher rate of duty applicable to foreign goods. Of the total imports of British origin in 1938, 56 per cent. were classified as free. Of goods of United Kingdom origin, 56 per cent. were free.

For the purpose of studying better the scope and effect of the preferential surtax, imports for 1938 are classified in the next table into four groups:—

United Kingdom.Other British Countries.Foreign Countries.
 £££
Free in any case5,000,7013,679,0744,036,438
Free when of British origin, but dutiable when of foreign origin9,805,5564,460,1634,334,566
Dutiable with same rates whether of British or foreign origin1,072,077309,0953,045,494
Dutiable with a lower rate of duty when of British origin10,654,3545,790,0653,234,606
Totals26,532,68814,238,39714,651,104

RECIPROCITY WITH THE UNION OF SOUTH AFRICA.

As already stated, there was inaugurated in 1907 a reciprocal arrangement with the Union of South Africa whereby products of that country, when imported direct, were admitted into New Zealand at reduced rates of duty, in return for similar concessions granted by South Africa in respect of New Zealand products. This agreement was revised in 1922, the duties on wines being increased and tobacco being deleted from the list. A further alteration, whereby maize and dried apples were deleted from the list, was made in 1925. Dried fruits formerly came under the agreement, being admitted free when the general tariff was 4d. per pound and the British preferential rate 2d. On 1st January, 1934, however, the general tariff was reduced to 2d. and the British rate made free.

The items specially provided for in the agreement are feathers, fish, fresh fruit, dried fruit, tea, and wine; while in the case of all other dutiable goods, with the exception of spirits and tobacco, a reduction of 3 per cent. of the duty payable is made.

The following table shows the merchandise trade with the Union of South Africa during the last ten years:—

Year.Merchandise Imports.Merchandise Exports to Union of South Africa.
From Union of South Africa.Of Union of South Africa Origin.
 £££
1,92998,839100,98851,707
1,93091,69396,03215,589
1,93176,20176,7578,052
1,93284,83284,66712,120
1,93348,79150,64614,427
1,93455,17456,09229,152
1,93554,93655,80127,504
1,936117,329119,40521,855
1,937128,073131,97029,554
1,93890,26690,68219,357

Of commodities specially provided for in the reciprocal tariff, wine was the only item to benefit in 1938. Dried apricots (£6,361) and bark and other tanning materials (£8,176) accounted for the great bulk of the £17,951 free imports other than under the reciprocal tariff. The principal item in the category “ reduction of 3 per cent.” was precious stones, the figure being £58,255.

The imports of merchandise of South African origin during the last five years are classified into four divisions in the following table:—

1934.1935.1936.1937.1938.
 £££££
Special reduction or remission of duty7,9247,1247,31312,0838,269
Reduction of 3 per cent. in duty25,51225,44171,04169,08559,112
No reduction4,1345,8857,5316,1575,350
Free under general or British preferential tariff18,52217,35133,52044,64517,951
    Totals56,09255,801119,405131,97090,682

RECIPROCITY WITH AUSTRALIA.

A trade agreement between Australia and New Zealand was first entered into on the 11th April, 1922. Under this agreement each country granted to goods of the other the benefits of its British preferential tariff, except with regard to certain classes of goods on which special rates were fixed.

During 1933 a Minister of the Commonwealth Government visited New Zealand to discuss the commercial relations between the two countries. A provisional agreement was reached in April, 1933, and confirmed by the Trade Agreement (New Zealand and Australia) Ratification Act, 1933. The new agreement came into operation from 1st December, 1933.

Under the agreement lower duties than those under the British preferential tariff on New Zealand products entering Australia are provided for on many lines, the chief of which are: Stilton cheese; fresh and frozen fish and fish pastes; dried peas; hay; chaff; fresh, smoked, and preserved meats; onions; lucerne-seed; wine; furs; hats; caps; floor-rugs; various agricultural and dairying implements; whale-oil; casein; sugar of milk; and timber.

The agreement provides that goods which are partially manufactured in Australia or New Zealand shall not be regarded as the produce or manufacture of the Commonwealth or the Dominion, as the case may be, unless the expenditure in material produced in either country and/or labour performed within either country represents not less than one-half of the factory or works cost of the goods in their finished state.

Merchandise trade between New Zealand and Australia during the last ten years has been as follows:—

Year.Imports from Australia.Imports of Australian Origin.Exports to Australia.
 £££
1,9293,631,6253,258,7272,338,410
1,9303,383,9433,023,0651,562,281
1,9312,284,5072,073,3611,167,403
1,9322,571,0802,368,2931,444,860
1,9332,807,9212,576,0921,393,311
1,9343,532,0683,238,1241,882,516
1,9354,295,4573,957,3981,781,811
1,9365,220,3994,941,3761,843,475
1,9376,943,8386,595,6051,824,183
1,9387,468,9877,159,4282,189,454

Article IX of the agreement provides that where with respect to any goods not specially enumerated in the agreement the rate of duty thereon under the New Zealand British preferential tariff is less than the duty under the Australian British preferential tariff, the New Zealand Government may request the Australian Government to admit into the Commonwealth New Zealand-produced goods of such class at the rate of duty chargeable on goods of that class under the New Zealand British preferential tariff. If within three calendar months after the receipt of the request the Australian Government does not comply therewith the New Zealand Government may, without further notice, impose on such goods of Australian origin a rate of duty not being greater than the rate of duty for the time being in force in Australia on the like goods under the Australian British preferential tariff. A similar provision is made with respect to the admission of Australian-produced goods into New Zealand.

The rates of duty payable on Australian goods imported into New Zealand and not specifically mentioned in the agreement are automatically affected by changes in the New Zealand British preferential tariff. A modification of the agreement was made in May, 1935, where under the duty on certain Australian goods which would otherwise have been reduced or removed from 1st June, 1936, following changes made in the British preferential tariff by the Customs Acts Amendment Act, 1934, remained unaltered.

The duties on many Australian goods have since been increased as from 1st March, 1938, by an Order in Council made on 26th February, 1938.

RECIPROCITY WITH CANADA.

From October, 1925, reciprocal trade arrangements with respect to certain items of Canada - New Zealand trade were in force, but ceased in May, 1930.

Negotiations between the Canadian and New Zealand Governments bore fruit in a trade agreement which came into force in both countries for a period originally of one year, as from the 24th May, 1932. This agreement has been extended from time to time, and the present date of expiry (if not renewed) is the 30th September, 1940.

Under the present Canadian tariff on New Zealand produce are included, inter alia: Butter, 5 cents per lb.; cheese, 1 cent per lb.; and lamb and mutton, ½ cent per lb.; while sausage casings, hides and skins, wool, apples, seeds, kauri-gum, and phormium fibre are amongst commodities admitted free.

The rates of duty payable in New Zealand on certain imports from Canada are as under: Salmon, 1¾d. per lb.; silk or artificial silk stockings, 55 per cent.; electric cooking and heating appliances, 30 per cent.; certain agricultural implements, 35 per cent.; timber, 7s. 6d. or 9s. 6d. (rough sawn) and 19s. (sawn and dressed) per 100 sup. ft. The general tariff rate on such timber was increased by 2s. per 100 sup. ft. to afford preference to Canada and other British countries. Canadian goods not mentioned in the agreement enter New Zealand at the ordinary British preferential rates of duty. In some instances where the British preferential rates of duty were reduced by the 1934 tariff the rates on certain Canadian goods mentioned in the agreement were also reduced to the British-preferential level. Special duties are payable on motor-vehicles of Canadian origin, these duties varying according to the Canadian content.

TRADE ARRANGEMENT WITH BELGIUM.

A trade arrangement between New Zealand and the Economic Union of Belgium and Luxemburg was entered into on the 5th December, 1933, and came into force on the 16th December, 1933. The principal provisions of this agreement were: (a) Each country granted most-favoured-nation treatment to the other; (b) New Zealand reduced the duty on certain Belgian goods, chiefly matches (by abolition of surtax), carpets, glassware, sensitized surfaces, and firearms; and (c) Belgium reduced the duty on New Zealand cheddar cheese and fresh apples, and provided for the free admission into Belgium of New Zealand tallow, hides, skins, greasy wool, and phormium fibre.

An extension was made to this agreement, and became operative on and from 1st September, 1936. Reductions in the New Zealand tariff rates were made in respect to maizena and cornflour, cigars, sparkling wines, gloves, belting for machinery, leather manufactures, bevelled and silvered glass, certain cartridges, certain electrical machinery, certain other machinery, and certain pipes and pipe fittings. Surtax was remitted on the above items, and also on wine (other kinds), paper, cartridges, printing-machines, metals, nails, and pipes. 1 he duty on leather gloves was subsequently increased as from 8th April, 1938.

New Zealand produce, upon which a concession in duty or free admission into Belgium is given in the modification to the agreement, comprises honey, sausage-casings, kauri-gum, and casein.

TRADE AGREEMENT WITH GERMANY.

A trade agreement entered into with Germany came into force on 12th October, 1937, and continued in force until the outbreak of the present war.

The principal provisions of the agreement were: (a) Each country accorded most-favoured-nation treatment to the other. (b) New Zealand reduced the duty on and/or exempted from surtax certain German goods, viz., wine, other kinds; drugs and chemicals n.e.i.; braids and bindings n.e.i.; lenses, all kinds; artists' materials; camera cases; clocks; pianos, organs, and similar instruments; musical instruments n.e.i.; cameras; photographic goods n.e.i.; emery paper; paperhangings; engines, viz., specially suited for cycles; artificers' tools; field glasses; builders' hardware; kalsomine and distempers in powder form. German goods of the classes mentioned were also exempt from the surtax of nine-fortieths of the duty payable in respect of goods liable to the general tariff, (c) In return for the concessions granted, Germany agreed to expend the credits built up by the sale of German goods in New Zealand in the purchase of New Zealand goods. It was agreed that 25 per cent. of the first £400,000 of such credits should be used for the purchase of butter and 5 per cent. for the purchase of apples. Fifty per cent. of any credits in excess of £400,000 was to be expended on the purchase of butter and 20 per cent. on apples, with a limit, in the latter instance, of £60,000 in any one year.

OTHER TRADE ARRANGEMENTS.

New Zealand is also a party to certain commercial treaties, conventions, or arrangements with countries other than those referred to above. In certain instances these became applicable to New Zealand automatically as a member of the British Empire, while in others New Zealand has become a party signifying her willingness to adhere to treaties negotiated by the United Kingdom. New Zealand has also in some cases entered into agreements with foreign countries by direct negotiation with those countries, and in others the United Kingdom has acted for New Zealand in making trade agreements on her behalf. In some instances the trade involved is insignificant.

By Order in Council of the 21st February, 1934, the duties and exemptions from duty provided for in the Trade Arrangement (Belgium and New Zealand) Ratification Act, 1933, were applied to similar goods the produce or manufacture of the following countries: Argentina, Brazil, China, Czechoslovakia, Egypt, Finland, Germany, Hungary, Italy, Japan, Norway, and Spain. Sweden was added to the list of countries by Order in Council of the 7th June, 1935, and Greece by Order in Council of 22nd October, 1936. The concessions granted to Germany under the agreement mentioned above were also made applicable, by an Order in Council dated 11th October, 1937, to all the other “ most-favoured-nation” countries mentioned above, including Belgium.

Direct trade arrangements have also been entered into with the Netherlands and Switzerland.

The Customs (Tariff Preference and General) Regulations, 1936, set out the classes of goods from foreign countries which may be entered at concessional rates of duty applying to any such countries as a result of treaty obligations between New Zealand and such countries,—

  1. Goods wholly the produce of such a country:

  2. Goods wholly manufactured in such a country from unmanufactured raw materials:

  3. Goods partially manufactured in such a country, provided (1) that the final process of manufacture has been performed in that country or in any British country the produce or manufactures of which are entitled to be entered under the British preferential tariff otherwise than pursuant to any agreement or arrangement made between New Zealand and such country; (2) that the expenditure in material the produce of that country, and/or in labour performed in that country, on each and every article is not less than one-half of the factory or works cost of such article in its finished state.

SUBSECTION E.—TRADE OF PORTS.

OVERSEAS IMPORTS.

NEW ZEALAND has twenty-one ports of entry for Customs purposes, eleven in the North Island and ten in the South.

The following table gives the total value of imports of merchandise for the several ports of entry. Waitara had no overseas imports or exports during the period, Tokomaru Bay no imports, and Tauranga no exports.

Port.1934.1935.1936.1937.1938.
 £££££
Kaipara558..445....
Auckland10,780,91512,136,23515,405,34218,638,31718,772,988
Tauranga4,5925,5446,7156,8319,684
Gisborne93,181103,280111,056131,528145,602
Napier410,884452,536568,516666,941664,977
New Plymouth388,339471,370543,757695,145696,661
Patea7,3818,3239,38710,06011,675
Wanganui274,025298,312301,118357,567331,687
Wellington11,031,60413,212,45716,392,42721,506,69821,448,758
Wairau (incl. Picton)35,20330,79233,34757,96730,225
Nelson148,350154,004141,189231,939197,609
Westport15,96919,67023,70628,14235,227
Greymouth107,961139,193157,914167,710269,969
Hokitika6,3276,2984,8357,7809,210
Lyttelton4,081,0894,813,1905,801,2147,607,3667,132,399
Timaru253,557263,848271,528348,919278,450
Oamaru53,42047,71059,39573,25183,678
Dunedin3,096,3593,502,2743,729,8184,679,7364,434,695
Invercargill549,838652,231697,177944,798868,695
Totals31,339,55236,317,26744,258,88656,160,69555,422,189

During each of the five years covered by the above table over two-thirds of the imports came in by way of Wellington or Auckland, the actual proportion in 1938 being 72.6 per cent. Over the five years imports into Wellington averaged £16,718,389 annually (37.4 per cent. of the total), and into Auckland £15,146,759 (33.9 per cent.). On the basis of aggregate imports for the five years the next most important ports are Lyttelton, Dunedin, Invercargill, New Plymouth, Napier, Wanganui, and Timaru.

OVERSEAS EXPORTS.

From 1914 to 1921 the Customs Department allocated exports as far as possible to the appropriate district of production, whether exported through the port for such district or not, and no complementary figures are available to show the export trade from each individual port for this period. The system, however, did not prove satisfactory in practice, and the method of showing exports according to the port at which the goods are placed on board the vessel by which they leave the Dominion was reverted to from the 1st January, 1922.

Over the last five years exports through Auckland averaged £18,152,192 annually (33.0 per cent. of the total), and through. Wellington £13,206,728 annually (24.0 per cent.). Combining imports and exports, Auckland is given place as premier port of New Zealand on this basis. Aggregating exports for the last five years, other important ports are placed in this order: Lyttelton, Napier, New Plymouth, Dunedin, Invercargill, Timaru, Wanganui, and Gisborne.

The following table gives for the last five years the overseas exports according to the port at which they were actually placed on board the overseas vessels. The concentration of the export trade in the ports of Auckland and Wellington is less marked than with the import trade. Nevertheless, in each of the five years shown below, these two ports together accounted for more than half the total exports of the Dominion.

Port.1934.1935.1936.1937.1938.
 £££££
Kaipara2,7732,1821,855660..
Auckland13,461,68316,084,92218,765,47922,303,97220,144,906
Tokomaru Bay222,468179,482270,965112,554117,199
Gisborne1,244,803932,424992,2931,257,8631,106,424
Napier3,097,9562,844,3303,332,6984,196,5763,531,350
New Plymouth2,489,2433,010,7843,469,0633,725,5924,212,332
Patea....6..7
Wanganui1,392,1141,168,3061,438,8111,545,2781,106,476
Wellington11,793,83810,797,93313,648,68916,012,05113,781,130
Wairau (incl. Picton)231,342243,479323,147293,867247,736
Nelson238,054123,985232,541106,289269,066
Westport52,01853,18852,74953,24457,845
Greymouth283,677368,311259,973274,955384,213
Hokitika24,95035,14027,94026,3874,449
Lyttelton4,298,4163,803,3154,931,8756,408,6704,764,299
Timaru1,798,2201,391,2471,620,5692,031,6641,712,069
Oamaru446,313413,626464,201447,561330,633
Dunedin3,165,8122,418,2503,762,6204,217,1013,231,770
Invercargill3,064,9352,639,0633,116,0523,664,4583,344,763
Parcels-post34,23228,41440,41434,63729,616
    Totals47,342,84746,538,38156,751,94066,713,37958,376,283

While in the case of imports, goods received through parcels-post are allocated according to ports of entry, a similar treatment is not possible in the case of exports. The total of goods exported by parcels-post is accordingly shown under the heading “ parcels-post.”

The west coast ports of both Islands, as well as Nelson and Wairau in the northern portion of the South Island, send much of their produce to Wellington for loading into overseas vessels.

PORT TONNAGE STATISTICS.

The following table gives for the aggregate of all ports a summary of the cargo handled.

Year.Inwards.*Transhipments.Outwards.*Total Manifest Tonnage.
Coastal.Overseas.Coastal.Overseas.
* Excluding transhipments.
 Tons.Tons.Tons.Tons.Tons.Tons.
1,9292,160,8832,319,471406,0542,176,878853,8108,323,150
1,9302,080,0862,106,784398,7392,115,759801,9597,902,066
1,9311,565,7951,556,275278,9271,637,703723,0236,040,650
1,9321,403,9771,489,347248,5361,488,052829,9165,708,364
1,9331,383,8451,374,774235,7221,447,258995,6505,672,971
1,9341,493,2691,655,838273,8141,540,510953,5286,190,773
1,9351,603,8251,886,316258,2661,626,784936,3376,569,794
1,9361,833,9912,304,836282,0671,835,5361,000,0357,538,532
1,9371,984,3532,639,861318,0671,984,248976,1168,220,712
1,9381,971,8322,708,117303,9211,937,129936,2748,161,194

In order to obtain statistics of the total trade of each port a system of monthly returns from the various port authorities was instituted in 1922, showing under some forty headings the quantity of goods handled, distinguishing inwards and outwards cargo, coastal and overseas, and transhipments. The resultant statistics show on a tonnage basis the total trade of each port, including all exports, whether placed on the overseas vessel there, sent to a central port for shipment overseas, or despatched coastwise to another port for consumption in New Zealand. For obvious reasons, total values of goods shipped coastwise cannot be obtained.

For all data given under this head it is advisable to note that the term “ton” does not invariably denote a weight of 2,240 lb. For a portion only of the goods handled is it practicable to obtain the actual weights involved. In other cases close approximations are made by applying uniform formulae as to the number of bales, cases, sacks, &c., to the ton. In a few instances the tons are “short” tons of 2,000 1b. A considerable portion of trading goods, however, is recorded in “ measurement” tons, 40 cubic feet of space being regarded as the equivalent of a ton. As the practice is uniform., comparisons from year to year are not appreciably affected, nor are comparisons between ports, unless there is a radical difference in the class of trade carried on, in which case recourse should be had to consideration of items of trade. Since a much larger proportion of imports are in “ measurement” tons, thus artificially swelling the figures, direct comparison of import cargo tonnage with export is invalid.

The following table shows for each port the total cargo inwards and outwards in 1938. The high proportion of transhipments in the case of Wellington is very noticeable.

Port.Inwards.*Transhipments.Outwards.*Total Manifest Tonnage.
Coastal.Overseas.Coastal.Overseas.
* Excluding transhipments.
 Tons.Tons.Tons.Tons.Tons.Tons.
Awanui5,679....1,560..7,239
Mangonui2,927....828..3,755
Russell4,866....5,0616,37616,303
Hokianga7,609....1,510..9,119
Whangarei49,4002,412..120,051..171,863
Kaipara1,646799..306..2,751
Mangawai689....87..776
Auckland540,5551,070,20260,793252,635250,9192,235,897
Onehunga14,020..2233,930..47,994
Great Barrier642....333..975
Port Waikato9,885....125..10,010
Raglan2,732....813..3,545
Kawhia1,676....348..2,024
Thames4,312....1,764..6,076
Coromandel1,317....383..1,700
Tauranga17,253....1,279..18,532
Whakatane18,997....14,747..33,744
Opotiki11,733....5,765..17,498
Tokomaru Bay7,315..1643,4972,75513,895
Tolaga Bay1,248..409387262,992
Gisborne61,0218,07055722,24415,492107,941
Waikokopu8,130..614702,30811,030
Wairoa2,953....1,291..4,244
Napier71,60426,3964,25117,57150,765174,838
Waitara208........208
New Plymouth61,91394,783..5,12258,582220,400
Patea..4,386..25,116..29,502
Wanganui51,09651,402..22,59521,138146,231
Foxton5,729........5,729
Wellington504,934805,661217,880337,364249,2982,333,017
Picton43,637365..34,1844,33682,522
Wairau5,652....2,832..8,484
Nelson81,5096,70213,32058,0997,300180,250
Motueka8,336..5318,822..27,264
Waitapu4,556....2,241..6,797
Westport10,907..10391,63034,491437,048
Greymouth20,2842,800..205,96524,241253,290
Hokitika2,619....4,697..7,316
Lyttelton158,410306,6753,422176,79180,639729,359
Akaroa      
Timaru22,09713,9871652,32824,953113,397
Oamaru5,1305,896..13,6715,17429,871
Dunedin92,457255,3673,33273,64237,669465,799
Invercargill7........7
Bluff38,87056,600..24,09559,112178,677
Half-moon Bay886....399..1,285
  Totals1,971,8322,708,117303,9211,937,129936,2748,161,194

The penultimate column of the preceding table shows the quantity of cargo placed on board the overseas vessels at the respective ports, and a table will be found in Section XI showing the number and tonnage of overseas vessels calling at each port. These tables give a good indication of the extent to which each port enters directly into the overseas trade of the Dominion. The following table shows for the year 1938 the total shipments from each port (overseas and coastwise and including transhipments) of nine principal commodities exported overseas by the Dominion, and thus shows the extent to which the various ports handle overseas exports, although the goods may be sent outwards coastwise for transhipment at another port.

Port.Wool.Frozen Meat.Butter.Cheese.Tallow.Hides, Pelts, and Skins.Coal.Fruit, Fresh.Timber.All other Goods.Totals.
* Detailed figures not available.
 Tons.Tons.Tons.Tons.Tons.Tons.Tons.Tons.Tons.Tons.Tons.
Awanui*..................1,5601,560
Mangonui62..513....6......247828
Russell1525,8631,372..286168..2..3,59411,437
Hokianga....1,415............951,510
Whangarei187..4,014....112671,769462,407111,449 120,051
Kaipara................306..306
Mangawai5................8287
Auckland19,58147,396103,34117,78410,07111,1814,0918,20910,625332,068564,347
Onehunga49..3113112313367332,95133,952
Great Barrier*..................333333
Port Waikato............100....25125
Raglan330..460....6......17813
Kawhia198..55..........8510348
Thames1..231,012........67221,764
Coromandel*..................383383
Tauranga27......12..57704741,279
Whakatane51..4,9981,20584118....4377,85414,747
Opotiki271..3,272..1783....102,1125,705
Tokomaru Bay1,7981,457....25392......2,8166,416
Tolago Bay911......6........7871,704
Gisborne..5,8209,1712,488 891,1921,181..650717,695 32238,293
Waikokopu2672,024....1723....186..2,839
Wairoa4294730..224113......4481,291
Napier20,02824,0102,283872,8482,4991,4343,65356614,57972,587
Waitara           
New Plymouth52023,24312,43518,3261,9541,283....705,87363,704
Patea....1,95921,010..........1,54725,116
Wanganui13,61113,2892,6982,4171,6761,751215..718,00543,733
Foxton           
Wellington39,96458,69822,70037,74311,66911,67836,50046,6205,372533,598804,542
Picton4,3141,850339648219330..1,5574929,21438,520
Wairau529..23355......1951,9912,832
Nelson9561,3706961422213893,77439,95524330,70078,719
Motueka120......1539..16,34112,35918,875
Waitapu125..797....18......1,3012,241
Westport........2543420,51033,8031,747426,131
Greymouth7......94167,755..61,1421,289230,206
Hokitika..........10....3,0771,6104,697
Lyttelton18,53531,6302,3251,1244,9555,345532,6117,681186,593260,852
Akaroa           
Timaru8,01113,6941,0097431,4971,066....1,00650,27177,297
Oamaru7003,397....52315......13,71018,845
Otago15,64012,8771761,8712,0022,3452041,09226478,172114,643
Invercargill           
Bluff9,13422,80525211,1712,6062,0282581077,84227,00483,207
Half-moon Bay..........63..336399....
Totals162,933273,321170,159116,03842,48541,884636,786121,071106,7041,505,9133,177,324

TRANSHIPMENTS.

Transhipments of cargo during 1938 totalled 303,921 tons, of which 217,880 tons were transhipped at Wellington.

Transhipments are of four classes, as follows:—

  • Coastal to Coastal.—Cargo which has been loaded on a vessel at one New Zealand port and is transhipped to another vessel for discharge at another New Zealand port.

  • Coastal to Overseas.—Cargo which has been loaded on a vessel at a New Zealand port and is transhipped to another vessel for discharge at a port outside of the Dominion.

  • Overseas to Coastal.—Cargo which has come from overseas and is transhipped to another vessel for discharge at a New Zealand port.

  • Overseas to Overseas.—Cargo which has come from overseas and is transhipped to another vessel for discharge outside New Zealand.

The first class represents purely coastal trade, but each of the others may be added to the appropriate figures of overseas trade shown previously to ascertain the total tonnage of goods arriving from or departing overseas. The total inward tonnage from overseas is found to be 2,843,261 and the total outward tonnage going overseas 1,058,133. As stated previously, import and export figures are not on the same basis, and are thus not comparable.

Two tables are appended showing the transhipment trade of each port affected for 1938, and the transhipments of the various items of merchandise, &c.

TRANSHIPMENTS, BY PORTS AND CLASS, 1938.

Port.Coastal to Coastal.Coastal to Overseas.Overseas to Coastal.Overseas to Overseas.Totals.
 Tons.Tons.Tons.Tons.Tons.
Auckland8,3897,08641,1624,15660,793
Onehunga22......22
Tokomaru Bay44120....164
Tolaga Bay40......40
Gisborne557......557
Waikokopu61......61
Napier3,111681459..4,251
Wellington31,074101,48285,202122217,880
Nelson7,2485,196876..13,320
Motueka53......53
Westport10......10
Lyttelton1011,8741,437103,422
Timaru..16....16
Dunedin4961,1161,720..3,332
    Totals51,206117,571130,8564,288303,921

TRANSHIPMENTS, BY ITEMS AND CLASS, 1938.

Item.Coastal to Coastal.Coastal to Overseas.Overseas to Coastal.Overseas to Overseas.Totals.
 Tons.Tons.Tons.Tons.Tons.
Beans and peas43975160..1,178
Butter337,407....7,440
Cement2,596645343,140
Cheese123,140....23,141
Coal21,92313,461205..35,589
Flour1,95311007222,776
Fruit, preserved54442,53523,085
Fruit, fresh2,11535,5074,062641,690
Hemp (fibre and tow)3255221..479
Hides, pelts, and skins2655,318..995,682
Manures, artificial1,279227,144108,455
Milk-products (other than butter and cheese)861,397....1,483
Motor - spirit, kerosene, and other fuel oils88142,746842,843
Pollard and bran430..64711,078
Potatoes1,021332....1,353
Seeds243588228..1,059
Sugar1,597..781,612
Tallow366,922....6,958
Timber1881,0664,51985,781
Wines, spirits, and beer1,157..1,030932,280
Wool12217,880....18,002
All other goods15,4833,28967,2482,79788,817
    Totals51,206117,571130,8564,288303,921

Chapter 11. SECTION XI.—SHIPPING.

REGISTERED VESSELS.

THE number and tonnage of vessels on the New Zealand register at 31st December, 1938, were as follows:—

Port of Registry.Sailing-vessels.Steam-vessels.Motor-vessels.
Vessels.Gross Tonnage.Net Tonnage.Vessels.Gross Tonnage.Net Tonnage.Vessels.Gross Tonnage.Net Tonnage.
Auckland321,9851,6045614,2226,97621316,5508,047
Napier......101,382644102,7821,447
Wellington101,1601,00646100,76553,880258,3494,389
Nelson1191985,9082,598111,317656
Lyttelton41,7281,654103,8831,599102,3911,254
Timaru......19424881113
Dunedin......158,2584,323124,2252,329
Invercargill......101,498552727197
    Totals474,8924,283156136,85871,06028935,89618,222

Auckland is the port of registry of the majority of the vessels forming New Zealand's “ mosquito” fleet, the average net tonnage of the 301 vessels on the Auckland register being only 55 tons. At Wellington and Dunedin many of the vessels of the Union Steam Ship Company of New Zealand are registered, while several of the larger vessels of this company employed in both the coastal and foreign trade of the Dominion are registered in the United Kingdom. The registration figures at the end of each of the last ten years are as follows:—

Year.Sailing-vessels.Steam- and Motor-vessels.Totals.
Vessels.Gross Tonnage.Net Tonnage.Vessels.Gross Tonnage.Net Tonnage.Vessels.Gross Tonnage.Net Tonnage.
1929719,8858,868470201,563110,649541211,448119,517
1930656,6855,892466194,965106,078531201,650111,970
1931656,6855,892465193,264104,047530199,949109,939
1932586,1635,380461208,589111,985519214,752117,365
1933565,5884,809460200,141106,786516205,729111,595
1934555,5354,789441182,90396,570496188,438101,359
1935525,4214,726443174,32691,281495179,74796,007
1936535,4234,701430183,00596,405483188,428101,106
1937515,2324,587431181,29394,955482186,52599,542
1938474,8924,283445172,75489,282492177,64693,565

In the next table registered vessels in the Dominion have been classified according to whether employed in the coastal or the foreign trade. The totals given here do not agree with those shown previously, as in this table vessels employed exclusively in the “river” trade have not been included.

The number of vessels coining within the following category has fallen from 251 to 184 during the last ten years (a decrease of 27 per cent), while the total net tonnage has declined by 17 per cent. The principal decrease has taken place in the number of vessels on the register which were engaged in the foreign trade only. Of the 251 vessels in 1928. some 37 were sailing-ships; but these have now entirely disappeared from the register, there being no such vessels engaged in the home or home and foreign trade in 1938.

Size of Vessel.Employed in the Coastal Trade only.Employed partly in the Coastal and partly In the Foreign Trade.Employed in the Foreign Trade only.
Number of Vessels.Net Tonnage.Number of Vessels.Net Tonnage.Number of Vessels.Net Tonnage.
Under 50 tons681,247........
  50 and under 100 tons312,255........
  100 and under 200 tons233,121o321....
  200 and under 300 tons92,2311286....
  300 and under 400 tons82,8091342....
  400 and under 600 tons41,928....1586
  600 and under 800 tons42,990....21,492
  800 and under 1,000 tons43,393....1944
1,000 and under 1,500 tons33,84144,61434,007
1,500 and under 2,000 tons23,35511,91059,163
2,000 tons and over12,629....629,490
    Totals15729,79997,4731845,682

OVERSEAS SHIPPING.

Throughout the remainder of this section all tonnage figures relate to net tonnage.

The tonnage of vessels entered and cleared during 1938 amounted to 6,186,762, as compared with 5,888,678 for 1937. The number of vessels increased from 1,254 to 1,316.

Of late years the tendency has been for vessels of a larger size to be employed in the New Zealand trade, in order to cope with the growing imports and exports of the Dominion and for the purposes of the passenger traffic. The increase over a period of years is thus more noticeable in a comparison of tonnage than by comparing the number of vessels.

NATIONALITY OF VESSELS.

Considering only vessels entered inwards, the number registered in the United Kingdom represented, in 1938, 42 per cent. of the total, but on a tonnage basis the percentage is found to increase to 50. The average tonnage of the vessels was 5,664. Although vessels registered in New Zealand and other British countries (i.e., other than United Kingdom) comprised 41 per cent. of the total vessels, the tonnage, on the other hand, was only 27 per cent. of the aggregate. The average tonnage was comparatively low, being only 3,560. Foreign vessels constituted 17 per cent. of the number, and 23 per cent. of the tonnage, with an average tonnage for each vessel of 6,103.

The foreign vessels entered inwards consisted of 26 American (358,898 tons), 31 Norwegian (151,004 tons), 16 Japanese, 15 Netherlands, 13 German, 4 Swedish, 4 Panama, 3 French, 2 Finnish, and 1 Philippine.

Year.United Kingdom.Other British Countries.Foreign Countries.Totals.
Vessels.Tons.Vessels.Tons.Vessels.Tons.Vessels.Tons.
Entered.
1,9342491,410,180241681,26595541,5935852,633,038
1,9352321,306,680286701,48391562,9496092,571,112
1,9362671,480,174268738,223103671,3116382,889,708
1,9372551,450,490262813,595117698,7956342,962,880
1,9382751,557,731270825,116115701,8586603,084,705
Cleared.
1,9342411,386,171244677,36490524,5425752,588,077
1,9352351,322,672292707,675100587,3226272,617,669
1,9362631,461,160262725,328104664,5466292,851,034
1,9372471,418,942256810,181117696,6756202,925,798
1,9382751,561,109267843,088114697,8606563,102,057

DIRECTION OF OVERSEAS SHIPPING.

Particulars of the number and net tonnage of vessels entered and cleared between New Zealand and various countries during the years 1937 and 1938 are given below:—

Country.1937.1938.
Entered.Cleared.Entered.Cleared.
No.Tonnage.No.Tonnage.No.Tonnage.No.Tonnage.
United Kingdom93606,596117738,30989604,088121784,683
India316,380316,380316,380210,919
Malaya822,61938,384415,66539,174
Seychelles Islands11,709....614,064....
Union of South. Africa316,795....317,02813,607
Canada47238,31621144,58443234,51714125,036
Australia2781,222,1573061,319,0923081,358,6303331,412,519
Fiji1431,0841637,0651529,1701432,048
Nauru Island1751,3281646,5141959,3622062,057
Norfolk Island11,14611,146........
Gilbert and Ellice Islands2053,2141232,8581339,6421133,253
Solomon Islands....21,432....11,289
Tonga12,11238,766413,308715,151
Western Samoa139,802139,8021411,914129,048
Belgium517,85828,492823,287....
Germany14,07516,538....13,608
Italy12,639....13,417....
Netherlands........12,473....
Bahrein Island14,729....422,493210,355
Netherlands East Indies36168,56526123,21042204,31329143,547
French Indo-China49,03937,2811027,431924,373
Japan2691,1762795,0191544,0581441,162
Iran14,864....14,211....
Egypt......11,426......
Portuguese East Africa........16,853....
Cuba........13,038....
Uruguay............15,812
Peru............15,895
Dominican Republic25,529............
Argentina........12,953....
United States of America55373,13240292,48848317,41248340,850
New Caledonia13,331414,54247,429817,699
New Hebrides1143....11431143
Tuamotu Archipelago....25,729....12,835
Society Islands14,54214,542....14,542
Tutuila....13,625....12,452
Totals6342,962,8806202,925,7986603,084,7056563,102,057

Forty-seven per cent. of the vessels and 44 per cent. of the total tonnage inwards during the two years covered by the foregoing table came from Australia, while a somewhat higher proportion of the shipping outwards was cleared for Australia. The United Kingdom ranks second with 20 per cent. of the total tonnage inwards, the United States third with 10 per cent., Canada fourth with 8 per cent., and the Netherlands East Indies next with 7 per cent.

Shipping between New Zealand and certain principal countries for each of the last five years is as follows:—

Year.Australia.United Kingdom.United States.Canada.Netherlands East Indies.Pacific Islands.
 Tons.Tons.Tons.Tons.Tons.Tons.
Entered.
1,934914,693715,061410,526282,896110,95593,664
1,935992,258571,335397,737250,553106,478114,947
1,9361,155,082565,764414,554251,996140,908130,020
1,9371,222,157606,596373,132238,316168,565156,702
1,9381,358,630604,088317,412234,517204,313160,968
Cleared.
1,9341,051,808771,153349,045178,18565,020116,514
1,9351,102,314694,438445,020144,21454,880106,313
1,9361,135,831745,618404,314199,27677,126164,034
1,9371,319,092738,309292,488144,584123,210166,021
1,9381,412,519784,683340,850125,036143,547178,228

SHIPPING TRADE OF PORTS.

New Zealand has twenty-one ports of entry for Customs purposes (vide Subsection E of the preceding section), and there are numerous other ports around the coast. A vessel arriving from overseas may call at several ports in the Dominion to discharge and load cargo, and is recorded as an overseas arrival at the first port of call, and as an overseas departure from the port from which it finally sails. Its movements from one port to another in New Zealand are treated as coastwise shipping. The figures in the following table must simply be taken as showing the extent to which various ports are made the first port of arrival or the last port of departure, and not as indicating the relative overseas trade of the various ports.

OVERSEAS SHIPPING, BY PORTS OF FIRST ARRIVAL AND FINAL DEPARTURE.

Port.Entered.Cleared.
1936.1937.1938.1936.1937.1938.
 Tons.Tons.Tons.Tons.Tons.Tons.
Auckland1,748,1421,863,4421,875,7971,243,1431,309,8521,418,618
Gisborne17,6665,1405,2337,923..10,248
Napier9,81812,44311,47468,69255,30070,833
New Plymouth95,80470,58893,43824,49030,94636,177
Wanganui5,79618,3355,00044,59937,25834,480
Wellington614,595682,343708,937866,361816,427863,082
Picton9,3048,5889,3525,0191,8922,251
Nelson6,2361,15411,346..3,3396,792
Westport3,6694,36311,28372,04074,33760,179
Greymouth3321661,18726,89322,22725,951
Lyttelton83,605105,896130,419117,794178,700148,448
Timaru5,42910,67811,3916,999..5,616
Oamaru14,9259,99320,4064,2431,86414,252
Dunedin104,86659,78338,295256,214286,459290,675
Bluff169,521109,968151,147106,624107,197114,455
    Totals2,889,7082,962,8803,084,7052,851,0342,925,7983,102,057

Tables showing for each port the total shipping entered and cleared, and distinguishing between overseas and coastal vessels, irrespective of whether the former had been entered or cleared overseas or coastwise, are published annually in Part II of the “Statistical Report on Trade and Shipping.”

The movement of overseas and coastal vessels on the New Zealand coast is well illustrated in the following table, which gives the aggregate number and tonnage of the total calls made during each of ten years.

Year.Overseas Vessels.Coastal Vessels.Total.
Number.Net Tonnage.Number.Net Tonnage.Number.Net Tonnage.
19292,4078,752,83720,8065,447,17123,21314,200,008
19302,5959,494,30620,2385,150,03222,83314,644,338
19312,4128,357,86517,5734,658,13619,98513,016,001
19322,1837,940,90417,4235,025,74219,60612,966,646
19332,1968,531,20717,9815,247,37320,17713,778,580
19342,3088,679,02718,5465,223,90920,85413,903,536
19352,5689,105,55318,2814,947,11720,84914,052,670
19362,5199,952,12418,3144,859,50220,83314,811,626
19372,4169,994,64418,3865,155,39220,80215,150,036
19382,44910,069,10617,9254,910,76120,37414,979,867

Overseas vessels show a substantial recovery from the low level of the depression years, the tonnage showing a steady increase since 1932. The number of visits made by vessels engaged exclusively in the coastal trade reached its peak in 1924, after which there was a decline, with, however, an upward trend since 1935, arrested by a moderate fall in 1938. The tonnage has not shown so marked a movement, the figures indicating a tendency to employ a larger type of vessel in this class of trade.

Figures showing the number and tonnage of all vessels entered into each port during 1938 are given in the following table. In this table, however, no distinction is made between overseas and coastal vessels.

Port.Number.Tonnage.Fort.Number.Tonnage.
Parengarenga975,788Waitara2162
Awanui14110,992New Plymouth270472,628
Mangonui859,603Patea15715,901
Whangaroa16716,548Wanganui367261,861
Russell197123,714Foxton453,019
Hokianga1039,804Wellington2,8163,961,790
Whangarei901153,360Havelock....
Kaipara93,187Picton396257,002
Mangawai451,916Wairau12512,323
Auckland6,4473,212,383Nelson969320,972
Onehunga20526,923Motueka21021,511
Raglan486,333Waitapu1304,354
Kawhia415,376Westport406283,413
Thames55826,151Greymouth301143,593
Coromandel3408,854Hokitika684,082
Whitianga1476,650Lyttelton1,2572,181,299
Tauranga25318,681Akaroa....
Whakatane1519,681Timaru362480,480
Opotiki716,039Oamaru140148,201
Tokomaru Bay15398,057Dunedin5561,189,924
Tolaga Bay8330,596Invercargill....
Gisborne311255,824j Bluff518576,951
Waikokopu11276,225Half-moon Bay1498,200
Wairoa612,100......
Napier404507,425.... 
......Totals20,37414,979,867

Wellington ranks as the first port of the Dominion as regards aggregate tonnage of shipping entered, followed by Auckland, Lyttelton, Dunedin, Bluff, Napier, Timaru, and New Plymouth in that order. Wellington largely owes its position to the fact that it is the northern terminus of the three inter-island passenger services, with Lyttelton, Nelson, and Picton as the respective South Island termini. Auckland figures, on the other hand, are supplemented through passenger vessels operating between Australia and the west coast of North America making Auckland their only port of call in New Zealand.

In the following table are shown the ports at which overseas vessels called during 1938, together with the number and tonnage of overseas vessels entered. The table covers all vessels engaged in the overseas trade, whether entered overseas or coastwise, and the figures for individual ports differ greatly from those given in a previous table, wherein the tonnage of overseas vessels entered is counted only for the port of first entry in the Dominion.

Port.Number.Tonnage.Port.Number.Tonnage.
Whangaroa1946Wellington5562,444,446
Russell19110,571Picton1759,411
Whangarei6079,517Nelson1558,327
Kaipara21,476Westport107162,162
Auckland5452,736,978Greymouth8999,736
Tokomaru Bay959,085Lyttelton2881,188,418
Tolaga Bay27,505Timaru77305,366
Gisborne35163,634Oamaru2269,458
Waikokopu950,018Dunedin234968,933
Napier87411,098Bluff130483,127
New Plymouth101416,653......
Wanganui44192,241Totals2,44910,069,106

Overseas vessels are shown to have called at twenty-two ports during 1938, including seven which were not first ports of call for a single overseas vessel. The total entries of the 660 overseas vessels during the year were 2,449, which gives an average of a little less than four ports called at on each visit to the Dominion. Many vessels—as, for instance, those engaged in the transport of timber and coal, and those merely touching at a New Zealand port while en route between Australia and America—call at only one port in the Dominion, while, on the other hand, vessels engaged in the United Kingdom trade generally call at half a dozen or more ports.

MARINE OFFICERS' CERTIFICATES.

The examinations for masters, mates, engineers, &c., of vessels are controlled by the Marine Department, and the regulations relating to these examinations are based upon those of the Imperial Board of Trade, with such modifications as are necessitated by local conditions; but the British Board of Trade recognizes the following New Zealand certificates only as of Imperial validity: Master, extra; master, ordinary (endorsement); master, steamship; first mate and second mate, ordinary (endorsement) and steamship; first- and second-class steam engineers, and first- and second-class motor engineers. It is a condition of such recognition that candidates must possess service qualifications and pass examinations similar and not inferior to those prescribed by the British Board of Trade.

New regulations for the examination of masters and mates were issued by the Board of Trade on 1st January, 1931, and corresponding regulations were made in New Zealand and came into force on the same date. Since that date masters' and mates' ordinary certificates have not been issued, steamship certificates endorsed to the effect that the holder is eligible to act in a sailing-ship having been substituted therefor.

New regulations relating to the examination of engineers in the Mercantile Marine came into force on the 28th February, 1938. These regulations made provision for First- and Second-class Coastal Motor Engineers' examinations to take the place of First- and Second-class Engineers' P.V.O.S. examinations, which were discontinued as from the 28th February, 1938.

During 1938-39 251 examinations were held. Of the 159 who passed, 50 obtained certificates (Imperial validity) as masters, mates, and engineers of foreign-going steam- or motor-ships, 21 obtained certificates as masters and mates of home-trade vessels; 27 as third-class engineers of steamships; 17 as masters and engineers of steamships plying within restricted limits; 7 as engineers of coastal motor-vessels; and 32 as engineers of vessels propelled by mechanical power other than steam plying within restricted limits; 2 passed for the fore and aft endorsement: 1 for compass syllabus; and 2 for master of a pleasure yacht in New Zealand waters.

SURVEY OF SHIPS.

The Shipping and Seamen Act of 1908, and its amendments, provide for an annual survey by Government surveyors of all vessels, with a view to ensuring their seaworthiness. Certificates of survey were issued in 1938-39 to 160 seagoing steam- or motor-ships, and 361 restricted-limits steam- or motor-ships. Vessels to the number of 317 were also surveyed for seaworthiness and efficiency under section 226 of the 1908 Act.

LIGHTHOUSES.

Along the New Zealand coast there are fifty-one lighthouses of various types. In twenty-four cases the lights are watched lights and the apparatus is classed as of the dioptric order—i.e., a central lamp sending its rays through a combination of surrounding lenses—while the remainder of the coastal lighthouses are automatic lights. The buildings housing the lights are of varying kinds, as necessitated by their respective situations.

Fog-signals of the Diaphone type are established at Pencarrow Head, Godley Head, Taiaroa Head, and Tiri Tiri Island; while radio fog-signals have been established at Baring Head, Stephen's Island, and Cape Campbell; and radio-beacons at Cape Maria van Diemen, Tiri Tiri Island, and Portland Island. Radio fog-signals are in course of establishment at Cuvier Island and Moko Hinau.

The most powerful light is that of Stephen's Island, which, placed some 600 ft. above high water, is visible at a distance of 32½, £ nautical miles. Next in order come Cape Brett light (altitude 510 ft.) and East Cape (505 ft.), both visible at 30½ miles; Godley Head (altitude 450 ft.), visibility 29 miles; Cuvier Island light (altitude 390 ft.) and Moko Hinau (altitude 385 ft.), both of which have a visibility of 27 miles. Sixteen other lights have a range of 20 miles or over.

All manually-attended coastal lighthouses are equipped with signalling Hags and lamps, the keepers being competent to transmit or receive messages. Coastal lights—i.e., those outside the bounds of the various harbour authorities—are maintained by the Marine Department.

The average cost of erection and equipment of the main coastal lighthouses was about £6,000 per light. The two most costly were Cape Brett Lighthouse (£11,237) on the Auckland Peninsula, and Dog Island Lighthouse (£10,481) in Foveaux Strait. The expenditure on all lighthouses under the control of the Marine Department was for 1938-39—Salaries and wages, £18,334; stores and general maintenance, £9,873; radio-beacons, improvements, &c., £23,042; working-expenses of tender, £26,704; administration expenses, £8,963; interest and sinking-fund charges, £12,383; depreciation, £12,222: total, £111,521. Light dues for 1938-39 totalled £106,430.

WRECKS.

In the case of any wreck or shipping casualty in New Zealand waters a Collector of Customs, Superintendent of Mercantile Marine, or other person empowered by the Minister of Marine, institutes an inquiry into the cause and circumstances of such casualty. If necessary, a formal investigation is held by a Magistrate, who has power to cancel or suspend the certificate of any officer from whose wrongful act or default damage has resulted.

Should any wreck occur on the coast, the Receiver of Wrecks for that district, usually an officer of the Customs, has the necessary authority to be used in the preservation of life and property.

During the year 1938-39 sixty-three inquiries, one of which was Magisterial, were held into shipping casualties, the number of vessels involved being 72. There was one serious casualty during the year, but no lives were lost. A summary of the casualties is given.

Strandings—No.Tonnage.Fires—No.Tonnage.
Total loss211Total loss....
Damaged139,115Damaged316,313
Undamaged3913Undamaged26,309
Collisions—  Miscellaneous3179,080
Total Loss....   
Damaged1113,262Total casualties72130,191
Undamaged75,188   

Chapter 12. SECTION XII.—RAILWAYS.

INTRODUCTORY.

RAILWAY history in New Zealand dates from the year 1860. In that year a contract was let for the construction of a line from Christchurch to Lyttelton, and the first portion of this line was opened on the 1st December, 1863. A line from Invercargill to Bluff Harbour was opened on the 5th February, 1867. The Provincial Council of Auckland in 1863 began the construction of a line from Auckland to Drury.

Although nearly all the railways are State-owned, some were built by private enterprise. Of these the more important were constructed by the Midland and the Wellington-Manawatu Railway Companies.

In the year 1876 the railways of New Zealand passed from the control of the Provincial Governments to the Public Works Department. A few years later the opened lines were handed over to the Working Railways Department, and in 1889 a Board of three Railways Commissioners was appointed. This form of management, however, lasted for only five years, at the end of which period a General Manager, responsible to the Minister of Railways, took over the administration, and this system continued for close on thirty years. In 1925 the system of railway management was reorganized under the control of a Railways Board of three members, but in 1928 the system of control by a General Manager was again reverted to. Three years later legislation was passed constituting the Government Railways Board of five members. This form of management was in operation from 1st June, 1931, to 31st March, 1936, after which date the system of control by a General Manager, responsible to the Minister of Railways, was again introduced.

The development of automatic and electric-power signalling has been greatly extended since its introduction on the New Zealand Railways some years ago. At the present time automatic signalling controlling the safe running of trains is in use on 90 miles 26 chains of double line and 224 miles 78 chains of single line, with further extensions under construction. In addition to automatic signalling, power signalling for the operation of yards has largely superseded the older form of mechanical signalling.

The use of electric power on the New Zealand Railways is increasing to a great extent for many purposes, including pumping plants for the supply of water for engines outside stations, for driving electrical machinery in the shops, and for the lighting of stations, locomotives, and carriages. There are 21 railway substations, with a total capacity of 12,890 kVA. The Christchurch-Lyttelton section of railway, including the Lyttelton Tunnel, was electrified in 1928-29, the Otira-Arthur's Pass section, including the Otira Tunnel, in 1923, and the Wellington-Johnsonville section in July, 1938. Work in connection with the electrification of the Wellington-Paekakariki section (24 miles 60 chains) is in hand.

The Railways Department owns and operates its own telephone and telegraph communication system, and over all the main lines the running of the trains is controlled from the District Traffic Managers' offices by means of selective telephone equipment. For general communication, the use of automatic telephone exchanges, two- and three-channel carrier current telephony, and voice-frequency repeaters on the longest lines, give a high-grade service between all stations. Selective inter-calling equipment and teleprinters are in use, and communication equipment is being developed by the use of modern appliances.

MILEAGE OF STATE RAILWAYS.

At the 31st March, 1939, there were some 3,319 miles of State railways open for traffic, divided into seven distinct sections, as follows:—

Section.Length (Miles).Section.Length (Miles).
North Island main line and branches1,489South Island main line and branches1,594
Kaihu24Westport36
Gisborne56Nelson64
....Picton56
  Total, North Island1,569  Total, South Island1,750

Government railways are constructed by the Public Works Department, and are transferred to the Railways Department when completed.

The gauge is 3 ft. 6 in., and a steel rail 85 lb. weight per lineal yard has recently been adopted as the standard for the permanent-way. Twenty-three miles of this weight have been laid. The previous standard was a 70 lb. rail and this weight is in use on 1,845 miles of line. The remaining mileage is in 53 lb., 55 lb., 56 lb., and 100 lb. steel rails. Sleepers, which are laid down to the number of 2,500 to the mile, are principally of Australian hardwood and New Zealand silver-pine or totara.

COST OF CONSTRUCTION.

The capital cost of State railways as at the end of each of the last five financial years is given below.

31st March, 1935.31st March, 1936.31st March, 1937.31st March, 1938.31st March, 1939.
* For composition of subsidiary services, see later table in this section.
Open for traffic—£££££
  Railway52,352,98552,462,58752,905,96554,205,49656,413,304
  Lake Wakatipu steamer service17,64817,64517,64517,64519,466
  Subsidiary services*1,708,6611,762,9311,762,9311,832,1502,233,942
  General9,8969,8969,8969,8969,896
    Total54,089,19054,253,05954,696,43756,065,18758,676,608
Lines under construction5,387,95315,358,7755,963,3467,124,0738,399,300
    Grand total59,477,14359,611,83460,659,78363,189,26067,075,908

The increase during the year 1938-39 in capital invested in open lines was £2,611,421. The principal additions were: Improvements and additions to rolling-stock, £1,330,077; Wellington and Christchurch new stations yards, £105,810; duplications, deviations, and grade casements, £375,799; purchases of road services, &c., £273,553; Wellington-Paekakariki electrification, £39,476; additions to workshops, buildings, and plant, £182,977; balance being spent on improvements to station facilities, dwellings, signalling, level crossings, and miscellaneous, £303,729.

So varied are the geographical features of the Dominion that a great disparity exists in the cost of constructing the individual sections of lines. The numerous mountain-chains and the innumerable rivers make railway-construction in general both difficult and expensive, as the next statement shows.

Section.Capital Cost of Open Lines to 31st March, 1939.Capital Cost per Mile (Open Lines).Net Revenue.
Per Mile of Open Line.Per Cent. of Capital Cost.
1937-38.1938-39.1937-381938-39.
* Loss.
North Island —££££  
  Kaihu160,2406,677-152*-366***
  Gisborne767,45013,704-55*-47***
  Main line and branches35,087,48323,5642092390.951.01
    Totals, North Island36,015,17322,9541932190.890.96
South Island—      
  Westport357,9899,9444494174.534.19
  Nelson507,1407,924-175*-174***
  Picton588,95710,517-85*-135***
  Main line and branches18,944,04511,885-3*1*0.01
    Totals, South Island20,398,13111,656-2*-2***
    Totals, Railways56,413,30416,997901030.560.61
Lake Wakatipu steamer service19,466..........
Subsidiary services2,233,942..........
General9,896..........
    Grand totals58,676,60817,6791902111.151.19

ROLLING-STOCK.

Information as to the rolling-stock in use on the State railways in 1938-39 is given in the following table:—

Locomotives— 
Tender371
  Tank184
  Electric12
  Battery5
    Total572
Passenger-vehicles— 
  Sleepers13
  Combination day-sleepers18
  First-class230
  Second-class896
  Composite320
  Ladies'4
  Rail cars15
  Multiple units12
Postal11
Other8
Wagons— 
Horse-boxes260
Cattle690
Sheep2,721
Frozen and chilled meat981
Cool-storage891
Covered goods847
High-side15,701
High-side bogie399
Low-side1,641
Brake-vans473
Other3,797
Total28,401

All carriages and wagons required for use on the State railways have, since 1901, been constructed in the railway workshops of the Dominion, with the exception of 2,500 four-wheeled wagons imported from England in 1921-22. Locomotives also are built in the railway workshops of the Dominion.

The weights of the locally-built tender-engines in working trim vary from 63 to 135 tons, while those of the tank-engines range from 29½ to 72 tons.

The following engines of more recent construction deal with the bulk of the traffic:—

Class.Type.Traffic.Weight.Tractive Force.
   Tons.lb.
AB4-6-2 superheated; simple, with tenderMixed8520,000
A4-6-2 superheated and saturated; compound, with tenderMixed7817,000
K4-8-4 superheated; simple, with tenderMixed13530,815
X4-8-2 superheated and saturated; compound, with tenderGoods9426,620
WAB4-6-4 superheated; simple tank engineMixed7222,250
C2-6-2 superheated; simple, with tenderShunting6615,300

Standard carriages are 56 ft. in length, fitted with chair seats to accommodate twenty-nine to fifty-six passengers, steam-heated, and lighted by electricity. Some 692 carriages were equipped with electric light at 31st March, 1939. Locomotives to the number of 478 are fitted with electric head-lights. The Westing-house brake is fitted to all rolling-stock with the exception of that on the Kaihu, Picton, Nelson, and Westport Sections.

REVENUE AND EXPENDITURE.

The railways have contributed in a great measure towards bringing the Dominion to its present high state of productivity, have given practical assistance in the development of the country, and have encouraged local industry. For many years a profit of 3 per cent. was regarded as sufficient, and any excess over this rate was followed by reductions in passenger charges or in freights. Consequent on the extension of settlement and the soundness of the Dominion's industries, a rate of 3¾ per cent. was aimed at, commencing with the year 1909-10. During the next twelve years the actual return averaged 4.20 per cent. The year 1921-22 saw a severe depression throughout the country, the return of 1.07 per cent. for that year being the lowest in the history of the railways. For the three years 1922-23 to 1924-25 the return averaged 3.48 per cent.

In 1924 the Government decided upon a financial reorganization of the railways, and an entirely new system of accounts, based on commercial practice, was brought into operation on the 1st April, 1925.

The first and most important step in this direction was the establishment of a separate Working Railways Account into which all earnings are paid and from which all working-expenses, superannuation subsidies, and interest on capital up to the full amount of the net revenue are met. The interest on capital is based on the actual rates payable on the various loans.

The changed financial policy embodied the setting-up of Renewals, Betterments, and Equalization Funds, and also provided for payment of subsidies from the Consolidated Fund for losses on operation of certain developmental lines.

The return for the next four years was 4.35 per cent., 3.99 per cent., 3.64 per cent., and 3.45 per cent.; but in 1929-30 it fell to 1.61 per cent., due mainly to the discontinuance of the subsidy on developmental lines which had been paid by the Treasury since 1925. The economic depression which set in during 1930 caused the return for 1930-31 to fall to 1.16 per cent., but in the succeeding years it rose to 1.64 per cent. for 1931-32, 1.65 per cent. for 1932-33, and 2.05 per cent. for 1933-34, falling to 2.01 per cent. in 1934-35, 1.94 per cent. in 1935-36. 1.65 per cent. in 1936-37, 1.15 per cent. in 1937-38, and rising to 1.23 per cent. in 1938-39.

The total revenue from and expenditure on the railways during each of the last ten years were as follows:—

Year ended 31st March,Gross Revenue.Expenditure.Net Revenue.Percentage of Net Revenue to Capital Cost.
 ££££s.d.
19308,288,1167,358,859929,2571124
19317,571,5376,882,810688,727133
19326,508,9485,670,955837,9931128
19336,034,4035,183,859850,5441130
19346,332,7115,247,1531,085,558210
19356,627,9285,540,4371,087,491203
19367,004,3165,952,8391,051,47711810
19377,790,6516,886,793903,8581130
19388,634,1868,001,389632,797130
19399,345,3878,644,324701,063147

Interest on railway capital liability for 1938-39 amounted to £2,418,116, there thus being a deficit of £1,717,053 for the year, as compared with £1,703,011 for the preceding year. A sum of £905,846 was set aside for depreciation and renewals, and is included in the total of expenditure for the year.

The figures in the above table are inclusive of subsidiary services, which in recent years have increased considerably. In 1931-32 the capital was written down by £10,400,000, which has advantageously affected the return per cent. The revenue and expenditure for the last five years are now given, distinguishing between railway operating and other items:—

Year ended 31st March,Revenue.Expenditure.Net Operating Revenue.
Railway Operating.Subsidiary Services.Railway Operating.Subsidiary Services.
 £££££
19355,908,064719,8645,138,588401,849769,476
19366,243,519760,7975,523,193429,646720,326
19376,903,604887,0476,338,385548,408565,219
19387,591,8251,042,3617,291,785709,604300,040
19398,005,0591,340,3287,663,632980,692341,427

The various subsidiary services now conducted by the Railways Department, with the revenue and expenditure of each during the last two years, are given below. Full working-costs, including interest, are charged against these services, and the interest so charged is taken into miscellaneous receipts as revenue.

Service.Revenue.Expenditure.
1937-38.1938-39.1937-38.1938-39.
 ££££
Lake Wakatipu steamers7,6247,16811,14411,313
Refreshment service142,786167,710140,937163,189
Bookstall service76,71992,60473,23288,144
Advertising service37,39740,07132,62735,134
Departmental dwellings130,683133,945183,182187,193
Leases of bookstalls, &c.20,29223,88813,92915,645
Road services—Passengers, and goods276,527505,612254,553480,074
Miscellaneous receipts350,333369,330....
    Totals1,042,3611,340,328709,604980,692

REVENUE.

In the following table the railway operating revenue during the last ten years is classified according to the class of traffic, &c., from which it was derived.

Year ended 31st March,Passenger-fares.Parcels, Luggage, and Malls.Goods and Live-stock.Labour, Demurrage, &c.Totals.
 £££££
1,9301,995,927386,7924,904,324186,9507,473,993
1,9311,778,726359,2764,487,357156,0296,781,388
1,9321,339,589316,2454,019,600113,5315,788,065
1,9331,207,296283,8223,745,777102,1805,339,075
1,9341,336,334281,8893,911,24599,3675,628,835
1,9351,368,689292,0974,138,434108,8445,908,064
1,9361,466,617299,9644,359,750117,1886,243,519
1,9371,611,305305,5264,846,417140,3566,903,604
1,9381,698,021318,4575,411,297164,0507,591,825
1,9391,785,646334,1705,694,936190,3078,005,059

Revenue from the carriage of goods and live-stock had been steadily increasing up to 1929-30, but from then until 1932-33 successive declines were recorded, due mainly to the economic depression and to motor competition. The decrease during the three-year period amounted to £1,158,547 or 23-6 per cent. Since 1932-33, however, revenue from this source has improved to such an extent that the amount for 1938-39 was £790,612 (16.1 per cent.) above the 1929-30 figure. During the period 1926-33, there was a rapid falling-off in the amount of revenue from passenger traffic, mainly due in the earlier years to intensive motor competition and in the latter portion to the depression During the last six years, however, a definite upward trend has been shown, due to the improvement in economic conditions.

The revenue from passenger-fares during the year 1938-39 represented an expenditure on railway travel of £1 2s. 2d. per head of mean population, including Maoris. The total railway operating revenue was equal to £4 19s. 4d. per head.

A table is added showing information as to railway revenue in each of the Australian States for the year ended 30th June, 1938. Figures for New Zealand for the year ended 31st March, 1938, are also given.

State.Miles of Line open.Train-miles run (,000 omitted).Gross Revenue (,000 omitted).Net Revenue.
Amount (,000 omitted).Per Train-mile.Per Cent. of Capital.
* Loss.
   ££s.  d. 
Queensland6,56713,6487,3831,4962  23.99
New South Wales6,11330,20320,2866,5264  44.45
Victoria4,72117,9179,7351,9052  23.68
South Australia2,5576,1113,2854181  41.41
Western Australia4,3766,3723,6789683  03.75
Tasmania6511,933464212*....
Commonwealth Railways2,20175844369*....
Totals for Australia27,18676,94245,27411,0322  103.55
New Zealand3,32312,7788,6346331  01.15

The net revenue in the case of New Zealand is arrived at after making full provision for renewals and depreciation, and subsidies to the Superannuation Fund and Sick-benefit Fund.

EXPENDITURE.

The total railway expenditure in 1938-39 represented 92-60 per cent. of the gross earnings, and the operating-expenses 95.73 per cent. of operating revenue. It is of interest to trace the movement over a series of years, as in the following statement. The figures commencing with 1926 relate to operating revenue and expenditure, while those for previous years show the proportion of total expenditure to gross earnings.

Year ended 31st March,Per Cent.Year ended 31st March,Per Cent.Year ended 31st March,Per Cent.
1,91966.321,92681.231,93390.54
1,92071.371,92782.961,93486.65
1,92181.591,92885.811,93586.98
1,92293.891,92984.711,93688.46
1,92381.791,93091.621,93791.81
1,92477.371,93194.471,93896.05
1,92577.971,93291.561,93995.73

The operating expenditure under various heads is now given for each of the last ten years.

Year ended 31st March,Maintenance of Ways and Works.Maintenance of Signals.Maintenance of Rolling-stock.Locomotive Transportation.Traffic Transportation.Head Office; and General Charges.*Totals.
* Including superannuation subsidy.
 £££££££
1,9301,146,014117,5771,680,9191,755,2091,883,918264,3896,848,026
1,9311,150,329104,4641,502,6981,594,6721,798,490255,4906,406,143
1,932997,629107,5851,270,5851,254,7691,424,520246,5655,301,653
1,933931,273105,5861,188,4741,114,8011,255,280238,3404,833,754
1,934993,207110,2981,220,1021,064,8271,253,833234,8794,877,146
1,9351,047,825137,4771,236,3241,127,1601,360,928228,8745,138,588
1,9361,070,085147,4421,406,6851,201,6361,465,052232,2935,523,193
1,9371,171,963154,1081,565,0831,412,1771,797,058237,9966,338,385
1,9381,278,980178,8921,792,5621,703,1102,090,471247,7707,291,785
1,9391,375,829186,5461,832,6151,812,8572,208,310247,4757,663,632

PASSENGERS AND GOODS.

In addition to the traffic figures shown in the following table for 1938-39, 5,732,282 passengers were carried by the Railways Department's road services, and 16,077 passengers and 6,451 tons of goods on the Lake Wakatipu steamer service. Passenger train-miles run during the year totalled 5,551,026 and the passenger revenue received represents 77.20d. per train-mile and £540 per mile of line operated.

Year ended 31st March,Length open (Miles).Train-mileage.Passengers.Season Tickets Issued.Goods and Live-stock.*
Including Season-ticket Holders.Excluding Season-ticket Holders.
* Live-stock converted to equivalent tonnage.
      Tons.
19303,28712,022,04325,380,1148,466,779667,4197,788,973
19313,32211,281,89822,783,0567,265,912600,4316,957,709
19323,31510,168,72019,151,4806,503,566459,0635,824,811
19333,3159,828,85318,366,6546,870,570437,7755,490,686
19343,32010,163,47419,047,1867,511,346442,7425,642,199
19353,32010,626,40019,654,4677,809,035457,5466,023,960
19363,32011,050,37620,358,5247,963,824482,1466,188,805
19373,32011,868,08321,235,4288,284,956513,0636,813,240
19383,32312,777,85222,441,2128,069,018750,4977,516,049
19393,31913,072,61523,265,7687,813,436888,8447,539,012

Live-stock carried in 1938-39 comprised 539,224 cattle, 626,336 calves, 9,442,200 sheep, and 660,145 pigs, equivalent to a tonnage of 621,755.

Detailed figures showing the number of rail passengers carried during the last five years are given in the following table:—

1934-35.1935-36.1936-37.1937-38.1938-39.
Ordinary and holiday excursion3,280,3703,285,1973,480,6553,431,1683,429,365
Suburban2,221,4202,298,0212,360,9621,933,5351,758,576
Other reduced fares2,307,2452,380,6062,443,3392,704,3152,625,495
Totals7,809,0357,963,8248,284,9568,069,0187,813,436
Season tickets issued—     
Suburban twelve-trip......245,342291,715
Workers' weekly226,877243,120257,84393,05374,132
Weekly twelve-trip103,981109,418110,84469,39158,512
Bearer twelve-trip73,04772,60772,92062,96956,649
Bearer six-trip....10,673208,019326,289
School25,56826,14825,69325,31825,078
Tourist373368288327251
Travellers' annual376359344312289
Other27,32430,12634,45845,76655,929
Totals457,546482,146513,063750,487888,844

The following table gives interesting information as to the constitution of the goods traffic for the last five years. The figures are exclusive of steamer traffic on Lake Wakatipu:—

Commodity.1934-35.1935-36.1936-37.1937-38.1938-39.
 Tons.Tons.Tons.Tons.Tons.
Grain304,936185,754265,610238,196185,203
Grain products118,666113,992118,494116,465114,595
Fruit, New Zealand47,99736,97843,23150,80856,737
Root crops, fodder111,718114,614128,612145,839137,500
Flax, hemp, and tow10,69510,31512,27512,6796,249
Seeds21,76716,27520,03321,19416,346
Cattle and horses136,490171,576180,142216,666211,058
Sheep and pigs442,493398,752420,191451,409410,695
Meat238,404227,993227,453250,242262,954
Butter131,590146,765155,161155,822138,845
Cheese78,39771,09575,00774,31071,794
Wool126,682162,045158,743159,442172,197
Dairy by-products20,78425,30825,13825,71820,220
Fat, hides, skins44,79237,03547,03943,26045,300
Fish7,8588,4349,97410,12710,171
Agricultural lime244,896246,716295,055376,741379,504
Coal, imported30,53132,67626,08930,57436,055
Coal, New Zealand hard654,170652,637766,209822,135830,683
Coal, New Zealand brown756,123802,541840,018833,933897,602
Road-metal128,540132,096109,963129,056169,938
Lime and coke28,20228,22532,87338,61240,936
Timber, imported13,01713,47618,17120,52025,458
Timber, New Zealand355,400407,323434,204469,687476,187
Firewood, posts, &c.81,34972,54378,73689,00976,565
Benzine, kerosene, &c.119,739131,510154,061174,860188,492
Cement44,91649,79958,98968,38687,044
Manures626,717663,185746,492991,119874,679
Miscellaneous1,097,0911,229,1471,365,2771,499,2401,596,005
Totals6,023,9606,188,8056,813,2407,516,0497,539,012

A table showing for the various commodities the tonnage carried, ton-miles, average haul, revenue, and revenue per ton-mile during 1938-39 is now given:—

Commodity.Tonnage carried.Per Cent. of Total.Tons One Mile (,000 omitted).Average HaulRevenue.Revenue per Ton-mile.
    Miles£d.
Grain185,2032.4410,62657100,5592.27
Grain products114,5951.527,3156469,8412.29
Fruit, New Zealand56,7370.7511,72820793,7511.92
Root crops, fodder137,5001.8210,5947787,0241.97
Flax, hemp, and tow6,2490.08521835,8452.69
Seeds16,3460.221,2127414,1492.80
Cattle and horses211,0582.8018,50988236,6623.07
Sheep and pigs410,6955.4431,82177441,4793.33
Meat202,9543.489,50136239,3326.05
Butter138,8451.8410,13473155,9303.69
Cheese71,7940.953,6845169,3314.52
Wool172,1372.289,66056178,7994.44
Dairy by-products20,2200.271,7248520,8912.91
Fat, hides, skins45,3000.602,1884847,4495.20
Fish10,1710.131,90118716,8282.11
Agricultural lime379,5045.0423,03361132,5181.38
Coal, imported36,0550.481,7604918,7052.56
Coal, New Zealand hard830,68311.0236,88644277,0981.80
Coal, New Zealand brown897,60211.90108,183121593,6341.32
Road-metal169,9382.265,8163448,3742.00
Lime and coke40,9360.543,3288124,5561.77
Timber, imported25,4580.341,9937830,6883.70
Timber, New Zealand476,1876.3257,618121475,1291.98
Firewood, posts, &c.76,5651.026,9789139,0761.34
Benzine, gasoline, kerosene188,4922.5017,40192311,4964.30
Cement87,0441.1610,32411994,4852.20
Manures874,67911.6265,35675475,0901.74
Miscellaneous1,596,00521.18104,691661,495,9633.43
Totals7,539,012100.00574,485765,794,6882.43

The total number of freight train-miles run during the year 1938-39 in carrying the above tonnage was 7,521,589. The revenue received represents averages of 15s. 5d. per train-mile, 15s. 4d. per ton, and 2.43d. per ton-mile.

RAILWAY EMPLOYEES.

The average number of persons employed by the State railways throughout the year ended 31st March, 1939, was 24,342. The staff is divided into two divisions—namely, the first or clerical division, and the second or out-of-door division—and is further classed in four branches, as shown in the following table:—

Average, Year ending 31st March,General.Traffic.Maintenance.Locomotive.Total.
19351,4604,7723,5656,25116,048
19361,4884,8883,7886,90917,073
19371,8235,5534,0737,66619,115
19382,2606,3084,4268,96021,954
19392,5856,7824,81710,15824,342

A system of classification, first introduced in 1896, and revised at various times since, applies to Railway employees. An Appeal Board is constituted to hear grievances of members dissatisfied with decisions respecting promotion, loss of status, or breaches of discipline. The Board consists of a Magistrate and two members of the Railways service, one appointed by the Minister of Railways, and the other elected by the members of the Department. A superannuation fund in connection with the Railways service was established in 1903. Information concerning this is given in the section dealing with “ Pensions, Social Security, Superannuation, &c.” A sick-benefit fund, providing for the payment of weekly allowances for periods up to seventy-eight weeks to employees other than salaried staff who are incapacitated by sickness, was instituted in 1929. The fund is subsidized by the Department at the rate of £8,000 per annum. Reserve funds amounting to £45,696 had been built up at 31st March, 1939.

RAILWAY ACCIDENTS.

With the exception of the Ongarue accident in 1923 (when seventeen passengers were killed and twenty-nine more or less severely injured, through a falling boulder derailing the engine), the history of railways in New Zealand has been one of comparative freedom from accidents of a serious nature. A table is given dealing with railway accidents during each of the last five years.

Year ended 31st March,To Passengers.To Employees.To Others.Fatal.Other.Total.
1935211,34662281,4011,429
1936251,54047251,5871,612
1937591,85981471,9521,999
1938962,211129502,3862,436
1939502,776143482,9212,969

Of the 48 persons meeting with fatal accidents in 1939, 6 were passengers, 15 were employees, and, of the remainder, who were neither passengers nor employees, 19 were killed at railway-crossings, 7 in accidents on the line, and 1 in shunting operations.

Included in the total accidents (2,969) were 28 train accidents, 54 accidents on line, 137 shunting accidents, 4 accidents to employees proceeding to or from duty within railway boundary, 90 railway-crossing accidents, and 860 accidents in railway workshops, while miscellaneous accidents totalled 1,796—mainly minor injuries to employees.

PRIVATE RAILWAYS.

Private railways in New Zealand are mainly restricted to lines whose chief object is to serve collieries or sawmills. The following list has been compiled from inquiries made in 1937, and is possibly not free from minor inaccuracies or omissions. The list refers to private railways open for transport of passengers or goods, and does not cover the numerous railways (mostly serving sawmills and coal-mines) used solely for the transport of goods belonging to the owners of the line. The length of main lines is 181 miles 5 chains, brought up to a total of 198 miles 3 chains by the inclusion of brandies, sidings, &c., where such information is available.

Principal use.Owner.Location.Length of Railway.*

* Including main line, branches, sidings and jig line.

† Sidings additional, but not available.

   M.c
CoalWilton Collieries, Ltd.Ngaruawahia - Glen Massey Wilton Coal-mine675
Timber and goodsBartholomew Timber Co., Ltd.Te Whetu - Bartholomew's Siding940
OresWaihi Gold-mining Co., Ltd.Waihi-Waikino740
TimberWellington Industrial Development Co., Ltd. (operated by Taupo Totara Timber Co., Ltd.)Putaruru-Tokoroa-Mokai504
....Tatua-Taori-Tutukau815
Stock and mixed goodsGisborne Harbour BoardGisborne (Turanganui)060
Mixed goodsNapier Harbour BoardNapier - Port Ahuriri36
TimberEllis and Burnand, Ltd.Mangapehi - Pukemako Bush2240
Coal and mixed goodsCastlecliff Railway Co., Ltd.Wanganui (Castlecliff)775
Road metalManawatu County CouncilHimitangi-Pukenui180
CoalPuponga Coal-mine, Ltd.Puponga175
CoalWestport Coal Co., Ltd.Waimangaroa Jn. - Conn's Creek430
CoalBurke's Creek Collieries, Ltd.Reefton - Burke's Creek220
CoalPaparoa Coal Co., Ltd.Blackball-Paparoa160
TimberStuart and Chapman, Ltd.Ross - Duffer's Creek150
Coal, lime, and sandAshburton County Council (operated by Blackburn Coal Co., Ltd.)Mount Somers860
..Dunedin City CouncilDunedin (Ocean Beach)133
CoalKaitangata Coal Co., Ltd.Kaitangata-Stirling40
Coal and goodsSargood and CheesemanLovell's Flat - Taratu Colliery80
Coal, passengers, and goodsOhai Railway BoardWairio-Birchwood1610
Total mileage....1933

Chapter 13. SECTION XIII.—TRAMWAYS.

SYSTEMS AND OWNERSHIP.

SUBJECT to two exceptions, electric-tramway services in New Zealand have been controlled since their inception by local authorities, the exceptions being, (1) Auckland, where a public company carried on from 1902 until 1st July, 1919, when the system was taken over by the Auckland City Council; and (2) Dunedin, where a section of the system was until 1921 operated by a private company. Five of the seven electric-tramway systems operating at the present time are controlled by the council of the city or borough concerned. At Christchurch the Christchurch Tramway Board is the controlling body, while at Auckland the City Council has handed over the tramways to the Auckland Transport Board.

The local authorities derive their powers for controlling tramways from the Tramways Act, 1908. There are also special Acts empowering the construction, &c., of tramways in certain places.

System.Year of Inauguration.Length of Track as at 31st March, 1939.Approximate Population in Area served, April, 1939.
Thoroughfare.Single Line (including Loops).
  M.ch.M.ch. 
Auckland1,90244608740180,000
New Plymouth1,91662473017,000
Wanganui1,9081424166424,000
Wellington1,90431445153120,000
Christchurch1,9054622659115,000
Dunedin1,9031652287673,000
Invercargill1,91274094024,000

In addition to the tramway systems shown above, there were formerly tramways in Gisborne and Napier, both of which wore closed down, the former in 1929, and the latter after the earthquake of 3rd February, 1931, while the Maori Hill electric tramway (part of the Dunedin system) ceased operating on 1st July, 1936, being replaced by Diesel-engined buses. The last-mentioned length of tramway was the first electric tramway constructed in New Zealand, having been opened for traffic on 23rd October, 1900.

Passenger rolling-stock at 31st March, 1939, comprised 745 cars with a capacity of 31,980 passengers; including 11 trackless trams, capacity 418 passengers. The total route mileage was 167 miles, and track mileage (including loops) 267 miles. In addition to the passenger rolling-stock there were 3 water-sprinklers and 2 freight cars.

REVIEW OF TRAMWAY OPERATIONS.

Summarized statistics of tramway operations during the last ten years are given in the following table:—

Year ended 31st March,Number of Undertakings.Number of Employees.Passenger Car-miles run.Passengers carried.Number of Passengers per Car-mile.
193082,93616,298,984154,811,2629.50
193182,91516,459,615146,804,9708.92
193272,72315,692,505131,654,2868.39
193372,57815,335,351121,272,9517.91
193472,56515,343,078119,789,3847.81
193572,58315,540,601125,669,5028.09
193672,62115,679,576131,651,3958.40
193773,02215,725,869136,162,1568.66
193873,00415,866,280141,901,8918.94
193973,07315,921,656144,262,3369.06

Tramway traffic has been adversely affected by the competition of motor-omnibuses, taxi-cabs, and private motor-vehicles. In 1926 partial relief came in the Motor-omnibus Traffic Act of that year, which prohibited the competition of buses with trams, except where the fare charged per section by buses is 2d. more than the tram-fare. The general trend in the number of passengers carried was definitely downward prior to the depression. The figures for the last five years, however, show successive annual increases.

The volume of traffic handled during the year ended 31st March, 1939, was substantially greater than was the case in the previous year, an increase of 2,360,000 passengers being recorded. As evidence of the service given by the tramways to the community, it is interesting to note that, based on a five-day week, on the average every person within the area served by electric tramways takes one tram trip each day.

The financial operations of the tramways are summarized in the following table:—

Year ended 31st March,Revenue.Expenditure.Percentage of Expenditure to Revenue.Capital Outlay.Accrued Funds.
Sinking Funds.Depreciation and Renewal Funds.Accident Funds.
 ££ ££££
19301,549,0021,499,74096.175,297,2231,126,850886,913109,033
19311,530,0101,506,15198.445,596,2601,231,0841,037,977113,603
19321,331,1731,379,596103.645,592,3371,306,9121,042,310112,313
19331,232,1901,281,567104.015,480,3021,410,7621,039,814108,659
19341,204,7481,242,630103.145,488,4401,636,725842,966108,945
19351,221,2311,245,954102.025,508,7311,371,341809,029110,998
19361,257,5051,306,256103.885,528,0221,407,558842,865112,545
19371,342,4941,400,597104.335,524,6901,451,637829,157114,894
19381,455,5991,478,686101.595,640,3571,506,678889,338117,411
19391,484,4201,528,143102.955,689,3771,559,672914,115114,339

Figures showing details of the total expenditure during each of the last five years are given in the next table:—

Year ended 31st March,Operating Expenditure.Capital Charges.Other Expenses.Totals.
 £Per Cent.£Per Cent.£Per Cent.£Per Cent.
1935859,56068.99351,40028.2034,9942.811,245,954100.00
1936920,05370.43358,40727.4427,7962.131,306,256100.00
19371,005,78771.81360,79725.7634,0132.431,400,597100.00
19381,080,09673.05353,72523.9244,8653.031,478,686100.00
19391,121,06573.36369,44124.1837,6372.461,528,143100.00

An analysis of the capital outlay of tramway undertakings follows, figures for each of the last five years being given:—

As at 31st March,Permanent-way.Electric Equipment of Lines.Cars and other Vehicles.Land.Buildings.Miscellaneous and Undefined.Totals.
Absolute Figures.
 £££££££
19352,311,023539,1771,439,082157,039604,469457,9415,508,731
19302,319,612539,6301,443,608155,828604,540464,8045,528,022
19372,319,112539,5451,440,697154,951605,229465,1565,524,690
19382,335,248540,8491,468,997162,780607,609524,8745,640,357
19392,354,983541,3071,493,671150,419610,055538,9425,689,377
Proportion of Total.
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
193541.959.7926.122.8510.978.32100.00
193641.969.7626.112.8210.948.41100.00
193741.989.7726.082.8010.958.42100.00
193841.409.5926.042.8910.779.31100.00
193941.399.5226.252.6510.729.47100.00

A more detailed analysis of tramway statistics for 1938-39 is given in the succeeding paragraphs.

VOLUME OF TRAFFIC.

The number of passengers carried per car-mile is a useful guide to the relative volume of traffic handled by the various undertakings. As a highly relevant factor the length of track should be kept in mind.

System.Total Passengers carried.Car-miles run (Passenger Cars and Trailers).Passengers per Car-mile.*Average Fare per Passenger.
* Passenger vehicles.
    d.
Auckland58,782,3306,274,7469.372.61
New Plymouth2,049,920283,1127.242.04
Wanganui1,733,337399,7934.342.92
Wellington44,010,6094,205,90410.462.31
Christchurch18,121,7922,794,1236.492.63
Dunedin17,067,0531,585,80410.761.95
Invercargill2,497,295378,1746.601.92
    Totals144,262,33615,921,6569.062.43

FINANCIAL TRANSACTIONS.

The Auckland and Wellington services provided 73 per cent. of the total traffic revenue for 1938-39, the former returning £641,057, or 44 per cent., of the total, against £424,874, or 29 per cent., in the case of Wellington. Christchurch and Dunedin fall a long way below Auckland and Wellington in traffic revenue.

Following is an analysis of revenue in each centre in 1938-39:—

System.Traffic (Passengers and Freight).Traffic Revenue per Car-mile.*Other.Totals.
Cash.Concession.
* All vehicles.
 ££d.££
Auckland641,057..24.505,960647,017
New Plymouth8,3309,06614.7592118,317
Wanganui17,9763,24812.741,19822,422
Wellington186,541238,33324.245,627430,501
Christchurch109,15290,74517.175,043204,940
Dunedin76,17162,37020.971,812140,353
Invercargill4,98115,04112.7184820,870
Totals1,044,208418,80322.0521,4091,484,420

On the expenditure side it is informative, in view of the competition from other means of transport, to note that the total expenditure—covering operating-expenses, capital charges, and other expenditure—was £43,723 above the total revenue for the year. Only the Auckland and Wellington tramways undertakings recorded an excess of revenue over expenditure. Of the total expenditure, operating-costs (£1,121,065) comprise 73 per cent., capital charges 24 per cent., and other expenses 3 per cent. An analysis of the total expenditure incurred in respect of each service in 1938-39 is shown below:—

System.Operating Expenditure.Capital Charges.Other Expenses.Totals.
 ££££
Auckland476,309161,6317,253645,193
New Plymouth16,9356,18946323,587
Wanganui21,17615,78095437,910
Wellington332,44271,39519,448423,285
Christchurch147,12771,5377,586226,250
Dunedin107,04236,3571,871145,270
Invercargill20,0346,5526226,648
    Totals1,121,065369,44137,6371,528,143

The principal item comprised in the total operating expenditure in 1938-39 is expenses on account of traffic, which represented 62 per cent. Car-maintenance follows traffic expenses in order of magnitude, accounting for 13 per cent. Cost of power was 10 per cent. of the total, and track-maintenance approximately 9 per cent. Management and office expenses accounted for the remaining 6 per cent. The distribution of operating expenditure in 1938-39 was as follows:—

System.Power.Traffic.Car-maintenance.Track-maintenance (including Electrical Equipment).Management and Office Expenses.Totals.
 ££££££
Auckland50,242287,63762,81246,81028,808476,309
New Plymouth1,8008,3844,2471,2651,23916,935
Wanganui2,6469,5293,8193,7931,38921,176
Wellington29,291219,18445,17725,56512,925332,442
Christchurch16,30890,84120,43811,5018,039147,127
Dunedin9,04871,7788,6246,24311,349107,042
Invercargill2,0919,6624,2193,0531,00920,034
  Totals111,426697,315149,33698,23064,7581,121,065

Annual capital charges in the way of provision for interest and sinking fund and depreciation, reserve, and renewal funds comprised 24 per cent. of the total expenditure during the year ended 31st March, 1939. The magnitude of these charges is not surprising, having regard to the relatively large capital outlay that is necessary in tramway undertakings. Of the total provision for capital charges for the year ended 31st March, 1939, 58 per cent. consisted of interest charges and 19 per cent. of sinking fund charges. As the Wanganui tramways are unable to meet capital charges out of revenue, the City Council levies a special rate each year for that purpose. The amounts expended in various capital charges by each system in 1938-39 were:—

System.Interest.Sinking Fund Charges.Depreciation Fund Charges.Renewal Fund Charges.Reserve Fund Charges.Accident Fund Charges.Totals.
 £££££££
Auckland123,19027,475....10,966..161,631
New Plymouth3,0691,9661,154......6,189
Wanganui8,2527,315......21315,780
Wellington30,52610,643....25,1565,07071,395
Christchurch32,23915,094..22,850..1,35471,537
Dunedin14,6106,736..15,011....36,357
Invercargill3,1231,4821,947......6,552
  Totals215,00970,7113,10137,86136,1226,637369,441

The following table showing the relationship between revenue and expenditure per car-mile run gives a useful indication of the relative prosperity of the various undertakings:—

System.Per Car-mile* run, 1938-39.
Total Revenue.Operating- costs.Capital Charges.Other Expenditure.Total Expenditure.

* All vehicles.

† Obtained by dividing the total figure under each heading for all systems by the total number of car-miles.

 d.d.d.d.d.
Auckland24.7318.206.180.2824.66
New Plymouth15.5314.365.250.3920.00
Wanganui13.4612.719.470.5722.75
Wellington24.5718.974.071.1124.15
Christchurch17.6012.646.140.6519.43
Dunedin21.2416.205.500.2821.98
Invercargill13.2412.714.160.0416.91
All systems22.3716.895.570.5723.03

CAPITAL OUTLAY.

At the 31st March, 1939, existing electric tramways represented a capital outlay of £5,689,377.

System.Permanent-way.Electric Equipment of Lilies.Cars and other Vehicles.Land.Buildings.Miscellaneous and undefined.Totals.
 £££££££
Auckland1,075,300221,500547,05119,977181,25968,9092,113,996
New Plymouth63,4349,15823,8658557,4601,656106,428
Wanganui45,55012,32020,710..4,9508,62492,154
Wellington465,462133,303444,94660,466199,894186,9711,491,042
Christchurch455,243115,431314,15339,279158,409263,0731,345,588
Dunedin205,54041,807103,33729,69050,1778,133438,684
Invercargill44,4547,78839,6091527,9061,576101,485
  Totals2,354,983541,3071,493,671150,419610,055538,9425,689,377

It would perhaps be more informative if these figures could be expressed in terms of capital value. Though attempts have been made to obtain data as to the amount of depreciation written off tramway plant, it has not been possible to elicit the required information from all tramway undertakings.

Closely allied to the capital expenditure is the question of accrued funds. At the 31st March, 1939, these totalled £2,588,126. Seventy-nine, thirty-one, and seventy-four per cent. of sinking funds, depreciation and reserve funds, and accident funds, respectively, are invested in securities outside the tramway undertakings.

Figures of accrued funds as at 31st March, 1939, are as follows:—

System.Sinking Funds.Depreciation and Reserve Funds.Accident Funds.Totals.
 ££££
Auckland948,881125,1333,0951,077,109
New Plymouth15,949..15,949..
Wanganui30,484....30,484
Wellington434,004558,38859,7481,052,140
Christchurch113,17936820,658134,205
Dunedin20,310135,41430,838186,562
Invercargill12,81478,863..91,677
    Totals1,559,672914,115114,3392,588,126

POWER CONSUMPTION.

With the exception of Christchurch, which generated only 22,740 units during 1938-39, the whole of the power used by tramway authorities is drawn from the Government hydro-electric grid systems, or, as in the cases of New Plymouth and Dunedin, from municipally - owned hydro - stations linked to these grids. As a consequence, the cost per unit of the energy used is comparatively low. In using the per-unit cost figures in the next table it should be borne in mind that in the case of Christchurch the power purchased is A.C. and is converted by the tramway authority to D.C. power for tramway operation, while the other authorities purchase D.C. power. If the operating, maintenance, and capital charges of the Christchurch tramways conversion plant were added to the cost of power purchased, the per-unit cost of the energy used would probably approximate that of the other chief centres. It should be noted, however, that the figures given in the first column of the table represent in every case the units of D.C. energy used in tramway operation.

Figures for the financial year ended 31st March, 1939, are:—

System.Total Units of Electrical Energy used.Cost per Unit purchased.Units per Car-mile.*Passengers per Car-mile.

* All vehicles.

† Passenger vehicles.

  d.  
Auckland20,125,7050.603.209.37
New Plymouth666,3000.652.357.24
Wanganui1,031,3430.612.584.34
Wellington10,904,6680.642.5910.46
Christchurch7,832,2240.452.806.49
Dunedin3,447,2640.632.1710.76
Invercargill554,3000.911.476.60
Totals44,561,8040.592.809.06

OMNIBUS SERVICES OPERATED BY TRAMWAY AUTHORITIES.

Omnibus services were carried on by tramway authorities in the following centres in 1938-39: New Plymouth, Wanganui, Wellington, Christchurch, and Dunedin. Statistics for the year 1938-39 show that expenditure exceeded revenue by £11,489. All the undertakings reported an excess of expenditure over revenue, with Wellington recording the greatest deficit, £5,847. Persons employed during 1938-39 totalled 111, made up as follows: Traffic, management, and office staff, 81; garage, 30. The number of vehicles in use was 76.

Passengers carried in 1938-39 increased by 303,000 as compared with the number carried in 1937-38, while bus-miles run advanced by 139,105. Passengers carried by the various bus services were: Christchurch, 1,895,436; Dunedin, 1,775,515; Wellington, 1,513,259; New Plymouth, 420,613; and Wanganui. 130,231.

Year ended 31st March,
1935.1936.1937.1938.1939.
Undertakings No.55555
Employees No.586488104111
Salaries and wages £15,73018,25826,02130,73537,023
Capital cost of vehicles £80,85385,820122,771126,889161,752
Depreciation £63,25662,38568,92464,36074,405
Total expenditure £41,71547,16061,50780,85591,145
Revenue £36,56941,46252,84071,74079,656
Passengers carried No.2,726,0263,032,2533,819,4445,432,2555,735,054
Bus-miles No.684,501772,897943,6201,224,4701,363,575
Average fare per passenger d.3.223.283.303.163.32
Passengers per bus-mile No.3.983.924.054.444.21

CABLE TRAMWAYS.

There are four cable-tramway systems in the Dominion, one in Wellington and three in Dunedin. The systems, all of which operate on a 3 ft. 6 in. gauge, extend over routes totalling 5 miles 43 chains. The total revenue in 1938-39 amounted to £56,374, while expenditure totalled £53,548. The total revenue derived from traffic during the year was £55,682, showing an average of 226d. per passenger carried. The total capital value stood at £146,904 at 31st March, 1939.

Year ended 31st March,
1935.1936.1937.1938.1939.
Undertakings No.44444
Employees No.7574808279
Salaries and wages £17,09916,89218,73220,15320,483
Capital value £140,856141,692146,698146,904146,904
Expenditure—     
Operating-expenses £31,62732,33834,81641,48543,035
Capital charges £7,7928,9098,76210,52210,513
Total £39,41941,24743,57852,00753,548
Revenue £45,23346,45146,69253,70656,374
Passengers carried No.5,910,6456,079,3986,001,6516,080,7165,921,738
Car-miles run (including trailer miles) No.386,643388,665384,901376,245368,709
Passengers per car-mile No.1516161616

Chapter 14. SECTION XIV.—ROADS AND ROAD TRANSPORT.

ROADS AND BRIDGES.

THE total mileage of formed roads in the Dominion at the 31st March, 1938, was 52,627¾, in addition to which there were 5,710¾ miles of bridle-tracks and 17,215¾ miles of unformed legal roads. Details are given in the following table:—

Counties.Boroughs.Town Districts.Road Districts.Totals.
* Includes 82½ miles unspecified.
Roads and streets formed to not less than dray-width and paved or surfaced with—Miles.Miles.Miles.Miles.Miles.
  Bituminous or cement concrete145¾245¾13½411¾
  Bitumen or tar2,329½1,422½83½173,852½
  Metal or gravel34,8681,728371¼816¼*37,783½
Roads and streets formed to not less than dray-width, but not paved or surfaced10,1861857013910,580
    Totals, formed roads47,529¼3,5814¼531½985¾52,627¾
Bridle-tracks5,58035¼90¾5,710¾
Unformed legal roads16,588½352¼64¼210¾17,215¾
    Totals, all roads69,697¾3,968¾600½1,287¼75,554¼

The formation of roads in many parts of the Dominion has been attended with considerable expense and difficulties, arising from the configuration of the country and the abundance of rivers. As illustrating the latter aspect, the following table, showing the number and lengths of bridges incorporated in the roads system of the Dominion as at 31st March, 1938, is of interest. Only bridges 25 ft. or over in length have been token into account, no official enumeration having been made of the innumerable culverts and short bridges.

Material of which Bridge constructed.Counties.Boroughs.Town Districts.Road Districts.Totals.
No.Total Length.No.Total Length.No.Total Length.No.Total Length.No.Total Length.
  Ft. Ft. Ft. Ft. Ft.
All concrete or stone68757,069467,6979583411374665,462
Steel and concrete44843,250477,0254415....49950,690
Steel, concrete, and timber30935,258201,622....13133036,911
Steel and timber59044,882244,397281....61649,360
Australian hardwood1,989204,633809,13182,165113502,089216,279
Native timbers2,322158,829543,9361976542192,399163,749
Totals6,345543,92127133,808434,009207136,679582,451

ROADS ADMINISTRATION.

The control of roads and bridges in New Zealand comes under the administration of the Minister of Public Works, the main statutes covering roads administration being the Public Works Act, 1928, and the Counties Act, 1920, and amendments. The Main Highways Act receives specific mention later.

Roads which have been declared to be Government roads are under the immediate jurisdiction of the Minister of Public Works. Urban roads and streets are controlled by city, borough, or town district authorities, and rural reading is controlled by County Councils and Road Boards.

Apart from Government roads, which are maintained by the State, roads and streets are maintained by the respective local authorities out of their own revenue resources. The Government does not assist in financing general road maintenance except in regard to roads which, as is explained under the next heading, have been gazetted as main highways under the Main Highways Act, 1922. In the case of extraordinary maintenance arising from storms or Hoods, the Minister may give special assistance to rural local authorities by way of subsidy or grant from the Consolidated Fund according to the severity of the damage and the financial position of the authority concerned.

The Government provides a considerable amount each year towards the construction of roads and bridges in counties and road districts, particularly in areas where better roading facilities are required in the interests of settlement and primary production. The sums granted by the State for this purpose may be by way of free grant or, more generally, by way of subsidy on a £1 for £1 or £2 for £1 basis. In many instances construction is carried out by the Public Works Department, although frequently the respective local authorities arrange for work to be undertaken. In the latter case the standard of construction, &c., must first be approved, and departmental supervision exercised, before the grant or subsidy can be uplifted. Capital expenditure by the Government on the construction of roads and bridges is met from the Public Works Fund.

Wherever possible, County Councils arrange to finance their roading operations from revenue, but as a general rule the construction of roads and bridges necessitates the raising of loans. The borrowing of moneys by local authorities is subject to review by a Board, constituted under the Local Government Loans Board Act, 1926, which investigates the economic and developmental aspects of all loan proposals formulated by local authorities.

From the inauguration of the public-works administration in 1870 until 31st March, 1939, the sum of £26,317,197 has been expended out of the Public Works Fund on the construction of roads and bridges throughout the Dominion.

MAIN HIGHWAYS.

Prior to the advent of the motor-vehicle only a small proportion of the total road-mileage outside of boroughs was permanently surfaced. The development of motor-traffic, however, entirely changed the completion of the roading problem in New Zealand, as elsewhere, and better roads were demanded as motor transport became popular. Later on, with the rapid increase in the use of motor-vehicles, particularly heavy ones, it became very evident that the type of road that was suitable for slow-moving horse-drawn traffic was inadequate. It was found that under the strain of motor traffic the roads, particularly those running parallel with railways, were deteriorating, while the necessity for changes in both construction and administration became more and more obvious. To meet the situation the Main Highways Act was passed in 1922, under which provision was made for the declaration of roads as main highways, and thus the control of arterial roads became primarily a national concern.

For the administration of the Act the Alain Highways Board was constituted. The Board consists of six members—viz., two members appointed by the Government, an officer of the Public Works Department, two representatives of County Councils, and one representative of owners of motor-vehicles. The Board administers the main highways system, but in most cases delegates its powers of maintenance, control, &c., to the local authority concerned, though at the same time exercising supervision over the standard of work. At the 31st March, 1939, the length of main highways totalled 12,206 miles.

One of the most important amendments to the Act of 1922 was passed in 1936, by which the Board may, with the approval of the Minister of Public Works, classify any main highway as a “State highway” so that the whole cost of maintenance and construction of such a highway (with certain exceptions) is met from the Main Highways Account. Of the 12,206 miles of main highways, 3,976 miles, comprising the principal arterial traffic routes, have been classified as State highways.

HIGHWAY DISTRICTS.

In terms of the Act the Board has divided the Dominion into eighteen highway districts, composed of counties grouped according to geographic situation and community of interest. For each highway district there is an advisory body, known as the District Highway's Council, which is constituted to include an Engineer of the Public Works Department and one representative of each constituent county. The principal functions of these councils are to make recommendations to the Board each year as to which roads within the several districts should be declared main highways and the works which should be undertaken.

FINANCE.

Under the original Act there were two separate funds within the Main Highways Account—viz., the Revenue Fund and the Construction Fund, but since the 1st April, 1936, these funds have been amalgamated into the Main Highways Account.

Revenue for main highways purposes is obtained from the following sources of motor taxation:—

Tire-tax (sections 13 and 14, Main Highway's Act, 1922).

Motor-spirits tax (section 9 of the Motor-spirits Taxation Act, 1927).

Motor-registration licenses, fees, &c. (section 24, Motor-vehicles Act, 1924).

Mileage-tax (section 19, Finance Act (No. 2), 1931-32).

As from August, 1939, the petrol-tax was increased from 10d. to 1s. 2d. per gallon for British imports, of which 8d. is ordinary Customs revenue, and from 10½d. to 1s. 2 7/12d. for foreign imports, of which 8 7/10d. is ordinary Customs revenue. Ninety-two per cent. of the revenue from the remaining 6d. per gallon is credited to the Main Highways Account, and the other 8 per cent. is distributed on a population basis between cities and boroughs having a population of 6,000 or more, for expenditure on streets forming continuations of main highways. For the year ended 31st March, 1939, the amount distributed between these cities and boroughs was £181,155. For those vehicles whose motive-power is not wholly derived from motor-spirits and for trackless trolley-buses a mileage-tax is levied, the revenue from this source being divided on a basis similar to the motor-spirits revenue.

The original Revenue Fund received an annual transfer of £35,000 from the Consolidated Fund, and the Construction Fund an annual transfer of £200,000 from the Public Works Fund, but in both cases the transfers have been discontinued since 1930. The amount so transferred from the Public Works Fund totalled £1,226,000, and interest on that sum is now debited against the Main Highways Account.

The following table shows the actual income of the Main Highways Account from revenue sources during the last five years:—

1934-35.1935-36.1936-37.1937-38.1938-39.
 £££££
Tire-tax91,69393,308138,894158,526149,017
Registration and license fees of motor-vehicles, &c.355,990397,606545,763523,853575,170
Motor-spirits tax970,5061,449,1251,697,9421,918,4862,083,278
Mileage-tax1,2841,6163,2906,1627,474
    Totals1,419,4731,941,6552,385,8892,607,0272,814,939

During the year 1934-35, £321,754 of motor-spirits taxation, which otherwise would have been payable to the Main Highways Revenue Fund, was retained in the Consolidated Fund pursuant to section 16 of the Finance Act (No. 2), 1934, and £178,246 was paid out of the Revenue Fund by way of special subsidies in respect of rates levied on certain farm lands for the relief of ratepayers, as provided in section 28 of the Finance Act (No. 3), 1934. In addition to the revenue obtained during the year 1938-39, loan-money amounting to £2,675,600 was raised for main highways purposes.

Revenue from the licensing of motor-vehicles and from the tax on tires and. tubes is apportioned between the North and South Islands at the discretion of the Board, but generally so that the amount apportioned to either Island has reference to the number of motor-vehicles in that Island. No statutory provision exists in the case of revenue from motor-spirits taxation, but the apportionment is approximately on the basis of the relative consumption of petrol in the two Islands.

EXPENDITURE.

An analysis of the actual expenditure on maintenance in each Island, as compared with the number of motor-vehicles in each Island at the 31st March of each of the last five years, appears in the following table, the percentages relating to Dominion totals:—

1934-35.1935-36.1936-37.1937-38.1938-39.
North Island—     
Maintenance expenditure65.4464.8066.8266.4669.26
Motor-vehicles64.3164.8465.3065.7065.89
South Island—     
Maintenance expenditure34.5635.2033.1833.5430.74
Motor-vehicles35.6935.1634.7034.3034.11

In the next table are shown the amounts which have been provided by the Board and by local authorities for expenditure on both maintenance and construction of main highways during the last five years. Maintenance figures exclude indirect charges, such as supervision, interest, &c., but include the cost of flood-damage restoration:—

1934-35.1935-36.1936-37.1937-38.1938-39.

* These figures represent true maintenance expenditure, whereas in preceding years expenditure under the Revenue Account was shown.

† These figures and percentages relate to renewals and construction; previously renewals were absorbed in both maintenance and construction.

 £££££
Maintenance by Board932,6751,190,179900,731*1,074,112*1,311,340*
Maintenance by local authorities226,554284,423196,023*153,443*152,730*
Construction by Board325,483428,0841,501,2612,318,6003,058,346
Construction by local authorities57,97578,263103,260108,225134,359
    Totals1,542,6871,980,9492,701,2753,654,3804,656,775
Percentages.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
Maintenance by Board80.580.782.187.589.6
Maintenance by local authorities19.519.317.912.510.4
Construction by Board84.984.593.695.595.8
Construction by local authorities15.115.56.44.54.2

The average expenditure per mile by the Board and local authorities on maintenance of the main highways system during the last ten years has been as follows:—

 £££
* Represents average expenditure on true maintenance. Figures for previous years relate to expenditure from the Revenue Fund, and include work other than actual maintenance.
1929-30128.61934-35100.3
1930-31103.11935-36122.4
1931-3292.51936-3790.5*
1932-3370.71937-38101.2*
1933-3478.51938-39119.9*

For the year 1938-39 the maintenance costs in each highway district, together with the lengths of the main highways, were as follows:—

Highway District.Length of Main Highways.Maintenance Expenditure.
Dustless Surface.Gravel or Macadam Surface.Clay or Pumice Surface.Total.Board.Local Authorities.Total.
 Miles.Miles.Miles.Miles.£££
Auckland North50775..82572,43010,67283,102
Auckland South60481361,453160,39127,312187,703
Tauranga92365262719110,3083,749114,057
Gisborne87307..39497,1677,907105,074
Napier221517..738195,28215,441210,723
King-country375531260261,9466,12668,072
Taranaki342124747353,1144,67857,792
Wanganui151378153077,0936,22983,322
Wellington West253251..50445,1828,06553,247
Wellington East161344..50535,3389,52244,860
  Totals, North Island1,9984,4572886,743908,25199,7011,007,952
Nelson77612769669,3776,16775,544
West Coast58485..54379,9925,48385,475
Canterbury North56308..36427,3193,19330,512
Canterbury Central196554..75045,0088,43153,439
Canterbury South150673..82340,8117,13047,941
Otago Central118726..84449,0357,03756,072
Otago South85439..52444,4316,20450,635
Southland62857..91947,1169,38456,500
  Totals, South Island8024,65475,463403,08953,029456,118
  Totals, Dominion2,8009,11129512,2061,311,340152,7301,464,070

ASSISTANCE TO LOCAL AUTHORITIES.

In terms of the Act of 1922, the Main Highways Board was required to provide one-half of the cost of construction or reconstruction of main highways and one-third of the cost of maintenance and repairs. By subsequent legislation, the rate of assistance from the Main Highways Account was increased, and eventually the Board was empowered to determine the basis of subsidy. Since the 1st April, 1931, the standard maintenance subsidy rate has been £3 for £1, and only in exceptional circumstances is this increased. The construction or renewal of bridges was subsidized at £2 for £1 until 1st April, 1938, but from that date it was increased to £3 for £1.

In special circumstances the Board may advance money, by way of loan, to local authorities to provide for the proportion of cost payable by a local authority in respect of the construction or reconstruction of a main highway. Such loans must be repaid by instalments extending over a period not exceeding ten years as may be agreed upon between the Board and the local authority, and interest is payable at a rate approved by the Minister of Finance.

The Board is also empowered to sell roadmaking machinery, plant, and equipment to local authorities on such terms as it thinks fit, including terms for the payment of the purchase-money by instalments extending over not more than four years, with interest on the unpaid balance at such rate as is fixed by the Board. Since this scheme was introduced, plant, &c., to the value of £288,168 has been purchased, of which sum £67,058 was outstanding at 31st March, 1939.

MAIN HIGHWAY STANDARDS.

In order to qualify for financial assistance from the Main Highways Account, local authorities are required to carry out works to a standard approved by the Board. Subsidies are not payable unless the approved standard is observed, although work of a higher standard may be undertaken provided that the additional expenditure involved is found by the local authorities concerned. From time to time the Board's standards are revised to meet the latest developments in highway practice and engineering design, and also to cater for the requirements of increasing traffic.

Roadmaking materials used in highway works are subject to standard tests, and during recent years advances have been made in the direction of framing standard specifications which allow of a wider use of certain local materials which formerly were not accepted.

The table below shows the extent and types of work carried out on the main highways system by the Board and by local authorities during each of the last ten years:—

Year.Formation and Widening.Gravelling and Metalling.Tar and Bituminous Sealing.Road- and Plant-mix Bituminous Surfacing.Bituminous Macadam (Penetration).Bituminous Concrete.Portland-cement Concrete.Bridges.
 Miles.Miles.Miles.Miles.Miles.Miles.Miles.Ft.
1929-30173179133..3931127,547
1930-3113012895..4114911,175
1931-3213969129..32934,062
1932-33564572..8....3,178
1933-34442875..7..14,988
1934-3511369172273..26,641
1935-3615298245912....8,718
1936-37272131184673....9,575
1937-3832924128249......11,106
1938-39491188357672....25,561
Totals from inception to 31st March, 1939.2,5341,7962,0063013118466123,803

ROADING COSTS.

The following statement of the Dominion's annual roading bill has been derived by the Transport Department from various official sources. In some cases estimation has been resorted to, chiefly in regard to the distribution of expenditure under the headings of main highways, urban roads, streets, &c., but it is considered that the figures are sufficiently close to fact to justify their use as a basis for reliable broad conclusions.

ROAD EXPENDITURE.

Expenditure on1932-33.1933-34.1934-35.1935-36.1936-37.1937-38.
Maintenance—££££££
  Main highways858,577954,6561,501,5391,632,4531,314,6941,482,531
  Urban roads and streets453,969397,371392,032406,775424,201463,533
  Other roads763,648718,255955,4091,098,3661,038,2041,164,972
  Totals2,076,1942,070,2822,848,9803,137,5942,777,0993,111,036
Construction—      
  Main highways261,602276,794411,798624,9431,622,9822,565,822
  Urban roads and streets1,224,2141,104,047944,235903,918938,692982,008
  Other roads1,122,1451,207,2341,137,6001,102,7301,443,1851,605,648
  Totals2,607,9612,588,0752,493,6332,631,5914,004,8595,153,478
Interest and sinking fund charges—      
  Main highways622,128632,846612,129605,403605,925642,695
  Urban roads and streets642,282585,900554,400580,979573,423580,773
  Other roads1,129,4821,136,0701,136,5151,122,4081,047,3941,135,116
  Totals2,393,8922,354,8162,303,0442,308,7902,226,7422,358,584
  Grand totals7,078,0477,013,1737,645,6578,077,9759,008,70010,623,098

In view of the large increase in motor traffic, and of the additional road expenditure necessitated thereby, the following recapitulation of returns from special taxation of motor-vehicles is of direct interest:—

Yield of1933-34.1934-35.1935-36.1936-37.1937-38.
* Share for highway purposes only (first 6d.).
 £££££
Tire-tax63,80192,58794,071139,723159,928
Motor-spirits tax*1,291,8791,424,8091,596,4071,866,1862,108,727
Fees, &c., under Motor-vehicles Act, 1924346,250391,660431,896493,626563,358
Heavy-traffic fees171,503204,767232,094266,603305,694
Drivers' licenses60,35861,38566,26075,87583,557
Mileage-tax1,5971,3961,7563,5766,698
    Totals1,935,3882,176,6042,422,4842,845,5893,227,962
Proportion per cent. of total to total road bill shown in preceding table27.628.530.031.630.4

Included in the figure for motor-spirits taxation for 1933-34 is an amount of £500,000, and for 1934-35 an amount of £321,754, which was retained in the Consolidated Fund and thus diverted from roading purposes. All revenue from this source in 1935-36, 1936-37, and 1937-38 was used for roading purposes. Customs duties on motor-vehicles and parts are excluded from the above table. Such taxation is not special taxation, as all imported goods of similar nature pay duties towards, the general expenses of the State.

The two preceding tables do not necessarily provide an exact or a complete comparison, nor are they capable of exact comparison with tables earlier in this section relating solely to the Main Highways Account. There are numerous items directly or indirectly caused by road traffic which do not appear in the road costs shown. For instance, there are such items as traffic control, increased police duties, cost of collection of petrol and other taxes, general administration charges, examinations for drivers' licenses, hospital maintenance costs resulting from motor-vehicle accidents, &c.

REGISTRATION AND LICENSING OF MOTOR-VEHICLES.

Before the Main Highways Act was passed the Government, by the provisions of the Customs Amendment Act, 1921, and the Finance Act, 1921-22, recognized and applied the principle that motor-vehicle owners should contribute towards the cost of the construction and upkeep of the road-surfaces which were required principally for them. By these Acts an import duty was levied on tires and tubes, the funds so obtained being used for highway construction and maintenance.

Amongst the funds specified by the Main Highways Act as being available for the Revenue Fund was a sum to be derived from the licensing of motor-vehicles. When the Main Highways Act was passed it was expected that a Motor-vehicles Act dealing with the registration and licensing of motor-vehicles would be simultaneously passed, but owing to the difficulty of co-ordinating all interests it was not until November, 1924, that the Motor-vehicles Act became law. This Act provided for the registration and annual licensing of all motor-vehicles.

Registration fees are 10s. for a motor-cycle and 20s. for any other motor-vehicle. License fees include 10s. for a motor-cycle; £2 for a motor-car; £3 for a motor-omnibus; £5 for a traction-engine; and from £2 to £3 for a motor-lorry, according to weight and tires. Other fees include drivers' licenses, 5s.; changes of ownership, 5s.; and manufacturers' and dealers' fees. Heavy-traffic fees are not levied under the Motor-vehicles Act: they are referred to under the next heading.

All such fees, except that for a driver's license, which is payable to the local authorities, have in terms of the Motor-vehicles Act to be credited to the Main Highways Account. Heavy-traffic fees are distributed among local authorities.

The Motor-vehicles Amendment Act, 1930, amended the pre-existing law in several important respects. A uniform speed limit of thirty miles per hour was fixed in boroughs and town districts, while authority was taken to extend the operation of this limit to other localities by notice published in the New Zealand Gazette. This speed limit may also be abrogated in specified localities by similar notification. Penalties were provided for careless and inconsiderate driving. The general penalty for offences was increased from £10 to £50; while the pre-existing authority for the issue of regulations was extended to provide for periodical examination of motor-vehicles (fee, 5s.), and for limiting the hours during which, or regulating conditions under which, a person may drive a trade motor-vehicle in use for commercial purposes. Power was taken to issue regulations governing pedestrian and other traffic.

The customary figures of motor-vehicles licensed (quarterly figures are published in the Monthly Abstract of Statistics) show a classification based upon licensing requirements. The figures in the table following have been specially compiled to distinguish completely the actual types of vehicles.

Type of Vehicle.Licensed as at 31st March,
1935.1936.1937.1938.1939.
Cars138,188152,475173,099194,217216,516
Taxis1,5971,7321,8971,7551,695
Service cars726699703695659
Omnibuses661573655787873
Trucks, 2 tons and under22,23624,32226,64427,09228,621
Trucks, over 2 tons16,36218,06820,38122,04223,759
Motor-cycles24,57024,09924,34723,02021,259
Tractors and traction-engines1,0351,2711,3181,8272,727
Trailers3,4284,1595,7647,86510,597
Others6598491,1401,0271,225
Totals209,462228,247255,748280,327307,931

Dormant registrations are those of vehicles the registration of which has not been cancelled, but which have not been relicensed for the current year. Dormant registrations stand for two years, and are then cancelled if not previously relicensed. The number of dormant registrations is always high in the early months of the registration year, but declines rapidly during the year.

The number of dormant registrations of all vehicles as at the 31st March, 1939, was 34,756, consisting of 17,900 1937-38 and 16,856 1936-37 registrations. Dormant registrations of cars as at the 31st March of the last five years have been approximately as follows: 1935, 8,700; 1936, 7,900; 1937, 7,900; 1938, 10,900; and 1939, 12,500.

Upon the arbitrary assumption that, of vehicles whose registration is “dormant,” three-fourths of 1937-38 registrations and one-half of 1936-37 registrations still existed as usable vehicles, the approximate number of motor-vehicles in New Zealand at 31st March, 1939, was 330,000, of which 307,931 were actually upon the roads.

The following figures show the number of motor-vehicles licensed as at 30th June, 1939, totals for the previous year being given for purposes of comparison. Licenses are renewable in May, so that at 30th June (approximately mid-winter), dormant registrations are particularly numerous.

Type of Vehicle.North Island.South Island.Dominion.
Cars125,99160,511186,502
Light trucks (i.e., 2 tons and under, laden)14,7937,58322,376
Heavy trucks (i.e., over 2 tons, laden)12,8405,77518,615
Passenger trucks9025991,501
Omnibuses464201665
Taxis1,1024521,554
Rental cars305170475
Private-hire cars10284186
Service-cars338231569
Trailers2,6092,2684,877
Dealers' cars1,2295421,771
Local authority road vehicles1,9431,8143,757
Government vehicles2,4551,2113,666
Motor-cycles7,5983,94211,540
Dealers' motor-cycles7145116
    Totals, 30th June, 1939172,74285,428258,170
    Totals, 30th June, 1938158,15778,505236,662

In number of motor-vehicles per head of population New Zealand ranks high, and is, in fact, usually credited in the latest statistical compilations as being exceeded in this respect only by the United States.

A comprehensive traffic survey conducted by the Transport Department in 1934-35 gave the following results:—

Estimated Annual Passenger Mileage.Estimated Annual Ton-mileage of Goods.
Private Cars.Public Passenger Vehicles.Motor- cycles.All Passenger Vehicles.
 (000)(000)(000)(000)(000)
North Island739,51552,24824,175815,93884,322
South Island424,12330,84316,249471,21544,214
Totals1,163,63883,09140,4241,287,153128,536

The country of manufacture of motor-vehicles added to the register during each of the last five years is indicated in the table following.

Country of Manufacture.Motor-vehicles registered, Year ended 31st March,
1935.1936.1937.1938.1939.
Motor-cars—     
  United Kingdom6,0969,39614,55616,61016,452
  U.S.A. or Canada6,73010,02311,13312,91911,884
  Other countries6950107308601
Commercial vehicles—     
  United Kingdom1,2661,5151,9552,0321,961
  U.S.A. or Canada2,7913,7854,9915,6975,419
  Other countries9541,1452,0532,6843,482
Motor-cycles—     
  United Kingdom1,6691,8972,6002,7142,005
  U.S.A. or Canada542486419302226
  Other countries2238922

ROAD TRANSPORT.

The period following the war of 1914-18 ushered in a rapid development of an already considerable road motor transport which has necessitated extensive legislation, not alone for its control but also for the provision of adequate road-surfaces. Certain principal enactments are referred to briefly in chronological order.

The Customs Amendment Act, 1921, among numerous tariff changes, imposed a tire-tax on rubber tires and tubes, previously duty free. The proceeds are credited to the Main Highways Account. For an account of the moneys derived from this and other highways taxation, vide Section XXIVB (Taxation).

The Main Highways Act of 1922, referred to earlier in this section, constituted the next landmark. Two years later came the Motor-vehicles Act, 1924 (amended in 1927, in 1934-35, in 1930, and in 1939). which has received specific mention under the immediately preceding title. At the same time the Public Works Amendment Act, 1924, was passed (later included in the 1928 consolidation of that Act). Under it regulations could be made fixing, in respect of commercial vehicles of over 2 tons gross weight, heavy-traffic fees payable to local authorities for road-maintenance purposes, and also classifying roads and providing other measures. Regulations to this effect were made in 1925, and are now embodied in the Heavy Motor-vehicle Regulations, 1932. In the financial year 1937-38 local bodies received £305,694 by way of heavy-traffic fees. Present annual license fees under the heavy motor-vehicle regulations range from £5 2s. to £63 15s. for a pneumatic-tired vehicle, and from £6 to £75 for a vehicle solid-tired on any wheel.

With the object of controlling motor-omnibus competition with tramways, regulations under the Board of Trade Act were issued in 1926. In the same year they were superseded by the Motor-omnibus Traffic Act, itself later repealed by the comprehensive Transport Licensing Act, 1931 (amended in 1933, 1935, 1936, and 1939).

The Motor-spirits Taxation Act, 1927, imposed a duty of 4d. per gallon (raised in 1930 to 6d. per gallon; further subsequent increases are not connected with road taxation). As previously mentioned, from the net proceeds 92 per cent. is paid into the Main Highways Account, and the balance distributed on a population basis among cities or boroughs of a population of 6,000 upwards.

In 1927 the administration of the Motor-vehicles Act, 1924, was transferred to the Public Works Department, which subsequently issued in draft form regulations containing a uniform code of rules for motor-traffic in the Dominion. After full opportunity for criticism by interested parties the regulations were brought into law in 1928, and have been reissued as the Traffic Regulations, 1936.

The Public Works Act, 1928, contained extensive provisions relating to the construction, maintenance, and of roads. Almost simultaneously came the Motor-vehicles Insurance (Thirty Risks) Act, 1928—vide Section XXLXB (Accident Insurance).

In 1929 the Transport Department Act constituted the portfolio of Minister of Transport, and also constituted the Transport Department under a Commissioner of Transport. The Act placed the administration of the following Acts under the Transport Department:—

  • Motor-vehicles Act, 1924.

  • Motor-omnibus Traffic Act, 1926.

  • Motor-spirits Taxation Act, 1927.

  • Motor-vehicles Insurance (Third-party Risks) Act, 1928.

  • Public Works Act, 1928, in so far as it relates to heavy traffic or to motor-vehicles.

The Transport Licensing Act, 1931, is also under the administration of the Department.

TRANSPORT LICENSING.

The Transport Licensing Act, passed on the 11th November, 1931, is designed to regulate road motor transport with a view to securing co-ordination between it and other forms of transport, and to secure its organization from the standpoint of maximum utility. The Act was substantially amended in 1933, 1935, 1936, and 1939, the principal amendment being the abolition from 1st April, 1936, of the Transport Co-ordination Board (set up under an amending Act of 1933), the powers previously exercised by the Board being vested in the Minister of Transport.

The more important provisions of the law as amended are described in the following paragraphs:—

Four metropolitan districts were constituted under the Act, and four licensing authorities appointed (the Auckland Transport Board, and the Wellington, Christchurch, and Dunedin City Councils).

Provision was also made for the division of the remainder of the North and South Islands into transport districts. By Order in Council there are now four transport districts (two in the North Island and two in the South). The dividing boundaries between the districts lie approximately across the middle of each Island from cast to west. The four districts, together with the four metropolitan districts, cover the total area of the mainland.

A district licensing authority is constituted for each transport district. Prior to the amending Act of 1936 each district licensing authority consisted of three members, but now the Minister may delegate, and has delegated, these powers to one person.

Motor-vehicle passenger services are not permitted to operate except under license. Formerly this did not apply to taxis unless running on defined routes, to the carriage of school-children, or to the carriage in certain cases of a private party by contract vehicle on a special occasion. The 1936 amending Act gave authority to extend, at the discretion of the Minister, the definition of a passenger service to include any service by motor-vehicle for the carriage of passengers. This power was invoked in the case of the Christchurch taxis, which were placed under the control of the Christchurch Metropolitan licensing authority, and the Hamilton, Thames, and Taumarunui taxis, which were placed under the control of the respective district licensing authorities. With the passing of the Transport Law Amendment Act, 1939, no taxi is permitted to operate except under license.

In considering applications for licenses, the licensing authority is required first to have regard to the necessity or desirability of the service in the public interest and to the needs of the district in relation to passenger transport. Should these requirements be fulfilled, the licensing authority must further take into account, inter alia, the financial ability of the applicant, time-tables, fares, existing transport services, transport requirements, vehicles to be used, conditions of roads or streets to be traversed, and representations by the Railways Department, local authorities, other transport owners, &c. In certain circumstances applications by the Government or by local authorities receive preference. Where the Minister of Railways holds a passenger-service license, no licenses are to be granted to any other person in respect of the same route and terminal points without the consent of that Minister. This does not apply to renewals which merely authorize the continuance of existing services to the extent to which they were being carried on at the time of the acquisition by the Minister of the license held by him.

It was the intention of the Legislature first to examine, regulate, and co-ordinate the passenger-transport services of the Dominion, and then, with the administrative experience thus gained, to proceed with the more complicated undertaking of rationalizing the goods-transport services. Regulation of passenger-transport was introduced at a time when adverse economic conditions had brought about intense competition, with its attendant evils. As a result of the Act, unnecessary or undesirable competition was eliminated, time-tables were drawn up and strictly enforced, standards of serviceability of vehicles were imposed, and routes and fare-schedules laid down.

The Transport Licensing Amendment Act, 1935, extended the duration of passenger-service licenses to three years, except in the case of temporary licenses.

The Goods Order, 1933, which brought goods services under the jurisdiction of the Act, was replaced by the Goods Order, 1936. This Order provided for the licensing of all goods services operating outside the exempted areas around Auckland, Wellington, Christchurch, and Dunedin, and outside a radius of six miles from the chief or main post-office in the following towns:—

Whangarei.Hastings.Nelson.
Hamilton.New Plymouth.Greymouth.
Rotorua.Wanganui.Timaru.
Gisborne.Palmerston North.Oamaru.
Napier.Masterton.Invercargill.

Under the principal Act, goods services carried on entirely within the boundaries of a single borough or town district were exempted from the licensing provisions, but this exemption has since been removed by section 16 of the Transport Law Amendment Act, 1939.

Exemption from licensing is extended to a goods service carried on solely—

  1. In connection with funerals; or

  2. In connection with repair or wreckage of vehicles which have met with mishap; or

  3. In the carriage of newspapers.

The rationalization of the goods-service industry has not yet reached the same stage as that obtaining in the passenger-service industry, although substantial progress has been made in this connection. Licensees have been restricted to fixed routes or areas, subject to certain provisions enabling them to obtain temporary licenses to perform occasional jobs outside their respective territories.

The 1936 amendment makes provision for the exercise by the Minister of powers formerly vested in the Transport Co-ordination Board. A right of appeal to the Minister against decisions of licensing authorities is given in the amending Act, the decision of the Minister to be final. The investigating powers formerly held by the Board are transferred to the Minister, who is also declared to be the sole issuing authority for licenses for commercial aircraft services.

PASSENGER-SERVICE LICENSES.

The following table deals with passenger-service licenses for the year ended 31st March, 1939. It covers licenses issued by the four district authorities and by the four metropolitan authorities during the year.

Received.Granted.Refused.Adjourned.
New applications1821242335
Renewal applications294288..6
Amendment applications251218231
Transfer applications5453..1
Total applications7816832573
Number of passenger-service licenses reviewed6
Number of passenger-service licenses revoked or abandoned30
Number of passenger-services licensed at 31st March, 1939— 
  (a) in the four licensing districts774
  (b) in the four metropolitan areas74

During the year ended 31st March, 1939, 7,298 temporary passenger-service licenses were issued.

The main passenger-service statistics for the Dominion are as under for the last two years:—

 1937-38.1938-39.
Vehicle-journeys run1,901,0312,181,487
Vehicle-miles covered23,509,36125,455,248
Empty trips48,85259,376
Passengers carried23,276,76126,655,485
 Total.Per Vehicle-mileTotal.Per Vehicle-mile.
Operating-costs—£d.£d.
Vehicle-running415,9764.25457,1864.31
Vehicle standing charges500,0205.10594,3745.60
General overhead charges113,8701.16133,0331.26
Totals1,029,86610.511,184,59311.17
Revenue—£d.£d.
Passengers999,92710.211,195,8871.28
Mail contracts36,7620.3832,0460.30
Newspapers25,2690.2623,2490.22
Goods and parcels74,5670.7652,1510.49
Other10,6870.1114,0500.13
    Totals1,147,21211.721,317,38312.42
 £d.£d.
Net profits117,3461.21132,7901.25
Total assets1,079,348..1,123,693..
Vehicles (included in “Total assets”)538,715..576,494..
Capital and reserves824,329..918,197..
Other liabilities255,019..205,496..
    Total liabilities1,079,348..1,123,693..

GOODS-SERVICE LICENSES.

The following table deals with continuous and seasonal goods-service licenses (excluding temporary licenses) handled by the licensing authorities for the year ended 31st March, 1939:—

Received.Granted.Refused.Withdrawn.Adjourned.
New applications414318551724
Renewal applications250234619
Amendment applications688538109734
Transfer applications3643409..15
Total applications1,7161,4301792582
Number of goods-service licenses reviewed7
Number of goods-service licences revoked or abandoned100
Number of goods-services licensed at 31st March, 19393,161

During the year ended 31st March, 1939, 10,694 temporary licenses were issued.

Statistics of goods-services operating under license during the years 1935-36, 1936-37, and 1937-38 are given:—

 1935-361936-37.1937-38.
Vehicle-miles covered49,465,00056,629,00070,295,000
 £££
Operating-costs1,805,0002,308,0003,158,000
Revenue2,070,0002,679,0003,583,000
Net profit265,000371,000425,000
Capital and reserves1,289,0001,771,0002,445,000
Other liabilities635,000761,0001,207,000

Total operating-expenses in 1937-38 averaged 10.99d. per vehicle-mile, while revenue averaged 1249d.

It should be noted that the licensed goods-services engaged only a small portion (5,800 out of a total of over 45,000) of the total number of motor-trucks actually on the road.

TRAFFIC ACCIDENTS ON ROADS.

FATAL ACCIDENTS.

Statistics of road accidents resulting in fatalities are available for many years past from the vital statistics compiled by the Census and Statistics Department, and these figures (on a calendar-year basis) are discussed briefly in an earlier section (vide pp. 139-140). Further details of fatal motor accidents, compiled by the Transport Department for recent years ended 31st March, are given below.

Nature of Accident.Year ended 31st March,
1933.1934.1935.1936.1937.1939.
Collisions, motor-vehicle with—      
Pedestrian452646565458
Motor-vehicle392136455640
Train391041111
Tram1..2221
Bicycle161523272532
Horse-vehicle or horse under control6431..1
Fixed object58791116
Straying stock1223....
Went over bank9182218926
Otherwise152423263540
Total140125174191203225

NOTE.—Figures for 1938 are not available.

ALL ROAD ACCIDENTS.

Motor-vehicle accidents involving death or personal injury are required by law to be reported to the police, and since 15th March. 1937, very full particulars of all such accidents have been furnished to the Transport Department. Analyses made from these reports are published each month.

For the year ended 31st March, 1939, 4,383 such accidents were reported, resulting in 246 fatalities, and injuries to 5,635 other people.

The figures shown in the foregoing table relate to fatal accidents only, while the figures quoted in the following table for 1937-38 and 1938-39 relate to accidents involving death or personal injury. Figures showing types of accidents for the year ended 31st March, 1938 and 1939, are as follows:—

Nature of Accident.No. of Accidents.
1937-38.1938-39.
Collisions—  
  Between two or more motor-vehicles1,3511,487
  Between motor-vehicle and bicycle989992
  Between motor-vehicle and pedestrian841879
  Between motor-vehicle and fixed object275175
  Between motor-vehicle and animal or horse-vehicle5048
  Between motor-vehicle and railway-train3244
  Between motor-vehicle and tram2240
  Other collisions34144
 —3,594—3,809
Non-collisions—....
  Drove off road151115
  Ran down declivity87195
  Fell into river, sea, &c.25 
  Overturned on roadway138194
  Person fell from vehicle5542
  Other1228
 —468—574
    Total accidents4,0624,383

From a study of the detailed statistics for 1938-39, the following main features are worthy of comment:—

  1. In the urban areas the number of fatal accidents increased by 18½ per cent. over the preceding year; but in the rural areas there was a reduction of 14 per cent. as compared with 1937-38.

  2. Of the fatal accidents, 27 per cent. involved no collisions, 26 per cent. comprised collisions with a pedestrian, 18 per cent. collisions with another motor-vehicle, and 14 per cent. collisions with a bicyclist.

  3. Of all injury accidents, 33 per cent. were collisions between motor-vehicles, 22 per cent were collisions with a bicyclist, 20 per cent. were collisions with a pedestrian, and only 13 per cent. were non-collisions.

  4. While the urban roads were estimated to carry 30 per cent. of all motor-traffic, they were the scene of 06 per cent. of the accidents. On the main-highway system, with 60 per cent. of the motor-traffic, there occurred 28 per cent. of all accidents. The other rural roads carried 10 per cent. of the traffic and had nearly 6 per cent. of the accidents.

  5. Over 36 per cent. of all accidents and 47 per cent. of all fatal accidents happened at night or at dusk. Many of those killed or injured at night were pedestrians or bicyclists.

  6. The number killed per 100,000 of population amounted to nearly 16, and the number injured to 358. In the age-group 65 years and over there were 35 killed and 300 injured per 100,000, while in the 55-64 years group there were 26.5 killed and 330 injured. In the age-groups 15-19 years and 20-24 years respectively there were 19 and 27 persons per 100,000 killed, but 584 and 690 persons per 100,000 were injured.

  7. The results of the accidents were most serious for the very young and the elderly. In the 0.4 years age-group there was 1 death for 12 to 13 others injured; in the 5-9 years group 1 death for 20 others injured. In the 55-64 years group 1 person was killed for 12 to 13 others injured, while among those 65 years and over 1 was killed for 8 to 9 others injured. The average for all age-groups was 1 killed for 23 others injured.

  8. Of all accidents, 64½ per cent. were attributed directly to the motor-driver, 4 per cent. to the motor-vehicle, 26 per cent. to other road-users, 2½ per cent. to the road, about ½ per cent. to adverse weather conditions, and 2½ per cent. to other miscellaneous causes. Of collisions with bicyclists the motorist or his vehicle was judged to be mainly responsible in 46 per cent. of the cases, the cyclist in 53 per cent., and the road in 1 per cent. In the case of motor-vehicle-pedestrian accidents the motorist was deemed to be mainly at fault in 29 per cent. of the accidents and the pedestrian in 71 per cent.

  9. Where the driver was intoxicated or to any extent under the influence of liquor, 1 accident in 8 proved fatal, as compared with the general rate of 1 fatal accident for every 18 or 19 non-fatal. Over 42 per cent of these “liquor” accidents occurred in the twelve-hour period of the week between 4 p.m. Saturday and 4 a.m. Sunday.

Chapter 15. SECTION XV.—AVIATION AND AIR TRANSPORT.

DEVELOPMENT OF AVIATION.

APART from a few isolated experimental flights, there was little active interest in aviation in the Dominion in the very early stages of aeronautical development. There were, however, two aviation companies operating in New Zealand during the years of the 1914-18 War. In both instances the activities of the companies were confined to the training of pilots for the Royal Flying Corps (and later the Royal Air Force) and to “joy-riding” tours, while flying exhibitions were given in numerous centres throughout the country.

An Act to control aviation in New Zealand was passed in 1918. This Act empowered the Governor-General in Council to make regulations for the licensing of aircraft and flying schools, and for the issuing of flying-certificates.

During the financial year 1919-20, £25,000 was voted by the Government for aviation purposes, but of this amount only £8,368 was expended. No definite aviation policy had been formulated up to that time; but early in 1920 an Air Board was set up, consisting of three naval and military officers and five senior administrative officers of the Government, to act in an advisory capacity to the Government in all matters concerning aviation in the Dominion. The existing aviation companies were being run at a loss—partly as a result of the cessation of training of pilots as candidates for service in the Royal Air Force—and it was deemed advisable to subsidize these companies in order to keep them in operation until such time as plans for the future development of aviation were drawn up. In September, 1920, an aviation policy was approved by Cabinet, dealing with matters of defence, commercial undertakings, and aviation generally.

The necessity for the encouragement of commercial aviation as an essential part of Defence policy was recognized, and arrangements were made for the loan of Defence machines to civil companies for training purposes, while a subsidy scheme was brought into operation. In 1922-23 subsidies amounting to £2,975 were paid to the two aviation companies then in existence. In addition, these companies received £2,700 as payment for refresher courses carried out by Defence officers.

On the 14th June, 1923, the New Zealand Air Force was formed, consisting of (a) the Permanent Air Force, and (6) the New Zealand Air Force—a part of the Territorial Forces of the Dominion; Wigram Aerodrome was purchased as a base, Sir Henry Wigram donating £10,000 towards the purchase price.

Civil aviation in New Zealand did not progress beyond the experimental stage until comparatively recently. Apart from the insufficiency of adequate and well-equipped landing-grounds, the comparative smallness of the country did not encourage the early development of civil aviation. After the first pioneer stage there was little activity for several years; but a fillip to aviation in the Dominion was given by the Government's offer in 1929 of financial assistance to approved flying clubs.

Recognizing that the development of civil aviation in New Zealand was being seriously retarded by the cost of providing adequate ground organization, Parliament passed legislation in 1929 empowering local authorities to establish and maintain aerodromes and to make charges for their use. The Act empowered all classes of local authorities and public bodies to contribute towards the cost of establishing such aerodromes and to contribute to the funds of recognized aviation authorities. In September, 1933, a scheme for establishing a chain of landing-grounds throughout the Dominion was approved by the Government, its objects being to increase the mobility and defensive power of the Royal New Zealand Air Force and to provide for the development and safety of civil aviation.

The scheme, which is still in operation, involves the location and inspection of suitable sites, along the main air routes, by specially qualified engineers of the Public Works Department, working in close collaboration with the Controller of Civil Aviation. Once the areas are selected, engineering surveys are carried out and the grounds levelled by the Public Works Department. The scheme calls for the close co-operation of the Public Works Department and the Air Department. During the financial year 1938-39 £334,766 was expended on the development of landing-grounds, and provision has been made in the current year's appropriations for £330,000.

As at the 31st March, 1939, there were fifty-five licensed aerodromes in the Dominion, of which nine were usable in their original condition, while ten other fields were available as emergency-landing grounds. On all but a few of the smallest of these licensed fields, on all emergency-landing grounds, and on many other fields not yet in use, development work has been undertaken.

Investigation and construction work may be summarized as follows:—

Sites investigated270
Sites surveyed and proposals prepared or in hand92

Licensed fields for commercial and general use—

(i) Constructed and licensed43
(ii) Partly developed and licensed3
(iii) Construction completed but not licensed6
(iv) Construction in hand and not licensed6
..58

Emergency-landing grounds—

(i) Constructed and in use10
(ii) Construction in hand4
..14

Further extensions were undertaken on all fields after the initial development was completed.

All emergency-landing grounds and certain remote landing-fields are constructed and maintained at the expense of the Government.

The Public Works Amendment Act, 1935, authorizes a local authority’ and the Governor-General on the application of a “ recognized aviation authority “ to take land for aerodromes. Other provisions deal with fixing the maximum height of obstructions in the vicinity of aerodromes and the removal of obstructions.

AIRCRAFT CONSTRUCTION IN NEW ZEALAND.

The decision of the De Haviland Aircraft Company, Ltd. to commence aircraft construction in New Zealand marks an important step in the history of aviation in the Dominion. The company commenced the erection of a factory at Rongotai in June, 1939, and an order for one hundred planes to be delivered in batches of twelve at two-monthly intervals has been placed by the Government. The first batch will be imported largely ready for assembly, but with each succeeding batch more and more of the work will commence with the raw materials until the planes will be wholly of New Zealand manufacture, with the exception of the engines, castings, and certain metal parts in special tensile steels.

THE ROYAL NEW ZEALAND AIR FORCE.

On the 1st April, 1937, the administration of service and civil aviation was provided for by the establishment of an Air Department. The Royal New Zealand Air Force consists of—

  1. The Regular Air Force;

  2. The Air Force Reserve; and

  3. The Territorial Air Force.

The Regular Air Force consists (31st August, 1939) of permanent and short-service commissioned officers and airmen (seventy-nine officers, together with six Royal Air Force officers attached, forty-two officers under instruction, and 661 airmen).

The Air Force Reserve comprises the Reserve of Air Force Officers and the Reserve of Airmen, the latter yet to be formed. In time of war or of imminent national danger this reserve, or any portion thereof, may be transferred to the Regular Air Force.

The Territorial Air Force is liable, by voluntary engagement, for training in time of peace, and for continuous service within New Zealand during the continuance of a state of war or of imminent national danger. It consists of four Territorial squadrons, based at Auckland, Wellington, Christchurch, and Dunedin.

The Regular Air Force is distributed between the administrative headquarters and the two Air Force stations—the Royal New Zealand Air Force Base, Hobsonville, Auckland, which is a combined land and seaplane station, and the Royal New Zealand Air Force Station, Wigram Aerodrome, Christchurch. Additional sites have been acquired and are at present in course of development. The operational station at Ohakea is nearing completion, while the construction of a second operational station at Whenuapai is also well advanced.

The flying training school, which is situated at Wigram Aerodrome, undertakes intermediate and advanced flying training, the elementary training being done by selected aero clubs. A second flying training school is under construction at Blenheim. Service aircraft at present in use in New Zealand are Avro 626, Hawker Tomtit, Blackburn Baffin, Fairey Gordon, Vickers Vildebeest and Vincent, and Airspeed Oxford.

CIVIL AVIATION.

The general statutory law relating to aviation in New Zealand is contained in the Air Navigation Act, 1931. The main purpose of this Act was to enable the Governor-General in Council to make regulations for carrying out the Convention relating to aerial navigation signed at Paris on behalf of the New Zealand Government in 1919. Civil aviation is subject to the Air Navigation Regulations, 1933, administered by the Air Department. Statutory provisions of localized application are contained in the New Plymouth Airport Act, 1937, the Napier Airport Act, 1935, and the Whangarei Airport Act, 1937, which make provision for the control of these airports. This control is exercised by Boards consisting of representatives of the aero clubs and local authorities concerned, together with members appointed by the Minister of Defence.

COMMERCIAL AIR TRANSPORT.

With three companies operating air lines of a major nature commercial aviation can be said to have become firmly established in New Zealand. Previously commercial activities had been limited mainly to air-taxi work (undertaken by aero clubs) and to two scheduled services of a minor nature. In December, 1935, however, Cook Strait Airways commenced an air service across Cook Strait, and during the following month Union Airways commenced a two-way daily trunk service from Palmerston North to Dunedin. The former service was extended from Nelson to Hokitika (via Greymouth) in February, 1937, and Union Airways inaugurated the northern trunk service (Auckland-Wellington, via New Plymouth and Palmerston North) in June, 1937. In October, 1938, the existing services operated by Union Airways were reorganized to provide for services between Auckland and Wellington (twice daily), Wellington and Dunedin, Palmerston North and Christchurch, Palmerston North and Gisborne. In March, 1939, a service was inaugurated between Auckland and Gisborne via Tauranga and Opotiki. Regular services between Australia and the Dominion, and between the United States of America and the Dominion will be inaugurated shortly.

Legislation controlling the licensing of commercial aircraft services was introduced in 1934, when the Transport Licensing (Commercial Aircraft Services) Act was passed. Under the provisions of this Act the issuing of licenses was placed under the jurisdiction of the Transport Co-ordination Board, set up under the Transport Law Amendment Act of 1933; but from the 1st April, 1936, this Board was abolished, its powers being vested in the Minister of Transport in accordance with the Transport Licensing Amendment Act, 1936. All air-transport services must hold licenses under these Acts, except those in which aircraft leave from and return to the same aerodrome without any intermediate stop. Licenses may be issued to commercial aircraft companies for the maintaining of regular timetable schedules or for air-taxi work. Special taxi licenses, available for a period of four years and expiring on 30th October, 1938, were issued to the recognized aero clubs in existence at the time the legislation came into force. These licenses were not renewable, and before the date mentioned above the clubs concerned were required to make application for continuous aircraft licenses.

By the Customs (Aircraft) Regulations of 1935 it is necessary for aeroplanes arriving from or departing to other countries to do so at a “Customs” aerodrome, and Customs declarations similar to those required of ships and their passengers are necessary before departure and on arrival of such aeroplanes.

The following companies are at present operating scheduled services in the Dominion:—

  1. Air Travel (N.Z.), Ltd.

  2. Cook Strait Airways, Ltd.

  3. Union Airways of N.Z., Ltd.

Following are some particulars of the companies:—

AIR TRAVEL (N.Z.), LTD.

Date commenced operations18th December, 1934.
Number of planes5.
Description of planes3 D.H. Fox Moths; 2 D.H. Dragonflys.
Total seating-capacity23.
Route and frequency of serviceInchbonnie —Hokitika to Franz Joseph Glacier — twelve trips weekly in each direction. Hokitika to Haast, Okuru, and Jackson's Bay — thrice weekly in each direction.

The company is authorized to use Inchbonnie, Grey mouth, or Hokitika as ports, but in practice the Hokitika aerodrome is the regular starting-off and terminal port. The company operates a regular mail - service to Okuru and Jackson's Bay—the first regular air-mail service in New Zealand, and one of the few in the world on which no surcharge was made for air transport of mail.

The following table gives details of operations to 30th June, 1939:—

Period.Mileage.Passengers.Freight.Mails.
   lb.lb.
From 18th December, 1934, to 30th June, 1938340,0004,25251,162142,360
Quarter ended 30th September, 193816,7351605,52019,698
Quarter ended 31st December, 193816,32013412,52522,207
Quarter ended 31st March, 193920,9061886,50216,099
Quarter ended 30th June, 193925,8551856,23920,924
    Totals419,8164,91981,948221,288

COOK STRAIT AIRWAYS, LTD.

Date commenced operations30th December, 1935.
Number of planes5.
Description of planesD.H. 89 (Rapides).
Total seating-capacity35.
Routes and frequency of service(a) Nelson to Wellington and vice versa (direct and via Blenheim); and Wellington to Blenheim and vice versa. Schedule: A total of seventeen trips daily.
 (b) Nelson to Greymouth: Once daily in each direction, Monday to Saturday.

The headquarters of this company are at Nelson, with terminal facilities at Wellington. The routes flown approximate 300 miles.

The following table gives details of operations to 30th June, 1939:—

Period.Mileage.Passengers.Freight.Mails.*
* From 16th March, 1936, only.
   lb.lb.
From 30th December. 1935, to 30th June, 1938857,47543,90782,60369,948
Quarter ended 30th September. 1938122,5505,95717,99412,036
Quarter ended 31st December, 1938140,8955,87525,78710,813
Quarter ended 31st March. 1939138,1326,94226,53910,075
Quarter ended 30th June, 1939150,0006,89231,49612,251
Totals1,409,05269,573184,419115,123

UNION AIRWAYS OF NEW ZEALAND , LTD.

Date commenced operations16th January, 1936.
Number of planes9.
Description of planes3 D.H. 86, 4 Lockheed “Electras” 10A, and 2 D.H. 84.
Total seating-capacity88.
Routes and frequency of service(a) Auckland to Wellington: Once daily in each direction via New Plymouth and Palmerston North. Once daily in each direction via Palmerston North (excluding Sundays).
 (b) Wellington to Dunedin: Once daily in each direction via Christchurch.
 (c) Palmerston North to Christchurch: Once daily in each direction via Blenheim.
 (d) Palmerston North to Gisborne: Once daily in each direction via Napier,
 (e) Auckland to Gisborne: Thrice weekly in each direction via Tauranga and Opotiki.

The total route mileage on these services is in excess of 1,400. The company proposes shortly to inaugurate services over the following routes:—

  1. Auckland to Rotorua.

  2. Palmerston North to Hawera via Wanganui.

  3. Dunedin to Invereargill.

The following table shows details of operations to 30th June, 1939:—

Period.Mileage.Passengers.Freight.Malls.*
* From 16th March, 1936, only.
   lb.lb.
From 16th January, 1936, to 30th June, 19381,254,78628,63033,769187,563
Quarter ended 30th September, 1938199,3765,5098,00847,262
Quarter ended 31st December, 1938255,1516,6838,94255,483
Quarter ended 31st March, 1939293,5058,60916,85753,476
Quarter ended 30th June, 1939290,2958,53920,23552,324
    Totals2,293,11357,97087,811396,108

SUMMARY OF OPERATIONS OF REGULAR AIR SERVICES TO 30TH JUNE, 1939.

Company.FromMileage.Passengers.Freight.Mail.

* From 16th March, 1936, only.

† Taken over by Union Airways of N.Z. Ltd., June, 1938.

    lb.lb.
Air Travel (N.Z.), Ltd.18/12/34419,8164,91981,948221,288
Cook Strait Airways, Ltd.30/12/351,409,05269,573184,419115,123*
Union Airways of N.Z., Ltd.16/1/362,293,11357,97087,811396,108*
East Coast Airways, Ltd.16/4/35 tot 30/6/38404,27314,44714,49718,247
    Totals..4,526,254146,909368,675750,766

At the 30th June, 1939, these three companies employed thirty pilots and operated nineteen aircraft on their regular services.

In addition to the licenses for their regular services, the above companies have been granted taxi licenses by the Minister of Transport. These permit the company concerned to operate a continuous taxi service to any part of New Zealand from the aerodrome which is the headquarters of the company.

Air-taxi licenses are also held by the following companies (in addition to those held by aero clubs and the regular companies):—

  • Waikato Aviation Co., Ltd.

  • New Zealand Aerial Mapping, Ltd.

  • Southland Airways, Ltd.

  • Queenstown - Mount Cook Airways, Ltd.

The Waikato Aviation Co., Ltd., with headquarters at Rotorua, holds a license to carry out air-taxi work. The company uses one machine—a Desoutter cabin monoplane, Mark I, which has a seating-capacity of three (including pilot), or, alternatively, may be used as an ambulance plane. This company is also engaged in the training of pilots for the Rotorua and Bay of Plenty Aero Club.

The Mount Cook and Southern Lakes Tourist Co., Ltd. (formerly the Mount Cook Tourist Co. of New Zealand, Ltd.), was granted a license in 1935, and commenced operations as Queenstown - Mount Cook Airways, Ltd., during January, 1939. The company uses one Waco QDC aircraft, and operates from the aerodromes at Timaru, Queenstown, and Mount Cook.

New Zealand Aerial Mapping, Ltd., was formed early in 1937 at Hastings with the object of carrying out aerial surveys for local authorities. A Monospar S.T. 25 aircraft suitably modified for this typo of work was imported from England. The company was granted a continuous taxi license on 2nd June, 1937.

Southland Airways, Limited, with headquarters at Invercargill, operates two Puss Moth aircraft on a continuous taxi license granted on 16th December, 1936.

Regulations governing air-taxi licenses were co-ordinated in October, 1935, following a conference of all parties interested, and such regulations govern both commercial companies and aero clubs. Included therein were the following conditions as to the fares to be charged for air-taxi work: Minimum fares—One passenger, £3 for each 100 miles; two passengers, £3 10s. for each 100 miles; three passengers, £3 15s. for each 100 miles; four passengers, £4 for each 100 miles; but where the flight takes place between two points served by any licensed regular service the individual fare is in no case to be less than the fare charged by the regular service plus 10 per cent.

In addition, these regulations enable an air-taxi-license holder to fly between any two licensed aerodromes in New Zealand, thus removing restrictions previously imposed as to the aerodromes to or from which and the territories over which air taxis might fly.

The advancement of commercial flying in New Zealand has necessitated an extension of the activities of the Government Meteorological Office. The number of recording stations has been increased, while reports for the benefit of aircraft are now issued during the day at three-hourly intervals from 7 a.m. onwards. Forecasts for pilots are broadcast over the YA stations at 6.50 a.m., 10 a.m., and 1 p.m. daily. As yet no night flying of a commercial nature has been undertaken, owing to the lack of facilities in the matter of lighting of grounds and of radio-beacon apparatus. At the present time radio contact is maintained by airliners in flight with their termini through Government wireless-telegraph stations controlled by the Post and Telegraph Department.

OVERSEAS SERVICES.

In March, 1937, a Pan-American Airways clipper aircraft made a survey for a trans-Pacific service between San Francisco and Auckland via Honolulu, Kingman Reef, and Pago Pago. The results of this were considered entirely satisfactory, and the company immediately commenced work on preparing the necessary bases at Pago Pago and Auckland. An area of land at Mechanics Bay was leased from the Auckland Harbour Board, and on this offices, waiting-rooms, and a workshop were erected. Pontoons for the embarkation of passengers and the landing of goods and mails were provided, and by December, when the company's radio facilities were operating, all was ready for the commencement of the service. The Pan-American clipper arrived at Auckland on 26th December, 1937, and the service was inaugurated on its return flight to Honolulu, a week later, carrying 353¾ lb. of mail, comprising 3,863 registered and 21,171 unregistered letters. The first southern trip of the clipper, which left Honolulu on 10th January, unfortunately ended in disaster off Samoa on 11th January, 1938; thereupon the service was discontinued until larger and more suitable aircraft were available. A further experimental flight was made during August, 1939, as a preliminary to the inauguration of a regular service.

TASMAN EMPIRE AIRWAYS.

Imperial Airways, Ltd., of London, undertook a survey flight from the United Kingdom to New Zealand during December, 1937, and negotiations between the United Kingdom, Australian, and New Zealand Governments were entered into with a view to providing an organization to control a proposed trans-Tasman air service.

A company, to be known as the “Tasman Empire Airways,” is to be formed and will operate three aircraft of the Short Empire-class flying-boat on the Sydney-Auckland route.

The cost of the initial ground equipment is to be borne by each of the Governments concerned, and the initial share capital of the company is to be taken up in the proportion—United Kingdom, 38 per cent.; Australia, 23 per cent.; and New Zealand, 39 per cent. Of the New Zealand share of the capital, it is proposed that the Government shall hold 20 per cent. and Union Airways of New Zealand, Ltd., 19 per cent. A Government subsidy of £26,000 per annum has been announced.

The necessary buildings at Mechanics Bay, Auckland, which were commenced in December, 1938, have been completed and the moorings and berthing-equipment have been installed. The buildings consist or an administration building, a workshop, an engine-test house, and all subsidiary offices. In addition, a hangar of approximately 15,000 square feet floor-space is to be erected at the R.N.Z.A.F. Depot, Hobsonville, to permit of the service making use of the slipway at the depot for the beaching of aircraft when required.

The first aircraft for the trans-Tasman service;—the “ Aotearoa “—arrived at Auckland on 28th August, 1939, after a twelve days delivery flight from England; the time for the Sydney-Auckland portion of the trip being seven hours twenty minutes.

AERO CLUBS.

Practical interest in aviation was greatly stimulated by the first trans-Tasman flight of Kingsford Smith and Ulm in 1928, and to this flight the aero club movement largely owes its inception. The steady progress made by the movement has been in a great measure due to the scheme initiated by the Government of subsidizing a limited number of light aeroplane clubs. This subsidy (abolished from the 31st March, 1937), took the form of the loan of light aircraft and payments to clubs on account of pupils qualifying for their “A” flying licenses, and for male pilots renewing licenses. Up to the present the clubs have undertaken most of the air-taxi work in New Zealand, and have also provided certain recreational as well as instructional facilities.

The following are the clubs providing flying-training facilities:—

Club.Aerodromes at
AucklandMangere (Auckland).
WaikatoRukuhia (Hamilton).
Rotorua and Bay of PlentyRotorua.
Western Federated (North Island)New Plymouth; Hawera; Wanganui; Stratford.
Hawke's Bay and East CoastHastings; Napier; Gisborne; Waipukurau.
Middle DistrictsMilson (Palmerston North); Feilding.
Wairarapa and RuahineMasterton; Dannevirke.
Wellington..
Marl boroughRongotai (Wellington).
..Blenheim; Nelson; Motueka.
CanterburyRoyal New Zealand Air Force Aerodrome,
..Wigram (Christchurch); Ashburton.
OtagoMosgiel (Dunedin).
SouthlandInvercargill.
West Coast (South Island) UnitedHokitika; Greymouth; Westport.

Statistics indicating the activities of the various clubs are given in the following table:—

Club.Founded.Total Hours flown to 31st March, 1939.Licenses secured to 30th June, 1939.
“A.”“B.”
Auckland1,92821,58322114
Waikato1,9371,202141
Rotorua and Bay of Plenty1,9381321..
Western Federated1,93011,1331446
Hawke's Bay and East Coast1,9299,2151064
Middle Districts1,9365,704802
Wairarapa and Ruahine1,9306,502993
Wellington1,93012,01013910
Marlborough1,9285,1871045
Canterbury1,93014,68917814
Otago1,9308,8031246
Southland1,9306,9021015
West Coast United1,9352,557301
Totals..105,6191,34171

In addition, from the inception of the aero-club movement to 31st March, 1939, the clubs had carried a total of 55,879 passengers, made 34,271 trips on joyriding or charter flights, and flown altogether nearly 8,000,000 miles.

The extent of a single year's operations in air-taxi work by aero clubs is given in the table below, the figures being for the year ended 31st March, 1939:—

Club.Aircraft.Number of Trips.Passengers.Hours flown.Miles flown.
Auckland61,4162,70842239,881
Waikato497166302,675
Rotorua and Bay of Plenty1........
Te Kuiti1........
Western Federated9........
Hawke's Bay and East Coast36962332,648
Middle Districts35412960
Wairarapa and Ruahine35353131,015
Wellington97791,74126925,771
Marlborough4248492678,157
Canterbury85371,15515617,624
Otago6666775917,251
Southland488103584,875
West Coast United144160
    Totals623,9627,2631,152110,917

A more general idea of the activities of the light - aeroplane clubs can be obtained from the following table, the results being for the year ended 31st March, 1939:—

Clubs.Membership.Aircraft in Use.Under Instruction.Hours flown.Licenses current, 31st March, 1939.
Associate.Flying.Dual.Solo.Dual.Solo.Private.Commercial.
Auckland39311863549022,080745
Waikato190584227195676272
Rotorua..53123112210....
Te Kuiti5031......1362..
Western Federated5181531063236301,72367..
Hawke's Bay and East Coast1834147231980932..
Middle Districts1858332384571,201502
Wairarapa and Ruahine27747327298699371
Wellington319107953..1,0311,595531
Marlborough14144489216537252
Canterbury94110819107821,684783
Otago9450655619999391
Southland11254497374750371
West Coast United18327266268544141
    Totals2,74294865275896,21313,44353519
 3,690 36419,656554

Between 1929 and 31st March, 1937, an annual subsidy was paid to eleven approved aero clubs in respect of male pilots between certain defined age-limits who had been trained ab initio to “A” license standard. In addition, in the three years preceding 31st March, 1937, a subsidy was also paid on male pilots under thirty-five years of age who renewed their licenses.

Civil Reserve scheme, by which the Government entered into an agreement with approved clubs for the training of civil reservists and Air Force candidates. In the year ending 31st March, 1939, the clubs trained between them one hundred civil reservists and forty-four Air Force trainees.

During the year £15,985 was advanced, free of interest, to clubs desiring to purchase new machines, twelve aircraft being obtained under this scheme.

The stated expenditure on civil aviation for each of the last seven years is as follows:—

 £ £
1932-334,2431936-3721,802
1933-341,8131937-3835,490
1934-3511,3161938-3946,057
1935-3613,171....

LICENSES.

The licenses and certificates current at 31st March, 1939, were as follows:—

Pilots “A” licenses588
Pilots “B” licenses86
Aircraft Navigators' licenses4
Ground Engineers' licenses76
Aerodrome licenses59
Certificates of Registration (aircraft)107
Certificates of Airworthiness (aircraft)78

CIVIL AIRCRAFT.

In addition to the aircraft of the aero clubs and commercial companies there are a number of privately-owned planes in the Dominion. The following are the numbers of each type registered on 31st March, 1939:—

Commercial planes24
Aero club planes63
Privately-owned planes17
Experimental planes3
..107

The following is an analysis, according to types, of the aircraft entered in the Dominion register as at 31st March. 1939:—

D.H. 6025Miles Hawk4
* Aircraft of American manufacture, 14.
D.H. 80A4Miles Magister2
D.H. 8218Monospar S.T. 252
D.H. 833* Porterfield1
D.H. 842* Rearwin2
D.H. 863Spartan2
D.H. 895Vega Gull1
D.H. 902Percival Gull1
Avro Avian2* Waco3
* Beechcraft C 17L1Whitney Straight4
B.A. Swallow2Wicko1
* Cub3Pou-de-ciel3
Desoutter1Miscellaneous5
Fleet....1
* Lockheed Electra4..107

Of the above total of 107 aircraft, 89 are single-engined machines, 15 are twin-engined, and 3 are fitted with four engines.

AIR FATALITIES.

During the twelve months ended 31st March, 1939, three fatalities occurred as a result of aeroplane mishaps. For the last nine years such accidents have been responsible for a total of thirty-nine deaths, practically all of which occurred in club and private machines.

AIR MAILS.

The history of air-mail service in New Zealand dates back to 1920 and 1921, when several experimental services were operated, principally between Auckland and the North, and between Christchurch and Timaru. These services were not used to a payable extent, however, and were abandoned. Towards the end of 1930 tenders were invited for the conveyance of mail by air once daily each way between Auckland, Wellington, Christchurch, and Dunedin, but none of the tenders received complied with the conditions. The next attempt to establish a service was during 1931-32, when a number of special air-mail flights were carried out by arrangement with the New Zealand Air-mail League, the first for over a decade if occasions of national emergency be disregarded.

It was not, however, until the inauguration of a service between Hokitika and South Westland in January. 1934, that an air-mail service of any permanency was established. The district served in this instance is one which possesses very poor transport facilities; and, though the population is sparse and the area small, the carriage of mails by air has great advantages over a land service. It is for this reason that no surcharge is made on the mail-matter carried by this service, and the sparse population accounts for the small quantity of mail carried—the figures for which are shown in the operations of Air Travel (N.Z.), Ltd. (see page 353.)

On the 16th March, 1936, the first regular air-mail services linking up large centres of population were established between Palmerston North and Dunedin and between Nelson, Blenheim, and Wellington. The rate of postage for inland air-mail correspondence was fixed at 2d. per ounce, an increase of 1d. per ounce on the ordinary letter rate.

A parcels-post service was commenced on the 25th May, 1936, the rates current in September, 1939, being as under:—

 s.d.
Not over 3 lb.21
Over 3 lb. but not over 7 lb.38
Over 7 lb. but not over 14 lb.53
Over 14 1b. but not over 21 lb.84
Over 21 lb. but not over 28 lb.106

Particulars of the number of letters and parcels carried by air in New Zealand since the regular air services were inaugurated are shown hereunder:—

Quarter ended—Letters.Parcels.
30th June, 1936179,073281
30th September, 1936215,2021,195
31st December, 1936256,5591,657
31st March, 1937283,8071,093
30th June, 1937325,5841,303
30th September, 1937381,0192,121
31st December, 1937466,8132,881
31st March, 1938515,2252,035
30th June, 1938508,6252,644
30th September, 1938558,6423,433
31st December, 1938649,4374,687
31st. March. 1939665,7232,842

In addition to the air-mail services established in March, 1936, the despatch of air mails between Napier and Gisborne commenced on the 7th December, 1936; between Nelson and Greymouth on the 23rd February, 1937; between Auckland, New Plymouth, Palmerston North, and Wellington on the 27th June, 1937; between Palmerston North and Gisborne on the 30th October, 1937; and between Auckland and Gisborne on 20th March, 1939.

Particulars of the air-mail services at present in operation in New Zealand are shown hereunder:—

Hokitika - South Westland (Bruce Bay - Haast — Okuru)—

Distance145 miles.
EstablishedJanuary, 1934.
FrequencyWeekly.

Nelson-Blenheim-Wellington—

DistanceNelson-Blenheim, 55 miles; Blenheim-Wellington, 45 miles.
Established16th March, 1936.
FrequencyBetween Nelson and Wellington, twice daily; between Blenheim and Wellington, four times daily.

Palmerston North - Blenheim - Christchurch—

DistancePalmerston North - Blenheim, 125 miles; Blenheim-Christchurch, 175 miles.
Established16th March, 1936.
FrequencyDaily.

Palmerston North - Napier - Gisborne—

DistancePalmerston North-Napier, 90 miles; Napier-Gisborne, 85 miles.
Established7th December, 1936 (Napier-Gisborne). Extended to Palmerston North, 30th October, 1937.
FrequencyDaily.

Nelson-Westport-Greymouth-Hokitika—

DistanceNelson-Greymouth, 223 miles.
Established23rd February, 1937. (Extended to include Westport, 16th April, 1939.)
FrequencyDaily.

Wellington - Palmerston North - New Plymouth — Auckland.—

DistanceWellington - Palmerston North, 90 miles; Palmerston North - New Plymouth, 120 miles; New Plymouth - Auckland, 145 miles.
Established27th June, 1937.
FrequencyTwice daily.

Wellington-Christchurch-Dunedin—

DistanceWellington-Christchurch, 195 miles; Christchurch-Dunedin, 200 miles.
Established22nd October, 1938.
FrequencyDaily.

Auckland-Tauranga-Opotiki-Gisborne—

DistanceAuckland-Tauranga, 90 miles; Tauranga - Opotiki, 65 miles; Opotiki-Gisborne, 60 miles.
Established20th March. 1939.
FrequencyThrice weekly.

Although mails have been carried by air across the Tasman on the occasions of special flights, and one mail was despatched by air across the Pacific via Pago Pago and Honolulu to the United States of America, permanent facilities have not yet been established for the despatch of mails by air from New Zealand. It is expected, however, that a twice-weekly air service between New Zealand and Australia will shortly be in operation as an extension of the England-Australia service.

From July, 1938, to September, 1939, all New Zealand letters and post-cards for Egypt and for all Empire countries served wholly or partly by the Empire air services between Australia and South Africa and Great Britain were conveyed by air from Sydney at a rate of lid. for each half-ounce for letters and 1d. for post-cards. Special air rates on letters for foreign countries, however, continued to be charged. The mails were conveyed to Australia by sea to connect with the Empire air service at Sydney. The minimum transit time between New Zealand and Great Britain is twelve days, three days for the sea connection and nine days for the conveyance by air from Sydney to London; but the average transit time for the whole journey is approximately fifteen days as against twenty-eight to thirty days by surface transport. When the Empire service is extended across the Tasman Sea to New Zealand, the transit time will be further reduced to approximately ten days.

Owing to the outbreak of war, the practice of conveying all letters to Empire countries by air was suspended early in September, 1939, and a special air rate of 1s. 6d. for each half-ounce is now charged.

Chapter 16. SECTION XVI.—POSTAL AND TELEGRAPHIC.

POSTAL BUSINESS.

AT the 31st March, 1939, there were 1,705 post-offices in New Zealand, and at the same date there were 2,568 street letter-boxes in the Dominion.

The following table shows the estimated numbers of articles posted and delivered during each of the last five years:—

Year.Letters and Letter-cards.Post-cards.Accounts, Circulars, Packets, &c.Newspapers.Parcels.
1934275,063,9437,499,491167,320,61533,485,8323,460,719
1935288,645,4848,328,714191,066,26234,547,4943,538,725
1936292,098,7617,665,003194,266,08833,341,0596,726,337
1937302,170,0277,914,897194,510,74734,072,2799,019,849
1938316,309,3419,512,779229,041,30644,123,5359,695,292

The very large increase in the number of parcels since 1935 is partly due to a change in postal practice during 1936. Certain types of articles previously classed as packets are now classed as parcels.

Articles which are both posted and delivered in New Zealand represent, of course, the great bulk of the business, and such articles are necessarily counted twice in the foregoing table. Separate figures of articles posted and delivered during the year 1938 are as follows:—

 PostedDelivered.
Letters and letter-cards157,468,748158,840,593
Post-cards4,098,9765,413,803
Accounts, circulars, packets, &c.111,143,378117,897,928
Newspapers19,704,82824,418,707
Parcels4,828,9754,866,317

These figures include registered articles, of which 2,594,199 were posted in the Dominion and 2,641,514 were delivered therein.

The average numbers of letters, &c., posted in the Dominion per head of mean population (including Maoris) during each of the last five years were:—

Year.Letters and Letter-cards.Post-cards.Accounts, Circulars, Packets, &c., and Parcels.Newspapers.Totals.
193485.412.1656.889.48153.93
193586.462.2761.579.52159.82
193690.052.1664.089.77166.06
193792.862.1460.179.01164.18
193898.012.5572.1812.27185.01

RURAL MAIL DELIVERY.

The rural-mail-delivery system was instituted in the Dominion about 1900, but due to the high comparative cost little progress was made with it until 1922. As from the 1st January of that year a scheme was introduced whereby a nominal fee is charged for this service; the rates are 10s. per annum for a delivery thrice weekly or less frequently, or £1 for a delivery having a greater frequency. These charges do not bear heavily on the farmer, and they enable the Post Office to extend rural-mail-delivery benefits to districts which were previously without such amenities. Every comparatively well-settled district now has its network of deliveries. The rural-mail carrier delivers and collects correspondence and parcels at or near the gates of farmers, and sells postage-stamps and obtains, as required, money-orders and postal notes.

It is an indication of the popularity of the system that, whereas there were 8,700 rural boxholders in 1920, there were 30,900 on the 31st March, 1939.

AIR-MAIL SERVICE.

Details of the New Zealand air-mail service are given on pages 360-362 of this Year-Book.

OVERSEAS PARCEL-POST.

The facilities afforded for the transmission of parcels through the Post Office to places within and beyond the Dominion have proved of much convenience to the public. The regulations admit of parcels up to 22 lb. in weight being sent to Great Britain and Northern Ireland, Fiji, French Settlements of Oceania, Egypt, Hong Kong, Jamaica, Tonga, and certain Empire countries, and of parcels up to 11 lb. in weight being sent to all other countries of the world. Inland parcels may weigh up to 28 lb.

Year.Overseas Parcels received.Overseas Parcels despatched.
Number.Weight.Declared Value.Customs Duty.Number.Weight.
  lb.££ lb.
1934154,0921,023,133593,714116,83541,498162,777
1935160,1461,052,921625,735121,64140,056160,584
1936176,7721,148,108726,691142,65943,008173,646
1937197,1361,328,004912,774184,68345,600189,801
1938209,6671,407,794969,487223,32950,162197,687

The figures show a great preponderance of inward parcels. Of the parcels received from overseas in 1938 no fewer than 84,697 came from Great Britain (including those from foreign countries via Britain), while 38,995 came from the United States and 56,481 from Australia and foreign countries via Australia. These countries, to which 14,945, 3,664, and 22,913 parcels respectively were despatched, also ranked highest among countries to which parcels were sent from New Zealand.

NEWSPAPERS.

There are (June, 1939) 285 publications on the Post Office Register of Newspapers. Of these, some 52 are published daily, 14 being morning papers and 38 evening papers. Seventeen appear three times per week, 16 twice per week, 63 weekly, 10 fortnightly, 122 monthly, and 5 at irregular intervals.

MONEY-ORDERS.

Of the total money-orders issued in New Zealand during 1938, some 116,704, representing an aggregate value of £301,049, were for payment overseas. Of that amount, £102,005 was payable in the United Kingdom, £184,508 in other Empire countries, and £14,536 in foreign countries. Money-orders issued overseas for payment in New Zealand in 1938 numbered 37,232, the total value represented being £137,899. Some £55,577 of this amount was issued in the United Kingdom, £76,166 in other Empire countries, and £6,156 in foreign countries.

Calendar Year.Number of Offices at end of Year.Money-orders issued.Money-orders paid.
Number.Value.Commission.Number.Value.
   ££ £
1934873654,6213,209,71342,310598,3163,157,703
1935894673,0573,374,02944,029615,8903,301,377
1936909733,9663,794,64848,433672,2913,688,679
1937923784,4954,312,62954,333715,5554,180,205
1938934848,0504,802,29360,441770,1994,633,547

POSTAL NOTES.

The popularity of the postal-note system for remitting small amounts is clearly illustrated in the table given below:—

Year ended 31st March,Number of Offices at end of Year.Postal Notes issued.Postal Notes paid.
Number.Value.Commission.Number.Value.
   ££ £
1,9351,1013,325,5611,140,69529,0773,301,0491,105,793
1,9361,1183,827,4171,293,95533,1463,811,1811,257,622
1,9371,1273,833,2881,378,38734,3263,824,4061,340,628
1,9381,1493,746,5601,454,79335,2583,776,7121,435,907
1,9391,1493,835,4001,485,42635,9383,825,6811,446,344

British postal orders issued in the Dominion during the year ended 31st March, 1939, numbered 97,620, of a value of £46,109. Those paid numbered 28,719, and represented £13,986 in value.

TELEGRAPH AND TOLL SERVICES.

Up to the 31st March, 1939, a total sum of £11,048,777 had been expended on telegraph construction, including the construction of telephone exchanges. The amount expended during the financial year 1938-39 was £575,944.

There were 11,994 miles of telegraph and toll pole line in existence at the end of March, 1939, carrying 67,590 miles of wire.

During the year ended 31st March, 1939, the revenue from telegrams and toll communications was £1,037,217, to which should be added £1,557,327 revenue of telephone exchanges and £59,532 miscellaneous receipts, making a total telegraph and telephone revenue of £2,654,076.

Year ended 31st March,Number of Telegrams and Toll Messages forwarded during the Year.Revenue (Including Miscellaneous Receipts).Value of Government Messages.*Total Value of Business done during the Year.
Paid.Free* Government.Total.Telegraph and Toll.Telephone Exchange.
* Urgent marine telegrams: no payment received.
    ££££
193514,038,55631,45714,070,013767,9401,190,7732,6671,961,380
193616,002,06431,06716,033,131830,5151,252,9642,1912,085,670
193718,260,66930,26318,290,932918,2721,338,9581,7832,259,013
193819,933,84429,86619,963,7101,021,8941,458,0421,7222,481,658
193921,279,08527,92321,307,0081,096,7491,557,3271,5602,655,636

As from 1st October, 1939, the charge for ordinary telegrams is 8d. for six words or less, and 1d. for each additional word. The charge for letter-telegrams is a flat rate of 1s. 2d. for twenty-four words, and 1d. for each additional two words. An additional charge of 8d. is made for an urgent telegram, irrespective of the number of words contained in the message; these charges represent an increase of 2d. per message above the rates ruling prior to 1st October. (Letter-telegrams are delivered by post on the morning following the day of lodgment.)

TELEPHONE-EXCHANGE SERVICE.

Telephone facilities are extensively utilized in New Zealand. According to data compiled by the Chief Statistician of the American Telephone and Telegraph Co. as for the 1st January, 1938, New Zealand ranks second in number of telephones per 100 of population. Leading countries in this respect are: United States of America, 15.09; New Zealand, 11.97 (12.69 in 1939); Canada, 11.90; Sweden, 11.75; Denmark, 11.25; Switzerland, 10.26; Australia, 8.71; Norway, 7.61; United Kingdom, 6.41; Germany, 5.31; Belgium, 4.70; Netherlands, 4.65; Finland, 4.48; France, 3.70.

At the 31st March, 1939, there were 348 telephone exchanges in the Dominion. Of this number, 329 are of the magneto type, 2 common battery, and 17 automatic. The automatic exchanges are: Whangarei, Auckland, Hamilton, Hastings, Dannevirke, Stratford, Hawera, Wanganui, Marton, Palmerston North, Masterton, Lower Hutt, Wellington, Blenheim, Christchurch, Oamaru, and Dunedin.

The following statement shows the automatic-exchange equipment installed and in use in the Dominion on the 31st March, 1939:—

 Capacity of Equipment installed.Equipment in use.
 No.No.
Individual lines75,80273,862
Party-lines—  
  Two-party4,4003,839
  Four-party2,0001,673
  Multi-party550253
Individual-line stations66,114
Party-line stations15,472
Total of main stations81,586
Extension stations33,616
Total number of automatic-telephone stations connected115,202

The following table indicates the growth of the New Zealand telephone-exchange service:—

1929.1932.1933.1934.1935.1936.1937.1938.1939.
* Represents separate instruments (excluding private stations) connected to main telephone system.
Exchanges351349349349349348348349348
Subscribers, main stations120,274125,826120,511119,089121,841127,056135,853145,370155,038
Toll and service stations3,9453,9643,9824,0294,1074,1464,3134,5074,570
Public call offices6127457507877968709171,0211,103
Extension stations23,10526,43726,51427,17828,66330,59833,83837,68042,001
Telephone-station totals*147,036156,972151,757151,683155,407162,670171,921188,587202,712

The total number of telephone-stations shows an increase of 54,776 or 37 per cent., during the period covered by the table. The increase in subscribers' main stations during the same period amounted to 34,764, or about 28 per cent., while extension stations show an increase of 18,896, or over 72 per cent. The demand for public call offices is clearly revealed in the table, these showing an increase from 612 in 1929, to 1,103 in 1939. The increase in the number of telephone-stations during the last two years was accelerated to a remarkable extent, 1937-38 showing a net gain of 13,666 and 1938-39 a net gain of 14,125.

In addition to the above, there are 3,504 stations connected by private telephone-lines with departmental toll-stations, making a grand total of 206,216 telephone-stations in New Zealand on the 31st March, 1939.

The “party” line system of telephone service is extensively used, particularly by those whose premises are situated at a distance from an exchange. In March, 1939, the number of party-line connections was 14,827, with a total of 57,497 stations.

The first public call offices (coin-in-the-slot telephones) erected in the Dominion were installed at Wellington in August, 1910. Of the total of 1,103 such instruments in use in the Dominion at the 31st March, 1939, the charge in 1,054 cases is 1d.; in six, 2d.; and in forty-three, 3d. The revenue of these slot telephones during the year ended 31st March, 1939, was £60,823.

The telephone-exchange system included on the 31st March, 1939, 16,765 miles of pole line and 600,410 miles of wire.

The capital expenditure on the equipment, &c., of the telephone exchanges up to the 31st March, 1939, was £9,326,324, equal to an average cost of £46 0s. 2d. for each connection.

RADIO COMMUNICATION.

GOVERNMENT STATIONS.

The first wireless-telegraph station in New Zealand for communicating with ships at sea was opened at Wellington on the 26th July, 1911.

There are now thirty stations under the control of the New Zealand Government, the principal being those at Awarua, Wellington, and Auckland on the New Zealand mainland, at Apia in Western Samoa, at Rarotonga in the Cook Islands, and at the Chatham Islands. Smaller stations on the mainland or on adjacent islands are those at The Brothers, Cuvier Island, Great Mercury Island, Jackson's Bay, Kermadec Islands, Milford Sound, Mokohinau, Stephen's Island, Puysegur Point, and Portland Island, while there are radio-beacon stations at the lighthouses at Cape Maria van Diemen, Portland Island, Stephen's Island, Baring Head, Cape Campbell, and Tiritiri Island.

Communication is effected with outer islands in the Cook Group by Rarotonga-Radio through small feeder-stations at Aitutaki, Atiu, Mangaia, Manihiki, Mauke, Penrhyn, and Pukapuka. Small stations at Aleipata, Atafu, Fagamalo, Fakaofo, Nukunono, Salailua, and Tuasivi communicate with Apia-Radio, while Niue communicates with both Apia-Radio and Wellington-Radio.

By means of the radio-stations at Wellington, Apia, Rarotonga, and Niue, communication is maintained between New Zealand and the Pacific islands, the last three stations mentioned having direct communication with New Zealand. Wellington-Radio has also direct communication with Papeete-Radio (Tahiti) and Nukualofa (Tonga).

The radio business transacted by the New Zealand coast stations during the last five years was as follows:—

Year ended 31st March,Forwarded.Received.
Messages.Words.Value.*Messages.Words.Value.*
* Amount collected by New Zealand.
   £  £
1,9359,688129,2343,87416,485189,6073,885
1,93611,332149,6864,34518,703219,9793,996
1,93714,352191,2745,30823,691293,1524,938
1,93814,557199,7255,51524,855321,4995,012
1,93914,749201,9015,59127,440363,4525,111

The foregoing table does not include free (service) messages.

The charges for radio-telegrams to ships at sea are as under:—

  1. To the “ Maori,” “ Rangatira,” and “ Wahine,” while engaged in the Wellington-Lyttelton steamer-express service, and the ” Tamahine ” while engaged in the Wellington-Picton service, as well as the ” Matai ” while voyaging between New Zealand ports or between New-Zealand-controlled lighthouses or depots: 2d. a word, minimum 1s.

  2. To His Majesty's warships within wireless range of a New Zealand coast station: 3d. a word.

  3. To the “Aorangi,” “ Niagara,” and “ Wanganella,” and to all vessels registered in New Zealand other than the “Rangatira” and “Tamahine”: 4d. a word.

  4. To the majority of vessels registered in Australia when communicated with through New Zealand coast radio-stations: 6d. a word.

  5. To most other vessels: 8d. and 11d. a word.

In addition to the above rates, a further charge of 2d. per radio-telegram became operative as from 1st October, 1939.

Ship stations registered in New Zealand numbered seventy-six at 31st March, 1939.

In November, 1930, a public radio-telephone service was inaugurated between New Zealand and Australia, the terminal stations being at Wellington and Sydney respectively. In July, 1931, this service was extended to the United Kingdom and part of Europe, and at the present time almost the whole of the European countries are available to New Zealand telephone users. Typical charges, with a minimum charge for three minutes, are as follows:—

Destination.Charge per Minute.
 £s.d.
Australia0100
Great Britain and Northern Ireland1100
Ireland (Eire)1110
Belgium1120
Italy1160

Similar facilities are available between New Zealand and the trans-Tasman passenger steamer “Awatea,” the charge for which is 3s. 4d. per minute, with a minimum charge of 10s.

AERONAUTICAL RADIO SERVICE: “ AERADIO" STATIONS.

In January, 1936, coincident with the inauguration of commercial air lines in New Zealand, the Government found it necessary to provide aeradio facilities at the principal airports then in use. The rapid development of these services has called for additional aeradio stations, and such stations are now in regular use at the following centres:—

Mangere, New Plymouth, Palmerston North, Tauranga, Gisborne, Napier, Wellington, Blenheim, Nelson, Grey mouth, Westport, Hokitika, Christchurch, Taieri, and Jackson's Bay.

By means of these aeradio stations commercial aircraft are in continuous radio communication with one or more ground stations during flight, and are able to obtain the latest weather information and necessary landing instructions. In addition, meteorological and service-operational messages are handled between the various ground stations. Direction-finding and radio-landing aids are being installed.

An aeradio station for use in connection with trans-ocean air services is in the course of erection near Buckland's Beach, Auckland. The station is to be known as the Musick Memorial Radio Station, in memory of the late Captain Edwin Musick and crew of the Pan-American Airways “Samoan Clipper,” which met with disaster while pioneering the America-New Zealand air route.

PRIVATE STATIONS.

Private radio-stations are governed by the Radio Regulations which were gazetted on the 21st July, 1932.

The licenses for radio receiving-stations (i.e., ordinary radio licenses) are designed to provide for experimental reception as well as for reception from radio-telephone broadcasting stations, and may be obtained at any postal money-order office on payment of the prescribed fee. Further reference to these licenses will be found in Section XLIV dealing with radio broadcasting.

The licenses for private experimental (amateur) stations are intended to provide facilities for experimental transmission to those interested in radio science, and are issued subject to the qualifications of the applicants being satisfactory.

The licenses for private experimental (research) stations are intended to provide facilities for the work of pure research in radio science, and are issued only to persons of recognized attainment in the theory or practice of radio-telegraphy, or to universities or other scientific institutions engaged in conducting experiments for the development of the science of radio-telegraphy.

The part of the regulations relating to “Radio-dealers” is intended to provide for the proper control of the sale of apparatus designed and intended for use in connection with wireless telegraphy.

OCEAN CABLES.

Telegraph communication between New Zealand and Australia was first established by means of the Eastern Extension Telegraph Company's cable from Wakapuaka in 1876. This cable was duplicated in 1890.

The Pacific cable, opened for traffic between New Zealand and Australia and Fiji on the 9th April, 1902, was completed to Bamfield, Vancouver Island, on the 31st October following, and opened for international business on the 8th December, 1902.

The route is from Auckland to Vancouver, via Norfolk Island, Fiji, and Fanning Island. The Australian connection is at Norfolk Island. The deep-sea portion of the Vancouver - Fanning Island cable is stated to be the longest in the world.

Direct communication between Auckland and Sydney was established on the 31st December, 1912, thus giving the Pacific Cable Board an alternative route to Australia.

Additional facilities were provided between New Zealand and Fiji by the laying, by the Pacific Cable Board, of a new cable between Auckland and Suva. The work was completed on the 12th August, 1923. The duplication of the two northern sections—Vancouver to Fanning Island and Fanning Island to Fiji—was completed on the 20th November, 1926. These new sections were opened for traffic on the 18th December, 1926.

The Pacific Cable Board and the Eastern Extension, Australasia, and China Telegraph Co., Ltd., previously controlling the two cable systems connecting New Zealand with overseas countries were, together with certain cable and wireless services in existence in other British countries, in 1929 absorbed in a merger company now known as Cable and Wireless, Ltd. As a result, the Eastern Co.'s station at Wellington, the New Zealand terminal of the “ Eastern” cable, was closed on the 31st May, 1932, from which date all cable traffic to and from New Zealand has been handled by the Pacific cable office at Auckland, where the Pacific cable terminates. One of the two “ Eastern “ cables previously in use between Wellington and Sydney has been diverted to Auckland, while a portion of the second cable—extending from Wellington to a point a considerable distance out to sea—has been picked up.

The length of submarine cable in use in connection with the inland telegraph and telephone services is 388 nautical miles, containing 2,721 nautical miles of conductors.

RECEIPTS AND PAYMENTS.

The receipts and payments of the Post and Telegraph Department for the last two financial years are shown in the following table:—

RECEIPTS.1937-38.1938-39.
 ££
Postages1,274,8341,420,545
Money-order and postal-note commission78,67592,488
Private-box and bag rents and rural delivery fees58,05058,755
Miscellaneous receipts464,931521,231
Paid telegrams329,905341,487
Paid tolls637,807695,731
Telephone exchanges1,458,0421,557,327
    Totals£4,302,244£4,687,564
PAYMENTS.££
Salaries2,152,6182,322,762
Conveyance of mails by sea and air101,206123,894
Conveyance of inland mails137,977150,691
Conveyance of mails by railway99,331105,193
Maintenance of telegraph and telephone lines160,792248,436
Depreciation Fund143,978255,189
Motor services and workshops100,299118,196
Miscellaneous495,229562,094
Interest on capital liability590,000588,000
Sick-benefit Fund6,1046,310
Maintenance of Post and Telegraph buildings58,22848,593
    Totals£4,045,762£4,529,358

The year 1938-39 commenced with a credit balance of £42,405. Of the gross balance of £200,610 at the end of the year, £160,000 was invested and £40,610 carried forward.

Receipts and payments for the last ten years are shown by the following figures:—

Year ended 31st March,Receipts.Payments.Year ended 31st March,Receipts.Payments
 ££ ££
19303,641,6203,111,1991,9353,342,9782,844,554
19313,707,4203,304,6481,9363,550,3363,141,884
19323,715,2292,794,5651,9373,886,0983,622,425
19333,293,9322,688,1191,9384,302,2444,045,762
19343,200,4142,648,6001,9394,687,5644,529,358

VOLUME OF BUSINESS.

The total value of all transactions of the Department during 1938-39 amounted to approximately £286,000,000. An indication of the volume of business handled during recent years may be obtained from a comparison of the value of transactions as follows:—

 £ £
1933-34165,000,0001936-37236,000,000
1934-35205,000,0001937-38295,000,000
1935-36220,000,0001938-39286,000,000

STAFF.

The large volume and multifarious nature of the business of the Post and Telegraph Department entail the employment of a large staff. The Department is administered by the Postmaster-General and Minister of Telegraphs, with the Director-General as executive head.

The staff at 31st March, 1939, was as follows: Permanent, 11,391; temporary, 820: total, 12,211. In addition there were 1,603 country postmasters and telephonists who acted as such in conjunction with other pursuits and did not rank as officers of the Department. There were also 88 officers of the Railways Department who acted as postmasters.

Chapter 17. SECTION XVII.—LAND TENURE, SETTLEMENT, ETC.

SUBSECTION A.—GENERAL.

OCCUPATION OF LAND.

The total area of the Dominion, excluding the Cook and other Pacific islands annexed in 1901, but inclusive of the Kermadec Islands and the “outlying islands,” since these form parts of land districts, is 66,390,196 acres. Of this total, 42,901,272 acres were returned in 1939 as being in occupation, including reserves and Native lands leased, but excluding areas within borough boundaries, holdings of less than 1 acre in extent, and Native land held on the communal system.

According to information published by the Lands Department, the following is the condition of the land in the Dominion as at the 31st March of the years 1938 and 1939.

 1938.1939.
* Includes Interests acquired by the Crown but not proclaimed.
 Acres.Acres.
Total area sold or granted and held on freehold21,863,16121,911,380
Total area reserved for public purposes15,803,56015,897,883
Total area of Crown lands leased under all tenures (exclusive of reserves leased by the Crown)17,337,45516,755,074
Total area of Crown land available for future disposal1,629,4122,086,475
Total area of Native land4,545,449*4,544,631*
Land unfit for settlement, including rivers, lakes, roads, &c.5,211,1595,194,753
Totals66,390,19666,390,196

The number of holdings and percentages of total holdings in occupation, grouped according to size, as returned in the years specified, are given below:—

Area, In Acres.Number of Holdings.Percentages of Total.
1935.1936.1937.1938.1939.1935.1936.1937.1938.1939.
1 and under 1011,01410,90011,02411,06711,20412.9812.8912.8912.9213.03
10 and under 5014,73914,56314,75514,79014,74517.3717.2217.2617.2617.15
50 and under 10012,15712,17912,51612,51112,57414.3314.4114.6414.6114.63
100 and under 20016,06916,04916,23216,32316,43618.9318.9818.9919.0519.12
200 and under 3209,5339,5429,6209,6259,75311.2311.2911.2511.2411.34
320 and under 64010,20910,16710,20410,27510,21712.0312.0311.9311.9911.88
640 and under 1,0004,1514,1624,1754,1754,1384.894.924.884.874.81
1,000 and under 5,0005,9415,9355,9095,8635,8707.007.026.916.846.83
5,000 and under 10,0005555515535505490.650.650.650.640.64
10,000 and under 20,0002942952882942890.350.350.360.340.34
20,000 and under 50,0001481461481431430.170.170.170.170.17
50,000 and over57585858550.070.070.070.070.06
    Totals84,86784,54785,48285,67485,973100.00100.00100.00100.00100.00

Although approximately 45 per cent. of holdings are less than 100 acres in extent, the total area of such holdings represents only a little over 3 per cent. of the occupied land of the Dominion. A further 19 per cent. of the holdings range between 100 and 200 acres, but the aggregate area of these amounts to slightly less than 5½ per cent. of the total. At the other end of the scale it is found that 67 per cent. of the occupied land is held in areas of 1,000 acres and upwards, although the number of such holdings is only 8 per cent. of the total. Holdings of 5,000 acres and upwards, of which there were 1,036 in 1939, account for over 40 per cent. of the total area of occupied land.

Sizes of Holdings, in Acres.1935.1936.1937.1938.1939.
 Acres.Acres.Acres.Acres.Acres.
1 and under 1051,16250,66651,23851,47352,189
10 and under 50372,315370,449374,767375,499375,496
50 and under 100878,596880,972905,258906,369911,776
100 and under 2002,247,6602,245,9622,269,6632,282,4462,299,171
200 and under 3202,387,0452,388,6972,410,0762,409,3682,440,344
320 and under 6404,620,6744,612,4344,619,1484,648,4424,618,504
640 and under 1,0003,300,4993,306,0863,315,0203,322,3433,300,144
1,000 and under 5,00011,592,07711,533,34911,509,79611,463,37911,536,861
5,000 and under 10,0003,805,6693,779,1283,786,1803,768,0033,778,559
10,000 and under 20,0004,110,3624,211,4344,039,8474,253,1304,050,823
20,000 and under 50,0004,549,7254,559,7234,543,6964,424,1454,443,905
50,000 and over5,188,7755,343,1935,375,2045,256,0925,093,500
  Totals43,104,55943,282,09343,199,89343,160,68942,901,272

CLASSIFIED HOLDINGS.

The following table gives for the last five years available (no further classifications having been made) the number of holdings in the Dominion classified according to the purpose for which they were used. Figures exclude borough holdings and holdings under 1 acre in extent.

Class of Holding.Area, 1929-30. (Latest available.)Number of Holdings.
1931-32.1932-33.1933-34.1934-35.1935-36.
 Acres.Per Cent.     
Dairy-farming3,484,6468.0438,39538,54542,57941,89840,067
Sheep-farming29,673,22668.4215,86114,73114,49816,57215,589
Mixed agricultural and sheep-farming1,992,0234.594,4115,2404,9504,2965,479
Mixed dairying and sheep-farming2,801,1626.467,4207,3416,8365,9387,017
General mixed farming421,4310.974,0273,9883,3362,9634,274
Fruitgrowing37,2790.081,3311,4401,4411,4111,375
Market-gardening10,8590.031,0791,020970906957
Poultry-farming2,8940.01217269250276287
Nurseries and seed-gardens1,364..7278587180
Timber-growing322,3160.741239598121131
Flax-growing45,9760.114136322825
Idle and unused1,898,7154.383,0092,7593,0592,9372,950
Other and unspecified2,676,7626.176,9828,2386,2617,4506,316
    Totals43,368,653100.0082,96883,78084,36884,86784,547

TENURE OF OCCUPIED LANDS.

The area of land in occupation as at 31st January in each of the specified years, classified according to tenure, is given in the following table. Freehold land includes land held on deferred payment, if occupied by the owner.

Land District.1938.1939.
Freehold.Leasehold.Total Area Occupied.Freehold.Leasehold.Total Area Occupied.
 Acres.Acres.Acres.Acres.Acres.Acres.
North Auckland2,374,072673,1133,047,1852,393,502651,4263,044,928
Auckland3,518,2651,101,0484,619,3133,570,8811,098,1444,669,025
Gisborne1,026,764950,4591,977,2231,127,251840,5081,967,759
Hawke's Bay1,770,546955,8192,726,3651,768,199958,0732,726,272
Taranaki836,916549,5191,386,435823,619547,6221,371,241
Wellington3,557,2711,611,5055,168,7763,560,9551,547,6815,108,636
Marlborough806,8301,652,0982,458,928811,0001,634,6622,445,662
Nelson713,473593,0271,306,500636,971580,1011,217,072
Westland155,605940,6821,096,287156,118928,1691,084,287
Canterbury3,174,7074,882,4958,057,2023,189,9534,783,6547,973,607
Otago1,799,9356,220,3808,020,3151,750,3596,275,0128,025,371
Southland1,488,2211,807,9393,296,1601,486,5791,780,8333,267,412
Totals21,222,60521,938,08443,160,68921,275,38721,625,88542,901,272

Lands in occupation are not strictly comparable with Crown lands alienated or in process of alienation, for certain lands which were never made waste lands of the Crown have passed into the hands of Europeans. It must also be remembered that not all of the freehold land in the Dominion is in occupation, while (as stated previously) holdings within borough boundaries or under one acre in extent are excluded from the annual statistics.

CONDITION OF OCCUPIED LAND.

The land in occupation in the Dominion at the 31st January, 1939, was classified according to condition and use as follows:—

 Acres.Per Cent. of Total.
* Includes areas also sown with grasses and clovers.
In grain and pulse crops534,025*1.25
In green and root crops607,783*1.42
In fallow140,9250.33
In sown grasses and clovers—  
  Cut for hay, seed, or ensilage665,6371.55
  Not cut for hay, seed, or ensilage16,783,61239.12
In vineyards and orchards22,1750.05
In passion-fruit vines188..
In hop-vines600..
In market gardens, nurseries, and seed-gardens8,6960.02
In tung trees4,4030.01
In private gardens and pleasure-grounds81,4820.19
In plantations872,4232.03
    Total area in cultivation19,721,94945.97
Unimproved land23,179,32364.03
    Total area in occupation42,901,272100.00

Land in cultivation (under crop and in pasture) forms the subject matter of the section on agricultural and pastoral production immediately following. An indication of the condition and geographical distribution of unimproved land is afforded by the following table, which relates to the position in January, 1939.

Land District.Phormium (New Zealand Flax).Tussock and other Native Grasses.Fern, Scrub, and Second Growth.Standing Virgin Bush.Barren and Unproductive Land.Total Unimproved Occupied Land.
 Acres.Acres.Acres.Acres.Acres.Acres.
North Auckland5,476159,354751,660282,16051,3671,250,017
Auckland15,548156,346967,106412,55153,5991,605,150
Gisborne25353,646139,540166,33414,964374,737
Hawke's Bay311327,108230,044114,66435,407707,534
Taranaki2648,347152,172233,91512,209406,907
Wellington8,542516,182409,354297,990100,7921,332,860
Marlborough5,4671,197,489267,823166,665405,3012,042,745
Nelson3,309238,825292,928299,11027,773861,945
Westland4,206115,181173,842479,081173,432945,742
Canterbury2,2314,310,050226,02798,225620,2955,256,828
Otago1,8675,340,383473,435254,448383,9206,454,053
Southland10,1281,399,226303,436117,900110,1151,940,805
  Totals57,60213,822,1374,387,3672,923,0431,989,17423,179,323

SCENIC RESERVES, PUBLIC DOMAINS, AND NATIONAL PARKS.

The consolidating Scenery Preservation Act, 1908, with its amendments of 1910, 1915, 1926, and 1933, contains the major legislation dealing with the reservation of land, Crown or private, for scenic, thermal, or historic reserves. The Act is administered by a Scenery Preservation Board through the Department of Lands and Survey.

The Public Reserves, Domains, and National Parks Act, 1928, is also a consolidation of earlier measures. For the purposes of this Act public reserves do not include education reserves (vide next subsection), scenic reserves (supra), State forests (vide Section XIX.—Forestry), land reserved under the Kauri-gum Industry Act, 1908, or reserves under the Tourist and Health Resorts Control Act, 1908. The Act declares the general right of the public to free access to recreational reserves, but gives limited powers—extended by the Local Authorities Empowering (Aviation Encouragement) Act, 1929—to charge for admission.

Any public reserve for health or recreational purposes vested in or acquired by the Crown may be declared a public domain. Public domains are generally administered by Domain Boards, many of which comprise already existing local authorities. Domain Boards may purchase land, and land may also be taken for recreation-grounds under the Public Works Act, 1928. In certain limited instances power is given to charge for admission to public domains.

National parks are administered by National Park Boards, which have power, subject to ministerial approval, to fix fees for camping or picnicking within the parks.

The following areas are as at 31st March, 1939:—

 Number.Acres.
Reserves under Scenery Preservation Act1,118819,353
Public domains79976,500
National parks93,022,934

No detailed figures are available for the “public reserves” referred to above, which comprise a highly miscellaneous group, ranging from gravel-pits to climatological reserves. The area of reserves controlled by local authorities also is not available, but the estimated value of reserves, gardens, cemeteries, &c., of local-governing authorities in March, 1938, was approximately £3,870,000. As noted above, certain local authorities control public domains.

The historic site of the signing of the Treaty of Waitangi, together with 1,000 acres (with an additional 1,400 acres subsequently) of the adjoining estate, was purchased and presented to the nation as a national monument by Viscount and Lady Bledisloe in May, 1932.

LAND TRANSFER AND DEEDS REGISTRATION.

Under the Land Transfer system introduced in 1870 the title to land is not affected by the execution of documents. Registration is the fundamental principle, and it is only on registration that any interest passes. The Land Transfer Department assumes all responsibility for the registration, and any person named in the register as taking an interest under a registered instrument acquires a practically indefeasible title.

The Land Transfer system of title by registration has great advantages over the older system of title by deeds, even when the deeds are duly registered. The state of a Land Transfer title can be ascertained by a search of the register with very much greater facility than can the state of a title under the other system, and the powers vested in Registrars under the Land Transfer Act enable them to keep the register simple, clear, and free from doubts; the simplicity of searching and of the preparation of instruments under the Land Transfer system enables transactions with land under that system to be carried out at less cost than under the other system; and under the Land Transfer system there is the State guarantee of a practically indefeasible title, as mentioned previously.

These considerations led to the passing in 1924 of the Land Transfer (Compulsory Registration of Titles) Act, which has for its object the bringing under the provisions of the Land Transfer Act, 1915, of all land alienated by the Crown and not already under the provisions of that Act, except lands held by aboriginal Natives of New Zealand under their customs and usages.

The work of bringing all land titles under the provisions of the Land Transfer Act as required by the Land Transfer (Compulsory Registration of Titles) Act, 1924, is still being proceeded with, and has been completed except in the Districts of Auckland and Otago. There are also a few titles in other districts that it has been considered unwise to deal with at present owing to grave doubts as to ownership, or for some other reason. Steady progress is shown in the Auckland and Otago Districts, but it will be some tune yet before the work in these districts is completed.

DEEDS REGISTRATION.

Provision has existed since 1841 and is now contained in the Deeds Registration Act, 1908, for the registration of deeds and instruments affecting land which is not subject to the provisions of the Land Transfer Act. Registration is not essential to the validity of the instrument, but it is highly important as a record and to secure priority. The Act provides that every deed shall be void as against any person claiming for valuable consideration under any subsequent deed duly registered unless the earlier deed was registered before the subsequent one. The Department is not responsible for the form or matter of the instruments registered beyond seeing that they are duly stamped and contain a sufficient description of the land to identify it.

Provision is made for the deposit of instruments in the Deeds Registry Office for safe custody and reference, and such deposit operates as a release from any covenant for production.

The Deeds Index and all recorded and deposited instruments are open to public inspection, and certified copies may be obtained on payment of the prescribed fees.

Information as to transactions under the Deeds Registration Act for each of the last ten years is given in the following statement:—

Year ended 31st March,Deeds recorded.Fees. £Year ended 31st March,Deeds recorded.Fees. £
1,93012,83411,6011,9352,3192,217
1,9318,6607,7461,9362,3542,290
1,9324,7454,3141,9372,2632,180
1,9333,6163,0811,9382,0081,658
1,9342,7972,6101,9391,3231,104

LAND TRANSFER.

Information as to applications to bring land under the Land Transfer Act during each of the last ten years is given in the next table:—

Year ended 31st March,Applications.
Number.Area.Value.
Town and Suburban.Country.
  Acres.Acres.£
1,930133728,238501,898
1,931834924,353278,652
1,9324212755139,566
1,93326122,02338,280
1,93428330213,477
1,9352321,09315,725
1,936291220611,161
1,93724131096,936
1,93825134113,723
1,9391751,3648,247

The following table shows the number of certificates issued for the last ten years:—

CERTIFICATES OF TITLE ISSUED.

Year ended 31st March,In lieu of Crown Grants.Under Transfer Act of 1924.Ordinary.Total.
1,9307516,22813,55620,535
1,9318636,20611,12018,189
1,9326046,9887,20614,798
1,9334105,0706,82412,304
1,9343824,4476,52511,354
1,9355503,1367,24810,934
1,9365542,6368,80111,991
1,9376643,3369,14513,145
1,9387051,9159,75612,376
1,9396592,11110,64913,419

The table next following shows transfers registered under the Land Transfer Act during each of the last ten years:—

TRANSFERS REGISTERED.

Year ended 31st March,Number.Area.Consideration-money.
Town and Suburban.Country.
  Acres.Acres.£
1,93032,1127,7501,697,20830,832,305
1,93125,6266,8631,474,04022,068,814
1,93216,9434,1131,214,54013,205,708
1,93315,3814,161990,50711,015,434
1,93415,7604,1931,017,6129,551,205
1,93518,6284,6841,186,61712,197,376
1,93623,0446,1741,393,53215,591,391
1,93725,1787,1721,468,45118,853,823
1,93826,2698,0621,020,63823,328,714
1,93928,9658,209957,82023,659,236

The numbers of transfers registered during the years 1930 to 1937 include all transfers registered—i.e., transfers of land from trustees to beneficiaries or to now trustees, transfers of mortgages, easements, &c. The numbers shown for the years 1938 and 1939 relate only to transfers of land on sale. The numbers of miscellaneous transfers for the years 1938 and 1939 are 5,082 and 5,348 respectively.

Monthly statistics of transfers on sale of land registered under the Land Transfer Act are given from April, 1938, onwards in the table which follows, a distinction being made between town and suburban transactions on the one hand and country transactions on the other.

Month.Town and Suburban Properties.Country Properties.All Properties: Total Consideration.
Number.Area.Consideration.Number.Area.Consideration.
1938-39.
 Acres.£ Acres.££ 
April1,373472901,25934465,137545,4201,446,679
May1,8035691,145,74747573,701806,0501,951,797
June1,9397031,244,569598114,7971,012,7992,257,368
July1,9676801,444,73959193,9621,076,0322,520,771
August2,2506951,373,489542109,6141,135,6252,509,114
September2,0716601,272,18346091,169707,2371,979,420
October2,0001,2121,258,48650486,585793,0362,051,522
November2,0486841,183,22447783,303692,6591,875,883
December2,2876861,485,39146674,117863,0952,348,186
January1,270396716,78925641,705344,7361,061,525
February1,871608888,13135048,471518,5851,406,716
March2,5238441,554,26650075,259695,6892,249,955
Year 1938-3923,4028,20914,468,2735,563957,8209,190,96323,659,236
1939-40.
April1,5834541,025,69433559,806596,7361,622,430
May2,3767561,483,441533111,313739,8022,223,243
June2,3237621,446,04464290,748859,9622,306,006
July2,1466981,302,16561282,8001,081,1072,383,272
August2,2127451,460,810638105,940945,5862,406,396
September1,8736911,272,15350984,070535,1561,807,309
October1,7825981,163,22851157,460658,8831,822,111

Information as to mortgages registered under the Land Transfer and Deeds Registration Acts is contained in the section of this book dealing with mortgages.

SUBSECTION B.—CROWN LANDS.

ADMINISTRATION.

THE Crown lands are administered under the authority of the Land Act, 1924, the Land for Settlements Act, 1925, and the Discharged Soldiers Settlement Act, 1915, by the Minister of Lands at Wellington, his executive officer being the Under-Secretary of Lands, who is the permanent head of the Department of Lands and Survey. New Zealand is divided into twelve land districts, each being under the local direction of a Commissioner of Crown Lands and a Land Board.

Commissioners of Crown Lands are executive officers of the land districts, having wide discretionary powers under the Act. Each is the Chairman of the Land Board of his district, and transacts all its routine business in the sale, letting, and occupation of Crown lands. A Land Board consists of five members—viz., the Commissioner of Crown Lands for the district, three members appointed by the Governor-General, and one member elected by the Crown tenants of the district.

The Boards transact all business connected with the sale, letting, disposal, and occupation of Crown lands, and all matters connected with the management and control of the public lands in their hands. They are the sole judges of the fulfilment of conditions in leases and licenses, and they can declare them forfeit.

METHODS OF ACQUIRING CROWN LAND.

A selector may purchase for cash, or on deferred payment, or may select on renewable lease. Every applicant must be of the age of seventeen years or upwards, and may apply for Crown land solely for his own use and benefit, and not directly or indirectly for the use or benefit of any other person. Including the land he applies for, he is not to be the owner, holder, or occupier under any tenure of more than one year's duration, either severally or jointly or in common with any other person or persons, of any land anywhere in New Zealand exceeding in the whole 5,000 acres of land, computed as follows:—

  1. Every acre of first-class land is reckoned as 7½ acres;

  2. Every acre of second-class land is reckoned as 2½ acres:

  3. Every acre of third-class land is reckoned as 1 acre.

Crown land may be selected and occupied under the following tenures and systems:—

  1. Town, suburban, and village lands—

    1. For cash and deferred payment, by public auction;

    2. By lease for terms up to ten years;

    3. By renewable lease for thirty-three years.

  2. Rural land (unimproved), (under optional system)—

    1. For cash, by application;

    2. Purchase by deferred payment;

    3. Renewable lease for sixty-six years.

  3. Village settlements—

    Under the three foregoing tenures of optional system.

  4. Special settlements (rural land)—

    On renewable lease for sixty-six years and under special regulations.

  5. Land-for-settlement estates (improved rural and pastoral land)—

    1. Under renewable lease for thirty-three years, with right to acquire freehold of 400 acres of first-class land, 1,200 acres of second-class land, or 3,000 acres of third-class land;

    2. For cash or on deferred payment, by auction.

  6. Pastoral land—

    1. By small-grazing-run lease for twenty-one years, with right of renewal (maximum area, 20,000 acres);

    2. By pastoral license on terms up to thirty-five years.

  7. Land within mining districts—

    1. On pastoral licenses under special regulations, with right to acquire the freehold or exchange to a renewable lease;

    2. On occupation leases under special regulations, with similar rights as to purchase of freehold and exchange.

  8. Miscellaneous—

    1. Temporary occupation on terms up to five years:

    2. Sale or occupation for special purposes;

    3. Outlying land.

By the passing of the Land Laws Amendment Act, 1926, it was provided that after the 9th September, 1928, no more Crown lands were to be disposed of under the occupation-with-right-of-purchase tenure, and that any lands which might have been so disposed of could be disposed of by way of sale on deferred payments in addition to the other modes of disposal provided by the Land Act.

Full particulars are given in the Crown Lands Guide, issued periodically and obtainable at any Land Office, as to the conditions of lease and occupation. Improvements to a certain value are required to be effected on rural land purchased for cash or on deferred payment or held on renewable lease, and residence is compulsory for certain periods on most Crown leaseholds.

DISPOSAL OF ENDOWMENTS AND RESERVES.

National endowments may be disposed of under renewable lease, small-grazing-run lease, or pastoral license. These lands are occupied on the same conditions as ordinary Crown lands.

Owners of renewable leases and small-grazing-run leases of national-endowment lands now have the right to acquire the fee-simple of their holdings on the conditions provided by the Act pertaining to each class of lease. A pastoral licensee of national-endowment land, if the area is not more than sufficient for the maintenance of the licensee and his family, can acquire the fee-simple.

Education endowments are available for leasing under the Education Reserves Act, 1928, which permits of a lease being granted under the Public Bodies' Leases Act, 1908, as well as under the Land Act, 1924. The freehold of the land cannot be acquired.

Public reserves not vested in trustees or a local authority may be leased under the Public Reserves, Domains, and National Parks Act, 1928, for any term not exceeding twenty-one years, with right of renewal for a further term. The freehold of the land cannot be acquired.

LAND DEVELOPMENT.

The Land Laws Amendment Act, 1929, deals chiefly with the promotion of settlement on undeveloped Crown lands. Power is given for the Crown to develop idle Crown lands, and also for the making of advances to Crown tenants holding undeveloped country for the erection of buildings, purchase of stock (the latter since the Land Laws Amendment Act, 1932), and for clearing, grassing, fencing, &c. Settlers taking up unimproved sections may apply for financial assistance up to £1,250 each, the payments to be made as improvements are effected. The rate of interest has been fixed at 5 per cent. Crown tenants already in occupation of land coming under the designation of undeveloped are also eligible to apply for development advances. Loans approved to 31st March, 1939, numbered 527, totalling £267,654, while in addition £397,840 (apart from roading-costs payable out of Public Works Fund) has been expended by the State in the roading, surveying, and development of various blocks of land to be opened for settlement.

LANDS OPENED FOR SELECTION.

During the year ended 31st March, 1939, an area of 173,662 acres of land was offered for selection under the various tenures provided by the Land Act, Land for Settlements Act, and Education Reserves Act.

Under renewable lease an area of 15,473 acres was offered, 2,497 acres being national endowment, 85 acres other endowments, 5,766 acres land for settlements, and 7,125 acres ordinary Crown lands. An area of 10,756 acres was offered under the optional system. The pastoral-run area comprised 140,595 acres.

In addition to the above, a total area of 148 acres of Crown land was set apart for selection by discharged soldiers under the ordinary tenures of the Land Act and the Land for Settlements Act and the special tenures of the Discharged Soldiers Settlement Act. Fuller particulars regarding these lands will be found at the end of this subsection.

The total selections during the year covered an area of 271,549 acres, by 1,062 selectors. These figures include, however, 105 purchases of small town, suburban, and rural lands, aggregating 2,567 acres, offered for sale at auction. The ordinary Crown lands holdings represented 1,945 acres; land for settlements and Cheviot Estate, 17 acres; and national endowment, 605 acres. Selections by discharged soldiers are included in the foregoing totals.

SELECTIONS UNDER SETTLEMENT CONDITIONS.

Areas under this heading include all lands sold for cash or selected on the deferred-payment system, small grazing-runs, and leases under the following tenures: renewable lease, mining districts land occupation leases, educational-endowment leases and pastoral licenses in mining districts under special regulations.

Year ended 31st March,Sold for Cash.Deferred-payment Licenses.Leases and Licenses (Ordinary Settlement).Small Grazing-runs.Totals.
NUMBER.
1,93517086266..522
1,9361351092292475
1,9371292032794615
1,9381521092651527
1,93910555332..492
  AREA (ACRES).   
1,93512,8783,88681,328..98,092
1,9362,9584,87575,79018,531102,154
1,9378,24615,01858,78010,57192,615
1,9383,5945,57250,0823,27662,524
1,9392,5675,66862,244..70,479

CROWN LAND HELD OR MADE FREEHOLD.

National-endowment lands are included in the next table in the figures for the various tenures under which they are held. National-endowment lands of an aggregate area of 6,253,024 acres were held at 31st March, 1939, by 4,213 selectors, the annual rental payable being £129,448. Settlement lands under the Land for Settlements Act, which are dealt with later on in this subsection, are also included.

The following table shows the position at 31st March, 1939:—

Tenure.Total Number of Selectors.Total Area held from the Crown.Total Yearly Rental or Instalment payable.Total Area made Freehold.
Number of Purchasers.Area.
  Acres.£ Acres.
Cash lands........13,308,975
Deferred payment3,547517,90092,69912,6571,449,282
Perpetual leases1526,0878373,112865,099
Occupation with right of purchase1,860529,52041,3225,4971,375,808
Lease in perpetuity7,3921,522,368181,8883,403568,770
Renewable lease9,2232,593,856393,021629106,112
Agricultural lease9282211,408140,896
Mining districts land occupation leases68916,3231,7711915,320
Homestead......6180,453
Pastoral licenses in mining districts under special regulations45294,2282,08211723,094
Small grazing-runs7712,498,39394,7157693,578
Pastoral runs6008,168,78782,061924,399
Hanmer Crown leases109321333....
Miscellaneous leases and licenses6,673990,01039,47915917,368
    Totals31,47716,938,075930,22927,31918,059,154
Thermal-springs leases (Rotorua)2608411,35076312
Education endowments—     
Primary3,690758,969106,89276,843
Secondary48638,85511,953114
    Totals4,436798,665120,195847,169
    Grand totals35,91317,736,7401,050,42427,40318,006,323
Other endowment lands781330,48615,342117,266

CROWN LAND MADE FREEHOLD, YEAR ENDED 31st MARCH, 1939.

Tenure (immediately prior to acquisition of freehold).Area.Amount realized.
* Under section 223 of Land Act, 1924.
 Acres.£
Cash lands sold2,50714,914
Freehold acquired under following tenures—  
Deferred payment23,54998,569
Occupation with right of purchase20,81050,192
Lease in perpetuity7,85637,683
Mining districts land occupation leases2111,042
Renewable lease13,73849,075
Pastoral licenses in mining districts under special regulations733449
Thermal-springs leases (Rotorua)222,814
Miscellaneous*43495
Totals69,926254,833

SUBDIVISION OF LAND.

Much of the land legislation of recent years has been in the direction of preventing large areas of good land from being acquired or retained by a single individual. Part VI of the Land for Settlements Act, 1925, provides for an agreement being made between the Minister of Lands and the owner in fee-simple of any land for the subdivision of that land, and for the disposal by public tender of the allotments by way of sale or by way of lease with right of purchase.

Section 97 provides for similar agreements between the Minister and the owners of Native freehold land in respect of the disposition by sale or lease of that land.

In Part VII of the Land for Settlements Act, 1925, provision is made whereby the Minister of Lands may at any time in writing notify an owner of land that such land or a portion thereof is required for purposes of settlement. The owner of the land is required, within six months after such notice has been gazetted, to notify the Minister whether he elects (a) to subdivide and offer the land for sale in subdivisions, or (b) to enter into an agreement with the Minister as above, or (c) that the land shall be taken compulsorily under the Act.

In sections 381 and 382 of the Land Act, 1924, provision exists for compulsorily taking private land (not within a borough or town district) in cases where in the opinion of the Dominion Land Purchase Board such land has been acquired by way of aggregation, and where such aggregation is contrary to the public interest. Compensation is payable for all land so taken.

The Small Farms (Relief of Unemployment) Act, 1932-33 (changed to the Small Farms Act by an amendment passed in 1939), which is administered by the Department of Lands and Survey, authorized the Board constituted under the Act to acquire lands for the Crown by way of purchase, or by lease with right of purchase, or by resumption of suitable areas of Crown lands held under lease or license. Where land suitable for the purposes of the Board is, in the opinion of the Board, not being adequately used powers are given by the Act for its compulsory acquisition. A description of small-farms operations is given in Section XL.

LAND FOR SETTLEMENTS.

The purchase of private lands by the Crown for closer settlement purposes is authorized by the Land for Settlements Act, 1925, a consolidation of former legislation.

Twenty-one estates, of a total area of 31,143 acres, wore offered during the year ended 31st March, 1939. None of these was purchased for closer settlement during the year. Four parcels of land totalling 1,122 acres, however, were purchased, these areas being acquired as additions to land already leased, and in one case as an addition to land under development by the Department of Lands and Survey.

SUMMARY OF ESTATES ACQUIRED TO 31ST MARCH, 1939.

Land District.Number.Area.Purchase-money.
  Acres.£
North Auckland5448,986455,075
Auckland76376,1061,243,883
Gisborne2686,380790,131
Hawke's Bay59264,7831,714,292
Taranaki2731,959376,031
Wellington157160,8462,350,638
Marlborough23234,591756,482
Nelson1448,821150,473
Westland36,03214,062
Canterbury180451,5843,524,894
Otago82336,8032,036,018
Southland3494,396522,280
Totals7352,141,28713,934,259

The total number of estates purchased since the inception of the land-for-settlements scheme is 735, of a total area of 2,141,287 acres, the aggregate amount of purchase-money being £13,934,259. These figures do not include any advances under section 2 of the Discharged Soldiers Settlement Amendment Act, 1917, but include purchases under section 3 of that Act, and under the Land Laws Amendment Act, 1928.

The transfer of certain areas from Crown to settlement lands, and the adjustment of areas to account for ascertained surpluses or deficiencies, bring the total area of settlement lands to 2,292,364 acres at the 31st March, 1939. Of this, 332,515 acres have been sold for cash or made freehold, the number of purchasers being 2,913 and total purchase-money £1,604,427, and 95,980 acres are occupied by roads or by reserves unlet. At the 31st March, 1939, 6,652 selectors were holding a total of 1,783,304 acres, the annual rental for which amounts to £468,890; and the remaining 80,565 acres were unlet. Rent and other payments received during 1938-39 were £512,467, while total receipts from inception to 31st March, 1939, were £13,882,193.

PURCHASE OF LANDS FOR GROUPS OF APPLICANTS.

Part II of the Land Laws Amendment Act, 1928, gives power whereby two or more persons may purchase land acquired on their behalf by the Crown. No property was so purchased during the year ended 31st March, 1939.

ASSISTING PURCHASE OF PRIVATE LAND.

Section 3 of the Land Laws Amendment Act, 1932, provides authority for the making of advances to purchasers of part of private freehold properties up to 90 per cent. of the purchase-money, all such advances to be secured by way of first mortgage.

LAND-SETTLEMENT FINANCE ASSOCIATIONS.

On the 1st January, 1910, the Land Settlement Finance Act, which is described fully in the 1915 issue of this book, came into force. The associations incorporated now number forty-six. There have been no transactions for several years past.

LAND FOR DISCHARGED SOLDIERS.

Under the provisions of the Discharged Soldiers Settlement Act, 1915, and amendments, any person is entitled to the benefits of the Act who was an honourably discharged member of a New Zealand Naval or Expeditionary Force of 1914-18, or was a bona fide resident of New Zealand and served during that war with other British Forces.

There is power to dispose of land under the ordinary tenures of the Land Act, 1924, and the Land for Settlements Act, 1925—i.e., for cash, on deferred payment, or on renewable lease under the former Act, and on renewable lease under the latter Act; also under the “special tenures “ of the Discharged Soldiers Settlement Act, 1915, which are cash, deferred payment, or a renewable lease with a purchasing clause.

Under the Discharged Soldiers Settlement Act, 1915, 148 acres were proclaimed in 1938-39, and a total of 1,454,221 acres has been proclaimed to 31st March, 1939, comprising 614,160 acres of ordinary Crown lands; lands for settlement, 403,173 acres; national-endowment lands, 433,532 acres; and Cheviot Estate, 3,356 acres. Some 702,837 acres of this aggregate fall under section 3 of the Act (ordinary tenures) and 751,384 acres under section 4 (special tenures).

During the year ended 31st March, 1939, one application was made under the provisions of the Discharged Soldiers Settlement Act, and an allotment was made in the case of the applicant, the area being 11 acres.

Under the provisions of Section 6 of the Finance Act, 1937, the Discharged Soldiers Settlement Account was abolished as from the 31st March, 1938.

The mortgage securities under the Discharged Soldiers Settlement Act have now been transferred to the State Advances Corporation. Reference to these will be found in Section XXIV, Subsection D, dealing with State Advances.

SUBSECTION C.—NATIVE LANDS.

DEFINITION AND KINDS OF NATIVE LAND.

NATIVE land is of two kinds—namely, customary land and Native freehold land. Customary land is land which has never been the subject of a Crown grant and is held by Natives under the customs and usages of the Maori people. It is land in respect of which the ancient customary Native title as recognized and guaranteed by the Treaty of Waitangi has not yet been extinguished. Such land, since it has not been Crown-granted remains vested in the Crown, subject, however, to the customary title of the Natives, and to their right to have the customary title transformed into a freehold title by the Native Land Court. There is little of this class of land now left in the Dominion.

Customary land has always been restricted from alienation except in favour of the Crown. By the Treaty of Waitangi the exclusive right to purchase such land was reserved to the Crown, and in all statutes since passed the alienation of customary land to private individuals has been prohibited, and this prohibition is now extended to the Crown. Native freehold land is the land hold by Natives under an English freehold title, though subject to certain restrictions on alienation and other special incidents which are unknown to the ordinary law.

Whether land is Native or European land depends upon the beneficial ownership of it, and not merely on the legal ownership. If land is held by a European in trust for a Native, it is Native land; if it is held in trust by a Native for a European, it is European land. There are, however, four exceptions to this:—

  1. When land has once become European land, it never again becomes Native land unless by special enactment.

  2. Land purchased by a Native from the Crown for a. pecuniary consideration is not Native land. This does not include an exchange of land, with or without a payment of money by way of equality of exchange.

  3. Land held by a Native in severalty may be declared to be European land by the Native Appellate Court.

  4. Under certain circumstances the Native owner may have been declared a European. (The Native Land Amendment Act, 1912, empowered the Governor-General, by Order in Council, upon recommendation of the Native Land Court, to declare a Native to be a European for the purpose of the Native Land Act or any other Act. Such a person did not lose his right of succession to Native land or property, nor, if he died intestate, were his heirs affected by the change of status. Any such Order in Council did not affect the status as a Native of the wife, husband, or child of the person. These provisions were repealed, without re-enactment, by section 525 of the Native Land Act, 1931, which maintains and defines the status of all Natives previously declared Europeans, but permits revocation of any such Order in Council.)

Even though one of many Native owners may sell, the land remains Native land until all have disposed of their interests, or until the purchaser has had his interests partitioned off. A “ Native “ means a Maori or half-caste, or a person intermediate in blood between a Maori and a half-caste.

The Native Land Act, 1931, and the Native Purposes Act, 1931, are consolidations, with amendments, of existing legislation.

BOARD OF NATIVE AFFAIRS.

The Board of Native Affairs constituted under the Board of Native Affairs Act, 1934-35, consists of the Native Minister, the Under-Secretary of the Native Department, the Under-Secretary for Lands, the Valuer-General, the Financial Adviser to the Government, the Director-General of Agriculture, and such other members (not exceeding three) as the Governor-General may appoint.

The functions of the Board of Native Affairs include, inter alia, the following:—

  1. The control of the development and settlement of Native land or land owned or occupied by Natives, undertaken pursuant to Part I of the Native Land Amendment Act, 1936.

  2. The control of expenditure on farming operations undertaken by Maori Land Boards and the Native Trustee.

  3. The control of investments by—(a) Maori Land Boards; (b) the Native Trustee; and (c) the East Coast Commissioner.

  4. The control of negotiations for the acquisition of Native lands.

  5. The control of expenditure on housing operations under the Native Housing Act, 1935.

THE NATIVE LAND COURT.

The Native Land Court consists of a Chief Judge and such other Judges as the Governor-General thinks fit to appoint. All powers of the Court may be exercised by a single Judge, but there are certain important powers vested exclusively in the Chief Judge. Commissioners are appointed who exercise such jurisdiction of a Judge as the Governor-General authorizes. The chief matters within the jurisdiction of the Court are:—

  1. The investigation of title to customary land, and transforming it into Native freehold land.

  2. The exclusive power of partitioning land among the owners.

  3. The sanctioning of exchanges for other Native land and European land.

  4. Granting probates of wills and succession orders to Natives.

  5. Making orders for the adoption of children.

  6. Appointing trustees for Natives who are minors or under other disability.

  7. The incorporation of the owners of Native land.

  8. The determination of various claims as between Natives.

  9. To grant confirmation of alienation of Native land.

Business dealt with in 1938-39 was as follows:— 
  Number of sittings129
  Number of cases notified27,040
  Number of cases for which orders were made8,604
  Number of cases dismissed1,755
  Number of cases adjourned sine die17,521
  Number of partitions made471
  Area affected (acres)28,754
  Number of succession orders made4,602
  Number of other orders made6,787

The Native Appellate Court consists of any two or more Judges of the Native Land Court, provided that two Judges at least shall concur in every decision of the Court. With certain exceptions the Appellate Court determines appeals, whether on law or on fact, from all final orders of the Native Land Court.

MAORI LAND BOARDS.

There are seven Maori Land Boards, each consisting of two members, viz.—the Judge (or, if there be no Judge of the district, a Commissioner of the Court appointed by the Native Minister), and Registrar of the Native Land Court district, the Judge acting as President. The chief functions of a Maori Land Board are—

  1. To administer certain large areas of Native land vested in those Boards in trust for the Native owners, the Boards having extensive powers of sale, lease, and management.

  2. To act as statutory agent of the Native owners in respect of certain areas of Native land sot apart for Native settlement.

  3. To control the administration and disposition of Native land, by resolution of the assembled owners.

  4. To assist Natives in farming their lands.

The total area vested in and administered by the various Maori Land Boards as at the 31st March, 1939, was 652,812 acres.

During the year 1938-39, 4 acres of vested land were sold or revested in the Native owners.

With regard to Native freehold land, the Courts during the year approved of leases comprising 49,332 acres, and confirmed transfers (apart from sale; to the Crown) affecting 10,158 acres of freehold land.

POWERS OF ALIENATION.

The ordinary provisions as to alienation of Native land do not affect the power to dispose of land by will, but a Native cannot will to a European except it be a husband or wife or other relative of the person making the will. A Native cannot dispose of customary land, whether by will or otherwise. No alienation of Native land by a Native has any effect until it is confirmed by the Native Land Court.

The Court, before confirming an alienation, must satisfy itself, inter alia, that it is not contrary to the interests of the Native alienating; that no Native is rendered landless; that the consideration is adequate; that the purchase-money is paid or secured; and that the alienation is not otherwise prohibited by law

A lease cannot be for a longer term than fifty years, and a mortgage must have the approval of the Native Minister and confirmation by the Native Land Court.

PURCHASE OF NATIVE LAND FOR CROWN.

Since 5th April, 1935, the duty of undertaking, controlling, and carrying out all negotiations for the acquisition of Native lands by the Crown, and the performance and completion of all contracts entered into is imposed upon the Board of Native Affairs.

Where Native land is being acquired for general settlement, the Board of Native Affairs must act upon the advice or request of the Dominion Land Purchase Board, referred to in the Land for Settlements Act, 1925, but this requirement is not necessary in the case of land being acquired for Native settlement.

The Native Land Purchase Board mentioned in the 1933 and earlier editions of the Year-Book was abolished by subsection (1) of section 7 of the Native Land Amendment Act, 1932, and the Native Land Settlement Board, referred to in the 1935 edition, was abolished by subsection (2) of section 11 of the Board of Native Affairs Act, 1934-35.

Pending any purchase by the Crown the Governor-General may, by Order in Council, prohibit alienation otherwise than to the Crown. Upon the purchase being completed the land is proclaimed Crown land, and is subject to administration under the Land Act, 1924. Whore the land is subject to lease when purchased, there may be extended to the tenant the option of purchasing the land from the Crown or having a renewable lease granted to him.

Since 1st April, 1910, a total of 1,548,475 acres of Native land has been purchased by the Crown. The total area of Native land alienated by way of sale to the Crown or to other purchasers since 1910 is 3,344,602 acres.

The area of Native land still held by Natives in the North Island is estimated at 3,778,171 acres, and in the whole Dominion at 4,019,072 acres. In many cases the Natives are utilizing their land for pastoral and dairying purposes. Other lands are being farmed for them by Maori Land Boards, by the Native Trustee, and by the East Coast Commissioner.

NATIVE LAND DEVELOPMENT.

In the year 1929 legislation was enacted giving sanction to a scheme for the development and settlement of lands owned or occupied by Maoris.

Part I of the Native Land Amendment Act, 1936, which replaces section 522 of the Native Land Act, 1931, imposes on the Board of Native Affairs the duty of undertaking and carrying out this work.

To overcome any delays or difficulties arising from the nature of the titles to the lands proposed to be developed, the Board of Native Affairs is authorized to bring such land under the scope of a development scheme. Upon notification of the fact the owners are prevented from interfering with the work of development, and private alienation of any land within the scheme is prohibited. The funds for development are provided by the Minister of Finance through the Public Works Fund. The Board of Native Affairs is armed with the most comprehensive powers, which it can exercise directly through the Native Department or delegate to any Maori Land Board or to the Native Trustee. The Board is also empowered to direct a Maori Land Board or the Native Trustee to use their funds for development. Power is also taken by arrangement between the Minister of Lands and the Board of Native Affairs to develop Crown lands that adjoin or are surrounded by a Native land-development scheme, thus removing a further obstacle in the way of development.

Special legislative provision has also been made enabling one or other of the Maori Land Boards or the Native Trustee to undertake farming of specified blocks on behalf of the beneficial owners.

Since inception to the 31st March, 1939, the total gross expenditure on development schemes under the control of the Native Department amounted to £4,330,022 (inclusive of interest). The total credits were £2,714,471 which includes Employment Promotion subsidies amounting to £809,409, and the total net expenditure was £1,615,551.

The total area gazetted under Part I of the Native Land Amendment Act, 1936, to 31st March, 1939, was 840,035 acres, of which 252,566 acres had been developed, and were carrying the following live-stock: 34,075 cows, 16,447 other dairy stock, 22,581 run cattle, 94,201 breeding-ewes, and 71,794 dry sheep, together with 3,090 working-horses. The Maori population under the schemes numbers 1,891 settlers, 3,179 other employees, and 16,854 dependants.

NATIVE TRUSTEE.

The administration of Native funds and Native reserves, formerly conducted by the Public Trustee, was by statute transferred to the Native Trustee as from 1st April, 1921. This was part of a comprehensive scheme which seeks to rehabilitate the Maori by inducing him to farm and manage his own lands. As a further means to this end the Native Trustee, with the approval of the Board of Native Affairs, advances money to Natives on the security of their lands, the expenditure of this money, and the management of Native farming operations generally, being supervised in a helpful and sympathetic manner. The Native Trustee Act, 1930, consolidated existing legislation.

The Native Trustee administers many reserves of Native land on behalf of the beneficiaries, and grants leases thereof. The beneficial owners of these reserves have no power of alienation other than to the Crown.

The Native Trustee also, where necessary, acts as trustee for Natives who are minors or under other disabilities, administers special funds, and acts as executor or administrator of the estates of deceased Natives.

The funds of the Native Trust Office at the 31st March, 1939, were:—

Amounts held under—£
West Coast Settlement Reserves Act, 189249,697
Native Reserves Act, 188260,468
Native Land Act, 1931 (Part X)68,293
Native Land Act, 1931 (Miscellaneous)160,871
Native Trustee Act, 193016,048
Miscellaneous funds173,951
Reserve and Assurance Fund98,111
Investment Fluctuation Fund5,191
Advance under Native Land Act, 193157,561
Reserve against unpaid interest, &c.4,029
Profit and Loss Appropriation Account12,337
Total£706,557

Of the total funds £421,811 was invested in the form of mortgages, £5,100 in local authorities' securities, and £167,654 on overdrafts to estates and accounts.

Commissions, fees, charges, and net interest on investments for the year 1938-39 totalled £19,535. The net profit for the year was £6,581.

NATIVE HOUSING.

The Native Housing Act, 1935, with its amendment of 1938, which extended the provisions of the principal Act, makes provision for the better housing of the Maori people, and for that purpose provides for the erection of dwellings and for improved housing conditions for Natives. The Board of Native Affairs is empowered under this Act to make advances out of moneys appropriated by Parliament for the erection, repair, alteration or improvement of any dwelling; for the improvement or installation of lighting, heating, sanitation, or water-supply systems; for the purchase of land or interests in land as sites for dwellings; and for the draining, cultivation, or general improvement of the land appurtenant to a dwelling. In granting such advances the Board may accept as security a first mortgage of Native land (including a leasehold interest), a first mortgage of any undivided interest in Native land, an assignment of the proceeds of the alienation of Native land, and assignment or disposition of any other moneys payable to a Native, or such other security as the Board may approve.

The Act provides that, in dealing with an application for advance, the Board shall not be bound to insist upon any fixed margin of security, and that the rate of interest to be charged upon advances shall not be in excess of the current rate fixed by the State Advances Corporation of New Zealand in respect of loans granted by it. Under the regulations gazetted in January, 1937, repayments of advances may be either at the expiration of a stated period, on demand, by periodical equal or unequal payments consisting partly of principal and partly of interest, or in such other manner as the Board in any particular case thinks expedient.

The number of advances authorized from the inception of the scheme to 31st March, 1939, was 272, of which 170 were for the erection of new dwellings, 20 for the purchase of existing dwellings, and 82 for additions, renovations, &c. The total amount authorized to 31st March, 1939, was £101,367, of which £30,334 had been expended.

Section 18 of the Native Housing Amendment Act, 1938, establishes a fund called “the Special Native Housing Fund,” to be used for the purpose of enabling the provision of houses for those Natives who are unable to furnish the security or to make the payments which the Board of Native Affairs would ordinarily require. The financing of this fund, apart from repayments from Natives, is dependent upon parliamentary appropriations. The number of advances authorized from the special fund to 31st March, 1939, was 289, of which 241 were for the erection of new dwellings, 7 for the purchase of existing dwellings, and 41 for additions, renovations, &c. The amount involved by these authorizations was £85,259, of which £36,301 had been expended by 31st March, 1939.

In addition to the provision of housing for Maoris under the Native Housing Act, dwellings are provided in the ordinary course of the Native-land-development schemes referred to on page 387. The number of houses erected under these schemes during the year ended 31st March, 1939, was 283, and the total since the inception of the schemes to that date was 937.

SUBSECTION D.—SURVEYS.

INTRODUCTORY.

THE surveys of Crown lands, Native lands, land purchased under the various Settlement Acts, and lands acquired or taken for public works are executed under the authority of the Minister of Lands, and are carried out by staff and contract surveyors registered by the Survey Board under the provisions of the Surveyors Act, 1938, which came into operation on 1st July, 1939. This Act provides for the issue, by the Secretary of the New Zealand Institute of Surveyors, of annual practising certificates, only the holders of which (who must be registered surveyors) are entitled to act as surveyors.

The surveys of private lands for the purpose of the Land Transfer Act are carried out by private surveyors similarly registered.

Statutory authority for the surveyor to enter upon any land and to place survey marks thereon is contained in several Acts, and the wilful destruction of these marks is subject to a severe penalty.

All surface surveys are made in accordance with regulations laid down and are subject to field check (if thought necessary) and to office examination prior to approval and deposit.

The standard of length is the chain of 22 Imperial yards divided into 100 links, and all linear measurements have to be expressed in terms thereof, and areas in acres, roods, and perches, with decimals of a perch. Standard comparison bands are available in each District Office, as well as at the office of the Surveyor-General.

SURVEY SYSTEM.

CONTROL SURVEY.

Until the abolition of the provincial system of government in 1876, the surveys of New Zealand were conducted by nine survey departments, each independent of the other, and working on no common system. At that date an amalgamation into one department was accomplished. Several of the provincial services had conducted their surveys on a trigonometrical basis, but, as the others were building one survey on another by traverse on magnetic or other azimuthal bearings, without any reference to true meridian or the independent check of triangulation, a state of considerable confusion and uncertainty had arisen in the survey records.

In these circumstances it was necessary to devise a system that would rapidly bring the surveys under control and record, so that settlers might be placed in secure possession of their land, and the Crown be safe to issue titles on reliable plans and descriptions.

The plan adopted was to divide the country into twenty-eight districts, designated “ meridional circuits.” At the initial or main station of each, the astronomical meridian was determined from observations of circumpolar stars, and the latitude from observations of stars north and south of zenith. Lines of bearings on the true astronomical meridian of the initial station were extended throughout its circuit to the plains and valleys where surveys were in progress. Within three years these standard bearings had been so extended as to enable all the surveys to be conducted on the true meridian of their respective circuits; for, following immediately on this operation, a base-line was measured, and a minor triangulation of two- and three-mile sides, starting from one of the stations of the standard bearings, was spread over the country wherever most required for the check and connection of the settlement surveys. In this way the Dominion was placed very quickly under a system of correct recordable survey, readily adjustable to the requirements of a population rapidly spreading over areas widely apart. The intervening spaces have since been filled in, and the network of triangles is a continuous chain extending over the Islands from north to south a distance of 1,100 miles. Simultaneously with the minor triangulation of the country a topographical survey was carried on, giving the positions of rivers, plains, mountains, forests; best lines for future roads; altitudes of valleys, passes, and mountains; and generally a correct representation of the features of the country, to a scale of 2 in. to the mile.

SECTIONAL.

Each meridional circuit was subdivided into squares with sides of 1,000 chains in length, the meridian and perpendicular through the initial station being taken as the starting-point. These squares, called “ survey districts,” were further divided into sixteen squares called “ blocks,” with sides of 250 chains in length. The sections for sale or lease were superimposed upon these and numbered consecutively in each block. Thus each section has for the purpose of record and title registration a complete identification by means of its number, the number of the block, and the name of the district. Unfortunately, it was not found practicable to incorporate in this system the sections which had been alienated prior to 1876, and the provincial registration districts—parishes, hundreds, Crown grant districts, squares, &c.—were perpetuated.

In general, sections were surveyed before selection or disposal, and in these cases the sections were set off with due regard to the topography, thus making each section so far as possible a farm unit with good access, water-supply, and those other factors which make for the economical working of a farm.

The boundary-lines of the sections were marked at all corners by stout pegs and lockspits, with additional marks where lines were long and straight. In bush the lines were cut out and similarly marked at corners.

The main object of the survey is to enable the settlement of lands to proceed on a system which will give the settler the possession of a definite piece of land without fear of future rival claims. The Crown, which guarantees titles, is also freed from embarrassing claims for compensation caused by overlapping boundaries.

OFFICE COMPUTATION AND RECORD.

The triangulation of each circuit was computed as plane, neglecting the curvature of the earth, and the triangulation stations were co-ordinated on the meridian and perpendicular passing through the initial station. Road and sectional surveys were made by traverses with theodolite and chain, rigidly connected to the triangulation stations, and the traverse points were similarly co-ordinated. All surveys were thus subject to complete mathematical check and could be recorded by direct plot from co-ordinates. Areas generally were mathematically deduced, graphic methods being used only for those portions bounded by irregular fines such as streams. All surveys were recorded on index maps, on scales varying from 4 inches to a mile in rural districts to 1 chain to 1 inch in urban districts. The original survey plans, field notes, and co-ordinate tabulations are all carefully stored in fireproof strong-rooms and are readily available to surveyors requiring the use of the information contained.

In a new country it is of the first importance that all surveys should stand the mathematical test of reduction to the meridian and perpendicular of a governing trigonometrical survey, for, unlike the survey's of old countries, where time-honoured landmarks and a settled population conserve boundaries, the surveys of a new country have no such aid, but, instead, have to create boundaries in the unoccupied wilderness, which at best can only be marked by perishable surface marks. Then, again, the frequent changes of ownership of land in the Dominion facilitated by the Land Transfer system, and the responsibility of the Government in guaranteeing all titles under it, are cogent reasons why the rigid mathematical system of reduction of traverse to the meridian and perpendicular of the stations of a trigonometrical survey should be adopted and maintained.

GEODETIC SURVEY.

INCREASING ACCURACY.

On completion of the original triangulation in the meridional circuits it was found that there were considerable discrepancies in the lines on the boundaries of the circuits, which were common to two or more. These discrepancies were caused principally by two factors—the accumulation of observational errors in the triangulation and the want of a common standard of length in the measurement of the bases. These differences were not sufficiently large to cause any embarrassment while traverses were made with the gunter chain and early pattern theodolite, but on the invention (by a New-Zealander, Mr. A. Fairburn) of the long steel tape in the early “seventies.” and the increased accuracy of later model theodolites, part of the value of the triangulation was impaired. Thus, while the network of permanent marks still controlled the position of boundaries, the field traverses of equal or even greater accuracy than the triangulation sides could no longer be used as definite checks.

FIRST ORDER TRIANGULATION.

Early in this century it was decided to throw over the Dominion a network of large triangles with a high degree of accuracy and from this to recompute the original minor triangulation to conform. In 1904 twelve steel bands were obtained, each with a Board of Trade certificate as to its correct length at a defined temperature and tension. Base-lines were selected, and five in the North Island were measured between 1909 and 1914, when the outbreak of the Great War of 1914-18 stopped further progress. In 1922 work was resumed, to be again stopped by the depression in 1931. After five years' cessation, work was restarted and has continued until the present. The whole of the North Island and one-third of the South Island has now been covered.

The observational work has been done to an accuracy well within the limits set by the International Association of Geodesy for work of the highest precision.

SECOND AND THIRD ORDER TRIANGULATION.

It was originally anticipated that the old minor triangulation could be utilized after readjustment to conform to the new first order, but after attempting to do this it was found that larger corrections than could now be tolerated were being introduced into the old work. In some instances this was undoubtedly due to actual displacement of old stations, but in the majority of cases the fault lay in the old triangulation not being of sufficiently high standard. It was therefore necessary to reobserve the old work, and this has been done in three of the circuits to date.

In this way accurate geographical results over the Dominion will be moulded into one harmonious whole on a co-ordinated system and on a basis which gives the correct relation of one part to another, with no possibility of overlapping where different circuits join.

ASTRONOMICAL POSITIONS.

Latitude and azimuth observations have been taken in conjunction with the first order triangulation, about one station in every three being so observed. Longitude observations by wireless telegraphy are to be made on conclusion of the horizontal observations, and stations 100 miles apart will be selected for these, so that in conjunction with latitude and azimuth these stations may be used for laplace equations to control the entire triangulation.

PRECISE LEVELLING.

Levelling of high precision is in progress, the datum being mean sea-level based on the records of the principal tidal stations. Besides the usual fundamental bench marks, permanent marks at approximately one-mile intervals will be placed to enable all surveys involving levelling to be properly co-ordinated on a definite datum.

STANDARD SURVEYS.

Where land values are high, as in the cities and large boroughs, a precise survey is made of the streets marked by permanent standard blocks at each intersection. While the survey does not in itself settle the boundaries of properties, it correlates all existing original and prior marks, and thus furnishes a sure guide and standard of reference for all future surveys.

The accuracy to which these surveys are carried out is of the order of 2 inches in 1 mile.

Similar work of slightly less accuracy is being carried out over many of the main highways where by reason of road improvements, such as regrading, widening, and permanent surfacing, the original marks have been lost or obliterated.

TOPOGRAPHICAL SURVEY.

A basic topographical survey of the Dominion is in progress, the purpose being the publication of a series of maps on a scale of 1 inch to the mile showing relief by means of contours, drainage, cultural, and surface features so far as the scale of representation will permit. Up to 1936 several thousand square miles had been done by plane table, the principal places being round Dunedin, Auckland, Wellington, the Motueka Valley, Rotorua District, and Northern Taranaki. Since that date aerial photography has been adopted as the means for carrying out these surveys, and a thousand square miles in Hawke's Bay have been completed, and work is in progress on an area of approximately 2,000 square miles in the Auckland District.

A programme of some 3,000 square miles per annum has been laid down for this work, and if this rate is maintained the whole Dominion should be mapped in a period of thirty years.

TIDAL SURVEY.

The tidal work carried out by the Department at the commencement of the survey operations in the Dominion consisted of determinations of mean high-water mark (H.W.M.) for the purpose of defining the boundary of land abutting on tidal waters.

Later the adoption of mean sea-level us the datum of reference for the heights shown on the maps of trigonometrical and precise levelling surveys led to a more accurate system of tidal observations being initiated; but it was not until 1909 that a complete tidal survey was inaugurated, at the request of the Admiralty, to include the predictions of the times and heights of high and low water of the ports of Auckland and Wellington in the Admiralty Tide-tables.

The tidal observations are made mainly by self-registering tide-gauges, in which a curve is traced which shows the height of the water at any time above an arbitrary datum. This curve is decomposed, by a process devised by Lord Kelvin, and known as “ harmonic analysis,” into its harmonic elements. These components are now computed for the ports of Auckland, New Plymouth, Wellington, Lyttelton, Dunedin, Bluff, and Westport, and from them the predicted times and heights of high and low water are obtained by means of the tide-predictor at the Tidal Institute, University of Liverpool, and published in advance in the “ New Zealand Nautical Almanac,” the Admiralty Tide-tables, and several of the maritime publications of foreign nations.

The seven ports for which tide-tables are prepared serve as standards of reference on which to base, by means of tidal difference, the times and heights of high and low water of all the other ports in the Dominion.

GEOGRAPHIC BOARD.

A Geographic Board has been appointed to deal with the following subjects:—

  • To adopt rules for the orthography of geographic names.

  • To examine cases of doubtful spelling of geographic names and decide on the spelling of such names for use on the official maps of the Department.

  • To investigate and decide on the priority of the discovery of any geographical feature, and recommend the name to be given to such feature.

  • To collect original Maori place-names for record on the official maps.

  • To determine any alien names appearing on the official maps that shall be replaced by Native or British names.

  • To investigate and decide upon any proposed alteration of a geographic name.

The Board consists of well-known authorities in nomenclature, more especially as regards original Maori names, Alpine names, and early navigators' and explorers' names, and a number of corresponding members whose knowledge of certain localities is valuable.

To date about one thousand names have been considered by the Board and decisions given.

PUBLICATIONS.

REPORTS.

An annual report of the departmental activities is published as a parliamentary paper, C.-lA. At irregular intervals a publication called “ The Records of the Survey” is issued, the latest volume being numbered five. The publication of professional papers is now discontinued, these being incorporated in the Records.

MAPS.

The Lands and Survey Department employs a draughting staff specially trained for the purpose of producing maps of various types and scales for publication. A uniform system of lithographic draughting, modelled on the ordnance styles, has been instituted throughout all districts. Gradually the older drawings will be replaced by those drawn in accordance with the uniform system.

The following series of maps are available for sale:—

  1. Cadastral Maps:—

    1. Survey District Maps (1 Mile to the Inch): These maps illustrate the “ survey districts” into which each meridional circuit is subdivided, being generally square with sides of 1,000 chains length and uniform in size. They are drawn for the purpose of illustrating title boundaries and land designations, being of a cadastral nature, showing sections, areas, roads, streams, and - trigonometrical stations.

      In all there are 1,005 survey districts in New Zealand, of which 770 have been drawn and published. The maps not yet published mainly comprise districts which are not closely subdivided or where no detailed surveys have been carried out.

      Survey District maps are extensively used by State Departments and the public for illustrating land title matters and land descriptions.

    2. County Maps (1 Mile to the Inch): These show similar data to that comprised in the Survey District series. They vary in size in accordance with the extent and size of the county illustrated. In most cases they are only a reproduction of the survey districts included within the boundaries of the county. Special drawings of County maps are undertaken only when Survey District maps are not available for reproduction.

    3. City and Town Maps: Maps of the eight cities and about 160 of the boroughs, town districts, and towns have been published on scales of 4 to 10 chains to the inch. These maps show all subdivisions and areas. Maps of Wellington, New Plymouth, Napier, Invercargill, and Timaru, showing streets, public buildings, &c., have also been published.

  2. Territorial Maps:—

    1. 4-miles-to-the-inch Maps: This series of thirty-seven sheets covers the whole of the Dominion, each sheet extending for 2° of longitude and 1° of latitude. The projection is a modified conical projection that permits the whole series to be assembled into a homogeneous whole. These maps are uniform in style, showing topographical details, and are excellent maps for general purposes.

      There is also an old series on this scale which is not uniform in draughting nor in the details shown.

    2. 10-miles-to-the-inch Maps: These are wall maps, published showing each Island separately, two sheets for each. These maps show towns, topographical features, &c., and the counties are coloured.

    3. 16-miles-to-the-inch Map: Also a wall map extensively’ used for general illustrative purposes. It is published uncoloured and coloured, showing the county boundaries.

    4. 1:1,000,000 Scale Map: This series is being drawn as part of the International 1:1,000,000 map (approximately 16 miles to the inch). Three sheets, covering most of the South Island, have been published.

  3. Flying Maps.—A series of six maps covering the whole country on a scale of 8 miles to the inch has been published. These maps are specially prepared for aviators and are printed on lasteen in folders and also in flat sheets.

  4. Topographical Maps.—The first of a series of maps on a scale of one mile to the inch is in course of publication. These maps show contours prepared from aerial photographs, and also all topographical features.

  5. General and Special Maps.—Maps on various scales besides the foregoing have been published. These comprise a pictorial relief map, and other topographical maps of the whole Dominion or of particular areas.

Chapter 18. SECTION XVIII.—AGRICULTURAL AND PASTORAL PRODUCTION.

SUBSECTION A.—GENERAL.

INTRODUCTORY.

THE Dominion of New Zealand is a country specially favoured for primary production. The soil covering is varied in character, a considerable portion of it being of high fertility; but even the poorer soils are largely capable of profitable utilization by reason of the comparatively mild and equable weather conditions. The best grasses and fodder plants flourish in the congenial environment, and the country has gained a world-wide reputation for the quality of its pastures. Numerous streams intersect the country-side; while cheap hydro-electric power is available, most farming districts having been reticulated in recent years. Electricity is now put to a variety of uses on the farm, but by far the most important is that of providing power for milking-machinery.

A conspicuous feature of New Zealand farming is that the stock do not require to be stalled in the winter, though the pastures are more or less supplemented by fodder crops in the colder months of the year.

New Zealand is primarily a grazing country, and, while more of the land is every year being given up to the cultivation of fodder crops, its future will, no doubt, be inseparably associated with stock-raising, principally of dairy cattle and of sheep. Though less than a century has elapsed since the settlement of New Zealand, over seventeen million acres of land in the Dominion have been sown down in English grasses.

Grain crops, principally oats and wheat, are grown chiefly in the eastern and southern districts of the South Island. Barley also is grown, but only to a small extent. Much of the crop of oats produced is chaffed for stock-feeding purposes within the country. Root crops, principally turnips, are grown on a large scale for winter feed and for stock-fattening purposes, more particularly in the South Island. Mangolds are cultivated to an appreciable extent, and farmers realize the great value of lucerne. Ensilage-making, particularly in the stack and trench forms, is increasing in the dairying districts. Quite a feature of milk-producing operations is the growing of green fodder crops to maintain the milk-supply during the drier months of the year. Thus live-stock in New Zealand are for the most part maintained on food produced on the farm itself.

THE NORTH ISLAND.

The North Island of the Dominion is remarkable for the congenial environment it furnishes for many phases of primary production. In very few parts is the winter really severe, and the question of stalling stock during the colder months of the year has not to be considered. It is more a grazing than an agricultural country, and nearly all the crops raised are used for feeding farm stock. The dominant industries are dairying and sheep-farming. There is probably no finer sheep-country in the world than the limestone downs of Hawke's Bay. It may be said with every confidence that there is more butterfat produced to the acre on many farms in the North Island than on any other area in the world, when it is considered that all the food provided for the stock is produced on the farm itself. The standard of dairy-farming is steadily improving, not only by reason of special fodder being provided for the drier parts of the summer and the colder months of the year, but on account of the fact that the farmer has learned the value of herd testing and culling, and the advantages to be derived from the judicious application of top-dressing fertilizers to pastures and from rotational grazing.

In various parts of the Island fruitgrowing, principally of apples, pears, and peaches, is being placed on a sound commercial basis. In the northern portion citrus fruits can be successfully produced, and, with the adoption of better storage and marketing methods, lemons in particular are being cultivated on a considerable scale. Though outdoor grapes are freely grown, little winemaking is undertaken. Both the North and the South Islands have established an export trade in apples, and to a lesser extent in pears.

During recent years the Waikato district and the Auckland provincial district in general have shown themselves to be admirably adapted to the dairy industry, and dairying has made remarkable development. The Auckland district, in fact, has become easily the largest exporter of butter in the Dominion, while it also leads in the production of milk-powder.

With the adoption of improved methods in the treatment of the land, and the demonstration of correct manurial treatment, farming in the Auckland district has been placed on a much more productive basis. Assisted by a favourable climate, of which a short and mild winter is a feature, stock-raising of all descriptions is being carried on with conspicuous success. The country is eminently suited for the production of root and fodder crops, and stock can be brought to maturity and fattened for the market at a minimum of cost.

THE SOUTH ISLAND.

The South Island is the portion of the Dominion where agriculture proper was first established, the settlement of the land being greatly facilitated by the fact that on the eastern, southern, and northern portions large fertile plains, rolling downs, and hills were available, devoid of the forests which in a very large portion of the North Island had to be cleared before the land could be utilized by the farmer. Agricultural operations in the South have been maintained at a high standard for many years, principally in Otago and Canterbury, many of the pioneers of which districts were British yeoman farmers who brought with them the best methods of the Old Land. So in the breeding of live-stock, many of the original holders of land in the South, and the shepherds and herdsmen they employed, had been well trained in stock-management by stock breeders of Great Britain. The South Island may fairly be said to have been the nursery of the live-stock of the Dominion, and the high quality of the stock bred in the country is in a large measure due to the capacity of the men who founded and developed the flocks and herds in the eastern and southern districts. The growing of the finer wools, and the raising of fat lambs for the frozen-meat industry, are features of primary production in the South Island, while the dairy industry is also well represented, especially in Otago and Southland. The breeding of draught horses of a very fine type is carried on to some extent in certain districts.

While the climate in the southern districts of the South Island is not so genial as that in the northern, there are only a few portions where the winter is at all rigorous. The Nelson district, in the north-west corner of the Island, is noted for its fine climate. Nelson has a sunshine-record which is equalled in but few parts of the Temperate Zones. The district is specially suitable for fruitgrowing, which has been developed extensively on commercial lines, and the culture of tobacco-leaf is well established. At the other end of the Island, in Central Otago, a peculiar configuration of the country enables fruitgrowing to be prosecuted with great success. The winter is comparatively severe, but the warm summer sun and the absence of wind make it an ideal environment for fruitgrowing.

In some sections, particularly in Canterbury, Otago, Southland, and Marlborough, grain-growing is prosecuted on a considerable scale. The Canterbury Plains, extending a hundred and fifty miles north and south and running inland for forty miles from the sea, represent an area of over 3,000,000 acres. This region contains the principal grain-growing areas. Wheat and oats are cultivated to a largo extent. In Otago and Southland oats is the grain principally produced. On some of the richer lands the yield of wheat has reached very high figures, oven up to 80 or 90 bushels per acre, while over 100 bushels to the acre have been recorded for crops of oats. In root crops up to 70 tons per acre of turnips have been secured, while the yield of mangolds has frequently reached 90 tons.

DEPARTMENT OF AGRICULTURE.

Under the control of the Minister of Agriculture the Department of Agriculture provides a service of which the main object is the advancement of the interests of primary production. Under a Director-General of Agriculture there are Directors of Divisions of Live-stock, Dairy, Fields, and Horticulture, and also a Chemistry Section.

While the service is primarily educative, it also carries out important inspection work. Under the Live-stock Division, all meat exported is inspected by qualified officers. Cattle are inspected for tuberculosis and other bovine troubles; sheep and swine also receive attention; slaughterhouses are licensed and controlled; and all stock exported and imported is examined by the veterinarians of the Department. Special instruction and advice are given in poultry-keeping, swine husbandry, and wool growing and handling. The Division is provided with a well-equipped laboratory at Wallaceville, Wellington, mainly devoted to veterinary research, &c.

Instruction in the manufacture of butter, cheese, &c., is given by the Dairy Division. Dairy-produce is inspected and graded prior to shipment, a close supervision being also exercised over the moisture content of butter and cheese, as well as over the weights of such produce; dairy-farm premises are inspected; herd-testing is promoted, and a system of semi-official testing of purebred dairy cows is in operation. Milk-samples are tested for dairy companies and farmers.

The duties of the Fields Division comprise agricultural instruction, the control of experimental areas, advice regarding crops, pastures, and farm-management, co-operative experimental work, hemp-grading, and grain-grading. The Division also has charge of the system of seed testing and certification introduced by the Department.

The Horticulture Division is charged with orchard instructional work and instruction to beekeepers and tobacco-growers, and the inspection of fruit and trees imported and offered for sale. It also inspects orchards and apiaries, inspects fruit for export, and grades export honey.

The Chemistry Section carries out analyses of soils, limestones, fertilizers, water, &c., and also the inspection of fertilizers.

The Department's principal farm establishment is the Ruakura Farm of Instruction at Hamilton, in connection with which a farm training-college for youths is also conducted. The Te Kauwhata Horticultural Station, in the lower Waikato district, is mainly devoted to vine-growing and winemaking. There are also several other smaller experimental and demonstration areas.

The agricultural instructional work covers a comprehensive field, fanners being assisted by visits or by letters of advice. Numbers of farmers also co-operate with the Department in conducting experiments on their farms. A monthly Journal, the New Zealand Journal of Agriculture, is published at a low rate of subscription, and bulletins are frequently issued. Any farmer can obtain advice regarding his soil, have seed examined for germination-capacity and purity, milk tested for butterfat content or for the presence of disease, plants identified, and diseases of either animals or plants described and remedies suggested—all these services being rendered free of charge. Among other responsibilities of the Department is the registration of live-stock brands, slaughterhouses, dairies, dairy-factories, fertilizers, orchards, nurseries, apiaries, &c.

SOME ASPECTS OF FARM ECONOMY.

GROSS FARMING INCOME.

Farming occupies such an important position in the economic structure of the Dominion that statistical information relating to farm-production is vested with special interest. The agricultural and pastoral statistics, which form the subject-matter of the next two subsections, deal mainly with the quantitative aspects of farm-production; while, from these statistics and from cognate statistics for other industries, estimates are made of the value of commodity production as a whole—including farm-production (vide Section XLVI). Various other classes of official statistics—for example, prices index numbers—throw some light on the economic position of the farming industry.

The official estimates of the value of agricultural, pastoral, and dairying production do not indicate, nor do they purport to indicate, the amount received by farmers from farm-production. They are necessarily partly based on wholesale prices in the main marketing centres—particularly in the case of agricultural produce.

Reliable statistics as to the returns to the farmer from the various classes of produce are not available over the long period of years for which estimates of value of production have been compiled. In recent years, however, a considerable amount of data as to prices of farm-produce at country railway-stations, &c., has been collected systematically. This, in conjunction with previously existing statistical information, has made possible the computation of estimates of the farmer's receipts from sales of farm-produce. These figures afford a more accurate indication of gross farming income than was formerly available. Owing to the difficulty of obtaining certain essential information for earlier years it has not been practicable to extend the inquiry back beyond the 1928-29 production season. However, since interest in economic statistics is largely centred on the experience of the past few years, it is felt that the results of this inquiry—though at present covering ten production years only—will prove of value.

It must be clearly understood that the figures do not purport to show the aggregate net income from farming after all expenses of farm operations have been met. They are intended to afford an indication of the income available to farmers as a whole to meet current expenses of farm-operation, living-costs, interest payments, and all other costs.

It should be explained also that, except in the cases indicated in the next paragraph, no attempt has been made to exclude from the scope of the compilations that portion of marketable farm-produce which may be consumed on the farm. Similarly, that portion of farm-produce which is sold to other farmers as material for further farm-production is in general included. For example, the value of production of grass-seeds is included under the heading “ Agricultural Produce,” although—except for exports—almost the whole of this crop is used for the sowing or renewal of pasture lands. An exception, however, occurs in the case of stud stock sold tor breeding purposes, no data being available on which to base an estimate of the aggregate annual value of such sales. With this exception, the totals shown for all farm-produce thus represent the total receipts from sales (including sales to other farmers), plus certain allowances for farm-produce used on the farm. On the other hand, products of kitchen-gardens and of other activities more intimately associated with the home than with the farm do not come within the ambit of this inquiry.

Production of green-fodder crops, turnips, mangolds, or ensilage is not included. The view taken is that production of these crops is a normal and essential part of farm routine to be regarded more in the nature of a farm cost than as production of a saleable commodity. Consequently, the unknown—but, it is believed, very small—proportion sold of the total production of this class of farm-produce is omitted from the totals shown. In the case of production of grasses and clovers cut for hay, and of lucerne, it is arbitrarily assumed that 20 per cent., and in the case of chaff 25 per cent., of the total crop comes within the scope of this inquiry, the remainder being omitted for reasons similar to those advanced in the case of green fodder, &c.

The division into the three groups—(1) Agricultural, (2) Pastoral, and (3) Dairying, Poultry, and Bees—has been made entirely on the basis of the nature of the produce.

The principal items included in the Agricultural group are wheat, oats, and other grain crops, grass-seeds, potatoes, onions, tobacco, orchard-produce, and produce of market-gardens, nurseries, hop-gardens, &c. The prices at which the various commodities are valued are, in general, the prices f.o.r. country stations in the early months of the year, when the crops are harvested. In cases where only wholesale or export prices are available—as, for example, for fruit-production—appropriate deductions have been made to ensure that the valuations included in the estimate represent, as nearly as the available data permit, gross returns to the growers.

The estimated cost of sacks, cases, and other containers is excluded, as also are transport charges from farm to market and commission on sales. The fact that the cost of containers is excluded might be regarded as a departure from the general practice adopted in this investigation of omitting to take account of costs incurred on the farm. It should be noted, however, that price quotations for some important classes of agricultural produce—e.g., wheat—are in ordinary commercial practice on a “ sacks extra “ basis, so that the exclusion of the value of containers in the case of other crops has the merit of consistency.

The principal items included in the group “ Pastoral “ are live-stock and wool-production. Slaughterings of live-stock at freezing-works are assessed at the value (alive) at the works; while, in the case of live-stock slaughtered at abattoirs or ordinary slaughterhouses valuations are made on the basis of saleyard prices. In each instance deductions are made to cover the cost of transport from farm to works or saleyards, and of commission on sales of live-stock. The value (on a conservative basis) of live-stock slaughtered for consumption on farms is included. The value of store stock or young lambs sold by one farmer to another is counted only once—that is, when sold for slaughtering as fat stock.

Wool-production is valued at the average prices realized at sales held during each season, the aggregate arrived at representing the value of wool sold in each season at average sale prices ruling during that season. No adjustments are made to cover the unknown increase or decrease in the total ultimate return from the season's production due to higher or lower prices realized for wool carried over and sold in a subsequent season. Deductions are made to cover the cost of transport of wool to selling centres, of the wool levy, of commission, storage, &c., and of woolpacks.

Since these estimates are designed with a view to measuring farm receipts in each year, no allowance is made for the value of the annual increase or decrease in the Dominion's herds, although this item is included in assessing the estimates of value of production included in Section XLVI of this Year-Book.

The largest individual item included in the Dairying, Poultry, and Bees group is the pay-out to suppliers by butter, cheese, and condensed-milk factories during each of the dairy seasons shown. An estimate of the value of human consumption of raw milk (at farm-gate prices) is also included, together with the value of butter produced on farms for home use or for sale. The available data permit of only a rough estimate of the value of bee-products and of poultry-products, which are included in this group mainly for purposes of convenience.

The following table shows the values (in millions of £N.Z.) arrived at for each of ten production years:—

GROSS FARMING INCOME.

Production Year.Agricultural Produce.Pastoral Produce.Produce of Dairying, Poultry, and Bees.All Farm Produce.
 £m.£m.£m.£m.
1928-297.331.625.564.4
1929-307.424.624.456.4
1930-316.718.317.942.9
1931-326.514.717.438.6
1932-336.914.516.537.9
1933-347.023.417.848.2
1934-356.021.818.346.1
1935-367.426.523.957.8
1936-377.236.627.571.3
1937-386.932.028.967.8

The extent of the fall in the value of all classes of farm-produce between the years 1928-29 and 1932-33 was £26,500,000. The value of agricultural produce did not fall to anything like the extent observed in the case of the other two groups. A substantial recovery is evident in the figures for the 1933-34 season.

The 1934-35 season was unsatisfactory in respect of crop production, an exceptionally dry summer being experienced. Wool prices also suffered a set-back, with a consequently lowered value of pastoral production; while in the case of dairy production a somewhat lowered output resulted from checks to the growth of pastures during part of the season. In the latter instance, however, there was some recovery in prices, the value of dairy-produce being slightly higher than in 1933-34. In the. 1935-36 season all three branches of production showed a sharp recovery from the returns recorded in the previous season.

A falling-off in wheat-production led to a small decrease in the total value of agricultural produce in 1936-37, but both the other groups and also the aggregate for all groups showed higher totals than for any of the previous eight years. The increase of £10,100,000 in the value of pastoral production was due to exceptionally good prices for wool and to an improvement in cattle prices.

A further decline in wheat-production in 1937-38, together with lower prices for certain agricultural products, resulted in a lowered value for the agricultural production group. A substantial fall in wool-prices, accentuated by a drop in production, resulted in a decrease of approximately one-third in the gross value of this commodity when compared with the previous year. This fall, however, was offset to a certain extent by increased returns for other products in the pastoral group, principally meat. The increase of £1,400,000 in the dairying, &c., group was brought about by increased prices, production being actually less than in 1936-37.

A clearer idea of changes in the values since 1928-29 is afforded by the following table of index numbers, in which the 1928-29 values are equated to 100.

Production Year.Agricultural Produce.Pastoral Produce.Produce of Dairying, Poultry, and Bees.All Farm Produce.
1928-29100100100100
1929-30101789688
1930-3192587067
1931-3289476860
1932-3395466559
1933-3496747075
1934-3582697272
1935-36101849490
1936-3799116108111
1937-3895101113105

VOLUME OF PRODUCTION, AND PRODUCERS' PRICES.

In order to convey an indication of the extent to which the values shown for more recent seasons have been influenced by movements in the volume of production, and by fluctuations in prices received by producers of farm-produce, index numbers have been compiled showing the movements in volume of production and in prices.

For the compilation of these index numbers, a computation has been made for each of the seasons 1929-30 to 1937-38 showing what the aggregate annual value would have been assuming that prices had remained unchanged at the 1928-29 levels. From the resultant aggregates, index numbers were compiled which measure the movements in the volume of production; for, since prices were assumed to be constant, volume is the only variable factor in the aggregates. The prices index numbers were compiled simply by dividing the value indexes by the volume indexes, thus eliminating the influence of changing volume on total values.

Following are the index numbers on the base: 1928-29=100.

Production Year.Agricultural.Pastoral.Dairying, &c.All Farm Produce.
Volume.Prices.Volume.Prices.Volume.Prices.Volume.Prices.
1928-29100100100100100100100100
1929-309510699791098810286
1930-3110389102571116310663
1931-329693109431155911055
1932-3312377112411315012149
1933-3411286114651415012460
1934-359487113611375312060
1935-3611290120701446512870
1936-3797102123941487313085
1937-389699124811428012783

The volume of agricultural production has fluctuated considerably; the exceptional crops of the 1932-33 season being reflected in an index number 23 per cent. higher than the 1928-29 figure, and 28 per cent. higher than the index for the previous season (1931-32). The 1934-35 season was the poorest during the period under review in respect of the volume of crop-production. The volume of pastoral produce has shown a definite upward trend throughout the period. The index number of the volume of dairy, &c., production showed a steady upward trend until 1932-33, when a sharp increase was shown in the production of dairy-produce. This movement continued in 1933-34, with the result that this group showed in that season an increase of 41 per cent. over the volume of production in 1928-29.

The 1935-36 season was a most satisfactory one in respect of the volume of production. For both pastoral and dairying production, and also for the aggregate of farm-produce, the volume was higher in 1935-36 than in any of the seven preceding seasons. This improvement was carried into 1936-37, the fall in the volume of agricultural production in that year being due chiefly to the smaller harvest of wheat and grass-seed crops. In 1937-38 a further decline in wheat-production was primarily responsible for a one-point decrease in the volume of agricultural production. The pastoral group showed a slight increase, but a decrease of 2.3 per cent. in the number of cows in milk during the season resulted in a considerably lowered volume for the dairying, &c., group.

The price indexes show, with the exception of agricultural prices in 1936-37, considerable falls as compared with prices realized during the 1928-29 season. In 1932-33—the low point in respect of prices of farm-produce—prices of pastoral produce were 59 per cent. below the 1928-29 level, while dairy-produce prices were 50 per cent. below, and agricultural produce prices 23 per cent. below, prices realized for these classes of farm-produce, in 1928-29. Despite an aggregate increase of 21 per cent. in the volume of production of farm-produce as compared with production in the 1928-29 season, the aggregate return was 41 per cent. below the 1928-29 total, prices having fallen by 51 per cent. Both the 1933-34 and 1934-35 seasons showed a considerable improvement on the 1932-33 figures. The price-level in 1933-34 showed a sharp increase, due to a substantial recovery in wool-prices, dairy-produce prices remaining depressed. In 1934-35 wool-prices suffered a setback, while dairy-produce prices recovered somewhat. A recovery in wool-prices and a higher level of dairy-produce prices were reflected in the prices index-numbers for 1935-36, and there was a further substantial improvement in 1936-37. The rise in agricultural prices for 1936-37 was a reflection of the lowered volume of agricultural production in that season.

Although agricultural prices fell slightly in 1937-38, the index for that year was only slightly below the 1928-29 level. Meat-prices again showed an improvement on those of the previous year, but this was not sufficient to offset the sharp decline in wool-prices, the index for the pastoral group as a whole declining by nearly 14 per cent. Prices of dairy-produce showed a continuation of the upward movement which commenced in 1934-35, but were still 20 per cent. below the 1928-29 level.

From the aggregate values compiled for the purpose of measuring movements in the volume of farm-production, the following estimates (shown in the form of percentages of total farm-production) of the relative volume of agricultural, pastoral, and dairying, &c., production in each of the years covered by this inquiry have been computed. The percentages of the aggregate values are also shown.

PERCENTAGES OF TOTAL VOLUME AND VALUE OF FARM -PRODUCE.

Production Year.Agricultural.Pastoral.Dairying Poultry, and Bees.All Farm Produce.
Volume.Value.Volume.Value.Volume.Value.Volume.Value.
1928-29121150493840100100
1929-30111349444043100100
1930-31111549434042100100
1931-32101750384045100100
1932-33121847384144100100
1933-34101446494437100100
1934-3591347474440100100
1935-36101347464341100100
1936-3791048514339100100
1937-3891049474243100100

THE SPREAD IN PRICE-LEVELS.

The statistics quoted under the previous headings illustrate the growth in farm-production since the 1928-29 season, the changes in gross farming income, and the movement in producers' prices of farm-products. While the fall in gross farming income between 1928-29 and 1932-33, despite a considerably enhanced volume of farm-production, suggests in itself a period of difficulty for the farming community, the divergence between price-levels of farm-products, most of which are sold in overseas markets, and internal price-levels generally is the real crux of the agrarian problem in time of depression. Prices of farm-products are particularly sensitive, since the demand for and the supply of most products of the soil are not easily equated. Changing demand conditions for farm-products do not readily result in any compensatory supply changes, nor do changing supply conditions readily bring about compensatory demand changes. The slack is commonly taken up through fluctuating prices. On the other hand, the cost of debt charges docs not fluctuate so readily, while prices of services and of manufactured goods are also less sensitive than prices of farm-products. An indication of the spread between indexes reflecting farming returns and internal price-levels is shown by the figures in the following table:—

Production Year.Index Numbers indicative of—
Farming Returns.Internal Price-levels.
Gross Farming Income.Farm Producers' Prices.Farm Expenditure Index (Average of Two Calendar Years).Retail Prices (Four Quarters ending May).
1928-29100100100100
1929-30888610099
1930-3167639594
1931-3260558487
1932-3359497380
1933-3475607080
1934-3572607081
1935-3690707384
1936-37111858289
1937-38105839093

While the farm expenditure index (briefly described in Section XXXVI) only partly reflects any increases in costs at the farm caused by a higher volume of farm-production, the considerable proportion of total farm costs made up of fixed charges which do not increase in direct ratio with increases in the volume of farm-production is included in this index. Comparison between the farm expenditure index and the gross farming income index will thus afford a rough comparison of movements in farm costs and returns. It should be noted that these index numbers indicate the position generally, and do not necessarily apply to individual branches of farm-production. Some figures on the question of dairy-farm costs were included in Subsection D (pp. 429-448) of this section in the 1938 issue of the Year-Book.

The retail prices all-groups index is the best available indicator of movements in internal prices generally, and, consequently, this index, when compared with the farm-producers' prices index, affords a useful comparison between movements in prices received by the farmer and in internal prices. As will be apparent from the figures shown under the next sub-heading, returns in respect of sales of farm-produce have been governed largely by price-movements overseas, whereas farming-costs are affected more intimately by internal price-movements. Reference should also be made to Section XXII, which contains, inter alia, tables of index - numbers indicating recent movements in the prices of materials and products in a selection of factory industries.

FARM-PRODUCTION: EXPORTS AND DOMINION CONSUMPTION.

The following statistics illustrating the relative importance of exports and of consumption within New Zealand in the disposal of farm-produce have been compiled by utilizing the statistics of gross farming income, in conjunction with statistics of trade in farm-products.

In the discussion covering the statistics of gross farming income it is explained that these estimates were framed on the basis of “ on the farm “ values in order that they might indicate the gross receipts by the farmer, after making provision for transport charges and other expenses incurred in the marketing of produce.

In compiling the statistics of the relative importance of the New Zealand market and of export markets for farm-products, the value of exports has been assessed at the “farm” value of the commodities concerned, and not at the f.o.b. declared value for export. This adjustment has been made in order to ensure that both sets of statistics from which the comparison is made are on the same value basis. It will be realized, then, that the statistics of value given in this statement indicate the gross returns to the farmer from farm-products exported and from consumption of such products within the Dominion.

The statistics of the return to the farmer in respect of New Zealand consumption of farm-produce have been obtained by deducting exports from total production. In these compilations exports of milk-products have been converted to a butterfat equivalent, the return to the farmer being computed on the basis of butterfat pay-out; while, again, the slaughterings represented by exports of meat products have been taken as the basis on which to estimate the farmers' receipts from exports of meat. Where statistics of stocks held over from one season to another are available, adjustment has been made for this factor. Since the estimates of Dominion consumption are thus the residual element in the process of compilation, any lack of correspondence between the statistics of production and of trade will affect the accuracy of these estimates. Statistics of production relate to the production-year for each commodity, or group of commodities, coming within the scope of this investigation. In many instances the production-years do not cover identical twelve-monthly periods, so that the aggregate of production of farm-produce includes statistics for a number of yearly periods ending in different months.

Exports during any one year do not consist entirely of commodities produced within the same twelve-monthly period to which the export statistics relate, and in some instances stocks held over may amount to an appreciable portion of total production. It will be seen, then, that estimates of Dominion consumption of New Zealand farm-produce, based on differences between production and export statistics, cannot be made with any close approach to accuracy for a single year. This is particularly apparent in the case of commodities of which consumption within the Dominion is but a small proportion of total production—e.g., cheese. Consequently the estimates published in this statement are based on the averages of statistics for three production and three export seasons, in order to minimize the effects of any such lack of comparability between the two sets of statistics.

The following table based on the averages of statistics for three production and three export seasons shows the division of gross farming income into returns from exports of farm-produce, and from consumption of such produce within the Dominion.

Three Production Years.Annual Average Gross Farming Income fromPercentages of Gross Farming Income from
Total Production.Exports.New Zealand Consumption.Exports.New Zealand Consumption.
 £m.£m.£m.Per Cent.Per Cent.
Agricultural Produce.
1928-29 to 1930-317.10.76.41090
1929-30 to 1931-326.90.76.21090
1930-31 to 1932-336.70.85.91288
1931-32 to 1933-346.80.86.01288
1932-33 to 1934-356.70.85.91288
1933-34 to 1935-366.80.86.01288
1934-35 to 1936-376.90.76.21090
1935-36 to 1937-387.20.86.41189
Pastoral Produce.
1928-29 to 1930-3124.918.56.47426
1929-30 to 1931-3219.214.15.17327
1930-31 to 1932-3315.811.54.37327
1931-32 to 1933-3417.513.73.87822
1932-33 to 1934-3519.915.64.37822
1933-34 to 1935-3623.919.14.88020
1934-35 to 1936-3728.322.85.58119
1935-36 to 1937-3831.725.46.38020
Dairying, Poultry, and Bees.
1928-29 to 1930-3122.615.27.46733
1929-30 to 1931-3219.913.66.36832
1930-31 to 1932-3317.311.85.56832
1931-32 to 1933-3417.212.34.97228
1932-33 to 1934-3517.512.64.97228
1933-34 to 1935-3020.014.75.37327
1934-35 to 1936-3723.216.96.37327
1935-36 to 1937-3826.819.67.27327
All Farm Produce.
1928-29 to 1930-3154.634.420.26337
1929-30 to 1931-3246.028.417.66238
1930-31 to 1932-3339.824.115.76139
1931-32 to 1933-3441.526.814.76535
1932-33 to 1934-3544.129.015.16634
1933-34 to 1935-3650.734.616.16832
1934-35 to 1936-3758.440.418.06931
1935-36 to 1937-3865.745.819.07030

Of the total gross farming income during the ten production years 1928-29 to 1937-38, 66 per cent. came from exports of farm-produce, while 34 per cent. was accounted for by consumption of such produce within the Dominion.

An indication of movements in the quantity of New Zealand farm-produce exported and consumed in the Dominion is afforded by the following table of index numbers of values at 1928-29 prices, based on the averages of statistics for three production and three export seasons. In instances where statistics of stocks are available adjustment has been made for the carry-over from one season to another. It has been assumed that stocks of frozen meat and butter and cheese carried over are held for export, and that stocks of wheat and oats are subsequently consumed within New Zealand.

Three Production Years.Index Numbers of Volume of Farm-production.
Total.Exported.Consumed in New Zealand.
Total.Per Head.
Agricultural Produce.
1928-29 to 1930-31100100100100
1929-30 to 1931-32991049897
1930-31 to 1932-33108122107104
1931-32 to 1933-34111139108105
1932-33 to 1934-35110135108104
1933-34 to 1935-36106117105100
1934-35 to 1936-3710210410196
1935-36 to 1937-3810310910296
Pastoral Produce.
1928-29 to 1930-31100100100100
1929-30 to 1931-321031058887
1930-31 to 1932-331071108987
1931-32 to 1933-341111168380
1932-33 to 1934-351131178784
1933-34 to 1935-361161218379
1934-35 to 1936-371181248378
1935-36 to 1937-381221288479
Dairying, Poultry, and Bees.
1928-29 to 1930-31100100100100
1929-30 to 1931-32105105103102
1930-31 to 1932-33112112111108
1931-32 to 1933-34121127109106
1932-33 to 1934-35128136111106
1933-34 to 1935-36132142111105
1934-35 to 1936-37134142118111
1935-36 to 1937-38135143121113
All Farm Produce.
1928-29 to 1930-31100100100100
1929-30 to 1931-321031059897
1930-31 to 1932-33109111104102
1931-32 to 1933-3411512010399
1932-33 to 1934-35118125104100
1933-34 to 1935-3612112910297
1934-35 to 1936-3712313110498
1935-36 to 1937-3812513310699

A comparison of the proportions of farm and other produce exported and locally consumed is included in a later section. (Section XLIII.—Consumption of Commodities.)

The difficulties which have beset the farming industry in recent years and the dependence of the farm economy of the Dominion on export markets will be realized from data discussed under the preceding headings. An account of the readjustments in agricultural policy made in order to combat these difficulties follows under the heading “ Recent Developments in Agricultural Policy.”

USE OF FARM MACHINERY.

The following table contains a summary of farm machinery employed on holdings outside borough boundaries during each of the last five years. The increasing use that is being made of electricity and of mechanical equipment is clearly demonstrated, particularly in regard to agricultural tractors and electric motors. During the last two years covered by the table the number of tractors increased by over 40 per cent., while during the last five years the increase was 62 per cent. The increase in the number of electric motors between 1936 and 1938 amounted to 30 per cent., and during the last five years to no less than 72 per cent.

Class of Machinery, &c.1934.1935.1936.1937.1938.
Number.
Milking-plants25,17825,63026,18127,33128,192
Cream-separators55,62555,92056,19956,85056,543
Shearing-machines—     
Plants7,8948,1748,4688,8679,680
Stands22,48222,98223,52624,22925,685
Agricultural tractors5,0625,3495,7106,5858,030
Electric motors29,16431,63135,42640,20146,100
Internal-combustion engines21,75822,11722,15922,35822,573

The 28,192 milking-plants in use in 1938 had a capacity for milking 96,750 cows simultaneously. The total number of cows milked on holdings employing milking-plants was 1,410,889. The aggregate horse-powers of the agricultural tractors, electric motors, and internal-combustion engines shown above were 139,269, 52,037, and 70,813 respectively.

RECENT DEVELOPMENTS IN AGRICULTURAL POLICY.

INTRODUCTORY.

The prosperity of New Zealand is to such a large extent dependent on the well-being of the fanning industries that measures designed towards the furthering of farm-production have always occupied a prominent place in the policies of successive Governments. In the early stages of rural development in this country land-settlement schemes to encourage the expansion of the area under cultivation, and State assistance in the form of cheap long-term financing of the purchase and development of lands suitable for farming purposes, were focal points in agricultural policy. Closer settlement of rural areas, with a view to the establishment of a numerous class of independent farmers and the full utilization of farm lands to the maximum stage of efficiency, has always been a major aim in agricultural planning.

Active intervention by the State in the marketing of primary products was made necessary by the exigencies of the 1914-18 war period; but such measures as were designed to this end, were naturally of a temporary nature. From 1921 onwards, however, the orderly marketing of the products of the soil has been a definite and important part of the State long-term policy in relation to agriculture. The Meat-export Control Act was passed in the 1921-22 session, while the Dairy-produce Export Control Act followed in 1923. Other statutes of a like nature apply to various other farm-products. A most important measure, the Primary Products Marketing Act, was placed on the statute-book in May, 1936. The Act was designed to make better provision for the marketing in New Zealand, as well as overseas, of dairy-produce and other primary products, and to ensure for producers an adequate remuneration for the services rendered by them to the community. A résumé of the main provisions of the Act appears later in this section. State assistance towards rationalizing marketing was also an important part of the legislative programme designed to cope with agrarian problems arising out of the depression.

Although Governmental assistance in long-term finance to fanners and others was provided for as early as 1894, when the State Advances Act was passed, it was not until 1927 that the State intervened in the short-terms rural-credit market; the Rural Intermediate Credit Act passed in that year being designed to add to the then existing facilities for this type of finance. The administration of this Act is now one of the functions of the State Advances Corporation.

For many years the continuous expansion of the area under cultivation was the major cause of a growing volume of farm-production; but as the more favoured localities became fully settled the impetus to a still growing farm output came largely from the application of modern scientific methods to farming operations. Agricultural research and its practical application have been fostered by the Department of Agriculture since its inception, with a consequent improvement in the technique of farm-production generally throughout the Dominion.

Live-stock production has been the predominating type of farming in New Zealand for many years past, although crop-production was very important in the early days of the colony before refrigeration rendered possible the development of export markets for perishable farm-products. The farm-lands of this country are, except in restricted areas, more suited to the growing of pasture grasses than to crop-cultivation; and while the yields of the various crops have shown improvement with advances in farm practice and the improvement in seed types resulting from research activities, the main concentration of effort until recently was towards the raising of the productivity of grass lands and the expansion of areas under pasture.

Crops are normally produced in sufficient quantities to supply home requirements, with the exception that importations of wheat and flour are sometimes necessary. In the case of the more perishable crops, such as potatoes and onions, there is considerable elasticity in price between one season and another, depending on the scantiness or fruitfulness of the harvest. Exports are normally small, except for apples and, to a lesser extent, pears and grass and clover seeds, in which commodities a considerable export trade has been built up. The export marketing of fruits is controlled by a Board set up after the passing of the Fruit Control Act in 1924. Dominion imports of agricultural produce are limited mainly to tropical foodstuffs, although in years of poor wheat harvests there is a considerable import of wheat — principally from Australia. Again, during the off-season, imports of certain commodities, notably onions, are sometimes necessary. Broadly speaking, however, the Dominion may be regarded as practically self-contained in respect of crop production and consumption. State intervention in the local marketing of agricultural produce was one of the necessary temporary measures taken during the war years (1914-18). During the post-war period no measures of importance were taken in that direction, but a considerable surplus of wheat in the 1932-33 season led to the establishment of a Wheat Purchase Board (reconstituted as the Wheat Committee in 1937) to regulate wheat prices, and to control the purchase and disposal of wheat. The wheat-growers have been protected for some years past from the full impact of outside competition by a sliding scale of duties on imports of wheat and flour, designed to maintain a payable price in the Dominion. The sliding scale of duties was introduced in 1927, replacing the pre-existing tariff. An Order in Council, which came into force in March, 1936, prohibits the importation of wheat or wheat flour except where a written permit has been issued by the Department of Industries and Commerce. It is the intention of the Government to rationalize the wheat industry and to ensure a market for local growers. Investigations towards achieving these objects are being carried out. The import duties on the other principal crops are—Potatoes: General Tariff, £1 per ton; Australian Trade Agreement rate, £2 10s. per ton. Onions: General, £4 per ton*;

* Regulations gazetted in March, 1937, prohibit importations other than with the consent of the Minister of Customs.

British Preferential Tariff, £1 per ton. Oats: General 2s. per cental, Australian Trade Agreement rate, 1s. 6d. per cental. Apples: General, 1½d. per pound; British Preferential Tariff, 1d. per pound. Except in years of poor crops, imports of these commodities are inconsiderable.

From the statements contained in the preceding paragraph, it will be realized that marketing and other problems arising from crop-production are largely of a purely domestic nature, for there is comparatively little direct competition with or from overseas sources. Attention should, however, be drawn to the fact that the alternations of prosperity and depression in the live-stock industries catering mainly for the export markets affect the acreages under crops—such as wheat, potatoes, and onions, all of which are grown for the Dominion market—so that crop-production for home consumption may be influenced very considerably by conditions in world markets for live-stock products. Marketing and other schemes initiated primarily for the support of the export industries may, if effective, have, indirectly, a considerable beneficial effect on the money returns in respect of crop-production, especially for human consumption. On the other hand, if a policy of restriction of exports of live-stock products became necessary, certain types of crop-production would be seriously affected directly, since a substantial portion of the yields of existing areas devoted to the growing of such crops is utilized for stock-feeding purposes.

While the New Zealand market dominates in the disposal of crops, almost 90 per cent. of gross receipts from sales of produce coming from consumption within the Dominion, live-stock production (which accounted during 1928-29 to 1937-38 for approximately 87 per cent. of the aggregate gross money returns from farm-production) is particularly dependent upon the export markets—over two-thirds of the total return from live-stock products emanating from sales abroad. The expansion of the volume of live-stock production was, until recently, a dominating force in Government policy measures designed to further farming interests; but the agrarian problems of New Zealand have changed very materially during the last few years, rendering necessary a re-orientation of policy, with a shift of emphasis towards the marketing side of farm economy.

Since the 1914-18 war, world markets have been increasingly affected by the development of national policies aimed at economic self-sufficiency. Specialization demands an increasing interchange of commodities over national borders, while the furtherance of nationalistic ideals of a “ balanced economy “ must be accompanied in the long rim by a diminishing quantum of world trade. The full consequences of this growth of economic nationalism wore partially disguised during the period of comparative prosperity and rapid industrial development; but the advent of the world depression greatly accelerated the process of diminution of world trade.

New Zealand has devoted much attention to the development of the industry to which, by climatic circumstances, she is most peculiarly suited—the production of pastoral products—and is consequently particularly dependent on external trade—the disposal of the large surplus of pastoral produce at remunerative prices being essential to meet the cost of commodity imports and a heavy adverse balance in respect of freight charges, interest on overseas indebtedness, and other invisible items. The collapse in prices in 1930—symptomatic of the development of a world-wide economic crisis—was felt with special severity in primary-producing countries, since the level of prices of farm-products and other relatively unfinished goods fell at a much more rapid rate than prices of finished goods and services. Consequently, a widening disparity between farm costs and farm returns rapidly precipitated an agricultural crisis not only in New Zealand but also in all other countries materially dependent on world markets for farm-produce.

State assistance towards the re-establishment of farming rapidly became a world-wide feature of economic policy, consuming countries endeavouring to check imports of farm-products, as part of a policy to restore trade balances, and at the same time endeavouring to increase the flow of home-produced agricultural products by subsidies and other devices. In exporting countries a variety of measures to cope with a situation of extreme urgency was adopted; direct subsidies on a large scale, currency depreciation, guaranteed returns to producers, and plans for the reduction of farm costs being the main avenues of approach.

The crisis in the agricultural situation in New Zealand passed with the marked improvement in wool-prices in the 1933-34 selling season, while in 1934-35 dairy-produce prices recovered somewhat: so that, despite a somewhat adverse season in point of volume of farm-production and a setback in wool-prices, the outlook for New Zealand's farming industry had changed materially for the better. With the further improvement in the 1935-36 and 1936-37 seasons, the emphasis in the planning of the farm economy of the Dominion shifted from problems of immediate urgency to long-range plans.

In the following pages an outline of recent legislation and other governmental action having a direct bearing on the farming situation is given. In some instances the statutes have application to other sections of the community as well as the farm population. Reference should be made to a similar article in the 1936 issue of the Year-Book (pp. 321-336) for an account of measures taken between 1929 and 1935 to alleviate the effects of the depression period on the farming community. Only a brief résumé of the contents of the above article is given in this issue, since changed circumstances—including the advent of a Labour Government in November, 1935—have rendered much of the material of historical rather than of current practical interest.

Recent legislation designed to cope with agrarian problems has three main objectives—(1) The stabilization of future returns from farming operations; (2) the final clearing-up of the burden of excessive indebtedness; and (3) the provision of cheap finance for farming and other purposes. It is of service to note also at this stage that legislation has been placed on the statute-book regulating the wages and conditions of employment of farm workers. (See Section XXXVIII.)

MARKETING.

The progressive imposition of import duties on farm-products has reached the stage of amounting to a virtual prohibition of imports in many countries which were previously important avenues for the disposal of exports of such commodities. In addition, the quantitative regulation of farm-produced imports has become a major feature of the economic policies of consuming countries, thus further reducing the potential markets of exporting countries. These developments have created a marketing problem of considerable urgency, and efforts to preserve existing markets and to establish new markets have occupied a prominent place in governmental plans for the re-establishment of the farming industry in the Dominion.

New Zealand's major exports of farm-products are at present wool, butter, cheese, and meats, and, of these commodities, wool alone has an international market, the problem of disposal of the wool-clip being affected rather by the state of world activity in the woollen-manufacturing industries than by import restrictions and quotas. The export market for butter, cheese, and meats is now practically confined to the United Kingdom. With the decline in consumption of these commodities in continental countries, partly as a result of the decline in purchasing-power caused by the depression and partly as a consequence of the artificial raising of agricultural prices by duties and import restrictions, much produce which previously found an outlet in those countries was diverted to the United Kingdom; while a further factor affecting the United Kingdom market has been the increase in production in the major exporting countries. British plans for the rehabilitation of agriculture were seriously hampered by the increased influx of farm-produce from abroad, with the consequent lowering of prices on a market which became oversupplied, despite increased consumption of certain farm-produced commodities—notably butter. Import duties and restrictions on imports of such products have in consequence become an integral part of British policy in relation to agriculture.

The necessity for developing new markets as an outlet for part of the Dominion's exports of dairy products and meats has become a major problem, but plans directed towards this end must inevitably take considerable time before reaching fruition. The immediate problem of retaining New Zealand's share in the British market has been the subject of prolonged negotiations over a considerable period. A résumé of the agreements arrived at to that end was included in the 1936 issue of the Year-Book, pp. 329-332. With the increased prosperity in the United Kingdom and the launching of plans to protect British agriculture—e.g., the Milk-marketing Scheme—the immediate danger of drastic reduction in our exports of farm products to that country passed. In practice there were no actual restrictions of New Zealand imports into the United Kingdom prior to 1939 apart from relatively minor restrictions on beef shipments and the regulation of marketing of certain other products. Early in 1939, however, the United Kingdom Government announced that imports of frozen mutton and lamb from Australia and New Zealand were to suffer a reduction of 3 per cent. below the previous year's quotas, while imports from foreign countries were to be cut by 10 per cent.

The most significant recent development in the marketing of New Zealand farm-produce is the Primary Products Marketing Act (described under the subheading immediately following), by virtue of which the marketing of dairy-produce for export became a function of the Government. The expressed intention of the Government is to centralize the marketing of primary products, guaranteeing a stated price for such products, so that the farmer's energies may be fully directed to farming operations, freed from the anxieties attendant on the varying overseas price of his products and the difficulties of marketing. At the same time it is considered by the Government that centralized control of marketing presents many other advantages. A section in the Primary Products Marketing Act of particular interest in this connection is quoted in full:—

  • "(1) With a view to facilitating the making by the Government of New Zealand of agreements with the Governments of other countries for the promotion of reciprocal trade, it shall be one of the functions of the Minister, on behalf of the Government of New Zealand, to enter into negotiations, as and when he thinks it opportune so to do, with the accredited representative or with accredited representatives of the Government of the United Kingdom or of any other part of His Majesty's dominions, or the Government of any other country.

  • “(2) The basis of any such agreement shall be that, in consideration of the purchase by the Government of any such country of any primary products of New Zealand, or in consideration of the establishment or maintenance in any such country of favourable marketing conditions for any primary products of New Zealand, the Government of New Zealand will undertake to arrange, through the Reserve Bank of New Zealand, that the whole or a substantial part of the financial credits thereby established in such country will be utilized for the purchase of approved goods or classes of goods being the produce or manufacture of that country.”

PRIMARY PRODUCTS MARKETING ACT , 1936.

The purpose of this Act is, in the words of the title, “ to make better provision for the marketing of dairy-produce and other primary products so as to ensure for producers an adequate remuneration for the services rendered by them to the community.” As a means to that end it is considered by the Government that it is essential in the public interest that producers of primary products should, as far as possible, be protected from the effect of fluctuations in the market-prices of such produce.

The preamble to the Act states, inter alia, that “it is thought that the most effective and appropriate way of affording such protection, so far as relates to primary products intended for export, is to provide that the Government, on behalf of the Crown, shall acquire the ownership of such products at prices to be fixed and promulgated from time to time; and, so far as relates to primary products intended for consumption in New Zealand, is to empower the Government in its discretion either to acquire the ownership thereof at fixed prices or to control the sale and distribution thereof.”

To achieve the objects of the Act, administrative machinery was set up under the control of a Minister of Marketing, a new Department of State being created, called the Primary Products Marketing Department (now the Marketing Department). The principal functions of this Department are “ to make all necessary arrangements” with respect to—

  1. The acquisition, on behalf of the Crown, of any primary products in accordance with the Act, or in accordance with any other lawful authority that may be conferred:

  2. The marketing in New Zealand or overseas of primary products, whether or not such products have been acquired on behalf of the Crown.

Provision for the appointment of a Director of Marketing and one or more Assistant Directors was made in the Act, the Director being the administrative head of the Department. All the functions of the Department may be exercised by the Minister, who may delegate to the Director such of his powers as he thinks fit.

A further provision of the Act was that the functions of the Executive Commission of Agriculture, set up under the Agriculture (Emergency Powers) Act, 1934, were to be transferred to the new Department. The Executive Commission, however, continues to operate until abolished by Order in Council.

The administrative machinery created by this Act is framed in such a manner that any or all primary products may be brought within the purview of the activities of the Department; but its immediate purpose was to put into action definite plans in respect of dairy-produce, and to assist the Government in formulating plans in respect of other primary products. The priority in making provision for dairy-produce was directly attributable to the fact that dairy-farming was considered to be in more urgent need of immediate protection than the other major branches of the Dominion's farm economy. By Order in Council dated 25th October, 1939, the Marketing Department has been authorized to purchase meat either for sale in the Dominion or for sale or delivery to the United Kingdom Government. This action, however, is more of the nature of an emergency measure for war purposes. The Department's organization is also being used in connection with the purchase of wool and other products by the United Kingdom Government during the period of the present war.

An amending Act passed in 1937 constituted three separate divisions of the Primary Products Marketing Department—viz. (a) The Dairy-produce Export Division; (b) the Internal Marketing Division; and (c) such other Division or Divisions (if any) as may be hereafter constituted; and provided for the appointment of a Director of each Division. Since its creation the Internal Marketing Division has taken action in regard to the orderly marketing, &c., of eggs, honey, fruit (including locally-grown lemons), hops, maize, and bobby calves. The functions of the Internal Marketing Division are described later in this section.

By the Marketing Amendment Act, 1939, the title of the Department has been changed to the Marketing Department, while the Dairy-produce Export Division will in future be known as the Export Division. The functions of the Department have been extended so that it may deal with any specified goods instead of only with primary products as hitherto.

MARKETING OF DAIRY-PRODUCE.

The principal Act contains definite proposals for the marketing of dairy-produce. The most important provisions in this portion of the Act apply to all butter and cheese manufactured from milk or cream delivered to a dairy factory on or at any time after 1st August, 1936. The Minister is empowered to make such arrangements as he thinks proper for the following matters:—

  1. The handling, pooling, transport, and storage of any dairy-produce to which the Act applies:

  2. The shipment of any such dairy-produce that is intended for export on such terms and in such quantities as he thinks fit:

  3. The insurance against loss of any such dairy-produce:

  4. Generally all such matters as are necessary for the exercise of any of the powers expressly conferred in the Act.

All dairy-produce—to which this part of the Act applies—intended for export becomes the property of the Crown as soon as it is placed on board ship. The Act provided that the prices fixed for dairy-produce exported on or before the 31st July, 1937, were to be fixed after taking into account the “ prices received in New Zealand in respect of dairy-produce of the same or approximately the same kind, grade, and quality exported from New Zealand during a period of from eight to ten years immediately prior to the thirty-first day of July, nineteen hundred and thirty-five.”

The actual prices declared under this subsection of the Act were announced in the Budget presented by the Minister of Finance on 4th August, 1936. They are given under the next subheading.

In fixing prices of dairy-produce exported after 31st July, 1937, regard is taken of the prices fixed for the 1936-37 season, while the following additional considerations are set out in the Act:—

  1. The necessity in the public interest of maintaining the stability and efficiency of the dairy industry:

  2. The costs involved in the efficient production of dairy-produce:

  3. The general standard of living of persons engaged in the dairy industry in comparison with the general standard of living throughout New Zealand:

  4. The estimated cost to the Department of marketing the dairy-produce concerned, and also the cost of the general administration of the Act:

  5. Any other matters deemed to be relevant.

The procedure in respect of dairy-produce intended for consumption in New Zealand is somewhat different from that specified in respect of exported produce. The Minister may acquire such produce on behalf of the Crown, but is not obliged to do so. The prices in respect of dairy-produce intended for consumption in New Zealand may be fixed by the Governor-General in Council whether it has been or is intended to be acquired by the Crown, or is sold or intended for sale otherwise than to the Crown. The general purpose in fixing such prices is to ensure a return to the producer equivalent to that received in respect of produce for export (vide comments under the caption “Internal Marketing” on pages 423 and 424).

Provision was made in the Act for the opening of a Dairy Industry Account with the Reserve Bank, as an essential prerequisite to the working of the Act. All receipts and all disbursements in connection with the Act pass through this account. In another Act—the Reserve Bank Amendment Act, 1936—the bank is empowered, inter alia, to grant to the Government accommodation by way of overdraft in aid of the Dairy Industry Account.

The amending Act of 1937 made provision for the opening of an Internal Marketing Account, while the Marketing Amendment Act, 1939, provides that there may be established in the Reserve Bank one or more special accounts, as the Minister from time to time may determine.

Part III of the Act of 1936 reconstituted the Dairy Board. The number of members was reduced from seven to five, including one member appointed by the Governor-General in Council—under pre-existing legislation there were three Government nominees. Dating from the 1st August, 1936, the Board may not exercise any of its powers, functions, or discretions except with the approval of the Minister of Marketing.

GUARANTEED PRICES.

Following the coming into operation of the Primary Products Marketing Act, guaranteed prices in respect of butter and cheese for export have been fixed for the 1936-37 and subsequent seasons. The table following shows the range of prices fixed for these seasons.

Guaranteed f.o.b. Purchase Prices. per Lb.

Grading.Season.
1936-37.1937-38.*1938-39.1939-40.
* Inclusive of additional payments of 0.41d. (butter) and 0.21d. (cheese) announced at the end of the season—payable over the whole season's output.
Creamery Butler.
Finest—d.d.d.d.
94 points and over12.687513.78515.01515.015
93 to 93½ points (basic grade)12.562513.6614.8914.89
First—    
92 to 92½ points12.513.597514.827514.8275
90 to 91½ points12.312513.4114.6414.64
Second11.812512.9114.1414.14
Whey Butter.
First11.562512.6613.8913.89
Second11.062512.1613.3913.39
Cheese.
Finest—    
94 points and over6.968757.906258.576258.57625
93 points to 93½ points6.93757.8758.5458.545
First—    
92 to 92½ points (basic grade)6.81257.758.428.42
91 to 91½ points6.757.68758.35758.3575
Second6.56257.508.178.17

Provision is also made for specified additional payments in connection with butter and cheese manufactured, with the approval or at the request of the Primary Products Marketing Department, to comply with certain specified standards in regard to packing, manufacture, &c.

The basic guaranteed price for cheese was fixed for the 1936-37 season at a level estimated to return to the farmer supplying a cheese-factory lid. per pound more for his butterfat than the return in respect of milk or cream delivered at a factory for buttermaking. The differential margin was intended to compensate suppliers for the relatively higher cost of cheese-making and the loss of by-products, such as skim-milk, &c. The Government, after careful consideration of all the circumstances, raised this differential margin to 2d. per pound for the 1937-38 and two following seasons.

The average pay-out by dairy companies for butterfat supplied during the 1936-37 season was 13.558d. per pound for buttermaking, and 15.176d. per pound for cheesemaking. The corresponding payments for the 1937-38 season were 14.81d. and 16.39d. per pound for buttermaking and cheesemaking respectively. The estimated returns for the 1938-39 season, based on the standard conversion formulæ are 15.88d. per pound for buttermaking and 17.88d. per pound for cheesemaking, but in the experience of the two previous seasons the actual payments should be slightly in excess of the estimates.

In arriving at the prices for the 1938-39 season, the following allowances per pound of butterfat—for farms supplying butter-factories—were made for the farmers' production-costs:—

 d.
Working and maintenance5.424
Capital charges3.214
Labour8.782
..17.420
Less return from pigs1.540
..15.880

The Government has announced that circumstances do not warrant any increase for the 1939-40 season, the rates fixed being exactly the same as for 1938-39.

The financial operations of the Dairy Industry Account for the export season ended on 31st July, 1937 (the first complete season in which the guaranteed prices plan was in operation), resulted in a deficit in the year's operations amounting to £272,482. In accordance with an undertaking given to the dairy industry, the Government bore the whole of the loss on the first year's working.

Owing to an appreciable increase in prices on the London market, the realization of the second season's produce showed a substantial surplus. The Primary Products Marketing Amendment Act, 1937, empowered the Government to make adjustments to the guaranteed prices announced at the beginning of any season, and advantage was taken of these powers to increase the prices fixed at the beginning of the 1937-38 season by 0.41d. per pound (butter) and 0.21d. per pound (cheese). These additional payments are included in the prices quoted in the foregoing table. The accounts for the 1937-38 season show that, after making full provision for the additional payments referred to above, there was a surplus of £489,471 on account of butter and a surplus of £87,253 on account of cheese, making a total credit balance of £576,724. For the 1938-39 season it is estimated that there will be a deficiency of £1,315,713 in the butter account and a deficiency of £1,237,217 in the cheese account, the total debit balance for the year being £2,552,930. After deducting the surplus for the 1937-38 season, the Dairy Industry Account at the end of the third year's operations is estimated to show a debit balance of £1,976,206.

ADJUSTMENT OF FARM LIABILITIES.

The Marketing Act, a summary of which has been given above, indicates the Government's plans towards ensuring to the farmer some security in respect of farm returns in the future. The provision of farm finance does not come directly within the scope of this legislation, and it is now proposed to describe briefly the principal governmental measures dealing with this aspect of agricultural organization The subject falls naturally into two headings—(1) The adjustment of liabilities, and (2) the provision of farm finance.

The principal measures adopted in the past to lighten the burden of farm indebtedness remaining as a legacy from the lengthy period of acute agrarian depression were the various Mortgagors Relief Acts and the Rural Mortgagors Final Adjustment Act, 1934-35. The Mortgagors Relief Acts were designed to protect the mortgagor (farmer or other) from foreclosure, and also contained provision for the voluntary adjustment of mortgages through the agency of Commissions set up by authority of the legislation. The Rural Mortgagors Final Adjustment Act, 1934-35, represented a definite effort to effect a permanent settlement of excessive farm indebtedness arising from the depression. The Act provided, inter alia, for the final clearing-up of excessive mortgage liability after a period of five years, during which period, however, the farmer mortgagor seeking relief under the Act was required to conduct his farming operations under a system of budgetary control. The legislation of the present Government towards the clearing-up of excessive rural (and other) indebtedness is contained in the Mortgagors and Lessees Rehabilitation Act, 1936. The Act, which applied to all mortgages, is described in some detail in Section XXXII. Certain special provisions in the Act which were intended to apply to farm mortgages only, are as follows.

The following quotation of section 2 (1) of the Act indicates the intent of the legislation in regard to farmer applicants for relief under its provisions:—

“The general purpose of this Act in relation to farmer applicants is to retain them in the use and occupation of their farms as efficient producers, and to make such adjustments of their liabilities as will ensure that the liabilities secured on any property do not exceed the value of that property, that the rent of any leasehold property does not exceed the rental value of that property, and that the total amount and terms of payment of all their liabilities (whether secured or unsecured) are such that, after allowing for all normal current expenditure and providing for the maintenance of themselves and their families in a reasonable standard of comfort, the applicants may reasonably be expected to meet their liabilities as they become due, either out of their own moneys or by borrowing on reasonable terms.”

Adjustment Commissions were set up under the Act under the general direction of a Court of Review. These Commissions were empowered, inter alia, to fix basic values of farm lands held by applicants for relief under the legislation. The basic value was defined as the productive value of such lands “ increased or reduced by such amount as the Adjustment Commission deems necessary in order to make it a fair value to serve as a basis for the adjustment of the liabilities of the applicant in accordance with this Part of this Act.”

The productive value was defined as the net annual income that can be derived from the lands by the average efficient farmer, capitalized at a rate of interest to be fixed from time to time by the Governor-General in Council. Rates of interest under this section of the Act were fixed by an Order in Council dated 30th November. 1936, as follows:—

  1. The rate of interest for first mortgages of land to be a rate not exceeding 4¾ per cent. per annum.

  2. The rate of interest for puisne mortgages of land to be a rate not exceeding 6 per cent. per annum.

  3. The rate of interest for mortgages on property other than land to be a rate not exceeding 6 per cent. per annum.

In determining the net annual income, all expenses, including reasonable remuneration for the work performed by the applicant or other person in the production of that income, and interest in stock and chattels used for farm operations were to be deducted from the gross income. Capital expenditure was not to be deducted.

The amount of gross income was to be determined on the basis of such prices for farm-products as might be fixed by the Governor-General by Order in Council; or, in default of any such Order in Council, or in so far as any such Order in Council did not extend, by the Court. These prices were to be fixed after taking into consideration the prices received in respect of products of the same or approximately the same kind, grade, and quality produced in New Zealand during a period of from eight to ten years immediately prior to the thirty-first day of July, nineteen hundred and thirty-five. Average prices were fixed under this section of the Act by orders of the Court of Review issued on 19th January, 1937, 8th February, 1937, and 17th February, 1937. These Court orders prescribed prices for all the principal farm-products, separate district figures being given in each instance. If the basic value of the applicant's interest in any farm lands was less than the total amount of the principal and other moneys secured on his interest in those lands, the amount so secured was to be reduced to the basic value. The remainder was to be regarded as an adjustable debt; while, in the case of farm mortgages only, all other unsecured debts were also classed as adjustable debts.

With certain specified exceptions, all adjustable debts to which any applicant was subject on the date of the application for adjustment of his liabilities under the Act, and such of the adjustable debts to which he subsequently became subject as the adjustment Commission might determine, were deemed to be discharged on a date to be fixed in that behalf by an order of the Adjustment Commission. The provisions for the relief of lessees were similar in import to those outlined in respect of mortgage indebtedness. The Adjustment Commission dealing with any particular application had power to determine whether the farmer was to be permitted to remain in the use and occupation of his farm lands. In determining this, the Commission was enjoined to take into consideration the following factors:—

  1. The conduct of the applicant in relation to the care and management of the lands and the disbursement of his income:

  2. The extent (if any) to which the area of the farm lands exceeded or was less than the area required to enable the applicant to obtain a reasonable standard of comfort for himself and his family:

  3. Whether any relief granted pursuant to the Act would be reasonably likely to enable the applicant to meet his future liabilities in respect of the farm lands:

  4. Any other matters that it deemed relevant.

In cases where the Adjustment Commission dispossessed the mortgagor of a property, the Commission had power to sell such property with or without the right of purchase by the mortgagee.

The legislation in its application to farm mortgagors resembled in may respects the Rural Mortgagors Final Adjustment Act, 1934-35, which was consequently repealed. A major difference was that final adjustment was made without any “ stay “ for five years under budgetary control as was provided for in the previous Act.

Under the 1936 Act all mortgagors or mortgagees (who were also entitled to apply for relief under its provisions), were required to lodge application on or before 31st January, 1937. Extension to not later than 28th February, 1937, was allowed in special circumstances. Full rights of foreclosure, &c., could be exercised in cases where no such application was lodged, since the Mortgagors and Tenants Relief Act was repealed from the date of passage of the present legislation.

As indicated in the foregoing paragraphs, wide powers were given to the Adjustment Commissions (against whose decisions there was a right of appeal to the Court of Review) towards a final clearing-up of excessive indebtedness. Among the miscellaneous provisions of the Act of particular relevance to the question of farm indebtedness the following may be cited:—

An Adjustment Commission had power to give priority to moneys advanced in respect of farming operations on any farm coming within the scope of the Act—e.g., purchase of seeds, stock, &c. Similar arrangements might be made, where the Commission thought fit, for securing new loans raised to increase the productive capacity of such lands. The compulsory reduction of interest on mortgages by 20 per cent. (but not to a rate below 5 per cent.) provided for in the National Expenditure Adjustment Act was made permanent; under previous legislation it was due to expire on 31st March, 1937. A further section conferred on a mortgagor the right to negotiate with the mortgagee for a reduction of interest on a mortgage still unexpired. If no agreement could be arrived at. the mortgagor had the right to discharge the debt by payment of the principal in cash and interest up to the date of payment.

PROVISION OF FARM FINANCE.

State policy in respect of the provision of farming (and other) finance was materially altered from its traditional role by the Mortgage Corporation Act, which received assent on 5th April, 1935. The direct provision by the State of long-term finance for farming and other purposes, which had for so long been a feature of the New Zealand financial structure ceased; but with the passing of the State Advances Corporation Act in June, 1936, State provision of loans was again reverted to. The Act is described in Section XXIVD (State Advances). It is sufficient here to quote the following passage from the 1936 Budget, in which the Minister of Finance defined the objective of the present legislation:—

  • In a developing agricultural economy the question of farming finance is all important, and New Zealand is no exception. Over forty years ago the State initiated a policy whereby settlers were provided with finance at particularly low interest-rates and for long periods. This system has been the greatest single factor in developing New Zealand's farm lands.

  • Last year the Government then in office established a Mortgage Corporation, changed the old procedure, limited the scope of the legislation for social service, and introduced private shareholders and share capital and bonds not guaranteed by the State. As with the Reserve Bank, the Government has bought out the shareholders of the Mortgage Corporation, and the institution has again come under direct Government control and responsibility as the State Advances Corporation. Bonds will be State guaranteed, so that money may be raised at the lowest possible rates. Where it is necessary to assist a farmer in financial difficulties, or for purposes of providing homes for wage-earners, a high percentage of the security will be lent. There are safeguards so that loans cannot be used for speculation. The intention is to provide homes and farms for the people at low cost.

By the passing of the Rural Housing Act, 1939, County Councils are authorized to advance moneys to farmers for the purpose of erecting dwellings either for their own use, or for the use of persons ordinarily employed by them.

GOVERNMENT SUBSIDIES.

The net amounts of money expended from the vote of the Department of Agriculture by way of advances, grants, subsidies, &c., towards the assistance (direct and indirect) of the farming industries of the Dominion totalled £598,302 in the financial year 1938-39, the corresponding total for 1937-38 being £448,124. The estimate under this heading for 1939-40 is £483,206. The principal items of expenditure under this heading are shown below:—

Item.1936-37.1937-38.1938-39.
* Partly recoverable.
 £££
Carriage of lime99,290113,606119,824
Portion of freight rates on fertilizers148,699189,626184,111
Portion of freight rates on farm-produce49,52758,32957,799
Subsidy on superphosphate deliveries14,264....
Eradication of noxious weeds*30,79774,18075,205
Guarantee on exports of fruit12,50027,48173,904
Assistance to fruitgrowers (local market)..15,88888,610
Other33,16841,32137,111
Gross totals388,245520,431636,564
Credits15,42572,30738,262
Net totals372,820448,124598,302

The whole of the expenditure of the Department (£1,240,805 in 1938-39) is devoted directly or indirectly to the furtherance of farming and associated interests.

The amounts shown in respect of carriage of lime, fertilizers, and farm-products represent amounts paid out of the vote of the Agriculture Department to the Railways Department for the free carriage of lime by rail (which is a long-standing concession granted to farmers) and the cost of special concessions in freight rates on fertilizers and certain farm-products initiated during the depression period.

The falling-away in the use of artificial fertilizers in the autumn and winter of 1931 became so serious as to necessitate national action in an endeavour to restore the practice to an adequate level. The Government, therefore, in October, 1931, commenced a scheme of subsidizing the manufacture of superphosphates in order to reduce considerably the cost-price of this fertilizer to the farmers. This subsidy was discontinued as from 1st July, 1936, the amount shown in the table in respect of 1936-37 being provided to meet claims up to 30th June, 1936.

As a measure of relief to rural producers, provision was made in the Finance Act (No. 4), 1931, for the payment to County Councils of a subsidy from the Main Highways Fund, the money to be applied to a reduction of 12½ per cent. in county rates levied daring the financial year 1931-32. The total amount of subsidies paid to County Councils for this purpose was £250,814. In the 1934 session of Parliament a section was included in the Finance Act (No. 3) making provision for a refund of 12½ per cent. on certain rates levied during the financial year 1934-35. As was the case in 1931, the subsidy was paid to local authorities from the Main Highways Fund, the amounts so paid totalling £178,246. A similar subsidy was paid in 1935-36, the total amount paid in that year being £186,388. In the two latter instances the refund of rates applied both to lands used exclusively or principally for agricultural, horticultural, and pastoral purposes in counties or road districts, and to urban farm lands included in farm-land rolls (see reference to the Urban Farm Land Rating Act under Section XXVII—Valuation of Land), whereas the 1931 provision related to all lands used for farming or other purposes situated in counties.

The Agriculture (Emergency Powers) Act, 1934, contains, inter alia, provisions authorizing the expenditure of public moneys for the rehabilitation of the dairy industry. The specified purposes for which public moneys may be so applied include the reconstruction of dairy factories, the eradication of disease from dairy herds, and the general improvement of conditions in and about dairy-farms.

IRRIGATION AND WATER-SUPPLY.

Irrigation is considered one of the most important developmental works being carried out by the Government, in that it creates a permanent asset and one that has a cumulative effect on the prosperity of the country. There are large areas of fertile land in Marlborough, Canterbury, and Otago where insufficient rainfall prevents full development of the production of which the lands are capable if the proper moisture were applied during the growing season. The uncertainty and lack of rainfall have considerably retarded the development of these areas. The effects of irrigation may be gauged from an experiment that was carried out in Canterbury. A demonstration area of 36 acres was levelled and sown in fine-class pasture in the autumn of 1937. This was regularly irrigated, and during the season the land carried approximately ten ewes and their lambs to the acre without unduly taxing the pasture. The soil type was stated to be below the average for that particular district. Numerous cases where the stock-carrying capacity of the land has been increased fourfold throughout the whole season have been cited in other districts.

The first governmental activities in irrigation were carried out in cental Otago in 1919, and until 1934 the work was wholly confined to that district. Attention was then turned to Canterbury, and more recently comprehensive surveys were commenced in Marlborough.

There were fifteen schemes in operation at 31st March, 1939, thirteen of which were situated in Otago and two in Canterbury. The area commanded by the Otago schemes was 77,129 acres, of which irrigation water was available for 58,365 acres. The two Canterbury schemes commanded 27,000 acres, water being available for 17,103 acres.

Schemes under construction but not yet in operation are intended to serve 178,000 acres in Canterbury and 18,000 acres in Otago.

In addition, investigational work embracing topographical surveys, soil moisture, mechanical analysis of soil, depth of ground water, evaporation, wind observations, rainfall, and river-flow is being carried out in connection with further proposed schemes. The areas to be commanded by these additional works are 140,700 acres in Otago and 177,000 in Canterbury, plus an unascertained area in Marlborough.

The total expenditure to 31st March, 1939, on schemes which had been completed or were in course of construction was £1,887,988, while the amount expended on schemes under investigation was £59,252, making a total expenditure on irrigation of £1,947,240.

The works completed or in course of construction involve 472 miles of main canals and 731 miles of distributaries, of which 403 miles of main canals and 515 miles of distributaries had been completed by 31st March, 1939.

The most comprehensive scheme so far attempted is in Canterbury, the source of supply being the Rangitata River. This scheme, with its subsidiaries, will embrace 315,000 acres, and, in addition to supplying 1,000 cusecs of water for irrigation purposes, is capable of generating 30,000 horse-power of electric-energy during the winter months, when the water is not required for irrigation.

Another development work at present being carried out by the Government is the Downlands water-supply scheme. This is not an irrigation project, but is planned to supply domestic and stock water over an area of 153,000 acres situated in the Levels, Waimate, Mackenzie, and Geraldine Counties. This work involves the laying of over 800 miles of water-piping, the larger pipes being laid in trenches excavated by a trenching-machine, while the smaller sizes are pulled into the ground by tractors, leaving them 18 in. below ground-level without disturbing the surface for farming. This work has reached a stage where it is anticipated that 90,000 acres will receive a supply by the beginning of 1940, two years and three months after the commencement of the work.

DIVERSIFICATION OF FARM PRODUCTION.

While the recent progress of production in the major fields of farming enterprise in the Dominion suggests that the ultimate limit of production of dairy-products, mutton, lamb, and wool is not yet within sight, the growth of difficulties in finding export markets for these products has focussed attention on the possibilities of developing alternative avenues of farm production. Following is a brief outline of recent developments in that direction:—

Pig Products.—New Zealand has a surprisingly small pig population in relation to the number of dairy cattle. Between 1931 and 1930 there was a marked expansion in pig-raising, while exports of frozen pork increased fivefold between the 1931-32 and the 1937-38 export seasons. The Dairy Commission (1934) in its report pointed out that pig-production had been stimulated by the low prices riding for butterfat rather than by recognition by dairy-farmers that pig-raising forms an integral part of the scientific management of dairy farms. While the Commission urged that greater attention should be paid by farmers to this branch of dairy production, and made specific recommendations towards that end, it drew attention to the difficulties of developing an export market for pig products. These, difficulties have now been largely removed.

A Dominion Advisory Pig Industry Committee was established in 1932 to place the industry on a sound footing. The Committee has drafted provisions (gazetted in 1933) for the adoption of a uniform system of grading for the local and export markets; while investigations have been conducted into pig-management methods generally, including the establishment of a pig-recording scheme on a national basis.

The Co-operative Pig-marketing Companies Act, 1933, designed to assist the pig industry, is modelled on the Co-operative Dairy Companies Act, 1907. By that Act provision was first made for the registration of co-operative companies having for their principal object the manufacture of dairy-produce from milk supplied by shareholders. One of the special features of these co-operative companies is the statutory right to require the surrender of shares, and the power to reissue surrendered shares.

Pig-recording clubs have been founded in some rural centres with a view to the selection of suitable breeding types. The movement has the encouragement of and financial assistance from the Meat Producers' Board.

In May, 1937, Cabinet approved of a levy of 2d. per pig on all pigs slaughtered, in order to provide an instructional and advisory service for the pig industry. The proceeds of the levy are devoted to purposes which should be very beneficial to the industry. Among the activities of the National Pig Industry Council set up to administer the fund is the formation of pig clubs, 25 of which were functioning during the 1938-39 season. Pig clubs are voluntary local associations of from ten to twenty-five producers who subscribe to a fund to purchase a pedigree sow and suitable accommodation. The progeny are distributed for breeding purposes among members at a price fixed by the club. A system of grading of baconers was introduced in February, 1938. By this means it is hoped to establish uniformity in lines of pigs, both for overseas markets and for local curers. The lack of uniform standards has hitherto been a serious hindrance to the development of the industry.

Chilled Beef.—Until recently New Zealand was hindered in the extension of its export trade in beef by the loss of “ bloom,” and other disadvantages of frozen beef as compared with the chilled product. The discovery of a satisfactory process by which beef may be kept in the chilled state for a much longer period of time than was previously possible has now permitted New Zealand's entry into world markets for chilled beef. An experimental shipment in February, 1933, opened up satisfactorily on arrival at the London market, and since then the chilled-beef industry has become definitely established; during 1938 352,203 cwt. (1935, 110,247 cwt.; 1936, 240,433 cwt.; 1937, 307,328 cwt.) were exported. The industry will, however, “be adversely affected during the period of the present war, the arrangement for the purchase of New Zealand meat by the United Kingdom Government not including chilled beef on account of shipping-space considerations.

Poultry Industry.—Measures for the furthering of poultry-production have received a considerable amount of attention in recent years. The Poultry-runs Registration Act was passed in 1933 as a complementary measure to the Poultry Act, 1924. The earlier Act was concerned with the avoidance of disease and the marketing of produce, while the later Act provides for the registration of all commercial poultry-runs where more than twenty-five head of poultry are kept, and for the constitution of an elective Board whose general function is to organize and develop the poultry industry.

Egg-export committees have been set up in each of the four main centres to control the supply to the local market during the flush production-period by the export of a greater quantity of eggs during that period.

The Internal Marketing Division of the Marketing Department commenced the supervision and handling of the export of eggs during the 1937-38 season, giving to producers a guarantee of 1s. 1d. per dozen for all eggs exported, and thus relieving the pressure on the local market during the flush season.

Tobacco Industry.—An important measure affecting the tobacco industry was passed in the 1935 session of Parliament. The Tobacco-growing Industry Act provides for the establishment of a Board to control the industry. Among the functions of the Board is the granting of licenses to grow tobacco, which is not permitted without such a license. Raw tobacco is not to be sold, purchased, or manufactured except pursuant to a warrant issued by the Board. A sub-committee of the Board was set up in 1936 with a view to formulating a long-range plan for the tobacco-growing industry, and the Board is endeavouring to establish and maintain exports.

In November, 1936, the Government, by Order in Council, fixed the minimum price of raw leaf at 1s. per pound f.o.r. or f.o.b. growers' nearest port. This price operated until 31st March, 1937. In April, 1937, the price was fixed at 1s. 2d. per pound, and this price has operated in each successive season since that date.

As a result of the efforts of a committee appointed by the Government to formulate a plan for the tobacco growing and manufacturing industries, arrangements were made with the manufacturers for payment to growers of an average price of 1s. 10½d. per pound for flue-cured and 1s. 7½d. per pound for air-dried leaf of the 1939 crop, on the understanding that they (the manufacturers) be recouped to the extent of the difference between those prices and 1s. 8d. per pound and 1s. 5d. per pound for flue-cured and air-dried leaf respectively. This arrangement means, in effect, that the Government is subsidizing growers to the extent of 2½d. per pound.

Consideration is being given to questions of research into diseases of the leaf and to grading.

Citrus Industry.—By Order in Council dated 15th December, 1932, the importations of all fruit and vegetables (other than dried, canned, pickled, pulped, or bottled fruit and vegetables) grown or produced in the Commonwealth of Australia was prohibited, save with the consent of the Minister of Customs.

This prohibition was varied in August, 1933, to allow South Australian oranges to enter the Dominion, the first shipment arriving on the 26th August in that year; while further importations have since been allowed, and virtually unrestricted import is permitted in the off-season (December-March). Since the coming into force of these regulations a much improved local market has been obtained for New Zealand lemons. In order to stabilize the industry, the marketing of lemons has now been taken over by the Marketing Department. As from 1st May, 1939, the sale of lemons by producers is prohibited except to the Department. All lemons intended for sale are required to be delivered, loose packed, to the Department, which undertakes the curing, grading, and packing for re-sale. Prices payable to producers have been fixed, and these range from 4s. 5d. to 6s. 9d. per “measure” case for grade lemons, 1d. to 1¼d. per pound for peel lemons, and ½d. per pound for juice lemons.

By the instructions of the Minister of Industries and Commerce a survey of the grape-fruit industry was carried out during 1933. The local fruit is little known to the public, and is very low in price compared with the imported article. It is hoped that by improving the grading and packing of the fruit, and organizing the marketing on better lines, a much improved demand will be obtained, and that in time the local fruit will entirely replace the imported grape-fruit. This tree seems to be the hardiest of all the citrus family in New Zealand, and it has been successfully established over a considerable part of the North Island, more especially in the Auckland Province, and on a great variety of soils where aspect and shelter were favourable and a reasonable amount of manure and cultural attention given. With the development of the industry, New Zealand grape-fruit should fill a much more important place in the dietary of the people.

Tung Oil Industry.—In recent years considerable attention has been given to the growing of tung-trees in the North Auckland District. In 1931-32 there were 1,018 acres of these trees in New Zealand, the acreage in 1938-39 being 4,403. A plant for the extraction of the oil has now been installed at Kaikohe.

Sugar-beet.—Consideration is being given by the Government to the establishment of a sugar-beet industry in New Zealand. To that end, the Department of Agriculture has been carrying out trial growings of beet in suitable areas. At present these are being conducted on a field scale in the Canterbury District, the aim being to obtain information as to the yield and costs of production under New Zealand conditions. Some very satisfactory yields have been obtained from such trials and with the use of irrigation water from the project now nearing completion further success is anticipated.

Linen Flax.—During the 1938-39 season over sixty ecological trials with linen flax were laid down in districts throughout the South Island with a view to determining the districts most suitable for the cultivation of this crop. The material harvested has yielded data relative to the type of fibre likely to be obtained under differing conditions.

MISCELLANEOUS DEVELOPMENTS.

In the following paragraphs a brief statement is given of miscellaneous legislative enactments and other governmental action taken with the object of assisting the farming industry.

Agriculture (Emergency Powers) Act, 1934.—This Act was passed with a view to co-ordinating the activities of the various Boards marketing farm-produce; while, in addition, wide powers were granted the Executive Commission of Agriculture set up under the Act to take action towards the betterment of the farming industry generally. The administration of the Act is now in the hands of the Marketing Department, to which the powers formerly vested in the Executive Commission of Agriculture have been transferred.

Land-tax Policy.—The system of graduated land-tax was abolished during the depression period with a view to lowering farm costs. The present policy in relation to land-tax is described in Section XXIVB (Taxation). It involves a reversion to the graduated land-tax.

Mortgage Relief Legislation.—The pre-existing legislation was replaced by the Mortgagors and Lessees Rehabilitation Act, described under a previous heading.

National Expenditure Adjustment Act, 1932.—The provisions of this Act reducing interest-rates were largely rendered obsolete by the Mortgagors and Lessees Rehabilitation Act. In respect of unexpired mortgages, the reduction of interest by 20 per cent.—but not below a rate of 5 per cent.—provided for in the National Expenditure Adjustment Act has been made permanent in cases to which it may still apply.

The Land Laws Amendment Act, 1931.—This Act, designed to afford relief to Crown tenants, is still in force; as is the Urban Farm Lands Rating Act, 1932, the purpose of which is to reduce the burden of rates on land situated within a borough and used for farming purposes.

Small Farms (Relief of Unemployment) Act, 1932-33.—The title of this Act, which was designed to facilitate the settlement of unemployed on small holdings, was changed to the Small Farms Act by the Small Farms Amendment Act, 1939. The main provision of the 1939 amendment is that Crown land subject to the principal Act may be disposed of under renewable lease to suitable persons not in regular employment and with insufficient capital to acquire land for themselves.

Valuation of Land Amendment Act, 1933.—The main purpose of this Act is to adjust inequalities in rating.

The Dairy Industry Amendment Act, 1933.—This Act prohibited the changeover of a factory supplier from one factory to another during the currency of a single season. Such changes were in practice often made between butter and cheese factories, the suppliers concerned endeavouring to take advantage of price-changes as between the pay-out for butter and cheese. The motive for such changes has largely disappeared with the fixation of a set-price difference between butter and cheese in the guaranteed-prices plan, now in operation.

liaising of the Exchange Rate.—The primary object of the raising of the rate from £110(N.Z.) = £100 sterling to £125(N.Z.) = £100 sterling on 20th January, 1933, was the alleviation of the difficulties of the farming industry. This factor is no longer of import to the dairy-farmer, since guaranteed prices are in operation, but the maintenance of the high rate still continues to benefit other farm producers.

Fruit-export Guarantee Fund.—A section in the Finance Act, 1934-35, authorizes the New Zealand Fruit-export Control Board to establish a special reserve fund for the purpose of minimizing fluctuations in returns from exports of fruit. The Board is authorized to make advances from the fund on account of exports of fruit on the basis of a guaranteed price; and if the net amount realized from sales of such fruit does not cover the amount of the advance, the deficiency is treated as a loan to the producer. The Board is empowered to set off any such deficiency 5 against surpluses accruing to the producer's account in subsequent years. In 1935-36 the Government contributed to the Fruit Board's fund on a pound-for-pound basis up to £12,500, and guaranteed up to 9s. per case (New Zealand currency) on fruit sold in new markets. A State guarantee of 10s. 6d. c.i.f. (New Zealand currency) applied to exports of fruit during the 1936-37 season, and 11s. per case during the 1937-38 and 1938-39 seasons.

Internal Marketing.—The Primary Products Marketing Amendment Act, 1937, made provision for the establishment of an internal marketing branch of the Primary Products Marketing Department (now known as Marketing Department), whereby the Government took over the business of one of the largest distributing houses engaged in marketing butter, cheese, eggs, ham, bacon, &c., within the Dominion. Regulations were introduced in 1937 providing for a more orderly system of marketing butter throughout New Zealand and, from November, 1937, fixing wholesale prices throughout the Dominion.

The Amendment to the Primary Products Marketing Act specifically mentioned dairy products, eggs, fruit, and honey as primary products to be brought within its scope, although the Act gives powers for extension to other classes of primary produce. In addition to the marketing of butter, the Internal Marketing Division of the Marketing Department took over early in 1938 the handling and distribution to retailers of bananas and imported citrus fruits. The necessity for improvements in the handling and distribution of fruit for the local market was stressed in the report of the Fruit Marketing Committee set up in 1936. With this object in view the Division has now been entrusted with the supervision of marketing conditions generally, and a considerable amount of preparatory work has been carried out. In addition, the Division has acted as mediator between growers and factories in arranging prices and supplies. A comprehensive advertising campaign to stimulate local sales of apples and pears was conducted, while an investigation was made into the manufacturing of unfermented apple-juice in the hope that an outlet might be found for lower - grade apples, which at present have a depressing effect on the market. The Division has also taken action in regard to the marketing of hops and maize, and satisfactory arrangements between growers and merchants in regard to prices, &c., have been concluded. As stated under the caption “ Citrus Industry,” the marketing of lemons is now under the sole control of the Division.

The Division also supervised and handled the export of eggs during the 1937-38 season by giving a guarantee of 1s. 1d. per dozen for all eggs exported. This action was taken in order to ensure that a minimum selling-price could be assured to producers so far as the local market was concerned, and, whilst a comparatively small quantity of eggs was exported, the effect upon the market as a result of such export immediately made itself apparent. The Division is continuing its activities in this direction. The activities of the Division have also been extended to honey, the Government taking over an important producer company; and, through this organization, it has made advances to producers in respect of honey for export and has co-operated with the Honey-export Control Board in promoting overseas sales. The orderly marketing of bobby calves has also received attention, steps being taken in 1938 for the formation of Bobby Calf Marketing Pools, such pools to be voluntary associations of the majority of producers in suitable areas. On formation, the pools, acting as agents of the producers, control the marketing of all bobby calves within their respective districts.

Executive Commission of Agriculture.—The executive Commission of Agriculture has made considerable progress towards the rationalization of the farming industries of the Dominion. In particular, much has been done towards the elimination of overlapping in the collection of cream supplies; while the problem of redundant dairy factories in certain dairying districts has received attention.

Prices of Fertilizers.—Fertilizers form a very important element in farming-costs; and, since 1931, measures have been taken to keep prices of superphosphates as low as possible. Between October, 1931, and June, 1936, the Government subsidized the manufacture of superphosphates (see Government Subsidies ante); but, as from 1st July, 1936, payment of this subsidy was discontinued. An alternative scheme was introduced by regulations dated 14th July, 1936. The price is fixed at £3 16s. per ton ex works in the North Island, with a rebate of 4s. 6d. per ton to merchants and dairy companies purchasing for resale. For the South Island the prices are £4 2s. ex works in that Island, with rebates of 6s. 6d. to merchants and dairy companies.

In the case of imported phosphatic fertilizers the selling-price is fixed at the landed cost plus 6 per cent. in the North Island and plus 8 per cent. in the South Island, additional allowance being made for carriage from the wharf to the place of delivery to the purchaser.

It is estimated by the Minister of Agriculture that the present arrangement represents a saving of £50,000 per annum to farmers in the Dominion as compared with the pre-existing position.

Fixation of Prices of various Farm-products.—Reference to the fixation of prices of various farm and other products will be found in the introductory portion of Section XXXVI: Prices.

Malting Barley.—An Advisory Committee was set up by the Minister of Agriculture in 1937. A good deal of progress has been made towards the establishment of official grading standards, agreement as to prices for various grades, and experimental work towards improving the quality of New Zealand grown barley. The Barley Advisory Committee includes representatives of growers, of maltsters, and of the Department of Agriculture.

Draft Wool Allowance.—The Sale of Wool Act, 1937, gave effect to an arrangement between the Governments of Australia and New Zealand for the discontinuance of the long-standing practice of making draft allowances in relation to contracts of sale of wool. The new scheme came into operation in both countries on 1st July, 1938.

Research Activities.—An account of recent developments in agricultural policy would not be complete without reference to the increasing attention being given to research work and its practical application towards the improvement of the quality of New Zealand's farm-produce. For example, seed certification has made great advances in recent years under the direction of the Department of Agriculture. The certification of seed types is regarded as a very important step towards the elimination of undesirable strains and the wider use of varieties best suited to individual localities. As well as the research work conducted by the Chemistry and Veterinary Divisions of the Department of Agriculture, problems relating to the farming industry occupy a very important place in the research activities of the Department of Scientific and Industrial Research—soil surveys, research into the mineral-content of pastures, openness in cheese, wheat research, treatment of fruit-juices, plant research, and wool research being samples of the activities of various committees operating under the direction of this Department. An interesting innovation is the recent decision to conduct aerial surveys of various portions of the Dominion. The results of these surveys will provide valuable data for a number of purposes—e.g., defence, forestry—while they will form a valuable adjunct to the soil surveys which it is proposed to conduct in selected rural areas.

The investigation of problems affecting the wool industry has recently occupied the attention of the Governments of New Zealand, Australia, and South Africa. In furtherance of co-operative research, a levy on wool has been struck in each of the countries, the New Zealand levy being 6d. per bale.

In addition to the activities of the Departments of Agriculture and of Scientific and Industrial Research, cognate or related research is conducted by the Cawthron Institute at Nelson, the Agricultural Colleges at Palmerston North and Lincoln, and the Wheat Research Institute, Christchurch.

The School of Agriculture Act passed in 1937 makes provision for the co-ordination and development of higher education in agriculture.

Facial Eczema.—Consequent on a serious outbreak of facial eczema among sheep in the early months of 1938, the Government made provision for the financing of farmers whose flocks have been seriously affected. Loans on easy terms were granted to farmers in difficulties as a result of the outbreak.

WAR MEASURES AFFECTING PRIMARY PRODUCTION.

Immediately following the outbreak of war early in September, 1939, various measures were taken by the Government with a view to maintaining, and where possible, extending production. Towards this end a Council of Primary Production, representative of all major phases of the industry, was set up. The main function of the Council is to organize the production of agricultural and pastoral commodities to meet the exigencies of war conditions. The question of the provision of adequate farm labour has received the attention of the Government, and the transfer of men from Public Works and other activities to farm-work—particularly clearing and drainage operations—with a view to increasing productivity, is being carried out.

Arrangements have been made for the purchase by the United Kingdom Government of New Zealand's exportable surplus of meat, wool, butter, and cheese. Prices announced for the 1939-40 season are as follows, the quotations being stated in New Zealand currency:—

Meat (per pound)—

  • Lamb: Prime Down cross, 7d. to 7.93d.; prime Canterbury, 6.84d. to 7.85d.; prime crossbred, 6.53d. to 7.7d.; second quality, 6.85d. to 7.3d.

  • Mutton: Prime wethers and maiden ewes, 3.73d. to 5.36d.; second quality wethers, 4.2d. to 4.58d.; ewes, 2.95d. to 3.42d. Beef: Ox and heifer—Hinds, 4.27d. to 5.44d.; fores, 3.11d. to 3.19d.

  • Cow—Hinds, 4.1d.; fores, 3.1d. Boneless beef, 4.1d. to 4.66d. Boneless bobby veal, 5.13d.

  • Pigs: First-quality porkers and baconers, 7.46d.; second quality, 7.15d. (The foregoing prices are f.o.b. New Zealand ports.)

Wool: An overall average price of 12.25d. per pound for greasy wool has been agreed upon. This price is stated to be net to the producer for wool delivered at brokers' warehouses, subsequent charges to be additional to the 12.25d. price. In addition, half-profits on sales of wool outside the United Kingdom will accrue to the producers. The average price realized at sales in New Zealand during the 1938-39 season was 9.17d.

Dairy-produce:—

  • Butter: An overall average of 139s. 7/4 d. per hundredweight.

  • Cheese: An overall average of 79s. 9d. per hundredweight.

  • (These prices are f.o.b. New Zealand ports.)

In the case of dairy-produce, the quantities agreed upon for the 1939-40 season are—butter, 115,000 tons commencing with shipments from 1st October; cheese, 84,000 tons commencing with arrivals in the United Kingdom after 20th November. In addition, the United Kingdom Government, subject to freight being available, will use its best endeavour to ship any additional quantities available for export, within the limits of its requirements. It is estimated, however, that the quantities stated above added to the quantities shipped previously will absorb the season's production available for export.

The prices for dairy-produce will not affect the producer, as the guaranteed-price plan will continue to operate.

The powers and functions of the Marketing Department have been extended by the provisions of the Marketing Amendment Act, 1939, to provide the necessary machinery for the purchase, handling, forwarding, &c., of meat, wool, and other products on similar lines to that already in operation in connection with dairy-produce.

Owing to the probable loss of overseas markets for apples and pears on account of war conditions, the Government has undertaken to purchase the entire crop of graded fruit for the 1939-40 season. The prices agreed upon will average approximately 4s. 10d. per bushel case for fruit for the local market, and 5s. 2d., for fruit for the export market at assembly points designated by the Internal Marketing Division. The Division will be responsible for the marketing within New Zealand, while any exports for which the Government may be able to arrange shipping space will be handled by the Exports Division of the Department. Owing to the necessity for conserving available shipping space for more essential commodities, however, it is doubtful whether fruit in any quantity will be exported this season.

SUBSECTION B.—AGRICULTURAL PRODUCTION.

INTRODUCTORY.

As indicated in the general remarks included in the introductory portion of the preceding subsection, grassland products account for a very high proportion of the farm output of New Zealand. It must not be assumed, however, on this account that cropping is of minor importance in the economy of the Dominion. Practically the whole of the internal requirements of agricultural products are grown within the country, the only exceptions of note being tropical or subtropical products such as tea, sugar, cotton, bananas, &c., and—in years of poor harvests—wheat. Endeavours are being made to make New Zealand entirely self-supporting in respect of the supply of wheat.

Fruit is grown on a considerable scale, home requirements of all the important fruits and berries grown in temperate zones being satisfied by New Zealand orchard production. In the sub-tropical northern portion of New Zealand the growing of citrus fruits has made rapid advances during the last few years, while grapes are cultivated in certain localities. In addition to the supply of local requirements, a substantial export trade in apples—and to a lesser extent in pears—has been developed.

In rural New Zealand and in many urban localities the kitchen-garden supplies a very substantial proportion of family requirements of vegetables; while there is a substantial area planted in market gardens, both inside and outside borough boundaries. The major commercial cash vegetable crops are potatoes and onions, local supplies of the former being adequate, with, in some seasons, a material surplus. Although the importance of vegetable-growing in agricultural production cannot be measured (a material, though unknown, proportion being non-commercial), it will be realized that this branch of crop-production is of some consequence, in that the requirements of the people are supplied from New Zealand production.

Coincident with the growth of the stock-raising industries, there has been a considerable increase in areas sown for supplementary fodders. While practically throughout the whole Dominion animals can be grazed in open pasture for the full twelve months of the year, the whiter growth of grass, except in certain favoured localities, requires to be supplemented in order to keep stock in good condition during the colder months. In some districts supplementary fodders are necessary in the hottest summer months. Considerable areas are sown in turnips, mangolds, and green fodder crops—e.g., rape, chou-moellier—while hay and ensilage are produced in the normal routine of stock-farming operations. Lucerne, which corresponds to the alfalfa of certain other countries, is extensively grown. The supply of supplementary fodders is adequate both in quantity and in quality, so that the Dominion does not import animal-feeding stuffs to any appreciable extent.

The renewal of pasturage requires the annual supply of very considerable quantities of grass-seeds, which are grown almost entirely in the Dominion. There is a small import of certain clashes of seeds, but this is very inconsiderable in relation to requirements; while, on the other hand, a quite considerable export trade—particularly in perennial rye-grass seed—has been developed. While hay and ensilage crops are grown almost exclusively on the farms where they are consumed, there is some degree of localization in the growing of certain other supplementary fodder crops. The bulk of the turnip crop is grown in the South Island; this Island also predominating in the production of rape and kale, since the colder climate necessitates more extensive supplementary feeding than in the North Island.

Grain-growing is localized to a very considerable extent, the fertile plains of Canterbury supplying 78 per cent. of New Zealand's wheat crop, 35 per cent. of the oats threshed, 61 per cent. of the barley yield, and practically the whole linseed crop. Maize-growing is largely confined to certain portions of the Auckland, Gisborne, and Hawke's Bay districts, these localities proving very suitable for the production of this crop. The commercial growing of pulse crops is carried out extensively in Canterbury, and to a lesser extent in Marlborough, these districts producing practically the whole annual yield. The districts of Canterbury, Otago, and Southland supply 88 per cent. of the total production of grass-seeds. While the Canterbury district produces the bulk of the commercial potato crop, the growing of potatoes for the early market is of considerable importance in the North Auckland and Auckland districts.

Commercial orchards in New Zealand are largely confined to certain areas suited by climatic and soil conditions, while access to markets is also an important factor, particularly in respect of small fruits.

The Nelson district is famed for its apple-orchards, a high percentage of the crop from this district being exported. Again, Central Otago is very suited to the growing of stone fruits—notably apricots. In several other districts commercial orchard production is successfully carried out: special mention may be made of the increase of citrus culture in certain northern districts.

Grape-growing is of increasing importance in North Auckland, Auckland, and Hawke's Bay; while tobacco-growing is mainly confined to the Waimea County, in the Nelson District. Hop-growing, also, is almost exclusively confined to the latter district.

For statistical and other purposes, it is at times desirable to convert bushel units to a weight basis. For New Zealand produce, conversion is effected by using the following weights per bushel for the commodities mentioned:—

Produce.Weight of Bushel.Produce.Weight of Bushel.
 Lb. Lb.
Wheat60Pears38
Oats40Peaches42
Barley50Nectarines42
Maize56Apricots42
Peas60Plums42
Ryecorn54Cherries42
Beans65Oranges42-43
Grasses and clovers20Lemons (uncured)42
Apples40....

AREA UNDER CULTIVATION.

A general summary of the areas under cultivation during each of the last ten years is given on the page following. The statistics quoted in this and other tables in this subsection relate to holdings of 1 acre or upwards outside borough boundaries. A classification of all occupied lands (including uncultivated areas) according to size and type of holdings is included in the preceding section (Section XVII, subsection A).

In addition to the areas shown as under cultivation, there is a considerable area of occupied land still unimproved. In 1938-39 the total area of unimproved occupied land was returned as 23,179,323 acres. Cultivated land accounted in 1938-39 for 46 per cent. of the total area in occupation, unimproved land accounting for the remaining 54 per cent. The classification of the unimproved land in 1938-39 was as follows: Phormium (New Zealand flax), 57,602 acres; tussock and other native grasses, 13,822,137 acres; fern, scrub, and second growth, 4,387,367 acres; native bush, 2,923,043 acres; barren and unproductive land, 1,989,174 acres. It should be noted that the area in phormium—a productive asset—is included in the total of unimproved land; while, again, an appreciable proportion of the area under tussock and other native grasses is of some economic utility—e.g., for low-grade sheep-grazing, &c.

Year.Pasture Land.*Field Crops.Plantations.OrchardsLying Fallow.Other Cultivated Land.Total Cultivated Land.

* Excluding areas of grasses and clovers cut for seed, hay, or ensilage, which have been included in field crops.

† Prior to 1934-35 large areas of State Forest plantations were excluded from the collections.

 Acres.Acres.Acres.Acres.Acres.Acres.Acres.
1929-3016,872,9481,762,792289,02024,861124,56581,88819,156,074
1930-3116,513,7651,936,149341,59128,134108,41578,82419,006,878
1931-3216,285,0901,958,671399,30725,75594,15986,61918,849,601
1932-3316,221,3242,191,670409,86025,31796,01889,43619,033,625
1933-3416,472,6042,064,037427,47125,069105,76691,80119,186,748
1934-3516,501,8111,981,804781,68425,087;115,83296,30119,502,519
1935-3616,543,7502,090,745807,87725,072107,10997,00519,671,558
1936-3716,610,9031,918,855815,96524,856118,84398,58419,588,006
1937-3816,731,6071,785,329874,97422,397181,41495,28019,681,001
1938-3916,783,6121,807,445872,42321,753140,92595,79119,721,949

In the following pages statistics of the principal crops are quoted with explanatory comment. In addition to summary tables, covering in each instance a range of related items, important individual crops are discussed under separate headings.

PRINCIPAL FIELD CROPS.

The areas under each of the principal field crops for the last five years have been as follows:—

Crop.1934-35.1935-36.1936-37.1937-38.1938-39.

* Including turnips and rape mixed.

† Excluding wheat, oats, barley, and maize fed off.

 Acres.Acres.Acres.Acres.Acres.
Wheat230,523252,423224,637191,842193,332
Oats336,418363,296315,704289,763279,796
Barley28,73127,77725,51231,60432,528
Maize16,10017,12613,67812,40312,229
Peas25,36624,42817,51214,27713,436
Beans1271772317185
Linseed2,9301,8066146621,821
Potatoes23,00122,95822,46223,09018,032
Turnips*449,513441,854431,349432,651385,846
Mangolds11,21113,21010,2798,2708,872
Onions923928719618674
Tobacco1,3581,5182,1321,9721,807
Green fodder193,942207,212210,662211,504189,601
Grasses and clovers for seed133,933134,40596,57780,463109,695
Grasses and clovers for hay,484,751536,018504,253443,880518,919
ensilage, &c.     
Lucerne39,08740,85738,80238,69137,023
Other crops3,8904,7523,7323,5683,749
Totals1,981,8042,090,7451,918,8551,785,3291,807,445

The figures quoted in the above table relate to the total area under each field crop. It should be noted that a considerable portion of the area under certain crops, particularly oats, is cut for chaff or is fed off.

GRAIN AND PULSE CROPS.

Details of areas, total yields, and yields per acre of the principal grain and pulse crops during the last ten years are set out in the following table:—

Year.Wheat.Oats.Barley.Maize.Peas.Linseed.
* Bushel equivalents in lbs.: Wheat, 60; Oats, 40; Barley, 50; Maize, 56; Peas, 60.
AREAS FOR THRESHING.
 Acres.Acres.Acres.Acres.Acres.Acres.
1929-30235,94267,72218,2297,9579,8557,757
1930-31249,01487,15223,9527,16810,55812,200
1931-32268,75668,69018,2455,96514,7011,765
1932-33302,531116,20616,3368,15322,370333
1933-34286,27178,34321,0248,25630,3621,441
1934-35225,38952,51618,4417,94625,3662,930
1935-36248,63977,50220,6597,51724,4281,806
1936-37221,79074,77220,5446,67917,512614
1937-38185,94957,91725,4556,14714,277662
1938-39189,28154,42226,8986,02513,4361,281
TOTAL YIELDS.*
 Bushels.Bushels.Bushels.Bushels.Bushels.Cwt.
1929-307,239,5563,002,288755,007377,955294,24270,377
1930-317,579,1533,376,609837,696316,845241,40287,344
1931-326,582,6982,818,152537,398258,612309,38312,757
1932-3311,054,9725,132,183561,017389,432585,4182,705
1933-349,036,0173,242,500730,963373,212698,29312,564
1934-355,933,2451,890,145484,689373,219436,53417,208
1935-368,859,2233,302,642745,380321,222562,73311,535
1936-377,168,9633,525,430746,948301,963480,9874,567
1937-386,042,9812,640,9151,085,950295,576372,4545,182
1938-395,564,1362,604,8171,076,774269,024386,97413,322
YIELDS PER ACRE.*
 Bushels.Bushels.Bushels.Bushels.Bushels.Cwt.
1929-3030.6844.3341.4247.5029.869.07
1930-3130.4438.7434.9744.2022.867.16
1931-3224.4941.0329.4543.3521.057.23
1932-3336.5444.1634.3447.7726.178.12
1933-3431.5641.3934.7745.2023.008.72
1934-3526.3235.9926.2846.9717.215.87
1935-3635.6342.6136.0842.7323.046.39
1936-3732.3247.1536.3645.2127.477.44
1937-3832.5045.6042.6648.0826.097.83
1938-3929.4047.8640.0344.6528.807.32

As will be seen from the above table, wheat (189,281 acres in 1938-39) and oats (54,422 acres in 1938-39) are the grain crops of major importance, these two accounting for 83 per cent. of the total area under grain and pulse crops for threshing, in the proportions of 60 per cent. and 18 per cent. respectively. Barley, peas, maize, and linseed follow, in that order.

Minor crops for threshing in 1938-39 included 541 acres of lupins, 190 acred of rye-corn, and 85 acres of beans, the yields in bushels being 9,977, 6,780, and 1,381 respectively.

Further statistical details of wheat, oats, and barley, the three most important grain crops, follow.

WHEAT.

Wheat is the most important grain crop grown in New Zealand. The industry enjoys a sliding scale of Customs duties levied on imports of wheat and flour (vide Section XD: Customs Tariff and Revenue), and also regulation of prices on a basis that is calculated to give the grower a satisfactory return for his produce.

Further efforts in encouraging wheat-growing with a view to making New Zealand entirely self-sufficient in respect of requirements of wheat and wheaten products were initiated by the Government in 1936. An Order in Council which came into force in March of that year prohibits the importation of wheat or wheaten flour, except under permit granted by the Minister of Industries and Commerce. With a view to reducing imports of Grade A wheats now necessary for mixing purposes, the Wheat Research Institute is endeavouring to encourage the growing in New Zealand of better-quality varieties which do not require blending with imported wheats. The Institute has already achieved excellent results, its most outstanding success being the development in 1934 of a new variety known as Cross 7. Since then Cross 7 wheat has been grown in increasing quantities, and in the 1938-39 season produced about one-third of the total grain harvested. The proportion in the 1937-38 season was approximately one-fifth. It possesses the advantages of desirable baking qualities, good yield, and resistance to wind damage.

Despite the protection and encouragement given to wheat-growers, the results in recent years have been disappointing. In the 1932-33 season there was a yield of over 11,000,000 bushels, the highest since 1898-99, but this was followed by successive decreases of approximately 2,000,000 bushels in each of the following two years, with the result that the yield in 1934-35 (5,933,245 bushels) was the lowest for ten years. The 1935-36 season saw an increase of nearly 3,000,000 bushels, but in each of the following three years production declined to such an extent that the 1938-39 harvest was less than that of 1934-35. As a result, imports have increased considerably during the last three years, no less than 3,444,869 bushels being imported during 1938. Preliminary figures of areas sown or to be sown in 1938, however, indicate an increase of over 60,000 acres as compared with 1938 sowings.

VARIETIES OF WHEAT.

The following figures regarding varieties of wheat threshed relate to the harvest of 1939. These figures were compiled from returns furnished by proprietors of threshing-machines which operated on 88 per cent. of the total area of wheat threshed; and it is reasonably safe to assume that the variety percentages given in the following table would apply similarly to the total area threshed except, possibly, in the cases of the minor varieties.

Variety of Wheat threshed.Percentage of Total Area.;Percentage of Total Yield.
Tuscan—Per Cent.Per Cent.
  Tuscan  
  Solid-straw Tuscan45.7940.89
  Cross 733.1433.69
  Dreadnought4.466.42
  Montana King0.200.22
  Ben Cubbin0.180.20
  Ghurka0.080.09
  Velvet Ear0.110..14
  Velvet (Southern)....
  Purple-straw Tuscan....
  White-straw Tuscan0.060.09
  Sensation0.050.06
  Tainui0.030.04
  Red Marvel0.030.04
  Other Tuscan varieties0.040.06
    Totals84.1781.94
Hunters—Per Cent.Per Cent.
  Hunters9.3211.34
  Hunters White
  Hunters II
  College Hunters
  Bell's Hunters
  Red Chaff
  Major0.690.71
  Federation0.060.04
  Yeoman0.040.05
    Totals10.1112.14
Pearl—  
  Jumbuck3.143.44
  Marquis1.941.83
  Velvet0.470.47
  Pearl
  Pearl Velvet
  White Velvet
  Velvet Chaff
  Garnet0.170.18
    Totals5.725.92
    Totals, all varieties100.00100.00

The choice of wheat varieties for sowing is influenced by their suitability to local conditions of climate, soil-type, &c. Wheat-growers receive valuable guidance regarding suitable varieties as the result of research work and field trials undertaken by the Wheat Research Institute and the Department of Agriculture.

CONSUMPTION OF WHEAT AND FLOUR.

As pointed out earlier, it is frequently necessary to import considerable quantities of wheat in order to meet local consumption needs. Until comparatively recently, imports of wheat, which fluctuated annually according to the size of the New Zealand wheat harvest, were supplemented over many years with imports of flour of 10,000 tons to 12,000 tons annually.

The small import of flour in 1937 and 1938 is the result of governmental policy aimed at the local manufacture of ail flour consumed in New Zealand. For this purpose, it is preferred to import, if necessary, additional wheat for gristing into flour.

The following table sets forth particulars enabling apparent consumption of wheat and flour during the last five years to be determined:—

1934.1935.1936.1937.1983.
Wheat (bushel of 60 lb.).
 Bushels.Bushels.Bushels.Bushels.Bushels.
Wheat-production at preceding harvest9,036,0175,933,2458,859,2237,168,9636,042,981
Excess of imports over exports111,725257,777406,8821,582,7683,444,811
 9,147,7426,191,0229,266,1058,751,7319,487,792
Change in carry-over+ 136,956-2,181,926+ 624,690-1,049,742+ 770,556
Estimated total consumption9,010,7868,372,9488,641,4099,801,4738,717,236
Converted to flour, &c.6,271,0020,341,8556,363,6106,890,3966,545,279
Used for sowing (estimated)345,785378,635336,956282,000290,000
Apparent farm and other consumption2,393,9391,652,4581,935,8432,629,0771,881,957
Flour (ton of 2,000 lb.).
 Tons.Tons.Tons.Tons.Tons.
Production131,414134,067132,987144,724137,083
Excess of Imports over exports10,79112,1917,53532630
Change in carry-over+466+ 1,054-2,274-487+2,027
Apparent consumption141,739145,204142,796145,537135,086

Based upon the figures in the preceding table, the average annual consumption of wheat is approximately 8,900,000 bushels. Of this total, somewhat under 6,500,000 bushels are converted into flour and wheatmeal, about 320,000 bushels are utilized for the next season's sowings, and about 2,000,000 bushels are used as poultry-food or pig-food or for other purposes.

OATS.

Although, as stated above, wheat is the most important grain crop of New Zealand, the area under oats (for all purposes) exceeds that under wheat. Of the total area under oats in 1938-39, 89 per cent. was grown in Canterbury, Otago, and Southland, 4 per cent. in the remainder of the South Island, and 7 per cent. in the North Island. The greater portion of the oat crop is usually converted into chaff without threshing, but the proportion so dealt with depends partly on the condition of the crop and partly on market conditions. In 1934-35, 15.61 per cent. of the area sown was threshed; in 1935-36, 21.33 per cent.; in 1936-37, 23.68 per cent.; in 1937-38, 19.99 per cent.; and in 1938-39, 19.31 per cent. Southland yielded 39 per cent. of the total oat-grain produced in 1938-39, followed by Canterbury with 35 per cent. and Otago with 25 per cent., these three districts together accounting for 99 per cent. of the total oat-grain yield.

The total and average yields of oaten grain and of chaff, hay, or ensilage for the ten seasons ending with 1938-39 were as follows:—

Season.Grain.Chaff, Hay, or Ensilage.
Total Yield.Average per Acre.Total Yield.Average per Acre.
* Bushel of 40 lb.
 Bushels.*Bushels.*Tons.Tons.
1929-303,002,28844.33314,7341.65
1930-313,376,60938.74367,1981.64
1931-322,818,15241.03309,3011.35
1932-335,132,18344.16453,5031.75
1933-343,242,50041.39357,8621.64
1934-351,890,14535.99315,5891.42
1935-363,302,64242.61390,1681.72
1936-373,525,43047.15326,6721.74
1937-382,640,91545.60270,7321.56
1938-392,604,81747.86316,6981.81

VARIETIES OF OATS THRESHED.

An analysis of the threshing returns relating to the season 1938-39 gave the following percentage distribution of varieties of oats threshed:—

Variety of Oats threshed.Percentage of Total Area.Percentage of Total Yield.
White—Per Cent.Per Cent.
  Cartons69.3277.73
  Sparrowbill0.220.27
    Totals69.5478.00
  Dun8.345.74
  Black2.222.12
  Algerian16.4010.73
  Unspecified3.503.41
    All varieties100.00100.00

White oats are predominantly represented in the above figures with over two-thirds of the total area threshed, and over three-quarters of the total yield. Almost the whole of the white oats consist of “Cartons,” this being the trade term for all white oats except those of a distinctive character, such as Sparrowbill. Cartons, in addition to possessing value as feed oats, are used extensively for milling.

BARLEY.

The area sown to barley does not usually fluctuate to any marked degree from year to year, nor does the yield of grain obtained at threshing. However, while the area sown in 1938-39 was slightly in excess of the 1937-38 area, the yield of grain was slightly lower, the average yield showing a drop of 2.63 bushels per acre. During the last ten years, annual sowings have averaged 27,600 acres. Of this area, some 21,000 acres have been threshed for an average annual yield of 750,000 bushels, the balance of 6,600 acres having been used for stock fodder (mostly feeding off).

Information supplied in the spring by growers regarding varieties sown, or intended to be sown, shows the following percentage distribution for 1937-38 and 1938-39:—

Variety.Proportion of Estimated Total Area.
1937-38.1938-39.
 Per Cent.Per Cent.
Plumage-Archer23.1236.30
Chevallier24.9818.43
Spratt-Archer20.5617.20
Goldthorpe-Spratt8.079.51
Cape9.806.47
Skinless7.346.00
Other varieties6.136.09
    Totals100.00100.00

The first four varieties shown are malting varieties. In the aggregate, they account for 77 per cent. of the area in 1937-38 and 81 per cent. of the area in 1938-39.

Dominion production of barley invariably falls short of domestic requirements. During the five seasons ending with 1937-38, annual production averaged 759,000 bushels. During the five calendar years ending with 1938. annual importations averaged 397,000 bushels (stock feed. 201,000 bushels; other barley, 196,000 bushels), while exports were practically nil. It is therefore apparent that Dominion barley requirements are approximately 1,100,000 bushels annually, of which total local production forms 66 per cent. and importations 34 per cent.

Efforts are being made to increase production of malting barley to the point when New Zealand will be self-sufficient in this respect. A Barley Advisory Committee, comprising representatives of growers, maltsters, and the Fields Division of the Department of Agriculture, is working to this end.

POTATOES.

The production of potatoes is normally adequate to meet the home market. In many seasons the crop has been more than sufficient for home requirements, and exports have been made in considerable quantities. The problem of disposal of such surplus quantities has been rendered difficult in more recent seasons by import restrictions on New Zealand potatoes entering Australia. This difficulty and the problem of utilization of potatoes which are too small for commercial use at one time directed attention to the possibility of establishing a potato-flour industry, but no definite action was taken. During 1937 considerable quantities of potatoes were exported to Argentina on account of the failure of the South American potato crop, and in 1938 arrangements were made to ship to South America about 3,600 tons of the surplus production. In contrast, the 1938-39 crop was insufficient to meet home requirements, necessitating the importation of potatoes to supplement the home supplies. The 1938-39 crop was actually the lowest recorded, both for area and yield, since 1892, the area being 5,000 acres below that sown in 1937-38 and 5,800 acres below the average sown for the previous ten years, while the yield was 59,000 tons below that of 1937-38 and 58,000 tons below the average for the preceding ten-yearly period. In 1938-39 57 per cent. of the total potato area was in the Canterbury district. The Dominion figures for the last ten years are as follows:—

Year.Area.Total Yield.Yield per Acre.
 Acres.Tons.Tons.
1929-3023,214130,1075.60
1930-3128,459151,5255.32
1931-3223,786116,7434.91
1932-3324,605129,0795.25
1933-3425,028131,0455.24
1934-3523,001109,1234.74
1935-3622,958121,0045.27
1936-3722,462126,3145.62
1937-3823,090146,7856.36
1938-3918,03287,6714.86

The total yield in 1938-39 was made up of 59,023 tons of table potatoes, 20,318 tons of seed potatoes, and 8,330 tons of pig, &c., potatoes. The corresponding quantities in 1937-38 were 100,137 tons, 31,899 tons, and 14,749 tons.

Since 1936, special statistics of areas and yields of potatoes, classified according to varieties as well as by origin of seed planted (Government certified or uncertified) have been compiled annually. The following figures relating to the 1938-39 season cover 56 per cent. of the total potato acreage.

Name of Variety.Origin of Seed planted.Totals.
Government Certified.Uncertified.Not stated.
Area.Total Yield.Yield per Acre.Area.Total Yield.Yield per Acre.Area.Total Yield.Yield per Acre.AreaTotal Yield.Yield per Acre.
 AcresTons.Tons.AcresTons.Tons.AcresTons.Tons.Acres.Tons.Tons.
Aucklander Short Top1,5947,3284.601,5216,5464.301094404.043,22414,3144.44
Dakota5873,8326.531,8608,6364.642411,0624.412,68813,5305.03
Arran Chief3382,5667.597424,5936.19483216.691,1287,4806.63
Inverness Favourite2451,7277.05826047.373272,3317.13   
King Edward VII1439366.553221,5634.85232904.354882,5995.33
Gamekeeper and Northern Star......4272,1124.95......4272,1124.95
Epicure763664.82733064.1915553.671647274.43
Aucklander Tall Top603986.58351664.74......955645.94
Arran Banner422155.12583215.537162.291075525.16
Iron Duke211527.24673635.42144.00895195.83
Cliff's Kidney251485.92471693.60......723174.40
Majestic251255.0012504.1713534.08502284.56
Maori Chief261666.3820753.75166.00472475.26
Mixed and minor varieties1821,0845.968443,3193.932657872.971,2915,1904.02
Totals3,36419,0435.666,11028,8234.727232,8443.9310,19750,7104.97

"Government certified" seed is that for which a Government certificate has been issued in respect of purity, &c. Seed obtained from the ensuing crop cannot be designated as certified unless the requisite certificate is issued by the authorities.

The above table plainly indicates the superior yielding-capacity of certified as against uncertified seed. Between them, the three principal varieties—viz., Aucklander Short Top, Dakota, and Arran Chief—for which separate figures were available averaged 5.4 tons per acre from certified seed and 4.8 tons per acre from uncertified seed. The advantage of 0.6 tons per acre in favour of crops from certified seed represents a yield-superiority of 12.5 per cent. Over all varieties, the corresponding advantages amount to 1 ton and 20 per cent. respectively. This advantage was even more marked in previous seasons, the yield-superiority covering all varieties in 1936-37 amounting to 35 per cent.

ONIONS.

Areas, yields, and net importations of onions for the last ten years are as follows:—

Year.Area.Total Yield.Yield per Acre.Net Importations (Calendar Year following).

* Excess of exports.

† Not available.

 Acres.Tons.Tons.Tons.
1929-3087010,26311.802,444
1930-317715,8037.525,217
1931-328747,0978.12206
1932-331,1349,2038.1250
1933-341,1129,4528.50-964*
1934-359235,5926.062,546
1935-369287,0897.641,369
1936-377195,9308.252,498
1937-386184,7777.733,670
1938-396746,92910.28

A substantial area is planted annually in onions, and there is an appreciable export in the flush of the season. Later in the year, however, substantial quantities are imported: and, as indicated above, there is normally an excess of imports over the whole year. Local production of this commodity thus fails to reach home requirements.

With a view to stabilizing the industry and ensuring to the growers a steady market at reasonable prices, regulations were issued in March, 1937, under the Board of Trade Act, 1919, setting out certain gradings and specified prices pertaining to all subsequent wholesale dealings in onions. In order to gauge the relationship between supplies and market requirements, the regulations required the furnishing of monthly statements by all growers of ¼ acre or more of onions and by all persons other than onion-growers engaged in the wholesale marketing of onions. These provisions, with certain modifications, were incorporated in now regulations issued in February, 1938, and amended in February, 1939, by which two Marketing Advisory Committees (one for each Island) were merged to function as a Central Committee. Registration of onion-growers and wholesale onion merchants is provided for. Imports and exports are now prohibited except with the consent of the Minister of Customs.

SUPPLEMENTARY FODDER CROPS.

Although grass is the main crop of the farmer in New Zealand, it has been found that at certain periods during the year the pastures need supplementing in order that the grassland may not become unduly exhausted, and also in order to maintain stock in a satisfactory condition. In midwinter the grass is at a low stage of productivity generally, while under dry summer conditions it loses a great amount of its nutritive value. During these periods, therefore, it is necessary that some extra feed should be provided, and this is usually done either by cutting the grass for hay or ensilage when there is an ample surplus on the pastures during the flush of the growing season, or by the provision of green fodder or root crops.

The following table gives detailed figures of the areas of the supplementary fodder crops available during each of the last ten years:—

Year.Chaff, Hay, or Ensilage.Green Fodder.Root and other Crops for feeding to Stock.Total Area of Fodder Crops.
Cereal Crops.Grasses and Clovers, including Lucerne.Wheat and Oats not harvested.Other Crops.
 Acres.Acres.Acres.Acres.Acres.Acres.
1929-30192,660412,58826,240203,438486,9691,321,895
1930-31228,215443,08856,735190,979506,1431,425,160
1931-32232,925484,16075,826212,664493,7891,479,364
1932-33262,970562,33650,300197,633486,8001,560,039
1933-34221,644506,31874,688217,885494,6431,515,178
1934-35225,521523,83864,706211,195462,9951,488,255
1935-36231,036576,87560,023222,458458,2651,548,657
1936-37190,238543,05554,685220,211443,9691,452,158
1937-38176,417482,57162,410222,821443,3191,387,538
1938-39176,779555,94253,562200,519397,0551,383,857

In 1938-39 grasses and clovers cut for hay or ensilage totalled 518,919 acres, and lucerne 37,023 acres. Oats was the only cereal crop utilized in any quantity for this purpose, the area of oats cut for hay or ensilage being 174,527 acres. The principal green-fodder crops, apart from oats, are rape and/or kale (173,092 acres), and chou moellier (12,726 acres). The area under chou moellier has doubled itself over the last eight years, and the crop is becoming increasingly popular for fodder purposes. Of the cereal crops fed-off to stock during the 1938-39 season, oats accounted for 50,847 acres of the total area (64,480 acres). Turnips are the principal root crop grown in the Dominion, the total acreage in 1938-39 being 385,846 acres (including 53,218 acres of turnips and rape mixed). Other root crops included 8,872 acres of mangolds and 1,063 acres of carrots. Pumpkins and marrows were grown for fodder to the extent of 1,274 acres.

The total and per-acre yields obtained from the various crops cut for chaff, hay, or ensilage an as follows for the seasons specified. In the cases of grasses and clovers cut for hay or ensilage, second or catch crops are taken into account in the yield figures, the total yield including crops from areas which had previously yielded some other crop in the season concerned. These areas cannot be counted twice in the statistics of acreage, and average yields cannot therefore be obtained by the mere division of the total yield by the area figures.

Crop.1937-38.1938-39.
Total Yield.Yield per Acre.Total Yield.Yield per Acre.
 Tons.Tons.Tons.Tons.
Wheat2,9061.572,4751.85
Oats270,7321.56316,6981.81
Barley1,4381.831,3041.94
Maize1,6025.291,5636.38
Grasses and clovers for hay697,6001.84829,3991.84
Grasses and clovers for ensilage257,7353.99267,0353.90
Lucerne107,8802.7896,0602.59

GRASS-SEED.

The total area of grasses and clovers cut for seed during the season 1938-39 was 109,695 acres, yielding 1,122,572 bushels of 20 lb., as against 804,228 bushels from 80,463 acres in 1937-38. Canterbury, Otago, and Southland land districts between them provided 88 per cent. of the area cut.

The areas and yields of the principal grass and clover crops harvested for seed during each of the ten years 1929-30 to 1938-39 are given in the tables following:—

AREAS.

Year.Rye-grass.Cocksfoot.Chewings Fescue.Crested Dogstail.Red Clover and Cow-grass.White Clover.Brown-top.
 AcresAcres.Acres.Acres.Acres.Acres.Acres.
1929-3030,05511,7299,8083,4044,7033,710..
1930-3147,94214,00110,5933,3123,3233,3395,158
1931-3230,1419,43713,0102,6963,8672,42310,758
1932-3386,92411,2939,4262,93510,6334,3608,465
1933-3445,9309,4967,8342,69911,5656,6987,936
1934-3566,44812,30911,2943,47513,49610,29215,140
1935-3666,62513,51613,7686,54610,6546,58414,936
1936-3729,66712,97311,4674,96111,5789,23715,579
1937-3833,32311,6208,1622,7958,8094,80010,314
1938-3954,67012,82511,6056,0727,0797,1829,695

YIELDS.

Year.Rye-grass.Cocksfoot.Chewings Fescue.Crested Dogstail.Red Clover and Cow-grass.White Clover.Brown-top.
* Not available.
 lb.lb.lb.lb.lb.lb.lb.
1929-3012,826,3272,009,9702,416,381828,8941,040,022604,874*
1930-3118,749,3052,666,2892,337,070575,664647,949574,224412,273
1931-329,337,456919,9112,383,941491,348786,782284,333311,358
1932-3335,939,4772,335,4972,295,763708,00911,738,218568,888188,531
1933-3415,163,591724,6841,403,151458,2201,838,736834,552268,877
1934-3521,917,6321,876,3861,214,230459,5881,894,9651,335,414390,318
1935-3625,634,1942,374,9092,365,9511,015,9561,807,076786,280299,845
1936-378,247,2861,843,7011,779,420719,9991,882,8911,088,081418,481
1937-3810,547,8431,915,282995,240405,0231,287,894552,483263,384
1938-3915,077,9342,644,8351,900,898646,676995,005863,308222,000

A considerable export of grass-seed has been built up during recent years, especially with the United Kingdom, Australia, and the United States of America, the quantity exported to these countries in 1938 amounting to 42,568 cwt., valued at £217,389. The total quantity of locally-produced grass and clover seed exported to all countries amounted to 45,484 cwt., with a recorded value of £233,372. For further details, see Section X, Subsection B, of this volume.

PASTURE GRASSES.

Grass is by far the most important crop to the farmer, the soils, the climate, and other natural conditions obtaining in the Dominion being very favourable for the growth of grass. Wherever there is light and moisture English grasses thrive when the natural bush and fern are cleared off, and, from the mildness of the winter season, there are very few places where there is not some growth even in the coldest months of the year, enabling cattle to be kept all the year round in the open.

At the beginning of the year 1939 there were 17,663,912 acres under artificially sown grasses (including 665,637 acres cut for seed, hay, or ensilage during the preceding season), and in addition 13,822,137 acres of occupied land still remained in tussock or other native grasses, making a total of 31,486,049 acres of grassland in occupation. The following table shows the respective areas occupied by artificially sown grasses and tussock and other naturally established native grasses during the ten years specified:—

Year.Artificially So Pasture Grasses.Tussock and other Native Grasses.Total Area under Grass.
Cut for Seed, Hay, or Ensilage.Not Cut for Seed, Hay, or Ensilage.*
* Includes approximately 200,000 acres also sown with crops.
 Acres.Acres.Acres.Acres.
1929-30479,44316,872,94814,182,14231,534,533
1930-31532,27216,722,21314,124,03031,378,515
1931-32537,74216,494,91714,294,46331,327,122
1932-33698,29816,422,16314,137,37531,257,836
1933-34599,66216,736,82814,014,17731,350,667
1934-35657,77116,730,40314,184,04431,572,218
1935-36711,28016,784,82214,242,40731,738,509
1936-37639,63216,869,82214,188,18431,697,638
1937-38563,03416,982,41114,015,11231,560,557
1938-39665,63716,998,27513,822,13731,486,049

During the year 1938-39, 71,114 acres of land which had not previously been cultivated were sown down in new pasture, as against 72,537 acres in 1937-38.

TOP-DRESSING (PASTURE LANDS).

As shown in the following table, a total area of 4,016,944 acres of grassland was top-dressed during the twelve months ended 31st January, 1939. an increase of 142,955 acres as compared with the area returned as top-dressed during the preceding twelve months. The figures relate only to grassland top-dressed, fertilizers used in connection with field crops not being included.

Nature of Top-dressing.North Island.South Island.Dominion.
 Acres.Acres.Acres.
Artificial fertilizers only2,271,470313,1482,584,618
Lime only96,122122,323218,445
Both artificial fertilizers and lime886,192327,6891,213,881
    Totals3,253,784763,1604,016,944

Top-dressing in New Zealand is carried out mainly on cattle-grazing areas, including, of course, dairy-farms; consequently the North Island, which contains 87 per cent. of the Dominion's cattle, accounts for 81 per cent. of the area top-dressed.

The following table shows particulars of areas top-dressed over the last ten years:—

Year.Area Top-dressed.
With Artificial Fertilizer only.With Lime only.With both Artificial Fertilizer and Lime.Total Area Top-dressed.
* Not available.
 AcresAcres.Acres.Acres.
1929-30***2,650,748
1930-31***2,871,316
1931-32***2,454,321
1932-331,741,035102,952594,1272,438,114
1933-341,469,537116,234663,3992,249,170
1934-351,703,325145,986834,8032,684,114
1935-361,798,714150,585932,5852,881,884
1936-372,122,386176,7631,027,1303,326,279
1937-382,516,236188,9531,168,8003,873,989
1938-392,584,618218,4451,213,8814,016,944

The activities of the Department of Agriculture in the treatment of experimental plots from the various aspects of soil and crop requirements, and the subsequent data published thereon, have undoubtedly been an important factor in conveying to the farmer the many advantages to be derived from the scientific treatment of pastures, especially in this regard. That the farmer realizes these advantages is apparent from the increased use being made of top-dressing.

GARDENS AND PLANTATIONS.

In 1938-39 there were 7,806 acres of market gardens. There were 4,403 acres of tung trees, 600 acres of hop-vines, 422 acres of grape-vines, and 188 acres of passion-fruit vines. Nurseries and seed-gardens occupied 890 acres, while 81,482 acres were in private gardens, grounds, &c. The area in plantations (not virgin bush) was 872,423 acres, made up of 850,570 acres of conifers and 21,853 acres of eucalyptus and other broadleaved trees. State plantations are covered by these figures.

It should be noted that these statistics relate to holdings of 1 acre or upwards outside boroughs.

The figures for market gardens, plantations, &c., for the last ten years are as follows:—

Year.Market Gardens.Nurseries, Ac.Private Gardens, &c.Plantations.
 Acres.Acres.Acres.Acres.
1929-305,87165774,434289,020
1930-316,6841,00470,208341,591
1931-327,61498476,247399,307
1932-336,8521,00377,886409,860
1933-346,63488879,160427,471
1934-357,2841,27681,694781,684
1935-367,9051,01381,598807,877
1936-377,79595582,648815,965
1937-387,41387981,698874,974
1938-397,80689081,482872,423

ORCHARDS AND THE FRUIT INDUSTRY.

A great impetus to the planting of fruit-trees was given by the discovery that tracts of land, principally in the Nelson land district, which formerly were looked on as being practically useless, were eminently suited for growing fruit, particularly apples. For a time, considerable areas of this and other land were annually added to the Dominion's orchards, but the acreage then declined until it became stabilized in the neighbourhood of 25,000 acres. However, a further decline has set in over the last two years, the 1938-39 figure of 21,753 acres showing a decrease of 3,103 acres as compared with the 1936-37 total.

In recent years there had been a considerable increase in the area devoted to citrus-culture, but further expansion in this direction would now appear to have been halted, a slight decrease in the acreage devoted to lemon-culture being recorded in 1938-39. As from 1st May, 1939, the marketing of lemons was brought under the control of the Primary Products Marketing Department, and sales by growers for reselling purposes, except to the Department, were prohibited. The total area under lemons and oranges is estimated to be about 1,817 acres (inclusive of areas situated within borough boundaries), comprising 1,037 acres of lemons and 780 acres of oranges. At the 31st March, 1939, registered orchards contained 93,373 lemon-trees and 69,770 orange-trees, compared with respective totals of 94,054 and 68,597 a year earlier.

The following table shows the area outside borough boundaries which has been returned as under fruit-trees at each of the last ten annual enumerations:—

 Acres. Acres.
1929-3024,8611934-3525,087
1930-3128,1341935-3625,072
1931-3225,7551936-3724,856
1932-3325,3171937-3822,397
1933-3425,0691938-3921,753

A classification of 1938-39 orchard areas by size (the classification being made to the nearest quarter acre) resulted as follows:—

Size of Orchard.Number of Orchards.Area of Orchards.
  Acres.
Under 1 acre4,3231,783
1 to 2 acres2,1772,768
2¼ to 3 acres280792
3¼ to 4 acres230889
4¼ to 5 acres2151,058
5¼ to 10 acres5754,427
10¼ to 15 acres2563,204
15¼ to 20 acres1262,191
20. ¼ to 25 acres521,134
25¼ to 30 acres24641
30. ¼ to 40 acres341,116
40¼ to 50 acres15625
50 acres and over151,125
Totals8,32221,753

It is apparent that the majority of orchards are comparatively small, the Dominion average area being but 2.6 acres. Those up to 5 acres represent 87 per cent. of the total number and account for 34 per cent. of the total area.

The total orchard area is shared fairly evenly by both North and South Islands, with six land districts aggregating 90 per cent. of the Dominion acreage. Details of distribution by land districts and average orchard sizes are given in the following table, which is arranged in order of aggregate district areas:—

Land District (excluding Boroughs).Number of Orchards.Area of Orchards.Average Size.
  Acres.Acres.
Nelson5784,8008.30
North Auckland1,9954,4692.24
Otago6483,2835.07
Hawke's Bay6413,1474.91
Canterbury1,2772,1951.72
Auckland1,4221,7021.20
Remainder of land districts (six)1,7612,1571.22
All districts8,32221,7532.61

The following table is the result of a special collection for the 1938-39 season from registered orchardists on holdings of 1 acre or more outside boroughs. While 3,169 orchards covering 17,748 acres are accounted for, it is estimated that a further 1,500 registered orchards totalling approximately 3,000 acres are situated within boroughs. The estimated number of trees bearing and not bearing, together with estimated quantities of fruit produced, sold, and held for sale, are shown for each variety of fruit.

Variety of Fruit.Number of Trees bearing.Quantity of Fruit produced.Quantity of Fruit sold.Quantity of Fruit held for Sale.Number of Trees not bearing.
  Bushels.Bushels.Bushels. 
Apples1,138,4002,344,2002,044,400196,000144,700
Pears111,100338,800293,80025,60016,400
Peaches118,900270,000254,5002,40041,100
Nectarines22,50037,60031,600..4,709
Apricots59,800108,200105,900..14,500
Plums65,90098,70090,60070026,800
Cherries18,40013,40012,400..9,400
Quinces8,70015,00013,900..5,900
Sweet oranges18,7006,9004,90040012,600
Poorman oranges11,70029,50024,0003,5009,000
Lemons48,700104,90089,7006,30012,700
Other citrus fruits8005003001001,700
Other tree fruits900300300..500
Totals, all fruit trees1,624,5003,368,0002,966,300235,000300,000

A good market exists locally for fruit of all descriptions. However, growers of apples and pears are mainly concerned with exports, which are controlled by the New Zealand Fruit-export Control Board. This Board came into being as a result of the Fruit Control Act, 1924, and commenced functioning in 1926.

Since 1911 the Government has assisted the export trade in apples and pears by the provision of guaranteed returns to growers exporting these fruits. Originally at the rate of 1d. net per pound, the basis of the guarantee was changed in 1927 to a per-case rate calculated to cover packing and transportation costs. In subsequent years the guarantee rate was annually reviewed by the Government.

In 1935 the guarantee ceased, except in respect of apples and pears exported to new markets. As an inducement to explore and develop new territory, the Government guaranteed for that year an average c.i.f. return of 9s. per case (New Zealand currency) on approved varieties, grades, and sizes of apples and pears exported to approved new markets through the Fruit-export Control Board. The guarantee also provided for transportation-costs in excess of those entailed in shipping fruit to the United Kingdom.

Regarding established markets, the market guarantee for 1935 was given by the Fruit-export Control Board, and the liability of such guarantee was met out of an Export Guarantee Fund which is being built up by the Board. The arrangement was that growers exporting to new or established markets would contribute to this fund a fixed sum per case so as to yield an aggregate contribution of not more than £12,500 in each of the seasons 1935 to 1937 inclusive. The Government undertook to subsidize the fund £1 for £1 up to an equal amount. For the season 1937-38 the per-case levy was fixed at 1d.

A State guarantee of 11s. per case c.i.f. (New Zealand currency) has applied to exports of fruit to certain specified markets since 1937-38. For apples and pears marketed locally, growers were guaranteed 5s. per bushel at orchard during 1937-38, but at the end of that season this guarantee was discontinued.

All fruit intended for export is subjected to a rigid inspection by Government officials. The success of the export trade is to a very large extent due to the goodwill gained through this inspection, which, in addition to protecting the guarantee interests, assures overseas buyers of high-quality fruit of uniform standard. In 1938 the value of apples exported aggregated £719,528, of which exports to the United Kingdom represented £489,093. Pears exported aggregated £52,568 in value, the United Kingdom likewise receiving the bulk of the fruit. The rapid progress of the export trade can be gauged by comparing the foregoing figures with those for 1928, in which year exports of apples and pears amounted to £452,391 and £20,404 respectively.

The Department of Agriculture assists orchardists by supplying information on fruitgrowing generally, and as to the most up-to-date methods to adopt for the control of diseases and insect pests, and for pruning, &c. Practical demonstrations of pruning, spraying, and the grading and packing of fruit are given regularly by the Orchard Instructors attached to the Department. A comprehensive scheme of experiments is being conducted by the Department, the operations covering a wide field. These embrace the testing of spraying specifics and other materials for the better and more economic control of diseases and pests, orchard manurial experiments, &c.

The total area in vineyards outside of borough boundaries is 422 acres. The growing of outdoor grapes is chiefly confined to the districts situated between the North Cape and Hawke's Bay. The greater portion of the crop is used for winemaking, several wines of excellent quality being manufactured, but considerable quantities of outdoor-grown grapes are sold for table use.

The growing of passion-fruit occupies 188 acres, mainly in the North Auckland Land District, where climatic conditions are favourable to production.

Since 1913 the State has had authority to borrow money for the purpose of making advances for the establishment of cold stores for fruit, and of fruit-canning works, and otherwise for the assistance of the fruit-growing industry.

The Orchard-tax Act, 1927 (amended in 1933 and 1934), continuing legislation dating from 1916, provides for the levying in each year of a tax of 2s. per acre on commercial orchards, with a minimum tax of 5s. Of the proceeds, £850 is paid over to the New Zealand Fruitgrowers' Federation, and the balance credited to the vote of the Department of Scientific and Industrial Research for use as required in assisting the industry. Authority also exists for the imposition of an additional tax in the case of apple, pear, and quince orchards in commercial fruitgrowing districts for the purpose of combating fireblight. Imposition is discretionary, however, on the part of fireblight committees elected by the fruitgrowers in the various districts. The amount of the tax is at the discretion of the committees, and is collected at their request by the Department of Agriculture. No tax is payable in respect of any orchard with fewer than 120 fruit-trees.

Commercial orchards registered as at March, 1939, numbered 4,653, of which 2,481 were taxable and 2,172 non-taxable. The total orchard-tax payable in respect of the year 1938-39 was £2,114.

A Fruit Marketing Committee was appointed by the Minister of Industries and Commerce in July, 1936. This Committee's report, which was released in April, 1937, contained far-reaching proposals towards the more orderly marketing of fruit and vegetables. Inter alia, the question of price-spreads between the grower and the consumer was thoroughly investigated. The major recommendations of the report were subsequently given effect to in an amendment to the Primary Products Marketing Act, whereby fruit and vegetables were brought within its scope.

The New Zealand-grown Fruit Regulations, 1938, deal with the grading, packing, and sale of fruit generally, and provide for the collection from growers by means of inspection-fee stamps of a levy of ½d. or 1d. per case (according to the size of the case) of apples, pears, and lemons sold on the local markets.

TOBACCO.

Although the cultivation of tobacco-leaf was initiated only a few years ago, the industry has made marked progress. Certain districts appear to be well suited to the growth of good-quality leaf, and growers are becoming increasingly familiar with the methods and plant required for the production of cured leaf acceptable to manufacturers. Much of the production is in accordance with contracts arranged between local manufacturers and growers. Most of the tobacco produced is flue-cured, producing a yellow-leaf tobacco which is used largely for the manufacture of cigarettes, the balance, air-cured, being used mainly in the manufacture of smoking mixtures and pipe tobacco. The overseas market is also receiving attention, and during 1938 over 240,000 lb. was exported.

Figures collected from occupiers throughout the Dominion of holdings of 1 acre or more situated outside boroughs show the following areas planted in tobacco and the corresponding yields (where available) in the years specified:—

 Acres.Yield in lb.
* Not available.
1929-301,073*
1930-31932722,329
1931-321,7261,318,624
1932-332,1261,784,676
1933-311,8031,239,946
1934-351,3581,106,424
1935-361,5181,065,693
1936-372,1321,514,124
1937-381,9721,748,300
1938-391,8071,402,617

In addition, an area fluctuating between 150 and 200 acres is grown annually in the of Motueka. The great bulk of the tobacco crop is produced in Waimea County, in which 1,743 acres were grown in 1938-39. The majority of leaf is flue-cured, the proportions for flue-cured and air-cured being in the vicinity of 89 per cent. and 11 per cent. respectively.

The Tobacco-growing Industry Act, 1935, provides for the regulation of the industry, and is briefly referred to in the preceding subsection, while regulations issued under the Board of Trade Act, 1919, fix the prices payable for raw tobacco from year to year.

PHORMIUM.

Large areas in various parts of New Zealand are covered with phormium, or New Zealand flax, the fibre of which is largely used for ropemaking, &c. The area of 57,602 acres returned as under phormium in 1938-39 was divided between the North and South Islands in the proportions of 53 per cent. and 47 per cent. respectively. The figures for each of the last ten years are as follows:—

Year.Area. Acres.Year.Area. Acres.
1929-3068,2601934-3572,823
1930-3171,2191935-3668,933
1931-3277,4371930-3763,015
1932-3364,2061937-3866,515
1933-3472,8531938-3957,602

In recent years flax-milling has recorded a very heavy decline from the peak reached in 1925-26, when 1,241 persons were employed and the total value of output reached £550,000. By 1930-31 the collapse of overseas prices had caused most of the mills to close down, with the result that over 1,000 men were rendered unemployed, and the value of the output was reduced to less than £50,000.

During 1930 and 1931 deputations from exporters, flaxmillers, and flax-workers approached the Government for assistance to the industry. After careful consideration of the circumstances the former Unemployment Board decided to grant a subsidy of £3 per ton on hemp graded for export on or after 18th December, 1931, with the proviso that on and after the 20th January, 1932, this was to be replaced by a subsidy on hemp exported to England and Australia of £4 per ton. In both periods the subsidy was to he plus the difference between a rate of exchange of £105 per cent. and a maximum of £118 12s. 6d. per cent.

From reports received, it was evident that the granting of the subsidy had the desired effect of the reopening of mills, and the re-employment of a considerable number of workers. The subsidy of £4 per ton on hemp exported continued until 31st March, 1936.

After April, 1936, overseas prices increased slightly, and the subsidy was accordingly reduced to a graduated scale of subsidy from “Good Fair” at £4 per ton to “Rejected” at £2 10s. per ton. This change in subsidy was introduced for the purpose of encouraging millers to produce the finer grades of fibre. During 1936-37 overseas prices fluctuated somewhat, and the subsidy was increased or decreased accordingly. Then when prices began to fall to a very low level the Government decided to increase the subsidy on hemp shipped on and after 1st February, 1938, to the following rates:—

 Per Ton.
 £s.d.
Good Fair9100
High Fair8100
Low Fair700
Common6100
Rejected600

The above rates, which applied to fibre stripped up to 15th July, 1939, and shipped up to 31st August, 1939, were recommended by the Flax Plan Industrial Committee set up in October, 1937, to co-operate with the Bureau of Industry. The Committee's functions, which are defined in the Industrial Efficiency Flax Regulations 1938, are to investigate matters relating to the welfare of the flax industry generally, and make suitable recommendations to the Bureau of Industry regarding the efficient marketing of phormium products and rates of subsidy, if any, to be paid on hemp exported. In a further endeavour to bring about the rehabilitation of the flax industry, the Government in October, 1939, declared it a licensed industry within the meaning of the Industrial Efficiency Act, 1936.

The amount paid by way of subsidy since its inception in 1931 totalled £115,731 up to 31st August, 1939.

Statistics of the operations of flax-mills are included in the section of this volume dealing with Factory Production, to which reference should be made for details of output, &c. Since the year 1934 a large wool-pack and sacking factory has operated at Foxton, thus providing a fresh avenue for fibre consumption.

It is estimated that the amount of fibre required for internal consumption is approximately 3,500 tons per annum, any surplus being exported.

HOPS.

According to returns covering holdings of 1 acre or over outside boroughs, there were 600 acres under hop-vines in the season 1938-39.

Practically the whole of the hop gardens are located in Waimea County. Production per acre usually ranges between 1,200 lb. and 1,500 lb., and the aggregate crop is sufficient to satisfy local requirements as well as to provide a surplus for export. Exports during the last five calendar years were as follows :—

Year.lb.Value. £
1,934343,68721,809
1,935447,18527,359
1,936477,63028,484
1,937135,4198,347
1,938387,97221,093

The marked decline in exports in 1937 was occasioned by a poor crop in the season 1936-37.

By Order in Council dated 12th January, 1939, the sale of hops was brought under the control of the Primary Products Marketing Department.

SUBSECTION C.—PASTORAL PRODUCTION. SUMMARY OF LIVE-STOCK.

THE numbers of live-stock of various kinds at each of the last five annual enumerations were as shown in the following table. Detailed statistics of livestock, by counties and land districts, are contained in the Statistical Report on Agricultural and Pastoral Production issued annually by the Census and Statistics Department. This publication also contains the summary tables appearing in Parliamentary Paper H.-23, which is devoted exclusively to a statistical analysis of the annual sheep returns.

1935.1936.1937.1938.1939.
Horses272,986276,170277,799278,167274,803
Dairy cows1,952,0941,951,5071,935,5241,872,7971,853,713
Cattle (including dairy cows)4,293,4994,254,0784,389,1014,506,0824,564,948
Sheep shorn during season25,639,65426,278,47727,319,18528,509,66829,269,034
Lambs shorn during season3,529,2023,618,6484,263,4034,192,0233,923,101
Lambs tailed during season15,689,49215,696,61716,866,02117,340,91416,948,979
Sheep (including lambs) as at 30th April29,076,75430,113,70431,305,81832,378,77431,897,091
Pigs762,755808,463802,419756,466683,463

The live-stock census formerly covered asses, mules, and goats also, but these classes have been dropped since 1930. Numbers in 1930 were: Asses and mules, 218; Angora goats, 9,514; other goats, 29,613.

In the next table the figures of live-stock are given for each land district. Horses, dairy cows, total cattle, and pigs are as at 31st January, 1939. Sheep shorn, lambs shorn, and lambs tailed are for the season 1938-39. Sheep are as at 30th April, 1939.

Land District.Horses.Dairy Cows.Total Cattle.Sheep shorn.Lambs shorn.Lambs tailed.Sheep.Pigs.
North Auckland31,391385,892746,6991,080,185211,443523,4001,127,298137,404
Auckland40,631607,6251,155,4742,193,098488,2401,237,1782,228,058244,033
Gisborne13,28652,137374,9672,199,854739,354990,7222,384,53020,357
Hawke's Bay17,00865,452395,5673,861,493608,1432,185,7674,209,78523,277
Taranaki15,930237,545404,883813,934210,173466,592789,32669,142
Wellington37,255252,085884,3246,386,9811,514,3613,665,6426,770,22593,388
Marlborough5,83914,78841,7911,064,11537,526506,9531,205,6607,368
Nelson5,38734,55973,954396,59111,716182,211468,40817,844
Westland2,04014,99645,42575,1146,55358,64593,3456,114
Canterbury47,64674,062180,9735,126,30777,3203,381,9235,652,32740,136
Otago28,60348,470116,5583,560,4077,4151,978,9404,069,93614,878
Southland23,78766,102144,3332,505,95510,8571,771,0062,898,1939,522
    Totals274,8031,853,7134,564,94829,269,0343,923,10116,948,97931,897,091683,463

While the annual collection of agricultural and pastoral statistics covers only areas of 1 acre or over outside borough boundaries, the above tables include an allowance for live-stock within boroughs.

SHEEP.

The Dominion is eminently suited for sheep-breeding, practically every description of sheep finding a favourable local habitat. In the hilly and down country of the South Island the Merino has been bred for very many years, and was the original sheep depastured. In fact, the Merino ewe furnished the foundation of the crossbred stock which has made Canterbury mutton and lamb famous on British meat-markets. In the early clays of the Canterbury meat trade the English Leicester of the original type was the favourite ram for putting to the Merino ewe. Of later years the Lincoln has been largely employed to cross with the Merino, and black-faced rams have been further employed to put to the crossbred ewes. Systematic inbreeding of Merino-longwool half-bred sheep produced the now world-known Corriedale breed, which is the most numerous breed next to the Romney Marsh. In the North Island the Romney Marsh sheep, which suits the conditions obtaining in that portion of the Dominion, has become the most popular sheep; it is also increasing in numbers in the South Island. Southdown, Border Leicester, English Leicester, and Lincoln sheep are other breeds of numerical importance.

The number of sheep at the 30th April reached a total of 30,841,287 in 1930. An annual decline of about 1,000,000 then set in and continued until 1933; since then, however, successive increases raised the total to the record figure of 32,378,774 in 1938. Though the 1939 figure shows a decrease of nearly 500,000, the total returned, 31,897,091, is the second highest recorded.

In the following ten-year table showing sheep distribution by Islands, the Chatham Islands are included in the South Island, as they form portion of the Canterbury-Kaikoura Sheep District.

Year.North Island.South Island.Total Sheep at 30th April.
1,93016,535,91314,305,37430,841,287
1,93115,886,87613,905,64029,792,516
1,93214,946,98713,744,80128,691,788
1,93314,954,02912,801,93727,755,966
1,93415,264,58813,384,45028,649,038
1,93515,749,01613,327,73829,076,754
1,93616,371,84413,741,86030,113,704
1,93717,065,13514,240,68331,305,818
1,93817,705,99914,672,77532,378,774
1,93917,509,22214,387,86931,897,091

The following table shows the number of rams, wethers, breeding-ewes, dry ewes, and lambs in the Dominion for the last five years:—

Year.Rams.Wethers.Breeding-ewes.Dry Ewes.Lambs.Totals.
Stud Sheep (entered in Flock-book).
1,93511,249..231,6057,292169,041419,187
1,93612,398..249,0167,105174,869443,388
1,93710,991..260,5106,077188,320465,898
1,93812,261..266,7247,588195,045481,618
1,93913,278..268,2577,729190,189479,453
Sheep of a Distinctive Breed but not entered in Flock-book.
1,935459,821996,3073,905,470248,3431,712,1597,322,100
1,936480,0051,158,0975,078,834279,1152,067,7089,063,759
1,937504,6531,138,9614,968,376246,7822,140,3458,999,117
1,938510,0991,171,3225,105,228298,3572,254,8479,339,853
1,939530,3481,183,0365,333,119301,5502,231,1339,579,186
Crossbred Sheep.
1,935..1,485,04713,675,342732,4305,442,64821,335,467
1,936..1,450,54813,341,111578,8715,236,02720,606,557
1,937..1,514,28014,103,191542,6585,680,67421,840,803
1,938..1,723,39514,291,914728,6325,813,36222,557,303
1,939..1,632,02214,358,923565,9065,281,60121,838,452
Totals.
1,935471,0702,481,35417,812,417988,0657,323,84829,076,754
1,936492,4032,608,64518,668,961865,0917,478,60430,113,704
1,937515,6442,653,24119,332,077795,5178,009,33931,305,818
1,938522,3602,894,71719,663,8661,034,5778,263,25432,378,774
1,939543,6262,815,05819,960,299875,1857,702,92331,897,091

The average size of the flocks was 962 in 1935, 984 in 1936, 1,004 in 1937, 1,015 in 1938, and 992 in 1939. A classification according to size shows the following position:—

Size of Flocks.1935.1936.1937.1938.1939.
1 to 2007,9797,6687,3317,1437,475
201 to 5007,3427,3387,4747,6827,789
501 to 1,0006,5036,8017,1027,4767,461
1,001 to 2,5005,9946,2966,6656,9036,788
2,501 to 5,0001,6951,7501,8501,9441,881
5,001 to 10,000551578592596588
10,001 to 20,000149134135141140
20,001 and over2525282421
    Total flocks30,23830,59031,17731,90932,143

The numbers of the different classes comprising the flocks in April, 1939, were as follows:—

Breed of Sheep.Stud Sheep entered in Flock-book.Sheep of a Distinctive Breed, not entered in Flock-book.Totals.
Merino25,4321,042,1131,067,545
Lincoln2,31629,33231,648
Romney217,6944,187,1624,404,856
Border Leicester17,23445,43962,673
English Leicester20,80234,62655,428
Shropshire1,6408,37710,017
Southdown129,982237,621367,603
Corriedale52,1981,485,9741,538,172
Ryeland7,0705,65212,722
Half-bred4,4802,495,9162,500,396
Other breeds6056,9747,579
    Totals479,4539,579,18610,058,639
Flock sheep—   
  Crossbreds and others not otherwise enumerated....21,838,452
    Grand total....31,897,091

The following diagram shows the movement in the number of breeding-ewes and in the total number of sheep respectively recorded annually on 30th April since 1916:—

NUMBERS OF SHEEP AND BREEDING-EWES, 1916-39.

(Semi-logarithmic scale.)

The period of decline in total sheep population between 1918 and 1922 was characterized by unusually heavy exports of mutton and lamb. However, reversion to a period of normal activity in the export trade, combined with increasing numbers of breeding-ewes, resulted in flocks rising steadily to nearly 31,000,000 in 1930. That year marked the beginning of a further spate in the export of frozen lamb in particular, and flocks fell away until 1931, when a recovery manifested itself, resulting in the record total of 32,378,774 in 1938. Heavy exports of frozen mutton during 1938 were followed by a decrease of nearly 500,000 in the total sheep as at 30th April, 1939.

The diagram clearly shows the postponed effect on total sheep population produced by a decline in the number of breeding-ewes. Each of the four years marked by a decrease in breeding-ewes has been followed by a reduction in total sheep twelve months later. Breeding-ewes have been rising steadily in number since 1932, and the total for 1938 showed an advance of over 331,789 over the previous record figure established in 1937. This rise has been maintained in 1939, resulting in a new record total of 19,960,299, a further increase of 296,433.

SHEEP FLOCKS OF THE WORLD.

The latest figures obtainable showing the number of sheep in the principal sheep countries for which information is available, are given hereunder:—

Country.Number of Sheep. (Thousands.)Country.Number of Sheep. (Thousands.)
Australia113,373Bulgaria8,500
Russia (U.S.S.R.)57,300Greece8,450
United States53,762French West Africa8,412
Argentina43,790Mexico6,000
India (whole)42,085Algeria5,965
South African Union41,150Chile5,749
New Zealand31,897Bolivia5,232
United Kingdom26,775Germany (including Austria)5,125
China21,933Iraq4,976
Spain19,093Canada3,415
Uruguay17,931Poland3,411
Turkey16,449Tunis3,383
Iran16,019Portugal3,274
Peru14,900Kenya3,255
Brazil12,900Eire3,120
Rumania12,373British Somaliland2,500
French Morocco10,162Anglo-Egyptian Sudan2,500
Yugoslavia10,137Manchukuo2,208
France9,872Syria and Lebanon2,129
Italy9,467Italian Somaliland2,000

WOOL PRODUCTION AND EXPORT.

Although appearing seventh in order in the preceding table of flocks, in point of actual production of wool New Zealand is the fourth largest in the world and ranks third in the list of principal exporting countries, according to figures collected by the Imperial Economic Committee. With the exception of an annual consumption of some 6,000,000 lb. or 7,000,000 lb. by local woollen-mills, the whole of the wool produced in New Zealand is exported.

Statistics of wool-production and of stocks of wool of necessity include not only wool from a variety of breeds of sheep, but also wool in different stages of treatment—greasy, scoured, slipe, washed, &c. Consequently, global statistics of wool-production and of stocks are arrived at by the addition of weights of a variety of types of wool. In view of this, it can readily be seen that the “ actual weights” of wool-production or of stocks may give a misleading picture of the true position; and, consequently, it becomes necessary to arrive at a common measure in which the various types of wool may be expressed. This common denominator is found in New Zealand, as in international practice, in the expression of the weight of wool on a greasy basis. This involves the estimation of the greasy equivalent of scoured, slipe, and washed wools. The average clean yield of New Zealand greasy wool, after making allowance for the relative proportions of crossbred, merino, and half-bred wools in the total, is estimated at 68 per cent., while that of scoured wools is estimated at 94 per cent., and that of slipe wools at 82 per cent. On the basis of these figures, the factor for converting scoured wool to a greasy basis is 138./100, and for slipe wool 120.6/100.

In the following table covering the last ten seasons, where conversion to a greasy basis has been necessary the figures have been computed using the conversion factors given above. Washed wool, which is of negligible quantity, has been converted on the same basis as scoured, while wool on skins has been taken at an average of 4 lb. per skin.

Year ended 30th June,Exports.Used by New Zealand Mills.Variation in Stocks.Estimated Production.
Wool.Wool on Skins.
Million Pounds Weight.
1,930197.94.85.5+53.5261.7
1,931233.26.45.3+13.7258.6
1,932236.96.86.1+19.7269.5
1,933294.911.17.1-36.0277.1
1,934297.514.46.8-29.1289.6
1,935211.89.07.1+37.1265.0
1,936331.78.27.8-43.4304.3
1,937300.07.07.7-11.8302.9
1,938269.56.27.2+13.9296.8
1,939319.18.07.3-6.7327.7

Despite a substantial accretion to the number of sheep in the Dominion, a decline in wool production took place in 1937-38 as a result of climatic conditions causing the wool in some districts to be lighter conditioned than in either of the two preceding seasons. Although the sheep population at 30th April, 1939, showed a decrease of nearly 500,000 as compared with the position twelve months earlier, the number of animals shorn in the 1938-39 season exceeded that for 1937-38 by over 750,000. This factor, together with a more favourable growing season and a later shearing season, resulted in the highest wool-clip yet recorded in the Dominion, the estimated production being 30,900,000 lb. in excess of the 1937-38 yield.

DISTRIBUTION OF PURCHASES OF NEW ZEALAND WOOL.

A reliable indication of the distribution of purchases of New Zealand wool is provided by the following table, details for which were supplied by Dalgety and Co., Ltd.:—

Distribution of Purchases at Sales held in 1938-39 Season.

Destination.Bales.
United Kingdom316,817
France147,444
Germany20,221
Japan, China, India31,714
Australia34,300
U.S.A. and Canada48,600
Belgium and Netherlands37,233
Poland and Czechoslovakia6,782
Russia, Norway, Sweden, Denmark19,462
Egypt and Mediterranean ports7,329
Local manufacturers27,800
Local scourers22,500
Total720,202

PRODUCTION OF WOOL IN PRINCIPAL PRODUCING COUNTRIES .

The following table, compiled from official sources, shows the wool-production of the principal producing countries in the years specified. Production in these countries accounts for approximately 75 per cent. of the world's total, of which New Zealand's share is about 8 per cent.

Country.Wool-production (on a greasy basis).
1930-31.1931-32.1932-33.1933-34.1934-35.1935-36.1936-37.1937-38.1938-39.
Million Pounds Weight.
Principal Exporting Countries—         
Australia9131,0081,0639961,0159719831,010958
Argentina361383393387370360379376385
New Zealand259270277290265304303297328
South Africa300313329283219250277243261
Uruguay16510611193112110114107114
Total of above countries1,9982,0802,1732,0191,9811,9952,0562,0332,046
Other Important Countries—         
United States435464440460451453449455458
Soviet Russia302196129121128158202259303
United Kingdom111113119120115109108107111

STOCKS OF WOOL.

Statistics relating to stocks of wool held in the Dominion on 30th June are compiled from returns obtained from woolbrokers, woollen-mills, freezing-works, wool-scouring works, shipping companies, Harbour Board stores, farmers, and the New Zealand Railways Department. All wool, whether sold or unsold, is required to be accounted for. A little of the wool held by farmers is possibly omitted, but the statistics are complete enough for practical purposes.

Comparative figures for the last ten years are as follows:—

At 30th June,Greasy.Scoured and Washed.Slipe.Crutchings, &c.Wool on Skins.Unspecified Wool.Total, converted to Greasy Basis.
Thousand Pounds Weight.
1,93052,3964,27910,4116,2896971,32479,200
1,93159,8116,61610,9167,0671,6212,11592,900
1,93274,5606,16815,1337,1521,7962,320112,600
1,93355,5813,9865,3526,4592,09053976,600
1,93427,4444,1585,9333,8701,5101,79747,500
1,93559,9104,9727,5046,8261,45244284,600
1,93621,6092,8907,7014,65470382741,200
1,93710,4952,2376,2075, 8658961,52929,400
1,93820,4733,4589,1845,1021,02587443,300
1,93917,0983,3866,3115,2451,39153836,600

Stocks of wool at the end of the 1938-39 season show a decrease of 6,700,000 lb. as compared with holdings at the end of the previous season. The average wool stocks at 30th June for the last ten years have been 64,000,000 lb., or 27,000,000 lb. greater than the latest figure. The comparatively small carry-over at the end of last season can be attributed to the willingness of growers in meeting the market despite the decline in prices as compared with the previous season, over 05 per cent. of wool offered at auction being disposed of. According to Dalgety's Wool Review, the average realization was 9.17d. per pound, and although much lower than the average for the two preceding seasons (10.04d. in 1937-38 and 15.71d. in 1936-37) was nevertheless an advance over the average price ruling for the last ten seasons (8.53d.). Similar average prices in previous seasons were 9.13d. (1935-36), 6.54d. (1934-35), 11.07d. (1933-34), 5.15d. (1932-33), 5.26d. (1931-32), 5.67d. (1930-31), and 8.55d. (1929-30).

Of the total stocks at 30th June, 1939, woolbrokers held 11,700,000 lb. and farmers 2,700,000 lb; both these figures are on a greasy basis. The balance was divided between woollen-mills, freezing-works, wool-scouring works, shipping companies, and railway and Harbour Board stores. The classification is made on the basis of possession and not of beneficial ownership.

Details of wool stocks at 30th June, 1939 (without conversion to a greasy basis) are as follows:—

Greasy.Scoured.Washed.Slipe.Crutchings, &c.Wool on Skins.Unspecified.
Thousand Pounds Weight.
Merino1,743216..1315419..
Half-bred4,698566208893852208..
Corriedale420111446310..
Other (including crossbred)—       
Sheep7,7158192791,7423,947802..
Lambs1,1753898222,597229259..
Unspecified1,34750241,021..93537
Totals17,0982,0511,3346,3105,2451,391537

WOOL SHIPMENTS FROM PRINCIPAL COUNTRIES.

Shipments of wool from the principal exporting countries during the twelve months ended 30th June, 1939, are shown below according to the country to which shipped. The figures represent actual weights shipped to the countries shown, irrespective of the condition of the wool (scoured, greasy, &c.), and without making allowance for subsequent re-exports to other countries. The absence of figures in some cases does not necessarily indicate that no wool was shipped; shipments may be included in the figures for “Other Countries.”

Country to which shipped.Shipments from 1st. July, 1938, to 30th June, 1939, from
Australia.New Zealand.South Africa.Argentina.Uruguay.
* Includes six million lb., option Continent. In addition, a further portion of this wool is sold In the United Kingdom, and eventually shipped to continental countries—e.g., France, Germany, and Italy. See Section X (External Trade).
Million Pounds Weight.
United Kingdom368.0177.9*45.9114.010.4
Germany36.86.486.050.833.9
France172.339.451.257.15.8
Belgium110.219.420.226.07.8
Japan73.47.71.81.00.8
Italy21.30.222.69.412.6
Poland7.4....14.36.9
United States22.013.10.763.59.3
Canada3.59.4......
Netherlands16.5....2.34.0
Other countries27.434.812.612.87.4
Totals858.8308.3241.0351.298.9

CATTLE.

The total number of cattle in the Dominion at the enumeration of 1939 was 4,564,948, as against 4,506,082 in 1938. The figures for the last three years, according to the classification in use, are as follows:—

1937.1938.1939.
Number.Per Cent. of Total.Number.Per Cent. of Total.Number.Per Cent. of Total.
Bulls two years old and over, for breeding purposes—      
For dairy purposes58,7831.355,7861.255,2971.2
For beef purposes19,1340.421,5160.422,2490.5
Cows and heifers two years old and over, for dairying—      
In milk1,805,40541.11,763,77539.11,744,47838.2
Dry130,1193.0109,0222.4109,2352.4
Cows and heifers two years old and over, other than for dairying668,03015.2711,19315.8737,35616.2
Heifers one and under two years old—      
Intended for dairying291,8106.7322,9417.2321,6577.1
Other160,1753.7183,6194.1196,6964.3
Steers two years old and over340,1827.8350,1177.8370,0318.1
Steers and bulls one and under two years old174,8824.0206,1664.6221,0124.8
Calves under one year old—      
Intended for dairying      
Heifers331,2777.5328,2157.3333,8707.3
Other177,7574.0201,6244.5202,4794.4
Bulls and steers231,5475.3252,1085.6250,5885.5
    Totals4,389,101100.04,506,082100.04,564,948100.0

Most of the. leading breeds of the cattle of Great Britain are represented in the Dominion by herds bred on sound lines. The development of the beef breeds had been somewhat checked for a time, partly owing to the advance taking place in dairying operations and partly through the difficulties of competing with other countries in the British market; but the successful inauguration of chilled beef shipments to the London market has led to a marked increase in beef animals in the last few years. Although the arrangement (referred to in Subsection A of this section) for the purchase by the United Kingdom Government of New Zealand meat available for export does not include chilled beef, the schedule of prices is so framed that the producers of animals of the type required for the chilled-beef trade will not suffer on account of the temporary cessation of the industry. There are very many fine Shorthorn herds of the beef type, while Hereford and Aberdeen-Angus cattle are also largely bred. There are herd-books for each of these breeds.

The breeding of dairy cattle has made great progress in New Zealand, though there have been decreases in the number of dairy cows in each of the last four years. Herd-book societies are established for the Jersey, Friesian, Ayrshire, Milking Shorthorn, and Bed Poll breeds. The various societies have heartily co-operated in a scheme for establishing registers of merit in connection with the certificate-of-record testing of purebred dairy cattle, thus giving a great fillip to the breeding of purebred dairy stock. The dairy-farmer is encouraged to use purebred bulls and thereby to assist materially in raising the standard of the dairy stock of the country. He is now familiar with the value of herd-testing work, and is utilizing this knowledge to improve the quality of his herd.

The distribution of total cattle, and also of dairy cows, is included in the table of live-stock given at the beginning of this subsection. The figures show that the dairying and beef-production industries are both largely monopolized by the. North Island. This island accounts for 87 per cent. of the total cattle and 80 per cent. of the dairy cows. Localizing the dairying industry still further, it is found that over half of the dairy cows in the Dominion are in the area comprised of the land districts of North Auckland and Auckland. Taranaki and Wellington are relatively and practically equally important as regards the number of dairy cows; between them they account for over one-quarter of the Dominion's dairy cows. In point of density Taranaki takes first position with 172 dairy cows to every 1,000 acres occupied, Auckland coming next with 130, and North Auckland third with 126.

Taking the number of cows other than dairy cows as a guide in regard to beef-production, Wellington land district easily leads the remainder with over one-quarter of the Dominion total. Gisborne is second, followed by Hawke's Bay, Auckland, and North Auckland in that order. These five districts together depasture over 85 per cent. of all cows reserved for beef-production.

BREEDS OF CATTLE.

In connection with the enumeration of live-stock, additional information as to breeds of cattle, horses, and pigs was collected thrice in each decade until 1928, since when the inquiry has been discontinued. A summary of the results of the 1928 enumeration as regards cattle (exclusive of a few within borough boundaries) is contained in the 1939 and previous issues of the Year-Book.

THE WORLD'S CATTLE.

The latest available information showing the number of cattle in the main cattle countries of the world is as follows:—

Country.Number of Cattle. (Thousands.)
India (whole)160,148
United States66,821
Russia (U.S.S.R.)50,900
Brazil50,298
Argentina33,101
China22,647
Germany (including Austria)22,407
France15,622
Australia13,078
South African Union11,395
Poland10,554
Mexico10,083
Colombia9,167
United Kingdom8,762
Canada8,511
Uruguay8,297
Italy7,667
Turkey5,896
Thailand5,618
Kenya5,233
Burma5,163
Tanganyika5,035
Madagascar4,947
Czechoslovakia4,938
Cuba4,651
New Zealand4,565
Netherlands East Indies4,414
Yugoslavia4,267
Rumania4,184
Spain3,570
Eire3,556
French West Africa3,427
Denmark3,183
Venezuela3,091
Sweden3,036
Paraguay2,920
Netherlands2,763
Nigeria2,750
Anglo-Egyptian Sudan2,700
Chile2,634
Uganda Protectorate2,509
Southern Rhodesia2,317
Iran2,297
Indo-China2,264
Bolivia2,064

DAIRY-PRODUCE.

The Dairy Industry Act, 1908 (a consolidation of previous legislation), with its amendments, may in general terms be described as an Act to regulate the production, collection, treatment, preparation, and manufacture under proper sanitary conditions of dairy-produce—i.e., milk, cream, batter, cheese, and any other product of milk or cream—intended for sale for human consumption within New Zealand or for export.

Inspectors are empowered to inspect premises used for the production or manufacture of dairy-produce. Any defects affecting the cleanliness and sanitation of the premises or the plant, machinery, and apparatus used in connection therewith may be ordered to be remedied to the satisfaction of the inspector, and until so remedied their use in the production of dairy-produce may be forbidden. Inspectors are authorized to condemn any dairy-produce considered unfit for human consumption and the sale of unwholesome milk or other dairy-produce is prohibited.

Milk or cream purchased for the manufacture of dairy-produce and paid for according to the percentage of butterfat contained therein must have this percentage determined by the Babcock or Gerber test. Owners of dairy factories are required by regulations under the Act to pay different prices for different grades of milk or cream supplied for the manufacture of dairy-produce. Owners are also required to furnish to suppliers a certified annual statement of overrun, and provision is made for an independent investigation by the Audit Department where a supplier is dissatisfied with the statement received.

Dairy-produce intended for export must be sound and wholesome in all respects, and must comply with the requirements of the Act as to inspection, grading, and marking. The export of butter containing more than 16 per cent. of water or less than 80 per cent. of butterfat is prohibited. The export of cheese of which the water-free substance consists of less than 50 per cent. of fats wholly derived from milk is also illegal.

Wide powers are conferred to make regulations prescribing matters of detail with regard to the production, manufacture, sale, and export of dairy-produce. In particular, regulations may be made for the registration of dairies, the licensing of persons carrying on the manufacture of dairy-produce, the registration of brands to be used on dairy-produce, and for the inspection, grading, packing, marking, stamping, and labelling of dairy-produce. Regulations relating to the manufacture and export of dairy-produce are contained in the Dairy-produce Regulations 1938, gazetted on the 28th July, 1938, and consolidating all previous regulations on the subject.

The Act provides for the registration of co-operative dairy companies. Companies so registered are authorized to accept or to compel the surrender of shares issued in certain cases, subject to the rights of shareholders being safeguarded. A dairy company must not include in its registered name the word “co-operative” unless it is entitled to be registered as a co-operative dairy company under the Act.

Under the extension of powers provided by the Dairy Industry Amendment Act, 1933, an important amendment to existing regulations was gazetted on the 22nd February, 1934. The new regulations made it illegal for a supplier of milk or cream to a factory to transfer (without the antecedent consent in writing of the owner or manager of the factory) his supply to another factory during the same season. New regulations were gazetted at the same date, effective from the 1st April, 1934, in respect of managers of dairy factories, under which no uncertificated person may now act as manager. The qualifications necessary for applicants for registration are prescribed, and a Registration Board is constituted with a Registrar as executive officer. Provision is made for appeals against the decision of the Board.

The following table shows the number of factories registered under the Dairy Industry Act as at 31st March, 1939, together with the amount of butter and cheese forwarded for export during the preceding twelve months, and the number of suppliers to such factories:—

District.Number of Factories.Forwarded for Export, 1938-39.Number of Suppliers.
Butter.Cheese.Dual Plant.Butter.Cheese.Butter.Cheese and Dual Plant.
    Tons.Tons.  
Auckland5331492,64417,18324,5741,524
Hawke's Bay91324,8213,0754,337537
Taranaki15682813,62339,9362,8553,912
Wellington1843411,29710,3406,4331,389
Marlborough35..657732826141
Nelson6....2,433..1,593..
Westland5....825..532..
Canterbury513..1,7831,4037,388269
Otago and Southland769186612,1095,7182,935
  Totals, 1938-3912124239428,94984,77854,25610,707
  Totals, 1937-3812924340146,74884,42156,12110,829

PRODUCTION AND EXPORT OF DAIRY-PRODUCE.

Returns of factory production show that during the 1937-38 factory year 3,258,215 cwt. of butter were produced by dairy factories in the Dominion. In addition to this, 49,188 cwt. of whey butter were manufactured. For the twelve months ended 31st January, 1930 (since when the collection of data has been discontinued), 52,158 cwt. of butter were produced on holdings of 1 acre and over.

Returns from dairy factories give the quantity of cheese manufactured during 1937-38 as 1,769,351 cwt.

Factory production of butter and cheese during each of the last ten factory years was as follows:—

Factory Year.Creamery Butter.*Whey Butter.Cheese.
* Including whey butter where not separately enumerated.
 Cwt.Cwt.Cwt.
1928-291,951,16337,0531,782,237
1929-302,254,17132,5041,781,918
1930-312,306,84235,2121,857,852
1931-322,439,06940,1071,781,782
1932-332,926,99047,7922,071,181
1933-343,187,21250,8262,135,599
1934-353,105,97451,0811,914,458
1935-363,322,69943,8801,769,984
1936-373,507,20645,9011,826,302
1937-383,258,21549,1881,769,351

Pig-raising is an important industry ancilliary to dairy-farming. In New Zealand the pig industry has not been developed to the same extent as in most other countries where the dairying industry is an important adjunct to national production. Statistics of pig-production, exports of pork, &c., are contained in a later portion of this section (pp. 461-462 and 465).

Estimates of the production of butterfat per cow are made each year by the Department of Agriculture, both for cows in milk only and for all dairy cows whether in milk or dry. The figures represent the butterfat content of milk-production “at the pail,” including the butterfat content of milk fed to stock, spilt, wasted, &c.

The following table shows the yearly averages for both these groups, together with the estimated total production of butterfat. for each season from 1916-17 onwards:—

Season.Estimated Yield per Cow.Total Butterfat-production.
All Dairy Cows.Cows in Milk only.
 lb.lb.Million Pounds Weight.
1916-17163.96186.35127.5
1917-18152.23169.94120.8
1918-19150.64169.96124.5
1919-20152.04173.54135.8
1920-21154.25174.08155.0
1921-22174.97195.94198.9
1922-23180.62200.53225.5
1923-24174.10192.84228.5
1924-25182.09201.57241.0
1925-26179.40197.99233.9
1926-27198.50218.94258.7
1927-28195.38212.63264.2
1928-29210.84223.88289.1
1929-30218.05226.02314.1
1930-31201.05214.74322.0
1931-32199.65214.71339.8
1932-33215.10230.33397.1
1933-34220.80234.91426.7
1934-35210.00224.26409.9
1935-36217.93233.25425.3
1936-37228.56245.05442.4
1937-38224.19238.05419.9
1938-39203.21215.94376.7

A special survey of production and employment in the dairying industry was undertaken by the Census and Statistics Department in 1937. The results of this survey appeared in the 1938 issue of the New Zealand Official Year-Book (pp. 429-448).

The total export of butter and cheese in the last ten years, and the total quantity of each commodity sent to the United Kingdom, are given in the next table. The production year 1938-39 showed a considerable decrease on the 1937-38 figures, and a similar falling-off was experienced in the export of butter. Cheese production and export also declined, but to a much lesser extent.

Calendar Year.Total Export of Butter.Butter exported to the United Kingdom.Total Export of Cheese.Cheese exported to the United Kingdom.
 Cwt.Cwt.Cwt.Cwt.
1,9291,653,8071,276,8411,779,0931,770,150
1,9301,884,2371,553,7251,812,9811,809,348
1,9311,988,5661,962,3201,636,3471,635,233
1,9322,185,5452,156,1271,790,4311,788,989
1,9332,635,2472,597,0081,982,9421,980,872
1,9342,614,5192,568,0561,984,4961,983,058
1,9352,789,2982,696,8321,727,5521,723,197
1,9362,796,1452,721,3421,658,2061,654,827
1,9372,976,0852,903,0051,647,1601,644,241
1,9382,614,5492,526,9811,610,5231,608,437

Butter exports in 1938 were valued at £(N.Z.)16,520,226 and cheese exports at £(N.Z.)5,935,061. These values de not represent the guaranteed prices, but are the declared export values based on prices ruling in the overseas market.

MARKETING OF DAIRY-PRODUCE.

Prior to legislation enacted in 1936, the dairy industry was controlled by the New Zealand Dairy Board, which consisted of three Government nominees, three representatives of owners of dairy factories, and one appointee of the New Zealand Co-operative Dairy Co., Ltd. Under the Primary Products Marketing Act, 1936, control was vested in the Minister of Marketing. The Primary Products Marketing Department was established, which, under the control of the Minister, became charged with the administration of the Act. By an amendment passed in 1939, the title of the Department was changed to the Marketing Department. The Department took over the main functions of the New Zealand Dairy Board, and also the greater part of the Board's stall in New Zealand and London. It has continued the inspection of conditions of loading butter and cheese for export, and has maintained the programme of advertising in the United Kingdom. In carrying out its marketing work in the United Kingdom, the Department is utilizing the services of efficient London merchants.

Freight rates on butter and cheese, operating on a three-year contract from 1st September, 1936, were fixed as follows:—

Butter2s. 11¼d. per box net.
Cheese1/1 1/7d. per pound net.

The above rates were payable in sterling, and represented an increase of 2½ per cent. over the previous contract rates.

Though these rates were under consideration for revision on 1st September, 1939, no alteration was then made, the ruling rate being allowed to continue pro tem.

The functions of the New Zealand Dairy Board, which now consists of five members, are now confined to the internal side of the dairy industry and to herd-testing. Its levy was increased in 1939 from 1/100d. to 1/50d. per pound on butter and from 1/200d. to 1/100d. per pound on cheese manufactured. The proceeds are used to subsidize dairy-research work and the distribution of milk to schools.

A summary of the principal provisions of the Primary Products Marketing Act, together with a statement of the guaranteed prices operative in respect of dairy-produce for export, is contained in Subsection A (411-415).

The following table of monthly arrivals of New Zealand butter and cheese in Great Britain will give an indication of the trend during recent years, the aim being to keep New Zealand dairy-produce on the British market all the year round:—

Month.1931-32.1932-33.1933-34.1934-35.1935-36.1936-37.1937-38.1938-39.
Butter (Boxes of 56 lb.).
August193,849271,034357,126296,204306,616325,330394,130248,445
September212,458276,392315,250217,495450,679481,990431,641331,722
October160,593154,101314,609388,696350,794421,465482,683353,319
November253,486425,791489,757427,208361,264376,406281,790450,862
December600,660612,010568,348481,507655,698628,561618,950446,323
January413,316553,599617,719534,215492,732635,643485,633396,221
February426,653386,513575,906550,785576,879540,929727,284383,855
March404,309451,256584,206519,114519,228568,970549,108580,549
April360,939460,201462,952427,257513,329582,467503,422427,233
May397,399504,963591,420413,107473,191390,280303,828489,536
June232,791356,137366,626324,899442,585485,051393,679412,097
July233,382331,731357,533279,040320,155405,020479,747251,389
  Totals3,889,8354,783,7285,601,4524,859,5275,463,1505,842,1125,651,8954,771,551
Cheese (Crates of 160 lb.).
August37,39064,29294,78999,58867,95770,74474,75182,894
September44,26773,22479,18174,89975,71576,09889,23965,567
October47,65233,76854,59768,36264,61583,22492,42582,807
November30,29653,30663,38873,94049,45262,27238,00681,190
December135,898138,064112,403111,648105,971107,365100,91279,357
January136,516104,893160,480150,553119,174132,71497,24387,678
February148,800141,205156,086144,763140,220111,324151,31695,666
March130,813156,242154,889125,398117,897131,87194,759130,983
April107,280150,699139,372132,445118,048126,297120,955108,468
May156,859155,024166,291115,936112,42883,55299,86198,427
June95,316121,395112,081101,775130,575102,303113,589127,909
July83,699110,478117,79681,98059,874101,842109,77882,296
 1,134,7861,362,5901,411,3531,281,2871,161,9261,189,6061,182,8341,123,242

INTERNATIONAL DAIRY-PRODUCE STATISTICS.

The following table shows the production of butter and cheese in the principal dairying countries (1938 figures shown below are preliminary only):—

Country.Butter.Cheese.
Year.Quantity.Place on List.Year.Quantity.Place on List.
Total Production.Factory Production.Total Production.Factory Production.
(000,000) lb.(000,000) lb.
* Estimate.
United States1,9382,297..11,938..7132
Germany1,9371,186..21,937821..1
France1,937458..31,937494..4
Australia1937-38431..41936-3745..15
Denmark1,938419..51,93863..13
Russia1,936..414*61,93677..12
New Zealand1937-38376..71937-38198..6
Canada1,938372..81,938122..7
Netherlands1,938227..91,938275..5
Sweden1,937..160101,937..7811
Belgium1,938141..111,93817..18
Eire1,936137..121,9374..21
United Kingdom1,937103..131,93898..9
Italy1,93499..141,937507..3
Switzerland1,93866..151,938118..8
Finland1,937..65161,937..2117
Argentina1,93864..171,93892..10
Latvia1,93748..181,9373..22
Brazil1,937..46191,937..5714
Lithuania1,938..43201,9384..20
Union of Sth. Africa1,93643..211,93611..19
Egypt1,93636..22..   
Estonia1,937..35231,937..223
Norway1,938..32241,938..4116

The following table, taken mainly from the International Review of Agriculture, shows the quantities of butter and cheese exported from the principal countries engaged in the export trade during the last seven calendar years. The New Zealand figures relate to the twelve months ended 30th June following the year shown.

Country.1932.1933.1934.1935.1936.1937.1938.
* Not available.
Butter (Million Pounds Weight).
Denmark348332330305322337348
New Zealand272317288312335327276
Australia229212247257186183228
Netherlands456381103133119112
Estonia, Latvia, Lithuania9176788895105123
Sweden30385145425263
Eire37455759584342
Russia (U.S.S.R.)688284655132*
Finland32262423313138
Argentina56311815231916
Poland341013241829
Hungary489610138
Cheese (Million Pounds Weight).
New Zealand215223208181186189179
Netherlands170141135135125138129
Canada87746156828981
Italy67535561435453
Switzerland44453940413949
France29252625232527
Denmark15221415212120
Australia9111215121935
Finland7999111515

The position of New Zealand in comparison with her competitors in the butter and cheese markets of the United Kingdom is shown in the following table :—

IMPORTS INTO THE UNITED KINGDOM.

Country of Origin.Calendar Year.
1934.1935.1936.1937.1938.
Quantity.Per Cent. of Total.
Butter (Thousand Hundredweight).
New Zealand2,6772,6382,7922,9512,58327.2
Denmark2,4862,1862,1712,2582,36524.9
Australia2,1042,1131,6941,4911,79818.9
Netherlands3014647467177127.5
Russia (U.S.S.R.)491503415273....
Eire4684884683203273.4
Other countries1,1681,2161,4661,4081,72418.1
    Totals9,6959,6089,7529,4189,509100.0
Cheese (Thousand Hundredweight).
New Zealand2,0921,7631,6811,7311,63956.0
Canada52047060372267823.2
Netherlands1281991822172026.9
Australia115134911202388.1
Other countries1341481191461715.8
    Totals2,9892,7142,6762,9362,928100.0

Although the amount of butter imported into the United Kingdom from New Zealand during 1938 declined to the extent of 368,000 cwt., the Dominion retained its position as the principal source of supply. Denmark was the second largest supplier, followed by Australia, the three countries mentioned providing 71 per cent. of the United Kingdom's total butter imports. Home production of butter in the United Kingdom is estimated to have fallen from 52,850 tons in 1936 to 46,250 tons in 1938, the proportion of total consumption provided by home-produced butter falling from 10.1 per cent. in 1936 to 9.1 per cent. in 1938.

From 1930 to 1934 the trend of butter consumption in the United Kingdom was upwards, with a correspondingly lessened margarine consumption. Since 1935, however, higher retail prices for butter have resulted in a reversal of this trend, the consumption per head of population declining from 25.2 lb. in that year to 24.1 lb. in 1938, while the per caput consumption of margarine rose from 8.4 lb. to 10.0 lb. during the same period. The trend of consumption of butter and margarine in the United Kingdom, from available data, may be seen from the following figures:—

Year.Butter.Margarine.Year.Butter.Margarine.
 lb.lb. lb.lb.
1,93018.711.81,93525.28.4
1,93120.910.31,93625.08.6
1,93221.69.21,93724.88.9
1,93323.58.41,93824.110.0
1,93425.27.9......

Imports of New Zealand cheese into the United Kingdom during 1938 showed a decrease of 92,000 cwt., or 5.3 per cent. In 1936 New Zealand supplied 62.8 per cent. of the United Kingdom's cheese imports, but in 1938 this percentage fell to 56. Canada was the next largest supplier of cheese, these two countries supplying 79 per cent. of the total cheese imported into the United Kingdom in 1938. The consumption of home-produced cheese in the United Kingdom forms a much higher proportion of total consumption than is the case with butter. It is estimated that the supply of home-produced cheese, amounting to 43,000 tons in 1938, represented 23 per cent. of total consumption requirements.

A feature of the 1938 figures is the increase in the quantity of cheese imported from Australia, the amount being almost double that of 1937.

Reference to the consumption of dairy-produce in New Zealand and certain other countries will be found in Section XLIII, Consumption of Commodities.

PIGS.

For some years prior to 1937 a quickening of interest in pig production as an adjunct to dairy-farming raised pig numbers considerably above those noted previously, culminating in the record figure of 808,463 in 1930. Since then, however, a decline has set in, a small decrease in 1937 being followed by successive decreases of 46,000 and 73,000 in 1938 and 1939. It is of interest to note that the number of dairy cows also showed a decrease in the years 1937 to 1939.

As at 31st January,Pigs under Six Months Old.Pigs Six Months and under One Year Old.Boars One Year Old and over.Sows One Year Old and over.Total Pigs.
1,935499,499131,04820,415111,793762,755
1,936528,442142,76421,199116,058808,463
1,937518,282149,89221,324112,921802,419
1,938488,864142,58920,210104,803756,466
1,939438,953128,74319,01396,754683,463

The following table shows the classification by breeds as at the special collection conducted in 1928. The figures are exclusive of pigs within borough boundaries.

Breed.Pigs under One Year Old.Boars One Year Old and over.Sows One Year Old and over.Totals
Pure Berkshire56,4415,77216,54578,758
Pure Yorkshire5,5996422,3148,555
Other purebred9,5201,4914,54515,556
Crossbred410,3737,46259,000476,835
    Totals481,93315,36782,404579,704

The following diagram affords evidence of the movement in the numbers of cattle, dairy cows, and pigs since 1916. The enumeration date in each case is 31st January.

NUMBERS OF TOTAL CATTLE, DAIRY COWS , AND PIGS, 1916-39.

(Semi-logarithmic scale.)

The relationship between the movements in the figures for dairy cows and for total cattle is fairly uniform, although for a considerable period prior to 1937 there was a tendency for dairy cows to constitute an increasing proportion of total cattle. In 1916 the proportion was 31 per cent., as against 41 per cent. in 1939. At the midway point (1927) dairy cows accounted for 40 per cent. of all cattle.

Regarding pigs, the diagram shows three periods of declining numbers—namely, 1916 to 1919, 1928 to 1931, and since 1936. The lowest figure was 235,000, recorded in 1919. Progress in subsequent years, despite the check between 1928 and 1931, was considerable, resulting in a total of over 800,000 in 1936. Successive declines in the next three years reduced the pig population to under 700,000 in 1939.

Although developments up to 1936 were distinctly promising, there was still a tremendous leeway to be made up before New Zealand reached the stage of development achieved by many other prominent dairying countries. The decline since 1936, following the movement in the dairy-cow population, has added to the discrepancy. The relationship existing between the numbers of pigs and of dairy cows in the more important countries is shown in the following table, the latest available figures being quoted in each case.

Country.Date of Enumeration.Number of
Pigs.Dairy Cows.Pigs per 100 Dairy Cows.
* Not specifically designated as dairy cows.
  Thousands.Thousands. 
GermanyDee., 193826,35311,186236
United StatesJan., 193949,01125,093195
YugoslaviaDec., 19383,4511,994173
DenmarkDec, 19382,7061,625*166
United KingdomJune, 19384,3832,836155
RumaniaFeb., 19373,1702,110150
ArgentinaJune, 19373,9762,824141
ItalyMar., 19303,3182,389139
Russia (U.S.S.R.)Jan., 193825,70022,700*113
Estonia, Latvia, and LithuaniaJune, 19382,3852,105113
PolandJune, 19387,5257,237*104
NetherlandsMay, 19381,5381,503102
CanadaJune, 19383,4873,87490
FranceNov., 19387,1278,732*82
SwedenJuly, 19381,3711,912*72
New ZealandJan., 19396831,85437
AustraliaDec., 19371,1003,21434

The table appearing above emphasizes the need for the development of the pig industry in New Zealand to a standard approaching that of other countries in relation to their-dairy herds. Such development must eventually proceed along lines calculated to enable the Dominion to participate in the large market offering for bacon-supplies.

LIVE-STOCK SLAUGHTERINGS AND MEAT EXPORT.

Statistics of live-stock slaughterings and of meat exports follow. In making comparisons between slaughterings and exports, cognizance, should be taken of the fact that in some periods there is a considerable lapse of time between slaughtering and actual export. References to consumption within New Zealand of meats and other commodities are contained in a later section (Section XLIII).

SHEEP AND LAMBS.

Figures showing sheep and lambs slaughtered for food purposes, together with the exports of frozen mutton and lamb, are given in the table following.

Year ended 31st March,Slaughterings.Exports (including Equivalent of Pieces, &c).
At Abattoirs and Slaughterhouses.On Farms.*Total.
* Year ended 31st January.
Sheep.
 Number.Number.Number.Equivalent Carcasses.
1,9353,335,943606,8803,942,8232,101,600
1,9362,674,554586,3363,260,8901,833,400
1,9372,901,315562,1993,463,5141,772,000
1,9383,351,208524,1553,875,3631,984,200
1,9394,153,927543,3474,697,2742,167,600
Totals for five years16,416,9472,822,91719,239,8649,858,800
Lambs.
1,9359,690,05475,5729,765,6269,383,100
1,9368,685,53669,4698,755,0058,365,500
1,9379,294,72263,0339,357,7558,639,500
1,9389,957,73458,63810,016,3729,239,100
1,9399,910,78262,6319,973,4139,118,300
Totals for live years47,538,828329,34347,808,17144,745,500

As the United Kingdom provides practically the only market for the mutton and lamb exported from New Zealand, it is interesting to note the extent to which the Dominion contributes to this market in comparison with importations from other countries. The position during the five calendar years up to 1938 is given in the following statement respecting the commodities specified:—

IMPORTS INTO THE UNITED KINGDOM.

Country of Origin.Calendar Year.
1934.1935.1936.1937.1938.
Quantity.Per Cent. of Total.
Frozen Mutton (Thousand Hundredweight).
New Zealand8991,0428898621,01563.2
Australia46142422740636722.9
Argentina138150122111996.2
Chile82899694966.0
Uruguay146817241.5
Other countries332940.2
    Totals1,5971,7141,3441,4991,605100.00
Frozen Lamb (Thousand Hundredweight).
New Zealand2,6552,5922,6422,7402,66150.4
Australia1,1661,3601,2691,4771,53229.0
Argentina78475577877979515.0
Uruguay1251301181491482.8
Chile124119111116991.9
Other countries28293742500.9
    Totals4,8824,9854,9555,3035,285100.0

The above figures strikingly illustrate the dominant position held by New Zealand mutton and lamb among United Kingdom imports.

It will be noticed that, while importations of mutton from New Zealand and Australia have remained fairly constant, the quantity supplied by Argentina, the third largest supplier, shows a definite falling tendency. Regarding lamb, the only feature of note is the steady increase in Australian supplies, from 1,166,000 cwt. in 1934 to 1,532,000 cwt. in 1938.

In February, 1939, it was announced that imports of frozen mutton and lamb into the United Kingdom during 1939 were to be curtailed. Imports from Australia and New Zealand were to be reduced by 3 per cent. on the previous year's quotas and imports from foreign countries by 10 per cent. As the restrictions were to be effected on a tonnage basis, the mutton trade, being relatively less valuable than the lamb trade, was expected to bear the greater part of the decrease. The effect of the reduction in so far as New Zealand was concerned was not apparent until June, as the quantity of mutton exported in each of the first three months after the announcement (March, April, and May) showed an increase over the corresponding months of the previous year. The total for the succeeding four months (June-September), however, amounted to 343,601 cwt., as compared with 536,624 cwt. for that period of 1938. On the other hand, lamb exports from New Zealand during the four months June-September of 1939 amounted to 1,117,654 cwt., as compared with 922,314 cwt. in the corresponding period of 1938.

CATTLE.

New Zealand mutton and lamb form a substantial proportion of the meats sold on the London market, but the Dominion's frozen beef competes under difficulties with chilled and fresh beef from countries nearer the United Kingdom, with the consequence that New Zealand's share of the United Kingdom's beef imports is relatively small. However, prospects for expansion have brightened considerably since 1933, when several trial shipments of New Zealand chilled beef were despatched to England. The experiments proved very successful, and were followed by larger shipments. In 1934, approximately 40,000 cwt. was forwarded to the United Kingdom. During the following twelve months a further 109,468 cwt. was shipped, followed by 240,433 cwt. during 1930, 300,351 cwt. during 1937, and 350,606 cwt. during 1938. This quantity represents 39 per cent. of the total quantity of both chilled and frozen beef sent forward during the latter period.

New Zealand chilled beef was rapidly establishing itself as a quality article with United Kingdom retailers, and a steady improvement maintained in the quality and condition of arrivals; but, as already mentioned, the industry has been temporarily discontinued owing to war conditions.

Exports of frozen beef have also increased considerably during the last two years, the quantities shipped to the United Kingdom in 1937 and 1938 being 531,160 cwt. and 544,764 cwt. respectively as compared with 484,628 cwt. in 1936.

The following table, which is exclusive of veal, shows the number of cattle slaughtered for food purposes in each of the last five years, together with the quantity of beef exported.

Year ended 31st March,Slaughterings of Cattle.Exports of Beef (including Equivalent of Boneless, &c.).
At Abattoirs and Slaughterhouses.On Farms.*Total.
* Year ended 31st January.
Number.Number.Number.Equivalent Carcasses. 
1,935488,98213,581502,563171,800
1,936563,48813,270576,758178,900
1,937506,1419,928516,069150,800
1,938588,6567,940596,596172,200
1,939588,7725,684594,456213,900
Totals for five years2,736,03950,4032,786,442887,600

PIGS.

During the five years ended the 31st March, 1939, 5,047,664 pigs were slaughtered at abattoirs, bacon-factories, and registered slaughterhouses, and during the quinquennium to the 31st January, 1939, 207,645 were slaughtered by farmers on holdings of 1 acre or over, the total slaughterings during the five years representing 5,255,309 carcasses. The figures for each year are:—

Year ended 31st March,Pigs slaughtered.Export of Frozen Pork, and Bacon and Ham.
At Abattoirs, &c.On Farms.*Total.
* Year ended 31st January.
Number.Number.Number.Equivalent Carcasses. 
1,935892,37248,546940,918538,000
1,936994,83946,8911,041,730674,000
1,9371,062,51043,9561,106,466663,000
1,9381,085,10737,4241,122,531678,000
1,9391,012,83030,8281,043,664631,000
Totals for five years5,047,664207,6455,255,3093,184,000

As in the case of other frozen meats, New Zealand pork is shipped almost exclusively to the United Kingdom, whose market for this commodity has expanded rapidly. The following figures are of interest as showing the important position occupied by the Dominion in the import trade:—

FROZEN AND CHILLED PORK—IMPORTS INTO THE UNITED KINGDOM.

Country of Origin.Calendar Year.
1934.1935.1936.1937.1938.
Quantity.Per Cent. of Total.
 Cwt.Cwt.Cwt.Cwt.Cwt. 
New Zealand414,275490,301579,088592,587577,48048.91
Argentina277,526186,842190,371193,979238,82920.23
Australia82,425146,751232,514233,718284,13124.06
United States290,36577,07910,72821,70662,0025.25
Canada27,134..........
Other countries13,69514,12512,45515,16918,3631.55
Totals1,105,420915,0981,025,1561,057,1591,180,805100.0

In international trade, exports of bacon far exceed those of other pig products, with the United Kingdom absorbing most of the exports of other countries. Although New Zealand supplies a substantial proportion of the imports of frozen and chilled pork into the United Kingdom, her contributions of bacon are negligible at present. It should be mentioned, however, that approximately 35 per cent. of the carcasses imported from New Zealand are “ baconers,” the curing process being carried out in the United Kingdom. Bacon formed almost 80 per cent. of all pig products imported into the United Kingdom in 1937. Of aggregate supplies of bacon, amounting to 346,000 tons, Denmark was responsible for 171,500 tons, or 50 per cent. Canada, Eire, the Netherlands, Poland, and Sweden, in that order, supplied the great bulk of the remainder.

VEAL.

In recent years the veal industry has developed rapidly, mainly as a result of the organization of the “bobby” calf trade. An appreciable increase in exports resulted. As a consequence of British Government meat restrictions, an embargo was placed on the export of “bobby” calf meat as from the 12th July, 1934, but was later removed. Special regulations make it an offence to sell or offer for sale any calf which has not been properly and sufficiently fed daily from birth, and require that all calves be fed not earlier than four hours before the time of their removal from the owner's premises.

The following table gives particulars of slaughterings and exports for the last five years:—

Year ended 31st March,Slaughterings.Exports of Veal.
At Abattoirs and Slaughterhouses.On Farms.*Total.
* Year ended 31st January.
 Number.Number.Number.Cwt.
1,935746,77115,986762,75771,356
1,9361,074,65611,5751,086,231110,082
1,9371,045,8278,6801,054,507120,592
1,9381,079,5726,7931,086,365149,328
1,9391,013,9685,8631,019,831140,103
Totals for five years4,960,79448,8975,009,691591,461

MEAT-EXPORT CONTROL.

The New Zealand Meat-producers' Board was constituted under the provisions of the Meat-export Control Act, 1921-22. It consists of eight members—five representing the producers of meat for export, two representing the Government, and one representing the stock and station agents. Briefly, its objects are to control the export of meat in the interests of the producers.

Since the Board was constituted in 1922 freight charges have been considerably reduced. The rates operating, in a three-year contract commencing 1st September, 1936, were (per pound): Mutton (or lamb over 42 lb.), 0.793d.; lamb, 0.929d.; veal, 0.645d.; pork, 0.645d.; beef, 0.645d.; other items at various rates. The rates quoted are in sterling, and are payable in sterling in London. For chilled beef the charge is based on space of chamber, calculated at the frozen-beef rate, plus 10 per cent.

Probably one of the most important functions of the Board is to regulate shipments so as to keep a steady flow of meat to the British markets over the twelve months of the year, having due regard to the months showing the highest consumption of each class of meat. The Board is enabled to carry out this work as it has the freight arrangements for the shipment of all New Zealand meat in its hands under its statutory powers.

Another very important section of the Board's work comes under the heading of advertising. Along with the Dominion's increasing lamb-production, every effort is being made to expand our trade by advertising, and large sums of money have been spent in the United Kingdom for this purpose.

Other important functions of the Board include supervision of grading, inspection of loading and unloading of vessels, trial shipments to new markets, scientific survey work, and grants to the Royal Agricultural Society and other bodies to encourage production of suitable export typos of lambs, pigs, &c.

The Board has taken an active part in the development of the chilled-beef industry and has also encouraged the expansion of the pig industry by grants to recording clubs, and in other directions.

The following table shows shipments during each month of the seasons 1936-37, 1937-38, and 1933-39:—

Month of Shipment.Shipping Season 1936-37.Shipping Season 1937-38.Shipping Season 1938-39.
Beef.Mutton.Lamb.Beef.Mutton.Lamb.Beef.Mutton.Lamb.
 Qrs.Care's.Care's.Qrs.Care's.Care's.Qrs.Care's.Care's.
November12,67932,591193,42913,72322,780158,16120,973210,500107,497
December18,62639,494415,79326,68329,723570,71534,46163,460465,652
January21,58356,276903,52030,270113,118945,04630,92069,175810,675
February19,00998,322999,58729,653162,3421,022,64736,841119,4431,079,019
March29,121182,0071,040,00141,138220,226873,27351,968251,0681,286,527
April33,251217,324980,15139,671137,745989,33047,757213,551901,464
May33,050143,6271,067,79839,691268,6471,407,32261,953290,1261,195,156
June32,378113,9231,010,10542,925181,130972,17645,403146,2291,100,049
July63,241242,0321,160,33628,341202,345831,70531,670119,831960,501
August35,505223,046737,42754,485280,409864,21324,352121,1831,022,701
September50,324237,016559,39829,309195,128388,93624,336130,526380,896
October30,259205,604116,14113,595159,786128,6125,962261,340303,546

HORSES.

Since 1911, when the peak number of 404,284 was recorded, horses have tended to decline numerically. The foregoing figure includes horses in boroughs; and totals on a similar basis in 1916, 1921, and 1926 were 371,331, 337,259, and 314,867 respectively. The census of 1926 showed that 13,014 horses were in boroughs, but no similar count has since been undertaken.

The following table gives numbers of horses by classes recorded during the last five years, excluding horses in boroughs, as figures for these are not available:—

1935.1936.1937.1938.1939.
Draught and three-quarter draught120,239122,749124,111124,837123,594
Spring-cart (including half-draught)46,43447,49148,08948,06248,170
Hacks and light working horses79,69478,27677,73977,16974,978
Thoroughbred and other horses13,60514,64014,84615,08515,047
    Total horses259,972263,156264,785265,153261,789

A slight decline recorded between 1933 and 1934 in the classes of draught, three-quarter-draught, and half-draught horses was more than made up in the ensuing four years, during which period draught and three-quarter-draught animals increased by 5,383. The 1939 figure, however, shows a decrease of 1,243. The annual report of the Department of Agriculture states that a decline in heavy-horse breeding is evident in several districts. The increased use of tractors on farms is ascribed to the scarcity of farm labour and the consequent necessity of having the work carried out as expeditiously as possible. No doubt much of the farm-work is now carried out by contract, and this may be a factor in the increase in mechanical traction.

Usually the number of “thoroughbred and other horses” shows little variation from year to year; however, the relatively high increase of over a thousand occurred between 1935 and 1936, and this was followed by a further increase of over 200 in each of the following two years. The latest figure (1939), however, shows a slight decrease.

Hacks and light working-horses are diminishing at an appreciable rate from year to year.

POULTRY.

Poultry statistics have been associated with the census of population from 1861 onwards, with the exception of the censuses of 1896 and 1901. Until 1936, however, poultry kept by Maori households had not been brought within the ambit of the census. The extension of the inquiry to Maori households on this occasion has, in all probability, furnished the first statistics in existence on this subject. No comparative data are therefore available, but there exists no reason to suspect that the degree of accuracy in recording the poultry of Maoris differs sensibly from that experienced in the case of Europeans.

The total poultry flocks of the Maoris are small (107,361 birds in all), and their omission from the field of earlier censuses does not appear to have been of significance.

References to fowls and ducks are intended to cover both male and female birds.

The following numbers were recorded at the last six censuses:—

Census.Fowls.Ducks.Geese.Turkeys.Total.
1,9062,784,269281,99944,30077,1013,187,669
1,9113,215,031329,23045,38997,9333,687,583
1,9163,141,354220,80846,95556,5213,465,638
1,9213,491,567379,98846,23473,2203,991,009
1,9263,308,384352,03043,87976,8523,781,145
1936 (excluding Maori flocks)3,415,793351,60861,41882,8963,911,715
1936 (including Maori flocks)3,483,516377,79166,66786,1024,019,076

Although the total number of birds as disclosed by the 1936 census was the highest yet recorded, the number per head of population has declined steadily since 1911, and the 1936 figure (2.6) is the lowest since the census of 1864.

Although poultry-farming may be regarded as a definite branch of the farming industry, a classification as to the sizes of flocks indicates that poultry-keeping is generally carried on merely as a side-line. At the census of 1936 there were 165,949 households keeping fowls or ducks, and of these 134,148, or 80.8 per cent., had less than twenty-five birds, while 65,669 households (39.6 per cent.) kept less than a dozen birds. At the other end of the scale it was found that the number of flocks containing more than 100 birds amounted to 3,219 only, or a little under 2 per cent. of the total. There were 194 flocks of 1,000 or over, and of these 62 were situated in Canterbury, 45 each in Auckland and Wellington, and 23 in Otago. Canterbury is the centre of the wheatgrowing industry, and this fact doubtless accounts in part for the number of large flocks and the high average number of birds in the flocks of that district.

The number of poultry kept in cities, boroughs, and town districts shows a considerable decline on the number returned at the census of 1926. The increasing tendency towards the use of flats, and the filling-up of towns, &c., have contributed largely towards the decrease in urban districts.

POULTRY CONTROL.

The Poultry Act, 1924, provides for the regulating of poultry-keeping and of the sale and export of poultry and eggs. Provision is made for the appointment of inspectors, on whom certain powers of entry are conferred for purposes of inspection of poultry or eggs intended for export. Poultry are required to be kept under sanitary conditions, and cruelty to poultry is made an offence. Every owner of poultry is required to notify an inspector of any outbreak of disease among his flock and to comply with the inspector's directions. It is an offence to sell diseased poultry. The Governor-General in Council is empowered to declare diseases, to appoint ports of export, and to appoint grading-stores.

In order to provide moneys for the organization and development of the poultry industry, the Poultry-runs Registration Act was passed in December, 1933. The Act makes compulsory the annual registration of every poultry-run which is defined as land used for the keeping of not less than twenty-five head of poultry (hens and ducks not less than six months old) and the production of eggs for sale. The fee payable annually for registration is 2s. 6d. if the flock is in excess of twenty-four but does not exceed one hundred head. For each additional hundred (or part thereof) an additional 2s. 6d. is payable. A Board is constituted for the administration of the Act.

BEES.

The rich dairy pastures of the Dominion and localities where cattle raising is carried on extensively are particularly favourable for apiculture and the production of high-grade honey for the local and export markets. The export-trade is, of course, small when compared with the main primary industries, but is capable of considerable development. Honey from the apiaries of the Dominion is much appreciated on the English and Continental markets.

In New Zealand the Department of Agriculture devotes proportionately the same attention to detail in the case of honey for export as is given to butter and cheese forwarded for consumption beyond the Dominion. Honey must be forwarded to grading stores at Auckland, Now Plymouth, Wellington, Lyttelton, Greymouth, Timaru, Dunedin, or Bluff for grading prior to export, and may be exported only through these ports.

The Apiaries Act, 1927, which came into operation on the 1st January, 1928, was passed to consolidate and amend the law relating to the bee industry. Stringent regulations have been enacted in order to control foul-brood, bee moths, and other diseases of bees. Beekeepers are required to register all apiaries of one or more hives, and it is an offence to keep bees in an unregistered apiary. Only frame hives may be used, box hives being prohibited.

The introduction into New Zealand of bees and appliances used in connection with the keeping of bees and the harvesting of their products is prohibited, save with the prior consent of the Minister of Agriculture.

Registrations under the Apiaries Act show that as at the 31st August, 1939, 4,960 apiarists and 116,175 colonies were registered.

Exports of honey for the last five years were:—

Year.Quantity.Value.
 lb.£
1,934669,68319,731
1,9351,155,24733,788
1,936739,95620,844
1,937318,6219,099
1,9381,852,50850,289

The lean year experienced in 1937 was attributable to an exceptionally unfavourable season.

A system of control on much the same lines as in the case of meat and dairy-produce was introduced by the Honey Control Act, 1924. The function of the Board set up (after a poll of producers who decided by a large majority in favour of the scheme) is to control all honey intended for export, acting in conjunction with the Internal Marketing Division of the Marketing Department.

Chapter 19. SECTION XIX.—FORESTRY.

ADMINISTRATION.

THE ad ministration of State forests and related afforestation activities in New Zealand was for many years under the control of the Lands and Survey Department, but in 1919 a separate Forestry Department was formed. This was reorganized in 1920 as a Department of State, called the State Forest Service, and was given statutory recognition and administrative authority by the Forests Act, 1921-22, which provides for a Minister of the Crown to hold office as Commissioner of State Forests.

Central management and control of the State Forest Service is exercised by the Director of Forestry, with the head office at Wellington. For the purposes of local administration the Dominion is divided into seven forest-conservation regions each under the control of a Conservator of Forests, who is responsible to the Director of Forestry. Public convenience and economy are further achieved by the subdivision of forest-conservation regions into districts under the charge of Forest Rangers, who are under the direction of Conservators of Forests.

State forests are administered by authority of the Forests Act, 1921-22, its amendments of 1925 and 1926, section 17 of the Finance Act, 1924, and sections 24-29 (inclusive) of the Statutes Amendment Act, 1939. Regulations have been issued under the State Forests Act, 1908, and the Forests Act, 1921-22. The powers conferred by the Forests Act, 1921-22, to deal with forest produce are subject to the provisions of the Coal-mines Act, 1925, the Mining Act, 1926, the Petroleum Act, 1937, and the Iron and Steel Industry Act, 1937. Section 23 of the Mining Amendment Act, 1934, provides for the payment to the Crown of compensation for damage to any land vested in the Crown resulting from mining operations. Such compensation in respect of State forests may be claimed by the Commissioner of State Forests, from time to time, as damage is caused.

Section 3 of the Mining Amendment Act, 1935, restricts the operation of section 66 (f) of the Mining Act, 1926, by providing that no body corporate shall be entitled to exercise the authority to cut timber conferred on the holder of a miner's right except with the consent of the Minister of Mines and the Commissioner of State Forests, and subject to such terms and conditions as may be imposed. It has always been recognized that a miner's right gives the holder thereof the right to cut and remove timber free of charge from unalienated Crown land (including State forest) for mining and for his own domestic use—i.e., for firewood, fencing, and the building of a house for occupation by him In addition to the individual miner, whoso rights have not been affected, this privilege was hitherto enjoyed by commercial mining organizations.

The State Forest Regulations Amendment, 1936, provides that no timber shall be sold except at such price or at such rates as the Commissioner of State Forests may determine.

STATE FORESTS.

At the 31st March, 1939, the area of permanent State forest was 4,784,419 acres, and of provisional State forest 3,570,442 acres, these totals including 739,337 acres and 1,165,809 acres respectively of national-endowment lands. The aggregate area (8,354,861 acres) represents 12.58 per cent. of the superficial area of the Dominion.

FOREST RESOURCES.

The areas of indigenous forests estimated at intervals since the colonization of New Zealand have been—

 Acres.
184727,600,000
186923,500,000
188621,200,000
189320,500,000
190917,000,000
192312,600,000

Returns for exotic forests at 31st January, 1939, give the total area as 872,423 acres. This area relates to plantations on holdings of 1 acre or more outside boroughs, and includes land afforested by the State, local authorities, farmers, and commercial concerns. Details of the operations of the last mentioned are given towards the end of this section, under the heading “Commercial Afforestation.”

FOREST POLICY.

The forest policy has a twofold purpose — the maintenance of climatic, soil, and water equilibria, and the supply of timber and other forest - produce. Owing to its influence upon agriculture, the former objective — viz., the conservation of the protection forests — is of the greater national significance. Conservation may be defined as the preservation of the forests by wise use, and the intensive management of these forests will assist to solve the problem of timber-supplies. It is with this latter consideration that the establishment of exotic forests is most closely associated.

Important features of the timber-supply situation are—

  1. Eighty per cent. of the remaining virgin forests are overmature, and there is no net growth, new growth being offset by decay, &c.:

  2. The conversion of overmature forests into healthy growing stands of indigenous species producing timber to the maximum capacity of the forest soil will necessitate silvicultural management extending over a long period, probably one hundred and fifty years:

  3. Current timber demands are depleting the virgin indigenous forests at such a rate that, without other provision being made, an adequate supply of timber would not be available during the whole of the intervening period:

  4. The establishment of exotic forests to supplement the indigenous-forest resources is therefore of great importance, and large forests of exotic trees have accordingly been established during recent years:

  5. The part which exotic forests will ultimately play in the forest economy of the Dominion is difficult to predict. Experience in foreign countries where forestry has been practised over a period of several centuries indicates, however, that exotic species have definite limitations, and for this reason the national policy must envisage the management of the indigenous forests to secure their maximum possible production of timber.

In order to achieve the maximum benefits from a policy of conservation of areas under the control of the State Forest Service, a five-year programme has been adopted, of which the following are the principal features:—

  1. The acquisition of 33,000 acres, mostly of Crown lands, for the creation of new and the extension and consolidation of existing State exotic forests:

  2. The afforestation with exotics of 82,000 acres, including the 33,000 acres mentioned above:

  3. The reafforestation of 16,500 acres of cut-over indigenous forest land:

  4. Silvicultural operations, including thinning, pruning, &c., over 330,000 acres of State exotic forests:

  5. The improvement of housing-conditions for forest workers by the substitution of well-equipped buts in place of tent accommodation:

  6. The establishment of Stale-owned forest industries, including sawmills, box-factories, planing-mills, wood-preservation plants, &c., to act as demonstration, control, and salvage units in the exotic and indigenous forests:

  7. The placement under working-plan management of all State exotic forests to which State-owned forest industries are attached, all State kauri forests, and suitable administrative units in the silver-beech forests of Southland, the rimu pole-type forests of Westland, and the mixed rimu forests of the North Island:

  8. The substitution wherever possible of log sales for block disposal of standing timber.

FOREST MANAGEMENT.

To preserve the existing indigenous forests to posterity it is not sufficient to fence them against stock and to protect them from fire. The composition of the forest gradually changes, one type of forest growth succeeding another. Generally the valuable timber-producing species are replaced by weed species such as kamahi, taraire, rewarewa, &c. Of all the indigenous softwoods amenable to silvicultural treatment kauri is outstanding, and the results of investigations have been most promising. Plans for perpetuating the kauri forests and for rationing the supply of kauri timber are now in operation. Both the remaining virgin stands and the cut-over areas carrying regeneration are being brought under forest working-plans, which govern both the extraction of logs and the silvicultural treatment required to maintain forests in a state of maximum productivity. Permanent extraction routes are now being constructed over which dead and overmature trees will be extracted along with such large healthy trees as can be removed without endangering subsequent regeneration, and logs will be disposed of on the extraction routes. A minimum diameter cutting-limit of 27 in. breast high has been imposed for virgin stands; and provision has been made for the preservation of exceptionally large trees and other special trees in advantageous situations for seeding purposes to assist regeneration. The more recent examinations and inspections of the kauri forests indicate beyond all possible doubt the feasibility, not merely of preserving to posterity those few magnificent monarchs which the State Forest Service guards in its forests as national monuments, but also of maintaining the kauri forests in full vigour of growth to yield an everlasting supply of this world-famous wood.

A permanent extraction route has been constructed in the Omahuta State Forest, and investigational work in respect of release cuttings, &c., made in both this and the Herekino State Forest. The five-year programme likewise makes provision for the construction of extraction routes in the Puketi State Forest with a view to facilitating the extraction of supplies for the 1941-46 period. The annual cut for the years 1938-40 has been limited to 1,500,000 board feet, as during this period privately owned bush is being cut at the rate of between 6,000,000 ft. and 8,000,000 ft. per annum, but it is planned to make an intensive survey of the whole of the kauri forests and cut-over areas with a view to determining their exact resources and whether or not the annual cut can be increased above the 3,000,000 ft. level tentatively planned for the subsequent five-year period 1941-46.

It is also planned to place under management a 10,000 acre rimu pole-type forest in the vicinity of Lake Ianthe, in the Westland forest-conservation region. The plans for this area over the ensuing five-year period provide for the determination of the sustained yield of the forest, the formulation of a working-plan, fire-protection measures, the construction of permanent extraction routes, the felling and extraction of logs, &c., with a view to managing the forest on a sustained - yield basis. Provision has likewise been made for placing under management an extensive rimu - kahikatea - totara area in the Te Whaiti district of the Rotorua forest-conservation region. Logging by modern caterpillar tractor and arch equipment with an output of over 5,000,000 ft. board measure of logs per annum, and a wide range of silvicultural experiments in connection therewith have already been instituted.

The silver-beech forests of Southland regenerate freely, and with proper management and protection successive crops of this timber can be expected. With this objective, forest-working plans are being prepared for the administration of areas considered suitable for the purpose.

A significant feature common to all managed State forests and units is their logging by the State and the sale of logs in place of trees. By no other means is it practicable to secure the close control of logging operations, so essential to the preservation of young growth and the encouragement of natural regeneration. Just as the inauguration of block sales in place of “royalty payments off the saw” has affected a marked reduction in forest wastage, so will the adoption of log sales further reduce avoidable waste

In the exotic forests the saw log has always been visualized as the major product, and no State exotic forests have been established for the production of any other particular product. Should the population of the Dominion increase, and likewise the consumption of pulp and paper products, it is possible that economically sized pulp-production units may become feasible. Should this prove to be the case, a supply of raw material for the cheaper classes of pulp and paper products, which form the bulk of the trade, may become available from the exotic forests, in the form both of low-grade or unmillable logs and of sawmill waste. But for the utilization of high-grade logs down to 4 in. diameter inside bark (which is the smallest timber usually accepted by pulp-mills) the Scandinavian type of sawmill is as well adapted as is the pulping unit, possessing the additional advantages of smaller size and of lower outlay.

It is not impossible that the exotic forest capital resource now being established will yield a surplus over the country's demands, even allowing that the supplies of virgin indigenous timber will be rigidly economized. Such a possibility calls for a twofold study of national significance—one, economic, covering basic industrial and transport factors, and the other, research, covering the scientific utilization of the entire range of wood products ranging from fuel to cellulose derivatives. Their economical production in order to compete in the world's market is the objective which is now being pursued.

For the year ended 31st March, 1919, exotic-pine timbers, as judged by the quantities sawn, ranked only sixth amongst the timbers of the Dominion. For the year ended 31st March, 1936, they ranked as third. During that period the annual cut of rough-sawn exotic-pine timber increased from 4,000,000 ft. b.m. in 1918-19 to 36,359,000 ft. b.m. in 1937-38. The low density and easy-working properties of these woods will tend to enable them to replace rimu to a very large extent, and to dominate the markets for practically all classes of framing and light construction timber, just as already the same properties have given them dominance in the boxing and crating markets. Even for finishing-work the exotic softwoods, with their low density and satisfactory glueing properties, will find extensive use as core timber for laminated and other built-up construction. This will assist in effecting economies in the use of the more valuable indigenous timbers, which will be utilized as veneers, &c., rather than in the solid form.

SILVICULTURE AND UTILIZATION.

The management of both indigenous and exotic forests necessitates scientific investigation as a routine operation in connection with both silviculture and utilization. Silvicultural investigations cover the entire field of natural sciences. Soil and botanical investigations have been found fundamental to the establishment of exotic forests, and mycological and entomological investigations have become of considerable importance in combating fungus and insect attack in both indigenous and exotic forests. Likewise, both the intensity of forest management and the efficiency of forest-land use are directly dependent upon the utilization of forest products. Only by ensuring maximum efficiency in harvesting forest crops and their adaptation to modern requirements is it possible to safeguard the economic future of forestry.

With a view to broadening and stabilizing markets for various classes of forest produce, extensive investigations have been undertaken by the State Forest Service. Technical investigations have been made into production methods and wood-using practices, the elimination of waste, and the use of non-commercial species, and many practical improvements have been effected in the everyday utilization of all important locally-grown timbers. Outstanding developments have been the establishment of kiln-drying and modern grading as practicable everyday realities, enabling the locally-grown timbers to replace imported woods hitherto required on account of the lack of kiln-drying facilities, &c. These developments, supported by information gained by the State Forest Service as a result of its investigations into the mechanical and physical properties of the locally-grown woods, have enabled them to be used much more efficiently than hitherto, and to replace to a considerable extent some of the imported timbers. Demonstrations of the effectiveness of wood-preservation have likewise stimulated interest in this important branch of utilization, while laboratory and. commercial tests have defined within close limits the values of various indigenous timbers for pulp and paper-making purposes.

TABLE SHOWING PRINCIPAL STRENGTH PROPERTIES OF NEW ZEALAND TIMBERS.

(Tested in the form of small clear specimens: air-dry values adjusted to 12 per cent. moisture content.)

Common and Botanical Name of Species.Condition at Test.Weight per Cubic Foot (Pounds).Modulus of Rupture in Bending (Pounds per Square Inch).Modulus of Elasticity in Bending (1,000 Pounds per Square Inch.)Maximum Crushing Strength Parallel to Grain (Pounds per Square Inch).Shear Strength Parallel to
Grain (Pounds per Square Inch).      
Beech, black (Nothofagus so-Green699,4001,7504,3001,280
landeri)Air-dry4914,5001,9808,3001,870
Beech, hard (Nothofagus truncata)Green6910,3001,8704,6001,420
 Air-dry4813,7002,1007,0001,980
Beech, red (Nothofagus fusca)Green619,1001,7203,9001,260
 Air-dry4411,4001,9307,6001,850
Beech, silver (Nothofagus menziesii)Green557,6001,2803,400940
 Air-dry3412,2001,6706,1001,420
Black maire (Olea cunninghamii)Green7513,0501,5506,0001,810
 Air-dry0217,0002,0209,6002,360
Hinau (Elaeocarpus dentatus)Green708,8001,5904,3001,380
 Air-dry4512,3001,6106,6001,610
Kahikatea or white pine (Podocarpus dacrydioides)Green516,3009602,500810
 Air-dry299,5001,1405,1001,340
Kaikawaka (Libocedrus bidwillii)Green615,6006602,800750
 Air-dry276,4008704,100820
Kamahi (Weinmannia racemosa)Green557,8001,2503,4001,290
 Air-dry4010,8001,4205,8001,920
Kauri (Agathis australis)Green517,8001,5703,400940
 Air-dry3613,1001,8005,6001,220
Kohekohe (Dysorulum spectabile)Green577,3001,2903,100790
 Air-dry3410,9001,4007,100840
Mangeao (Litsaea calicaris)Green627,6001,3303,3001,030
 Air-dry3913,3001,6206,6001,560
Matai (Podocarpus spicatus)Green689,0001,2304,0001,000
 Air-dry3810,8001,3206,8001,600
Mire (Podocarpus ferrugineus)Green548,4001,4203,8001,150
 Air-dry3612,9001,5706,6001,690
Pokaka (Elaeocarpus hookerianus)Green656,2001,0003,2001,260
 Air-dry3910,0001,1005,5001,730
Pukatea (Laurelia novae-zelandiae)Green614,2007302,500580
 Air-dry3011,8001,7004,9001,080
Rata, Northern (Metrosideros rubusta)Green7211,3001,7105,2001,610
 Air-dry5518,2002,3409,2001,940
Rata, Southern (Metrosideros lucida)Green7913,0002,1505,8001,640
 Air-dry7123,0003,15011,5002,570
Rimu (Dacrydium cupressinum)Green617,4001,2203,300910
 Air-dry3711,0001,3105,4001,260
Silver pine (Dacrydium colensoi)Green546,4007903,100840
 Air-dry398,5001,0705,8001,320
Taraire (Beilschmiedia taraire)Green728,6001,4103,9001,000
 Air-dry4213,0001,7006,6001,910
Tanekaha (Phyllocladus trichomanoides)Green689,3001,3904,6001,210
 Air-dry4214,1001,6206,5001,400
Tawa (Beilschmiedia tawa)Green679,7001,5904,4001,100
 Air-dry4615,7002,0608,4001,780
Totara (Podocarpus totara)Green596,5009203,100810
 Air-dry307,6001,0705,5001,120

FOREST-FIRE PREVENTION.

One of the greatest problems of forest-conservation is that of fire-prevention. Fire-lighting methods have been improved by the establishment of lire lookout stations in most of the major exotic forest areas in addition to patrols covering areas of particular danger in both exotic and indigenous forests, by access roads and tracks, tool caches, improved and extended telephone communication now to be supplemented by radio transmitters and receivers in the Kaingaroa Forest, and by the provision of mobile fire-fighting equipment. New devices for rapid assembly of fire-fighting crews are an acknowledgment of the fact that the fire is most easily fought in its early stages. A further technical advance has involved the setting-up of fire hazard prediction instruments measuring relative humidity and the relative dryness of forest fuels. These factors are co-ordinated with the wind velocity, seasonal growth of certain vegetation—e.g., tussock which is dry alter winter snows but green in the summer-time, time since last rainfall, and air temperature to rate the relative fire hazard. Meteorological reports will permit interpretation of the various factors to predict dangerous conditions and issue broadcast warnings. The general public now realize the value of fire districts as a means of preventing indiscriminate fire-lighting and “burning-off” except under expert supervision. Fire districts constituted in the interests of local authorities and private companies now number seventeen, and there are forty lire districts constituted to protect State indigenous and exotic forests. The total area covered by all fire districts is 3,203,558 acres.

CLASSIFICATION OF THE INDIGENOUS FORESTS.

The forests of New Zealand, as a whole, belong to that great division of the earth's vegetation called rain-forest—a community with its most extreme development in the tropics (vide article on “The Plants of New Zealand” in Section I). New Zealand rain-forest may be naturally divided into the two classes, subtropical rainforest and subantarctic rain-forest, the former, in regard to its trees, being a mixed community of broad-leaved trees and conifers, and the latter a pure community of one or more of the species of beech (Nothofagus). For practical purposes the names rain-forest proper and beech-forest suffice. Between these two classes there are many intermediates, the one graduating into the other.

Rain-forest proper consists of many kinds of tall, medium-sized, and small trees, together with a dense undergrowth of numerous species of shrubs and ferns. Woody lianes and huge epiphytes are characteristic, and bryophytes abound. This class of forest is generally confined to the coastal, lowland, and montane belts—the upper altitudinal line of the last-named becoming gradually lower in proceeding from north to south.

In regard to appraisal of timber, rain-forest proper is divided into the following groups, to each of which is appended its distribution: The kauri (extending northwards from a line joining Port Waikato to Tauranga); the rimu (throughout all three principal Islands, its heaviest stands in the central part of the North Island and on the west coast of the South Island); the kahikatea (throughout the North and South Islands, occupying low-lying swampy ground); and the totara (throughout, but mainly in the central part of the North Island).

Beech-forest must be divided into milling-forest and protection-forest. The former consists of (1) forest where the hard beech (Nothofagus truncata) and the black beech (Nothofagus solanderi) are present in quantity, or where there is only the latter (this extends from the south of lat. 38° southwards to northern Nelson, Marlborough, and eastern Canterbury); (2) forest where the silver beech (Nothofagus menziesii) and the red beech (Nothofagus fusca) are either the sole or the principal species; they extend from the Thames mountains through the montane and lower subalpine belts southwards to north-western Nelson, Westland (but absent from the Taramakau River southwards for one hundred miles), and the fiord country of Otago; and (3) forest where the silver beech is pure or nearly so, such occurring principally in southern and western Southland, and extending over the western slopes of the Dividing Range. Protection-forest, where beeches predominate, particularly the mountain-beech (Nothofagus cliffortioides), is essentially high-mountain forest, but on Mount Egmont and on the western side of the Southern Alps, from somewhat north of the Taramakau River for rather more than one hundred miles southwards, the forest is modified rain-forest proper with thin-bark totara (Podocarpus hallii) and kaikawaka (Libocedrus bidwillii) as important trees. In Stewart Island Nothofagus is absent, and the trees of the upper forest are mainly kamahi (Weinmannia racemosa) and southern-rata (Metrosideros lucida).

In addition to the high forests there are scrub forests, of which those made up of manuka (in a wide sense)—Leptospermum scoparium and L. ericoides—are commercially important on account of the value of their wood for fuel, and because, in many instances, they are an early stage of rain-forest.

The foregoing gives merely a general classification of the forests, but, from the aspect of forestry, a division into smaller groups is essential, such to be based on the composition, structure, and life-history of each group. In this regard, altitude, climate, latitudinal change, and the nature of the soil have to be taken into consideration, as well as the combination and forms of the species composing the forest and their arrangement within the forest. In all forests, changes, progressive or retrogressive, are taking place, and. so far as rain-forest proper is concerned (apart from swamp-forest), in the North Island and the northern part of the South Island the tawa (Beilschmiedia tawa) is tending to predominate, and, in the remainder of the South Island and Stewart Island, the kamahi. On the other hand, beech-forest regenerates into similar forest.

Though the forest-tree species of New Zealand number about 112, only a few are of value as timber-trees; in fact, at present only six are being used to any extent by sawmillers, and, of these, five are coniferous (softwood) timbers. There are several—e.g., puriri, kohekohe, pukatea—which possess very high qualities, but which are now to be obtained only in such small quantities that they ire of little commercial importance.

CHIEF FOREST TREES.

A brief description of the principal forest-trees, with their distribution and the uses of their timber, is now given. The weights shown for the timber are per cubic foot, air-dry. For a description of additional forest-trees the reader is referred to the 1934 issue of the Year-Book or its immediate predecessors.

SOFTWOODS.

KAHIKATEA; WHITE PINE(Podocarpus dacrydioides).—This tree occurs to some extent in all forests except the beech-forests from north to south of the North and South Islands; formerly it was found in almost pure stands in swampy areas, but most of these stands have now been exploited. The average height of the tree is about 120 ft., and the average diameter about 32 in. The sapwood, which comprises the greater part of the log, is white, and the heartwood yellow. The timber (29 lb.) is straight in the grain, easily worked, and long, clean lengths and wide widths can be obtained. The yellow heartwood is durable, but the sapwood is very susceptible to the attacks of the larvæ of the white-pine borer. The timber is inodorous, and is at the present time used mainly for butter-boxes, cheese-crates, and other packages.

KAIKAWAKA; MOUNTAIN CEDAR (Libocedrus bidwillii).—Though the distribution of this tree is often local, its range extends from the Hauraki Gulf to the forests of South Otago. It is most plentiful on the west coast of the South Island. The average height of the tree is about 50 ft., with an average diameter of about 18 in. The timber (27 lb.) is dark red in colour, easy to work, light, and rather weak; it has considerable resemblance to totara, but is not so strong, and generally not so durable. The timber has been used for telegraph-poles, shingles, and palings. It has also been proved suitable for the manufacture of second-grade lead pencils, and at the present time is used for the manufacture of window-frames in the districts where it is obtainable. Being difficult to burn, it is specified for the construction of fireproof doors. Unfortunately, though occurring over a wide area, it is limited in quantity, and, if used freely, the supply would soon be exhausted.

KAURI (Agathis australis).—This, the largest tree of the New Zealand forest and the most celebrated, is rather restricted in its distribution, extending as it does only from a little to the north of lat. 38° S. to the extreme north of the North Island. Its average height is about 100 ft. The maximum diameter which has been measured is 22 ft., and a few trees still exist with diameters of 14 ft. The average diameter is, however, about 40 in. The timber (36 lb.) is light yellowish-brown in colour; it is straight in the grain, strong, easily worked, and remarkably free from knots and defects; probably there is no more generally useful softwood in the world. Though formerly much used for house-building, its present high price confines its use to railway-carriage and boat building, and cabinet and general joinery purposes. Mottled and figured kauri is much prized for cabinet-work. The kauri yields a very valuable resin called kauri-gum. It is regrettable that the remaining stands of this valuable timber-tree are now limited.

MATAI; BLACK PINE (Podocarpus spicatus).—This tree occurs more or less plentifully in forests throughout the North, South, and Stewart Islands. Its average height is about 60 ft., and average diameter about 24 in. The timber (38 lb.) is light yellowish-brown in colour, straight in the grain, and easily worked. In the ground it is of second-rate durability, but it is very durable out of the ground. It is used chiefly for weather-boarding, exterior joinery, and flooring, and for the last-mentioned purpose is one of the best timbers in the world.

MIRO (Podocarpus ferrugineus).—This tree occurs in lowland and montane forests from the north of the North Island to the south of Stewart Island, but. is most abundant in Southland. The average height is about 65 ft., and the average diameter about 20 in. The timber (36 lb.) is used in house-building, and is often sold as rimu, to which it bears considerable resemblance. The heart wood is brownish in colour, very fine in the grain, easily worked, and of exceptional strength, though not durable in the ground.

RIMU; RED PINE (Dacrydium cupressinum).—This, the principal timber-tree of the New Zealand forest, is to be found more or less in all forests except the pure beech-forests. The average height is about 100 ft., and the average diameter about 30 in. The timber (37 lb.) when first cut is reddish-brown, but it changes when seasoned to a light brown with darker and lighter streaks. It is fairly straight in the grain, easily worked, and is the chief timber used in house-building. It is often beautifully figured, and when so is used for furniture, doors, and panelling. A high grade of kraft pulp may be produced from rimu.

SILVER PINE; YELLOW SILVER PINE; PINK PINE(Dacrydium colensoi, D. intermedium, D. biforme, and D. kirkii). — The group of small podocarps, hero taken together, is far from well known, while as commercial timbers there is no uniformity in the timber supplied, that of D. colensoi and D. intermedium being both sold as “silver pine.” In the case of the so-called “yellow silver pine” the timber is white and not yellow. As at present defined, D. colensoi occurs from near Kaitaia (but only occasionally) to the volcanic plateau, where it is fairly common, and in the South Island it forms (or originally formed) considerable stands in north-western Nelson and in Westland. D. intermedium has much the same range in the North Island, but rather wider (Thames mountains, Ruahine-Tararua Mountains), and in the South Island it occurs in north-western Nelson, south-west Otago, and Stewart Island. D. biforme, except in the southern part of its range, belongs essentially to the mountains, and extends from the volcanic plateau to Stewart Island, but only where the rainfall is high. D. kirkii is confined to the North Auckland Peninsula from the Manukau Harbour northwards. Considering here only the extremely valuable timber (39 lb.) of the silver-pine, it is whitish when first cut, but darkening to a light yellowish-brown; it is straight in the grain and easy to work. Owing to its extreme durability it has been used mainly for railway-sleepers, telegraph-poles, and posts; it is occasionally beautifully mottled, and is then used for cabinet-work. The remaining supplies are now limited.

TANEKAHA (Phyllocladus trichomanoides).—This tree occurs, but not in great numbers, throughout the North Island and in the South Island in northern Marlborough and Nelson, extending southwards to near Karamea. In height it ranges from 50 ft. to 70 ft., with a diameter of 1 ft. to 2 ft. The timber (42 lb.) is yellowish-white, free from knots, close-grained, dense, heavy, and very strong, and shrinks very little in seasoning, and for this reason is favoured for the manufacture of astragals in greenhouses, which have to remain straight in varying conditions of heat and moisture. Tanekaha is the strongest New Zealand softwood. It is of uncertain durability in the ground, but is very durable out of the ground. In the past it was used for bridge-building, sleepers, and mine-props. It is now used in railway-carriage construction. The bark is very valuable, for it contains as much as 28 per cent. of tannin.

TOTARA (Podocarpus totara and P. hallii).—These trees, which are very closely related and hybridize freely, extend throughout all three Islands (P. hallii only in Stewart Island and subalpine forests), though in many localities the totara is rare. It is most plentiful in the forests of the central portion of the North Island. The average height is about 80 ft., and the average diameter about 30 in. The timber (30 lb.) is reddish when first cut, seasoning to a reddish-brown. It is straight in the grain, easily worked, but somewhat brittle. Its great durability (P. totara is the more durable) has caused it to be much used for railway-sleepers, wharf-piles, telegraph-poles, and posts. Its high price and its freedom from warping and shrinking are now, however, causing it to be used for such special purposes as window and door frames; it is also much used for veranda-posts, flooring, and steps.

HARDWOODS.

BLACK BEECH (Nothofagus solanderi).— This tree occurs in abundance—but not everywhere—in the lowland and montane belts of the North Island southwards from about lat. 38° S. (but absent in south-western Auckland and western Taranaki), and, in the South Island, in northern Marlborough and Nelson, extending southwards through eastern Marlborough and Canterbury to Banks Peninsula and Alford Forest. The timber (49 lb.) is pale-reddish, or greyish, and frequently streaked with black. Probably it is fairly durable when in the ground, and it is suitable—to say the least—for rough buildings, fencing-posts, and structural purposes. At present it is used only for fencing-posts and firewood.

HARD BEECH (N. truncata).—This tree occurs in a few localities in the North Island from Kaitaia southwards to the Thames mountains, whence its distribution is the same as that of N. solanderi. In the South Island it is abundant in northern Marlborough, and extends through Nelson with its southern limit just north of the Taramakau River. Its height ranges from 60 ft. to 100 ft. or more, and its diameter from 2 ft. to 5 ft. Until recently its timber (48 lb.) was confused with that of the red-beech, but it is harder and probably more durable. When first cut it is pinkish in colour. Its uses are the same as those of its near relative, the red-beech. With the black-beech it forms many hybrids.

RED BEECH (N. fusca).—This tree extends from about lat. 37° S. on the Thames mountains southwards throughout the North Island in the montane belt (Mount Egmont excepted), and throughout the South Island where the rainfall is high (except southwards from the Taramakau River for one hundred miles), and in the south of Southland. It is a tall and massive tree, ranging from 60 ft. to rather more than 100 ft. in height, and 3 ft. to 6 ft. in diameter. The timber (44 lb.) when first cut is a pinkish-red in colour, turning to a light brown on seasoning; it is hard, strong, easily split, durable, and of about the same weight as English ash. It is difficult to season, being particularly prone to honeycombing in drying, and for this reason has not been much used for house-building, except at one time on the Otago goldfields, where it has proved very durable; its chief use at present is for posts and mine-props, and it is used to a small extent for sleepers and bridge-work. It is valuable for furniture and bentwood work. With the increasing scarcity of Australian hardwoods it is certain to have a much more extended use in the future.

SILVER BEECH (N. menziesii).— This tree has much the same distribution as the red-beech, but it ascends higher, and is plentiful in the west of Southland, east of the Divide, extending to the Longwood Range. It also occurs at several places near Dunedin, and in the vicinity of Mount Cook and on the Blue Mountains. The average height of the tree is about 80 ft., and the average diameter about 2 ft. The Southland timber (34 lb.) is of a pinkish colour when first cut, but it changes to a light brown with exposure. It is straight in the grain, easily worked, and strong; it is however, not durable in contact with the ground. It is now being used for flooring, interior finish, furniture, bentwood work, agricultural implements, bodies of motor-cars, billiard-tables, tool-handles, dowels, rifle-stocks, shoe-heels, casks, barrels, cheese-crates, and packing-cases, and its use in these and in other directions is sure to extend.

BLACK MAIRE (Olea cunninghamii).—This tree occurs in all forests (except the beech-forests) throughout the North Island, but it is only in the central portion that it is fairly plentiful. In the South Island it is found only in Marlborough, and is very rare. It occasionally roaches a height of 70 ft. and a diameter of 4 ft., but the average height and diameter are 40 ft. and 18 in. respectively. The wood (62 lb.) is light brown, often with dark streaks, and bears considerable resemblance to that of its relative, the European olive. It is extremely dense, heavy, hard, strong, and durable, ft has been used to a small extent for framing for machinery and for bridge-building, but owing to its exceptional heat-giving property its chief use has been for firewood.

NORTHERN RATA and SOUTHERN RATA (Metrosideros robusta and M. lucida).—The first-mentioned of these trees is found in most forests below 2,000 ft. in the North Island; it is rather rare in the South Island, being found only occasionally in the lowland forests of Marlborough and Nelson. This tree generally commences life as a “perching-plant” in the forks of other large trees, and therefrom sends down huge roots, which generally envelop and strangle the supporting tree. These roots usually (but not always) coalesce, and so form a huge bole with an average diameter of about 54 in., which is generally hollow. The southern-rata, though found only rarely in the North Island, is plentiful in the South Island and Stewart Island. It has usually the same habit of growth as an ordinary tree; its average height is about 50 ft., and the average diameter is about 20 in. The timber of both trees is reddish-brown in colour, extremely hard, heavy, strong, and (out of the ground) very durable; it is highly valued as firewood. On account of the difficulty of seasoning southern rata (71 lb.) without excessive twisting and warping it has not the same value as the northern species (55 lb.), which is used to a small extent for cross-arms for telegraph-poles and for wheelwrights' work.

TAWA (Beilschmiedia tawa).—This tree is to be found in most forests of the North Island up to an altitude of about 1,700 ft. In the South Island it occurs in the coastal forests of Nelson and Marlborough. The average height of the tree is about 60 ft., and the average diameter about 20 in. The timber (46 lb.] is light brownish-white in colour, rather hard, straight in the grain, but somewhat brittle. It is difficult to season satisfactorily, and requires special treatment to ensure fungus-free timber. At present it is used for clothes-pegs and to a small extent only for inside lining and packing-cases, but, if kiln-dried, should find more extensive employment for flooring and interior finishing. It has been proved suitable for the manufacture of many classes of pulp and paper.

OUTPUT AND CONSUMPTION OF TIMBER.

The principal timbers milled in New Zealand at present are rimu and kahikatea. Pinus radiata takes third position, and it is interesting to observe that the output of this timber has more than doubled during the last five years. The subjoined table gives particulars regarding the output of timber by species for the last five years. Quantities are quoted in board measure feet (superficial feet)—i.e., units of 12 in. X 12 in. X 1 in.

Specks of Timber.1933-34.1934-35.1935-36.1936-37.1937-38.
 Bd. Ft.Bd. Ft.Bd. Ft.Bd. Ft.Bd. Ft.
Kauri4,945,8435,552,5807,332,4577,791,13211,575,107
Rimu96,125,000125,488,187157,631,153174,778,566184,588,054
Kahikatea, white pine47,949,39652,294,06552,074,97346,958,81343,662,352
Matai10,759,55613,879,62919,068,78820,295,33021,254,997
Totara7,197,3898,867,38311,778,41111,443,74112,793,702
Beech6,972,7177,725,1988,854,6168,808,5208,824,758
Pinus radiata (insignis)21,494,38227,311,37334,104,44831,483,94736,359,1,83
Other and unspecified2,210,6172,663,2602,230,4674,329,3693,707,633
    Totals197,654,900243,781,675293,075,313305,889,418322,765,786
 Per Cent. ofPer Cent. ofPer Cent. ofPer Cent. ofPer Cent. of
 Total.Total.Total.Total.Total.
Kauri2.502.282.502.543.59
Rimu48.6351.4853.7857.1457.19
Kahikatea, white pine24.2621.4517.7715.3513.53
Matai5.445.696.516.646.5
Totara3.643.644.023.753.9
Beech3.533.173.022.882.7
Pinus radiata (insignis)10.8811.2011.6410.2911.26
Other and unspecified1.121.090.761.411.15
    Totals100.00100.00100.00100.00100.00

The total of 3,707,633 board feet shown for “Other and unspecified” species for 1937-38 is made up as follows:—

Species.Bd. Ft.Species.Bd. FtSpecies.Bd. Ft.
Miro1,495,398Rata55,913Kohekohe5,869
Silver pine478,669Macrocarpa45,791Kawaka2,061
Tawa453,898Taraire39,962Unspecified299,690
Douglas fir251,921Rewarewa37,484  
Tanekaha164,388Mangeao36,709Total3,707,633
Blue-gum124,903Poplar31,760  
Pukatea84,778Puriri30,719  
Hinau57,300Kamahi10,420  

Exports of New Zealand timber during the calendar year 1938 amounted to 14,534,000 board feet, valued at £177,831, the principal species being white pine (2,021,000 board feet), rimu (7,406,000 board feet), beech (2,427,000 board feet), Pinus radiata (1,203,000 board feet), and kauri (666,000 board feet). Imports during the year comprised 43,231,000 board feet of sawn timber—including 7,048,000 board feet of Oregon pine (Douglas fir), 29,186,000 board feet of Australian hardwoods, 3,064,000 board feet of redwood, and 2,094,000 board feet of oak, valued at £601,265; 947,000 board feet of butter-boxes, valued at £17,400, and laths, palings, shingles, and other items of a value of £3,731. The figures of exports and imports of timber during the last five years are:—

Year.Exports of New Zealand Timber.Imports of Timber.
Quantity.Value.Quantity.Value.Other Items.Total Value.
 Bd. Ft.£(N.Z.)Bd. Ft.£(N.Z.)£(N.Z.)£(N.Z.)
193434,530,000320,53016,981,000229,1422,896232,038
193539,585,000364,36031,226,000394,3974,113398,510
193626,993,000265,11031,278,000424,6655,588430,253
193717,657,000200,85539,454,000557,2472,909560,256
193814,524,000177,83143,231,000618,6653,731622,396

SALES OF STATE TIMBER.

Under the timber-sales policy in operation in recent years for the disposal of the mature timber in State forests the standing timber is appraised and disposed of by public tender as a block sale. As stated earlier in this section, a system of State logging and log sales in certain areas is contemplated.

Year.Timber sold.Sale Price.
 Bd. Ft.£
1934-3565,302,70071,243
1935-36102,219,800131,447
1936-37107,429,600124,522
1937-38103,341,450107,866
1938-3990,292,600104,821

FINANCE OF STATE ACTIVITIES.

Up to and including the financial year 1915-16 the expenditure on afforestation was provided out of rents and royalties received from State Forest reserves and by an annual contribution from the Consolidated Fund. In 1916-17 provision was made for the borrowing of money for forestry purposes, and since that date all receipts and payments are shown in a State Forests Account. Commencing with the year 1933-34, interest on loans is carried forward as a liability to the Consolidated Fund until realization of the plantations.

1934-35.1935-36.1936-37.1937-38.1938-39.
Receipts.
 £££££
Timber-sales (native forest)47,17974,82891,98096,741103,394
Timber royalties and trespass5,4495,0066,2578,1519,300
National-endowment allocation10,99015,71221,80724,75620,085
Leases—Grazing1,6461,7571,6921,4931,445
Sawmill-sites, &c.1,4179577056381,616
Miscellaneous2,1252,8444,2524,9346,673
Nurseries and plantations4,0945,8747,0978,55511,224
    Totals72,900106,978133,790145,268153,737
Payments.
Interest and loan expenses172525801263278
National-endowment and local-authority allocations9,33916,36027,67332,78731,268
Staff salaries34,15541,37451,61657,18563,422
Management, &c., native forests12,98515,43818,47223,43349,254
Nurseries and plantations59,13660,642139,761177,141214,721
Research, &c.5288365679881,318
Land-purchase..70..1,1108,901
Miscellaneous3435008479134
Sawmill and creosote plant......4,87352,777
    Totals116,658135,745238,974297,859422,073

The revenue from indigenous forests is heavily reduced by statutory payments in favour of local authorities and the National Endowment Account, and during recent years the residue has been little more than sufficient to meet the expenses of supervision and management; consequently the establishment of plantations has been financed almost exclusively from loan-moneys.

STATE EXOTIC FORESTS.

State afforestation on an organized basis dates from 1896, when an Afforestation Branch of the Lands Department was formed, and forest-tree nurseries were established at Tapanui and Eweburn in the South Island, and at Rotorua in the North Island. Planting commenced in 1898, when a total of 54 acres was established.

Figures of the areas planted by the State Forest Service each year in the last decade are shown below.

Year.Acres.Year.Acres.
1929-3056,6301934-3512,211
1930-3153,8471935-3612,090
1931-3240,9791936-376,701
1932-3316,9971937-381,705
1933-3430,5321938-392,711

The gross area of State exotic forests at the 31st March, 1939, was 644,552 acres, of which the area actually established was 430,742 acres, exclusive of fire-breaks, waste lands, reserves, &c. The now area planted during the year was 2,711 acres. Particulars of State exotic forests are given below.

Name of Forest.Year of Commencement.New Area planted, 1938.Total Net Area planted.Gross Area.
* New project.
  Acres.Acres.Acres.
Mangonui*....8,927
Waipoua1,925601,61612,600
Puhipuhi1,904..1,1761,558
Riverhead1,9261511,07811,956
Maramarua1,928812,31114,087
Tairua1,93064011,78548,510
Rotoehu1,9376730330,402
Whakarewarewa1,898..8,03310,065
Waiotapu1,901..7,0517,974
Kaingaroa1,913107259,147328,667
Tongariro1,9376196961,800
Erua1,9306443,7606,648
Karioi1,927..17,19633,689
Golden Downs1,92736819,67924,174
Westland1,922..3,0645,839
Hanmer1,901..7,78410,372
Balmoral1,9162321,24224,041
Eyrewell1,928..18,34319,266
Ashley*....4,749
Naseby1,900183,0984,032
Dusky1,898..4,4706,866
Conical Hills1,903..3,6123,906
Pukerau1,915..565628
Blue Mountains1,92588,8229,708
Pebbly Hills1,930..4,3295,330
Minor areas1875-19371341,5828,758
  Totals..2,711430,742644,552

While many species were experimented with in the initial stages of the work, the chief species used in the North Island were European larch (Larix decidua), Austrian pine (Pinus austriaca), Corsican pine (P. laricio), Western yellow pine (P. ponderosa), and a number of eucalypts. Of more recent years the species used for planting have been Douglas fir (Pseudotsuga taxifolia), Western yellow pine, insignis pine (P. radiata), Corsican pine, Lodge-pole pine (P. murrayana), and Western red cedar (Thuya plicata).

In the South Island practically all the best-known commercial trees of the Northern Hemisphere have been tried, but many have been discarded as unsuitable for various reasons, until at the present time operations are being conducted with a comparatively small range of conifers which experience has shown will most readily adapt themselves to local conditions. The principal species now being used are Western yellow pine, Corsican pine, Douglas fir, insignis pine, lodge-pole pine, and Western red cedar.

Very little planting of new areas was carried out during 1938, the principal operations in the North Island being 640 acres as an addition to the Tairua plantation, while in the South Island an area of 368 acres was added to the Golden Downs plantation. The two blocks of 619 acres and 644 acres shown for the Tongariro and Erua plantations respectively consisted of underplanting cut-over land.

Planting in the new Mangonui project has not yet commenced as the establishment of a tree nursery—a necessary preliminary step—is not yet complete.

A new South Island project, known as Ashley State Forest, has an area of 4,749 acres and is located close to the Borough of Rangiora, North Canterbury. A topographical survey of the block was undertaken towards the close of the year and some 2,500 acres have already been surveyed. A temporary camp has been established, and it is expected that 400 acres will be planted during 1939-10.

Apart from the two new projects referred to, State exotic-forest activities are now being concentrated upon the consolidation and management of those areas already planted. The large-scale planting of previous years has disclosed the limitations and weaknesses of various species, and experimental planting of new species is fundamental to the provision of possible alternatives should any further weaknesses develop at a later stage in the establishment of the exotic forests. For similar reasons experimental planting of exotics in cut-over forests is also carried out.

WAITANGI ENDOWMENT.

The Waitangi Endowment, containing 1,354 acres, is portion of an estate containing the historic site of the signing of the Treaty of Waitangi, presented to the Crown as a national monument by Lord and Lady Bledisloe in 1932.

By authority of the Waitangi Endowment Act, 1932-33, the Commissioner of State Forests is empowered to administer the land as if it were a State forest, and to develop and use the land for afforestation purposes.

The primary object of these afforestation operations, however, is to reclothe a treeless area to form a scenic background for the portion of the estate known as the Waitangi National Trust, which contains the historic site mentioned.

MISCELLANEOUS FORESTRY PROVISIONS.

The method first adopted in New Zealand for encouraging the planting of trees for the production of timber was by means of “land grants” — a settler being given a free grant of land if he planted a certain portion of his land with suitable trees. Several large plantations wore established in Canterbury by this method, which, however, was abandoned in the “eighties.” The Selwyn and Ashburton County Councils are the outstanding examples of local authorities which took advantage of this scheme, and are now receiving substantial revenues from their tree plantations.

Under the system of taxation in operation in New Zealand, encouragement is given to the conservation of indigenous forests and plantations and to the establishment of new plantations, by exempting the trees from land-tax and local rates.

The actual land supporting indigenous forests and plantations is subject to land-tax. The tax, however, is assessed on the unimproved value, which for taxation purposes does not include the value of any trees or the value of the labour or capital expended in planting them.

Local rates on land supporting indigenous forests and plantations are levied on the value of the land only. A County Council is empowered to make an annual levy of ½d. per hundred feet board measure (superficial feet) on timber in the county converted from the log into sawn timber; but this levy is not applicable to timber cut from plantations.

Appraisements of timber are not liable to stamp duty if made for the Crown, for a local authority, or for the information of one party only.

Licenses granted by the Crown to cut timber are exempt from stamp duty; other licenses are not exempt.

Land on which trees of any kind are growing is subject to death duties (estate duty, succession duty, and gift duty), which are assessed on the capital value of the land, which includes the value of the trees.

COMMERCIAL AFFORESTATION.

INTRODUCTORY.

In 1923 the planting of forests was undertaken by commercial concerns. Two classes of companies have been formed to carry out the various ventures. The first is the ordinary joint-stock company, where the property is vested in the company and the shareholders receive a pro rata share of the profits according to the amount of capital contributed; the second is a company which is registered with a comparatively small capital, but of which the investing public do not become shareholders. The company contracts with each investor that in consideration of his paying the prescribed amount of cash it will convey to him at the end of a given term a certain area of land duly planted according to a prescribed agreement. The interests of bondholders are watched over by trustees until the time arrives for conveyance to the bondholders. Provision is contained in the Companies (Bondholders Incorporation) Act, 1934—35, whereby bondholders may receive shares in exchange for their bonds and become entitled to the same proportionate interest in the same property and rights as they would be entitled to under their bonds.

Of the thirty-two returns received from companies engaged in afforestation operations during the year 1937-38, nine were from companies organized on the bond-holding basis; but, though in the minority in point of numbers, their aggregate operations were greater than those of joint-stock companies. Twenty-two of the companies carried on operations in the Auckland Provincial District, five in Nelson, two in Hawke's Bay, and one each in Taranaki, Otago, and Southland.

The statistics for 1937-38 reveal an increase of 6 per cent. in assets and liabilities as compared with the year 1936-37. Receipts advanced by 9 per cent., but payments recorded a drop of 10 per cent. The chief cause of the increase in receipts is a rise in “Investments realized,” which totalled £535,910 for 1937-38 as compared with £319,247 in 1936-37.

LIABILITIES AND ASSETS.

The statement which follows shows and classifies the liabilities and assets of all afforestation companies for the last five years.

1933-34.1934-35.1935-36.1936-37.1937-38.
Liabilities.
 £££££
Paid-up share capital960,3832,555,3782,734,9092,896,2073,111,503
Loan-money11,89349,60786,55095,757107,191
Forfeited Shares Account15,24118,06019,99120,66221,256
Mortgages132,724131,280103,23283,844144,889
Sundry creditors78,812152,648191,012174,249163,034
Bondholders1,733,9581,606,9671,613,9391,672,2721,631,140
Other314,447108,857123,290132,224212,730
    Totals3,247,4584,622,7974,872,9235,075,2155,391,743
Assets.
Land for afforestation purposes470,2431,073,3921,092,1571,100,4041,107,381
Land for other purposes..3,122..3,2703,459
Development Account745,674990,7381,014,3481,113,4151,247,868
Investments1,414,8081,847,1941,956,5832,036,5601,917,361
Goodwill and preliminary expenses42,19629,14822,51325,96127,356
Other574,537679,203787,322795,6051,088,318
    Totals3,247,4584,622,7974,872,9235,075,2155,391,743

It will be observed that total assets and liabilities recorded substantial rises between the years 1933-34 and 1934-35. This increase was due chiefly to one company, formerly bond-issuing, being reconstructed as provided by the Companies (Bondholders Incorporation) Act. Reconstructions under this Act are characterized by increases in share capital and in land held for afforestation, with decreases in liabilities to bondholders and in other transactions relating to bond-issues.

RECEIPTS AND PAYMENTS.

The following statement shows a classification of the receipts and payments recorded by afforestation companies during each of the last five years. Attention is drawn to the fact that the figures in the following receipts table represent receipts from the cash point of view and should not be confused with revenue.

1933-34.1934-35.1935-36.1936-37.1937-38.
Receipts.
 £££££
Share capital40,91023,764185,090165,949140,400
Instalments on bonds425,566288,549257,406274,746130,013
Loan-money..33,62711,3226,40723,942
Investments realized399,177376,731444,001319,247535,910
Other receipts104,788101,70367,417129,482148,023
    Totals970,441824,374965,236895,831978,288
Payments.
Tree-raising6,4945,6803,9583,6122,393
Establishment charges16,94622,90921,17520,17720,762
Maintenance18,83220,11522,65324,93723,794
Management, &c.66,46966,20984,68786,29974,274
Commission, brokerage47,41953,19256,84381,63260,621
Land-purchase36,99531,44213,88928,46017,746
Investments705,423467,386559,385560,997423,312
Other118,64287,796188,244252,690328,496
    Totals1,017,220754,729950,8341,058,804951,398

SALES OF FOREST AREAS.

The companies engaged in the sale of forest areas effected sales involving 1,600 acres of land during the year 1937-38, making a total of 290,142 acres sold up to that date. The instalments on bonds paid during the year in accordance with the contracts of sale amounted to £130,113, while the total instalments paid up to date on all bonds amounted to £5,108,380. The total commitments of the investing public on account of contracts entered into during the year amounted to £48,425, bringing the total for this item to £8,369,297.

Against the foregoing must be set contracts involving 118,644 acres, of a total selling-price of £3,375,956, which have been cancelled by the purchasers. Instalments amounting to £254,777 had been paid up on these cancelled contracts.

EMPLOYEES AND WAGES.

The average number of employees engaged during 1937-38 was 229, of whom 16 were engaged in tree-raising, 44 in planting, 58 in maintenance, 74 in fire-prevention, and 37 in management. This number represents a decline of 662 from the peak year (1930). Wages and salaries paid during 1937-38 totalled £52,246.

PLANTING OPERATIONS.

The following table shows particulars regarding the species and number of trees planted during the year 1937-38, together with particulars as to the areas planted:—

Species.Number of Trees.New Area planted during the Year.Total Area planted to 31st March, 1938.
To replace Blanks.On New Areas.
   Acres.Acres.
Pinus radiata (insignis pine)513,3502,341,1293,939279,278
Pinus ponderosa348,500106,15012019,084
Pinus pinaster......3,605
Pinus laricio......2
Redwood......2,853
Douglas fir......1,195
Poplar..50,00050675
Cupressus macrocarpa......97
Eucalypts......846
Unspecified..671,8007072,618
Totals, 1937-38861,8503,169,0794,816310,253

LAND HELD FOR AFFORESTATION PURPOSES.

At 31st March, 1938, the total area of land held by companies for afforestation purposes was 397,230 acres, the book-value of which was £1,107,381 (see statement of assets), equal to £2 15s. 9d. per acre.

Chapter 20. SECTION XX. — FISHERIES.

INTRODUCTORY.

THE following article is by Mr. A. E. Hefford, M.Sc, Chief Inspector of Fisheries, and Director of Fishery Research, Marine Department:—

With its great length of coast-line, extensive natural harbours, and numerous sheltered bays, New Zealand has from the earliest times been famed for the productivity of its coastal fisheries. Off its more northerly coasts, which come within the influence of the south equatorial current, a rich variety of subtropical fish-life is found, as exemplified by such species as the flying-fish, the sunfish, the swordfish, and several shark species. On the other hand, its southern coasts, washed by the Antarctic Drift, are the natural haunt of the fur-bearing seal, and yield varieties of fish which are characteristic of cold-water conditions.

Of the many kinds of excellent edible fishes the most important are the snapper (Pagrosomus auratus), which is particularly abundant in the North; the tarakihi (Dactylopagrus mncropterus), taken mainly by trawlers in the more off-shore waters of Hauraki Gulf, Bay of Plenty, Hawke's Bay, in the vicinity of Cook Strait, and off the coasts of Canterbury and Otago; the flounders of different species (Rhombosolea), which occur in the more shallow and sheltered waters; the blue cod (Parapercis colias), which provides the staple product of the southern line fisheries; and the groper or hapuku (Polyprion oxygeneios), which is caught on lines in the deeper water from the North Cape to Stewart Island.

The most productive grounds are in relatively shallow water, and, except for groper and ling fishing by means of long lines, most of the fishing is carried on at depths of less than 40 fathoms. Depths of over 100 fathoms occur at a comparatively small distance from the coast, and up to the present it is not known to what extent these deeper waters may be productive of marketable fishes. The principal methods of fishing are long-lining for groper (hapuku), ling, “hake” or “kingfish,” and snapper; hand-lining for blue cod; trawling and Danish seining, by which flounders, snapper, tarakihi, gurnard, john-dory, and a variety of other fish are taken. In bays and estuaries set-nets are used for flounders, snapper, and mullet, and seines are also employed principally for the capture of flat-fish and snapper. Though sardines or pilchards (Sardinia neopilchardus) and other species of the herring family are known to occur in large shoals off some parts of the coast, there is as yet no regular fishery for these kinds.

STATISTICS OF FISHERIES.

The only information formerly available under this head was a statement compiled by the Chief Inspector of Fisheries giving an approximate estimate of the weight and value of fish landed at the principal fishing-ports for each year, the data being obtained from local officials as annual totals. For the year ended 31st March, 1937, the statistics were for the first time collected on a new system by which returns of the individual landings from each licensed fishing-boat have been made. From such data the following statement has been compiled, which gives the total quantity and value of fish landed at the principal fishing-ports for the year ended 31st March, 1939. Although the basic data are not absolutely comprehensive and the totals therefore may be somewhat below the true amounts, they are very much more accurate than those formerly presented.

PRINCIPAL KINDS, QUANTITIES, AND VALUE OF FISH CAUGHT, 1938-39.

Port.Principal Kinds of Fish caught.Quantity.Total Value.
* Includes 11,361 cwt. caught at the Chatham Islands and shipped direct to Wellington.
RussellSnapper, mullet, hapuku, flounder, kingfish, garfish, tarakihi, gurnard, maumau, crayfish1,190 cwt.£ 1,088
WhangareiSnapper, mullet, flounder, hapuku, blue cod908 cwt.1,493
KaiparaSnapper, flounder, mullet3,242 cwt.5,601
Auckland DistrictSnapper, tarakihi, trevally, flounder, gurnard, hapuku, dory, kingfish, blue cod, barracouta, mullet, garfish150,730 cwt.144,914
 Crayfish1,366 cwt.2,193
 Mussels8,072 sacks2,146
ThamesSnapper, gurnard, dory, mullet, flounder, dab, pioke17,199 cwt.23,616
Mercury BaySnapper, tarakihi, hapuku, gurnard, blue cod, flounder, kingfish, crayfish1,354 cwt.1,253
Tauranga and districtSnapper, hapuku, trevally, blue cod, tarakihi, mullet, kingfish6,006 cwt.5,668
WhakataneFlounder, hapuku, gurnard, snapper, tarakihi1,875 cwt.1,829
GisborneTarakihi, gurnard, snapper, flounder, sole, kahawai, hapuku5,722 cwt.6,961
NapierTarakihi, snapper, moki, kahawai, gurnard, trevally, hapuku, kingfish, barracouta, john-dory, flounder, sole, brill, warehou15,767 cwt.22,423
New PlymouthSnapper, hapuku, kingfish, tarakihi, kahawai, cod, crayfish, gurnard797 cwt.1,219
WanganuiBlue cod, hapuku, flounder, snapper444 cwt.626
WellingtonTarakihi, gurnard, flounder, sole, snapper, ling, warehou, hapuku, moki, butterfish, blue cod, southern kingfish, crayfish, hake, trevally53,580 cwt.*55,959
PictonHapuku, moki, butterfish, garfish, crayfish, blue cod, flounder3,465 cwt.6,160
BlenheimRed cod, sole, flounder, snapper, moki, hapuku, gurnard, tarakihi, butterfish, crayfish1,061 cwt.1,563
Nelson District and French PassSnapper, flounder, gurnard, bream, hapuku, cod, crayfish6,610 cwt.10,420
WestportSole, hapuku, turbot, flounder, ling, crayfish, snapper481 cwt.945
GreymouthWhitebait, flounder, sole, cod, hapuku, snapper, gurnard, hake, tarahiki, turbot1,539 cwt.2,236
KaikouraHapuku, ling, trumpeter, southern kingfish, cod, hake, tarakihi, crayfish2,675 cwt.5,748
AkaroaHapuku, conger eel, flounder, sole, brill, blue and red cod, crayfish, barracouta, kingfish, moki, butterfish3,130 cwt.4,885
LytteltonHapuku, barracouta, flounder, sole, gurnard, brill, tarakihi, ling10,673 cwt.17,998
TimaruFlounder, sole, brill, hapuku, ling, red cod, gurnard, barracouta13,960 cwt.24,777
Oamaru and Moeraki Dunedin andHapuku, red cod, blue cod, moki, barracouta, ling, crayfish5,370 cwt.7,570
Otago DistrictHapuku, ling, red cod, barracouta, king-fish, blue cod, moki, trumpeter, tarakihi, trevally, mullet, garfish, kahawai, kelpfish, sole, flounder, brill, skate30,779 cwt.42,856
Bluff and In-Hapuku, blue cod, flounder3,104 cwt.6,458
vercargillOysters67, 243 sacks48,751
Stewart IslandBlue cod, hapuku6,333 cwt.10,630
Chatham IslandsBlue cod, hapuku2,299 cwt.1,285

The estimated total quantity and value of the principal classes of fishery products marketed during each of the last two years are as follows:—

Quantity.Value.
Unit.1937-38.1938-39.1937-38.1938-39.
    ££
Wet fishCwt.355,687356,114413,516424,643
WhitebaitCwt.3,1113,05334,84325,204
Oysters (dredged)Sack66,38767,24348,12548,751
Oysters (rock)Sack4,2034,8705,0436,696
MusselsSack7,41112,8691,8693,245
CrayfishCwt.12,2129,25511,96011,031
Toheroa (canned products)Lb.48,55869,5604,8633,696
Whale oilTons2804004,2608,000
Quinnat salmon (netted fish only)Lb.6,23610,727311536
Total value......524,790531,082

The figures for whale oil refer to the mainland whale fisheries only. The following table shows the quantities and values of New Zealand fish and shell-fish exported for each of the last five years (1st April to 31st March).

 1934-35.1935-36.1936-37.1937-38.1938-39.
Fish (frozen)Cwt.46,71454,26750,72745,03643,213
 £97,469123,198132,401117,641139,743
Fish (smoked, dried, pickled, or salted)Cwt.1,9682,5193,7241,088467
 £4,0646,81612,0692,8961,231
Oysters (fresh)Doz.206,660201,782135,53365,47033,466
 £1,8952,1701,447951533
Oysters (canned)Lb.95,270172,855331,747208,460182,451
 £3,8186,44412,97410,9349,356
Toheroa (canned)Lb.24,68824,83632,97947,19842,302
 £1,8671,6832,4253,0733,112
Whitebait (canned)Lb.105,89985,701104,23294,697111,493
 £9,5618,66212,1099,75814,917
Other kinds (canned)Lb.54,56163,90123,78331,09830,600
 £3,2294,3491,6972,4802,678
Value of total exports of New Zealand fish and shell-fish £121,903£153,322£175,122£177,733£171,570

VESSELS AND PERSONS EMPLOYED IN FISHING INDUSTRY .

A table showing the various classes of vessels engaged in the fishing industry, together with the number of persons employed, is given below for the year ended 31st March, 1939:—

Whole Time.Part Time.Total.
Vessels engaged in fishing for wet fish—   
Steam trawlers11516
Motor trawlers275279
Motor-vessels—Danish seining541468
Motor-vessels—Set-net and line fishing198516714
Row-boats15252267
Vessels engaged in shell-fishing—   
Oyster-dredging vessels10212
Mussel-dredging vessels235
Crayfishing-vessels8127135
Number of persons employed—   
Fishermen9261,2922,218
Others (excluding retailers)236166402

In order to ascertain the economic position of the fisheries industry an investigation committee was set up, under the Board of Trade Act, in 1937. This committee conducted exhaustive inquiries into all aspects of the industry, and reference to the committee's report (Parliamentary Paper H.-44A, 1937-38) will give detailed information as to the conditions under which the industry operates.

OYSTER-BEDS.

The principal oyster-beds round the coast of New Zealand are those situated in Foveaux Strait, between South and Stewart Islands, and the rock-oyster beds on the east and west coasts of the Auckland Peninsula. The Foveaux Strait beds are very extensive.

During the 1938 season 67,243 sacks of oysters, valued at £48,751, were dredged from the Foveaux Strait beds, as compared with 66,387 sacks, valued at £48,125, in 1937.

The rock-oyster beds of Auckland were worked for many years under a variety of systems, but owing to stripping of the beds close seasons had frequently to be proclaimed. From 1908 the picking and wholesale marketing of rock-oysters from the North Island beds has been undertaken by the State, private picking being prohibited. Oysters picked and sold by the State in 1938 realized £6,774 (1937, £5,214); the cost of cultivating, picking, and soiling, including interest and depreciation on the cost of the oil-launches used by the Inspectors and all overhead expenses, was £7,889 in 1938 (1937, £6,243). The total expenditure in 1938 included £1,890 for oyster cultivation and the establishment of new beds. A profit accrues to the State in most years, and the scheme has, moreover, resulted in the conservation and extension of the beds.

Oyster-cultivation work is being systematically carried on by the Marine Department in the Hauraki Gulf, in the Bay of Islands, and in the Kaipara district.

CRAYFISH.

Marine crayfish occur in abundance off many parts of the New Zealand coast, and are caught in baited traps and nets for the local markets. A small but increasing canning industry is also carried on. An export trade in frozen crayfish-tails, which had begun to develop in 1933 and 1934, received a setback owing to the restrictions on imports into European markets. In the year 1938-39 the total exports of frozen crayfish amounted to 583 cwt, valued at £1,631.

WHALING.

With the enormous development of pelagic whaling that has taken place in recent years, the whaling industry in New Zealand has greatly declined from the important position which it occupied in the early days of the colony. There is now only one shore station in commercial operation, that in the Tory Channel, Marlborough Sounds, and during the 1938 whaling season seventy-five hump-back whales, one sperm whale, and one blue whale, which produced 400 tons of oil, were caught in that area.

References to whaling operations carried out in the Ross Sea and international whaling statistics appear in the section towards the end of this volume dealing with “Dependencies.”

The Whaling Industry Act, 1935, was passed in order to give effect to an International Convention for the regulation of whaling and matters incidental thereto.

SEALS.

For many years past the taking of seals has been prohibited, the close season originally declared having been extended from time to time for periods of three years. The latest extension carries the close season to 30th November, 1940.

WHITEBAIT.

A fishery that is peculiar to New Zealand with regard both to the product and to the methods of operation, carried on from July to November in the tidal reaches of many rivers, is the whitebait fishery. New Zealand “whitebait” are the young of Galaxias attenuatus, a species that lives for the greater part of its adult life in fresh water, descending to tidal water to spawn in late summer and autumn. The spawn is deposited among grass and similar herbage on the margin of the river above the ordinary high-water mark in a zone that is submerged only at the highest spring tides. Here it remains under cover of the herbage and secure from aquatic enemies until it is once more reached by a spring tide about a fortnight or, it may be, a month later. The young then hatch out, and are carried by the ebb tide to the sea. Here they remain until at the age of about five months the young fish, then about 2 in. long and still possessing the almost glassy transparency of the larval stage, migrate up the rivers in dense shoals. This is the time of the whitebait fishery, when they are caught in nets made of wire gauze or mosquito-netting. The cultivation and drainage of riparian lands have considerably diminished the extent of spawning and feeding areas that were available in earlier times. From these causes, as well as from the intensity of the fishing operations, there are now few rivers where the runs of whitebait show anything like the abundance of former years. The most productive whitebait fisheries are near the mouths of the rivers of the West Coast of the South Island and in the lower reaches of the Waikato River. During the 1938 season the whitebait fishery gave employment to over three hundred regular fishermen, mostly Maoris, and a greater number of part-time fishers, and produced 3,053 cwt. of whitebait. The canned whitebait packed in the West Coast and Waikato factories is a much-esteemed delicacy.

MARINE FISH-HATCHERY AND BIOLOGICAL STATION.

The erection of the marine fish-hatchery at Portobello, Otago Harbour, was carried out by a Board set up to superintend the work of the hatchery, funds being provided by the State, and grants being made by the Otago Institute, the Australasian Association for the Advancement of Science, and a number of acclimatization societies. Up to the present the State has made an annual grant towards the maintenance of the hatchery, the buildings and equipment of which have also been added to from time to time.

Experiments have been carried out with a view to introducing certain English food fishes to New Zealand waters—viz., lobsters, edible crabs, and turbot. Valuable work has also been done in the direction of hatching the spawn of various indigenous fishes and in making a study of their life-habits.

The acclimatization projects not having shown any material results, and experience elsewhere having demonstrated the impracticability of artificial propagation of marine fishes, the principal usefulness of the station has been the educational value of the well-stocked aquarium to the visiting public, and the limited facilities it has afforded for marine research and the collection of material for museums and biological laboratories. As a station for research its usefulness has been nullified by the reduction in the grants from Government funds since the financial depression, and since from its situation and for other reasons it is not the most suitable centre for the prosecution of fishery research it is possible that this station may be abandoned in the near future.

BIG-GAME FISHING.

Swordfish (striped and black marlin, and occasionally broadbill), mako shark, and other big-game fish occur principally off the east coast of the Auckland Province, and attract both New Zealand and visiting big-game fishermen. The principal centres for this sport are Whangaroa, Russell (Bay of Islands), and Whitianga (Mercury Bay), where specially designed and equipped launches in charge of experienced men may be hired. The season lasts from December to May, the best months usually being February and March. The world's record black marlin swordfish (976 lb.) was caught off the Bay of Islands in February, 1926.

FRESH-WATER FISHERIES.

NATIVE FISHES.

Of fresh - water fishes indigenous to New Zealand the species of most commercial importance at the present time is Galaxias attenuatus, which provides the whitebait fishery already mentioned. Other species of Galaxias are known in the streams and lakes of the Dominion. A remarkable mud-fish (Neochanna apoda) belonging to the same family is capable of surviving for long periods without being in water. A small fish belonging to the smelt family, Retropinna retropinna, occurs in abundance in salt, brackish, and fresh water, and there are inland lakes where a purely fresh-water variety of smelt is found. The New Zealand grayling (Prototroctes oxyrhynchus) was found in abundance in many rivers in the earlier years of settlement, but for some unknown reason has become exceedingly rare during recent years. A small fish belonging to the goby family, and very abundant in most rivers and lakes, is the bully. With the exception of the eels, which frequently attain an extraordinarily large size compared with those of the Northern Hemisphere, all the native fresh-water fishes are small, and are therefore not considered to possess any sporting value except to the most juvenile of anglers. There are two species of eels—Anguilla australis, predominant in the northern rivers and lakes, and Anguilla aucklandi, which is found more abundantly in the South. Both species are found in the southern portion of the North Island and in the northern parts of the South Island. Eels constituted an important food-supply to the Maoris, who devised very efficient traps for their capture as the adult eels migrated to the sea. This fishery is still carried on by the Maoris of some districts.

The following is a complete list of the definitely known indigenous freshwater species:—

Scientific Name.European Name.Maori Name.Usual Maximum Size.
   Inches.
Galaxias attenuatus“ Minnow ”Inanga7
Galaxias fasciatusNative trout or mountain troutKokopu10
Galaxias brevipinnis“Gudgeon”Taiwharu or kokopu6
Galaxias huttoni..Koaro6
Galaxias burrowsiiCanterbury mudfish..5 to 6
Neochanna apodaMudfishHauhau or waikaka8
Retropinna retropinnaSmeltParaki6
Prototroctes oxyrhynchusGraylingUpokororo12
Cheimarrichthys fosteriTorrent-fish or shark-bullyPapanoko7
Gobiomorphus gobioidesBullyToitoi6
  Feet. 
Anguilla australisShort-finned eelTuna3 to 4
Anguilla aucklandiLong-finned eelTuna4 to 5
Geotria australisLampreyKoro-koro or kunakuna2

The “minnow,” smelt, grayling, and, of course, the eels and lamprey are migratory fish which spend parts of their lives in the sea or in estuarine tidal waters.

ACCLIMATIZED FISHES.

Although most of the above-mentioned indigenous fishes—especially the eels, kokopu, and upokororo—provided an appreciable portion of the food-supplies of the Maoris, and have been a welcome addition to the camp provision of surveyors, bushmen, and prospectors since the pioneering days, there were many among the early settlers to whom the New Zealand rivers and lakes appeared uninteresting and unproductive in comparison with their native salmon and trout streams. By means of private agency in some cases and by more organized efforts on the part of Government and local acclimatization societies, attempts to introduce British salmon and trout were commenced in the early “sixties.” The first brown trout to be established in New Zealand waters were reared in 1867 from ova obtained from Tasmania, where the species had been successfully acclimatized from South of England stock a few years earlier. Further shipments of ova from Tasmania, and also from Britain, followed, the fry being hatched out and liberated by various acclimatization societies, with the result that in the “eighties” and “nineties” most of the rivers and many of the lakes in both North and South Islands carried stocks of brown trout of such phenomenal size and in such abundance that New Zealand's claim to the title of “the Angler's Paradise” was already established. The remarkably rapid growth of trout in New Zealand waters is doubtless due to the abundance of suitable food afforded by the native aquatic fauna and by especially favourable climatic conditions in comparison with the original habitat of the species in the higher latitudes of the Northern Hemisphere, where the long and rigorous winters bring about a more or less complete cessation of feeding and of growth during the coldest months of the year. Sea trout were introduced in the “seventies” and “eighties” and the progeny distributed throughout New Zealand. Our present stocks of European trout have thus been derived from English and Scottish brown trout, sea trout, and the Loch Leven variety, which have doubtless interbred. Some migrate to sea and acquire salmonlike characteristics, while others are permanent inhabitants of fresh water.

Rainbow-trout ova were imported from California in 1883 and 1884 by the Auckland Acclimatization Society, and there is now scarcely a district to which this species has not been introduced. It has flourished exceedingly in the larger lakes of both Islands. Lake Taupo, with its tributary rivers, principal among which is the Tongariro, is regarded as providing the finest rainbow-trout fishing in the world. The earlier-established brown-trout stocks of Taupo and of many other lakes have declined in the face of the competition of this species. In rivers its establishment has been more uncertain, and some streams have failed to maintain a stock in spite of repeated plantings. In a few the rainbow has succeeded where the brown trout was a comparative failure, those being generally the warmer rivers of the North; while in some, such as the Wanganui, the two species are found together.

The American brook trout or speckled trout was first imported from the United States in 1877, and the latest shipment came from the Solway Fisheries (Scotland) in 1887. From these stocks ova and fry were widely distributed throughout this country. Generally speaking, they have been a failure, partly through being put into unfavourable environments, but probably more through inability to compete in the same waters with the more dominant brown and rainbow species. They still persist, however, in a few streams in well-bushed districts in Canterbury, Otago, and Southland, and have been caught up to 3 lb. in weight in the Pareora River. In 1933 fish of this species, some exceeding 3 lb. in weight, were found spawning in the month of April in a stream flowing from Lake Emily in the Ashburton district.

The Mackinaw trout or great American lake trout was introduced in 1906, and fry were planted in two Canterbury lakes (Pearson and Grasmere). Fish up to 10 lb. weight have been recently taken by anglers in Lake Pearson.

Contemporaneously with the steps taken for the introduction of trout many attempts were made to acclimatize salmon in New Zealand. These failed because the relatively small numbers of ova imported were rendered still less effective by being subdivided and apportioned among several different districts, no recognition apparently being given to the considerable degree of mortality occurring during the marine phase in the life of these migratory species. In 1901 the acclimatization of quinnat salmon was undertaken by the Marine Department. Between that year and 1907 five shipments of ova, each consisting of half a million eggs, were made and the fry liberated in the Hakataramea, a tributary of the Waitaki River.

Early success was achieved, some quinnat salmon being caught in the Waitaki in 1905. From 1910 onwards mature fish returning to the Hakataramea and other tributaries of the Waitaki have been trapped for hatchery purposes, and the ova used for the introduction of the species to other rivers. The Hokitika River was the first to be stocked, more than three and a half million ova being sent there between 1910 and 1928. No stock of sea-running quinnat salmon has resulted from these undertakings, though in Lake Kanieri, from which a tributary stream runs into the Hokitika River, a stock of small lake-dwelling quinnat salmon was produced. There have been reports, however, of quinnat salmon being taken in some of the remote and inaccessible rivers in South Westland, which may be the result of migration from the Hokitika River, or may be the progeny from the stocking of the Seaforth River with 6,000 quinnat fry in the years 1910 and 1911. Material evidence has recently been obtained that has proved the existence of quinnat salmon in the Okarito River system, South Westland. The Wairau River, Marlborough, has also received fry from over five million eggs, but only a few odd quinnat salmon have ever been seen in this river. By natural migration, however, the species has spread from the Waitaki to all the large rivers of Canterbury, and to some of the small ones, such as the Opihi and Orari. It has also found its way into some of the rivers of the North Island—namely, the Rangitikei and Wanganui on the west coast and the Tukituki and Tarawera Rivers on the east coast, and specimens have been taken in Wellington Harbour and the lower Wairarapa Lake. The principal runs take place between January and May into the large so-called snow-fed rivers of Canterbury—the Waitaki (dividing South Canterbury from North Otago), the Rangitata, Rakaia, and Waimakariri. The Clutha, stocked with fry from Hakataramea ova between 1917 and 1922, also has an annual quinnat run, though apparently few fish are caught until they reach Lake Wanaka, from which the Upper Clutha flows. In this lake and in Lake Wakatipu at the head of a large tributary there are stocks of small quinnat which remain throughout life in the fresh water.

Ova of the sockeye or red salmon were imported from Western America in 1902, and fry were planted in the tributaries of Lake Ohau at the headwaters of the Waitaki River system. The species appears to have taken exclusively to a lake-dwelling habit, resulting in the stock of dwarf salmon of this species found at the present time in Lake Ohau.

In 1908 the Marine Department undertook the task of the introduction of Atlantic salmon on more intensive lines than had been the case in the many previous attempts, and concentrated on the Waiau River, which has two large lakes (Manapouri and Te Anau) at its headwaters. A hatchery was established at Te Anau, near the Upokororo River, into which tributary the earliest fry were liberated. In 1908 150,000 ova were obtained from the Mirimichi River in Eastern Canada. In 1910 just over a million eggs were landed from England, which had been collected from the following sources: 375,000 from the River Tay (Scotland); 125,000 from the Blackwater (Ireland); 55,000 from the Test (England); 110,000 from the Dee (England); and 350,000 from the Rhine (Germany). In 1911 a further million ova, consisting of 400,000 from the River Wye (England) and 600,000 from the Rhine, were landed. The fry were liberated in the Upokororo and tributary streams. Within about ten years evidence of the establishment of the species was obtained, and in 1923 mature Atlantic salmon were trapped in the Upokororo River, and artificially hatched fry were planted in the Wanganui River in the North Island. After an average of more than 450,000 ova each year had been transferred for seven successive years without appreciable result, it was concluded that this river, flowing to the west coast of the North Island, did not afford a suitable habitat for the species. The Upokororo-bred salmon have aroused considerable interest in biological circles in that the majority of them have refrained from migrating to the sea as is their habit in the Northern Hemisphere. For the most part they have moved from the Upokororo River to Lake Te Anau, and have remained there feeding in fresh water for the rest of their lives, although there is no obstacle to their exit down the Waiau River to the sea. They have, in fact, assumed the habits of lake trout. A certain proportion of them have, however, found their way to the sea, and some have been caught in the breakers entering the mouth of the Waiau. No general migration of smolts has ever been observed, and half-grown and maturing salmon are frequently caught feeding not only in the lake but also in the River Waiau between the upper lake (Te Anau) and the lower lake (Manapouri), as well as between Manapouri and the sea. Atlantic salmon in New Zealand attain maturity at an earlier age than is the rule in the Northern Hemisphere. All of them apparently spawn as grilse, and thereafter, owing doubtless to their fresh-water habitat, do not increase very much in weight. The majority of Waiau salmon taken by anglers are between 3 lb. and 5 lb. The highest weight recorded is 17 lb. A 13 lb. fish was taken in 1935.

Besides the above-mentioned members of the salmon and trout family, other species of fish from the Northern Hemisphere which have been acclimatized in New Zealand are the European perch, tench, and carp, and the North American catfish (Ameiurus catus).

ANGLING.

The local administration and management of fresh-water fisheries are in the hands of the acclimatization societies, of which there are twenty-seven in the Dominion. Licenses to angle for acclimatized fish are issued by these societies in conformity with the Fishery Acts. A license for the season has recently been raised to £1 10s. for the Auckland Acclimatization District, but for other districts costs £1 5s., and is available for any other part of the Dominion except the Taupo and Rotorua Acclimatization Districts in the thermal-lakes region. For the Taupo district there is a higher scale of license fees as follows : Local residents, £1 10s.; persons domiciled in New Zealand, £2; other persons (from overseas), £6. These are for the whole season. Weekly and day licenses are also available. For Rotorua district the license for the season costs £1, and there are lower fees for half-season, monthly, weekly, and daily licenses. These two acclimatization districts are under the control of the Department of Internal Affairs. Under the legislation of 1930 prescribing an increase in the fee for the ordinary season license from £1 to £1 5s., provision was made for payment into the Consolidated Fund of 10 per cent. of the revenue from trout-fishing licenses for the financing of fresh-water-fishery research. The remaining funds from fishing licenses are used by acclimatization societies for the stocking and protection of fishing waters, and—in the case of the Taupo district—also for payments to the Maoris from whom rights of fishing and access have been purchased.

The ordinary fishing license is available for either trout or salmon fishing. The brown-trout fishing-season opens on the 1st October and closes on the 30th April. In certain rainbow-trout fishing districts—e.g., Taupo and Rotorua—the season opens and closes one month later.

Brown trout may be caught in practically every river and stream in New Zealand, with the exception of those in the extreme north of Auckland. A considerable proportion of riparian land on good fishing waters is public, but, generally speaking, access to private land is freely given to anglers. The selling or letting of the right to fish is forbidden by law. In a country so favoured with numerous trout streams suitable for either wet or dry fly angling or for minnow-fishing, it is difficult to enumerate a list of rivers or even districts that may be labelled as the best. Nowadays the big bags are more easily obtained from the more remote waters in the back-country districts. In most districts certain rivers are limited to artificial-fly fishing only. Several of the Auckland rivers carry rainbow trout only, while in others both rainbow and brown trout fishing may be obtained. The lakes in the thermal region of the North Island, especially Taupo, Rotorua, and Rotoiti, together with Waikaremoana, are notable rainbow-trout waters, but this species in more recent years has made great headway in several South Island lakes. In Lake Coleridge, sixty miles from Christchurch, Canterbury, rainbow trout, brown trout, lake-dwelling quinnat, and Atlantic salmon have all been caught on a single angling trip. This lake was stocked with 40,000 Atlantic-salmon fry in 1928 in order to ascertain the growth of this species under indubitably “land-locked” conditions. The first specimens captured (in 1930) had attained a weight of rather more than 3 lb. when under two and a quarter years of age. With the exception of this lake, the only water where fishing for Atlantic salmon can be obtained is in the Waiau River system, Southland. Both fly and minnow-fishing methods are used, and large brown or rainbow trout may be taken in the same pools as the salmon. Angling for quinnat salmon is carried on principally in the lower reaches of the large Canterbury rivers—the Waimakariri, Rakaia, Rangitata, and, to a less extent, the Waitaki, Opihi, Hurunui, and others. A spoon bait well sunk is the most successful. Anglers are permitted to sell quinnat salmon on taking out a license, the fee for which is £1 for the season. A limited amount of commercial salmon-seining is carried on in the estuary of the Waimakariri River. The number of licensed nets is restricted to not more than four, and three days—Friday to Sunday inclusive—are prescribed as a weekly close season. The total salmon netted for each of the last five years was 732, 246, 106 (for two nets), 479, and 1,125 (for three nets) respectively; the average weights of the fish were respectively 12.9 lb., 11.1 lb., 10.1 lb., 13.0 lb., and 9.5 lb. The run of fish from the sea begins in January and ends in May, with the maximum in March. Several fish exceeding 40 lb. in weight, and one fish weighing 52 lb., have been taken with rod and line.

Chapter 21. SECTION XXI.—MINING.

INTRODUCTORY.

IN no other country of equal size to New Zealand are indications of a greater number of economic minerals to be found; yet, with the exception of iron-ore, the known mineral reserves are not great in comparison with those in many other countries. The coal reserves of the Dominion are considerable, however, and their duration will be extended by the utilization of the enormous water-power resources of the country.

The gold-mining industry, which, in its early stages, contributed greatly to the progress and settlement of New Zealand, has, during the last few years, again come into prominence, mainly on account of the enhanced price of gold. The estimated gold production for 1937 was the largest recorded over a period of seventeen years.

In chronological comparisons of values of production or export, with gold as with other commodities, it is important not to overlook the fact that all monetary expressions of value in this section are in terms of New Zealand currency, which since 1929 has been at varying levels below gold-standard and sterling parities.

The law relating to mining and quarrying is contained for the most part in the Mining Act, 1926, with its amendments of 1927, 1931, 1934, 1935, 1937, and 1938; the Coal-mines Act, 1925, as amended in 1927, 1933, 1935, 1936, 1937, and 1939 (section 8 of the Statutes Amendment Act); and the Stone-quarries Act, 1910, as amended in 1911, 1920, and 1922. Recent amendments to the provisions of the Mining Act, 1926, are contained in section 39 of the Statutes Amendment Act, 1938, and in sections 44-48 of the Statutes Amendment Act, 1939.

The following statement shows the production of metalliferous mines, of stone-quarries under the Stone-quarries Act, and of coal-mines:—

Mineral.1937.1938.
Quantity.Value.Quantity.Value.
  £ £
Gold and silver612,468 oz.1,319,743509,759 oz.1,214,054
Platinum554231 6/20 oz.7
Iron-ore571 tons8801,218 tons3,666
Stone..444,837 tons..555,295
Pumice2,931 tons8,0573,046 tons8,811
Coal2,277,799 tons2,277,7992,222,088 tons2,222,088
Tungsten-ore23½ 4/0 tons6,46845½ 3/0 tons8,604
Manganese-ore5 tons5090 tons450
Silica sand164 tons2361,459 tons1,126
Mercury1,344 lb.336760 lb.190
Fuller's earth....56 tons154
Diatomaceous earth......70
Totals..4,058,829..4,014,515

The production of gold and silver is of necessity taken together, as separate figures are not available; an estimate of gold-production is, however, given on the next page. Kauri-gum, the (chiefly) fossilized resin of former kauri forests, is counted as a mineral, but is not included in the above table.

The next statement shows the value of New Zealand minerals and allied substances exported:—

Mineral.1936.1937.1938.Total from 1st January, 1853, to 31st December, 1933.
 ££££
Gold1,398,6561,435,2161,296,839104,039,441
Silver55,74548,18438,8733,544,999
Tungsten-ore5,5637,24810,804348,165
Antimony-ore....2055,101
Mercury......19,024
Other minerals8,8818,0789,108575,661
Kauri-gum96,161151,589103,77723,617,513
Coal (including bunker)55,21773,48673,4777,569,319
Total1,620,2231,723,8011,532,898139,769,223

GOLD-MINING.

The actual figures of gold-production are not available owing to no distinction being made between gold and silver in the case of certain mines which produce both. The following statement shows bullion-production during 1938 :—

Production of Bullion.*Number of Persons ordinarily employed at Productive and Unproductive Mines and Dredges.Number of Productive Mines and Dredges.
Quantity.Value.
* Including a proportion of silver.
 Oz.£  
Quartz-mining435,706622,3361,18959
Alluvial mining19,929149,5861,3741,088
Dredging54,124442,13239224
  Totals, 1938509,7591,214,0542,9551,171

The following table shows the production of bullion and the estimated gold content for the last five years. The substantial increases in the aggregate value of production in recent years (estimated gold content in 1930 was 120,931 ounces, valued at £499,744) illustrate what the advance in the price of gold has meant to the industry.

Year.Production of Gold and Silver Bullion.Estimated Gold Content.Approximate Average London Price of Gold per Ounce.
Quantity.Value.Quantity.Value.

* Ounces of fineness of 20 carats or upwards.

† Fine ounces—i.e., 24 carats. Prices are given in New Zealand currency.

 Oz.*£Oz.*££  s.
1934542,8631,195,840160,2481,158,6078  12
1935603,2441,300,046165,2771,243,5528  17
1936597,5481,272,587164,5751,233,1788  15
1937612,4681,319,743168,4871,279,8938  15
1938509,7591,214,054152,0501,182,7198  17

Quartz-mining is carried on mainly in Waihi and surrounding districts, on the west coast of the South Island, and to a lesser extent in Otago. In 1938, 435,706 oz. of bullion, valued at £622,336, were produced from quartz-mines, as compared with 534,424 oz., valued at £710,421, in 1937. The quantity of ore treated in 1938 was 240,143 statute tons, as against 263,183 tons in 1937, while the number of persons ordinarily employed decreased from 1,358 to 1,189. The average value per ton of ore treated in 1938 was £2 11s. 9d., as compared with £2 14s. in 1937. The value of bullion production in the Northern District (Waihi, &c.) decreased from £511,585 in 1937 to £426,580 in 1938, in the West Coast District from £191,807 to £188,941, and in the Otago District from £7,029 to £6,815.

Alluvial gold is found chiefly on the west coast of the South Island and in Otago. Production fell from 27,142 oz., valued at £200,024, in 1937, to 19,929 oz., valued at £149,586, in 1938, while the number of men engaged dropped from 2,168 to 1,374. The decrease in the numbers engaged in the industry was due mainly to the diversion of subsidized prospectors to other occupations. Another important factor in the decrease in production was the very dry season, which resulted in a shortage of water for mining operations.

Gold-dredging possibilities present an entirely new aspect not only on account of the present price of gold, but also on account of the great depths to which modern machines can work and their low cost of operation per cubic yard. The peak of gold-production from dredging occurred in 1902, when approximately two hundred plants were in operation, and production probably totalled 160,000 oz. per annum. Provided the price of gold does not decrease to any appreciable extent, it is not beyond the realms of possibility to again reach this figure. The number of productive dredges has increased from seven in 1933 to twenty-four by the end of 1938. Three further all-steel dredges were in course of construction, two on the West Coast and one at Lowburn, in Central Otago. Production in 1938 amounted to 54,124 oz., valued at £442,132, as compared with 50,902 oz., valued at £409,298, in 1937. Of the total production in 1938, £353,873 was won by eighteen dredges on the West Coast, and £88,259 by six dredges in Otago and Southland. The largest producer was the “Rimu” dredge on the West Coast, with 12,148 oz., the next in order being the “Clutha River,” Otago, with 7,626 oz.

Export duties on gold have been raised considerably in recent years (vide Section XD—Customs Tariff and Revenue).

Details of gold exported during the last two years and the total since 1857, when the first parcel of gold was exported, according to production districts, are given in detail in a table in the “Mines Statement.” Quantities are given in ounces of the fineness of 20 carats and upwards (actually they approach closely to a 24-carat standard; investigation in a fairly recent year gave an actual average of 23.5 carats). As is the case with other export values, the unit of valuation is the New Zealand pound. The figures comprise gold in the form of bar, dust, ingot, sheet, concentrates, and ores.

In 1938, of a total export of 151,162 oz., valued at £1,287,421, the West Coast District in the South Island produced 66,114 oz., valued at £557,701, and the Auckland District, 56,743 oz., of £497,806 value. The principal districts from which gold has been produced and exported during the period 1857-1938 are as follows, the quantity and value of the gold exported also being given : Auckland District, 8,216,437 oz., £34,034,005; Otago District, 7,970,465 oz., £32,343,153; West Coast District (South Island), 7,098,491 oz., £29,807,982; and Nelson District, 1,785,729 oz., £7,242,752.

With the departure of Britain from the gold standard in September, 1931, and the consequent depreciation of New Zealand currency in terms of gold, the resultant high prices ruling for gold induced a considerable export of old jewellery or metal obtained therefrom. The New Zealand gold-content of this export in 1937 and 1938 amounted to 1,438 oz. and 1,325 oz. respectively, valued at £10,566 and £9,418.

WORLD'S GOLD-PRODUCTION.

The following figures showing the world's gold-production for the last ten years have been compiled from official sources by the American Bureau of Metal Statistics:—

Year.Fine Ounces.Year.Fine Ounces.
1,92919,673,0221,93427,318,362
1,93020,721,9811,93530,054,210
1,93122,370,7181,93634,230,241
1,93224,305,6831,93735,732,622
1,93325,493,4261,93837,942,685

SILVER.

Nearly the whole of the locally produced silver exported from New Zealand, amounting in value up to the end of 1938 to £3,545,004, has been obtained from the refinement of bullion from the quartz-mines, principally those of the Hauraki goldfield, where gold and silver are found alloyed, the ratio of the two metals in the alloy varying greatly. No other silver-mining operations have been carried out profitably in this country. Estimated production during the last five years has been (fine ounces): 1934, 382,615; 1935, 437,967; 1936, 432,973; 1937, 443,981; and 1938, 357,709.

IRON-ORES.

The two main sources of iron available in New Zealand are the iron-ore deposits of the Onekaka region, Golden Bay, in the Nelson Provincial District, and the ironsands, which are largely concentrated on the beaches of Taranaki, though not limited to that district.

Many attempts have been made to smelt Taranaki ironsand, but commercial success has not attended any of the attempts. Difficulty has been experienced due to the fineness of the sand and also to the presence of titanic acid. Recent developments indicate that the difficulties can be overcome if the sands are used not entirely by themselves, but mixed with a proportion of the Golden Bay or other ores.

Although the whole of New Zealand's iron-bearing sands have not been surveyed, there is no doubt that the total quantity is enormous. A close investigation of the area in the vicinity of Patea has disclosed upwards of 50,000,000 tons. The iron can readily be magnetically separated. The magnetic fraction averages 50-60 per cent. Fe.

Up to the beginning of 1938 the ore bodies at Onekaka had been subject to a surface survey only. During 1938-39 the area has been the subject of an intensive tunnelling and boring programme. At the time of writing—August, 1939—some 13,000,000 tons of ore have been proved, with a likelihood of further quantities as the survey continues. The ore varies considerably from place to place owing to the amount of gangue with which it is mixed. It readily lends itself to washing, and the resultant ore has averaged 40-50 per cent. Fe.

The Iron and Steel Industry Act, 1937, made provision for the reversion to the Crown of privately held licenses and leases over the Onekaka iron-ore bodies. The same Act gave authority for the establishment of a State-operated iron and steel works. Plans have since been made for the construction and operation of the works, which are to be situated at Onekaka. It is anticipated that the new steelworks will be in operation some time in 1942.

TUNGSTEN-ORE.

Scheelite, one of the principal ores of tungsten, was for a number of years mined on a fairly extensive scale in conjunction with gold, the principal gold-scheelite mines being those at or near Glenorchy, Paradise, Macrae's, Stoneburn, Hyde, and Barewood, Otago; and at Wakamarina Valley, Marlborough.

Exports which in 1910-19 averaged £26,000 annually fell to a low figure from 1920 onwards. There was no production for several years on account of the continued low values. Early in 1934, as the result of a substantial rise in the price of tungsten, production was resumed at both Glenorchy and Macrae's. In 1937, twenty-four tons of concentrates, valued at £6,468, were recovered, while in 1938 the yield was forty-five tons, valued at £8,604.

The total quantity of locally produced ore exported to 31st December, 1938, was 2,686 tons, valued at £348,165.

COPPER.

Ores of copper are found in New Zealand in no fewer than thirty-two localities, but the total recorded copper export to the end of 1938 amounted in value to only £19,397. There has been no production for a considerable number of years. Prior to the inauguration of systematic records there was a considerable production from mines on Great Barrier and Kawau Islands. Up to the end of 1917 or thereabouts, the production of copper in New Zealand amounted to 5,032½ tons, valued at £109,878.

MANGANESE-ORE.

Manganese-ore has been found at Otau, Wairoa, Bay of Islands, Purua Bay, Mangapai, Otonga, Waiheke Island, and Taieri Mouth, and has been mined at Tikiora, near the Bay of Islands, and at Waiheke Island. Fluctuating prices prevented expansion of this industry, and there was no production for some years. Manganese is now being mined at Otau, but up to date very little has been produced. The total quantity of locally produced manganese-ore exported to the end of 1938 amounted to 19,162 tons, of a value of £62,171.

CINNABAR.

Cinnabar, the principal ore of mercury, is widely distributed in New Zealand. The most important accumulations are in North Auckland, where for some years efforts were made to place the production on a commercial basis. The deposits are large enough to make this a reasonable expectation. Since mercury-ore bodies are notoriously irregular in form, no reliable estimate of the amount available can be made on the present data.

At Ngawha Springs, North Auckland, production ceased in 1931 owing to difficulties in recovering the mercury and to the substantial fall in price.

A small treatment plant was erected at Puhipuhi during 1934, and 760 lb. of mercury, valued at £190, was obtained during 1938.

The total quantity of mercury of New Zealand origin exported up to the 31st December, 1938, was 87,993 lb., valued at £19,024.

TIN.

Cassiterite in the form of “stream-tin” occurs near Port Pegasus, Stewart Island, where it has been worked to some extent. “Lode-tin” has been found in the same locality. Small quantities of cassiterite have also been detected in the stream-gravels of the Reefton, Greymouth, and Westport districts. Among other localities in which traces of tin occur are Wet Jacket Arm (Otago) and Campbell Island.

PLATINUM.

In the published lists of minerals of New Zealand platinum is stated to occur in several places, associated generally with gold in gravel. It is only from Southland, however, that platinum has been exported.

The Customs Department has not kept any separate record of the quantity and value of platinum entered for exportation, the value of this metal exported being included in a general total of exports by parcel-post, by which means platinum has generally been despatched from the Dominion.

SULPHUR.

Native sulphur in sufficient quantity to be worked profitably occurs in the thermal districts of the North Island, near Rotorua and Lake Taupo, and at White Island.

Sulphur is mostly disposed of locally as fertilizer, but exports of New Zealand origin to the end of 1938 have aggregated £13,241. No work of any importance was done at any of the sulphur deposits during the last five years.

ASBESTOS.

No asbestos was produced from the Upper Takaka field during 1938, but further preliminary work in the way of prospecting, cutting tracks, &c., was carried out by the company holding the area.

COAL.

Coal, varying in grade from anthracite to lignite, occurs in many parts of New Zealand. An estimate of the proved coal resources of New Zealand prepared in 1927 was as follows (millions of tons): Anthracite, very little; bituminous, 206; semi-bituminous, 60; brown, 247; lignite, 150: total, 663. The probable resources are estimated at 1,631,000,000 tons.

The following table summarizes coal-mining operations:—

Year.Output. (Tons.)Persons employed above and below Ground.Tons raised per Person employed Underground.Lives lost.
Number.Per Million Tons raised.Per Thousand Persons employed.
Prior to 192968,762,835....4216.12..
19292,535,8645,497614124.732.18
19302,542,0925,867574145.502.38
19312,157,7565,74549841.850.69
19321,842,0224,636545126.512.59
19331,821,2584,38657073.841.59
19342,060,3154,47863483.881.78
19352,115,1844,23168120.940.47
19362,140,2174,25767841.870.94
19372,277,7994,41769362.641.36
19382,222,0884,563659114.862.41
Totals to date90,477,430....5015.54..

The output of the several classes of coal mined in each inspection district during 1938 is summarized as follows:—

Class of Coal.Northern (North Island).West Coast (South Island).Southern (South Island).Totals.Total Output to the End of 1938.
 Tons.Tons.Tons.Tons.Tons.
Bituminous and subbituminous44,838933,012..977,85051,784,420
Brown717,87950,231344,3041,112,41433,291,193
Lignite..1,146130,678131,8245,401,817
  Totals, 1938762,717984,389474,9822,222,08890,477,430
  Totals. 1937778,498975,228524,0732,277,79988,255,342

A decrease in output of 2.4 per cent. is recorded as compared with the 1937 figure. The 1938 output was produced from 159 mines, 71 of which were working on freehold lands and produced 840,598 tons, or 38 per cent., the remaining 88 mines producing 1,381,490 tons, or 62 per cent., from Crown lands.

In recent years the better use of lower-grade coal in many plants has resulted in the displacement, to a certain extent, of the high-calorific-value coals. Cooperative mining continues to be successfully carried out in the Northern and West Coast districts.

To rehabilitate the industry and to offset the replacement of coal by hydro-electricity and fuel-oil, a search for new fields for coal-utilization is in progress. The most promising avenues in prospect at the moment are the proposed Onekaka Iron and Steel Works and the production of oil from coal by the hydrogenation process or by a synthetic process, and the Government is keeping abreast of all the latest developments. The physical and chemical survey of the coal-resources of the Dominion is being continued in the Grey and Buller districts.

During the year the carbonizing and briquetting plants at Sockburn and Rotowaro and the briquetting plant at Onehunga were in operation. At Rotowaro the plant operated for ten months during 1938, and production during that period was: Raw coal treated, 39,412 tons; coke produced, 19,311 tons; carbonettes produced, 22,500 tons; tar treated, 284,835 gallons; pitch made, 982 tons; oil produced (light oil, 62,700 gallons; heavy oil, 74,790 gallons), 137,490 gallons. At Onehunga the plant operated for the twelve months of 1938 and produced 1,085 tons of briquettes; and at Sockburn a production of 5,889 tons of briquettes was obtained for the twelve months' operations. Results of briquetting experiments have been published in Bulletin No. 39, New Zealand Department of Scientific and Industrial Research.

In order to reduce the economic waste caused by unmarketable slack coal produced at mines, a Coal-mines Amendment Act was passed in October, 1935. The Minister of Mines is given authority to purchase and store slack, to acquire the necessary plant, &c., for its treatment, and to manufacture and sell any fuel or other products. In 1936, at the instigation of the Minister of Mines, the coal-owners in the Waikato district installed screens of a smaller mesh than formerly in use, and practically all slack made at their mines since then has been disposed of. Similarly the Southland and Otago mine owners have also adopted a smaller screen mesh.

No coal-mining legislation was brought forward during the year, but following a conference of all interested parties the Coal-mines Regulations were revised and consolidated.

STATE COLLIERIES.

The Coal-mines Act of 1901 provided for the acquisition and working of State coal-mines in New Zealand under the direct control of the Minister of Mines. At the present time there are three State collieries in operation—the Liverpool, James, and Strongman, the latter having commenced production on 31st January, 1939.

During 1938-39 the Liverpool Colliery produced 131,807 tons of marketable coal, a decrease of 337 tons on the previous year's production. The James Colliery produced 41,434 tons of marketable coal during the year, an increase of 335 tons on the production for 1937-38.

The disposal, inclusive of stocks on hand at the beginning of the year, was as follows:—

Supplied toTons.
Depots46,612
Railways34,256
Other Government Departments8,840
Shipping companies6,487
Gas companies64,864
Other consumers5,932
  Total166,991

The total sales of State coal from the Liverpool Mine for the year amounted to 131,437 tons (value, £165,243), as compared with 128,793 tons (value, £165,752) for 1937-38, an increase of 2,644 tons (decrease in value, £509). The average price realized by the mine on the total sales for the year was £1 5s. 1.7d. per ton, a decrease of 7.2d. per ton on the previous year's average.

The total sales of State coal from the James Mine for the year amounted to 35,554 tons (value, £49,579), giving an average of £1 7s. 10.6d. per ton, an increase of 2s. 7.9d. per ton on the previous year's average. As compared with 1937-38, there was a decrease in quantity of 1,335 tons, with an increase in value of £3,041. The values for both mines include sales made c.i.f. and f.o.b. as well as as f.o.r.

The sales of coal, &c., through the medium of the depots totalled 122,335 tons (value, £209,267), as against 117,821 tons (value, £199,343) for 1937-38. A net profit of £1,774 at the mines and a net profit at the depots, and royalties, &c., of £11,539 made a total net profit of £13,313. The sum of £11,767 was transferred to Sinking Fund Account, leaving a balance of £1,546 in the Profit and Loss Account.

The average number of miners, &c., employed in and about the State collieries during the year ended 31st March, 1939, was 411.

Throughout 1938, steady progress was made in the construction of the stone drives required to extend the James Mine haulage system and to reach the coal-seam in the new colliery, now known as “the Strongman Mine,” in the Nine-mile Creek area. The work was practically completed at the end of 1938, and coal-production commenced in January, 1939.

A large reinforced-concrete bath and change house, capable of accommodating one hundred workmen, has been constructed near the mine entrance; and at Rapahoe a steel storage bin and screening plant, designed by a well-known firm of English mining engineers, is in process of erection.

PETROLEUM.

Drilling for petroleum in recent years has been carried out in Taranaki, Hawke's Bay, Canterbury, Southland, and Westland. Several deep bore-holes in search of petroleum have been drilled, the deepest being at Moturoa, near New Plymouth, which attained a depth of approximately 6,000 ft. Petroleum of good quality but in limited quantity has been proved, but up to the present time boring for petroleum in the Dominion has not produced any considerable flow.

During the year a production of 110,585 gallons of oil was obtained from Moturoa Nos. 1, 2, and 4 wells at New Plymouth; while at Kotuku a total of 1,269 gallons was collected. The total production of crude petroleum to the 31st December, 1938, is estimated at 2,883,650 gallons.

Following the passing of the Petroleum Act, 1937, as amended by section 55 of the Statutes Amendment Act, 1939, considerable interest has been displayed by some of the major oil organizations, and practically all the potential oil-bearing lands in the Dominion were applied for. In all, fifty - nine prospecting licenses have been granted over 10,514 square miles throughout the country. Expert staff and the most modern equipment have been brought from overseas, and active and thorough investigations are being carried out on all licensed areas.

The first well is being drilled at Totangi, near Gisborne, with a modern and efficient plant capable of drilling to a depth of 10,000 ft., and to the end of July, 1939, a depth of 4,560 ft. had been reached.

KAURI-GUM.

Production of kauri-gum has decreased in recent years. The industry suffered a severe setback through the restriction of European markets during the period of the 1914-18 war; and, while some recovery was made in the five years immediately following the war, trade in this commodity has since been at a much lower level.

A system of control of the trade in and export of kauri-gum was provided by the Kauri-gum Control Act, 1925. The Finance Act (No. 2), 1933, provided for the repeal of the Control Act. The property of the Kauri-gum Control Board was vested in the Crown, the Minister of Lands taking over the powers and obligations of the Board. The Internal Marketing Division of the Marketing Department has, since 1937, materially assisted kauri-gum diggers by arranging minimum prices for various types and qualities of gum, and by assisting in the marketing of their product.

During 1938, 2,304 tons of kauri-gum, valued at £103,777, were exported, the total quantity of gum exported to the end of 1938 being 440,174 tons, valued at £23,617,513.

Production of kauri-gum can be gauged approximately by export figures or more accurately by the following figures showing kauri-gum received at Auckland from the gumfields: 1931-32, 3,004 tons; 1932-33, 2,229 tons; 1933-34, 2,804 tons; 1934-35, 2,858 tons; 1935-36, 2,392 tons; 1936-37, 2,748 tons; 1937-38, 2,473 tons; and 1938-39, 2,296 tons. The assets of the Kauri-gum Industry Account have been realized, and the account has been abolished by statute.

PHOSPHATES.

At Clarendon and Milburn, Otago, considerable deposits of phosphate rock were discovered in 1902 and actively worked up to 1924. A thin bed of phosphatic rock has been identified from outcroppings at Kaikoura and at Amuri Bluff, in Marlborough. A similar bed occurs near Port Robinson. Phosphatic nodules are found in the Kaikorai Valley (near Dunedin), at Weka Pass (North Canterbury), and elsewhere. A limestone containing 10.6 per cent. of tricalcic phosphate occurs in the neighbourhood of Onewhero, Waikato district. Other districts where phosphatic material of good quality is found, though, so far as is known, not in commercial quantity, are Amberley, Dipton, Oamaru, Waimate, Wangapeka, Clarence Valley, Tutira Block (Mangakaruru Survey District, Hawke's Bay), and Whangarei.

The development of the New Zealand deposits has no doubt been retarded by the import of phosphate from Nauru Island, reference to which is made in Section XLVII of this volume.

GREENSTONE.

The mineral nephrite, the “pounamu” of the Maori, a deep-green semi-transparent mineral with dark opaque patches, more popularly known as one of the varieties of “greenstone,” whenever observed in situ occurs as rounded segregations in talc or talc-serpentine rocks. These segregations vary up to 2 ft. or even more in lateral dimensions. As a rule they average less than 1 ft. in width. So far as is known, the mineral has been found in its original locus only in the Griffin Range, Turiwhate Survey District, North Westland.

BUILDING AND ORNAMENTAL STONES.

New Zealand possesses a great variety of handsome and durable building-stones scattered throughout both Islands. In Auckland there are basalt, andesite, porphyrite, and quartz biotite-diorite, known in the building trade as Coromandel “granite,” a hard, coarsely crystalline rock, capable of taking a fine polish. In addition there are the Whangarei limestone and the Raglan stone, the former an excellent building-stone, the latter a good freestone. Taranaki has the hornblende andesites of New Plymouth and Mount Egmont, and Wellington the andesites of Ruapehu.

In Nelson there are the granite of Tata Island and Tonga Bay and the marble or crystalline limestones of the Pikiruna (Riwaka) Range. The Parliamentary Buildings at Wellington are constructed of this marble. West Nelson and Westland are well provided with granites and limestones of good quality, well adapted for building purposes; and in the Griffin Range, North Westland, there is found an abundance of finely coloured serpentine, unsurpassed as a decorative stone. Building-stone is scarce in Marlborough, but Canterbury is well supplied, having an abundance of Lyttelton bluestone (andesite) and Mount Somers stone, a limestone of exceptional quality. In Otago there is an abundance of excellent building-stone, ranging from the well-known Oamaru stone to the granite, gneiss, and limestones of Fiordland, all close to deep water. In Southland there are the so-called Ruapuke “granite,” the norite of the Bluff, and the granites of Stewart Island.

The following table relates to quarries under the Stone-quarries Act for the year 1938:—

Provincial District.Number of Working Quarries under the Act.Number of Persons ordinarily employed.Output of Stone.
Stone or Gravel for Macadamizing or Ballast.Stone for Harbour-works.Building or Monumental Stone.Limestone for Agriculture.Limestone for Cement or Mortar.Miscellaneous.Value at Quarry.
   Tons.Tons.Tons.Tons.Tons.Tons.£
Auckland2661,5981,089,487..4,836110,037219,11846,025320,825
Hawke's Bay2411628,004....29,998....7,541
Taranaki2214343,4613,004..8,533....16,642
Wellington3425095,9073,226..32,440..134,23831,645
Nelson         
Westland218121,05619,377..10,15560,449..17,332
Marlborough         
Canterbury         
Otago— Otago portion Southland portion62479165,61029,56620,503290,54952,888..161,310
  Totals, 19384292,6671,443,52555,17325,339481,712332,455180,263555,295
  Totals, 19373782,1171,156,87652,24635,731410,770268,19064,708444,837

The Stone-quarries Act, 1910, with amendments, applies to every place, not being a mine, in which persons work in quarrying stone and any part of which has a face more than 15 ft. deep, and also to any tunnel in the construction of which explosives are used. The Act, however, does not apply to any Government operations, or any road or railway cutting, or excavations for buildings.

PERSONS ENGAGED IN MINING AND QUARRYING.

The following table shows the number of persons employed in or about mines and stone-quarries during each of the last five years:—

1934.1935.1936.1937.1938.
Metalliferous mines6,5526,7505,1893,9173,046
Coal-mines4,4784,2314,2574,4174,563
Stone-quarries1,8182,0021,9812,1172,667
Totals12,84812,98311,42710,45110,276

STATE AID TO MINING.

State aid to mining in this Dominion is given in several forms—viz., (1) Geological survey and bulletins; (2) financial aid to prospecting; (3) Government prospecting-drills; (4) schools of mines; (5) subsidized roads to mining-fields.

GEOLOGICAL SURVEY.

Since the first discovery of coal and of precious metals in New Zealand the Government has employed skilled geologists, who have reported, after examination, on all the known mineral deposits.

During the 1938-39 field season the Geological Survey carried out systematic mapping and other investigations in the Amuri, Greymouth, and Glenorchy districts. Geophysical examinations were also made at Top Valley, Reefton, Kotuku, and Cromwell. In addition, officers made official visits to other parts of New Zealand, several of them being to Taranaki and Takaka, where iron-ore occurs in quantity.

The mapping of the Amuri Subdivision, begun several years ago and stopped because of more urgent work, was continued this year. The district contains large quantities of limestone and some low-grade phosphate.

The detailed survey of the Greymouth Coalfield, in which the most valuable coking and gas coals of the Dominion occur, was considerably hampered by persistent bad weather. Most of the seams now being worked in the Greymouth and Westport areas were systematically sampled. Estimates of the amounts of extractable coal were made, but it is clear that the quantity of available coal in the field can be accurately estimated only after extensive boring.

The mapping of the Glenorchy district, which contains quartz veins carrying gold and scheelite, was finished this season, a work made possible in this extremely rugged mountainous region only with the aid of aerial photography.

Geophysical studies were continued in the Reefton district, and the rock structures beside the productive Blackwater Lode were traced north beyond Big River. It is hoped that surface prospecting will later lay bare workable quartz veins in the wide belt of country between Waiuta and Merrijigs, in which profitable lodes have so far not been found. Some geophysical work was also carried out in Top Valley, Marlborough, and at Bendigo, near Cromwell, Otago. In the former locality, what is believed to be part of the Jubilee Lode was located; some direct prospecting is required. Further seismic investigations near the oil-seepages at Kotuku tended to confirm the presence of a low dome in the unfavourably thin Tertiary beds of that region.

In addition to several short papers, two areal bulletins, dealing respectively with the coal-mining area of Kaitangata and the gold-mining district of Naseby, have been printed.

DOMINION LABORATORY.

The Dominion Laboratory has, as in past years, carried out the testing and analyses of mineral samples and mine gases; prospectors' samples from all parts of the Dominion have been examined for gold and silver and occasionally for other metals, notably tungsten.

FINANCIAL AID TO PROSPECTING.

As an aid towards the development of the mining industry the Government offers varied and liberal assistance to prospectors in the form of subsidies, expert and technical advice, use of plant, &c. Subject to the provisions of the Mining Act, the holder of a valid minor's right is entitled to prospect for gold or any other metal or mineral (except coal) on any Crown land. He may also obtain authority from the Governor-General to prospect on Native land, and he may also prospect on private land with the consent of the owner. Wardens in mining districts and Commissioners of Crown Lands in other districts may, with the consent of the Minister of Mines, grant prospecting licenses for coal.

During the year ended 31st March, 1939, a total of £3,703 was expended by the Mines Department in subsidies for prospecting (exclusive of £4,249 in connection with the prospecting schemes of the Employment Division of the Labour Department), and 53 persons were given employment thereby.

Up to the 31st March, 1939, the Labour Department (Employment Division) continued its assistance to the gold-mining industry, and expenditure in this direction from the Employment Promotion Fund for the financial year amounted to £50,271. In addition to this expenditure, £13,752 was advanced to gold-mining companies by way of loans.

During the year there was a steady decrease in the numbers of men engaged in gold-prospecting work under the Labour Department's ordinary subsidized gold-mining scheme, there being only 343 men so engaged during March, 1939, as against 533 in April, 1938. The technical and field staffs were also considerably reduced, and during the latter half of the year only twenty-five officers were employed in supervising the activities on the field.

Gold won by subsidized prospectors during the year was approximately 3,350 oz.

The investigation and development of the Reefton Goldfields, which was commenced in 1936, has progressed steadily, work now being confined to the opening-up and extension of old workings in the Perseverance and Golden Treasure Mines and further driving and crosscutting in this area. Expenditure for the year on this undertaking was £7,661, contributed equally by the Labour and Mines Departments.

At the close of the financial year the Labour Department released control of the gold-mining scheme, and on the 1st April, 1939, its administration was taken over by the Mines Department.

GOVERNMENT PROSPECTING-DRILLS.

Prospecting-drills of various types suitable for the conditions existing in the Dominion are lent to bona fide prospectors. A monthly rental is charged for the plant, and the hirer is required to maintain it in good order and condition. Working-expenses are also paid by the hirer, including renewals, &c., and the loss on carbons.

The hirer is required to furnish to the Mines Department weekly reports of boring results.

Considerable use was made of the Government prospecting-drills during 1938, an aggregate of 14,072 ft. being drilled in 341 holes for eleven parties.

SCHOOLS OF MINES.

For the education of prospectors and mining students seven schools of mines are subsidized by the Government, in addition to the Otago University School of Mines. The schools of mines are situated at Thames, Waihi, Huntly, Westport, Reefton, Runanga, and Ohai. Six scholarships, tenable for four years, are offered annually by the Mines Department.

The expenditure on these schools by the Government during the year ended the 31st March, 1939, was £3,460, as against £3,910 during the previous year.

SUBSIDIZED ROADS.

The expenditure in the form of subsidies and direct grants upon roads on gold-fields during the year ended 31st March, 1939, amounted to £5,221, as compared with £16,869 during the previous year.

LEAFLETS.

Another form of Government assistance to mining consists of the publication of several leaflets as a guide to the prospector. These leaflets may be obtained on application to the Mines Department, and deal with: (a) The description of fields which may be considered to warrant further examination for gold; (b) the description of the best ways of seeking for and of saving gold; (c) a brief summary of the statutory procedure to be followed to obtain a right to prospect or mine for metals or minerals under the Mining Act; (d) notes on the taking of samples of mineral deposits and the valuation of mining prospects; (e) notes for drilling and a method of calculating gold value of alluvial deposits. A treatise entitled “Goldmines of the Hauraki District,” written by Mr. J. F. Downey, M.I.M.M., formerly Inspector of Minos, Waihi, was published during 1935, and should prove of great value to all persons interested in mining in the Thames and Coromandel districts. The treatise is additional to the one by the same author entitled “ Quartz Reefs of the West Coast Mining District, New Zealand,” published in 1928.

BOARD OF EXAMINERS.

The Board of Examiners annually conducts examinations of candidates for certificates as first-class and second-class mine-managers, battery-superintendents, and dredgemasters under the Mining Act, and for certificates as first-class and second-class mine-managers and mine-surveyors under the Coal-mines Act. Examinations of candidates for certificates as underviewers and firemen and deputies under the Coal-mines Act are held periodically when necessary. No candidate is permitted to present himself for examination unless he holds an authority from the Secretary to the Board of Examiners. Fifty-nine certificates were issued in 1938.

SICK AND ACCIDENT AND COAL-MINERS' RELIEF FUNDS.

As required by the Coal-mines Act, 1925, the owner of every coal-mine contributes ½ d. per ton on all coal sold, for the relief of coal-miners who may be injured while working, and for the relief of the families of coal-miners who may be killed or injured.

Under that Act the Miners' Sick and Accident Funds were as from the 1st April, 1926, abolished and incorporated in the Coal-miners' Relief Fund. All accident relief payments are now made from the Coal-miners' Relief Fund, which is administered by the Public Trustee with the assistance of local committees.

The income from the ½ d. per ton contribution was £4,636 during the twelve months ended 31st March, 1939, as compared with £4,597 during 1937-38, and interest earnings brought the total receipts to £5,530 and £5,528 for the respective years. The total expenditure for the year ended 31st March, 1939, amounted to £7,425 as against £5,301 for the previous year. The amount standing to the credit of the fund as at the 31st March, 1939, was £24,934, as against £26,829 twelve months earlier.

MINERS.

Information concerning monetary benefits for miners incapacitated by miner's phthisis or any other occupational disease or heart disease contracted while working as a miner in New Zealand appears in Section XXV (Pensions, Social Security, Superannuation, &c.).

Chapter 22. SECTION XXII. — FACTORY PRODUCTION.

HISTORICAL.

IN the early days of colonization the development of the potential farming resources of the colony was the major aim of economic enterprise, while the elusive rewards of alluvial-gold mining provided the dominant motive of immigration between the “sixties” and “eighties” of last century. Nevertheless, the very remoteness of the colony rendered necessary the growth of manufacturing enterprises to cope with the needs of a rapidly increasing population, and the earliest statistical records contain evidence of the growing importance of such industries as clothing and boot manufacturing, grain-milling, and printing. Again, the extractive industries, such as sawmilling and flax-milling, were of considerable importance even in the earliest days of settlement. In addition to providing for local needs, the sawmilling industry rapidly grew into a major export industry, a lively timber trade with Australia developing. Flax-milling also became an export industry of some importance, while it is also of interest to record that untreated flax, spars, and whale-oil were the earliest exports—many years before permanent settlement by whites took place.

With the growth of sheep-raising, fellmongery and wool-scouring became a major industry, and by the “eighties” this industry was exceeded only by sawmilling in respect of the value of factory output, while another milestone in the history of the Dominion's factory production was the shipment, in 1882, of the first cargo of frozen meat to the United Kingdom. The advent of refrigeration widened the scope of farming enterprise, and at the same time occasioned a rapid development of factory production, in that industries devoted to processing farm products became of prime importance. The output of meat-freezing works increased from £543,878 in 1885 to £4,928,545 in 1905, being first in order of importance among factory industries in the latter year. Butter and cheese factories (almost exclusively of co-operative ownership) became widely established in the dairying districts, the aggregate value of output of these factories increasing from £43,094 in 1885 to £2,581,639 in 1905. The value of processed farm products still accounts for a largo proportion of the total factory output of the Dominion. In respect of “added value”—i.e., value created by factory processes—the “true” manufacturing industries are, of course, of considerably greater importance in the aggregate than the industries devoted to the processing of farm products.

The growth of industrial enterprise in the Dominion has been dominated to a large extent by the preponderant position of the farming industries. This is but natural, for industrial expansion is limited by the size of the available market. Whereas the Dominion's live-stock products can successfully compete in overseas markets, the purely factory industries find it difficult to compete with the products of large-scale enterprises established in the more densely populated countries, and are, consequently, dependent on a share in the local market in competition with imports. A factor of importance in this connection has been the progressive speeding-up of sea transport, which has favoured the export industries, and, at the same time, intensified overseas competition with industries manufacturing products for Dominion consumption.

Historical records contain ample evidence that the Legislature has been at all times cognizant of the importance of encouraging manufacturing enterprise. During the early days of colonization bounties were offered in many instances to aid the establishment of new industries, while, in the development of the tariff policy, due regard has been given to the protection of local manufactures. The immigration of experienced factory workers was an important phase of immigration policy during the long period when a lack of skilled labour hampered industrial development. Governmental interest in the furtherance of manufacturing has also been manifest in the appointment of Commissions to inquire into the possibilities of industrial expansion in general and in specific industries. Again, the activities of the Department of Industries and Commerce are closely connected with the development of manufactures, while research into manufacturing processes and potentialities forms an important part of the functions of the Department of Scientific and Industrial Research. With the growth of economic nationalism abroad the necessity for planning industrial activity in such a manner as to achieve a more balanced economy has become increasingly apparent, and, to further this end, a Bureau of Industry was established early in 1936 under the ægis of the Minister of Industries and Commerce. Reference to the Industrial Efficiency Act, 1936, which legally constitutes the Bureau of Industry, together with a résumé of the operations of the Bureau, will be found in Section XLVI under the caption “Licensing of Industries.”

STATISTICS OF FACTORY PRODUCTION

Statistics of factory production were collected in New Zealand from 1867 to 1916 in conjunction with the population census; and, commencing with the year 1918-19, the collection became an annual one. An analysis of the statistics for recent years, with a brief summary covering the period 1910-11 to 1937-38, is given in the following pages. More complete statistics will be found in the annual Statistical Report on Factory and Building Production. An account of legislation affecting wages and working conditions of factory employees is included in the section of this Year-Book entitled “Labour Laws and Allied Legislation,” while a further section deals with the subject of accidents in factories. In addition to the data contained in the following pages on the subject of employment in factories, an analysis of monthly data as to factory employment is included in the special section on “Employment and Unemployment.”

It should be noted that in New Zealand the production year does not coincide with the calendar year. In the case of many factory industries a March year is used as the basis of accounting, &c., while in other instances the production year fits more closely to a June year.

A study of the statistics of factory production, particularly those for recent years, reveals that the establishment of new industries and the growth of relatively new industries have been striking characteristics of the pattern of factory-production activity in recent years. The growth of the motor-assembling and allied industries has been an outstanding example, while, more recently, notable advances have been made in a number of industries—e.g., hosiery-manufacture, radio-assembling, confectionery-making, tobacco-manufacturing, and cigarette-making. These developments have increased the occupational range of factory employment, while assisting materially in the substantial recovery of the factory industries from the effects of the depression period. It has become quite evident that the expansion of. our industries is no longer limited to those lines where ready access to raw materials is the deciding factor, and that local manufactures are now catering for the Dominion's needs in many products which were formerly almost exclusively imported.

Evidence is also provided by recent statistics that the vast supplies of hydroelectric power now available are being used in industry to an increasing extent, the reticulation of the Dominion (now almost completed) offering a ready solution of one of the major problems of industrial expansion—the provision of ample supplies of cheap power.

INDUSTRIES COVERED BY STATISTICS.

Under the regulations authorizing the collection of statistics of factory production a “factory” is defined as an establishment engaged in the manufacture, repair, or preparation of articles for wholesale or retail trade or for export, which employs at least two hands or uses motive power, with the exception of the following, which are expressly excluded: Bakeries, butcheries, laundries, smithies, waterworks, shops engaged in retail trade only, and farmers or others using motive power for their own individual and private use. The following are, however, required to furnish returns even though employing less than two hands and not using motive power: Tanneries; bacon, butter, cheese, soap, or candle factories; brickyards; and limeworks.

The definition is fairly comprehensive, and includes such industries as, for instance, jewellery and watch repairing and boot, shoe, and saddlery repairing. Small establishments thus engaged were at one time included in the statistics, but they are now excluded unless they are also engaged in actual manufacture and have at least two persons engaged or use motive power.

Other classes of establishments formerly covered by the statistics but excluded from 1921-22 onwards are those engaged in dressmaking and millinery (unless manufacturing wholesale for sale in retail shops), bespoke tailoring, and establishments engaged in tea blending and packing, bottling liquor, stone quarrying and crushing, asphalting, or monumental masonry. The latter industries were excluded to bring the statistics into line with those of other British countries. In addition, returns are not required from plumbers or from builders who make joinery solely for their own building contracts. Builders are, however, required to furnish annual returns of building and construction, which are dealt with in the next section.

It should be noted that factory-production statistics do not cover, and do not purport to cover, all establishments registered as factories in the Dominion. “One man” businesses are excluded with the exception of tanneries, bacon, butter, cheese, soap, or candle factories, brickyards, or lime-works; some small repair-shops (as explained previously) are excluded even though they may employ two or more hands. The effect of these limitations in the scope of the statistical inquiry is seen from the fact that while for the year 1937-38 17,559 factories, employing 123,551 hands, were registered under the Factories Act, only 5,924 factories (with, however, 102,344 persons engaged) were covered by the statistics of factory production.

GENERAL SUMMARY.

The statistics in the table following illustrate the growth of New Zealand's factory production to its present standing:—

Year.Number of Establishments.Persons engaged.Salaries and Wages paid.Cost of Materials."Other Expenses" (i.e., Expenses of Operation other than Salaries and Wages and Cost of Materials).Value of Output.Added Value.

* Productive employees only.

† Not available.

   £££££
1910-113,48345,924*4,786,698*18,782,92929,317,02310,534,094
1915-163,75548,744*5,791,704*30,197,78443,034,03312,836,249
1920-214,02269,68113,172,99652,933,49477,828,01324,894,519
1924-254,53877,18314,945,97551,337,11582,479,37831,142,263
1925-264,79478,70816,153,82251,668,1008,395,92182,358,85130,690,751
1926-275,07878,61316,255,17749,344,4428,646,77980,334,60130,990,159
1927-285,15678,62016,053,21054,558,1678,792,72185,059,79930,501,632
1928-295,12680,61816,291,21259,136,5529,330,05190,478,23231,341,680
1929-305,16882,86116,846,28658,484,2459,954,86190,757,98132,273,736
1930-315,19477,91415,617,05248,458,3569,388,62677,745,24929,286,893
1931-324,96968,69712,642,93542,343,0788,392,58766,588,74424,245,666
1932-334,99368,92112,048,14842,600,4908,222,59566,109,45523,508,965
1933-345,02872,65112,106,50046,919,1938,257,26171,770,87224,851,679
1934-355,27079,35813,244,37352,084,7419,002,45679,324,47327,239,732
1935-365,53686,58814,844,36759,940,3939,606,82490,014,74830,074,355
1936-375,72896,40118,333,07770,668,07510,751,343105,941,72235,273,647
1937-385,924102,34420,981,58775,084,17310,827,593113,691,55638,607,383

Factory production climbed fairly steadily from 1910-11 until a relatively high level was attained in 1929-30, when 82,861 persons were covered by the statistics, their salaries and wages amounting in the aggregate to almost £17,000,000. The value created by factory processes was approximately £32,500,000. As a concomitant of the world-wide depression in trade and industry the triennium 1930-31 to 1932-33 witnessed a decided fall in factory production. The year 1933-34, however, saw the commencement of a gradual recovery in industrial conditions as evidenced by the statistics, while in 1935-36 a complete recovery from the depression period in factory industries was recorded. The statistics for the year 1936-37 set new record high levels for factory production, but these were surpassed in the year 1937-38, the outstanding features of the statistics being that the number of persons engaged in industries covered by the returns exceeded for the first time the 100,000 mark, and the value of output aggregated £113,700,000.

Establishments reporting operations in 1937-38 numbered 5,924, or 196 more than in 1936-37 (5,728). The number of persons engaged increased by 5,943, or 6.2 per cent., while the salaries and wages paid increased by £2,648,510, or by 14.4 per cent. Materials used cost £75,084,173, an increase of £4,416,098, or 6.2 per cent. above the 1936-37 total. The value of output rose by £7,749,834 (a 7.3-per-cent. increase on the 1936-37 figure) to a record total of £113,691,556.

In making use of the following summary by provincial districts for the year 1937-38 it is necessary to keep in mind the differences in size and population of the respective provincial districts (vide section on “Population”).

Provincial District.Number of Establishments.Persons engaged.Salaries and Wages paid.Cost of Materials.Other Expenses of Operation.Value of Output.Added Value.
   £££££
Auckland1,94335,9487,281,62530,612,7314,009,37244,232,57813,619,847
Hawke's Bay3053,253727,8323,185,005435,4114,477,4901,292,485
Taranaki3293,060775,9926,318,690429,7277,659,8171,341,127
Wellington1,26224,3915,104,32714,947,2422,342,87224,281,1789,333,936
Marlborough76477106,293427,60756,420595,669168,062
Nelson1681,620336,178871,862217,5021,523,814651,952
Westland1191,823455,899292,691265,5301,121,711829,020
Canterbury86916,4423,175,1299,929,6851,504,94015,748,6975,819,012
Otago—       
Otago52411,4552,151,1605,252,7241,075,7779,238,8273,986,103
Southland3293,875867,1523,245,936490,0424,811,7751,565,839
Totals5,924102,34420,981,58775,084,17310,827,593113,691,55638,607,383

It will be observed that the Auckland Provincial District, the largest in population and area, shows the highest figures for factory production. It may be noted that this district produces more than half of the total dairy output of the Dominion. Wellington Provincial District comes second in factory production, Auckland and Wellington combined contributing approximately 60 per cent. of the Dominion total. Their combined population represents 55 per cent. of the Dominion total.

ESTABLISHMENTS AND EMPLOYEES.

The industries contributing chiefly to the increase of 196 in the number of establishments reporting operations in 1937-38 were—Coachbuilding and motor engineering, 89; furniture, 43; clothing, 21; concrete block, &c., 18; electrical engineering, 10; sawmilling, 7.

The following table shows the average (monthly) numbers of wage-earners and of total persons engaged in each class of industry, and the number of establishments operating, during the year 1937-38:—

Class of Industry.Number of Establishments.Wage-earning Employees.Total Persons engaged.
M.F.M.F.
Animal food5459,91825711,945652
Vegetable food1382,1882,1422,6662,329
Drinks, narcotics, and stimulants2621,8037482,330913
Animal matters (not otherwise classed)75793159983204
Working in wood6668,869269,979136
Vegetable produce for fodder2040..636
Paper manufactures21306367368398
Heat, light, and power1443,691194,929418
Processes relating to stone, clay, glass, &c.3032,959133,486102
Metals other than gold or silver5016,5973627,665645
Precious metals421841523026
Books and publications3704,8451,4676,2401,913
Ornaments and minor art products471543019437
Designs, medals, type, and dies19138217712
Machines, tools, and implements1251,6701911,957282
Carriages and vehicles1,3077,770379,435474
Harness, saddlery, and leather-ware1351,0042441,248285
Ships, boats, and their equipment67785475933522
House-furnishings4102,5123913,007475
Chemicals and by-products1121,3123531,667470
Textile fabrics191,0511,7041,1821,736
Apparel5053,30313,1854,19913,723
Fibrous materials47769177856192
Miscellaneous44340205412243
  Totals5,92463,00122,56976,15126,193

The distribution of the sexes among the persons engaged shows a considerable preponderance of males. The number of females per hundred males in each of the five years ending 1937-38 has been: 31, 33, 33, 34, and 34.

In the smaller districts there are few industries employing female labour to any great extent; but the male preponderance is considerably smaller in the four main districts, where female labour is in greater demand. In Otago the excess of males is less than in any other district, due to the comparative importance of its woollen-milling industry. Women and girls are chiefly found in the following industries: Clothing manufacture, 11,016; biscuit and confectionery making, 1,921; printing and publishing, 1,913; woollen-milling, 1,648; boot and shoe manufacturing, 1,418; hosiery-making, 931; tobacco-preparing and cigarette-making, 621.

The following figures show that in 1937-38 for every ten wage-earners there was one proprietor (actively engaged), manager, or overseer.

Group.1936-37.1937-38.
Number of Persons.Per Cent. of Total.Number of Persons.Per Cent. of Total.
Proprietors actively engaged2,5692.72,6862.6
Managers, overseers, &c.5,2085.45,4525.3
Accountants, clerks, &c.8,6078.98,6368.5
Wage-earning employees80,01783.085,57083.6
  Totals96,401100.0102,344100.0

An interesting classification of the establishments, according to the number of persons engaged, for the years 1924-25, 1929-30, and 1934-35 to 1937-38. is—

Year.10 or under.11-20.21-50.51-100.Over 100.Totals.
Number of Factories.
1924-252,9727205701551214,538
1929-303,4768005911641375,168
1934-353,7257644901431425,270
1935-363,8367905831691585,536
1936-373,8588426671981635,728
1937-383,9568647371921755,924
Number of Employees.
1924-2512,65810,69018,06711,09424,67477,183
1929-3015,47411,78517,97711,65825,96782,861
1934-3514,90111,32115,3099,71628,11179,358
1935-3615,55411,60017,62411,42830,38286,588
1936-3715,95312,44420,28113,53134,19296,401
1937-3816,51812,73122,72712,97137,397102,344

The very small establishments have more than held their own during the period, while there is definite evidence of a swing-over from the group covering moderately-sized establishments to the larger-sized group. Taken as a whole, the figures do not afford evidence of any marked change in the average size of the industrial unit. The advance in the smallest-sized group may be attributed largely to the growth of the motor industry and the consequent establishment of small repairing concerns throughout the Dominion.

The classification according to the number of employees shows clearly that, judged according to the standards of highly industrialized communities, the average size of the industrial unit in New Zealand is small.

SALARIES AND WAGES.

The figures relating to the amounts paid as salaries and wages include amounts paid as bonuses and overtime. Figures illustrative of the rise in the aggregate amount paid in salaries and wages will be found in the first table of this section.

The amounts received by male and female employees, and the average amount received per employee of each sex, as recorded in the last five collections, are set out below:—

Year.Males.Females.Both Sexes.
Total.Average.Total.Average.Total.Average.
 ££££££
1933-3410,611,1611921,495,3398612,106,500167
1934-3511,602,9831941,641,3908413,244,373167
1935-3613,046,1052001,798,2628414,844,367171
1936-3716,019,7702222,313,3079518,333,077190
1937-3818,334,0842412,647,50310120,981,587205

Owing to the fact that employees who are engaged for part of the year only cannot be excluded from the figures in computing the averages, and, further, as it is not practicable to take into consideration other factors which may affect their accuracy, the averages shown cannot be regarded in other than a general way.

The table following shows the total salaries and wages paid in each class of industry during the year 1937-38.

Class of Industry.Males. £Females. £
Animal food3,307,24573,451
Vegetable food602,384213,859
Drinks, narcotics, and stimulants598,483105,321
Animal matters (not otherwise classed)241,74921,409
Working in wood2,289,40715,149
Vegetable produce for fodder11,908798
Paper manufactures97,08738,494
Heat, light, and power1,374,13754,852
Processes relating to stone, clay, glass, &c.814,07810,671
Metals other than gold or silver1,669,50965,677
Precious metals52,5712,504
Books and publications1,673,385225,677
Ornaments and minor art products35,5953,218
Designs, medals, type, and dies48,6871,372
Machines, tools, and implements406,33927,399
Carriages and vehicles2,073,94046,340
Harness, saddlery, and leatherware279,19227,405
Ships, boats, and their equipment237,72349,856
House-furnishings639,34452,856
Chemicals and by-products442,37050,018
Textile fabrics263,479183,200
Apparel918,3961,339,963
Fibrous materials169,72217,550
Miscellaneous87,35420,464
Totals18,334,0842,647,503

Special returns as to employees and wages in a selected week are collected each year. The period covered is the nearest normal week to 31st March, and the data collected include the number of employees engaged at each wage-rate, as well as the total employees and the total earnings during the specified week. Working proprietors, managers, overseers, accountants, and clerks do not come within the scope of the inquiry, which covers wage-earning employees only, and out-workers, if any. All productive employees are covered, irrespective of age or sex, and the figures are therefore inclusive of many juvenile workers receiving low wages. The following summary table shows totals and averages for all factory industries for each of the last ten years.

Year.Total Wage-earning Employees.Earnings during Specified Week.
Total.Average.
Males.Females.Males.Females.Males.Females.
   £££s.d.£s.d.
192954,65113,696244,54327,0514961196
193057,31714,823262,20027,88041161177
193148,41612,776208,63322,94446211511
193242,29113,143162,69522,81231701149
193343,62113,659160,65522,70531381133
193446,30515,184163,30324,26531061120
193551,80417,204183,77026,958310111114
193657,63719,070217,40330,60531551121
193764,88322,452287,85142,1294891176
193867,08322,059317,10342,28641461184

Certain important reservations must be made in drawing any conclusions from the above table, which must be considered as being strictly limited in its application.

Since the figures relate to a single week, an unduly late or early season, abnormally wet weather, &c., would affect the usefulness of either the number of workers or their earnings as indexes of the volume of employment. Further, the figures given are for actual earnings during the week in question and not for nominal wage-rates. Variations in the amount of overtime or short-time worked may cause appreciable changes in average earnings even though wage-rates remain unchanged. For example, in 1927-28, 1,660,298 hours of overtime were worked and 1,610,991 hours of short time. In 1937-38 overtime had increased to 3,326,663 hours and short time had fallen to 1,208,703 hours, while, in addition, statutory amendments made to the Factories Act (see Section XXXVIII) in June, 1936, had the effect of increasing rates of pay for overtime, and thus increasing the ratio of earnings to hours of overtime worked during the specified weeks in 1937 and 1938 in comparison with the figures for previous years.

The following table shows the distribution of employees within the various wage groups for the specified weeks covered by the returns for 1928 and 1938:—

Weekly Rate of Wages.Males.Females.
1928.1938.1928.1938.
Under 20s.1,1301,7441,3912,116
20s. and under 25s.1,5741,8561,4401,979
25s. and under 30s.1,0791,5901,3542,052
30s. and under 35s.1,7782,1081,2641,598
35s. and under 40s.1,3281,5369741,803
40s. and under 45s.9491,6289153,337
45s. and under 50s.1,1151,1902,9835,304
50s. and under 55s.7571,0161,1741,747
55s. and under 60s.4325607331,006
60s and under 65s.918980445578
65s and under 70s.484358182193
70s. and under 75s.855422125107
75s. and under 80s.7625205837
80s. and under 85s.4,2131,8807380
85s. and under 90s.4,5142,8301826
90s. and under 95s.6,6276,7592525
95s. and under 100s.6,2406,355812
100s. and under 105s.5,5747,9022927
105s. and under 110s.3,5355,43466
110s. and under 115s.3,1087,877105
115s. and under 120s.1,1062,98013
120s. and under 130s.2,7414,661510
130s. and under 140s.1,0271,58972
140s. and under 160s.1,5241,91334
160s. and over7251,38612
Totals54,09567,08313,22422,059

The statistics of distribution of wage-rates just quoted, and the more detailed analysis published in the Annual Statistical Report on Factory Production, show that marked changes have occurred in wage distribution, a fact which materially affects the significance of statistics of average earnings. Obviously, if a greater proportion of juvenile workers is employed in any particular year this will tend to bring down the general average rate of earnings—despite the fact that rates of wages for individual classes of factory work actually may have been raised. A relatively high increase in the number of young women at starting rates of pay must obviously retard the rate of increase in average earnings of females as a whole; in fact, it would be quite possible for the average earnings of females in factories actually to fall through the influence of this factor even though wage-rates for individual classes of work were rising. On the other hand a slackening in juvenile employment would, other things being equal, raise the average earnings of females employed in factories. Similar considerations apply—though not, in practice, with equal force—in the case of male factory workers.

As indicated in a previous paragraph, the effect of changes in wage-rates on average earnings may be observed by shifts in the distribution of wage-rates caused by changes in the age constitution of workers. The table of distribution of wage-rates is thus more informative as an indication of wage-changes than are figures of average earnings, since, if desired, the lower groups comprising mostly juveniles can be excluded from consideration.

MOTIVE POWER.

A supply of cheap motive power is essential for industrial development. New Zealand industries have in the past been somewhat handicapped in this respect, long railway hauls and, in some instances, sea-carriage being involved in the transport of coal from the mines to the factories. The difficulties in the way of obtaining a plentiful supply of cheap motive power have been met by the development of hydro-electric schemes, for which New Zealand is topographically well suited. The State has in recent years developed this phase of the Dominion's resources, and in doing so has provided a margin of power for attracting special industries depending on a supply of cheap motive power, as well as meeting present demands.

The following table shows the numbers and aggregate horse-power of each class of engine used in factories for the years 1921-22, 1927-28, and the last three years:—

Class of Engine.1921-22.1927-28.1935-36.1936-37.1937-38.
Steam No.2,2661,9111,5771,5611,501
          H.P.101,083125,792142,227141,001153,988
Coal-gas No.519252908576
          H.P.10,2957,7953,7553,6433,330
Suction-gas No.237148776045
          H.P.14,1818,7235,1423,9193,528
Oil No.389328478550564
          H.P.5,46011,99433,11938,33639,514
Electric No.5,23512,42821,02223,15125,626
          H.P.49,571111,942159,869170,263181,757
Water No.222255224218262
          H.P.39,104150,859389,055387,387450,633
    Totals No.8,86815,32223,46825,62528,074
          H.P.219,700417,105733,167744,549832,750

It should be borne in mind that the figures relating to the horse-power represent the indicated horse-power of the engines installed. This may be, and probably is, in many cases quite a different thing from the actual horse-power used. Attention is also directed to the fact that the statistics include the horsepower of turbines, pelton wheels, and other engines used in the generation of electric current. A rapid advance in the electric-supply industry since 1921-22 is indicated by the figures given above for the horse-power of water-engines. Along with this development of the electric-supply industry, the number, and the aggregate horse-power, of electric motors in factories showed substantial upward movements during the years under review.

The following table shows the total number of engines and horse-power by classes of industries for the years 1932-33 and 1937-38:—

Class of Industry.1932-33.1937-38.
Number of Engines.Horsepower.Number of Engines.Horsepower.
Animal food4,20966,5575,10070,602
Vegetable food91812,4551,19513,284
Drinks, narcotics, and stimulants1,0626,5491,3778,169
Animal matters (not otherwise classed)2262,4013453,083
Working in wood2,08234,5773,28016,788
Vegetable produce for fodder3050841585
Paper manufactures1003,9432263,152
Heat, light, and power216431,905212581,865
Processes relating to stone, clay, glass, &c.93326,4281,30332,009
Metals other than gold or silver1,48512,5562,49415,052
Precious metals45689485
Hooks and publications2,2149,0642,72010,345
Ornaments and minor art products28574452
Designs, medals, type, and dies6813089152
Machines, tools, and implements3311,6356382,458
Carriages and vehicles1,7374,7152,9026,472
Harness, saddlery, and leatherware3733,0065624,025
Ships, boats, and their equipment1449062091,129
House-furnishings9464,6801,5065,642
Chemicals and by-products7387,9489309,057
Textile fabrics2585,5713816,733
Apparel1,0922,9761,9624,565
Fibrous materials1182,6612044,414
Miscellaneous1118202603,032
    Totals19,458642,11628,074832,750

The necessity for a plentiful supply of motive power in the expansion of industry is reflected in the foregoing table. The totals of engines in use and horse-power available in 1937-38 as compared with 1932-33, record the substantial advances of 44 per cent. and 30 per cent. respectively. Furthermore, a study of these figures by classes of industry affords some indication of the relative importance of these industries in the economic and industrial life of the Dominion.

A drawback to the statistics arises through the lack of information relating to the actual or estimated period during which the engines or motors were in use. This is an important aspect of considerations affecting the quantitative measurement of the motive power employed.

CONSUMPTION OF COAL.

During the year 1937-38 745,939 tons of coal were used in industries covered by the statistics of factory production, an increase of 16,055 tons, or 2 per cent., as compared with the previous year. Of this amount. 658,119 tons represented New Zealand coal, and the remainder (87,820 tons) imported coal.

Some 84,338 tons (96 per cent.) of the imported coal, and 136,898 tons (21 per cent.) of the New Zealand coal was utilized in gas-making, this industry accounting for approximately 30 per cent. of the total amount of coal used in industries covered by the factory production statistics. A further 45 per cent. was used by three industries—namely, butter, cheese, and condensed-milk making, 138,195 tons; meat freezing and preserving, 97,486 tons; lime-crushing and cement-making, 92,206 tons.

MATERIALS USED OR OPERATED UPON.

The value of materials used or operated upon does not afford a very satisfactory basis of comparison as between one industry and another, for the reason that the changes wrought during the process of manufacture vary considerably in degree. For instance, materials used or operated upon in the tanning, fell-mongering, and wool-scouring industry were in 1937-38 valued at £1,371,428, while those used in printing, publishing, and bookbinding were valued at £1,354,034. If, however, value of output is considered, it is found that the figure for printing and publishing (£4,839,449) is over £3,000,000 greater than that for tanning, &c. (£1,730,460).

Another point which should be noted is that wide variations exist in the extent of transformation undergone by materials in the. factory process. The factory constituent in the value of animal foods, for instance, is but small, whereas the aggregate cost of finished woollen materials is far in excess of the value of untreated wool.

The cost of materials used in the various classes of industries during the last five years is given in the table hereunder:—

Class of Industry.1933-34.1934-35.1935-36.1936-37.1937-38.
 £££££
Animal food27,201,43530,516,77736,349,44242,593,55044,139,552
Vegetable food3,550,5543,562,5703,625,0743,842,6194,371,220
Drinks, narcotics, and stimulants1,198,2471,372,7821,344,0441,655,4181,954,258
Animal matters (not otherwise classed)395,504509,334705,083697,925776,837
Working in wood1,138,5871,247,7011,708,9802,019,3342,252,942
Vegetable produce for fodder32,55249,62054,47358,89983,815
Paper manufactures196,158187,806214,224263,303320,866
Heat, light, and power4,079,1044,170,3494,248,8154,554,2574,857,182
Processes relating to stone, clay, glass, &c.255,015313,641407,094504,853635,120
Metals other than gold or silver950,5711,247,3971,564,7951,950,8602,382,832
Precious metals35,42141,48247,92464,19773,621
Books and publications930,659963,6281,076,9421,179,7941,354,034
Ornaments and minor art products19,73226,28930,88485,49242,762
Designs, medals, type, and dies10,64812,65115,70316,97919,071
Machines, tools, and implements298,269430,988563,131896,903961,550
Carriages and vehicles846,2621,117,7141,220,2431,557,9251,814,997
Harness, saddlery, and leatherware1,212,8591,124,3751,293,6371,970,7101,557,526
Ships, boats, and their equipment129,381204,199226,001315,300343,151
House-furnishings328,378445,665575,647779,217949,364
Chemicals and by-products1,228,1261,295,6891,349,5931,565,3171,848,918
Textile fabrics407,707499,159452,741626,934680,818
Apparel2,224,8702,484,5682,554,6253,095,9903,182,915
Fibrous materials171,079160,921191,871223,964258,678
Miscellaneous78,07599,436119,427198,335222,144
    Totals46,919,19352,084,74159,940,39370,668,07575,084,173

In considering the cost of materials used it should be remembered that the semi-primary industries (e.g., meat freezing and butter and cheese making) account for a very large proportion of the total. In 1937-38, for example, the two industries mentioned accounted for £43,119,090 out of a total of £75,084,173 for cost of materials used. Constituting as they do well over 50 per cent. of the total cost of materials used in all industries, the figures for the semi-primary industries influence the total figures for any year. Indeed, a study of the total cost of materials over a number of years shows that frequent and wide oscillations in primary-produce prices are clearly reflected therein. Again, difficulty has been experienced in determining what actually constitutes materials in the electric-supply industry. For the purpose of factory-production statistics the figure for materials in respect of this industry is deemed to be the total expenditure for the year, less salaries and wages met out of revenue from the sale of energy.

PRODUCTS.

The value of products is based upon the valuation of goods at the factory-door.

In making use of the gross value of products it must be borne in mind that the figures include the value of raw materials operated upon, which constitutes more than half of the total value; in fact, the cost of materials used has fluctuated between 65 per cent. and 67 per cent. of the value of the products in the last five years. Where the products of one industry—for example, sawmilling—are treated again in other industries, such as furniture-making, joinery, &c., it must be obvious that part of the value of the timber shown as products of the former industry appears again as the materials of the latter industry and enters into the value of joinery and furniture made. Duplication of this kind is found in many industries.

The following table shows the gross value of products by classes of industries as recorded in the last five collections:—

Class of Industry.1933-34.1934-35.1935-36.1936-37.1937-38.
 £££££
Animal food32,757,52435,894,09441,876,43148,927,91950,388,449
Vegetable food5,317,5055,307,7605,611,1776,090,4896,399,495
Drinks, narcotics, and stimulants3,036,8093,533,2303,217,3093,630,4084,296,945
Animal matters (not otherwise classed)868,6571,060,0401,271,6361,246,1451,358,230
Working in wood3,034,5683,695,7624,651,0385,597,4696,323,432
Vegetable produce for fodder48,39369,82373,39478,635112,849
Paper manufactures414,515436,098450,234544,465651,442
Heat, light, and power5,862,5646,004,3846,248,7486,563,1857,189,456
Processes relating to stone, clay, glass, Ac.1,145,8711,319,5791,691,9592,122,9512,465,891
Metals other than gold or silver2,313,6202,948,8803,579,1374,424,4405,201,564
Precious metals85,74097,082111,314143,178159,902
Books and publications3,525,1883,758,9374,040,1144,406,8044,839,449
Ornaments and minor art products47,84656,70466,43582,34899,036
Designs, medals, type, and dies53,53863,13473,84379,97791,338
Machines, tools, and implements607,393816,7601,110,1871,671,5291,774,221
Carriages and vehicles1,963,4972,570,9633,222,6264,334,2365,588,433
Harness, saddlery, and leatherwear1,694,0891,594,3331,833,4302,640,2712,086,288
Ships, boats, and their equipment334,051439,678485,363669,365735,747
House-furnishings743,505946,3771,201,3171,630,1391,930,479
Chemicals and by-products2,130,9022,338,1372,449,3632,828,0603,220,064
Textile fabrics1,028,7051,107,8701,072,1591,323,8121,382,472
Apparel4,279,6144,721,6774,903,2455,963,4706,351,648
Fibrous materials319,558328,881444,998523,822571,396
Miscellaneous157,220214,290269,291418,605473,330
Totals71,770,87279,324,47390,014,748105,941,722113,691,556

ADDED VALUE.

As indicated under the heading of “Products,” the value of products is not always a satisfactory measure of either the absolute or the relative importance of a given industry, for the reason that only part of this value is actually created by the manufacturing processes carried on in the industry itself. In many cases by far the larger portion of the value of products represents the value of the materials used. From a manufacturing standpoint, therefore, the best measure of the importance of an industry is the value created by the manufacturing operations carried on within the industry. This value is obtained in New Zealand by deducting the cost of materials used from the gross value of the products, and is referred to as the “added value.” As the basis of the added value is the value of products, it is clear that it must be affected by fluctuations in values, and this fact should not be lost sight of when use is made of these figures.

The table given hereunder shows the added value by classes of industries for each of the last five years:—

Class of Industry.1933-34.1934-35.1935-36.1936-37.1937-38.
 £££££
Animal food5,556,0895,377,3175,526,9896,334,3696,248,897
Vegetable food1,766,9511,745,1901,986,1032,247,8702,028,275
Drinks, narcotics, and stimulants1,838,5622,160,4481,873,2651,974,9902,342,687
Animal matters (not otherwise classed)473,153550,706566,553548,220581,393
Working in wood1,895,9812,448,0612,942,0583,578,1354,070,490
Vegetable produce for fodder15,84120,20318,92119,73629,034
Paper manufactures218,357248,292236,010281,162330,576
Heat, light, and power1,783,4601,834,0351,999,9332,008,9282,332,274
Processes relating to stone, clay, glass, &c.890,8561,005,9381,284,8651,618,0981,830,771
Metals other than gold or sliver1,363,0491,701,4832,014,3422,473,5802,818,732
Precious metals50,31955,60063,39078,98186,281
Books and publications2,594,5292,795,3092,963,1723,227,0103,485,415
Ornaments and minor art products28,11430,41535,55146,85656,274
Designs, medals, type, and dies42,89050,48358,14062,99872,267
Machines, tools, and implements309,124385,772547,056774,626812,671
Carriages and vehicles1,117,2351,453,2492,002,3832,776,3113,773,436
Harness, saddlery, and leatherware481,230469,958539,793669,561528,762
Ships, boats, and their equipment204,670235,479259,362354,065392,596
House-furnishings415,127500,712625,670850,922981,115
Chemicals and by-products902,7761,042,4481,099,7701,262,7431,371,146
Textile fabrics620,998608,711619,418696,878701,654
Apparel2,054,7442,237,1092,408,6202,867,4803,168,733
Fibrous materials148,479167,960253,127299,858312,718
Miscellaneous79,145114,854149,864220,270251,186
    Totals24,851,67927,239,73230,074,35535,273,64738,607,383

The following table shows various percentages and rates that have been computed in connection with the added value for the last five years:—

1933-34.1934-35.1935-36.1936-37.1937-38.
 £££££
Added value per head of mean population16.1117.5319.2322.3424.22
Added value per person engaged342.07343.25347.33365.91377.23
Added value per £100 expended on salaries and wages205.28205.67202.60192.40184.01
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
Percentage of salaries and wages to added value48.7248.6249.3651.9754.35
Percentage of added value to cost of materials used52.9752.3050.1749.9151.42

The next table is of interest as indicating the variations between the percentages which wages bear to added value in a selection of major industrial classes.

Class of Industry.1933-34.1934-35.1935-36.1936-37.1937-38.
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
Animal food44.2044.5146.7547.8154.10
Vegetable food35.3633.8232.2632.9440.24
Drinks, narcotics, and stimulants26.0023.8728.7031.4430.04
Animal matters (not otherwise classed)38.6434.3135.8842.1145.26
Working in wood53.9252.1852.9555.9256.62
Heat, light, and power57.5457.7457.1663.6261.27
Books and publications55.6654.1453.1854.2254.49
Machines, tools, and implements54.5054.4249.7851.2153.37
Apparel64.2265.7165.3869.5271.27
Fibrous materials54.3355.8754.3056.5059.89

While in some instances the proportion which wages bears to added value has remained fairly constant, considerable variation may be noted in others. A particularly noticeable feature is the increase in those classes mainly engaged in processing primary products (“animal food,” “vegetable food,” “Animal matters not otherwise classed”) and in the apparel class. It is also interesting to note that in the “books and publications” and “machines, tools, and implements” classes the percentage is actually less than what it was five years previously, despite the increases in wage-rates that have taken place in recent years.

OTHER EXPENSES OF OPERATION.

It is necessary when attempting to gauge the success or otherwise of an industry to take into consideration the figure for “other” expenses. The operating costs of an industry are determined by adding together the salaries and wages, cost of materials used, and other expenses. This result, when contrasted with the value of the output of the industry, indicates either a surplus or a deficit. Total operating costs of factory production for the year 1937-38 amounted to £106,893,353 (salaries and wages, £20,981,587; cost of materials, £75,084,173; other expenses, £10,827,593), while value of output totalled £113,691,556, showing therefore a surplus of £6,798,203. This surplus represents 9 per cent. of the amount of capital invested in land, buildings, plant, and machinery.

The table below shows the principal items comprised in the figure for expenses of operation other than salaries and wages and cost of materials for the last five years:—

Item.1933-34.1934-35.1935-36.1936-37.1937-38.
 £££££
Cost of coal486,074509,362572,229635,171685,762
Cost of other fuel and power536,760597,846610,643686,681792,467
Insurance210,865244,497263,897299,168428,605
Depreciation1,345,2381,433,7091,494,9191,561,9921,629,954
All other expenses5,678,3246,217,0426,665,1367,568,3317,290,805
    Totals8,257,2619,002,4569,606,82410,751,34310,827,593

FIXED ASSETS.

The values of the fixed assets give some idea as to the permanency and stability of the manufacturing industries in New Zealand, and afford the means of judging to some extent the amount of capital that has been invested therein.

The following table shows the value of land, buildings, plant, and machinery by classes of industries for the last five years available:—

Class of Industry.1933-34.1934-35.1935-36.1936-37.1937-38.
 £££££
Animal food8,629,0938,616,5118,781,4928,963,1029,007,418
Vegetable food2,267,6092,435,7452,527,9292,532,6232,604,896
Drinks, narcotics, and stimulants1,860,8701,850,6461,935,0872,009,4672,239,113
Animal matters (not otherwise classed)528,283484,194495,732500,214539,236
Working in wood2,243,0432,255,7922,353,1472,471,3502,555,492
Vegetable produce for fodder69,06070,57837,24039,01051,375
Paper manufactures283,907298,028318,999404,471437,709
Heat, light, and power31,745,61634,214,69933,609,70634,526,75935,715,744
Processes relating to stone, clay, glass, &c.1,802,6191,800,3191,793,0781,829,1501,979,059
Metals other than gold or silver2,410,3052,429,4552,241,0342,276,4832,455,826
Precious metals90,90392,90893,89986,94193,642
Books and publications3,792,5913,611,2523,595,7203,691,2263,751,873
Ornaments and minor art products58,02961,47563,12760,29260,764
Designs, medals, type, and dies67,46767,29568,82171,88869,899
Machines, tools, and implements398,455429,615465,979505,406565,837
Carriages and vehicles2,108,6892,232,8502,555,3522,805,7723,166,720
Harness, saddlery, and leatherware442,810473,721483,928479,101491,463
Ships, boats, and their equipment263,158274,982235,016198,715268,566
House-furnishings657,832659,814675,796710,339808,737
Chemicals and by-products1,682,7421,619,0491,634,9131,697,2761,768,037
Textile fabrics856,095827,976827,629884,323945,258
Apparel1,795,9001,911,8442,005,6622,168,6052,407,299
Fibrous materials171,410242,494323,073321,392364,179
Miscellaneous163,918307,208316,520363,360390,580
    Totals64,390,40467,268,45067,438,87969,597,26572,738,722

In connection with the statistics of fixed assets, it should be understood that the figures given are of necessity only approximate, the principal reason for this being that where one building houses two or more factories carrying on different industries, an apportionment has to be made between the industries, and strict accuracy is not always possible in this connection. Furthermore, in many instances fixed assets are stated at their book value, and this may be an understatement owing to appreciated site value, or an overstatement owing to insufficient allowance having been made for depreciation, obsolescence, &c. Where premises occupied are rented or leased it is the practice to estimate the capital value, the basis being the annual rental value.

The value of land, buildings, plant, and machinery may be taken as representing approximately the fixed capital, and a classification indicating the amount of this capital invested in the various classes of industry is of interest. It is recognized that electric-supply undertakings and gasworks require heavy expenditure on plant and machinery, &c., and it is not surprising that the value of fixed assets employed in the industries coming under the “heat, light, and power” class is much greater than that for any other class, notwithstanding that the added value in this case is relatively small. It is particularly interesting to note that, while the added value in the “animal food” class amounts to £6,248,897 as against £2,332,274 for heat, light, and power, the fixed capital in the latter case is £35,715,744, and in the former £9,007,418—approximately £26,700,000 less.

Successive substantial increases in the total value of land, buildings, plant, and machinery were a feature of the factory-production statistics until 1930-31. The following three years, 1931-32 to 1933-34, registered decreases, but a definite upward swing was recorded in 1934-35, when the value rose to £67,268,450, due chiefly to the expansion of the electric-supply industry by the opening of the Waitaki power scheme. Further developments in the electric-supply industry and increasing activity in the coachbuilding and motor &c., industry assisted materially to raise the figure for 1937-38 to £72,738,722.

The relation between the value of (a) land and buildings, and (b) plant and machinery illustrates the tendency for the latter to increase at a proportionately faster rate than the former. In 1905-6 the proportions per cent. of land and buildings and of plant and machinery to the total fixed assets were 57 and 43 respectively, but these positions are now reversed, the percentages in 1937-38 being 35 and 65. Each collection since 1906 has shown a gradual and consistent decrease in the percentage of the value of land and buildings to the total fixed assets. The slight reversal of this trend apparent in the figures for the last three years is unimportant, as it can be explained largely by the different basis (book value in place of capital value) adopted in the computation of the assets of gasworks in the last three collections. The table given hereunder shows the movement during the last five years:—

Year.Land and Buildings.Plant and Machinery.Total Amount.
Amount.Per Cent. of Total.Amount.Per Cent. of Total.
 £ £ £
1933-3422,159,07334.4142,231,33165.5964,390,404
1934-3523,159,57334.4344,108,87765.5767,268,450
1935-3623,985,51035.5743,453,36964.4367,438,879
1936-3724,445,33835.1245,151,92764.8869,597,265
1937-3825,573,74135.1647,164,98164.8472,738,722

CAPITAL.

Although information as to the amount of capital invested in factory industries has been collected for some years, the figures in this respect have been found to be unsatisfactory and have not been made use of. The chief factors militating against the collection of satisfactory information are the methods of accounting in use in many of the smaller establishments, and the difficulty of apportioning the capital where an establishment is only partly manufacturing. In the case of joint-stock companies the capital figures have been found to be reasonably accurate, and are shown in the following table. The figures in the second column relate to the number of companies, not the number of works.

Year.Number of Companies.Subscribed Capital.Paid-up Capital.Percentage of Paid-up Capital to Total Capital.Loan and Reserve Capital.*Percentage of Loan Capital to Total Capital.Total Capital.Paid-up Shares issued Vendors as Part of Purchase Consideration, included under heading “Paid-up Capital.”
* 1936-37 and 1937-38 figures include bank overdrafts.
Private Companies.
  ££ £ ££
1933-341,50413,339,43712,481,89781.232,883,66618.7715,365,5631,638,559
1934-351,58414,135,00313,238,87880.953,116,48019.0516,355,3581,679,667
1935-361,70014,551,38013,715,65880.933,252,31919.1716,967,9781,674,878
1936-371,78715,842,23015,010,56574.785,062,19125.2220,072,7561,884,036
1937-381,95015,814,82315,259,33473.735,438,04226.2720,697,3761,759,652
Public and Co-operative Companies.
1933-3471826,017,97923,519,47280.715,619,78019.2929,139,2523,864,089
1934-3571024,928,93122,170,22979.565,694,91320.4427,865,1424,128,644
1935-3672225,073,94822,432,54082.134,880,22317.8727,312,7633,421,860
1936-3773824,519,21722,151,47975.837,061,98424.1729,213,4633,394,090
1937-3874226,740,74124,063,29474.728,139,78225.2832,203,0763,657,542
Total (all Companies).
1933-342,22239,357,41636,001,36980.898,503,44619.1144,504,8155,502,648
1934-352,29439,063,93935,409,10780.078,811,39319.9344,220,5005,808,311
1935-362,42239,625,32836,148,19981.638,132,54218.3744,280,7415,096,738
1936-372,52540,361,44737,102,04475.4012,124,17524.6049,286,2195,278,126
1937-382,09242,555,50439,322,62874.3313,577,82425.6752,900,4525,417,194

In considering the figures given in regard to capital it must be borne in mind that the registered capital is taken in each case, except where the company may not be fully engaged in manufacture (in which case an apportionment is made), and that the capital necessarily includes capital invested in securities outside the company. This excess capital, as it may be called, is more likely to be found in public companies than in private companies, and has the effect of swelling the capital figure for public companies to some considerable extent beyond the amount actually invested in the various factories.

AGES OF INDUSTRIES.

Out of the 5,924 manufacturing establishments furnishing returns for the year 1937-38, 2,298 were shown to have been in operation prior to 1916; so that, excluding those cases where the date of establishment is unknown, 3,402 of the present establishments came into existence during the last twenty-two years, at an average rate over this period of 155 per annum. Some 1,364 date from the decade 1916-25; 819 from the quinquennium 1926-30; 923 from 1931-35; and 296 from 1936; while in 224 cases the date of establishment was not given. As a feature of historical interest, it may be stated that the earliest-known factory recorded in the Census and Statistics Department was a boiling-down works established by Captain John Guard at Whekenui, Tory Channel, in 1827. The works were used for the production of whale-oil.

ORGANIZATION OF INDUSTRY.

New Zealand's industrial progress has been fairly rapid, but industry is as yet organized on a relatively small scale.

The law in the Dominion restricts the membership of a partnership to not more than 20 persons, a private company to not fewer than 2 or more than 25 persons, and a public company to not fewer than 7 persons. Co-operation is characteristic of certain industries engaged in the processing of primary products, mainly the butter and cheese manufacturing. Municipal enterprises confined mainly to public-utility industries—e.g., gasworks and the generation a distribution of electricity—while the State operates the chief central hydro-electric generating stations and the Government Printing Office.

Information as to the character of organization of the establishments engaged in factory production during 1937-38 is given in the following table.

Character of Organization.Number of Establishments.Persons engaged.Horsepower available.Cost of Materials used or operated upon.Value of Manufactures or Products.Added Value.
Total.Per Establishment.
   H.p.££££
Individual1,9599,94516,0802,097,7134,752,7352,655,0221,355
Private firm or partnership7094,7879,282877,4622,312,5721,435,1102,024
Public registered company56129,518111,99920,696,45334,102,13213,405,67923,896
Private registered company2,10248,92595,30721,051,52837,921,89716,870,3698,026
Co-operative and miscellaneous4484,51026,26825,700,89628,155,8162,454,9205,480
Municipal and Government1454,659573,8144,660,1216,446,4041,786,28312,319
Totals5,924102,344832,75075,084,173113,691,55638,607,3836,517

As would be expected, the average size of establishments operated by public registered companies is larger than in any other type of industrial organization, the added value per unit being almost three times as high as that for the next highest non-governmental type (private registered companies). Private companies, however, hold a very high place, both numerically and in the share they contribute to the total added value created in New Zealand factories (43.70 per cent. in 1937-38, as compared with 34.72 per cent. in the case of public companies). Municipal and general governmental enterprises accounted for 4.03 per cent. of the total added value in 1937-38.

Examination of the statistics of added value over a series of years indicates that private companies have increased appreciably in relative importance, while the individual and partnership types of organization have declined, and very little change has occurred in the percentage of total added value attributable to the operations of public companies, or municipal and general governmental undertakings.

CLASSIFICATION OF INDUSTRIES.

In the following tables a classification of industries according to the nature of the work carried on is presented. The principal objects of the classification are the segregation of those industries in close association with and dependent on the great primary industries of the Dominion, and the separation from other industries of those representing the provision of public utilities under monopoly conditions. The main basis of the classification is the relationship between the value of the material worked upon and the value of the finished product, as expressed in what is known for statistical purposes as the “added value.” In those industries which may for some purposes be regarded as extensions of the primary industries the raw material undergoes only slight changes in the factory or workshop, with the result that the “added value” created is relatively small. In the genuine manufacturing industries (e.g., boot and shoe manufacturing) the raw material is subjected to much more detailed and elaborate processes. The “added value” in these industries is therefore relatively high.

Group I comprises those industries engaged in the preparation of farm products for the market, with the resulting by-products. In this group the “added value” is relatively small in proportion to the value of the output. The specific industries falling within this category are: Meat freezing and preserving, ham and bacon curing, butter and cheese making, sausage-casing making, fellmongering and wool-scouring, boiling-down and manure making.

Group II covers those industries which provide public utility services under monopoly conditions in so far as competition within the industry is concerned. It comprises gasworks and electricity generation and supply.

Group III consists of another portion of what are generally referred to as semi-primary industries. It covers industries arising from the utilization of natural resources. The added value in these industries is large in proportion to the value of output, and represents principally wages. The following industries come within this group: Fish-curing, sawmilling, lime-crushing, brick, tile, and pottery making, concrete-block and fibrous-plaster making, pumice-insulation making, and flax-milling.

Group IV comprises all industries for which statistics are available and which do not come under the previous groups. It includes several industries, such as grain-milling, iron-smelting, &c., which may be considered to be on the border-lines of Group I or Group III, and also several industries, such as motor and cycle engineering and repairing, &c., where repair work rather than manufacture in the narrow sense of the term predominates. In general, the industries included in this group may be regarded as “genuine” manufacturing industries.

The following table shows the principal statistics for the various groups for the years 1936-37 and 1937-38:—

Group.Persons engaged.Salaries and Wages paid.Materials used.Other Expenses of Operation.Products.Added Value.Land, Buildings, Plant, and Machinery.
1936-37.
  ££££££
I13,4583,217,82144,296,3412,774,72251,139,6566,843,3129,305,107
II5,1201,278,1724,554,257350,4796,563,1852,008,92834,526,759
III11,4042,363,6261,864,5141,842,9916,488,4314,623,9173,875,066
IV66,41911,473,45819,952,9605,783,15141,750,45021,797,49021,890,333
Totals96,40118,333,07770,668,07510,751,343105,941,72235,273,64769,597,265
1937-38.
I13,4983,594,56845,511,0662,565,61852,191,8726,680,8069,379,247
II5,3471,428,9894,857,182346,5737,189,4562,332,27435,715,744
IIIII12,0142,763,5092,197,5251,904,6257,424,3675,226,8424,083,510
IVII71,48513,194,52122,518,4006,010,77746,885,86124,367,46123,560,221
Totals102,34420,981,58775,084,17310,827,593113,691,55633,607,38372,738,722

Comparisons of Group IV—i.e., “true” factory industries—for the years 1936-37 and 1937-38 reveal that persons engaged in 1937-38 increased by 5,066 in number, or by 8 per cent.; salaries and wages paid advanced by £1,721,063 or by 15 per cent.; while materials used rose by 13 per cent., value of products by 12 per cent., “added value” by 12 per cent., other expenses by 4 per cent., and value of land, buildings, plant, and machinery by 8 per cent.

In the next table the principal statistics of factories coming within Group IV— i.e., the “true” manufacturing industries—are shown, classified according to the value of output.

Factories with Value of Output as under.Number of Persons engaged.Value of Products.Output per Person engaged.
1936-37.1937-38.1936-37.1937-38.1936-37.1937-38.
Number.Per Cent. of Total.Number.Per Cent. of Total.£Per Cent. of Total.£Per Cent. of Total.££
£          
Under 5006030.915130.72143,8990.34127,8670.27239249
500-9991,4142.131,2691.77467,0281.121442,1450.94330348
1,000-2,4994,8007.234,6276.471,901,8564.561,948,7744.16396421
2,500-4,9996,1679.286,5119.102,644,9796.342,976,1726.35429457
5,000-9,9996,97510.507,45310.433,417,1648.183,722,4277.94490499
10,000-14,9995,7938.726,2008.672,899,6416,953,302,1597.04501533
15,000-19,9993,4865.254,4476.221,974,9554.732,342,4895.00567527
20,000-49,99912,90819.4313,48618.887,827,66618.758,515,71018.16606631
50,000-99,9998,83713.319,30513.026,005,40314.386,625,97514.13680712
100,000 and over15,43623.2417,67424.7214,467,85934.6516,882,14336.01937955
  Totals, Group IV66,419100.0071,485100.0041,750,450100.0046,885,861100.00629656

The position of the larger scale establishments in this group of industries is striking in respect of both value of products and output per person engaged.

More detailed statistics of the foregoing groups are contained in the Statistical Report on Factory and Building Production, 1937-38.

OVERTIME AND SHORT TIME.

The amount of overtime worked or short time recorded by industries gives a fairly good though not an infallible indication as to whether an industry has been busy or slack. Statistics of these two phases of factory production have been collected for a number of years, and the tables presented hereunder throw some interesting light on one aspect of industrial production during the last ten years.

Overtime needs no explanation, and as particulars of overtime are readily ascertainable from the records kept in the wages-books, the information may be accepted as of a reliable character. For statistical purposes short time is deemed to be time lost through machinery, tools, &c., being out of order, lack of materials, adverse market conditions, and other related causes. Time lost through holidays (annual, ordinary, or public holidays) and sickness is not counted as short time. Information as to how much short time is attributable to each cause is not available.

The following table summarizes overtime worked and short time recorded in factories in respect of wage-earning employees during the last ten years.

Year.Overtime.Short Time.
Males.Females.Totals.Males.Females.Totals.
 Hours.Hours.Hours.Hours.Hours.Hours.
1928-291,532,711213,1391,745,8501,055,337154,2331,209,570
1929-301,621,910243,4091,865,319909,063192,8971,101,960
1930-311,211,078117,6291,328,7072,723,274722,8233,446,097
1931-32933,700176,5581,110,2583,789,0561,209,9274,998,983
1932-331,072,759331,7091,404,4683,028,668953,7223,982,390
1933-341,135,648364,0761,499,7242,597,954747,7963,345,750
1934-351,652,065469,2142,121,2791,684,712426,9382,111,650
1935-362,035,032654,6152,689,6471,497,132427,5651,924,697
1936-372,317,029667,6062,984,6351,000,61380,9491,081,562
1937-382,726,676599,9873,326,6631,003,447205,2561,208,703

Prior to the year 1930-31, the number of hours of overtime worked each year exceeded the number of hours of short time recorded. The years 1930-31 to 1933-34, however, show the reverse to have been the case. The substantial fall in overtime registered for the years 1930-31 and 1931-32 was arrested in 1932-33 and 1933-34, and it is symptomatic of a substantial recovery that during the last four years overtime worked exceeded short time recorded. More than 50 per cent. of the total overtime worked in 1937-38 was contributed by five industries—coachbuilding and motor engineering (659,462 hours), meat freezing and preserving (347,754 hours), clothing (329,004 hours), printing and publishing (260,920 hours), and general engineering (201,905 hours). The meat freezing and preserving industry recorded the highest amount of short time (442,989 hours), followed by the sawmilling industry (138,269 hours). Marked seasonal fluctuations occur in the meat, freezing, &c., industry, while the sawmilling industry is affected by adverse weather conditions.

The following table gives for each of the last ten years the average number of hours of overtime and short time recorded for all wage-earning employees whether or not working overtime or on short time:—

Year.Overtime.Short Time.
 Males.Females.Males.Females.
1928-2928161911
1929-3028161613
1930-312595656
1931-3222139092
1932-3325246970
1933-3425245649
1934-3531263224
1935-3635342622
1936-373630154
1937-384127159

SUMMARY OF OPERATIONS.

The following table, showing an analysis of production costs in 1937-38, together with the value of products for each class of industry, is of interest. The figures are shown in units of £1,000.

Class of Industry.Production Costs.Value of Products.Surplus.*
Salaries and Wages paid.Cost of All Materials used.Other Expenses of Operation.Total.
*i.e., Excess of value of products over production costs.
 £(000)£ (000)£ (000)£(000)£(000)£(000)
Animal food3,38144,1402,45949,98050,389409
Vegetable food8164,3716305,8176,400583
Drinks, narcotics, and stimulants7041,9547463,4044,297893
Animal matters (not otherwise classed)2637771611,2011,358157
Working in wood2,3052,2531,3445,9026,323421
Vegetable produce for fodder138491061137
Paper manufactures13532196552652100
Heat, light, and power1,4294,8573476,6337,189556
Processes relating to stone, clay, glass, &c.8256357042,1642,466302
Metals other than gold or silver1,7352,3836744,7925,202410
Precious metals55741414316017
Books and publications1,8991,3541,1184,3714,839468
Ornaments and minor art products3943890999
Designs, medals, type, and dies50191483918
Machines, tools, and implements4349611571,5521,774222
Carriages and vehicles2,1201,8157014,6365,588952
Harness, saddlery, and leather-ware3071,5571341,9982,08688
Ships, boats, and their equipment2883436769873638
House-furnishings6929491691,8101,931121
Chemicals and by-products4921,8493332,6743,220546
Textile fabrics4476811831,3111,38372
Apparel2,2583,1835636,0046,352348
Fibrous materials18725911055657115
Miscellaneous1082228741747356
    Totals20,98275,08410,828106,894113,6926,798

PRICES OF MATERIALS AND OF PRODUCTS.

Recent research in the direction of extending and improving available data on price changes has included the compilation of index numbers of prices of commodities used in certain major New Zealand factory industries and of prices of the products of such industries. The relationship between prices paid for materials and prices received for the products of factory industries is a matter of considerable moment; while the broader question of the relation between changes in prices of factory products (and of materials) and changes in other significant price factors—e.g., retail prices, import prices, and export prices—is no less important.

The index numbers contained in the following tables indicate the movements in the average prices of the principal material commodities bought by twenty New Zealand factory industries and in the prices of the main products of these industries. The price quotations used for materials represent the unit costs to the factories of commodities used in production, while the prices of products represent unit values at the factory door. Distribution charges are thus not included in the prices of products, the figures showing the relationship, from the factory-production point of view, of prices, of materials, and of products.

In the following table index numbers of the prices of the principal materials used are given for each of twenty industries:—

FACTORY PRODUCTION (TWENTY INDUSTRIES): INDEX NUMBERS OF PRICES OF THE PRINCIPAL MATERIALS USED.

(Base: 1925-26 to 1929-30 = 1000.)

Industry.Year.
1930-31.1931-32.1932-33.1933-34.1934-351935-361936-371937-38.
Meat freezing and preserving725512495619771794906918
Butter, cheese, and condensed - milk manufacture681647529535562721796881
Ham and bacon curing8737176026878238289581,010
Grain-milling957863771735726735752788
Biscuit and confectionery making8748959741,0139861,0081,0291,059
Fruit-preserving and jam-making902849898822948927927952
Brewing and malting918907904820800789833916
Aerated - water and cordial manufacture8559539641,0751,0611,0511,0841,109
Ice-cream making800919692598608601633678
Woollen-milling640480480600720640800960
Boot and shoe making940758732786808816806889
Hosiery-making860702667754789772842912
Clothing-manufacture892828813725725688636729
Soap and candle making806689695718719819802888
Coopering and case-making9388858898898378379711,053
Tanning703515413509522526747804
Fellmongering and wool-scouring497299302583484599880725
Sail, tent, and oilskin making920782802816877917915975
Chemical fertilizers refining9561,0091,001950838773770749
Rope and twine making854705637577530560778936

It is not practicable to include all factory industries within the ambit of this survey. In some instances the nature of the products precludes the measurement of unit values of products—for example, in industries where repair work constitutes a considerable proportion of total factory output. Again, in the extractive factory industries—e.g., bush sawmilling, lime-crushing, and cement-making, &c.—the royalty or price paid for materials in situ is but a small proportion of the cost delivered at the factory-door, labour costs and transportation accounting for the major part of the cost to the factory. Despite the exclusion of the types of industry indicated above, the twenty industries covered accounted for 62 per cent. of the value of factory products in 1937-38, 38 per cent. of the added value—i.e., value created by factory processes—and 42 per cent. of the total number of factory employees.

The index numbers are compiled on the base: average prices ruling during the live production-years 1925-26 to 1929-30 = 1000. [NOTE.—The production-year ends on varying dates for different industries, but may be taken in general as corresponding approximately to a March year.] In all, forty-seven factory materials and sixty-seven factory products are covered by the index numbers, each price quotation used being an annual weighted average, the total quantity used (or produced) during the year being divided into the total cost (or value at the factory door). The weights used in combining the individual price quotations in the compilation of the index numbers represent average quantities used (or produced) during the five years 1925-26 to 1929-30.

Index numbers of prices of the principal products are shown in the next table:—

FACTORY PRODUCTION (TWENTY INDUSTRIES): INDEX NUMBERS OF PRICES OF PRINCIPAL PRODUCTS.

(Base: 1925-26 to 1929-30 = 1000.)

Industry.Year.
1930-31.1931-32.1932-33.1933-34.1934-35.1935-36.1936-37.1937-38.
Meat freezing and preserving730579570708783815928956
Butter, cheese, and condensed -milk manufacture686678547547571716793878
Ham and bacon curing9898518068419129401,0081,068
Grain-milling972921796782766740758774
Biscuit and confectionery making931929880854866912913859
Fruit-preserving and jam-making945893878899930859855969
Brewing and malting1,0531,0539471,0001,0001,0531,1051,158
Aerated - water and cordial manufacture968968968935935935935903
Ice-cream making1,0631,013949899899810848785
Woollen-milling957753719766816774840932
Boot and shoe making925863769739720689739776
Hosiery-making899737785741782782813845
Clothing-manufacture1,0999098469179899949781,022
Soap and candle making901874835874924983976929
Coopering and case-making9969708227957787259791,102
Tanning744570602615658637837876
Fellmongering and wool-scouring482358350636475648826770
Sail, tent, and oilskin making749712730851758846823832
Chemical fertilizers refining1,018978926907866851842837
Rope and twine making846800703675753804943959

Comparison of the index numbers of prices of materials and of products brings out several points of interest. Generally speaking, the index numbers for both materials and products were in 1937-38 still to varying degrees below the 1926-30 levels. The index numbers of prices of materials in the ham and bacon, coopering and casemaking, biscuit and confectionery, and aerated water and cordial manufacturing industries exceeded the 1926-30 level. The indexes for eighteen out of the twenty industries have shown upward movements for 1937-38 as compared with 1936-37. Notwithstanding the definite upward trends in the indexes of prices of products for 1937-38 as compared with 1936-37, only four industries—ham and bacon curing, brewing and malting, clothing, and coopering and casemaking—have passed the 1926-30 level. As would be expected, a close relationship exists between the index numbers for materials and for products of the butter, cheese, and condensed-milk manufacturing industry; while a similarly close degree of relationship between the two series exists in the case of other industries processing primary products. In all these instances the factory process accounts for but a comparatively small proportion of the total value of products.

While the relationship between prices of materials and of products is an important aspect of the economy of a manufacturing industry, it is not to be inferred that this relationship, though an important one, forms the solo criterion of the relative prosperity of an industry. The volume of production is of course a vital factor in this connection, while, again, the relative importance of labour costs, overhead expenses, &c., varies considerably as between different industries.

In order to present a more compact picture of the changes in prices of factory materials and products, index numbers have been compiled for related groups of industries. In compiling the group index numbers each industry is accorded a weight corresponding to its relative importance as a factory industry.

GROUP PRICE INDEX NUMBERS : MATERIALS AND PRODUCTS.

(Base: 1925-26 to 1929-30 = 1000.)

Industry.Year.
1930-31.1931-32.1932-33.1933-34.1934-35.1935-36.1936-37.1937-38.
Meat freezing and butter and cheese—        
  Materials699592515569647751841896
  Products704637557614660757849911
Other foods and drink (seven industries)—        
  Materials920851797790804812851894
  Products1,005914850868897895898912
Clothing, boots, and woollens (four in-industries)—        
  Materials852735719717748715723824
  Products1,028887800845897885885938
Other industries (seven industries)—        
  Materials726614600708640680831793
  Products824761719796761814863851
Weighted average (twenty industries)—        
  Materials737634568616671750833883
  Products788711636689725794861909

It will be seen that although a substantial increase has taken place in the prices of both materials and products since the low point in 1932-33, the 1937-38 indexes wore still below the 1925-26 to 1929-30 levels.

The weighted average combined index for the twenty industries is dominated to a large extent by the importance of the industries engaged in processing primary products, overseas price-movements of butter, cheese, and meats being reflected in these figures. The group indexes, and those quoted earlier for individual industries enable differentiation to be made between the relative movements in prices as between industries largely dependent on oversea markets and those catering solely for the local market.

VOLUME OF FACTORY PRODUCTION.

The two previous issues of the Year-Book contained index numbers showing the movement in the volume of production for the twenty industries covered by this survey. Some of these industries have, however, undergone many changes in recent years—i.e., by extending their range of products, and by changes in their technique of manufacturing, &c.

Lest the insufficient data available for earlier years should tend to show an incorrect movement in the volume of production, it has been decided in the meantime to discontinue the publication of index numbers of volume of factory production.

IMPORTANT INDIVIDUAL INDUSTRIES.

The salient features of a selection of the more important individual industries are discussed in the following paragraphs.

MEAT FREEZING AND PRESERVING.

The close relationship which exists between this industry and the primary industries is reflected in the fluctuations which are recorded in meat-freezing statistics from year to year. Fluctuating prices realized on overseas markets, combined with varying seasonal conditions in the Dominion, are the main factors responsible for the frequently changing conditions of this industry. The value of production was £16,640,527 in 1928-29, the highest figure recorded up to that year, falling to £10,974,952 in 1931-32. A gradual expansion was in evidence for the next two years, and in 1934-35 the value of output exceeded the 1928-29 total by £216,050. In 1935-36, due to an upward turn in prices, the value of output reached £17,514,049, and 1936-37 saw a substantial advance to £20,769,869, followed by a further increase to £21,227,641 in 1937-38.

An interesting feature disclosed by the 1934-35 returns for this industry was the establishment of three additional works designed principally for the handling of pigs. This branch of the industry has been making rapid progress, frozen pork contributing £1,455,000 to the output of freezing-works in 1935-36, £1,843,000 in 1936-37, and £2,139,474 in 1937-38. Another feature worthy of note is the increasing production of chilled beef—£57,048 in 1934-35, £251,984 in 1935-36, £445,152 in 1936-37, and £592,128 in 1937-38.

BUTTER, CHEESE, AND CONDENSED-MILK, ETC., MAKING.

Though there was a drop in the physical volume of production in the butter and cheese industry for 1937-38 as compared with 1936-37, a new record high level was attained for the value of products (£27,767,288). Butter produced during 1937-38 totalled 3,258,215 cwt. (3,507,206 cwt., in 1936-37); whey butter, 49,188 cwt. (45,901 cwt. in 1936-37); cheese, 1,769,351 cwt. (1,826,302 cwt. in 1936-37); and casein, 70,229 cwt. (86,945 cwt. in 1936-37). The average payment to suppliers per pound of butterfat increased from 13-67d. in 1936-37 to 157mdot;18d. for the year 1937-38, while the average annual amount paid to suppliers also advanced from £322 to £358.

It is interesting to note that of the total butterfat supplied for butter and cheese making &c. (383,037,469 lb.) 79 per cent. was used for making butter, leaving 21 per cent. as the proportion contained in milk used for making cheese and other products. In 1927-28 these proportions stood at 70 per cent. and 30 per cent. respectively.

GRAIN-MILLING.

The apparent consumption of flour in the Dominion in 1937-38 was 145,537 tons. During that period the forty-seven grain-mills in operation produced 144,724 tons, or 99 per cent. of the amount consumed. The quantity of wheat used by mills was 6,890,396 bushels, 46.91 bushels on the average being required to make a ton of flour. In addition, grain-mills in 1937-38 manufactured 3,410 tons of oatmeal, 3,553 tons of other oaten products for human consumption, 20,889 tons of bran, 36,526 tons of pollard, 4,150 tons of wheat- and whole-meal, and other products to the value of £26,713. This industry, which in 1937-38 accounted for an aggregate value of £2,574,944 in the products mentioned, added £527,701 to the value of materials used, the work being done by 767 persons, the salaries and wages of whom amounted to £188,429. Other expenses amounting to £2,57,117 were also incurred, leaving a balance of £82,155. The amount of capital invested in the industry's fixed assets was £774,475.

Recently steps have been taken by the Government towards the betterment of the industry. The Board of Trade (Flour) Regulations gazetted on 1st April, 1936, and additional regulations since gazetted, aim at the rationalization of the industry. These regulations provide, inter alia, for the establishment of a monthly quota of output to be allotted to each mill, while the Wheat Committee (see page 408) is required from time to time to fix the sale price of flour. The prices at which milling wheat is made available to millers are also declared by the Committee each season under previous regulations. Measures have also been taken to restrict the importation of flour so that the gristing of any necessary imports of wheat will be done in New Zealand mills.

BREWERIES AND MALTHOUSES.

The demand for the products of this industry fluctuates to a considerable extent with changes in the spending-power of consumers. Brewing, in common with other industries which do not manufacture what may be termed necessaries, was greatly affected by the recent economic depression. The average consumption of beer per head of population fell from 91/2 gallons during the three years 1926 to 1928 to only 6 gallons for 1932-34, or by more than one-third. However, during 1934-35 conditions greatly improved, and, consequently, brewing production rose by 20 per cent. above the figure for the previous year. A further appreciable increase in beer-production was manifest in 1935-36, while new high levels were reached for the quantity and value of beer produced during 1936-37. Brisk conditions were a feature of the industry during 1937-38, resulting in the high levels attained in 1936-37 being surpassed. The 1,155 persons engaged in this industry during 1937-38 were paid £319,250 in salaries and wages. The total value of products was assessed as £2,922,629, of which £992,572 represented beer duty. The quantity of beer produced amounted to 16,496,816 gallons (exclusive of wastage).

CLOTHING FACTORIES.

The manufacture of clothing finds employment for more persons than any other industry covered by these statistics. In 1937-38, 12,916 persons were employed in 357 factories. Of this number, 1,900 were males and 11,016 females, who earned during the year an average of £241 and £98 per annum respectively, the total amount of salaries and wages being £1,542,933.

The value added to materials by the processes of manufacture in the industry was £2,062,746, the highest yet recorded, of which salaries and wages accounted for 75 per cent. The total value of products amounted to £3,962,056, but this includes £776,442 received for order work. In cases where factories make up customers' materials the amount charged for making up the goods is counted in the value of products; but in these instances statistics are not available as to the cost of materials supplied by customers. Consequently the cost of materials- and value of output (though not added value) are to a certain extent understated in the statistics for this industry.

BOOT AND SHOE FACTORIES.

The manufacture of footwear in the Dominion is an old-established industry for which the value of fixed assets is £424,631, an average of £6,066 per unit. The footwear-requirements of the Dominion in 1937-38 amounted to 6,085,304 pairs, of which 3,202,040 pairs, or 53 per cent., were manufactured locally. Rubber-soled footwear for sports use accounts for a very large proportion of imports of footwear, the local factories supplying the bulk of the requirements of leather footwear. Factories in 1937-38 used locally produced leather to the value of £348,194 and imported leather to the value of £161,874.

The latest statistics compare very favourably with the corresponding figures a decade ago. In 1927-28 there were 81 factories employing 2,338 persons manufacturing 1,446,016 pairs of boots and shoes and 7,922 pairs of slippers, as compared with 70 factories in 1937-38 employing 3,081 persons manufacturing 1,857,811 pairs of boots and shoes and 1,344,229 pairs of slippers. While the number of factories has decreased there is greater employment, considerably higher production of boots and shoes, and a phenomenal increase in the production of slippers. The industry created in 1937-38 an added value of £673,205, of which salaries and wages (£451,246) represented 67 per cent.

SAWMILLING AND SASH AND DOOR FACTORIES.

The sawmilling industry ranks third among the industries covered by the statistics of factory production as far as employment and amount of salaries and wages paid are concerned. The 474 mills reporting operations during 1937-38 found employment for 8,364 persons, who were paid £1,936,901 as salaries and wages. Value of output totalled £5,061,133.

Increasing by 16,876,368 ft. board measure over 1936-37, the output of rough-sawn timber in 1937-38 totalled 322,765,786 ft. board measure, the volume of production being the highest recorded since 1925-26 (353,224,196 ft. board measure). Of the various species of timber milled, rimu and kahikatea represented 71 per cent. of the total, the respective percentages being 57 and 14. Pinus radiate ranked next to kahikatea. with 11 per cent. of the total output. The output of this exotic species, for 1937-38, totalled 36,360,000 ft. board measure—the highest yet recorded for it. The aggregate value of rough-sawn timber produced during 1937-38. was £3,028,656—an average of 18s. 9d. per 100 ft. board measure, while the value of resawing and planing-mill products amounted to £2,019,684.

ELECTRICITY GENERATION AND SUPPLY.

See Section XLV of this Year-Book.

PRINTING AND PUBLISHING.

During 1937-38 the printing and publishing industry showed a substantial improvement over the preceding year. Though the number of establishments reporting operations was eleven less than in 1936-37, the industry found employment for 7,923 persons (excluding distributing staff), as against 7,642 in the previous year.

The total cost of materials used during 1937-38 was £1,354,034, as compared with £1,179,794 in 1936-37. Of the 1937-38 amount, £488,388 represented cost of newsprint and £588,978 cost of paper for job printing, while the cost of ink used totalled £47,964. The value of output (£4,839,449) was £433,000 more than the recorded value in 1936-37, and was made up as follows: Newspapers, £2,466,253; job printing, £1,929,252; other products, £443,944.

WOOLLEN-MILLS.

Twelve woollen-mills were in operation in 1937-38, employing 2,748 persons (1,100 males and 1,648 females)—an average of 229 persons per mill. Although the number of persons engaged showed a decrease of 44 below the total in 1936-37, the aggregate amount paid in salaries and wages increased from £405,484 to £422,240, or by 4 per cent.

The value of materials used in 1937-38 totalled £603,546, or 4.5 per cent. more than in the previous year, while the value of output advanced from £1,230,829 to £1,258,319, representing an increase of 2.2 per cent. All the principal products of woollen-mills—tweeds and cloth, blankets, rugs, yarn, and flannel—showed decreases in quantity with the exception of flannel, which advanced by 6.9 per cent.

SUPERPHOSPHATES AND CHEMICAL FERTILIZERS.

The products of this industry are of paramount importance in the development of the farm-produce of the Dominion, and, recognizing the need of a plentiful supply of fertilizers, the Government has fixed the price of fertilizers (see page 424 of this Year-Book). During the year 1937-38, 402,076 tons of superphosphates were produced by the eight works operating in the Dominion, or 54,607 tons more than in 1936-37. Chemical fertilizers manufactured amounted to 65,133 tons (48,674 tons in 1936-37). This industry gave employment to 902 persons during 1937-38, with a salaries and wages bill of £240,319. The cost of materials used amounted to £1,112,202, the chief constituents of which were: Rock phosphate, £483,466; sulphur, £316,024; nitrate of soda and potash, £59,719. The value of products was £1,809,471, while the amount of capital invested in land, buildings, plant, and machinery stood at £1,139,254.

DETAILS OF PRINCIPAL INDUSTRIES.

The principal statistics regarding the leading factory industries for the last three years are set out in the following pages. Fuller details are given in the annual “Statistical Report on Factory and Building Production.”

STATISTICS OF PRINCIPAL INDUSTRIES.

1935-36.1936-37.1937-38.

* Including milk used (454,824,607 lb. in 1937-38) in making dried whole milk and skim milk, condensed-milk, and casein.

† Including butterfat (2,181,115 lb. in 1937-38) contained in milk used for making dried whole milk and condensed-milk.

* Including beer duty.

*Not available; included in item “Soap.”

* Includes royalty.

* Not available.

Number of—Meat Freezing and Preserving.
  Works383838
  Persons engaged7,6927,6657,835
Salaries and wages paid £1,634,1851,865,2822,188,102
Cost of materials used £14,455,48317,218,25317,713,363
Other expenses £840,2751,144,790991,865
Frozen mutton—   
  Carcases No.2,003,0642,029,8412,149,190
  Value £1,570,2921,736,2871,936,018
Frozen lamb—   
  Carcases No.8,716,6419,238,7009,015,713
  Value £8,215,4318,993,9128,987,277
Frozen mutton and lamb pieces—   
Quantity Cwt.6,2386,3499,936
  Value £8,8508,33613,586
Frozen beef—   
  Quantity Cwt.834,345593,507678,750
  Value £953,605801,9051,035,153
Chilled beef—   
  Quantity Cwt.196,059275,015322,802
  Value £251,984445,152592,128
Frozen pork—   
  Quantity Cwt.569,088655,865661,603
  Value £1,454,7721,843,1582,139,474
Frozen rabbits—Value £20,41121,4319,364
Preserved meats—   
  Quantity Cwt.91,728112,28798,276
  Value £249,970366,226349,968
Tallow—   
  Quantity Cwt.442,993453,593493,605
  Value £587,045579,568542,867
Bonedust—   
  Quantity Cwt.45,05534,82341,234
  Value £15,76512,92016,415
Other manures—   
  Quantity Cwt.674,504626,760497,969
  Value £187,068188,395167,298
Hides and pelts—   
Quantity No.12,566,92813,088,55913,028,892
  Value £1,505,2152,198,9602,086,146
Wool—   
Quantity lb.30,011,26932,189,84932,352,097
  Value £1,171,6391,923,9711,931,320
Total value of output £17,514,04920,769,86921,227,641
Number of—Ham and Bacon Curing.
  Works495251
  Persons engaged450506521
Salaries and wages paid £92,444112,014129,432
Pigs dealt with—   
  Number207,488251,160249,777
  Cost £595,579834,141874,419
Cost of other materials used £40,95854,84754,844
Other expenses £148,737145,346163,766
Ham and bacon—Quantity Cwt.156,605173,573174,773
Frozen pork—Quantity Cwt.21,06845,86940,688
Lard—Quantity Cwt.7,8138,0377,947
Total value of output £918,5001,183,5071,257,411
Number of—Butter, Cheese and Condensed-milk Factories.
  Factories469469438
  Persons engaged4,0624,3184,128
Salaries and wages paid £840,5541,032,7631,040,754
Number of separators—   
  At home60,77062,79958,229
  At factories520504465
Butterfat separated—   
  At home lb.284,647,443297,464,153275,297,527
At butter-factories lb.22,322,51825,058,89424,164,539
Milk received by cheese-factories* lb.2,157,424,4662,395,359,0372,302,286,660
Butterfat received lb.79,692,29681,960,67980,813,524
  Value of materials used £21,210,48624,414,05725,405,727
Other expenses £1,228,6281,349,8081,290,405
Butter produced (including whey butter)—   
  Quantity Cwt.3,366,5793,553,1073,307,403
  Value £17,701,77120,457,11620,731,080
Cheese produced—   
  Quantity Cwt.1,769,9841,826,3021,769,351
  Value £4,708,4165,493,9086,044,622
Casein produced—   
  Quantity Cwt...86,94570,229
  Value £..228,798168,597
Total value of output £23,364,59426,868,64327,767,288
Number of—Grain-mills.
Mills515047
  Persons engaged728743767
Salaries and wages paid £164,546169,291188,429
Wheat used—Quantity Bushels6,341,8556,368,6106,890,396
Total grain—Cost £1,689,6781,738,5801,926,845
Cost of other materials £118,702116,725120,398
Other expenses £283,393246,528257,117
Flour produced Tons134,067132,987144,724
Oatmeal produced Tons4,0914,0853,410
Other oaten products for human consumption Tons3,4563,8013,553
Total value of output £2,302,0612,348,8552,574,944
Number of—Biscuit and Confectionery Making.
  Works606052
  Persons engaged2,8623,1273,208
Salaries and wages paid £314,717392,606428,585
Flour used Tons4,8715,2495,334
Sugar used Tons6,9507,5507,874
Cost of other materials £643,574715,084835,521
Other expenses £281,306319,404270,535
Biscuits and confectionery made £1,575,1551,810,8041,786,148
Total value of output £1,688,1911,964,1301,921,314
Number of—Fruit-preserving and Jam-making.
  Works171617
  Persons engaged425427449
Salaries and wages paid £56,32864,13378,798
Fruit used Tons4,6214,5055,128
Cost of—   
Fruit used £78,27271,76385,629
Sugar and other materials £134,629155,911205,246
Other expenses £40,86850,96243,273
Jams and jellies made—   
  Quantity Cwt.53,73859,52655,808
  Value £153,961167,136183,997
Fruit bottled or canned £92,87690,92692,883
Other products—Value £114,314129,432187,640
Total value of output £361,151387,494464,520
Number of—Breweries and Malt-houses.
Establishments494949
  Persons engaged9181,0361,155
Salaries and wages paid £230,772267,951319,250
Barley used in production of malt Bushels585,601634,343716,675
Hops used Cwt.4,3795,3466,156
Sugar used Cwt.24,92227,47035,103
Total cost of materials used £421,453550,150736,971
Other expenses* £1,027,4021,127,8981,364,514
Ale brewed Gallons10,600,64812,554,62715,284,142
Stout brewed Gallons900,0751,018,7311,212,674
  Value of output* £1,999,2592,402,7402,922,629
Number of—Aerated-water and Cordial Factories.
  Works129116120
  Persons engaged529544609
Salaries and wages paid £102,698115,519132,551
Total cost of materials used £96,837116,678157,555
Other expenses £80,10484,615108,366
Aerated waters—in bottles Dozen1,661,5442,020,0562,671,329
Aerated waters—In bulk Gallons122,957159,937252,497
Cordials—In bottles Dozen51,90861,66677,543
Hop-beer—In bottles Dozen81,313107,61292,555
Hop-beer—In bulk Gallons43,71421,91760,329
Total value of output £327,106375,082497,169
Number of—Sauce, Pickle, and Vinegar Making.
  Works181617
  Persons engaged250254272
Salaries and wages paid £41,58347,26351,372
Cost of materials used £96,28995,03399,182
Other expenses of manufacture £41,45246,04642,885
Vinegar produced—   
Quantity Gallons694,252668,802774,809
  Value £34,74137,36739,302
Total value of output £217,209222,264232,095
Number of—Soap and Candle Works.
  Works232220
  Persons engaged492553552
Salaries and wages paid £89,187107,259107,727
Cost of materials used £278,063299,478308,872
Other expenses £76,86882,36777,537
Soap manufactured Tons9,1157,6207,253
Toilet soap—Quantity Doz. tabs.*838,717796,778
Soap-powder (including washing-powder) lb.3,864,6985,072,1285,868,898
Candles manufactured lb.2,302,6032,041,9271,640,452
Total value of output £574,191578,569565,871
Clothing Factories.
Number of works318336357
Number of persons engaged—   
  Males1,5721,7711,900
  Females8,72410,05711,016
Salaries and wages paid—   
  To males £319,551400,393458,136
  To females £705,959921,9951,084,797
Cost of materials used £1,581,4771,849,3801,899,310
Other expenses £352,875303,630329,941
Output—   
  Suits No.218,043256,703264,339
  Shirts Dozen143,690169,270184,341
  Hats and caps (men's and Dozen boys')28,30424,03534,893
  Hats (women's) Dozen105,577118,670126,925
Total value of output. £3,090,0273,603,1073,962,056
Number of—Hosiery Factories.
  Works333535
  Persons engaged1,0121,2261,298
Salaries and wages paid £114,379146,623167,975
Cost of materials used £213,417306,276318,281
Other expenses £64,64670,55270,907
Total value of output £461,653564,990590,253
Boot and Shoe Factories.
Number of works757170
Number of persons engaged—   
  Males1,5711,6751,663
  Females1,2171,4331,418
Salaries and wages paid—   
  To males £264,082315,998320,790
  To females £96,602122,086130,456
Cost of materials used—   
  New Zealand leather £312,806397,049348,194
  Imported leather £143,546163,090161,874
  Other materials £149,954175,605203,641
  Total £606,306735,744713,709
Other expenses £110,229122,888126,142
Manufactures—   
  Adults' boots and shoes Pairs1,642,7311,760,2531,657,962
  Children's boots and shoes Pairs169,933241,212199,849
  Slippers Pairs988,6051,208,6481,344,229
  Uppers Pairs1,1001,6931,103
Total value of output £1,140,6461,384,1861,386,914
Number of—Flax-mills.
  Mills293233
  Persons engaged506540537
Salaries and wages paid £69,36792,202104,169
Paw flax used—   
  Quantity Tons59,37563,22764,864
  Cost £18,65716,00012,456
Other materials £1,2492,6671,898
Other expenses* £55,26564,93670,030
Fibre dressed Tons6,7706,9517,006
Tow produced Tons1,1521,2491,402
Total value of output £138,336179,323177,512
Number of—Sawmills.
  Mills448467474
  Persons engaged7,2078,0058,364
Salaries and wages paid £1,320,8431,669,5971,936,901
Cost of materials used £1,187,2321,369,7111,570,599
Other expenses £1,003,9671,116,0261,208,778
Sawn timber—   
  Quantity Ft.293,075,313305,889,418322,765,786
  Value £2,292,7982,639,7373,028,656
Posts, rails, &c.—Value £6,9769,63012,793
Resawing, planed flooring, skirting, &c.—   
  Quantity Ft.55,724,75362,465,49064,422,316
  Value £841,8681,024,1811,144,621
Doors and sashes—Value £160,669109,579118,112
Other products £442,725641,804756,951
Total value of output £3,745,0364,424,9315,061,133
Number of— Gasworks. 
  Works464646
  Persons engaged1,7791,8681,920
Salaries and wages paid £408,959451,574499,303
Coal used—   
  Quantity Tons204,807219,634221,236
  Cost £370,114397,087426,651
Other expenses £384,890350,479346,573
Total gas generated 1,000 cub. ft.3,885,1653,997,0464,093,467
Gas sold 1,000 cub. ft.3,324,3573,444,2243,539,574
Coke sold Tons66,62867,20670,762
Tar sold Gallons2,500,1272,443,1912,849,050
Total receipts £1,380,5881,424,7491,497,515
Total expenditure £1,163,9631,199,1401,272,527
Number of-Electric Current (see also Section XLV).  
  Works999898
  Persons engaged3,9124,2504,668
Salaries and wages paid £932,3561,080,1221,236,952
Horse-power available H.p.497,025499,780581,865
Fuel used—   
  Coal Tons10,4959,96214,869
  Crude oil Tons5061,4061,974
Units generated1,031,698,6431,141,957,7601,252,561,760
Revenue £4,868,1605,138,4365,691,941
Expenditure £4,612,9504,983,7685,360,217
Units retailed775,371,527856,395,730975,504,178
Number of— Lime and Cement Works. 
  Works576064
  Persons engaged7599531,050
Salaries and wages paid £165,592212,657266,756
Cost of materials used £153,893165,991230,065
Other expenses £244,208399,301345,257
Cement produced Tons122,449151,277172,784
Total value of output £703,724836,048945,474
Number of—Brick, Tile, and Pottery Works.
  Works586260
  Persons engaged777909909
Salaries and wages paid £142,242190,038200,835
Cost of materials used £27,00835,67040,571
Cost of coal used £34,42545,19948,901
Other expenses £110,519128,490138,043
Bricks manufactured—   
  Common No.26,784,51026,075,27426,268,109
  Fire No.1,022,477810,1231,095,796
  Other No.1,841,8044,948,2154,998,900
Total value of all bricks manufactured £128,541163,059173,461
  Value of pottery manufactured £187,801224,323272,321
Total value of output £347,562429,981483,206
Tinware and Sheet-metal Works.
Number of—   
  Works127128126
  Persons engaged1,3841,5541,690
Salaries and wages paid £204,118270,608321,498
Cost of materials used £448,354580,883672,617
Other expenses £93,566107,790123,169
Principal Products—   
  Tin canisters and containers £**474,984
  Other tinned ware £**41,209
  Copperware £**131,399
  Leadware £**42,056
  Spouting, ridging and down-piping £**88,306
  Other galvanized ware £**125,688
Total value of output £792,4611,032,3471,191,603
Iron and Brass Foundries.
Number of—   
  Works424448
  Persons engaged791883930
Salaries and wages paid £137,764168,710201,318
Cost of materials used £124,212167,727200,660
Other expenses £55,35761,79069,764
Total value of output £338,951427,736505,479
Engineering-works.
Number of—   
  Works204206206
  Persons engaged3,3263,7273,898
Salaries and wages paid £602,668774,907874,911
Cost of materials used £729,224842,4881,047,324
Other expenses £300,276330,902340,055
Total value of output £1,784,2742,095,9902,445,495
Printing and Publishing Establishments.
Number of works384381370
  Persons engaged—   
  Males6,0396,1266,240
  Females1,6881,7771,913
Salaries and wages paid—   
  To males £1,403,3411,550,0741,673,385
  To females £172,366199,572225,677
Cost of materials used £1,076,9421,179,7941,354,034
Other expenses £981,4841,063,6131,118,116
Total value of output £4,040,1144,406,8044,839,449
Agricultural and Dairying Machinery and Implement Making.
Number of—   
  Works465457
  Persons engaged8801,1521,200
Salaries and wages paid £166,227257,084271,097
Cost of materials used £340,100565,141678,899
Other expenses £72,132101,06195,824
Total value of output £692,1411,091,2751,229,279
Coachbuilding and Motor and Cycle Engineering.
Number of—   
  Works1,1501,2181,307
  Persons engaged6,7318,1859,909
Salaries and wages paid £1,138,9741,600,7302,120,280
Cost of materials used £1,220,2431,557,9251,814,997
Other expenses £420,943472,663700,502
Value of work done—   
  Coachbuilding £524,953705,707831,696
  Motor engineering £2,697,6733,628,5204,756,737
Tanning.
Number of—   
  Works161413
  Persons engaged543571497
Salaries and wages paid £104,888117,755119,890
Cost of materials used £308,405396,548376,680
Materials operated upon—   
  Sheep-skins No.196,901248,112210,697
  Hides, pelts, &c. No.470,056447,243410,001
Bark used Tons1,7261,579917
Cost of bark extract used £18,49024,69724,899
Other expenses £71,50672,70468,210
Output—   
  Scoured and slipe wool lb.458,939643,283448,227
  Pelts No.176,291235,819184,111
  Leather lb.6,469,2625,795,4295,110,424
  Basils lb.52,564302,976212,804
Total value of output £519,157614,113583,287
Woolscouring and Fellmongering.
Number of—   
  Works363435
  Persons engaged397414379
Salaries and wages paid £67,10484,15080,849
Cost of materials used £829,8071,376,599994,748
Materials operated upon—   
  Sheep-skins No.1,284,5331,434,2981,350,085
  Greasy wool lb.17,454,19322,330,50915,903,362
  Hides, pelts, &c. No.9,97612,74318,126
Other expenses £35,53441,85635,855
Principal products—   
  Scoured and slipe wool lb.14,788,50417,901,70014,276,696
  Pelts No.217,174217,078167,728
  Pickled pelts No.1,033,6421,067,357960,170
Total value of output £1,017,9791,650,0611,147,173
Woollen-mills.
Number of—   
  Mills121212
  Persons engaged2,6322,7922,748
Salaries and wages paid £360,782405,484422,240
Scoured wool used—   
  Quantity lb.4,416,7684,731,3574,269,551
  Cost £348,532474,773506,665
Cost of other materials used £64,557102,76496,881
Other expenses £157,916171,952165,345
Output—   
  Tweed and cloth Yards1,367,7691,612,4291,352,088
  Flannel Yards742,354668,330714,174
  Blankets airs156,936167,535164,680
  Rugs and shawls No.60,10179,64877,603
  Yarn lb.800,160904,967791,115
Total value of output £1,005,8301,230,8291,258,319
Ship and Boat Building.
Number of—   
  Establishments242729
  Persons engaged556726690
Salaries and wages paid £122,206175,457182,325
Coat of materials used £83,276125,906112,625
Other expenses £29,30437,06740,856
Number of vessels built121611
Total value of output £241,482354,118349,800
Furniture-making Works.
Number of—   
  Factories308338381
  Persons engaged2,2622,8073,145
Salaries and wages paid £376,261528,567626,628
Cost of materials used £490,183649,241793,270
Other expenses £106,150131,801136,415
Total value of output £1,029,9481,380,4921,659,391
Superphosphates and Chemical Fertilizers.
Number of—   
  Works888
  Persons engaged690753902
Salaries and wages paid £149,020186,208240,319
Cost of materials used £820,695901,2081,112,202
Other expenses £217,541248,995194,641
Products—   
  Superphosphates Tons322,522347,469402,076
  Chemical fertilizers Tons31,54948,67465,133
Total value of output £1,360,1231,498,2281,809,471

Chapter 23. SECTION XXII.—BUILDING AND CONSTRUCTION.

INTRODUCTORY.

WITHIN the short span of a century New Zealand has been transformed from a virgin wilderness into a country whose community enjoys the amenities of modern social and industrial life. In the pioneer stages of colonization, the development of the resources of the Dominion demanded an almost mushroom growth of building and construction activity in the formation of railways, roads, and harbours, in addition to provision for the housing needs of a rapidly growing population. More recently the utilization of vast resources of water-power has involved major schemes of construction of hydro-electric stations in various parts of the Dominion, and the reticulation of practically the whole of the inhabited portion of the country. Land-settlement and the growth of factory industries have both required extensive building and construction works, rural and urban, while the increasing housing needs of a growing population are reflected in a steady long-term increase in the building of dwellings. The increase in trade and industry, with the resultant growth of the towns, has been accompanied by extensive construction of factories, shops, offices, warehouses, &c.

With the passing of the early stages of social and industrial development, replacements of obsolete and obsolescent structures and general maintenance have occupied a larger place in recent building and construction activity than was the case formerly; although, indeed, there have been new avenues of industry requiring further major building and construction operations. For example, the recent development of aviation in the Dominion required the formation of a chain of landing-grounds and air-ports, a work which is still being pushed forward; while the increase in motor traffic has necessitated a reorientation of roading policy, much new construction and extensive alterations to the surfaces of existing roads being required. The diversification of the Dominion's factory industries in recent years has involved extensive building operations—particularly in the engineering trades—while modernization of factory equipment and of shop and office accommodation has been responsible for a further appreciable proportion of building activity.

The building and construction industry is particularly sensitive to cyclical fluctuations in business conditions, and it is not surprising to note that in New Zealand marked changes in building activity coincide with the ebb and flow of trade and industry. Governmental policy in regard to public-works construction is, and has been, directed towards accelerating State activity in this direction in times of depression, with a view to alleviating unemployment. While considerable success has been achieved on various occasions, at other times the expansion of public works has been prohibited by the straitened condition of the national finances. During the recent depression this factor resulted in the severe curtailment of public-works expenditure, although considerable assistance was given to private and public building enterprises through the agency of the Employment Promotion Fund. Private building, both of dwellings and of business premises, suffered a severe setback during the years 1931-33; but since 1933—and more particularly since the beginning of 1935—a substantial revival in building activity has taken place. Available statistics indicate severe curtailment in private building activity during previous depressions, followed by periods of recovery.

An interesting feature of building and construction activity in New Zealand is the absence of a marked seasonal decline in the winter months. The Government in planning public works, endeavours, with success, to make the period of greatest activity coincide with the slack season of the year for industry in general. Again, winters are not sufficiently severe, except in a few districts, to interfere materially with the building of dwellings or other construction work.

The function of the State in the stimulation of building and construction enterprise is twofold. Public works, involving both new construction and the maintenance of existing works, are in themselves responsible for a large percentage of the Dominion's total annual building and construction activity. Furthermore, the State encourages private building in various ways. The State Advances Corporation (see Section XXIVD of this Year-Book) has done much to facilitate home building and land development, while State assistance has also been given in various other forms—e.g., subsidies from the Employment Promotion Fund. As will be seen under a subsequent heading, a big programme of house-building by the State has been undertaken.

THE LONG TERM TREND OF BUILDING AND CONSTRUCTION ACTIVITY.

A collection of annual statistics of building permits issued in cities, boroughs, and town districts was initiated in 1921-22; while a monthly collection on a more restricted scale was begun in 1926. Since 1925-26 statistics have been collected directly from builders, affording, inter alia, an analysis of costs, &c., not available from the building permit statistics. It will be realized that these statistics are of too recent origin to give an indication of the long term progress of building and construction. There are available, however, certain statistical data from which the development of building activity can be deduced. The following significant criteria have been selected as presenting an informative picture without the intrusion of too much detail:—

  1. Consumption of building materials—

    1. Production, plus imports less exports–i.e., approximate local consumption—of sawn timber.

    2. Imports of corrugated galvanized sheet-iron.

    3. Local production of bricks.

    4. Imports of channel and girder iron (since 1915).

  2. Relevant data from the population census are shown for each census date since 1871 (the earliest available date).

The data in respect of the first heading are presented in the following table at five-yearly intervals from 1880 to 1930 and annually since 1930.

CONSUMPTION OF CERTAIN IMPORTANT BUILDING MATERIALS.

Year.Sawn Timber.Bricks.Corrugated Iron.Channel and Girder Iron.
* Not available.
 Million Ft., B.M.Millions.Thousand Cwt.Thousand Cwt.
1880139.428.64.0*
1885184.334.76.9*
1890127.916.081.9*
1895157.319.0117.4*
1900214.641.3227.9*
1905272.570.6296.3*
1910231.863.6355.8*
1915197.349.4255.973.6
1920252.252.6367.442.4
1925361.372.9233.297.5
1930252.144.5353.1171.4
1931142.612.7206.682.2
1932144.99.2192.825.1
1933182.712.7200.128.1
1934219.323.4273.485.0
1935270.329.6327.099.8
1936304.631.8424.7112.7
1937334.932.4408.8209.5
1938332.836.7268.4240.8

NOTE.—Particulars of sawn timber from 1910 onwards and of bricks throughout are (approximately) for the year ended March following. Otherwise figures relate to calendar year

Between 1880 and 1885 production of bricks increased by 21.3 per cent. and imports of corrugated sheet-iron by 72.5 per cent. The depression of the “nineties” is reflected in the sharp decreases in the figures for sawn timber and bricks shown for 1890—despite a material increase in population since the 1886 census. Imports of corrugated iron provide an interesting exception, this material evidently coming into use to a greater extent than formerly. An improvement in building activity is suggested by the statistics shown for 1895, building being no doubt stimulated by the fact that the first State Advances Act, passed in 1894, came into operation in 1895. The 1900 statistics indicate a substantial increase in building activity since 1895—considerably in excess of the population increase between the 1896 and 1901 census dates. The year 1905 would appear to have been a “boom” year in respect of building activity, judging by the statistics shown for timber consumption and for production of bricks. Imports of corrugated iron also display a material increase, though not to the same extent as other building materials. The depression of 1908-10 is reflected in a fall—as compared with 1905—in the 1910 statistics for timber and bricks; corrugated iron again being an exception.

The abnormal conditions created by the war of 1914-18 are reflected in the figures for 1915, while the 1920 and 1925 statistics show substantial increases. In 1930 the effects of the depression on building activity were beginning to be felt, while the statistics from 1931 onwards illustrate the fall in the depression years and the recovery in 1934 and subsequent years.

A feature of particular interest is the remarkable rise in imports of channel and girder iron between 1920 and 1930 and again in the post-depression years, accompanied by a substantial decline since 1925 in the production of bricks—a reflection of the increased use during recent years of steel and concrete in large-scale building construction. Imports of corrugated iron declined sharply after 1930, but, commencing with 1934, sharp yearly increases culminated in a record high level in 1936. There was only a slight decline in 1937, and the sudden fall in 1938 would appear to indicate that there had been over-importation of this commodity in the previous two years, although a contributing factor is the increase in the use of tiles for roofing purposes.

In the following table the number of inhabited private dwellings (including flats, tenements, &c.) at each census date since 1871 is shown, while the movement in these figures is compared with inter-censal increases in population. Hotels and institutions are not included in the dwelling figures shown, nor are Maori dwellings.

Census ofNumber of Private Dwellings.Inter-censal Increase in
Private Dwellings.Population.
  Per Cent.Per Cent.
187157,182....
187461,3567.3016.82
187882,588834.6038.36
188195,75015.9418.22
1886111,97116.9418.07
1891123,85110.628.33
1896141,33914.1212.24
1901158,89812.429.86
1906184,45716.0914.99
1911215,42516.7913.49
1916238,06610.519.02
1921260,2299.3110.87
1926299,99715.2810.30
1936349,90516.6410.93

The rate of population increase exceeded that of private dwellings during each inter-censal period between 1871 and 1886; while each census between 1886 and 1916 revealed a greater increase in the number of private dwellings than in population. Except for the first and the last two periods shown in the table (1871-74, 1921-26, and 1926-36) there was, however, little disparity between the inter-censal increases shown by the two sets of figures. The growth in private dwellings between 1916 and 1921 was slightly less than the population increase, the five-yearly period between those years including the later years of the 1914-18 war. The increase in private dwellings between 1921 and 1926 exceeded considerably the population increase, as also was the case between 1926 and 1936. The general trend since 1886 has been for the rate of increase of private dwellings to exceed the population increase, no doubt largely clue to the decrease in the size of the average family. The census definition of a private dwelling covers the residence of a family, whether a separate house, a tenement, a flat, or rooms in a house. From this definition it follows that an increase in private dwellings docs not necessarily denote a corresponding increase in housing capacity. The recent increase in flat dwelling, for example, is an influence of importance, since each separate flat is counted as a private dwelling. It will be realized also that regional factors are of very great importance, since many obsolete dwellings will be included in the figures for declining towns; while, again, the rate of increase in dwellings in rapidly-growing localities may be inadequate to cope with the population increase.

The statistics of occupational and industrial distribution of the population and of unemployment, compiled as part of the census of population, indicate the growth of building and construction activity. Data are available in a comparable form back to the 1891 census, except for unemployment (1896).

PERSONS ENGAGED IN CONSTRUCTION AND REPAIR OF BUILDINGS, ROADS, RAILWAYS, ETC.

Census ofWage-earners.Total Persons engaged.
Total.Employed.Unemployed.
Number.Inter-censal Increase.Number.Per Cent. of Total.Number.Inter-censal Increase.
* Decrease.
   Per Cent. Per Cent. Per Cent.
18918,836........12,601..
189611,53310,026..1,50713.0715,37822.04
190118,31517,43873.938774.7922,89248.86
190625,98624,81742.321,1694.5031,71538.54
191129,37128,50214.858692.9636,97916.60
191620,52319,782-30.60*7413.6127,319-26.12*
192125,63724,56924.201,0684.1733,59322.97
192634,98933,84937.771,1403.2643,30728.92
193639,47132,412-4.25*7,05917.8845,9256.05

The statistics quoted above indicate a steady growth between census dates in both the total number of persons and the number of wage-earners engaged in the building and construction industry, with one exception (in 1916). The decline on that occasion is, however, attributable to war conditions, including the absence of an appreciable proportion of the male population of the working ages. Prior to 1936 the only census date on which unemployment had attained any serious proportions was that of 1896, in which year business conditions were abnormally depressed. Although a serious state of affairs in this connection was revealed by the figures for 1936, it will be evident from the statistics quoted in a later portion of this section (page 562) that the position had improved materially since the 1931-33 period, when the number of persons engaged in the building and construction industry had fallen to very low levels.

The next table, compiled from the census data, indicates the long period changes in the importance of the building and construction industry relative to that of other industries.

Year.Total Number of Persons gainfully occupied.Persons engaged in Building and Construction.
Number.Per Cent. of Total gainfully occupied Persons.
1891252,76312,6014.99
1896292,93215,3785.25
1901340,23022,8926.73
1906399,08531,7157.95
1911454,11736,9798.14
1916432,21627,3196.32
1921506,29333,5936.64
1926552,93043,3077.83
1936646,89345,9257.10

POST-DEPRESSION HOUSING SITUATION.

As will be obvious from a perusal of the statistics of building permits and building construction given later on in this section, building-operations fell to small proportions during the depression years. With the advent of better times, accompanied by a large increase in the number of marriages and a growing tendency to discontinue the sharing of homes between two families, there arose in many cities and towns a housing demand in excess of the available supply. The position was aggravated by the fact that a considerable proportion of the existing dwellings did not comply with modern standards of comfort, convenience, and sanitation.

HOUSING SURVEY.

The question of relieving the shortage of suitable housing-accommodation received governmental attention, and in 1935 a Housing Survey Act was passed as a preliminary towards a planned programme of housing reform. This Act applied to (1) the Councils or Boards of all boroughs and town districts with not less than 1,000 population, (2) two suburban Road Boards, and (3) any other local authority to which the Act might be applied by the Governor-General in Council. Each authority was required to make a housing survey of its district or—with ministerial approval—of a defined area or areas within the district.

By 31st March, 1939, housing surveys had been carried out in 115 of the 119 local districts affected, and the following summarized results emerge in respect of the area covered :—

Total population901,353
Total dwellings25,363
Buildings used as dwellings : Unsatisfactory, but repairable31,663
Buildings used as dwellings: Totally unsatisfactory6,827
Dwelling units in which equipment is only partly satisfactory23,768
Dwelling units in which equipment is totally unsatisfactory20,096
Dwellings at present providing accommodation below the minimum standard27,214
Surplus persons accommodated in dwellings below minimum standard68,405
Dwellings at present overcrowded9,835
Surplus persons in overcrowded dwellings14,761

The classification of dwellings as to (1) whether satisfactory as regards physical fitness, (2) whether providing adequate accommodation, and (3) whether overcrowded, was made on the basis of standards laid down by regulations under the Housing Survey Act. The standards of physical condition are too detailed for repetition here, and it will be seen that, while 38,490 dwellings failed to measure up to the standards in one or more respects, in all but 6,827 cases the deficiencies were repairable. Equipment was wholly or partly unsatisfactory in 43,864 of the houses covered.

The standard of minimum accommodation, which some 27,214 dwellings failed to reach, was laid down as follows :—

  1. For every dwelling unit—

    1. Kitchen or other living-room.

    2. Bedroom or bedrooms according to the standards of number and space used for the purpose of estimating overcrowding (see below).

    3. Bathroom.

    4. Water-closet pan either in bathroom, in lavatory, or in separate closet.

  2. For a boardinghouse or lodginghouse there must be adequate dining-room and living-room space in addition to kitchen, and sanitary accommodation must be provided in the proportion of one bathroom and one water-closet for every ten persons and one lavatory-basin for every seven persons.

In each of the cases set out above living-rooms and bedrooms were to be included only if belonging exclusively to the dwelling unit, and bathrooms and water-closet pans to be included only—

  1. If belonging exclusively to the dwelling unit; or

  2. If shared, then if used by not more than seven persons.

A dwelling was deemed to be overcrowded in the following circumstances:—

  1. If the number of persons sleeping in the house is such that any two of those persons, being persons ten years old or more of opposite sexes and not being persons living together as husband and wife, must sleep in the same bedroom.

  2. If more persons than the number of persons: shown in the second column of the table below must occupy any bedroom of the floor areas set out in the first column opposite those numbers of persons—

Floor Area of Bedroom.Number of Persons.
(a) 45 square feet and under 60 square feet1/2 person.
(b) 60 square feet and under 80 square feet1 person.
(c) 80 square feet and under 100 square feet1½ persons.
(d) 100 square feet and under 120 square feet2 persons.
(e) 120 square feet and under 150 square feet2½ persons.
(f) 150 square feet and under 190 square feet3 persons.
(g) 100 square feet and over3½ persons.

Children under one year of age were not taken into account, and those one year but under ten years were each counted as one-half of a person. In computing the number and size of bedrooms, no regard was to be had to—

  • Any room which is not normally used as a bedroom.

  • Any bedroom which has a floor area of less than 45 square feet.

  • Any room in which cooking takes place.

  • Any bedroom in which the height of the ceiling is less than 8 ft. over at least one-half the width of the room.

  • Any portion of a bedroom in which the height from the floor to the ceiling is less than 5 ft.

The results of the housing survey reveal, on the standards laid down, a considerable degree of shortcoming in various respects among existing dwellings, though it will be obvious that in many cases a dwelling comes within two, three, or four of the unsatisfactory categories.

CENSUS STATISTICS.

As at previous census enumerations, the 1936 census statistics of “overcrowding” are based on a consideration of numbers of persons present on census night (i.e., including visitors, but excluding members of household temporarily absent) in relation to the total number of rooms. In counting the number of rooms, householders were requested to omit scullery, pantry, laundry, bathroom, sleeping-porch if not wholly enclosed, and any other “room” of less than 50 square feet of floor space. With this exception the size of the rooms was not taken into account, and no attempt was made to ascertain the number of bedrooms and to take only these into consideration. The omission of boardinghouses and apartment houses (but not flats) from the census statistics is another important factor affecting the comparability of the census and the housing survey figures of overcrowding. On the other hand, it should be noted that the census figures cover the whole Dominion (excluding Maoris and their residences, however), while the housing survey was in effect limited to towns of over one thousand population.

For the purpose of the census compilation, “overcrowding” was deemed to occur when the number of persons for dwellings of various room categories was in excess of the following standard:—

Number of Rooms.Number of Persons.
* Plus two for each room in excess of five.
One2
Two3
Three5
Four
Five or over10*

As in the housing survey, a child under one year of age was not taken into account, and a child one year or over but under ten was counted as one-half of a person.

The table which follows shows the number of “overcrowded” dwellings on this basis, and also shows the number of “unoccupied” dwellings. The figures for the latter do not include cases where the occupants were temporarily absent on the census night (5,784), nor unoccupied “baches,” &c. (8,435). Further, sub-enumera were instructed not to count as dwellings any unoccupied dwellings which were both deserted and dilapidated.

Number of Occupied Dwellings.Number of Unoccupied* Dwellings.
Total.Overcrowded.
* Excluding dwellings whose occupants were temporarily absent, also excluding “ baches,” &c.
Urban areas—   
Auckland50,698277572
Wellington34,304249276
Christchurch32,290146565
Dunedin19,59784247
Hamilton4,4084525
Gisborne3,6622147
Napier4,4612281
Hastings4,1863840
New Plymouth4,3542742
Wanganui6,0502363
Palmerston North5,5673343
Nelson3,087532
Timaru4,3993155
Invercargill5,9233253
Remainder of Dominion—   
Urban53,322398753
Rural113,5972,2893,700
Totals349,9053,7206,594

Unoccupied dwellings are seen to have outnumbered “overcrowded” dwellings (on the census standard adopted) not only in the Dominion as a whole, but in thirteen of the fourteen urban areas.

STATE HOUSE-CONSTRUCTION.

A programme of direct home building by the Government is being vigorously prosecuted. The purpose of this branch of the Government's activities is to provide homes of a modern standard of comfort to be let at reasonable rentals to people in the medium and lower income groups. The legislative provision for this programme is contained in the Housing Act, 1919, the administration of which was transferred to the State Advances Corporation by the State Advances Corporation Act, 1936. To give effect to the Government's policy a Director of Housing Construction was appointed in September, 1936, and a special Housing Construction Branch of the State Advances Corporation was set up. The State Advances Corporation Act, 1936, made provision for a special Housing Account with the Reserve Bank, the amount outstanding on this account at 31st March, 1939, being £5,600,000. The Statutes Amendment Act of 1936 provides for the necessary authority to acquire land under the Public Works Act, 1928, for the purpose of housing. At 3lst March, 1939, the total value of freehold land purchased and held for housing purposes was £922,130.

The actual construction work is carried out by private contractors, tenders being called by the Housing Construction Branch of the State Advances Corporation for the various contracts.

The annual report of the Department states that progress has been considerably retarded by a shortage of skilled labour; and, in order to assist in this direction, arrangements were made for the importation of a considerable number of artisans from Australia and Great Britain. The number of persons employed on the various contracts as at 31st March, 1939, was 5,428.

Particulars as to the numbers, &c. of houses commenced since the inception of the scheme, together with more detailed information in regard to activities during the year 1938-39, will be found under the next heading.

A scale of basic rentals for various classes of houses has been fixed as follows:—

   Per Week.
* In two-house units.
 £s.d.
* Three-roomed flat100
* Three-roomed flat (with sun-porch)126
Four-roomed house176
Four-roomed house (with sun-porch)190
Five-roomed house1106
Five-roomed house (with sun-porch)1120
Six-roomed house1136

In each instance a rebate of 2s. 6d. per week is deductible from the above rentals for good tenancy.

Separate provision for Native housing is made under the Native Housing Act, 1935, reference to which will be found in Section XVII, Subsection C, (Native Lands).

In addition to the activities briefly outlined above, the housing policy of the Government includes the provision of loans to local authorities at 3 per cent. per annum for the furtherance of municipal and other housing schemes. During the year ended 31st March, 1939, twenty-three such loans aggregating £203,000 were granted, while the total amount outstanding on this account at the end of the year was £302,174. Money has also been made available at 3 per cent. to co-operative dairy companies for the financing of housing schemes for their employees. By the Rural Housing Act, 1939, a County Council is empowered to advance money to a farmer for the purpose of erecting a dwelling for his own use or for the use of any farm worker who is principally employed by him. Where any farm is situated within any borough, town district, or road district similar powers are conferred on the local authority concerned. Local authorities may raise special loans for this purpose. Reference to the provisions made for the governmental financing of home-building on behalf of private owners is contained in the section of this Year-Book dealing with State Advances (Section XXIVD); while reference should also be made to the section on Mortgages (Section XXXII) for details of the legislative provisions made for the release of certain classes of house-owners from the burden of excessive mortgage indebtedness.

BUILDING PERMITS.

ANNUAL STATISTICS.

While the somewhat fragmentary statistics of consumption of building materials quoted under a previous heading afford an indirect indication of the long term movement in-building and construction activity, direct evidence as to the changes in this industry, prior to 1922, is available only from the census data. Expenditure on public works by the General Government is included in this and previous issues of the Year-Book in the section relating to Public Finance. Statistics of building permits issued in cities, boroughs, and town districts during each March year have been collected for 1921-22 and subsequent years—for use, inter alia, as an aid in compiling inter-censal estimates of population. These statistics afford a conspectus of changes in building activity from year to year. There is, however, a factor which may affect to some extent the accuracy of the figures as a guide to short-period fluctuations in building activity. This applies more particularly to buildings other than dwellinghouses, and is found in the fact that the value shown represents, in the great majority of instances, the total contract price or estimated cost of the whole building. A permit for an exceptionally large building involves building activity spread over many months, whereas in the permit statistics the value is shown wholly for the year or month in which the permit is issued. This qualification applies with greater force to the monthly statistics, quoted in the next portion of this section, than to the annual statistics.

The scope of the collection was widened by the inclusion in 1926-27 of three road districts—increased to six in 1927-28—in Eden County (suburban to Auckland) and further extended in 1928-29 by the addition of two counties — increased to four in 1929-30—adjacent to Wellington and Christchurch. Of the six road districts in Eden County, two were amalgamated with Auckland City from 1st April, 1928, and one became a borough from 1st April, 1930.

As a result of the extended scope of the returns, the comparison has been somewhat impaired, and the next table shows the figures under two heads—viz., one giving the totals for all districts covered in the particular year and the second giving the totals for only cities, boroughs, and town districts.

The aggregate population of the areas covered by the statistics comprises 62 per cent. of the total population of the Dominion. Although 38 per cent. of the population resides in the rural areas outside the ambit of this statistical inquiry, it appears that, with the exception of several counties adjacent to large towns, building activity in these areas accounts for only a small percentage of the Dominion total. However, commencing with the year 1937-38, an attempt was made to obtain and compile data in respect of building activity in these rural areas (vide later in this section).

BUILDING PERMITS—URBAN DISTRICTS .

Year ended 31st March,All Districts covered.Cities, Boroughs, and Town Districts.
Number of New Private Dwellings.Value of New Buildings: All Classes.Total Value All Buildings (including Alterations and Additions).Number of New Private Dwellings.Value of New Buildings: All Classes.Total Value All Buildings (including Alterations and Additions).
 No.££No.££
1,9224,3304,602,8345,283,0124,3304,602,8345,283,012
1,9235,0256,124,4397,101,6815,0256,124,4397,101,681
1,9246,2457,708,9339,146,4796,2457,708,9339,146,479
1,9255,8057,823,3319,304,1605,8057,823,3319,304,160
1,9266,8508,613,54910,169,5306,8508,613,54910,169,530
1,9277,1799,357,97711,019,3896,7528,944,33410,575,535
1,9285,6908,127,7329,665,2165,3887,843,7739,353,055
1,9295,2127,326,4649,054,4214,8716,988,4088,691,962
1,9305,7477,917,3499,959,8775,2287,362,9989,336,301
1,9313,4634,240,2385,473,3953,2004,056,2745,260,620
1,9321,5551,936,4472,728,4861,4151,847,5082,620,651
1,9331,4961,874,7952,474,8661,3061,773,3132,341,690
1,9342,6493,141,8973,889,8902,4162,987,7733,718,717
1,9352,8922,742,4953,643,6882,6552,612,6843,492,062
1,9364,1404,695,7365,929,8033,8354,468,1265,674,198
1,9374,5554,927,3266,581,2334,2074,675,3636,273,444
1,9386,0438,217,40010,291,6135,5687,876,3529,909,225
1,9398,09310,196,47612,126,4587,4259,555,74711,431,491

Prior to 1936-37 each block of flats was included as a single dwelling, but now that more information is available each individual flat is counted as a separate dwelling. Blocks of flats so included in all districts numbered 34 in 1928-29; 36 in 1929-30; 9 in 1930-31; 4 in 1931-32; 4 in 1932-33; 6 in 1933-34; 34 in 1934-35; and 22 in 1935-36. The 1936-37 total for all districts includes 421 flats (98 blocks) and of these 417 flats (96 blocks) are included in “cities, boroughs, and town districts”; while the figures for “all districts” in 1937-38 include 519 flats (128 blocks), and of these, 490 flats (118 blocks) are included in ” cities, boroughs, and town districts.” The corresponding figures for 1938-39 are 374 (92 blocks) for “all districts” and 341 (81 blocks) for “cities, boroughs, and town districts” only.

The figures shown for the number of new private dwellings erected reflect the recent marked movements in building activity. The previous peak level was reached in 1925-26, when 6,850 new dwellings were erected in cities, boroughs, and town districts. The low point during the eighteen years covered by the table occurred in 1932-33, when only 1,306 new private dwellings were erected. The 1935-36 statistics revealed a marked increase as compared with the position for some years previously, with a further, though not so pronounced, increase revealed in the 1936-37 totals. The number erected in 1937-38 showed a very large increase, while both number of new dwellings and total value of all buildings for the year 1938-39 is the highest attained since the inauguration of the statistics of building permits in 1922.

The figures shown for “cities, boroughs, and town districts” cover the districts existing in the year to which the statistics refer. Since these statistics were inaugurated, however, several new boroughs and town districts have been created and are accordingly included. This gradual accession has tended to raise slightly the figures for later years. Considering only cities, boroughs, and town districts, the total value of all building operations reveals marked fluctuations. The total value of £10,575,535 in 1926-27—hitherto the peak year covered by the table—probably represented the highest level in the history of the country until the present year, 1938-39. The value in 1932-33—the low point since 1921-22—was only 20 per cent. of the 1938-39 maximum. The 1938-39 total is 15 per cent. higher than that for 1937-38, 388 per cent. higher than 1932-33 (the low point), and surpasses by 8 per cent. the 1926-27 total (the former peak year).

The Dominion aggregate statistics quoted in the preceding paragraphs relate only to the main types of building activity. More detailed statistics are included in the annual Statistical Report on Population and Buildings, where, interalia, permit statistics for individual towns, counties, &c., are given.

A detailed summary of the Dominion totals for the last three years follows:—

BUILDING PERMITS ISSUED—URBAN DISTRICTS .

Private dwellings—   
New buildings—1936-37.1937-38.1938-39.
  Number4,5556,0438,093
  Value£3,437,780£5,317,037£7,518, 199
Value of alterations and additions£527,490£603,535£690,271
Other buildings—   
New buildings—   
  Number755746667
  Value£1,489,546£2,900,363£2,678,277
Value of alterations and additions£1,126,417£1,470,678£1,239,711
Total—   
  Number5,3106,7898,760
  Value£4,927,326£8,217,400£10,196,476
Value of alterations and additions£1,653,907£2,074,213£1,929,082

New private dwellings for 1938-39 show an increase in value of £2,201,162, and alterations and additions an increase of £86,736, compared with the previous year. Increases in both number and value have been recorded during the last six years, and the average value per dwelling has increased considerably. Over the last three years the average value per dwelling has risen from £755 in 1936-37 to £880 in 1937-38 and to £929 in 1938-39. In arriving at the above figures, each flat has been treated as a separate dwelling. The average value per flat for these years was £757, £745, and £853 respectively.

In 1938-39, new “other buildings” decreased by seventy-nine in number and £222,086 in value, while the value of alterations and additions to existing buildings decreased by £230,967 on the figure for the previous year.

The following table arranges districts with minimum building values of £50,000 in 1938-39 in descending order:—

  ££
Wellington City1,823,462Tauranga Borough113,773
Auckland City1,664,647Whangarei Borough109,246
Christchurch City784,797Masterton Borough108,752
Dunedin City632,694Te Awamutu Borough107,644
Lower Hutt Borough458,412Petone Borough96,944
Hamilton Borough331,878Mount Eden Borough95,319
Palmerston North City300,925Nelson City87,986
One Tree Hill Borough285,560Riccarton Borough87,119
Invereargill City249,930Levin Borough76,425
Mount Albert Borough240,896Devonport Borough73,279
Wanganui City196,160Heathcote County69,714
Napier Borough190,709Otahuhu Borough68,696
New Plymouth Borough187,346Ashburton Borough64,851
Waimairi County179,697Dannevirke Borough63,333
Hutt County176,387Takapuna Borough60,825
Gisborne Borough168,415Morrinsville Borough57,942
Mt. Roskill Road District160,217Mt. Wellington Road District57,743
Rotorua Borough147,051Wairoa Borough57,157
Hastings Borough141,675Newmarket Borough56,942
Timaru Borough133,332Johnsonville Town District50,727
Greymouth Borough125,719....

GOVERNMENT HOUSING.

The erection of houses by the Housing Construction Branch of the State Advances Corporation was commenced in March, 1937, and 22 houses were included in the 1936-37 figures, with a further 1,895 in 1937-38. During the year ended 31st March, 1939, 3,445 houses (each dwelling-unit is counted as a house) were commenced, of which 3,432 are included in urban districts, the remaining 13 being in rural districts. The total of 3,445 comprised 2,630 single-unit houses, 377 double-unit houses, 1 three-unit house, 2 four-unit houses, and a block of 50 flats. Of the 3,445 units commenced during the year, 2,225 were in the four major urban areas, the respective totals being: Auckland, 1,084; Wellington, 634; Christchurch, 369; and Dunedin, 138. Houses are also erected by the Native Department under its various development schemes, particulars of which will be found on pp. 388-389.

In addition to the above schemes, dwellings are erected by or for the Public Works Department, Railways Department, Education Boards, &c., and the following table shows all Government housing for the year 1938-39, but excludes houses erected from loans granted by the State Advances Corporation. During 1938-39 the State Advances Corporation granted 2,120 loans for the erection of new dwellings.

URBAN DISTRICTS.

New Dwellings.
Cities or Boroughs 
Whangarei34
Dargaville24
Takapuna14
Devonport35
New Lynn32
Auckland City507
Mount Albert170
Mount Eden16
Ellerslie23
One Tree Hill206
Otahuhu40
Papakura1
Pukekohe8
Huntly22
Ngaruawahia12
Hamilton53
Cambridge15
Te Awamutu33
Te Kuiti20
Taumarunui13
Thames11
Paeroa17
Te Aroha15
Morrinsville10
Matamata10
Tauranga28
Te Puke5
Rotorua43
Whakatane49
Opotiki15
Gisborne27
Wairoa25
Napier73
Hastings42
Waipukurau11
Dannevirke15
Woodville5
Waitara1
New Plymouth33
Inglewood1
Opunake2
Stratford20
Eltham3
Patea6
Wanganui City53
Taihape4
Marton8
Feilding13
Palmerston North City91
Shannon5
Levin8
Otaki8
Lower Hutt242
Petone24
Wellington City327
Pahiatua18
Eketahuna4
Masterton52
Carterton6
Greytown1
Picton3
Blenheim23
Nelson City23
Westport9
Runanga2
Greymouth41
Hokitika21
Ross1
Rangiora8
Kaiapoi15
Riccarton53
Christchurch City251
Lyttelton10
Ashburton13
Temuka28
Timaru56
Waimate22
Oamaru20
Palmerston5
Dunedin City131
Green Island12
Mosgiel23
Balclutha7
Queenstown1
Gore21
Mataura10
Winton2
Invereargill City38
Total3,458
Town Districts 
Independent— 
Kaitaia13
Kaikohe13
Helensville1
Waiuku3
Tuakau5
Otorohanga2
Manunui4
Mount Maunganui1
Taradale1
Havelock North7
Manaia1
Mangaweka1
Johnsonville48
Pleasant Point2
Lumsden6
Total108
Dependent— 
Kohukohu2
Rawene6
Kawakawa1
Mercer1
Te Kauwhata1
Kawhia1
Normanby1
Havelock1
Takaka1
Clinton1
Edendale1
Total17
Road Districts and Counties 
Mount Roskill R.D.42
Hutt County5
Makara County1
Waimairi County57
Total105
Total, urban districts3,688

RURAL DISTRICTS.

New Dwellings.
Counties 
Mongonui38
Whangaroa5
Hokianga22
Bay of Islands7
Whangarei9
Hobson4
Otamatea1
Waitemata10
Franklin5
Raglan3
Waikato5
Waipa5
Waitomo13
Taumarunui4
Coromandel3
Thames2
Hauraki Plains3
Ohinemuri11
Piako2
Matamata3
Tauranga5
Rotorua10
Taupo7
Whakatane13
Opotiki9
Matakaoa11
Waiapu27
Uawa2
Waikohu4
Cook9
Wairoa20
Hawke's Bay19
Waipawa2
Patangata1
Dannevirke4
Clifton3
Inglewood1
Egmont2
Kaitieke7
Waimarino1
Waitotara1
Wanganui9
Rangitikei10
Kairanga1
Horowhenua1
Pahiatua3
Mauriceville6
Featherston2
Marlborough3
Waimea2
Inangahua3
Grey8
Westland4
Tawera4
Malvern6
Paparua1
Ashburton1
Geraldine1
Mackenzie7
Waitaki5
Waihemo1
Waikouaiti1
Taieri1
Bruce3
Clutha5
Tuapeka3
Maniototo1
Vincent1
Southland3
Wallace10
Extra-county islands3
Total, rural districts422

BUILDING PERMITS IN RURAL DISTRICTS.

In view of the widespread interest evinced in building statistics, particularly in regard to housing, an attempt was made to collect data from counties for the year ended 31st March, 1938. For some years building statistics had been obtained from the counties of Hutt, Makara, Waimairi, and Heathcote, and the three road districts (Mount Roskill, Mount Wellington, and Panmure Township) of Eden County. The great majority of the population in these counties and road districts is urban, and they were included in order to obtain more complete statistics of building activity for the urban areas of Auckland, Wellington, and Christchurch.

The collection for rural districts was therefore confined to the remaining counties, with the exception of three (Taupo, Sounds, and Fiord) in which the Counties Act is not in operation. Road Boards are functioning within the counties of Taupo and Sounds, and these were included in the collection. The number of rural districts covered in the 1938-39 collection was 123. including Taupo Road District, and French Pass and Kenepuru Road Districts of Sounds County. Of these districts, returns for the whole county were received from 69, returns for part of the county were received from 2, 34 did not issue permits and were unable to supply reliable estimates, and in 18 instances replies were not received. It is noteworthy that the majority of counties adjacent to the larger towns issue permits, while the purely rural counties, as a rule, do not issue permits. It is probable that the latter class docs not have much building, and it is reasonable to assume that the figures quoted include the bulk of building operations in rural districts.

Data are available for all Government building in rural districts and have been included in the total for rural building.

Excluding the four counties and three road districts which are included in urban districts, the total of rural building (i.e., counties which submitted returns, certain extra-county islands, with the addition of all Government building in rural districts) amounted to £2,120,326 in 1938-39, and includes 1,604 new private dwellings.

The total amount of building for the four counties and three road districts included in urban districts was £694,967 for 1938-39, and includes 668 new dwellings. Particulars of new private dwellings and total value of buildings for the various counties are given in the 1938-39 Statistical Report on Population and Buildings.

MONTHLY PERMIT STATISTICS.

While the annual statistics of building permits issued afford an indication of changes in the annual value and volume of building activity, short-period movements in building activity are of considerable interest, particularly in times of rapid economic change. With the purpose of providing information as to current changes in building activity, the Census and Statistics Department initiated in 1926 the collection of monthly statistics of building permits issued in the larger centres. Although the monthly returns are not on such a comprehensive basis as the annual collection of these statistics, nevertheless towns with an aggregate population of 822,000 are covered. This represents 51 per cent. of the population, but would cover a considerably higher proportion of the total Dominion building.

In the first table following, the number of permits for new dwellings and the total value represented by all permits issued in the larger centres are shown for each month since January, 1931; while the statistics are shown in greater detail from January, 1938, in the second table:—

BUILDING PERMITS IN THE LARGER CENTRES.

Month.Year.
1931.1932.1933.1934.1935.1936.1937.1938.1939.
Number of New Dwellings.
 No.No.No.No.No.No.No.No.No.
January1209484188233291224437675
February1139263162195250238435549
March1036590136225255225547601
April876362107204275308363445
May935185113239337354537641
June90734797213340323434575
July1007917979226344356436624
August9180211149294319415563571
September102122233247312273425579590
October105119211303321232492594501
November10173264246315266459607525
December69100203179261209321384..
Value of all Permits.
 £££££££££
January229,606185,946125,312263,829257,191407,961378,427659,990901,150
February239,089126,65396,812405,133259,379517,974429,237646,811886,597
March257,097124,962301,279613,297332,076458,072486,918829,7641,159,156
April179,044134,19676,028146,822537,172435,463595,064593,262672,977
May187,225112,61398,369272,335346,167422,956604,425846,856897,501
June208,515120,808146,410151,038282,063512,626540,655640,148820,828
July292,309210,342183,886170,753391,384561,382604,377758,8621,314,915
August239,693213,949247,082212,099391,505486,963804,517912,621900,669
September237,892213,524590,720297,231416,004440,237708,230783,919831,856
October177,357193,746259,923391,883399,403428,725802,186991,898659,532
November153,627191,999264,596327,020486,546491,430721,329816,537684,879
December143,386165,222214,670273,653354,107358,638641,571706,326..

(NOTE.—Commencing from April, 1937, each flat has been counted as a dwelling; prior to that date each block of flats was counted as only one dwelling.)

The monthly average number of permits issued for the erection of new dwellings in 1932, the lowest year shown in the table, was 84, although the actual low point was not reached until June, 1933, when only 47 permits were issued for new dwellings. Since 1932, however, the average monthly number of permits has risen each year up to 493 in 1938. Although there has been a slight decline since October, the total for the eleven months of 1939 for which figures are available exceeds the number for the full twelve months of 1938.

It will be observed that the statistics of value of all permits display at times considerable month to month changes. This is due principally to the influence on the figures of permits which may be taken out for exceptionally large undertakings in any one month, the actual work being spread over a considerable period. Nevertheless, the figures indicate clearly a sharp fall during 1931 and 1932. In June, 1932, the former Unemployment Board initiated a building-subsidy scheme, which was, no doubt, largely responsible for the improvement evident in the figures for the later months of the year as compared with those for the earlier months. On completion of the building activity stimulated by the subsidy a further setback became apparent, some of the early months of 1933 showing exceptionally low permit figures, particularly in respect of dwellings. The substantial revival indicated by the statistics for the later months of 1933 was due largely to the influence of a second subsidy scheme, which came into operation in June, 1933. The general trend in the statistics since the end of 1933 has been upwards, with minor recessions. Further building-subsidy schemes were in operation in 1934, 1935, and 1936, the schemes terminating on 1st October. 1936.

As mentioned earlier in this section, houses erected under the Government's housing schemes are included in the building statistics.

DETAILED STATISTICS, JANUARY, 1938, TO SEPTEMBER , 1939.

Month.Alterations to Existing Buildings.New Buildings.Totals.
Number.Value.Dwellings only.Totals.Number.Value.
Number.Value.Number.Value.
  £ £ £ £
January, 1938517109,296437407,992460550,694977659,990
February, 193848994,893435412,487466551,918955646,811
March, 1938736117,473547492,763594712,2911,330829,764
April, 193863394,241363349,086385499,0211,018593,262
May, 1938794111,910537500,731574734,9461,368846,856
June, 193866491,489434415,320475548,6591,139640,148
July, 193871187,254436415,152467671,6081,178758,862
August, 1938844217,685563542,063599694,9361,443912,621
September, 1938900143,052579561,054608640,8671,508783,919
October, 1938690131,109594582,990631860,7891,321991,898
November, 1938778164,524607570,195631652,0131,412816,537
December, 1938930117,669384307,324410588,6571,340706,326
January, 193954989,914675659,788709811,2361,258901,150
February, 193984992,961549534,809586793,6361,435886,597
March, 19391,499341,143601572,985638818,0132,1371,159,156
April, 1939691109,168445441,319478563,8091,169672,977
May, 1939956148,901641632,271678748,6001,634897,501
June, 1939794135,311575583,973603685,5171,397820,828
July, 1939812150,890624614,9396571,164,0251,4691,314,915
August, 1939776126,696571563,958625773,9731,401900,669
September, 193963599,675590585,128621732,1811,256831,856
October, 1939593101,587501490,092518557,9451,111659,532
November, 193968397,031525516,878543587,8481,226684,879

BUILDING AND CONSTRUCTION STATISTICS.

While the building-permit statistics give an indication of the movement in building activity in the areas covered by the statistics, they have hitherto been incomplete in that rural building activity has not been covered; while, again, the information so obtained docs not give any indication of construction activity apart from buildings. A further point is that an analysis of the distribution of the costs of building is not possible from the permit statistics. Since 1925, however, an annual collection of statistics of building and construction, on the same lines as the returns of factory production, has been made.

SCOPE OF STATISTICS.

The regulations empowering the collection of the statistics define the term “building and contracting establishment” as including establishments engaged in the construction or repair of buildings, wharves, jetties, bridges, or other construction work which employ two or more hands, inclusive of working proprietors.

The returns collected refer principally to the year ended 31st March. Where the ordinary financial year ends on a date other than the 31st March, figures are accepted in respect of the financial year, provided the last, day falls within the three months immediately preceding or following the 3lst March.

The statistics of budding and construction do not include the construction of railways, roads, streets, bridges, wharves, buildings, &c., by the General Government or by local authorities, except where, in the case of bridges, wharves, buildings, and other similar constructions, the work has been carried out by contract. Reference to construction by the Public Works Department is made in Section XXIVA. Particulars are included in the following tables in respect of a few local authorities which have a special staff engaged on repairing and making alterations to existing structures.

Figures relating to dwellings under construction by contractors for the Housing Construction Branch of the State Advances Corporation are also included.

From the nature of the industry it is obviously impossible to collect returns from all who engage in building operations, and especially from those who only intermittently undertake building contracts or whose operations are small. Nevertheless, the statistics cover a large proportion of building operations throughout the Dominion, all builders and contractors engaged in a large way or on big contracts, and the majority of others regularly undertaking building and construction work, being included among those from whom returns are received.

Special efforts were made to get in touch with all builders for the 1934-35 and subsequent collections, and some part of the large increase in the totals shown during the last four years was no doubt due to this factor. It is probable that a considerably greater proportion of building activity was covered by the statistics from 1934-35 onwards than was the case in previous years.

During the ten years ended on 31st March, 1938, the value of building permits issued in urban and suburban localities was £60,027,272, whereas the value of work done during that period by builders furnishing building and construction returns (which cover both urban and rural activities) was £63,734,687.

EXPLANATION OF TERMS.

The explanations given hereunder will be found of assistance in interpreting the terms used in connection with the statistics:—

  1. Average Number of Persons engaged.—This represents the sum of the monthly figures during the year covered divided by twelve.

  2. Cost of Materials used.—Included under this heading is the cost of timber, cement, bricks, &c., used, together with the amounts paid to subcontractors where work such as plumbing, painting, electrical installation, joinery, &c., was carried out by subcontractors.

  3. Other Expenses of Operation.—This heading comprises expenditure on fuel and power, insurance, depreciation, &c.

  4. Value of Work done.—This represents the total contract-price of the work actually commenced and finished during the year. Where contracts were not commenced and finished within the period covered, the value of the work done was assessed as being a proportion of the total contract-price equal to the proportion that the total expenditure during the period bears to the total estimated expenditure on the contract.

SUMMARY OF STATISTICS.

The figures quoted in the following table illustrate the scope of the inquiry at each annual collection of these statistics over the last ten years:—

Year.Establishments.Persons engaged.Salaries and Wages.Cost of Materials (including Payments to Subcontractors).Value of Buildings completed during Year.Total Value of Work done.
   ££££
1928-291,45711,7032,736,5886,224,8267,136,8489,704,062
1929-301,31011,3122,665,4586,010,1136,790,5829,407,881
1930-311,1529,5052,096,4204,600,0595,522,0227,216,627
1931-328304,869920,0101,955,1381,815,6703,073,418
1932-338213,922662,0361,446,8571,407,0902,227,488
1933-348294,459712,3991,707,7321,555,5632,553,719
1934-351,3196,8521,177,0903,315,0183,091,8504,715,456
1935-361,4548,3461,530,9244,424,3424,371,0356,279,959
1936-371,5129,7212,017,8245,620,8455,420,8288,133,847
1937-381,52211,4712,681,4937,096,7227,004,45310,422,230

While the movements in the figures—particularly as between 1934-35 and 1935-36 and previous years—must be interpreted with caution, in view of the variations in the size of the sample, a severe decline in building activity during the years 1930-31 to 1933-34 is clearly indicated. The downward trend was arrested in 1933-34, and the next year witnessed the commencement of a series of substantial yearly increases, culminating in the establishing of new record high levels for cost of materials used and value of work done for the year 1937-38. Persons engaged during 1937-38 (excluding subcontractors and their employees) advanced by 18 per cent. over the previous year's total, the corresponding increase in the amount of salaries and wages paid being 33 per cent. The cost of materials used rose by 26 per cent., and the value of work done increased by £2,288,383, or by 28 per cent.

CLASSIFICATION BY DISTRICTS.

The subjoined table shows the principal statistics for the year 1937-38:—

Provincial District.Establishments.Persons engaged.Salaries and Wages.Cost of Materials (including Payments to Subcontractors).Value of Buildings completed during Year.Total Value of Work done.
   ££££
Auckland4723,564823,3112,174,4262,219,9873,200,352
Hawke's Bay86632152,159361,537351,088559,277
Taranaki6236175,702189,739194,370281,706
Wellington3082,964730,5112,031,6602,063,3562,899,125
Marlborough2011725,92259,80558,22393,801
Nelson3826857,196121,662122,646198,786
Westland2313630,34157,70657,18792,750
Canterbury2511,915437,5421,107,5371,006,1611,674,468
Otago—      
  Otago1711,131260,469669,845618,393982,169
  Southland9138388,340322,805313,042439,796
    Totals1,52211,4712,681,4937,096,7227,004,45310,422,230

Of the total number of persons finding employment in building and construction operations covered by the returns in 1937-38, 6,528, or 57 per cent., were located in the Auckland and Wellington Provincial Districts. In regard to the value of work done during 1937-38, the Auckland figure exceeded that of Wellington by approximately £300,000, while the combined totals for these two provincial districts (£6,099,477) represents almost 59 per cent. of the total for the Dominion.

EMPLOYEES AND WAGES.

The number of persons engaged (including working proprietors, but excluding subcontractors) and the salaries and wages paid to these during the year 1937-38 are given hereunder. In this and in, the following table the amounts shown in respect of salaries and wages of proprietors represent amounts drawn by them in lieu of salary or wages.

Persons engaged.Salaries and Wages paid
Males.Females.Total.To Males.To Females.Total.
    £££
Proprietors1,3881,388317,282..317,282..
Managers and overseers237..23788,000..88,000
Accountants, clerks, &c.1298521424,5979,32233,919
Wage-earners9,632..9,0322,242,292..2,242,292
    Totals11,3868511,4712,672,1719,3222,681,493

The following table shows, for each of the last ten years, the number of persons engaged, classified according to occupational status, together with the total salaries and wages paid to each group, and also the average payment received per person engaged.

Year.Proprietors.Managers and Overseers.Accountants, Clerks, &c.Wage-earners.Total.
Persons engaged.
1928-291,5652542879,59711,703
1929-301,4442162869,36611,312
1930-311,2812452457,7349,505
1931-329231501453,6514,869
1932-339001311312,7603,922
1933-348961371313,2954,459
1934-351,4111421475,1526,852
1935-361,5451721646,4658,346
1936-371,4042161887,9139,721
1937-381,3882372149,63211,471
Salaries and Wages paid.
 £££££
1928-29431,744110,80146,1642,147,8792,736,588
1929-30401,012102,09347,3192,115,0342,665,458
1930-31331,41394,94141,8151,628,2512,096,420
1931-32180,21156,67323,812659,314920,010
1932-33140,21142,93217,753461,140662,036
1933-34135,28140,27210,282520,564712,399
1934-35213,44943,22919,167901,2451,177,090
1935-36264,78950,91420,1751,201,0461,536,924
1936-37269,43471,58925,3171,651,4842,017,824
1937-38317,28288,00033,9192,242,2922,681,493
Average Amount of Salary or Wages.
 £££££
1928-29276436161224234
1929-30278473165226236
1930-31259388171211221
1931-32195378164181189
1932-33156328136167169
1933-34151294124158160
1934-35151304130175172
1935-36171296123186184
1936-37192331135209208
1937-38229371159233234

The decline in the building trade consequent upon the economic depression is clearly illustrated in the table. There has been a rapid recovery since 1934-35, and taking cognizance of actual wage-earning employees it will be seen that for 1937-38 pre-depression levels have been passed.

WEEKLY RATES OF WAGES.

Returns as to employees and wages in a selected week are collected each year. The period covered is the nearest normal week to 31st March, and the data collected include the number of employees engaged at each wage rate, as well as the total employees and the total earnings during the specified week. Working proprietors, managers, overseers, accountants, and clerks do not come within the scope of the returns, which cover wage-earning employees only.

The following table gives the number of wage-earning employees engaged in the building industry at the various weekly rates of wages for the nearest normal week to 31st March “in the years 1929, 1931, and 1936 to 1938:—

Rate of Wages.Year.
1929.1931.1936.1937.1938.
Under 20s.16979205123105
20s. and under 25s.180180151148172
25s. and under 30s.10284845371
30s. and under 35s.258238100125153
35s. and under 40s.2171634569109
40s. and under 45s.137918377219
45s. and under 50s.220240503975
50s. and under 55s.14596353877
55s. and under 60s.555037721
60s. and under 65s.13553854559
65s. and under 70s.80221941918
70s. and under 75s.68806135024
75s. and under 80s.91663734310
80s. and under 85s.7997245301,161111
85s. and under 90s.88144949129987
90s. and under 95s.3192263,1202781,505
95s. and under 100s.423348512236648
100s. and under 105s.1,5281,5292423,704406
105s. and under 110s.34717171577137
110s. and under 115s.1,8041,1081133374,560
115s. and under 120s.187922960614
120s. and under 130s.74133359178994
130s. and under 140s.3131311453218
140s. and under 160s.2031161442133
160s. and over775074163
Number of employees9,4796,7137,2577,80210,589
Aggregate earnings during week£43,190£29,168£28,886£35,096£53,043
Average earnings during week£4 11s. 2d.£4 6s. 11d.£3 19s. 7d.£4 10s. 0d.£5 0s. 2d

It will be observed from the above that some violent fluctuations have occurred in the average weekly earnings. It is noteworthy also that in 1929 the 110s.-115s. class was the highest individual group, whereas in 1936 the class 90s.-95s. contained more wage-earners than any other. In 1937 the class 100s.-105s. was the modal group, and in 1938 the largest numbers are to be found in the 110s.-115s. class, with a second well-defined group in the 90s.-95s. class.

MONTHLY EMPLOYMENT.

The next table gives the number of wage-earning employees engaged on the fifteenth or nearest representative day for each month of the years 1935-36, 1936-37, and 1937-38.

Month.1935.1936.1937.Month.1935.1936.1937.
April5,5697,2228,265November7,0018,09210,107
May5,5807,6078,572December6,9148,12310,156
June5,6197,7268,826........
July5,8527,7029,331..1936.1937.1938.
August5,9527,8619,551January6,5737,7049,877
September6,2517,9359,716February6,9407,79010,223
October6,7578,1009,977March7,1198,02510,510

The absence of a seasonal decline in the winter months is a prominent feature of the statistics. A big uplift the level of building employment was in evidence for the year 1937-38. Progressive increases are shown for each of the months in 1937-38, with the exception of a slight halt in January, 1938. The above survey shows that the employment level has risen from 5,569 in April, 1935, to 10,510 in March, 1938.

VALUE OF WORK DONE.

The value of work done by builders furnishing returns each year is classified below according to the nature of the work done. The figures shown in respect of bridges, wharves, and “other” construction do not include construction work done by the General Government or by local authorities, except where such work is carried out on contract by private firms or individuals.

Year.Buildings.Bridges, Wharves.Other Construction.Additions, Jobbing, and Repairs.Totals.
Value.
 £££££
1928-297,666,096201,534344,2631,492,1699,704,062
1929-307,294,729197,790280,8231,634,5399,407,881
1930-315,230,024233,589289,4911,463,5237,216,627
1931-321,873,87792,623161,816945,1023,073,418
1932-331,445,62866,31936,735678,8062,227,488
1933-341,730,67576,68662,668683,6902,553,719
1934-353,560,181110,051114,052931,1724,715,456
1935-364,804,37499,941164,2251,211,4196,279,959
1936-376,074,059115,273122,1631,822,3528,133,847
1937-387,848,058275,778145,6842,152,71010,422,230
Per Cent. of Total.
1928-2979.002.083.5515.37100.00
1929-3077.542.102.9817.38100.00
1930-3172.473.244.0120.28100.00
1931-3260.973.015.2730.75100.00
1932-3364.902.981.6530.47100.00
1933-3467.773.002.4526.78100.00
1934-3575.502.332.4119.76100.00
1935-3676.501.592.6219.29100.00
1936-3774.681.421.5022.40100.00
1937-3875.302.651.4020.65100.00

The outstanding feature of the preceding table is the large advances during 1936-37 and 1937-38 in the value of additions, jobbing, and repair work, which is no doubt primarily the result of a postponement of such work in the depression period.

OPERATING COSTS IN RELATION TO VALUE OF WORK DONE.

Following is an analysis of operating costs and their relationship to the total value of work done during the last ten years:—

Year.Operating Costs.Value of Work done.
Salaries and Wages.Cost of Materials.Other Expenses.Total Costs.

* Difference between total costs and total value of work done.

† Excess of costs.

Amounts.
 £££££
1928-292,736,5886,224,826286,8109,248,2249,704,062
1929-302,665,4586,010,113337,5439,013,1149,407,881
1930-312,096,4204,600,059307,8677,004,3467,216,627
1931-32920,0101,955,138193,7563,068,9043,073,418
1932-33662,0361,446,857146,3732,255,2662,227,488
1933-34712,3991,707,732137,6582,557,7892,553,719
1934-351,177,0903,315,018181,5614,673,6694,715,456
1935-361,536,9244,424,342212,9546,174,2206,279,959
1936-372,017,8245,620,845274,6647,913,3338,133,847
1937-382,681,4937,096,722360,49710,138,71210,422,230
Per Cent. of Total Value.
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.*
1928-2928. 2064.152.9695.314.69
1929-3028.3363.883.5995.804.20
1930-3129.0563.744.2797.062.94
1931-3229.9363.616.3099.840.16
1932-3329.7264.966.57101.25-l.25
1933-3427.9666.875.39100.16-0.16
1934-3524.9670.303.8599.110.89
1935-3624.4770.453.3998.311.69
1936-3724.8169.103.3897.292.71
1937-3825.7368.093.4697.282.72

The figures shown for salaries and wages relate to the salaries and wages of those directly engaged by builders plus amounts drawn by builders in lieu of salary and wages. Payments to subcontractors are included in cost of materials, the only possible classification, since the returns are collected from builders but not from subcontractors—e.g., plumbers, electricians, &c. A considerable proportion of the amounts paid to subcontractors will be expended in wages, which consideration applies, of course, in the case of other “ materials” also.

The marked upward trend in the ratio of total costs to the value of work done indicates the extent to which the industry was affected by the depression. It will be observed that in 1932-33 and 1933-34 costs (including amounts drawn by builders in lieu of wages) exceeded the total value of work done in those years. A marked fall in average amounts of salaries and wages of employees and. in amounts drawn by proprietors in lieu of salaries and wages is indicated by the averages quoted in a preceding table. A definite upward turn, however, is indicated by the figures for the last two years.

NEW BUILDINGS COMPLETED.

A classification of the new buildings included in the returns for the last ten years is given in the following table :—

Year.Private Dwellings.Blocks of Flats.*Business Premises.Other.Totals.
* Not classified separately prior to 1930-31, but included in “ other.”
 Number.Number.Number.Number.Number.
1928-293,837..7359975,569
1929-303,868..7831,4546,105
1930-312,590304571,0584,135
1931-321,06882745281,878
1932-3398252164361,639
1933-341,446291874922,154
1934-352,511343228043,671
1935-363,548774281,0255,078
1936-373,795884911,3745,748
1937-384,042815001,4346,057
Value.
 £££££
1928-293,311,328..2,708,9691,116,5517,136,848
1929-303,277,283..2,365,0361,148,2636,790,582
1930-312,196,857126,3281,866,3881,332,4495,522,022
1931-32796,70311,422572,855434,6901,815,670
1932-33590,0964,427525,155287,4121,407,090
1933-34869,71430,952394,148260,7491,555,563
1934-351,637,56455,936923,202475,1483,091,850
1935-362,531,642198,8481,046,599593,9464,371,035
1936-373,033,614312,1291,408,446666,6395,420,828
1937-383,754,525301,3322,254,462694,1347,004,453

A considerable proportion of the buildings classified as “ other “ is accounted for by garages erected. Wide variations are shown from year to year in the values quoted for blocks of flats. This is to be expected, since the definition covers a wide variety of building types, but a growth in the popularity of this class of residence seems to be in evidence.

STATISTICS OF PRIVATE DWELLINGS.

Following is an analysis of the statistics of private dwellings included in the returns fur the last six years:—

Number of Rooms.Number of Dwellings.
1932-33.1933-34.1934-35.1935-36.1936-37.1937-38.
 Number.Number.Number.Number.Number.Number.
One543956905560
Two56538711074124
Three8988138185172175
Four2874477229199451,156
Five3275449721,5101,7501,705
Six103191360495506558
Seven274892126171141
Eight201948646969
Nine9714181815
Ten6413161617
Over ten469151922
    Totals9821,4462,5113,5483,7954,042

The classification of the number of dwellings according to size shows that, throughout the whole period, five rooms was the most popular size, followed by four-roomed dwellings. The number of five-roomed dwellings erected during the years 1935-36 and 1936-37 exceeded the combined totals of the four- and six-roomed dwellings, while for 1937-38 the total for five-roomed dwellings (1,705) just falls short of the combined totals for four- and six-roomed dwellings (1,714). The predominance of four- and five-roomed dwellings is very marked, while only a small proportion of the totals is accounted for by dwellings of over six rooms. Statistics of values follow:—

Number of Rooms.Value of Dwellings.
1932-33.1933-34.1934-35.1935-36.1936-37.1937-38.
 ££££££
One4,5853,2004,8077,5345,0635,591
Two8,6388,21413,86119,34215,32725,782
Three24,17424,83339,83156,00066,78579,298
Four131,458196,527362,662507,732590,911895,315
Five216,911348,833654,4331,080,6151,332,7221,603,931
Six98,703163,794313,776475,698524,410626,613
Seven33,42456,937108,652164,591238,286216,884
Eight26,71427,41870,158106,592117,649138,344
Nine17,3039,77323,67032,40332,69634,791
Ten15,7597,57226,75836,94140,67645,687
Over ten12,42722,61318,95644,19469,08982,289
Totals590,096869,7141,637,5642,531,6423,033,6143,754,525

The next table affords an indication of the movements in the values of new dwellings. As stated previously, all statistics of value quoted in this section relate to the value of building operations, and do not include the value of the land on which the buildings are erected.

Number of Rooms.Private Dwellings: Average Values.
1932-33.1933-34.1934-35.1935-36.1936-37.1937-38.
 ££££££
Per Dwelling.
One858286849293
Two154154160176207208
Three272282289303388453
Four458440502552625774
Five663641673716762941
Six9588588729611,0361,123
Seven1,2381,1861,1811,3061,3931,538
Eight1,3361,4431,4641,6661,7052,005
Nine1,9231,3961,6911,8001,8162,319
Ten2,6271,8932,0582,3092,5422,687
Over ten3,1073,7692,1062,9463,6363,740
Per Room.
One858286849293
Two77778088104104
Three919496101129151
Four115110126138156194
Five133128135143152188
Six160143145160173187
Seven177169169187199220
Eight167180183208213251
Nine214155188200202258
Ten263189206231254269

During the triennium 1934-35 to 1936-37 values per dwelling and per room rose gradually from the low points recorded in 1932-33 and 1933-34. An appreciable upward movement took place during 1937-38, with the result that values are more or less on a par with those registered in 1929-30 and 1930-31.

The table below gives the number and values of four-, five-, and six-roomed dwellings built, together with the average value per dwelling, in the four main centres—Auckland, Wellington, Christchurch, and Dunedin—for the Years 1928-29, 1936-37, and 1937-38:—

City.1928-29.1936-37.1937-38.
Four Rooms.Five Rooms.Six Rooms.Four Rooms.Five Rooms.Six Rooms.Four Rooms.Five Rooms.Six Rooms.
Number of Dwellings.
Auckland1291725516636694270345184
Wellington18435890911856316219847
Christchurch230208631392065116418748
Dunedin6216030961333612018741
Values.
 £££££££££
Auckland87,247137,40759,39198,273246,218101,599223,590335,474193,752
Wellington158,975379,038116,82166,378170,01777,313146,188208,57163,176
Christchurch159,000176,80764,66789,193155,66752,461127,244163,84953,581
Dunedin50,057154,37840,47276,079117,63041,620103,452194,42754,396
Average Value per Dwelling.
 £££££££££
Auckland6767991,0805926731,0818289721,053
Wellington8641,0591,2987299191,2279021,0531,344
Christchurch6918501,0266427501,0297768761,116
Dunedin8079051,3497928841,1568621,0401,327

It will be observed from the foregoing table that building-costs are definitely lower in Auckland and Christchurch than in the other two centres. With the exception of the six-roomed dwellings in Auckland, all centres report rises in the average value per dwelling for 1937-38 as compared with 1936-37. The most pronounced increases occurred in Auckland and Wellington for the four-roomed dwellings, Auckland for the five-roomed dwellings, and Dunedin for the six-roomed dwellings. The values are also generally higher than in the pre-depression year 1928-29.

It must not be assumed that the variations in the average value per dwelling shown, as between the four centres, are accounted for entirely by differences in building-costs. In the first place, there may be quite material differences as between one city and another in the average standard of comfort of dwellings erected in any one year. Furthermore, the minimum requirements embodied in the building regulations in force are not identical in each centre, due partly to differences in terrain, &c.

Chapter 24. SECTION XXIV.—PUBLIC FINANCE.

SUBSECTION A.—REVENUE AND EXPENDITURE.

INTRODUCTORY.

THE legislation relating to the custody, administration, and audit of the public moneys and securities is contained in the Public Revenues Act, 1926, which consolidated and amended the then existing enactments on the subject. All public moneys, excepting those payable to or received by the Post and Telegraph Department, the Government Insurance Department, the Public Trust Office, the Native Trust Office, the State Advances Corporation, the State Fire and Accident Insurance Office, the various Public Service Superannuation Funds, the National Provident Fund, the Broadcasting Account, the Iron and Steel Industry Account, the Dairy Industry Account, the Internal Marketing Account, and other special accounts under the Marketing Act are paid into one account at the bank called the “Public Account,” and are carried to one or other of the following funds or accounts in the books of the Treasury: The Consolidated Fund, the Public Works Fund, and separate accounts or funds specially created. A new subsidiary account called the War Expenses Account was brought into being in September, 1939. This account is to be used as a depository for all moneys appropriated for war purposes. The Public Account, formerly held at the Bank of New Zealand, was taken over by the Reserve Bank of New Zealand from 1st August, 1934.

The financial year commences on the 1st day of April and ends on the 31st day of March. The receipts of any financial year represent the money received into the Public Account at the bank at Wellington within the year, together with that received into the Public Account at London, of which advice is received in time for inclusion in the accounts for the year. The payments represent the money paid (a) at the Treasury within the year, (b) by imprestees, of which accounts are received at the Treasury within the year, and (c) at London of which advice is received in time for inclusion.

At the end of each financial year the Appropriation Act of that year lapses, but the Minister of Finance is authorized for a period of three months from the commencement of the next financial year to pay money in respect of any service, provided that the amount does not exceed the unexpended balance voted for that purpose in the previous year, together with an amount equal to one-fourth of such vote.

The normal practice is for Parliament to meet at the end of June in each year and to vote supplies from month to month until the estimated expenditure for the year has been approved and the annual Appropriation Act is passed. Where a later session of Parliament is foreseen, a temporary amendment to the provisions set out in the preceding paragraph is made. In the event of a mid-session adjournment supplies in anticipation of the Appropriation Act may be voted for more than one month, as, for instance, at the beginning of June, 1936, when three months' supplies were voted.

AUDIT OF EXPENDITURE.

In the audit of expenditure both the pre-audit and post-audit systems are in operation. Pre-audit is applied to vouchers in respect of payments on account of salaries of new appointees, officers claiming more than one month's salary at any time; interest, loan transactions, and return of deposits; unauthorized expenditure; transfers between Government accounts; or expenditure chargeable against the accounts of local authorities. Post-audit is applied to all other payments.

Vouchers must be certified as correct by the proper officer, and forwarded by him to the head of his Department for approval. Vouchers subject to pre-audit are then forwarded to the Audit Office, and on being found correct are sent on to the Treasury to be entered on requisitions for payment. Vouchers subject to post-audit are transmitted by the head of the Department direct to the Treasury. Payment is made by the Treasury, and the claim is afterwards submitted for audit.

GROSS TRANSACTIONS OF ACCOUNTS.

Recent years have witnessed the cutting out of many small accounts and their merging with other accounts or funds. Accounts and funds which were included in the Public Account during 1938-39 are listed in the table following, which shows, for each, the year's transactions and the balance at the beginning and the end of the year. For reasons that will be apparent later, the figures of gross transactions afford no indication of actual receipts and payments.

The State Advances Account is not included, nor are the other funds mentioned separately in the first paragraph on the preceding page. Particulars concerning these funds and the working of the Departments concerned will be found elsewhere in this book.

Account.Balance, 1st April, 1938.Receipts.*Credits.Payments.*Balance, 31st March, 1939.
* Excluding credits.
Consolidated Fund—£££££
Ordinary Revenue1,769,48745,702,0467,116,58944,931,6782,539,855
Deposits3,941,2472,653,270..2,544,5014,050,016
Public Works Fund—     
General Purposes153,8619,748,0502,173,6059,263,037638,874
Electric Supply63,0552,014,50526,8102,061,63415,926
Electric Supply Sinking Fund11,680179,641..181,00010,321
Bank of New Zealand Shares1,859,375164,063..164,0631,859,375
Employment Promotion Fund1,158,8905,522,46234,4056,473,808207,544
Land for Settlements668,714890,76567653,696905,783
Loans Redemption859,62439,476,033..40,311,25824,399
Main Highways62,2655,561,804318,0165,459,281164,788
Public Debt Repayment5,7571,754,123..1,756,6173,263
Remittances to London..9,031,300..9,031,300..
Reserve Fund1,241,07631,8001633821,272,494
State Coal-mines11,956379,6901,692384,0217,625
State Coal-mines Sinking Fund9,52611,766..9,52511,767
State Forests92,891381,90877,320422,07452,725
Working Railways1,057,2358,912,8062,783,0279,699,944270,097
Totals12,966,639132,416,03212,531,694133,347,81912,034,852

Of the total balances of the various accounts (£12,034,852) as at the 31st March, 1939, £1,469,756 represented cash, £557,731 imprests, and £10,007,365 investments.

NET RECEIPTS AND PAYMENTS.

In ascertaining the aggregate net receipts and payments of a financial year it is always necessary to deduct substantial amounts from the figures of gross receipts and payments. Special factors operating during 1933-34 swelled the gross transactions to a figure ten times greater than the net receipts and payments, while in 1934-35 similar factors operated, swelling the gross figures of receipts and payments to five times greater than the net figures.

Many of the accounts have their receipts and payments increased through the transfer of moneys from one account to another. Some of these transfers rank as credits, and are not included as receipts or payments in the table under the previous heading. The principal transfers between accounts which are treated as credits in reduction of expenditure are recoupments to the Consolidated Fund in respect of interest paid by that fund on loan-money.

There are, however, substantial transfers between accounts (or between items of an account) which rank as receipts of the receiving account. These are not always disclosed in the published statements, but an approximate total can be arrived at. This is found to have been in the neighbourhood of £7,000,000 for the year 1938-39. The principal item was the transfer of £2,852,164, representing motor-vehicles taxation, from the Consolidated Fund to the Main Highways Account. Next in importance was the transfer of £1,754,123 from the Consolidated Fund to the Public Debt Repayment Account in accordance with the scheme of debt-reduction.

On the other hand, the Consolidated Fund received a good deal of revenue from other accounts, the principal items being £701,064 from the Working Railways Account as interest on railway capital liability, and £164,063 by way of dividends first paid into the Bank of New Zealand Shares Account. Payments aggregating £211,901 were made from the Main Highways Account to other accounts or funds, and £23,682 was paid from the Land for Settlements Account to other accounts. A transfer of £179,641 from the Electric Supply Account was made to the Electric Supply Sinking Fund Account during 1938-39 to meet the cost of redemption of securities.

Most payments from one item of the Consolidated Fund to another rank as credits, but receipts of the Printing and Stationery Department from other Government Departments, excluding those with accounts outside the Public Account, constitute an exception. During the year 1938-39, receipts under this heading amounted to approximately £230,000. Interest payments to the Consolidated Fund on balances in the form of investments also constitute an exception, ranking as receipts in that account. Similarly, certain interest payments from the Consolidated Fund to other accounts are treated as receipts, not as credits.

Although post and telegraph receipts and payments are not included in the Public Account, interest on capital liability and profits of the Post and Telegraph Department are payable to the Consolidated Fund. As costs of other Departments for postages and for other services performed by the Post and Telegraph Department aggregated approximately £240,000 for the year, this latter amount represents in effect a transfer to the Consolidated Fund revenue from various votes of that fund or of other accounts.

The revenue of the Working Railways Account also includes a considerable amount received from Government Departments and paid out of the Consolidated Fund and other accounts. The amount under this head in 1938-39 was approximately £650,000, exclusive of payments from the Post Office Account and other accounts outside of the Public Account.

Included in the gross receipts of the Consolidated Fund are Treasury bill issues and renewals to the aggregate of £9,120,000, while redemptions and renewals of Treasury bills swell the payments by a similar amount.

Practically the whole of the receipts and payments of the Loans Redemption Account proper are nominal only, consisting in. the main of entries due to the renewal of loan-moneys. A deduction of approximately £39,300,000 must be made on this account from both receipts and payments in 1938-39.

The Remittances from and to London Accounts merely cover the withdrawal of money in London or Wellington for remittance to or from New Zealand, and are in practically the same category as the Loans Redemption Account, the receipts and payments representing book entries only, and usually balancing. There were no operations in the Remittances from London Account during the year 1938-39, but both receipts and payments of the Remittances to London Account amounted to £9,031,300 during the year.

Further deductions have still to be made from the gross totals before a figure approximately representing true governmental receipts and payments (apart from State advances and other activities not included in the Public Account) can be arrived at. The Deposits Account represents only lodgments and withdrawals of (mainly) non-Government moneys, and had in 1938-39 an aggregate of £2,628,270 receipts and £2,519,501 payments.

Including a small per contra item not already referred to (£8,000), the total deductions to be made from aggregate nominal receipts are approximately £67,200,000, and from payments £67,100,000, leaving net totals of £65,200,000 receipts and £66,200,000 payments for the year.

The gross and net figures of receipts and payments are as follows for each of the last five years:—

Year ended 31st March,Gross Transactions.*Credits.Net Transactions.
Receipts.Payments.Receipts.Payments.
* Excluding credits.
 £m.£m.£m.£m.£m.
1,935195.5209.011.242.540.7
1,93684.184.47.242.242.5
1,937110.4109.27.555.055.2
1,938119.7118.312.757.557.3
1,939132.4133.312.565.266.2

The net totals would be still further reduced if only the net increase (£13,768,930 in 1938-39) in debt were taken into account as a receipt, and both receipts and payments diminished by the amount of loan-money redeemed.

INCOME AND EXPENDITURE.

A system of departmental balance-sheets and statements of accounts was inaugurated on commercial lines in 1920 to show the true cost of the various Departments and services, as distinct from payments out of appropriations on the basis referred to at the beginning of this subsection. These balance-sheets and statements of accounts are published annually in Parliamentary Paper B.-1 [Part IV], to which the reader is referred for details of income, expenditure, &c., in respect of the various Departments and services.

During recent years a statement of income and expenditure, combining the revenue accounts of most Government Departments, has also been published. As already indicated, details of this account will not in any way agree with the figures quoted earlier in this section, as, apart from the difference in nature of the two accounts, the one here quoted includes the operations of Departments with accounts outside of the Public Account. Details of the State Income and Expenditure Account for the three most recent years for which figures are available are as follows:—

Year ended 31st March,
1936.1937.1938.
Income.
 £££
Taxation24,812,43430,742,93036,339,821
Profit from sale of gold coin231,271....
Profits from Reserve Bank, &c.157,213149,020123,089
Rents, royalties, and other territorial revenue1,270,7701,393,0081,268,256
Interest and dividends3,870,1113,163,2163,102,077
Fees and fines904,0521,078,0001,097,089
Revenues of commercial Departments—   
  Railways7,004,3167,790,6518,634,186
  Post Office3,556,4903,881,0754,272,500
  Electric supply1,040,6491,216,4681,470,043
  Housing..27,679..
  Other73,057369,760619,775
Miscellaneous revenues—   
  Social-service Departments302,718321,263295,484
  Development of primary and secondary industries163,970187,885939,633
  Other502,522582,6751,566,989
    Totals43,895,57350,903,63659,728,942
Expenditure.
General administration—£££
  Treasury, Audit, Internal Affairs, and other Departments1,457,2591,780,0491,921,456
  Interest on war and other unproductive debt2,953,5982,681,8852,703,452
  Exchange on remittances1,593,5361,581,3511,827,678
Expenses of Taxation Departments262,364344,856391,707
Law and order1,043,1491,179,6221,321,317
Defence1,207,3271,173,3021,432,294
Maintenance of public works and services2,179,5472,715,1963,839,385
Development of primary and secondary industries992,0751,115,7901,723,728
Social services—   
  Employment promotion4,774,8954,416,7834,267,541
  Pensions3,797,2295,021,2236,442,911
  Education3,495,2574,068,9014,387,679
  Health879,1741,013,4531,230,153
  Mental Hospitals596,343670,160742,436
  Other social services246,347262,532257,180
Land development and working1,665,9501,946,6741,839,449
Expenses of Investment Accounts—   
  Interest on loan capital2,326,5172,094,8511,587,850
  Other expenditure380,074112,519716,583
Expenditure of commercial Departments—   
  Railways8,252,8909,196,54710,337,196
  Post Office3,544,6203,872,8404,269,571
  Electric supply918,7251,080,4341,078,394
  Housing..18,613..
  Other76,533319,650518,273
    Totals42,643,40946,673,23152,896,233

A State balance-sheet covering all Departments and services, with the exception of the Post Office Savings-bank, the Public Trust Office, and the Insurance Departments, is also included in Parliamentary Paper B.-1 [Part IV]. (Vide also Section XXXIV—Wealth.)

Figures shown under subsequent headings in this subsection are on the basis of receipts and payments.

THE CONSOLIDATED FUND.

The Ordinary Revenue Account of the Consolidated Fund covers the ordinary revenue and expenditure of the General Government—i.e., apart from capital items, commercial and special undertakings, advances, &c. Until comparatively recent years its operations afforded an excellent comparison of State revenue and expenditure from year to year, but successive changes in system have largely destroyed the comparability of the figures. The principal of these changes are as follows:—

  1. The removal of railway revenue and expenditure from the Consolidated Fund from 1st April, 1925. Consolidated Fund receipts now include an amount paid by the Working Railways Account as interest on railway capital liability (£701,064 in 1938-39).

  2. Similar action in regard to post and telegraph revenue and expenditure from 1st April, 1928. In addition to interest on capital liability (£588,000 in 1938-39), the Consolidated Fund now (since 1931-32) receives Post and Telegraph Department profits. There were no receipts on this account during the latest financial year, but in 1937-38 the amount was £320,283, of which £65,000 was in respect of Post Office Savings-bank profits.

  3. Payment of motor-vehicles taxation receipts into the Consolidated Fund since 5th December, 1927, the great bulk of the money being later transferred to the Main Highways Account, into which these receipts were previously paid direct. In 1932-33 £500,000, in 1933-34 £500,000, and in 193-4-35 £321,754 of motor-vehicles taxation receipts were retained in the Consolidated Fund.

  4. The transfer of reserve moneys into the Consolidated Fund (£1,494,825 in 1931-32, £2,500,000 in 1932-33, and £2,000,000 in 1933-34) and, per contra, the transfer of moneys from the Consolidated Fund into the Reserve Fund Account (£853,897 in 1937-38).

  5. Exchange charges on overseas payments, in consequence of the depreciation of New Zealand currency in terns of sterling (£1,422,085 in 1938-39).

  6. Profits (£1,364,118 in 1934-35 and £231,271 in 1935-36) from the sale of coined gold, taken over under the Reserve Bank of New Zealand Act.

Fifty years' figures of receipts and payments of the Consolidated Fund will be found in the Statistical Summary near the end of this volume. Figures for the last ten years are:—

Year ended 31st March,Receipts.Payments.Surplus.
* Deficit.
 £££
1,93025,349,86125,200,882148,979
1,93123,068,93124,708,042-1,639,111*
1,93222,719,73324,860,552-2,140,819*
1,93322,568,52122,528,37940,142
1,93423,492,74924,202,027-709,278*
1,93526,126,09424,499,5951,626,499
1,93626,172,36825,890,568281,800
1,93731,147,18730,675,158472,029
1,93836,059,44335,248,621810,822
1,93936,582,04635,772,678809,368

The Finance Act, 1939, made provision for the transfer of the surplus in the Consolidated Fund for the year 1938-39 (£809,000), to the Social Security Fund.

The Budget estimate of receipts of the Consolidated Fund for the year 1939-40 is £38,260,000 and the estimated payments £38,243,000, leaving an estimated surplus of £17,000. Included in the estimate of. expenditure for the year 1939-40 is an amount of £2,000,000 for transfer to the Social Security Fund.

RECEIPTS.

The receipts of the Consolidated Fund are derived principally from taxation and from interest on the Public Debt Redemption Fund and other public moneys, with transfers from the Working Railways Account and from the Post and Telegraph Department in respect of interest on capital liability. An additional source—viz., profits of the Post and Telegraph Department—was added in 1931-32, certain reserve moneys were paid into the Consolidated Fund in 1931-32 and the two following years, and in 1934-35 and 1935-36 the receipts included profits on the sale of coined gold taken over by the Reserve Bank of New Zealand. Commencing with the year 1935-36 receipts have also been augmented by the inclusion of profits of the Reserve Bank of New Zealand. Details of receipts during the last three years are given in the table following:—

Source.Year ended 31st March,
1937.1939.1939.
* This excludes receipts from employment-promotion taxation, which were not paid into the Consolidated Fund. For details of taxation receipts see Subsection B.
 £££
Taxation*26,939,33831,662,50632,303,709
Registration and other fees251,390271,941290,104
Marine147,480163,578167,850
Interest on Public Debt Redemption Fund385,855463,866392,486
Interest on railway capital liability903,858632,797701,064
Interest on post and telegraph capital liability566,000590,000588,000
Interest on other public moneys531,405454,702445,896
Reserve bank profits103,01247,143195,811
Post Office Savings-bank profits40,00065,000..
Post and Telegraph Department profits3,298255,283..
Tourist and health resorts101,809117,945126,229
National-endowment revenue152,632154,319147,394
Other territorial revenue298,812290,964319,244
Departmental receipts597,677759,754777,569
Miscellaneous (including recoveries on account of expenditure of previous years)124,621129,645126,690
Totals31,147,18736,059,44336,582,046

PAYMENTS.

Payments from the Consolidated Fund are divided into two main groups, according to whether they are made under permanent or under annual appropriation. The latter heading covers the payments under the various departmental votes, while the former covers interest on and amortization of the public debt, exchange, disposal of special taxation for main highways, and payments under numerous special Acts. From 1932-33 onwards several items which formerly ranked as permanent appropriations, including payments for pensions, superannuation, and Hospital Board subsidies, have become the subject of annual appropriations.

Payments under the main heads of permanent appropriations and each head of annual appropriations during the last three years were as follows (the figures are net—i.e., gross payments less credits):—

Head.Year ended 31st March.
1937.1938.1939.
Permanent appropriations—£££
  Civil List28,47328,80230,127
  Debt services—   
    Interest7,604,4697,673,0717,500,515
    Amortization1,701,4871,742,4571,764,982
    Administration and management81,54349,88850,311
    Payments on guaranteed loansCr. 7,190Cr. 24,633Cr. 4,864
  For education purposes95,52599,540101,721
  Transfers to Main Highways Account2,333,7532,646,5322,852,164
  Motor-spirits tax paid to borough councils154,265163,827176,910
  Exchange1,581,3511,827,6781,422,085
  Transfer to Reserve Fund Account..853,897..
  Other514,823559,418438,622
      Totals, permanent appropriations14,088,49915,620,47714,332,573
  Annual appropriations—   
    Legislative106,840102,26898,791
    Prime Minister's Department27,50223,16724,644
    Treasury40,85441,02047,271
    Customs112,098126,624137,753
    Land and Income Tax140,180165,998135,106
    Stamp Duties91,354100,042105,537
    Audit36,12139,96039,452
    Public Service Commissioners' Office6,9829,91313,590
    Internal Affairs368,004509,582499,861
    External Affairs158,255241,640207,797
    Printing and Stationery227,422275,852302,016
    Marine123,423157,803179,406
    Labour206,358142,876134,758
    Native286,956155,326122,933
    Valuation58,50952,49249,069
    Electoral11,8066,513114,641
    Census and Statistics63,80932,26033,938
    Justice and Prisons273,486336,958337,071
    Crown Law Office7,4197,5838,279
    Police496,977601,482607,390
    Defence—   
      Naval632,062760,529835,331
      Army427,635529,632706,753
      Air132,382313,652557,205
    Maintenance of public works and services1,174,9911,093,782724,286
    Lands and Survey401,900384,974300,241
    Agriculture692,267845,4191,078,426
    Industries and Commerce, Tourist and Publicity176,808385,545444,216
    Scientific and Industrial Research97,517130,057158,785
    Mines28,92331,06233,716
    Transport28,03863,16381,699
    Health996,8401,209,7411,362,757
    Mental Hospitals334,636394,454417,483
    Education3,396,2343,677,7494,097,546
    Pensions5,072,7356,466,6566,933,819
    National Provident and Friendly Societies112,545123,718133,959
    Payment of deficit in Dairy Industry Account....276,850
    Other services not provided for36,79188,65297,730
        Totals, annual appropriations16,586,65919,628,14421,440,105
        Grand totals30,675,15835,248,62135,772,678

The amounts shown under the head of “Education” do not represent the full payment on education services, expenditure under special Acts and from the revenue from certain endowments, &c., not being included. A statement of public expenditure on education is given at the close of Section VII (Education) of this volume.

PUBLIC WORKS.

For the prosecution of the policy of public works inaugurated in 1870 there was set up a Public Works Fund. For many years all expenditure on public works was borne by this fund, but in course of time separate subsidiary accounts were established to deal with certain special activities. These subsidiary accounts have in general either become merged in the General Purposes Account of the Public Works Fund or have ceased to exist on the completion of the work for which they were called into existence. The Electric Supply Account, with its separate Sinking Fund Account, is the only one now remaining.

The Construction Fund of the Main Highways Account, which was established in 1923-24 to provide finance for the construction, reconstruction, &c., of main highways, was analogous to the Public Works Fund, and its operations were for some years included in the Year-Book statement of public-works receipts and payments. The Construction Fund of the Main Highways Account has now been combined with the Revenue Fund, and the figures of public-works receipts and payments quoted below for the last five years are exclusive of operations of the Main Highways Account. Several other accounts formerly treated separately have now been merged in the Public Works Fund.

RECEIPTS.

A summary of the receipts of the Public Works Fund is given below for the last five years. The figures are exclusive of credits, and transfers between the various accounts are omitted, as are also temporary transfers from other accounts.

Year ended 31st March,Loan-money.Transfers from Other Accounts.Recoveries on account of Expenditure of Previous Years.Interest on Investments, &c.Sales of Electrical Energy.Land Sales, Repayment of Advances, &c.*Other and Unspecified.Total.
££££££££

* Native-land settlement and settlement of unemployed workers.

† Includes Sinking Fund and cash-balance receipts (£472,013) resulting from purchase of Southland electric-power undertaking.

1,9351,647,400..378,6887,297932,68023,99910,3083,000,372
1,9362,250,00058175,0171,148983,20436,31512,3833,458,125
1,9374,980,553..36,7235,1601,136,42197,479486,7046,743,040
1,9383,974,7262,00996,3431,8291,384,90081,67461,0215,602,502
1,9399,622,27969637,5231,0821,602,26788,51820,19011,372,555

PAYMENTS.

Payments from the Fund during each of the last five years are summarized below. As in the case of receipts, the figures are exclusive of credits and of transfers between the various accounts.

Year ended 31st March,Public Works.Dairy Industry Loans.Maintenance and Working-expenses.*Amortization of Debt.Interest.Debt. Charges and Expenses.Other Items.Total.

* Where shown separately.

† Amount involved in repayment of Southland Electric-power Board debentures and advances.

‡ Including amounts of £60,032 in 1936-37 and £94,050 in 1938-39, expended in the purchase of Flock House Estate.

 ££££££££
1,9352,097,499..9139,240574,3502,5884422,714,210
1,9362,266,77510,7509016,670560,0024,0515,3052,863,643
1,9374,042,90130,510441,551,479530,120385,56660,4716,601,091
1,9387,121,4314,565....517,4563,3294657,647,246
1,93910,506,596......540,7313,47794,22511,145,029

No distinction is now made in the Electric Supply Account between capital and maintenance expenditure out of vote. The item “Departmental” in the Public Works Fund covers both construction and maintenance, and other items also are probably affected.

The principal items of public-works expenditure included in the first column are as follows for the five years:—

Year ended 31st March,Railways.Roads.Telegraph Extension.Development of Water-power.*Public Buildings.Lands and River Improvement, Irrigation,Lands Settlement.Departmental and other.

* Including maintenance.

† Settlement of unemployed workers, and Native-land settlement.

 ££££££££
1,935125,600371,573135,933555,519286,968188,352347,97785,577
1,936258,012444,377195,380529,075346,879136,245218,367138,440
1,9371,019,094913,720232,512763,775654,90998,699204,335155,857
1,9382,412,9901,126,757312,2611,007,9661,234,548238,497565,492222,920
1,9393,798,0831,290,838575,9441,337,7842,086,294304,782838,380274,491

The increased payments under the various headings are due to the prosecution of a vigorous public-works development policy.

In addition to expenditure on roads from the Public Works Fund, there is the expenditure incurred in roading Crown lands and lands purchased for settlement, which is a charge on the Land for Settlements Account, and is included in the values upon which the rentals of the lands are based.

A more detailed statement of the net payments out of the Public Works Fund during 1938-39 is now given:—

 £ £
Public works, departmental216,016Development of water-power1,337,784
Railways3,798,082Services not provided for75
Public buildings1,425,627Part purchase-price of Flock House Estate94,050
Education buildings660,667  
Lighthouses and harbour-works33,850Part expenses in connection with purchase of Flock House Estate175
Development of tourist resorts24,552  
Roads, &c.1,290,838  
Telegraph extension575,944Stamp duty178
Lands, miscellaneous134,977Management charges of consolidated stock, &c.3,299
Irrigation and water-supply164,481  
Swamp-land drainage5,324Interest540,731
Settlement of unemployed workers344,684Total11,145,029
Native land settlement493,695  

In addition to the payments mentioned above, £179,641 out of the Electric Supply Account together with a small amount out of the Electric Supply Sinking Fund Account was utilized for the redemption before maturity of stock to the value of £180,000. A similar amount (£180,000) was obtained from the issue of new stock.

GENERAL PURPOSES ACCOUNT.

The total net payments of the General Purposes Account of the Public Works Fund from its inception in 1870 to 31st March, 1939, have been £143,618,177, spread over the various classes of public works as follows:—

Class.£Class.£
Immigration3,312,661Lands improvement1,247,341
Public works, departmental13,596,456Swamp-land drainage103,009
Railways63,811,338Plant, material, and services138,656
Roads26,317,130Charges and expenses of raising loans3,828,307
Land-purchases2,148,248Coal-mines10,835
Settlement of unemployed workers1,411,851  
Development of mining879,715Interest and sinking fund218,500
Telegraph extension12,876,634Irrigation and wafer-supply1,550,349
Public buildings16,051,493Motor-transport service33,635
Lighthouses, harbour-works, and defences1,368,472Transfer to Main Highways Account1,226,000
Contingent defence1,389,488Native land settlement1,187,026
Rates on Native lands68,672Dairy industry loans46,125
Thermal springs14,600  
Development of tourist resorts781,636Total143,618,177

The total receipts of the General Purposes Account to 31st March, 1939, were £144,257,051, of which £128,237,011 represented the proceeds of loans, and £14,555,000 transfers from the Consolidated Fund. The largest item in the residue of £1,465,040 was an amount of £506,820 in respect of sinking funds set free, next in importance being receipts from stamp duties to 31st December, 1876 (£264,658). The balance of the account at 31st March, 1939, was £638,874.

LAND-SETTLEMENT ACCOUNTS.

Through the closing of several accounts and the merging of these in other accounts or funds, there remained during 1938-39 only one account dealing primarily with land-settlement—viz., the Land for Settlements Account, which covers numerous and diverse activities in connection with land-settlement.

The principal advances accounts, those relating to State advances to settlors and workers, are, as stated earlier in this subsection, outside the Public Account and are not included here.

A statement of receipts and payments of the Land for Settlements Account during the last three years is as follows:—

LAND FOR SETTLEMENTS ACCOUNT.

Receipts.1936-37.1937-38.1938-39.
 £££
Sales and capital receipts221,803394,825290,786
Rents and interest480,693482,013449,064
Sales of produce, live-stock, and miscellaneous101,06199,279129,268
Receipts from Hutt Valley Settlement lands14,25280,69012,755
Interest on investments5,6578,1468,893
Recoveries87....
 823,5531,064,953890,766
Payments.£££
Administration, &c.169,888266,520193,218
Interest and other charges489,218459,832447,430
Charges on proceeds of sales of Crown lands6,793154,47513,038
Charges on proceeds of sales of National Endowment lands421510
Transfer of advances to Discharged Soldiers Settlement Account1,755....
..667,696880,842653,696

TRADING ACCOUNTS.

Several important trading operations of the Government are outside the scope of the Public Account, while certain others are included in the Consolidated Fund; and the Electric Supply Account covers both construction and trading operations. Trading accounts other than those which might be so regarded but have already been dealt with under previous headings are as follows:—

  • Working Railways Account.

  • State Coal-mines Account.

  • State Forests Account.

The receipts of these three accounts during the last three years were as follows:—

Item.Account.1936-37.1937-38.1938-39.
  £££
Railway revenueWorking Railways7,513,9358,321,7688,894,461
Contributions and subsidy to Railway Employees' Sick Benefit FundDitto8,0008,0008,000
Sale of coal and wood, rents, &c.State Coalmines248,668269,118282,897
Forests revenueState Forests132,203144,055152,715
Administration expenses recoveredState Forests1,5601,2141,021
Loan-moneyState Forests136,000200,000270,000
Interest receiptsVarious35,42725,78112,014
Recoveries on account of expenditure of previous yearsVarious1,2202943,294
    Totals..8,077,0138,970,2309,624,402

Payments during the same three years wore composed of the following amounts:—

 1936-37.1937-38.1938-39.
Out of appropriations—£££
  Working railways7,137,0497,956,8008,990,880
  State coal-mines245,693317,788369,271
  State forests227,872281,138403,084
Interest907,065635,671704,047
Management charges of consolidated stock220263278
Charges and expenses of raising or transferring loans599....
Amortization of debt9,1799,52411,767
Transfers to other accounts10,93416,45818,712
Subsidy to Railway Employees' Sick Benefit Fund8,0008,0008,000
    Totals8,546,6119,225,64210,506,039

EMPLOYMENT PROMOTION FUND.

An Unemployment Fund was set up in 1930-31 to handle receipts of taxation and other revenue for unemployment purposes and the disbursement of moneys for the relief of unemployment. This fund was superseded by the Employment Promotion Fund, established under the Employment Promotion Act of 1936.

Receipts and payments on account of employment promotion during the last three years have been as follows:—

Item.1936-37.1937-38.1938-39.
Receipts.
 £££
Registration levy440,562448,854468,588
Employment charge on wages2,590,8323,027,4903,340,406
Employment charge on other income1,193,5711,628,6751,652,208
Miscellaneous35,58040,08261,260
Totals4,260,5455,145,1015,522,462
Payments.
 £££
Administration76,445235,000299,985
Grants and payments2,657,6172,557,6735,402,381
Loans28,42141,76765,407
Allowances1,624,0841,397,452703,957
Purchases of food, &c.27,4447,5642,078
Totals4,414,0114,239,4566,473,808

In accordance with the provisions of the Social Security Act, 1938, the Employment Promotion Fund was deemed to be abolished on 30th September, 1939, the balance remaining on that date being transferred to the Social Security Fund.

MAIN HIGHWAYS ACCOUNT.

The Main Highways Account is concerned with the construction and maintenance of main highways and the payment of subsidies to local authorities. Its receipts consist mainly of special taxation collected by the Consolidated Fund and paid over, less certain deductions; and moneys borrowed for purposes of main highways construction.

The separate Revenue and Construction Funds of the Main Highways Account were merged into one account as from 1st April, 1936, by the Finance Act (No. 2), 1935. The statement of receipts and payments which follows summarizes the operations of the last three years.

Item.1936-37.1937-38.1938-39.
Receipts.
 £££
Taxation2,333,7532,646,5322,852,164
Loan money853,5001,676,8002,675,600
Repayment of advances14,80322,58825,807
Interest4,8755,4376,440
Recoveries on account of expenditure of previous years3,152479819
Miscellaneous159524973
    Totals3,210,2424,352,3605,561,803
Payments.
 £££
Construction and maintenance of highways2,726,9753,931,7364,998,716
Subsidies to local authorities195,085206,545209,093
Advances to local authorities21,07337,37413,547
Commutation of Hutt Road fees24,47424,50224,536
Abolition of toll-gates1,4571,4521,488
Interest on transfers from Public61,30061,30061,300
Works Fund......
Loan charges893....
Amortization of debt93,56799,992150,601
Interest on temporary transfers4821,521..
    Totals3,125,3064,364,4225,459,281

SUBSECTION B.—TAXATION.

TOTAL TAXATION.

ALL revenue collected by means of taxation was until the end of the financial year 1921-22 paid into the Consolidated Fund and applied to general purposes. From 1922-23 to the 5th December, 1927, however, certain items were paid into the Main Highway" Account to help to defray the cost of improving and maintaining roads. From the last-mentioned date all such moneys are paid into the Consolidated Fund in the first instance, and (with certain exceptions) transferred to the Main Highways Account. The proceeds of the employment promotion taxation introduced in 1930-31 were paid direct into the Employment Promotion Fund. A similar position holds in the case of social security taxation, receipts from this source being paid into the Social Security Fund.

A summary of tax collections (total and per head) during the last ten years is given in the following table. For 1930-31 and subsequent years gross collections of employment promotion taxation are included.

Year ended 31st March,Total.Per Head.Year ended 31st March,Total.Per Head.
*Excluding employment promotion taxation, the total is £32,303,710—equal to £20 0s. 11d. per head.
 ££s.d. ££s.d.
1,93019,471,13113361,93524,737,93915184
1,93118,878,285121201,93625,476,3721656
1,93217,405,62211941,93731,164,302191410
1,93319,703,703121771,93836,767,5252313
1,93421,470,827131841939*37,764,9122389

The following table shows receipts under the various heads of taxation during the last five years:—

Head.Revenue for Year ended 31st March,
1935.1936.1937.1938.1939.
 £££££
Customs revenue7,423,5978,161,1619,499,25410,758,73310,650,428
Beer-duty671,008715,042841,584978,4371,076,796
Motor-vehicles taxation1,910,4522,124,1302,503,1112,838,7113,059,989
Land-tax492,526458,8731,047,8771,038,0341,058,499
Income-tax3,796,4774,581,3286,618,7169,078,7639,303,495
Death duties2,205,3941,615,4791,725,1351,679,5991,817,713
Bank composition218,01734,38914,288....
Stamp duty on interest6853Dr. 98....
Duty on instruments238,093277,441347,738392,829393,618
Racing taxation371,985378,851503,655558,874661,443
Amusements-tax49,52656,50770,56498,64692,993
Other stamps taxation436,379477,028499,714508,267441,611
Employment promotion taxation4,561,5943,921,9754,224,9655,105,0195,461,202
Film-hire tax44,49160,65772,20982,37785,882
Sales tax2,170,5032,462,6023,044,6123,499,1313,555,696
Gold-export duty102,617106,976108,793105,412100,011
Interest-tax44,97943,82341,60240,799199
Mileage-tax residue233575833,8945,337
    Totals24,737,93925,476,37231,164,30236,767,52537,764,912

During the early years of the depression period heavier imposts were made in existing fields of taxation and, in addition, new classes of taxation were imposed, the latter including a sales tax and a scheme of special taxation for the relief of unemployment, both of which are dealt with under subsequent headings.

Taxation receipts in 1938-39 (£37,764,912) showed an increase of £997,387 over the previous record established in 1937-38. Customs revenue, in keeping with the high level of imports, remained very buoyant and exceeded the Budget estimate by £650,000.

Employment promotion taxation in 1938-39 totalled £5,461,202. an increase of £356,183, reflecting the higher levels of salaries and wages receipts in 1938-39 and the slight increase in other incomes in 1937-38. The yield from income-tax increased by £224,732, the two branches of taxation on income together accounting for 58 per cent. of the total increase between the two years. Substantial increases were also shown in two other important classes indicative of business activity—viz., motor-vehicles taxation and sales tax.

CUSTOMS AND EXCISE TAXATION.

Revenue included under the heading of Customs is exclusive of receipts from tire-tax and from that portion of the petrol-tax which is imposed to provide funds for roading purposes, as referred to under the next heading. Gold-export duty and sales-tax receipts also are not counted as Customs revenue, although collected by the Customs Department.

The following figures show Customs and excise revenue for the last ten years:—

Year ended 31st. March,Customs Duties.*Excise Duties.*Total Customs and Excise Duties.Proportion of Total Taxation.
* Excise duties In this table cover only beer-duty; other excise duties are here included with Customs duties.
 £££Per Cent.
1,9308,897,047620,3129,517,35948.88
1,9317,605,976575,1008,181,07643.34
1,9325,904,348641,0806,545,42837.61
1,9336,131,414654,2276,785,64134.44
1,9346,485,014655,4647,140,47833.26
1,9357,423,597671,0088,094,60532.72
1,9368,161,161715,0428,876,20334.84
1,9379,499,254841,58410,340,83833.18
1,93810,758,733978,43711,737,17031.92
1,93910,650,4281,076,79611,727,22431.05

Increases in the rates of beer duty and in the tax on motor-spirits. for general revenue purposes, were brought into operation on 2nd August, 1939, while, as from 27th September, additional duties were imposed on certain items (including beer and tobacco), the additional revenue to be appropriated for war purposes. Information in regard to these increases and Customs and excise duties generally is contained in Section XD, Customs Tariff and Revenue.

MAIN HIGHWAYS TAXATION.

The Main Highways Act, 1922, laid down that the Revenue Fund (the Revenue and Construction Funds merged as from 1st April, 1936) of the Main Highways Account was to be credited, inter alia, with—

  • All moneys received as Customs duties imposed in respect of rubber tires, rubber tiring, and inner tubes of rubber for pneumatic tires, n.e.i. (as per the Customs tariff):

  • All moneys received by the Crown under any Act in respect of the licensing of motor-vehicles.

The tire-tax had been imposed by the Customs Amendment Act, 1921, prior to the passing of which tires had been admitted free. The licensing of motor-vehicles by the Crown became operative in the financial year 1924-25, consequent on the passing of the Motor-vehicles Act, 1924.

A third class of taxation for main-highways purposes was introduced towards the end of 1927 by the Motor-spirits Taxation Act of that year, which imposed a duty of 4d. per gallon on all motor-spirits imported. The rate was increased to 6d. per gallon in 1930. The duty collected is paid into the Consolidated Fund in the first place, and after deduction of expenses of administration and of refunds (which are provided for in cases where the motor-spirit is used otherwise than for motor-vehicles) the residue is divided between (1) the Main Highways Account, and (2) boroughs with a population of 6,000 or over, in the proportions of 92 per cent. and 8 per cent. respectively. An additional 2d. per gallon was imposed from 7th October, 1931, a further 2d. from 9th February, 1933, and a further 4d. per gallon from 2nd August, 1939, but these imposts (totalling 8d. per gallon, or 8 7/10d. with the surtax of 7/10d. per gallon on imports from foreign countries) are for general purposes, and the proceeds are paid into the Consolidated Fund as part of the ordinary Customs revenue. For each of the years 1932-33 (£500,000), 1933-34 (£500,000), and 1934-35 (£321,754) a portion of “the petrol-tax receipts otherwise payable to the Main Highways Account was retained in the Consolidated Fund by special legislative authority.

By section 19 of the Finance Act, 1932-33 (No. 2), a mileage-tax was imposed on motor-vehicles using motive-power other than petrol. Part of the receipts is regarded as the equivalent of Customs taxation on petrol and remains in the Consolidated Fund, the balance for highway purposes being divided between the Main Highways Account and the larger boroughs after deduction of administration expenses and of refunds.

Taxation receipts for main-highways purposes have been as follows during the last ten years. Reference may be made also to the section relating to Roads and Road Transport.

Year ended 31st March,Fees, &c., under Motor-vehicles Act.Tire-tax.Motor-spirits Taxation.Mileage-tax.Total.Proportion of Total Taxation.
 £££££Per Cent.
1,930391,368157,474961,948..1,510,7907.76
1,931393,797130,4081,316,385..1,840,5909.75
1,932370,12685,4371,358,623..1,814,18610.42
1,933352,56164,1631,263,881..1,680,6058.53
1,934346,25063,8011,291,8791,5971,703,5277.93
1,935391,66092,5871,424,8091,3961,910,4527.72
1,936431,89694,0711,596,4071,7562,124,1308.34
1,937493,626139,7231,866,1863,5762,503,1118.03
1,938563,358159,9282,108,7276,6982,838,7117.72
1,939612,395150,3502,289,1208,1243,059,9898.10

LAND AND INCOME TAX.

Except in regard to minor details, the system of land and income taxation in force at the outbreak of the 1914-18 war had remained unaltered for many years. Probably the only noteworthy change was the gradual hardening-up of the graduated land-tax, designed to prevent aggregation of land and to compel the cutting-up of large estates rather than to secure additional revenue.

The war taxation of 1915, however, not only included increased rates of 33 1/3 per cent. in the case of income-tax, ¼d. in the pound in the case of land-tax payable on mortgages, and 50 per cent. in the case of graduated land-tax, but also involved an important change of principle. Among the incomes previously exempt from income-tax were those derived directly from land, but in 1915 income-tax was made payable on such incomes.

With the exception of the abolition of the land-tax on mortgages and the substitution of an income-tax in its place, the principles of land-tax assessment were not altered in 1916, nor were the rates increased, but an entirely new scheme known as the excess-profits tax was brought into operation in respect of income-tax, the 1915 system remaining also, with increased rates, for ordinary income-tax. The excess-profits tax being found inequitable and otherwise unsatisfactory, a system of progressive land and income tax, with a special war tax on incomes, was adopted in 1917.

In 1920 a complete revision of the rates of taxation was made. A feature of that year's legislation was the introduction of a deduction from the amount of tax payable of 10 per cent. in respect of tax assessed on the first £2,000 of “earned income.”

In 1923 further alterations were made, the principal being the restoration of the exemption from income-tax of income derived from the direct use or cultivation of land. Reductions in the rates of taxation were also made.

Further reductions in income-tax rates were made in 1924 and 1925, and other alterations in respect of exemptions, method of assessment, &c., were also made. Alterations made in 1927 in the progressive scale of increases in the rate of tax and also in the scale of reduction of exemptions had the effect of slightly increasing income-tax except on the very highest incomes and those below £450.

In 1929 the maximum exemption for mortgages in the computation of land-tax was reduced from £10,000 to £7,500, and special land-tax (additional to ordinary tax) was imposed on farm-lands exceeding £14,000 in unimproved value. At the same time income-tax was provided for in the case of farm-lands in excess of £14,000. From the income-tax assessed in such cases land-tax (including special) was deductible.

In 1930 the special land-tax was discontinued, but income-tax was imposed on profits from farm-lands of an unimproved value of £7,500 or over. Income-tax rates were increased by 10 per cent., and in place of the income exemption of 5 per cent. of capital value of land used in the derivation of income, a 5 per cent. allowance on taxable unimproved value, with an allowance for depreciation of premises, was substituted. An increase in the land-tax rates was also made, through the abolition of the deduction (which had been in force for some years) of 5 per cent. from the computed tax.

In 1931 the graduated scale of land-tax was abolished, a flat rate of 1d. in the pound of taxable unimproved value being substituted. To balance the reduction in land-tax and to provide additional revenue, the following alterations were made in respect of income-tax:—

  • Reduction of general exemption to £260, diminished by £1 for every £3 of income between £260 and £560, and by £1 for every £1 10s. between £560 and £800.

  • Increase of surtax to 30 per cent.

  • Imposition of a special flat-rate tax of 4d. in the pound on incomes of individuals, with a general exemption of £500.

  • Imposition of a special emergency tax on unearned income of individuals equal to one-third of the income-tax payable on such unearned income.

  • Elimination of 10-per-cent. deduction on earned income.

  • Elimination of exemption of 5 per cent. of unimproved value of land used in production of income.

  • Extension (from 1st April, 1932) of income-tax provisions to farmers with £3,000 unimproved value or over.

  • Inclusion in assessments (but only for purpose of fixing rate and general exemption) of certain classes of non-assessable income.

  • Removal of discrimination in tax on income derived from local-authority and company debentures issued before and after the 28th August, 1923, with the exception of “free of tax” company debentures.

By the Unemployment Act, 1931, amounts paid as unemployment-relief tax were also allowed as a special exemption; but this exemption was discontinued as from 1st April, 1936.

In 1933 the general exemption was reduced to £210, but a special exemption of £50 (reducible by £1 for every £1 10s. of income over £725) was provided for a married man in respect of his wife if he supported her and if her own income did not exceed £50. A further amendment in 1933 extended this exemption to cover the case of a woman supporting her husband, and made a similar exemption in respect of the employment of a housekeeper by a widower or a widow. The £50 exemption in respect of contributions to the support of a widowed mother was extended in 1935 to cover also the case of a widowed mother-in-law.

As part of the programme of the Labour Government, a graduated scale of land-tax was reintroduced as from 1st April, 1936. An amended scale of income-tax, with somewhat heavier imposts, was also adopted, and various changes were made in regard to exemptions. Under the amended scale the reduction of exemptions with increasing income was discontinued, as was also the special flat-rate tax on incomes over £500. The 1936 amendment provides that taxpayers may be required to pay their income-tax in instalments instead of in one sum as formerly.

With a view to obtaining additional revenue for general governmental purposes, legislation was passed in 1939 reducing the general exemption from £210 to £200, and increasing the basic rates of taxation.

In connection with the provision of finance for war purposes, the War Expenses Act of 1939 increased all rates of income-tax for the 1939-40 tax-year by 15 per cent.

Statistics of income-tax assessed for the tax-year 1937-38 and recent previous years, according to class of taxpayer, source, and size of income, &c., are given in the section of this Year-Hook relating to “ Incomes and Income-tax.”

LAND-TAX.

Land-tax is assessed on the unimproved value of land after deductions provided for by statute have been made by way of special exemption. An owner of land the unimproved value of which does not exceed £1,500 is allowed an exemption of £500; and where the unimproved value lies between £1,500 and £2,500 there is a similar exemption, diminished, however, by £1 for every £2 over the £1,500 mark so that no exemption is allowed when £2,500 is reached.

Where the land is subject to a registered mortgage an alternative scale of exemption is provided—viz., £7,500 in cases where the unimproved value does not exceed £7,500, the exemption of £7,500 being diminished by £1 for every £1 above the margin of £7,500 of unimproved value, and disappearing altogether at £15,000. Where the capital value of the mortgage is less than the amount of deduction provided, such capital value is deducted instead.

No special exemption is allowed in the case of land not situated in a borough, which has been owned by a person for three years and not improved to the extent of £1 per acre or equal to one-third of the unimproved value, when in the opinion of the Commissioner of Taxes it should have been so improved. In the case of such land, also, the rate of land-tax is 50 per cent. more than the ordinary rate.

In lieu of the special exemptions set out above, the Commissioner of Taxes has discretionary powers to grant relief in certain specified cases of hardship. Subject to deductions provided, life tenants are liable to tax, and joint owners are assessed jointly as regards the land held in conjunction, and are liable severally in respect of each owner's interest in such land and any other land. This liability for joint assessment also applies to companies owning land if half of the paid-up capital or half (in nominal value) of the allotted shares of each company is held by or on behalf of shareholders in the other.

In case of default by a taxpayer in respect of land-tax the amount of tax may be demanded from his successor in title, from a tenant of the taxpayer or his successor, or from a mortgagee of the estate or interest concerned. Land-tax constitutes a charge on the land, and, notwithstanding any disposition of it, such land continues to be liable in the hands of a purchaser or other holder thereof for the payment of the tax so long as the charge remains in force. Registration of the charge is required, and no disposition of the land or of any interest in it may be registered while the charge remains in force. Relief in cases of hardship is provided for.

Where the unimproved value on which land-tax is payable does not exceed £5,000 the present rate of land-tax is 1d. in the pound. This rate is increased by 1/8000d. for every £1 in excess of £5,000, with, however, a maximum of 6d. in the pound.

INCOME-TAX.

Income-tax is payable on the full incomes of registered companies, public authorities, and absentees, and in other cases on income in excess of £200 per annum. A further £50 is deductible from assessable income in respect, of a dependent wife or husband whose personal income does not exceed £50. A similar exemption is allowed in respect of a housekeeper employed by a widower or a widow; £50 deduction is allowed for each child or grandchild under eighteen years of age who is dependent on the taxpayer, and amounts up to £50 contributed towards the support of the taxpayer's widowed mother or widowed mother-in-law are also deductible from assessable income. Exemption (up to 15 per cent. of assessable income in cases where income from all sources does not exceed £2,000, and up to 15 per cent. of earned income in cases where assessable income exceeds £2,000) is allowed for life-insurance premiums and National Provident Fund, superannuation, and similar contributions. Allowance is made for depreciation of premises and plant used in the production of income, the revised scale of depreciation adopted as from 1st April, 1939, in the case of premises being 2½ per cent. for wooden-frame buildings; 1½ per cent. for brick, stone, or concrete walled buildings; and 1 per cent. for buildings of reinforced stone or concrete throughout. A deduction may also be made in respect of any premium paid on account of leased machinery used in the production of income. Certain specified incomes are wholly exempt from taxation.

Income derived from farm-lands of an unimproved value of £3,000 or over is subject to income-tax, as also is income from (1) Crown land held as small grazing-runs or for pastoral purposes; (2) the extraction, removal, or sale of minerals, timber, or flax; or (3) the business of dealing in agricultural and pastoral products. Otherwise, income derived by any person from his direct use or occupation of land is exempt from income-tax.

Income-tax is payable on the taxable balance–i.e., assessable income less exemptions—and is assessed at the following rates*:—

  • Companies and public authorities, 2s., increased by 1/125d. for every £1 of such income, but not to exceed a rate of 7s. 11d.

  • Other taxpayers (who, as stated above, are—with the exception of absentees—exempted in respect of the first £200 of income), 2s., increased by 1/100d. for every £1 of such income, but not to exceed a rate of 8s. 7d.

Except in the case of companies (and, as added in 1935, public authorities), an additional 33 1/3 per cent. is imposed in respect of unearned income.

Income derived from debentures of companies, local authorities, and public authorities is taxable at the source unless a certified list of the debenture-holders (with certain other particulars) is furnished. Where such income is taxed at the source an adjustment is obtainable, so that no taxpayer need pay tax on debenture interest at a higher rate than on income from other sources.

In the case, however, of company debentures issued “free of tax,” the liability for tax is placed on the company and no adjustment is obtainable. No exemptions are allowed in respect of debenture income, and the following rates in the pound are in force at present*:—

Companies: Debentures issued “free of income-tax “—s.d.
Debentures issued before 28th August, 192340
Debentures issued after 28th August, 192360
Companies—other cases87
Local and public authorities87

The additional 33 1/3 per cent. for unearned income does not apply in respect of debenture income of the first two classes, but is imposed on the other two classes.

Companies pay tax on their full income (at the appropriate rate for such income) before distribution of dividends. The recipient of income from dividends does not pay income-tax on such part of his income, but the amount is taken into

* Under the provisions of the War Expenses Act, 1039, an addition of 15 per cent. is made to the amount of tax assessed for the tax-year 1939-40, the additional revenue being required for war purposes.

account in fixing the rate of tax to be paid. This provision also applies in the case of income from “tax-free” Government securities or “tax-free” company debentures.

In respect of stock or debentures issued by the Government of New Zealand, or by any local or public authority, or by the Public Trustee as agent of a land-settlement association, interest is not liable to New Zealand income-tax if it is payable out of New Zealand to a person not resident in New Zealand.

As mentioned previously, statistics of income-tax assessed for the tax-year 1937-38 and recent previous years, according to class of taxpayer, source, and size of income, &c., are given in the section of this Year-Book relating to “Incomes and Income-tax.”

DEATH DUTIES.

The law dealing with these classes of duty is embodied in the Death Duties Act, 1921, as subsequently amended. The main heads of taxation are estate and succession duties, which are generally referred to by the collective title of “death duties.” In addition to these there are gift duties and Native succession duties.

Estate and succession duties are due and payable to the Commissioner of Stamp Duties on assessment, an additional 5 per cent. penalty, together with interest at 5 per cent. per annum, being payable if duty is not paid within three months (this period may be extended in certain cases) after death. Gift duties are payable at the time the gift is made, and Native succession duties before the registration of the succession order by the Native Land Court. Generally the decision of the Commissioner of Stamp Duties in regard to matters of fact incidental to the assessment of duty is final, but there is an appeal on points of law or of fact by way of a case stated to the Supreme Court. An appeal on a question of law may be referred to the Court of Appeal.

Part III of the Finance Act, 1939, provides for a reduction in the amount of death or gift duty payable in cases where the margin above the limit of value on which a lower rate is payable is small.

The War Expenses Act, 1939, increases all rates of estate, succession, and gift duty by one-third, for the provision of war finance. The increase in the rate of duty applies to the estates of all persons dying after the 26th September, 1939, and, in so far as it relates to gift duty, applies to all gifts made subsequent to 26th September, 1939.

The net revenue received from death and gift duties during each of the last five years was—

Year ended 31st March,Estate Duty.Succession Duty.Gift Duty.Total Death Duties.
 ££££
1,9351,740,318419,67245,4042,205,394
1,9361,191,806319,067104,6061,615,479
1,9371,270,090346,157108,8881,725,135
1,9381,220,584355,899103,1161,679,599
1,9391,373,187329,495115,0311,817,713

ESTATE DUTY.

When the final balance of the dutiable estate of a deceased person, estimated as at the date of his death, exceeds £1,000, an estate duty is levied on the amount thereof. In the case of any estate the final balance of which does not exceed £10,000, any interest acquired by the wife of the deceased up to the value of £5,000 is exempt from estate duty, provided that the amount of deduction shall not in any case exceed the difference between the final balance and £10,000. The rate of duty on the whole estate must, however, be determined before any deduction is made. The value of any life-insurance policy or policies comprised in the estate was, by the Death Duties Amendment Act of 1925, deductible up to a maximum of £1,000, irrespective of the amount of the estate. The Finance Act of 1939 repealed this provision as from 1st August, 1939.

Up to 1920 duty was leviable on property in excess of £500, and the scale of duties ranged from 1 per cent. in cases where the net estate was between £500 and £1,000 to a maximum of 15 per cent. for large estates. The amendment made to the scale in 1920 considerably increased the duty payable, the rates, which were embodied in the Act of 1921, ranging from 1 per cent. on estates not exceeding £2,000 in value to 20 per cent. on estates of more than £100,000. Part II of the Finance Act, 1930, imposed a rate of 30 per cent. on the amount by which the final balance exceeded £100,000. Part III of the Finance Act, 1939, imposed higher rates of duty throughout. The present scale of duties (August, 1939) is as follows—

Final Balance of Estate.Rate per Cent.(a)Final Balance of Estate.Rate per Cent.(a)

(a) All rates subsequently increased by one-third for the provision of war finance".

* Plus additional 3/15 per cent. for every £1,000 or fraction thereof in excess of £11,000.

† Plus additional ⅕ per cent. for every £1,000 or fraction thereof in excess of £31,000.

‡ Plus additional 1/16 per cent. for every £1,000 or fraction thereof in excess of £51,000.

§ Plus additional ⅕ per cent. for every £1,000 or fraction thereof in excess of £91,000.

‖ 24 per cent. of £100,000, and 30 per cent. of excess over £100,000.

£    £ £    £ 
Up to 1,000NilOver 8,000 to 9,0007
Over 1,000 to 2,0001 1/2Over 9,000 to 10,000
Over 2,000 to 3,0002 2/5Over 10,000 to 11,0008
Over 3,000 to 4,0003 3/5Over 11,000 to 31,0008*
Over 4,000 to 5,0004 2/5Over 31,000 to 51,00014
Over 5,000 to 6,0005 1/2Over 51,000 to 91,00018
Over 6,000 to 7,0005 4/5Over 91,000 to 100,00022§
Over 7,000 to 8,0006 2/5100,000 and over||

SUCCESSION DUTY.

In addition to the estate duty referred to above, a succession duty is payable by any person who acquires a beneficial interest in the estate of a deceased person either by will or by intestacy. An exemption from duty is made in favour of charitable trusts, and special provision is made that the wife, lineal descendant, or lineal ancestor of a soldier who has met his death on account of the war of 191-1-18 is allowed a £5,000 exemption additional to the amounts otherwise provided.

The rates of duty vary according to the nearness of kin of the beneficiary to the deceased person. Part III of the Finance Act, 1939, has effected a general increase in the rates, which had remained unaltered since 1920. The present rates of duty (August, 1939) are as follows:—

If Successor isValue of Estate.Rate per Cent.a

(a) All rates subsequently increased by one-third for the provision of war finance.

* Including step-father, step-mother, half-brother, or half-sister.

 £    £ 
WifeUp to 5,000Nil.
Over 5,000 to 10,0001 1/3
Over 10,000 to 20,000
Over 20,0005
HusbandUp to 500Nil.
Over 500 to 1,500
Over 1,500 to 2,500
Over 2,500 to 10,0004
Over 10,0005
Father, mother, brother, or sister*Up to 500Nil.
Over 500 to 10,0005
Over 10,000 to 20,0006
Over 20,00012
If Successor isValue of Estate.Rate per Cent.(a)
 £    £ 
Child or lineal descendantUp to 1,000Nil.
Over 1,000 to 5,000
Over 5,000 to 10,000
Over 10,000 to 15,0004
Over 15, 000 to 20,000
Over 20,0005
Other relative to 4th degree Other personUp to 500Nil.
Over 500 to 10,0000
Over 10,00012
Up to 500Nil.
Other personOver 500 to 10,00012
Over 10,000 to 20,00015
Over 20,00025

In respect of moneys exceeding £1,000 that may be payable to persons domiciled out of New Zealand, and where the beneficiary is not the husband or wife of the deceased or a relative of the deceased within the third degree of consanguinity, there is an additional rate equal to 10 per cent. of the excess over £1,000.

NATIVE SUCCESSION DUTY.

Where any succession order is made by the Native Land Court on the death of a Native, no death duty in the ordinary way is payable on the property included in it, but a Native succession duty of 2 per cent. is payable on the value of the property, with a general exemption of £200.

GIFT DUTY.

A gift means any disposition of property (situate in New Zealand at the time of the gift) which is made otherwise than by will, whether with or without an instrument in writing, without full and adequate consideration in money or its equivalent. No duty is payable on a gift which, together with the value of all other gifts (not exempt from duty by reason of their nature) made at the same time or within twelve months previously or subsequently by the same donor to the same or any other beneficiary, otherwise than by way of a charitable trust, does not exceed the value of £500. Exemption from gift duty is also provided in cases of voluntary discharge of a mortgage debt where the donor and beneficiary are not connected by ties of blood or marriage. Various other exemptions were made by the Death Duties Amendment Act, 1923.

The amount of the gift duty is payable by either the donor or the beneficiary, but the beneficiary is entitled to be indemnified by the donor unless the terms of the gift provide otherwise. Particulars of any gift made are required to be furnished for assessment of duty within one month of the date of the gift, and in default an additional duty of 50 per cent. is payable. Where duty is payable, the rate (August, 1939) is based on the following scale:—

Value of Gift.Rate of Duty. Per Cent.a
(a) All rates subsequently increased by one-third for the provision of war finance.
Over £500 to £1,0003
Over £1,000 to £5,0006
Over £5,000 to £10,0009
Over £10,00012

Prior to 1920 there was a flat rate of 5 per cent. on all gifts exceeding £1,000 in value. Gifts between £500 and £1,000 were made dutiable in 1930.

STAMP DUTIES.

The term “stamp duties” covers a miscellany of items of taxation imposed by the Stamp Duties Act, 1923, and subsequent amendments.

The receipts for the last five years are shown under the various heads of stamp duties revenue as used in the public accounts.

Year ended 31st March,
1935.1936.1937.1933.1939.
 £££££
Adhesive stamps125,955149,575154,527139,94762,992
Duty on instruments238,093277,441347,738392,829393,618
Impressed stamps186,741197,637211,150227,326233,431
Stamp duty on interest6853Dr. 98....
Licenses to companies83,85687,78187,77189,40490,451
Sharebrokers' licenses2,0511,9802,0682,0921,862
Bank composition218,01734,38914,288....
Racing taxation371,985378,851503,655558,874661,443
Amusements-tax49,52656,50770,56498,64692,993
Lottery duty18,00017,76220,15320,88320,388
Oversea-passenger duty18,45520,68522,14826,67330,598
Mortgagees' indemnity fees1,3161,6041,8851,9251,843
Miscellaneous54121745
    Totals1,314,0681,224,2691,435,8611,558,6161,589,664

Bank composition (i.e., bank-note tax) yielded diminishing returns from 1st August, 1934, when Reserve Bank notes commenced to replace those of the trading banks. As at 1st August, 1936, trading banks were required to pay to the Reserve Bank amounts equal to their then outstanding notes, and the Reserve Bank assumed liability in respect thereof. As the Reserve Bank is not required to pay note-tax, this item of revenue has now disappeared.

Several of the more important items included in the foregoing table are dealt with in more detail under subsequent headings.

RACING TAXATION.

The Government tax on totalizator investments is 5 per cent. of the gross amount passed through the machines. This percentage was substituted in August, 1930 (by Part I of the Finance Act, 1930), for the former rate of 2½ per cent., which had been in force since March, 1910, prior to which the percentage was 1½. A refund of 2½ per cent., raised from 1¼ per cent. by the Finance Act (No. 2), 1935, of gross totalizator takings (up to a limit of £500) may be made to a racing club, the Minister of Internal Affairs having the right to specify the purpose or purposes for which the amount refunded in any case is to be applied.

For some years past special provision has been made annually for the racing clubs to retain for their own use a proportion of the totalizator duty payable under the Stamp Duties Act. From 1st April, 1932, to 31st March, 1934, the proportion was one-fifth, for the next twelve months it was one-tenth, and since 1st April, 1935, the former proportion of one-fifth has been in operation.

From the 1st November, 1915, a tax of 1 per cent. was imposed on the total value of all stakes, and a tax of 2½ per cent. on totalizator dividends, in addition to the tax on totalizator investments. The tax on dividends is computed on the gross amount paid into the totalizator for any horse-race after deducting 12½ per cent. (raised from 10 per cent. by the Finance Act, 1930) to cover the tax on totalizator investments and the club's commission. From the 22nd December, 1921, the tax on stakes was increased to 10 per cent. and that on dividends to 5 per cent. From the 1st April, 1924, the tax on stakes was reduced to 5 per cent., with a further reduction to 1 per cent. from 1st August, 1935.

The following figures relate to the racing year, which ends on the 31st July:—

Year ended 31st July,
1935.1936.1937.1938.1939.
*Retained by the clubs.
Number of racing-days320320320320320
Number of races2,4852,4922,4972,5062,517
 £££££
Amount of stakes348,815368,112443,538527,545550,054
Totalizator investments4,017,1504,645,9686,220,5207,201,8207,981,442
Amount paid in dividends3,314,9613,835,0735,136,2485,945,3656,589,629
Government taxes—     
On totalizator investments174,809185,838248,821288,073319,258
On dividends175,667203,173272,057314,992349,097
On stakes17,4413,6814,4365,2755,500
Totals367,917392,692525,314608,340673,855
Percentage of totalizator investments retained by clubs327,335394,908528,744612,155678,423
Unpaid fractions*24,37826,97634,65041,23545,035
Refunds of taxation granted to clubs27,63042,71844,75247,05648,390

For the financial year ended the 31st March, 1939, receipts from racing taxation amounted to £661,443, but £47,348 of this was paid back to clubs by way of refunds.

AMUSEMENTS-TAX.

A form of tax first introduced in 1917 is the amusements-tax, levied on payments for admission to entertainments. The present authority is the Amusements-tax Act, 1922, amended in 1923, 1930, and in 1937. “Entertainment” is defined as “any exhibition, performance, amusement, game, or sport to which persons are admitted for payment.” The maximum admission charge on which no tax is payable was originally fixed at 9d., but has been successively altered to 1s., 2s., and (in 1930) 1s. 6d. When the payment for admission exceeds 1s. 6d., but is not more than 2s., the tax is 3d.; thereafter, up to 3s., it is 4d.; up to 3s. 6d., 5d.; and above 3s. 6d., 1d. for each 1s. or part thereof, plus 2d. “Payment for admission” includes reservation charges. Provision is made for exemption in certain specified cases—viz., shows promoted by agricultural, pastoral, horticultural, or poultry societies; entertainments, the proceeds or the net proceeds of which are devoted to charitable, philanthropic, patriotic, or educational purposes; any entertainment promoted by any society or institution not established for profit, if the proceeds or net proceeds are devoted to the objects of the society or institution; and any swimming-sports meeting.

The following net amounts have been collected during the last ten years:—

Year ended 31st March,Amount collected. £
1,93079,887
1,931105,936
1,93274,763
1,93353,564
1,93448,715
1,93549,526
1,93656,507
1,93770,564
1,93898,646
1,93992,993

FILM-HIRE TAX.

Part V of the Finance Act, 1930, imposed, as from 1st July, 1930, a film-hire tax, which is payable monthly by holders of renters' licenses under Part IV of the Cinematograph Films Act, 1928.

The film-hire tax payable is assessed on the net monthly receipts derived by the renter from renting sound-picture films. On British films the tax is 10 per cent., and on foreign films 25 per cent., of the net receipts. Films made wholly in New Zealand are exempt from the tax. The film-hire tax yielded a revenue of £44,491 in 1934-35, £60,657 in 1935-36, £72,209 in 1936-37, £82,377 in 1937-38, and £85,882 in 1938-39.

EMPLOYMENT PROMOTION TAXATION.

Towards the provision of funds for the relief of unemployment, an unemployment levy was instituted as from December, 1930. Originally at the rate of £1 10s. per annum, payable quarterly, the levy was imposed on males of the age of twenty years and over, with certain exceptions.

In 1931 the levy was reduced to £1 per annum, but an “emergency unemployment charge” was imposed at the rate of 1d. for every 6s. 8d. of salaries or wages, other than those of domestic servants in private homes and of relief workers employed by public authorities, with their wages wholly, or (from 1934) partly, borne by the Unemployment Fund. A similar charge was imposed on incomes received from other sources by all males not wholly exempt from the levy and by women with incomes of £250 or over (from any source). In 1932 the emergency unemployment charge was altered to 1d. for every 1s. 8d. of wages, &c., and in the case of income of women other than from salary or wages was made applicable to the portion of such income in excess of £20 per annum. From 1st October, 1934, the emergency unemployment charge was reduced to 1d. for every 2s. or part thereof, and from 1st October, 1935, to 1d. for every 2s. 6d. or part thereof.

An amendment passed in November, 1934, exempted persons under twenty from tax on earned income. Women under twenty; women in receipt of pensions; and men of sixty-live upwards, women of sixty upwards, or permanently disabled persons, whose total incomes (in all cases) did not exceed £104 were exempted from the tax on unearned income. The exemption of women in respect of unearned income was increased from £20 to £50.

Natives (male and female) of twenty years or over were required to pay tax on earned and unearned income in the same way as if Europeans, but were not required to pay the levy of £1 per annum unless they elected so to do.

The Employment Promotion Act of 1936 which made numerous changes in the administration of unemployment relief and employment promotion, has now been superseded by the Social Security Act of 1938, which came into force on 1st April, 1939. This provides for a social-security contribution—at an increased rate and with a wider scope—to take the place of employment promotion taxation.

Briefly, the contributions to the Social Security Fund consist of a registration fee and a charge on salaries, wages, and other income for all persons over sixteen years of age. For males over twenty years of age the registration fee is 5s. per quarter, and for all other persons 5s. per year; while for all persons the charge on salaries, wages, and other income is 1d. in every 1s. 8d. or part thereof. The income of companies was exempt from the former employment promotion taxation, but is now liable for social-security taxation. Certain exemptions are provided for, and this matter is dealt with more fully in Section XXV.

Employment promotion taxation yielded £4,561,594 in 1934-35, £3,921,975 in 1935-36, £4,224,965 in 1936-37, £5,105,019 in 1937-38, and £5,461,202 in 1938-39. Towards the 1938-39 total the tax on salaries and wages provided £3,340,406, and on other income £1,652,208, the balance of £468,588 representing levy receipts. Corresponding figures for 1937-38 were: Tax on salaries and wages, £3,027,490; on other income, £1,628,675; and levy receipts, £448,854.

TAXATION OF INTEREST RECEIPTS.

Part IV of the National Expenditure Adjustment Act, 1932, imposed a stamp duty of 3d. for every 2s. 6d. of interest derived from New Zealand Government and local-authority debentures or other securities, with certain specified exceptions. The duty receipts (less 5 per cent. thereof to cover administrative expenses) in respect of securities of local authorities, the State Advances Corporation, and the Rural Intermediate Credit Board were payable to the respective authorities. The proportion of the duty accruing to Governmental revenue during the year 1932-33 amounted to £309,132, a further sum of £78,771 being received in the early portion of 1933-34. Subsequent loan-conversion operations have brought about a diminution in yield from this tax. In 1934-35 and 1935-36 receipts from this source were only £68 and £53 respectively, while refunds during the year 1936-37 were responsible for a debit of £98.

The stamp duty on interest was imposed not only to aid the public revenues, but to assist in equalizing in equity the 20-per-cent. reduction in mortgage interest and in rents. The balance of the equivalent reduction in interest on Government and local-authority securities was to be obtained by an adjustment of income-tax rates on investment income.

In lieu of the imposition of stamp duty on interest, a general conversion of the whole internal public debt on the basis of a 20-per-cent. reduction to a minimum effective rate of 4 per cent., operative from 1st April, 1933, was undertaken; while as a preliminary to conversion a statutory reduction of 20 per cent. to a minimum of 4¼ per cent. was made in the interest on local-authority securities.

Interest on such part of the public debt as continued to bear a higher rate than 4 per cent.—i.e., the small “dissented” balance—was made subject to an interest-tax of 33 1/3 per cent., and this provision is also applicable to dissenters from local-authority conversions. Post Office investment certificates are at maturity dutiable at 20 per cent. in respect of interest accruing after 1st April, 1933. A tax of 20 per cent., payable (less 5 per cent. of proceeds) to the Departments concerned, was also imposed on interest from State Advances, Rural Intermediate Credit, and Land Settlement Association securities.

Government receipts from the present interest-tax amounted to £44,979 in 1934-35, £43,823 in 1935-36, £41,602 in 1936-37, £10,799 in 1937-38, and £199 in 1938-39.

SALES TAX.

The 9th February, 1933, marked the inauguration of a sales tax in New Zealand. The tax is at the rate of 5 per cent. of the sale value of the goods to which it applies, a discount of 5 per cent. of the amount of tax otherwise payable being allowed for prompt payment. The tax is not a turnover tax, being payable once only and. so far as possible, at the point where the goods pass to the retailer. The Sales Tax Act is administered by the Customs Department. The net amount yielded by the sales tax has been: 1932-33 (less than two months), £38,253; 1933-34, £1,847,333; 1934-35, £2,170,503; 1935-36, £2,462,602; 1936-37, £3,044,612; 1937-38, £3,499,131, and 1938-39, £3,555,696.

Numerous classes of goods are exempt from the tax, these being, in the main, commodities of primary production, articles used in the primary industries, machinery for use in manufacture, and foodstuffs for household consumption. Goods exported from the Dominion are exempt, as are also certain commodities (e.g., gold, motor-spirit), subject to special taxation.

Monthly collections of sales tax to date are as follows:—

Month.1933.1934.1935.1936.1937.1938.1939.
 £££££££
January187,619211,137233,103294,431317,598330,294..
February10,785143,631157,653186,875194,624230,525254,484
March27,469162,416179,568206,101296,637277,690314,707
April191,091168,313191,607231,491295,082292,281310,597
May119,967165,007194,685233,493309,796273,087310,040
June136,733160,877196,571241,154283,094285,738337,492
July129,951168,662189,657232,237278,968295,664285,530
August134,290185,037201,446252,621301,002287,519271,332
September151,796172,945200,300254,669300,714296,020293,848
October158,073194,397219,537266,710305,769308,579321,125
November164,829205,256223,808272,543307,824304,381291,844
December166,847202,383223,970277,375311,047329,356..

The collections during a month relate in general to sales during the preceding month. At the commencement of the scheme, tax on goods sold in February and March, 1933, except in the case of goods imported by retailers, was not payable until April, hence the low figures for February and March and the high aggregate for April.

The above statistics indicate, in a measure, the comparative distribution of merchandise trading operations throughout the year. The following table of receipts from the sales-tax gives some indication of comparative trading operations in the principal centres.

Year ended 31st March,Auckland.Wellington.Rest of North Island.Christchurch.Dunedin.Rest of South Island.Total.*
* Includes receipts through Post and Telegraph Department.
 £££££££
1,935638,014758,150113,207295,044243,697106,5812,171,235
1,936728,575909,836120,423323,652251,673117,2742,467,660
1,937911,3011,144,162146,300405,979291,667134,0803,050,985
1,9381,039,1521,350,603167,458471,063316,120151,0523,519,109
1,9391,083,4891,379,186171,188458,826311,619144,1093,572,110

LOCAL TAXATION.

Local-governing authorities have power under various Acts of the Legislature to impose taxes for general or special purposes, as set out in Section XXVI of this book. The amount of revenue collected by local authorities during the ten years ended 31st March, 1938, was as follows:—

Year ended 31st March,Rates.Licenses and other Taxes.Total.Per Head of Population.
 ££ £s.d.
1,9295,844,495503,2656,347,7604611
1,9306,010,987535,8096,546,796487
1,9315,637,254535,8476,173,101425
1,9325,511,818508,8576,020,6753194
1,9335,237,688505,7965,743,4843151
1,9345,541,255489,2246,030,4793182
1,9355,511,442530,5916,042,0333179
1,9365,585,855576,0376,161,8923189
1,9375,994,353630,6276,624,9804311
1,9386,541,354693,1847,234,5384109

The figures are exclusive of wharfage dues, tolls, &c., received by Harbour Boards, such receipts being regarded as in respect of charges for services.

SUBSECTION C.—STATE INDEBTEDNESS.

INTRODUCTORY.

THE Minister of Finance may raise loans, when authorized by Parliament so to do, by the issue of debentures, or scrip, or stock, in New Zealand or elsewhere at his discretion. When raising a loan, the Minister may prescribe the mode and conditions of repayment, the rates of interest (not exceeding the maximum rate fixed by the authorizing Act), and the times and places of payment of principal and interest respectively. Power is given to convert debentures or scrip into consolidated stock, and the Minister may specify the terms of conversion at the time when a loan is raised, or arrange that terms shall be subsequently agreed upon. For the purpose of paying off or renewing at maturity any debenture, scrip, or other security, new debentures or other securities may be issued and disposed of if necessary. Authority also exists for the conversion of loan-money which has not yet matured, as well as for the redemption and cancellation of securities before maturity. Section 5 of the Finance Act (No. 2), 1934, authorized the Minister of Finance to transfer the management of the public debt to the Reserve Bank of New Zealand, and the transfer was effected as from the 1st October, 1936.

During the 1914-18 war period provision was made for the issue to the public of “Post Office investment certificates” of a face value of £1 and upwards, and in 1920 legislation which sanctioned a continuous issue of these certificates was enacted. Receipts from this source are utilized for the purposes of any loan which may be authorized by Parliament. The term of the certificates, formerly a minimum of five years, was altered in 1927 to such period as the Minister of Finance may determine. Certificates are now issued with a definite currency of six years, the redemption calculated at 3 per cent. compound interest. After six months from date of issue the certificates have a graduated redemption value, and, in addition, if not presented for payment at date of maturity, remain interest-bearing (at the maximum rate payable on Post Office Savings-bank deposits) for four years more.

The money composing the public debt has been borrowed on the security of the public revenues of the Dominion. No portion of the public estate is pledged for payment of either principal or interest.

The public debt is domiciled partly in New Zealand and partly in the United Kingdom, with a little in Australia.

In the debt tables the whole debt is shown (in pounds) at its nominal amount, no adjustment having been made on account of the fact that New Zealand currency is at present at a discount on sterling and at a slight premium on Australian currency. If the whole of the debt (£157 millions) domiciled in the United Kingdom were redeemed in cash at the present time, an amount equal to nearly £200 millions in New Zealand currency would be required for the purpose.

Similarly, the present depreciation of New Zealand currency in terms of sterling is not taken into account in reckoning the rate or amount of interest on the debt domiciled in the United Kingdom. Interest is taken at its nominal rate, and the cost of purchasing sterling for payment in London is included in the public accounts as expenditure on exchange.

GROSS INDEBTEDNESS.

On only three* occasions in the history of New Zealand has a reduction in the gross public debt been effected during the financial year. The first occasion was in 1891-92, when the debt was reduced by £117,282; and the second in 1922-23, when another slight reduction (£101,061) was recorded. The third occasion was in 1934-35, when the huge floating debt of £22,856,981—comprising outstanding Treasury revenue bills amounting to £3,452,109 and Treasury bills for £19,404,872 in respect of the Banks Indemnity (Exchange) Act—was entirely paid off.

The gross indebtedness of the General Government and the rate of indebtedness per head of population (inclusive of Maoris) for each of the last twenty years are given in the following table:—

As at 31st March,Amount.Per Head of Population.As at 31st March,Amount.Per Head of Population.

† Including £5,379,105 raised in January, 1929, for expenditure in 1929-30.

‡ Increase mainly floating debt, paid off in 1934-35.

 ££s.d. ££s.d.
1,920201,170,7551621291,930267,383,343179110
1,921206,324,3191621571,931276,033,358182120
1,922219,054,3851686101,932281,942,800184163
1,923218,953,324165421,933282,622,958183152
1,924221,616,361164851,934302,791,99619568
1,925227,814,6471652111,935280,581,2171791411
1,926238,855,478169861,936282,561,098179106
1,927245,850,8891701901,937287,670,200181410
1,928251,396,2521721851,938290,201,342180175
1,929264,191,9831791191,939303,970,272187110

After the establishment of the Reserve Bank (1st August, 1934), £20,229,700 of sterling funds held by the Government in London were transferred to New Zealand at the current rate of exchange through the Reserve Bank, the credit received (£25,084,828 in New Zealand currency) being sufficient with other funds available to redeem all Treasury bills then outstanding.

The history of the public debt in New Zealand may conveniently and with advantage be divided into four distinct periods—viz., (1) Up to the end of the financial year 1890-91; (2) from the 1st April, 1891, to the 31st March, 1914; (3) from the 1st April, 1914, to the 31st March, 1920; and (4) from the 1st April, 1920, to date.

Up to the 31st March, 1891, loan expenditure had been chiefly concerned with railways and roads, the taking over of the loan liabilities of the Provincial Governments on their abolition, and the Maori War. The year 1891 marks the beginning of a period during which the functions of the State were widely extended, most notably as regards financial assistance to settlers, workers, and local authorities; the repurchase of alienated lands, the working of coal-mines, and the development of hydro-electric power.

* See, however, letterpress on page 603.

The advent of war in 1914 created a second point of demarcation in the history of the loan expenditure of the General Government, large sums having to be borrowed for war purposes. A feature of this period was the postponement of all public works, &c., except those of pressing necessity. Expenditure of an unproductive nature occasioned by the war was necessarily continued for some time after the Armistice, but the end of the financial year 1919-20 may be fairly regarded as concluding this period.

The gross indebtedness at the 31st March, 1891, 1914, 1920, and 1939, with the increase between these dates, was as follows:—

 £
* Excluding £4,976,600 raised In March, 1914, for redemptions early in 1914-15.
At 31st March, 189138,830,350
Increase to 31st March, 191455,923,477*
At 31st March, 191494,753,827*
Increase to 31st March, 1920106,416,928
At 31st March, 1920201,170,755
Increase to 31st March, 1939102,799,517
At 31st March, 1939£303,970,272

An amount of £7,235,462 representing outstanding advances by way of overdraft in respect of primary produce purchased for export or sale under the authority of the Primary Products Marketing Act, 1936, and the amending Act of 1937, is not included in the public debt as at 31st March, 1939.

In addition to the foregoing, there are certain contingent liabilities, consisting of (1) loans guaranteed by the State; (2) liabilities in respect of superannuation funds; and (3) State guarantees in respect of various undertakings.

In regard to the first item, the amount of guaranteed loans outstanding at 31st March, 1939, was £45,264,190, as against which accumulated sinking funds amounted to £433,795. Of the guaranteed loan total of £45,264,190, £44,521,490 is in respect of State Advances Corporation stock and debentures, the remaining loans being those of certain local authorities. Payments on guaranteed loans during the year 1938-39 aggregated £1,810, but as a set-off against this amount credits were received amounting to £6,674, the result being a net credit of £4,864.

As at 31st March, 1938, the total of subsidies (not including accumulated interest) short paid to the Teachers' and Public Service Superannuation Funds, and the excess of subsidies recommended by the Actuary over subsidies paid to the Railways Superannuation Fund, was £7,060,944. This subject is covered in detail in the next section (Section XXV).

The third class of contingent liabilities comprises various items, such as: the State guarantee to policyholders of the Government Insurance Department under the Government Life Insurance Act, 1908; the guarantee to the Reserve Bank under the Finance Act, 1934, in respect of sterling exchange; and certain undertakings under the State Advances Corporation Act.

CLASSIFICATION OF PUBLIC DEBT.

In classifying the public debt according to nature or purpose the most usual distinction is that made on the basis of whether raised for ordinary purposes, war purposes, the settlement of discharged soldiers, or State advances. The following summary shows that the whole of the increase between 31st March, 1920, and 31st March, 1939, was in respect of the ordinary and State advances debt, the war and discharged soldiers sections showing substantial reductions. The total of war loans amounted to £82,245,673, of which approximately £21,000,000 had been redeemed to the 31st March, 1939.

Class.Total.Per Head.
 1920.1939.1920.1939.
 £££s.d.£s.d.
Ordinary95,483,658203,821,0477731112590
War80,089,02561,195,8006415037134
Discharged soldiers11,120,0004,810,54781992193
State advances14,478,07234,142,878111412103
Totals201,170,755303,970,272162129187110

A more detailed allocation of the debt as at the 31st March, 1939, is now given:—

 £
Railways68,245,952
Hydro-electric schemes13,902,944
Post and telegraph services15,183,733
Public buildings, schools, and sites16,627,048
Roads and highways35,773,210
Harbours and lighthouses2,140,217
State forests2,447,097
Housing6,458,945
Land settlement and improvement25,833,722
Shares in Bank of New Zealand875,000
Shares in Reserve Bank of New Zealand1,630,787
Investment in State Advances Corporation38,045,375
Share in Nauru and Ocean Island phosphates317,850
Development of mining1,072,693
Tourist resorts719,930
Immigration3,317,380
War and defence63,143,292
Miscellaneous assets and services7,596,223
Not yet allocated638,874
    Total£303,970,272

MOVEMENT IN PUBLIC DEBT DURING 1938-39.

During the year 1938-39 additional debt to the amount of £16,748,986 was incurred for the following purposes:—

 £
Public works9,622,279
Electric supply180,000
Main highways2,675,600
State coal-mines95,000
State forests175,000
Housing4,000,000
Raised for redemption but not used1,107

As an offset to the above increases, debt aggregating £2,980,056 was redeemed during the year, principally by utilization of funds in the Public Debt Repayment Account. The net result of the year's operations was thus an increase of £13,768,930 in the public debt, long-term debt being reduced by £181,070, and the internal floating debt increased by £13,950,000.

PUBLIC DEBT CONVERSION.

A scheme of conversion of practically the whole of the locally domiciled debt bearing interest higher than 4 per cent. was successfully carried out in the early part of 1933. Holders had the option of dissenting, but, as mentioned in the preceding subsection (p. 594), interest on the dissented portion was made subject to an interest-tax of 33 1/3 per cent. Holders who signified neither assent nor dissent were regarded as having assented.

On the new securities issued in lieu of converted securities the interest-rate is 4 per cent. per annum, except that in the case of securities exempt from income-tax the rate will be 3½ per cent. until expiration of the period of exemption and 4 per cent. thereafter. The new securities are spread over six maturity dates as follows:—

* For securities exempt from income-tax.
15th January, 1940.15th April, 1949.
15th March, 1943.*15th May, 1952.*
15th February, 1946.15th June, 1955.

In cases where interest was reduced by not more than 20 per cent., the new securities issued were for the same amount of principal as the converted securities. Where the reduction of interest amounted to more than 20 per cent., the holder received a premium, the conversion scheme thus involving a slight increase (£491,254) in the aggregate gross debt.

The amount of debt to which the conversion scheme applied was £115,000,000. Actual assent to conversion was given in respect of some £110,000,000, and implied assent to approximately £5,000,000, dissents expressed covering only £480,000, or less than ½ per cent. of the total.

The successful conversion of £5,000,000 5-per-cent. debt into 3½-per-cent. securities at £97 in October, 1933, was the only external debt operation undertaken during the fiscal year 1933-34.

During 1934-35 and 1935-36 further conversion operations were carried out in respect of external debt. The first comprised £3,989,100 of 4-per-cent. stock, which was converted to 3½-per-cent. stock at par in October, 1934. The second and larger operation concerned £10,135,800 of 5-per-cent. stock maturing in 1945 but with a right to redeem on or after 1st July, 1935. Of this, £8,000,000 was converted to 3-per-cent. stock at £98½, and the remainder (£2,135,800) redeemed.

On 1st August, 1936, the right accrued to redeem £5,869,989 of 6-per-cent. stock, and of this £4,000,000 was converted to 3-per-cent. stock at £98½, and the remainder (£1,869,989) redeemed, mainly by the utilization of funds in the Public Debt Repayment Account.

During the year 1936-37 opportunity was taken to exercise the right to repay £12,426,875 of 4-per-cent. 1937-40 stock and debentures domiciled in New Zealand. Cash and conversion applications totalled £11,440,249, and the balance required for redemption was found by the issue of Treasury bills for £925,000, and by the utilization of £61,626 from debt-redemption resources.

1939 CONVERSION LOAN.

Stock to the value of £17,173,191 falls due in London on the 1st January, 1940, and to meet this the Government arranged for the issue of a £16,000,000 sterling cash and conversion loan bearing interest at 3½ per cent. per annum at £99 per cent. The remainder of the £17,173,191 is held by New Zealand institutions, and other arrangements will be made for its conversion on due date.

Details of the terms of issue are as follows (applications closed on the 5th August, 1939):—

  • Holders of the £3 10s. per cent. stock due to be repaid on 1st January, 1940, had the right to receive in exchange for each £100 stock surrendered £100 of £3 10s. per cent. 1939-45 conversion stock together with a cash payment of £1.

  • Cash applications were to be accepted up to an amount sufficient to make up, with the stock issued in conversion, a total of £16,000,000. The proceeds of the cash receives will be applied towards redemption at par on 1st January, 1940, of the original stock which has not been converted.

  • The new stock will be redeemed by purchases at or under par, exclusive of accrued interest, or by half-yearly drawings at par in sums of £100, commencing 1st July, 1940. The Government has undertaken to provide for redemption of this stock by making available in London, out of funds accruing from exports from the Dominion or otherwise, sufficient sterling to repay the whole of this issue by 1st January, 1945, by half-yearly instalments of £1,000,000 during 1940 and £1,750,000 there-after, payable on or before 30th June and 31st December in each year.

  • During periods 5th June to 20th June and 5th December to 20th December in each year, commencing in 1940, holders of stock will have the option of converting such stock, in sums of £100, into one-half each of £3 10s. per cent. stock 1949-54 and 1955-60, at rates to be published from time to time. To the extent that these options are exercised in any half-year the obligation to redeem in that half-year will be reduced.

  • The Government reserves the right, on or at any time after 1st July, 1941, on giving not less than three months' notice, to redeem at par the whole or any portion of the stock, not being less than a nominal amount of £1,000,000 sterling, at any one time.

DOMICILE OF DEBT.

Between the 31st March, 1914, and the 31st March, 1939, the amount of New Zealand's public debt domiciled in London increased from 78½ to 157 million pounds, while that domiciled in New Zealand increased from 17 to 146 million pounds. The amount domiciled in Australia, never considerable, has declined to negligible proportions. The table following shows, for each of the last ten years, the amount of outstanding debt domiciled in London, Australia, and New Zealand.

At 31st March,Amount.Percentage of Total.
London.Australia.New Zealand.London.Australia.New Zealand.
 £££Per Cent.Per Cent.Per Cent.
1,930146,580,5024,276,750116,526,09154.821.6043.58
1,931154,546,9414,175,350117,311,06755.991.5142.50
1,932159,641,8553,914,550118,386,39556.621.3941.99
1,933161,400,7032,868,710118,353,54557.111.0141.88
1,934160,908,1052,908,150138,975,74153.140.9645.90
1,935160,972,2302,183,550117,425,43757.370.7841.85
1,936158,711,9301,592,650122,256,51856.170.5643.27
1,937156,737,016891,900130,041,28454.480.3145.21
1,938156,857,016882,600132,461,72654.050.3145.64
1,939156,853,016879,600146,237,65651.600.2948.11

As a result of operations during 1938-39 the debt domiciled in New Zealand recorded an increase of £13,775,930. Debt domiciled in London and Australia, on the other hand, recorded decreases of £4,000 and £3,000 respectively.

The increases recorded for both London and New Zealand domiciled debt during the previous year 1937-38 were brought about by the inclusion of rural advances bonds as part of the public debt. Of the £4,213,050 included under this heading during that year, £120,000 was domiciled in London, £83,300 in Australia, and £4,009,750 in New Zealand.

MATURITY YEARS OF DEBT.

The maturity years of the debt outstanding at the 31st March, 1939, are shown in the following statement, which distinguishes between the various countries of domicile.

Maturity Date.Due inTotal Debt.
From 1st, April.To 31st March.London.Australia.New Zealand.
Public.Departmental

* Government has option to redeem on or after the earlier date on giving notice.

† Advances by Imperial Government for State Advances purposes.

‡ Funded debt—repayable by instalments.

  £££££
Overdue......4,265..4,265
Treasury bills......16,100,000425,00016,525,000
1925*19462,090,909......2,090,909
1938*1942....2,812,380357,1763,169,556
19391,94017,173,191..266,2418,90017,448,332
1939*1,942....4,613,505..4,613,505
1939*1,943....13,678,870..13,678,870
19401941....500,010..500,010
19411942..17,30037,000..54,300
1942*1,946....9,211,315631,1559,842,470
1942*1,96310,505,989..378,639..10,884,628
19431,9447,339,656......7,339,656
194419457,780,408......7,780,408
19451,94622,543,590..2,500..22,546,090
19461,947....469,3401,192,7431,662,083
1946*1,950....8,322,900642,8858,965,785
19471,94811,341,60983,3001,676,6502,301,60015,403,159
1947*1,95819,225,465......19,225,465
19481,949......10,50010,500
1948*1,9545,000,000......5,000,000
19491,9507,500,000......7,500,000
1949*1,953....12,484,910..12,484,910
19501,9511,250,000779,000250,000..2,279,000
1952*1,95612,000,000..7,979,0001,424,26521,403,265
1952*1,957....6,810,0602,183,5658,993,625
19551,956....750461,700462,450
1955*1,9613,989,100......3,989,100
19561,95712,900..2,7102,439,2042,454,814
1956*1,9725,000,000......5,000,000
19571,958....10,55021,199,19521,209,745
19581,959....2,00017,799,94717,801,947
19591,960......9,546,2269,546,226
1946577,446......577,446
195823,522,753......23,522,753
Totals..156,853,016879,60085,613,59560,624,061303,970,272

PRICES OF NEW ZEALAND STOCKS.

The highest and lowest London prices for the principal New Zealand stocks, taken over a range of five years, are quoted.

Rate per Cent.Maturing.Highest.Lowest.
1934.1935.1936.1937.1938.1934.1935.1936.1937.1938.
* Redeemed or converted.
  ££££££££££
 1,945100⅜101 1/16101⅜98⅜97 7/1694 11/169796¼93 9/1685 15/16
31952-55....99197⅞89 15/16....9488⅛74½
1,940103 15/16104¼103¼101 13/16101 7/16100¼98½99½984 13/1697 11/16
41943-63105 11/16106 7/16104½102¾100⅜101100 11/1699½98 ft83 7/16
1,944111110 3/16108½105 1/169103 15/16105 3/16104 5/16102100⅜94¼
1,945111110 3/16108⅝105 5/16103 15/16105 3/16104 5/16102100⅜94⅛
1,947111 1/16111 7/16109 1/16106 9/16104 7/16105⅝105 1/1610310192⅜
1948-58110 13/16111 11/16109¾106 1/16103¾105⅞105⅞103100¾90⅛
51935-45102 11/16101½***101 3/16100¼***
51,946115115¼113 7/16109 1/16107 7/16109⅜108 15/16105103 7/1697
51,949116¾117 3/16114¼112 13/16109 7/16112 3/16111106¼105¼97½
61936-51106⅜105⅞***105 3/16101½***

INTEREST.

Of the public debt outstanding at 31st March, 1932, only approximately 30 per cent. of the total bore interest at a rate of 4 per cent. or lower. Chiefly as a result of conversion operations, the amount of debt at the 31st March, 1939, bearing interest at a rate of 4 per cent. or under was £203,441,440, or 67 per cent. of the total. The rates of interest on the debt as at the 31st March, 1939, were as given below.

Rate of Interest.Debt maturing in—Total.Gross Annual Interest Charge.
London.Australia.New Zealand.
* Funded debt.
Per cent—£££££
Overdue....1,6651,665..
....5,335,0005,335,00066,687
2....200,000200,0004,000
....11,769,00011,769,000294,225
321,670,380..35,408,93457,079,3141,712,377
....500,000500,00016,250
26,161,290..26,861,12753,022,4171,855,784
....3,558,4563,558,456133,442
410,505,989..61,471,26471,977,2532,879,089
47,459,54717,3003,91047,480,7572,136,632
£4 19s. 5.88d.*24,100,200....24,100,2001,193,230
525,705,61083,3001,127,70026,916,6101,345,830
1,250,000779,0006002,029,600111,628
Totals156,853,016879,600146,237,656303,970,27211,749,174

The total annual amount of interest payable on the public debt as at the 31st March, 1939, including the funded debt (payments in respect of which are at present in abeyance), is £11,749,174, which gives an average rate of £3 17s. 4d. per £100. The total interest and the average rate per cent. payable on the debt domiciled in the various markets are :—

 TotalAverage Rate
 ££s.d.
London (sterling)6,668,933450
Australia47,789588
New Zealand5,032,4523810

The actual net interest payments during the last twenty years out of the Consolidated Fund Ordinary Revenue Account are shown in the table following, together with the rate per head of mean population. The figures for recent years have been affected by the discontinuance of payments on the funded debt, by conversion operations, and (adversely) in some years by the existence of Treasury bills of considerable proportions.

Year ended 31st March,Amount.Rate per Head.Year ended 31st March,Amount.Rate per Head.
  ££s.d.££s.d.
19206,352,3445521,9309,136,301638
19216,807,2175881,9319,266,676638
19227,390,86451521,9329,035,0255191
19237,904,2606071,9338,498,6815111
19247,877,59751811,9348,836,4675147
19257,865,26251531,9358,023,813533
19268,129,799516101,9367,730,1944189
19278,450,794518111,9377,604,4694164
19288,397,07451641,9387,673,0714163
19298,675,220518101,9397,500,5154131

The above amounts are net payments out of the Consolidated Fund only, and do not comprise the whole of the interest payments in respect of moneys raised by way of loans. For loans raised for the purposes of State advances to settlers, workers, local authorities, &c., the interest, although made a charge upon the Consolidated Fund, is recovered from the receipts derived from interest paid by borrowers. Other loan-money coming within the same category is that raised for land-settlement, State coal-mines, the development of water-power, and a number of other purposes. Such interest does not become a burden upon the taxpayer, and consequently is not included in the figures upon which the rate per head of mean population is calculated.

The gross interest charges borne by the Consolidated Fund during the year ended 31st March, 1939, totalled £10,158,565, of which £2,658,050 was recovered from other accounts, &c. In addition, interest paid on rural advances bonds during the year amounted to £3,000. There should be set off against the interest charges certain amounts shown in the public accounts not as recoveries but as revenue. These are interest on railway capital liability (£701,063), interest on post and telegraph capital liability (£588,000), and interest earned on the investment of public moneys (£445,396).

Of the gross interest payments from the Consolidated Fund during 1938-39, including interest on rural advances bonds, £5,285,869 was paid in London and £108,228 was paid in New Zealand, in respect of debt domiciled in London. A gross interest payment of £47,934 was made in Australia in respect of debt domiciled in that country, while £4,719,534 was paid within the Dominion in respect of the internal debt. The figure for payments in London represents interest only, exchange being additional. At the instance of the Imperial Government, no payments have been made for some years past in respect of the funded debt (vide later reference).

Administration and management charges in respect of debt services amounted to £50,311 in 1938-39, and payments on guaranteed loans showed a credit of £4,864. Amortization charges are shown under the next heading.

AMORTIZATION OF DEBT.

PUBLIC DEBT REPAYMENT.

A brief historical account of the provisions for paying off loan-moneys will be found in the 1931 number of the Year-Book. With certain exceptions, the public debt is now subject to the provisions of the Repayment of the Public Debt Act, 1925. This Act, which repealed the Public Debt Extinction Act, 1910, substituted for the long-term sinking-fund system a method whereby the Dominion's debt-reduction resources may be available to purchase and cancel Government securities as the market price becomes advantageous, or pay them off at maturity. For this purpose there is issued annually out of the Consolidated Fund a sum equal to ½ per cent. of the debt affected as at the 31st March, plus ½ per cent. of the total amount previously repaid or redeemed under the provisions of the Act. To this is added a sum equal to interest at 3½ per cent. per annum on the debt paid off under the scheme. The bulk of the savings in interest on debt paid off is thus applied to further repayments of debt.

Under the Act of 1925 a capital fund termed “The Public Debt Redemption Fund” was created, consisting of (1) the accumulations of sinking funds, amounting to £11,225,645 (leaving aside the State Advances, Westport Harbour, and other special sinking funds); (2) the amount advanced out of surplus revenue for discharged soldiers' settlement, originally £13,500,000, but later reduced to £2,000,000 through £4,850,000 having been transferred to the Consolidated Fund, £4,000,000 used for debt redemptions, and £2,650,000 written off as a result of the revaluation of the properties of discharged soldiers. The £2,000,000 remaining under this heading is represented by a contingent liability of the State Advances Corporation. The net earnings from the Public Debt Redemption Fund are credited to the Consolidated Fund and applied towards meeting the charge against that fund created by the Act.

The Act does not apply to the whole of the public debt, revenue bills and certain classes of the debt for which there are special amortization provisions being excluded. The hitter include funded debt, loans raised for State advances, and loans raised in respect of electric supply. Of the total gross indebtedness of £227,814,647 at the 31st March, 1925, £174,128,135 was subject to the operation of the Act. The amount subject to the operation of the Act as at the 31st March, 1939, was £230,650,303.

To the 31st March, 1939, securities of a nominal value of £18,433,865 had been redeemed under the Repayment of the Public Debt Act. These transactions have effected a considerable annual saving of interest to the Consolidated Fund.

The following table shows the operations of the Public Debt Repayment Account during each of the last ten years together with the interest earnings of the Redemption Fund. In addition to transfers from the Consolidated Fund, the Public Debt Repayment Account is credited with interest earnings (£6,170 to 31st March, 1939) on its investments. On the expenditure side there have been £242 for cost of exchange and transfers of £23,672 to the Consolidated Fund in respect of premiums on exchange. The account had an unexpended balance of £3,263 at 31st March, 1939.

Year ended 31st March,Interest on Redemption Fund (paid to Consolidated Fund).Transfers from Consolidated Fund.Utilized to redeem and cancel Securities.Nominal Value of Securities redeemed and cancelled.
1/2 per Cent. of Debt at Beginning of Year or redeemed under Act.3½ per Cent. of Debt redeemed.Total.
Prior to Beginning of Year.During Year.*
* Computed from dates of redemption.
 £££££££
1930996,695993,567135,71524,9631,154,2451,158,4721,158,472
1931858,8931,006,800176,26123,9981,207,0591,209,9281,209,928
1932699,7901,047,687218,60912,9041,279,2001,243,1181,264,330
1933620,0891,066,173262,8616,9861,336,020919,850922,310
1934629,4961,083,209295,14113,9121,392,2621,776,2301,776,270
1935632,0651,183,761357,31137,2211,578,2931,623,1611,623,161
1936615,0201,102,160414,12126,8061,543,0871,440,2151,440,215
1937385,8551,120,673464,52939,3061,624,5081,691,1881,691,188
1938463,8661,150,979523,7205,0751,679,7741,713,8111,713,811
1939392,4861,167,668583,7042,7511,754,1231,756,6171,756,617

The funds in the Public Debt Repayment Account are not the only source from which debt-redemptions are made. Other accounts provided £1,226,832 for redemption purposes in 1938-39.

AMORTIZATION OF FUNDED DEBT.

At the 31st March, 1922, £27,532,164 of New Zealand's public debt was owing to the British Government, all but £1,191,919 of this being on account of war expenditure. Arrangements were made with the Imperial Government in 1922 for the funding of this debt.

The funding was carried out on an annuity basis of 6 per cent., the total payment each year (payable half-yearly at 1st June and 1st December) being £1,651,930. Interest is at the rate of £4 19s. 5.88d. per cent., the balance of the 6 per cent. going to reduction of the debt.

Under the agreement the original amount of £27,532,164 would have been automatically discharged from the public debt by the end of the financial year 1958-59. The British Government has, however, following the Hoover proposals regarding war debts, voluntarily suspended New Zealand's obligations in respect of the funded-debt payments due in and since December, 1931. On the other hand, a provision that any part of the funded debt may be redeemed at any time was taken advantage of in 1924, when £200,000 was paid off the Naval Defence Loan.

Payments to the end of 1938-39 have been:—

Year ended 31st March,Interest.Principal.Balance of Debt outstanding.

* Half-year only.

† Including £200,000 additional, paid off Naval Defence loan.

 £££
1923*684,794141,17127,390,993
19241,358,966292,96427,098,029
19251,344,212507,71826,590,311
19261,318,641333,28926,257,022
19271,301,856350,07425,906,948
19281,284,224367,70625,539,242
19291,265,706386,22425,153,018
19301,246,254405,67624,747,342
19311,225,822426,10824,321,234
1932*604,930221,03524,100,199
1933-39NilNil24,100,199

The provisions of the Repayment of the Public Debt Act, 1925, do not apply to the funded debt.

ACCRUED SINKING FUNDS.

Special sinking funds have been set up in respect of certain classes of debts not covered by the Repayment of the Public Debt Act. The amount remaining in these sinking funds as at 31st March of each of the last ten years was as follows:—

As at 31st March,Amount.As at 31st March,Amount.
 £ £
19302,331,4231,9352,657,832
19312,313,6731,9362,592,458
19322,435,1171,9372,715,960
19332,509,5451,938364,668
19342,647,9851,939389,166

Payments to sinking funds during the year ended 31st March, 1939, totalled £207,119 and the funds earned £12,784 by way of interest. Sinking-fund holdings to the amount of £195,380 were utilized for the redemption of debentures during the year. An amount of £25 was paid by way of administrative fee and expenses in the case of Westport Harbour.

Details of the accrued sinking funds as at 31st March, 1939, were as follows:—

 £
State coal-mines11,767
Westport Harbour367,076
Electric supply10,321
Samoan loan2
Total£389,166

NET INDEBTEDNESS.

While the sinking funds were annually increasing it was customary to regard the net-indebtedness figures as giving the best comparison of indebtedness between one year and another. The initiation of the present system of amortization has, however, destroyed the comparison on this basis, and the gross figures (as shown at the beginning of this subsection) now afford a better and more comparable index. The figures of net indebtedness for the last twenty years are as follows:—

As at 31st March,Amount.Per Head of Population.As at 31st March,Amount.Per Head of Population.
 ££s.d. ££s.d.
1920193,913,1911561551,930265,051,920177198
1921197,561,2221551741,931273,715,71018114
1922208,241,121160081,932279,507,68318344
1923207,024,048156421,933280,113,41318226
1924208,595,7431541531,934300,144,011193126
1925214,287,128155691,935277,923,385178010
1926236,581,2161671631,936279,968,640177177
1927243,407,349169511,937284,952,179179107
1928248,740,7361711111,938289,833,4881801210
1929256,652,371174931,939303,579,999186170

In general the net indebtedness shown in the foregoing table is merely the balance loft after deducting the accrued sinking funds from the amount of debentures and stock in circulation. In some years, however, a further deduction has been made on account of loan-money raised towards the end of the financial year for the redemption of debentures falling due early in the succeeding financial year, or (in 1928-29) for expenditure in the next year. The years concerned and the amounts so deducted on this account are—

Year ended 31st March.Amount. £
192125
1922157,870
192350,020
192446,590
192564,680
192819,750
19295,383,051
19313,975
19372,061
19383,186
19391,107

In computing the net indebtedness, no allowance is made for the fact that a portion of the debt is actually held by the Government itself. In the course of the year's financial transactions securities are bought and sold by Treasury accounts, and the investments held as at the 31st March in each year, while forming part of the debt, do not represent amounts due directly or indirectly to the public. Public debt held by Treasury accounts as at the 31st March of the last five years has been: 1935, £1,193,442; 1936, £1,801,418; 1937, £810,879: 1938, £3,122,237; and 1939, £4,495,421.

The Minister of Finance also holds stock—amounting to £30,390,750 on the 31st March, 1939—issued by the State Advances Corporation as consideration for securities taken over from the State Advances Office and from the Discharged Soldiers' Settlement Account.

GENERAL AND LOCAL GOVERNMENT DEBT.

The statistics given throughout this subsection refer to the indebtedness of the General Government only, and do not include the debt of local-governing authorities, which are dealt with in the section of this volume relating to local government.

Local-governing authorities bad at the 31st March, 1938, a gross indebtedness of £69,916,466, and if this amount be added to the gross debt of the General Government at 31st March, 1938 (£290,201,342) the aggregate becomes £360,117,808. From this total should be deducted approximately £5,160,000 in respect of outstanding loans to local authorities from the State Advances Corporation and the Main Highways Board, and £1,573,938 on account of inscribed debt under the Government Loans to Local Bodies Act, leaving approximately £353,000,000 as the sum total of the public and semi-public debt. This figure represents a rate of £220 per head of population.

The figures relating to local authorities' indebtedness in the foregoing paragraph are inclusive of Hospital Boards, and to this extent differ from those given in the section on local government. Hospital Board indebtedness at 31st March, 1938, totalled £1,855,515.

SUBSECTION D.—STATE ADVANCES.

INTRODUCTORY.

As is shown in Subsection C of this section, an appreciable proportion of the public debt of New Zealand is represented by money borrowed by the State not for its own requirements, but for the purpose of lending out at easy rates of interest for various defined purposes.

As early as 1892 the Government commenced the purchase of lands for cutting up for sale or lease to private individuals, and two years later the passing of the Advances to Settlers Act, 1894, marked the inauguration of a series of schemes for lending money to settlers, workers, &c., for the purchase of homes, the improvement of farms, and the development of resources and of industries. The schemes varied considerably in detail, but all lay in one of two main classes—those in which the money was advanced on security, and those in which the expenditure was incurred by the Government itself in the first place and recouped from sales or leases. Advances to settlers, workers, and discharged soldiers are the principal examples of the former class, and the purchase of land for settlements (including the settlement of discharged soldiers) is the principal of the latter.

Of the advances proper, most classes are now administered by a Department known as the State Advances Corporation, and the accounts relating to these are not included in the Public Account, nor are they dealt with in Subsection A of this section. The various systems of advances administered by the State Advances Corporation are dealt with in the present subsection. A brief description of the system of advances to discharged soldiers for settlement purposes is outlined in the section of this book dealing with land tenure and settlement, while particulars of advances for mining purposes are given in the section relating to mining. Mortgage securities under the Discharged Soldiers Settlement Act have been transferred to the State Advances Corporation and are dealt with in this subsection.

The National Expenditure Adjustment Act, 1932, effected a reduction in the rate of interest on existing mortgages as from 1st April, 1932. The reductions were originally intended to operate for three years only, but the term was extended to five years by the Finance Act, 1934: and the reduction was made permanent by a section in the Mortgagors and Lessees Rehabilitation Act, 1936. The standard reduction was 20 per cent. in the case of mortgages entered into on the 1st January, 1930, or within five years immediately preceding, and in the case of earlier mortgages 20 per cent. of the rate of interest (determined in manner laid down) that would have been fixed by the mortgage had it been entered into on the 1st January, 1930. No such deductions were allowed, however, which would have the effect of bringing the net interest rate on chattel mortgages below 6½ per cent. or on other mortgages below 5 per cent.

Legislation of recent years has widened the powers of granting relief to, and otherwise ameliorating the conditions of, mortgagors who have been unable to meet their obligations in full.

Under the Mortgage Corporation of New Zealand Act, 1934-35, the State Advances Department was virtually abolished, practically the whole of its operations being taken over by the Mortgage Corporation. The State Advances Corporation Act, 1936 (described under the next heading), effected what practically amounted to a reversion to the traditional State advances system.

STATE ADVANCES CORPORATION.

The Mortgage Corporation of New Zealand Act, 1934-35, authorized the creation of a corporation under a Board composed of directors appointed partly by the State and partly by the shareholders of the Corporation.

By the State Advances Corporation Act, 1936, the private capital invested in the Mortgage Corporation was cancelled, provision being made for repayment to shareholders in respect of shares held in the Corporation. The capital of the Corporation was maintained at £1,000,000, however, by an investment from the Consolidated Fund, while all securities issued by the Corporation carry a State guarantee. The management of the Corporation is vested in a Board of Directors consisting of two joint managing directors appointed by the Governor-General in Council, one or more other directors similarly appointed, and an ex officio member (necessarily a Treasury official) appointed by the Minister of Finance. In the exercise of its powers, the Board is enjoined to have regard to any representations that may be made by the Minister of Finance. Every direction in writing given by the Minister is binding on the Board.

The change in administration and the institution of a State guarantee on securities issued by the Corporation represented the major alterations in the preexisting law. All the functions of the Mortgage Corporation were transferred to the new body, while certain extensions of function were made—e.g., the administration of the Housing Act, 1919. Following is a résumé of the principal functions of the State Advances Corporation:—

The Corporation administers the State Advances, &c., loans previously transferred to the pre-existing Mortgage Corporation, viz.—

  1. Mortgages in respect of advances to settlers or workers under the State Advances Act, 1913:

  2. Mortgages in respect of advances under the Rural Advances Act, 1926:

  3. Debentures or other securities vested in the State Advances Superintendent in respect of advances to local authorities under Part III of the Local Bodies' Loans Act, 1926, or corresponding provisions of former Acts:

  4. Crown mortgages in respect of advances under the Discharged Soldiers Settlement Act, 1915, or any amendments thereof (including advances under section 11 of the Finance Act, 1933):

  5. Crown mortgages in respect of advances made out of the Land for Settlements Account by direction of the Lands Development Board established under Part I of the Land Laws Amendment Act, 1929.

In addition, all other mortgages of land or any other securities held by the State Advances Superintendent or by the Crown as security for loans made out of the State Advances Account or out of the Public Account have been transferred to the Corporation.

The Corporation may advance on mortgage, generally speaking, up to two-thirds of the value of the security, with provision for the extension of the limit in certain cases. In such instances the Minister of Finance guarantees the Corporation against any loss attributable to the excess of the loan over two-thirds of the security. In order to provide finance the Corporation may issue bonds, stock, or other securities, which are State guaranteed. In addition to its primary function of providing cheap long-term finance in the form of first mortgages on property, the Corporation may now make loans to local authorities out of the Housing Account for purposes of erecting workers dwellings; while it may also make advances out of its ordinary account for the development of existing industries or the establishment of new industries.

Loans are, in general, secured by table mortgage for a term not exceeding fifty years, though in certain instances a flat mortgage for a period not exceeding five years may be granted. There is provision for varying the scheme of table mortgages in special circumstances, part of the mortgage (at least one-half) to be in the form of a table mortgage and the remainder a flat mortgage falling due on the date of the last instalment of the table mortgage.

A mortgagor may be required to effect a policy of life insurance as additional security, such policy to be assigned to the Corporation. Up to the close of the financial year 1937-38, provision for cover under this scheme had been made in some five hundred loan offers since the inception of the scheme, the cover to be provided under these policies exceeding the sum of £364,000. A mortgagor may not give any subsequent mortgage or any other charge over land subject to any mortgage to the Corporation, except with the written authority of the Board.

The Board is required from time to time to fix the rates of interest to be paid under mortgages to the Corporation, so as to make adequate provision to cover the costs of administration and for all other matters incidental to the proper functioning of the Corporation. After such provision as the Minister of Finance thinks proper has been made for the depreciation of securities or other assets and for such other matters as in his opinion are necessary for the efficient conduct of the business of the Corporation, the surplus for each financial year is to be paid into the Public Account unless the Minister, in his discretion, authorizes the Board to credit it, in whole or in part, to the General Reserve Fund of the Corporation.

Each mortgagor is required to pay in cash or to borrow, as an addition to the capital sum, 2 per cent. of any mortgage granted by the Corporation. These amounts, together with the surplus profits referred to above, and certain payments on account of mortgages transferred to the Corporation, form the General Reserve Fund.

The Corporation is empowered to administer the Housing Act, 1919 (see Section XXXVIII—Labour Laws and Allied Legislation), and a brief summary of operations under the Act is given further on in this section. By Order in Council, dated the 5th March, 1937, the Board of Management of the State Advances Corporation was constituted the Rural Intermediate Credit Board established under the Rural Intermediate Credit Act, 1927, superseding the Public Trust Office, which had administered the Board's business since the inception of the scheme in 1927. The change in control took effect as from 1st July, 1937.

The State Advances Corporation Act, 1936, provides, as has already been mentioned, for the granting of loans for the development or establishment of industries in the Dominion. Applications under this heading are investigated in the first instance by the Bureau of Industry, but must be approved by the Minister of Finance before being granted.

FINANCIAL.

Balance-sheet figures show that the authorized capital remained at £1,000,000, while stock and debentures outstanding at the 31st March, 1939, were valued at £44,521,490, an increase of £2,935,520 as compared with the position at 31st March, 1938. The contingent liability to the Crown now stands at £10,148,214, a reduction of £1,274,040, due mainly to orders for reduction of mortgages in terms of the Mortgagors and Lessees Rehabilitation Act. By the end of the year 1939-40 it is anticipated that the full effect of the adjustments under the Mortgagors and Lessees Rehabilitation Act will be ascertainable as regards the amounts to be written off in terms of the Act. The general reserve fund showed an increase of £132 635, making the total at the end of the year £3,717,438.

The capital outstanding in respect of current loans under all sections as at the 31st March, 1939, was £47,792,881. The average loans outstanding on the respective classes of securities were as follows:—

 £
Residential542
Rural1,208
Current account406

The total number of loans under administration at 31st March, 1939, was 69,833, in addition to the rental administration of the State housing scheme, briefly classified into—

 Total Number.Total Amount. £
Farm (including current account)22,52926,128,929
Residential45,27525,491,752
Local authority2,0296,144,973

The disposition and appropriation of profits in respect of operations during the year ended 31st March, 1939, are given in the following table:—

Amount.Percentage of Stock Issue plus Capital.Percentage of Gross Earnings.Percentage of Gross Profits.
 ££s.d.Per Cent.Per Cent.
Gross earnings2,393,177552100.00..
Less capital charges—Interest1,574,10539265.77..
Gross profits819,072116034.23100.00
Less—      
Management expenses and depreciation of fixed assets252,338011110.5430.81
Reserve for losses (ex State and Corporation)100,1570454.1912.23
Surplus for year 1938-39466,57710619.5056.96
Plus excess income-tax provision for 1937-381,234..........
Surplus due to Crown467,811..........

A steady improvement is noticeable in the amount of interest received by the Corporation, although comparability over the period of years quoted is disturbed by the taking-over of discharged soldiers settlement securities amounting to approximately £11,000,000 and by a reduction in the interest-rate charge during 1936-37 and 1937-38. The following table shows the interest due and received:—

Year.Net Interest due.Interest received.Shortage.Percentage of Receipts to Net Interest due.
* Eight months 1st August, 1935, to 31st March, 1936.
 £££Per Cent.
1933-341,966,1271,562,707403,42079.48
1934-351,913,6111,711,446202,16589.43
1935-36*1,200,8791,142,94757,93295.16
1936-371,733,0471,665,55967,48896.11
1937-382,404,3852,348,38556,00096.67
1938-392,167,0242,152,02415,00099.31

NEW BUSINESS.

A summary of loan operations (new business) is given in the following table:—

Loans Authorized.Year ended March, 1938.Year ended March, 1939.Total, 1st August, 1935, to 31st March, 1939.
Number.Value.Number.Value.Number.Value.
Residential— £ £ £
Refinance961577,190801505,9953,8062,344,217
Other purposes522319,074768443,9281,7561,139,122
Erection of dwellings997824,5542,1232,062,2754,6553,918,146
 2,4801,720,8183,6923,012,19810,2177,401,485
Farm—      
Refinance470977,120331616,8872,4305,554,872
Other purposes237306,608689631,3061,1821,329,006
 7071,283,7281,0201,248,1933,6126,883,878
Total granted3,1873,004,5464,7124,260,39113,82914,285,363

The lending-rate of the Corporation for loans on mortgage was maintained at 4⅛ per cent. during 1938-39. As has already been mentioned, loans are in general secured by table mortgages for varying periods. The following summary shows the annual cost — i.e., interest and principal payments—per £100 borrowed on table mortgage for the various periods:—

Term.Annual Amount payable.Term.Annual Amount payable.
 £s.d. £s.d.
10 years126230 years51610
15 years90235 years586
20 years771040 years526
25 years69045 years4182

The terms of lending for home-building were varied during the year 1937-38 to encourage the erection of further houses. New provisions were—

  • The previous restriction, limiting advances to persons earning less than £300 per annum (with an increased income limit in the case of those with large families) was removed.

  • The maximum loan was increased from £1,000 to £1,250 with special provision for an increase beyond that figure in cases of large families.

  • Provided the applicant could make a reasonable cash contribution towards the cost of a section and dwelling and the proposal was otherwise acceptable, no limit was placed on the percentage to be advanced.

  • Where little or no cash could be provided by the applicant, he should be considered for a tenancy of a State rental house if such would be available within a reasonable period.

  • Advances on special loan were to be subject to the Corporation being satisfied as to the character and creditworthiness of the applicant, and the suitability of the section and proposed house.

  • Ownership of an existing dwelling was to disqualify an applicant for a special loan.

  • Transfer of a property subject to a special loan must be subject to consent of the Corporation, and profit on sale would not be permitted.

  • Instalments were to be collected at convenient intervals, where possible as a deduction from wages.

Special plans prepared by leading architects are available in book form, and assistance in calling tenders and in the erection of the houses is available from the Corporation's expert officers.

DISCHARGED SOLDIERS SETTLEMENT MORTGAGES.

By Order in Council dated the 5th August, 1936, provision was made for the transfer of mortgages under the Discharged Soldiers Settlement Act to the State Advances Corporation. The transfer of securities under this heading was completed during 1937-38.

In consideration of the transfer of these assets, State Advances Corporation 3⅜-per-cent. stock was issued to the Crown. The difference between the book value of the securities transferred and the value of stock issued represents a contingent liability of the Corporation to the Crown.

ADJUSTMENT OF MORTGAGE LIABILITIES.

Opportunity was given to mortgagors, in respect of the mortgages transferred to the Corporation, for them to have their mortgage liabilities adjusted to the Corporation lending-rate of 4⅛, per cent., provided that they would agree to an addition of 2 per cent. of their liability being added, or paid for in cash if desired, by way of contribution to a General Reserve Fund.

Up to the 31st March, 1937, offers of adjustment were made to some 46,881 mortgagors, of which number the majority have now availed themselves of the opportunity provided. In a number of cases the existing rate of interest was round about 4½ per cent., so that with the addition of the amount (2 per cent.) towards the General Reserve there was very little, if anything, to be gained by an adjustment to the new rate of interest. In some other cases the unexpired term of the existing mortgage was too short to prompt mortgagors to accept the offer of adjustment. With the exception of a comparatively small number of accounts yet to be dealt with under the Mortgagors and Lessees Rehabilitation Act, the adjustment of accounts under this section has now been completed. It should be noted that the borrowers' rights under this provision lapse three years from the date of transfer of the respective mortgages to the Corporation.

In the case of discharged-soldiers-settlement mortgages, offers of adjustment were made to 1,642 mortgagors up to the 31st March. 1937, of which number the majority have availed themselves of the offer.

The Mortgagors and Lessees Rehabilitation Act of 1936 provides for a final adjustment of mortgages on both rural and urban land.

Applications for relief lodged by mortgagors of the Corporation numbered 10,343, and the figures submitted hereunder show clearly the work involved and the financial result arising from these applications. It was inevitable that considerable sums which were owing to the Corporation would be written off, and the result of the adjustments carried into effect by the 31st March, 1939, is shown hereunder:—

Applications withdrawn after negotiation2,643
Applications still to be adjusted749
Applications already adjusted6,951
Total number of applications affecting Corporation10,343
Total amount written off to 31st March, 1939£1,499,701
Adjustable debts due in terms of orders of Court£26,071

The following table, which relates to the position of advances to settlers and workers at June, 1935, is illuminating as a reflection of the financial stresses upon the community during the depression years. Out of 50,884 mortgagors, 20,736 (equal to nearly 41 per cent.), were in arrears. The original amount of advances in respect of those in arrears was £20,279,400, of which the balance of principal outstanding (i.e., original advances, less instalments repaid) was £17,932,589. The 30,148 mortgagors who were up to date in payments had an aggregate balance of principal outstanding of £18,498,801, out of original advances totalling £24,133,305.

Percentage of Principal repaid.Farm, 75 Per Cent. Limit.Farm, 66⅔ Per Cent. Limit.Residential, 75 Per Cent. Limit.Residential, 95 Per Cent. Limit.Rental Properties, 75 Per Cent. Limit.Rental Properties, 95 Per Cent. Limit.
Mortgagors up to Dale.
50 per cent. or over1,67996,12062151
25 per cent., but under 501,864214,9001,217143
10 per cent., but under 252,598851,5051,53969
Under 10 per cent.1,9181,1771,4983,8811413
Totals8,0591,29214,0236,6994926
Mortgagors in Arrears.
50 per cent. or over310..1,0848381
25 per cent., but under 5080461,96848623269
10 per cent., but under 251,461418151,192209416
Under 10 per cent.2,5901,1991,0754,2183632,151
Totals5,1651,2464,9425,9048422,637
Grand totals13,2242,53818,96512,6038912,663

REVERTED SECURITIES.

The number of urban and suburban properties administered by the Corporation as mortgagee-in-possession increased from 4,082 at 31st March, 1938, to 4,112 at 31st March, 1939. The aggregate book value of these securities was £3,421,471.

In the case of rural properties, an effort has been made to rehabilitate the reverted securities. A number of farm holdings that have reverted to the Corporation are in deteriorated areas where further expenditure would be uneconomic, and the value of these properties will therefore require to be substantially written down. The book value of reverted rural securities at 31st March, 1939, was £303,326.

RURAL INTERMEDIATE CREDIT.

The Rural Intermediate Credit Act, which was passed during the 1927 session of Parliament and came into force on the 1st January, 1928, provided for the setting-up of a special Rural Intermediate Credit Board and the making of advances as follows:—

  1. To members of co-operative rural intermediate credit associations, whose formation (with not less than twenty members and with certain defined objects) is provided for. The application for the loan is received and considered by the association concerned, which, on approving it, applies to the Board to advance the amount required to cover the loan. The term of the loan is not more than five years. An association may arrange with a bank or other approved financial institution for a loan in cases where the term is less than six months.

  2. To persons engaged in farming operations on their own account, or to trustees, executors, or administrators carrying on farming operations, the loan (for certain specified purposes and for a term of not more than five years) being advanced direct.

  3. To co-operative societies (with not less than thirty members and with a subscribed capital of at least £2,500) having for their principal objects the production or sale of staple agricultural or pastoral products. In this case the term of the loan is not less than six months nor more than three years.

The Finance Act, 1932-33 (No. 2), authorized the Board, or an association with the consent of the Board, to grant an extension of time or other concession in the case of an existing loan. Every loan granted after 10th March, 1933, by the Board or an association may be repayable upon demand or by instalments, and upon such other conditions as the Board thinks fit. The Board may also carry on the business of discounting farmers' promissory notes and bills of exchange.

The total amount of advance in force at any time to a member in class (a) was originally set down as not to exceed £1,000. This limit was extended to £2,000 by the Rural Intermediate Credit Amendment Act, 1929. In the case of co-operative associations, the amount advanced may be not more than 80 per cent. of the fair market value of the live-stock or produce upon which the loan is secured.

Pursuant to the provisions of Part VI of the State Advances Corporation Act, 1936, the former Rural Intermediate Credit Board went out of office on the 1st July, 1937, and was replaced by the Board of Management of the State Advances Corporation, the members of which now constitute the Rural Intermediate Credit Board.

Apart from several consequential machinery amendments, the Act also enlarged the scope of the original Act of 1927 by repealing the limitation of £2,000 in respect of direct loans to farmers and also the stipulation requiring a collateral instrument of guarantee in respect of every such loan.

The funds of the Board are obtained partly by way of advances from the Consolidated Fund and partly by the issue of debentures.

There are also throughout the Dominion sixteen District Rural Intermediate Credit Boards, to which has been delegated authority to approve applications referred to in classes (a) and (b) up to certain amounts and subject to certain stipulated conditions. Branch officers of the State Advances Corporation have succeeded the Public Trust officials who acted as District Supervisors for the Rural Intermediate Credit Board, and to facilitate this the branch organization of the Corporation was further extended.

The accounting year ends on the 30th June, and the figures here quoted are for the year 1938-39. These show a total of investments and accrued interest at 30th June, 1939, of £471,122. Included in this figure are advances to associations under Part II of the Act, £141,058; advances to farmers under Part III of the Act. £10,718: face value of bills and notes discounted. £338; temporary investments, £100,000: and Redemption Fund investments, £217,159. From the inception of the scheme on 1st January, 1928, up to 30th June, 1939, advances made and bills discounted totalled £1,399,711.

The interest fixed for advances other than to co-operative rural intermediate credit associations is now 5 per cent. per annum, this being also the discount rate. In the case of loans to co-operative rural intermediate credit associations the rate charged is 4½ per cent., so that associations may be in a position to make advances to their members at 5 per cent. The Board has imposed conditions as to the manner in which this margin of ½ per cent. is to be employed by the associations.

Advances totalling £400,000 have been received from the Consolidated Fund, and £262,900 was raised by debentures which have since been repaid, the only borrowed capital now held being that on loan from the Consolidated Fund. Of this, one-third is held in the Redemption Fund, which totalled £229,032 on 30th June, 1939. The other two items in the Redemption Fund at that date were £19,539 as one-half share of the Board's profits appropriated in accordance with the Act, and £76,160 as interest received on investments and interest accrued.

HOUSING.

The Housing Act of 1919, authorizing the acquisition of land and the erection of dwellings for disposal by way of sale or lease, was originally administered by the Labour Department, but the sections relating to administration were repealed by the State Advances Amendment Act of 1922, and the powers of the Housing Superintendent and of the Housing Board were thereupon transferred to the State Advances Superintendent and to the State Advances Board. No provision was made in the Act constituting the Mortgage Corporation of New Zealand for the transfer of the administration of the Housing Act, which therefore remained under the jurisdiction of the State Advances Superintendent.

Provision was made in section 16 of the State Advances Corporation Act, 1936, for the transference of the powers, functions, duties, and obligations of the State Advances Superintendent and of the State Advances Board to the State Advances Corporation and to the Board of Management respectively.

Under the provisions of the 1936 Act the Housing Account was constituted a separate account, funded from Government sources, and quite distinct from the lending operations of the Corporation. The Corporation is empowered, in connection with housing services, to make such charge against the Housing Account as may from time to time be approved by the Minister of Finance. The Housing Account was opened with the Reserve Bank of New Zealand on the 1st July, 1936, by the transfer of moneys held in the State Advances Account on that date in connection with the Housing Act, 1919.

Up to the 31st March, 1939, the total net payments in respect of the purchase of land, provision of services, erection of joinery-factories, erection of houses, and all administration charges amounted to £5,510,503.

Further information regarding the operations of the Housing Construction Branch may be found in Section XXIII, Building and Construction.

Chapter 25. SECTION XXV.—PENSIONS, SOCIAL SECURITY, SUPERANNUATION, ETC.

WITH the exception of war pensions under the War Pensions Act, 1915, and its amendments, and allowances under the War Veterans' Allowances Act, 1935, all State pensions formerly administered by the Pensions Department have been replaced as from 1st April, 1939, by a system of monetary benefits under the Social Security Act, 1938, and its amendment of 1939. Particulars of the various benefits established by the Social Security Act are given in a later stage of this section, and it is now proposed to give a brief history of the principal classes of pensions superseded by the Social Security Scheme.

OLD-AGE PENSIONS.

The history of State pensions in New Zealand commenced with the passing of the Old-age Pensions Act, 1898, which came into force on 1st November, 1899. It is understood that New Zealand was the first country to introduce non-contributory old-age pensions.

The age qualification was sixty-five years or upwards, and among other conditions were actual residence in the colony (as New Zealand then was) at the date the claim to a pension was established and continued residence therein for twenty-five years immediately preceding such date. No pension was payable where the yearly income exceeded £52 or where the net capital value of accumulated property exceeded £270. The full pension was £18 per annum, but for each £1 of income above £34, also for each £15 of accumulated property above £50 the pension was reduced by £1.

By an amendment passed in 1900 the property and income of a husband and wife were computed as belonging to them jointly, and their joint income (including the pension) was limited to £78 per annum. A further amendment passed in 1902 made provision for the conveyance to the Public Trustee of a pensioner's residence provided it did not exceed £300 in value. If this were done, the value of the residence was deducted from the net capital value of the pensioners's property in computing the pension, and the pensioner was permitted to reside rent free on the property during life, and if he or she died leaving wife or husband who was entitled to a pension, then during life of the survivor.

The next amendment affecting the value of an old-age pension was passed in 1905, when the basic rate was raised from £18 to £26 per annum. Further important provisions contained in this amendment were an increase from £52 to £60 in the amount of income required to disqualify an applicant and an increase from £78 to £90 in the amount of income required to disqualify a married couple. The scope of the original Act was also widened by two other provisions affecting property, one of which increased the deduction in connection with the net capital value from £50 to £150 in cases where any part of the accumulated property of an applicant consisted of property of any tenure on which he resided and which produced no income. The other provision was in the direction of a more equitable division of property as between husband and wife. Where, under the original Act, the full amount of a husband's property was applied to reduce his pension and half the value of his property was applied to reduce his wife's pension, under the new Act a husband's property was equally divided between himself and his wife whether the wife was an applicant or not. On the other hand, the deduction from the pension on account of accumulated property was increased from £1 for every £15 to £1 for every £10, and the net amount of accumulated property which disqualified an applicant was reduced from £270 to £260.

The next amendment of note (passed in 1911) reduced the qualifying age to fifty-five years for women and to sixty years for men where the applicant was the parent of two or more children under fourteen years of age for the maintenance of whom the applicant was responsible. The pension payable in such cases was a sum up to £13 in addition to the ordinary amount payable.

In 1913 the general age limit for women was reduced to sixty years, but the pension payable was reduced by £1 for every year by which the age of the applicant was less than sixty-five. This amendment did not affect those cases covered by the immediately preceding paragraph. Also, the income limit for a married applicant was raised to £100 per annum.

As from 1st July, 1917, an allowance of £13 per annum was granted to each pensioner owing to the increased cost of living brought about by the war, this allowance to remain in force for the duration of the war and twelve months thereafter. In 1920, however, the allowance was incorporated in the statutory pension, raising the basic rate to £39.

The Pensions Amendment Act, 1924, provided an additional £6 10s. per annum in cases where the pensioner was without property and had no income other than his pension; and a further amendment of 1925 extended this increase to all pensioners, raising the basic rate to £45 10s. per annum. At this stage the income and property restrictions were as follows:—

The full rate of pension was reducible by—

  1. £1 for every complete £1 of income over £52.

  2. £1 for every complete £10 of the net value of accumulated property in excess of £260.

The yearly income (inclusive of pension) of a single applicant was limited to £97 10s., and of a married couple to £143.

The National Expenditure Adjustment Act, 1932, imposed a reduction of 10 per cent. in the rate of the pension, reducing it to £40 19s., and corresponding alterations were made in the income and property qualifications. From 1st April, 1934, a partial restoration was made, the rate being raised to £43; and from 1st August, 1935, complete restoration to the previous rate of £45 10s was made.

By the Pensions Amendment Act, 1936, the maximum general rate was increased to £52 per annum as from 1st July, 1936, and to £58 10s. per annum as from 1st December, 1936. The income bar was raised to £110 10s. per annum in the case of a single applicant, and if married to £169 per annum (joint income of husband and wife, plus pension), while the property qualification was extended to £590. The residential qualification was reduced from twenty-five to twenty years, and Chinese and other Asiatics (if British subjects) became eligible for the first time.

From the inception of the scheme to 31st March, 1939, 154,891 old-age pensions had been granted. Of these, 71,615 had been discontinued on account of the death of the pensioner and 16,582 for other reasons. The number of pensions in force on 31st March, 1899, was 7,487, representing a yearly payment of £128,082, while the number in force on 31st March, 1939, was 66,694, with an annual value of £3,733,238.

WIDOWS' PENSIONS.

Pensions for widows were first provided by the Widows' Pensions Act, 1911, which came into force on 1st January, 1912. Six months' residence in New Zealand prior to the birth of any child to whom the Act applied was a necessary qualification, and only legitimate children under fourteen years of age born in New Zealand were eligible for consideration. The following scale of payments was provided for:—

To a widow with one child£12 per annum.
To a widow with two children£18 per annum.
To a widow with three children£24 per annum.
To a widow with more than three children£30 per annum.

The foregoing rates of pension were subject to a deduction of £1 for each £1 of income in excess of £30 per annum. Such annual income, however, did not include personal earnings of the applicant which did not exceed £100. Property which produced no income or an income of less than 5 per cent. of its value was deemed to produce an income of at least 5 per cent. of such value, and such amount was included in the computation of the annual income. Property did not include furniture or personal effects or property used as a home up to £340 in value.

In 1912 the definition of a “widow” was extended to include any woman whose husband was detained in a mental institution, while in 1913 the term “child” was extended to include a stepchild or a child legally adopted during the lifetime of the husband of the applicant.

Prior to 1914 the maximum number of children in respect of which a pension was payable was four, but an amending Act passed in that year removed that limit by making the rate of pension £12 per annum for a widow with one child, with £6 added for each additional child under fourteen years of age, irrespective of the number.

As from 1st July, 1917, an allowance of £6 per annum for each child was added to the pension. As in the case of old-age pensions, this allowance was intended to remain in force until twelve months after the termination of the war with Germany. In 1919, however, the maximum rate of pension was increased to £39 per annum for a widow with one child, plus £19 10s. per annum for each additional child, with the proviso that the aggregate receipts of a widow and her children from all sources must not exceed £65 per annum, together with £26 per annum in respect of each child.

In 1924 the rates of the pension were again increased, the amount payable to a widow with one child having been made £52 per annum, with £26 per annum added for each additional child, the maximum pension payable being £208 per annum. The amount of property (furniture, home, &c.) that could be owned without affecting the rate of pension was raised from £370 to £520.

In 1925 the qualifying age for a child was raised to fifteen years.

As in the case of old-age pensions, the National Expenditure Adjustment. Act imposed a reduction of 10 per cent. in the rates of widows' pensions. These reduced rates remained in force until 1st August, 1935, when they were restored to the amounts ruling prior to the imposition of the “cut.”

The maximum rates of widows' pensions were raised as from 1st July, 1936, to £78 per annum for a widow with one child, with an additional £26 per annum for each additional child, the maximum gross pension being fixed at £234 per annum. The amount of the pension was diminished by £1 for every complete £1 by which the total income of the applicant and her children in respect of whom the pension was payable exceeded £78 per annum.

From 1st January, 1912, the date on which widows' pensions came into operation, to 31st March, 1939, 20,264 pensions were granted, the number in force at the latter date being 5,196, as compared with 791 at 31st March, 1912.

MAORI WAR PENSIONS.

The Military Pensions Act, 1912, was enacted to provide a pension of £36 per annum to veterans of the Maori wars who were awarded a medal for active service in such wars. A minimum period of ten years' continuous residence in New Zealand immediately preceding the date of the application was necessary. The amount of the pension was diminished by £1 for every complete £1 of income in excess of £34, and also by £1 for every complete £10 of the value of any property used by the applicant as a home (including furniture and personal effects) in excess of £340, and by £1 for every complete £10 of the value of any other property in excess of £50. In the case of a married man, the value of his property was deemed to be half the total value of the property of husband and wife, while the amount of the pension in no case was to exceed such sum as, with the total actual incomes of husband and wife, would amount to £100 per annum. These income and property restrictions, however, did not long remain in force, being abolished by the Pensions Act, 1913.

In 1917 an allowance at the rate of £13 per annum was made to each pensioner for the period of the war and twelve months thereafter; but in 1920 this allowance was incorporated in the statutory pension, making the rate £49 per annum.

This class of pension was not affected by the National Expenditure Adjustment Act, 1932, and the next alteration in the rate was an increase to £52 per annum as from 1st July, 1936, with a further increase to £58 10s. per annum as from 1st December, 1936.

In 1913, 706 claims to Maori War pensions had been established, while the maximum number (1,385, including 283 Maoris) was reached in 1915. By 31st March, 1939, the number of recipients had dwindled to twenty.

MINERS PENSIONS.

The Miners' Phthisis Act, 1915, introduced pensions for miners who were totally incapacitated for work owing to miner's phthisis (pneumoconiosis) contracted while working as a miner in New Zealand. Continuous residence in New Zealand for a period of not less than five years was a condition precedent to the granting of a pension, as was also a period of at least two and a half years' employment as a miner in New Zealand. The rate of the pension was £52 per annum for a married man or widower with children under fourteen years of age and £39 per annum for an unmarried man. If any miner entitled to a pension died of miner's phthisis leaving a widow, such widow was entitled to a pension for two years at the rate of £32 10s. per annum. This was subsequently raised to £45 10s. per annum. The Act also made provision for the payment of actual and reasonable funeral expenses up to £20 in the case of the death of a pensioner.

In common with other classes of pensions, an allowance was introduced in 1917, the rate in the case of miner's pensions being £13 per annum. In 1919 the allowance was discontinued, but the basic rate for a married man was raised to £78 per annum and the rate for an unmarried man was fixed at £52 per annum. In the same year, the period of two years for which a miner's widow could receive a pension was extended to the full period of widowhood.

In 1920 the rates of these pensions were raised to £91 for a married man or widower with children under fourteen years of age, and to £65 for a single man or widower without children.

The next revision of rates of miners' pensions took place in 1929, when the number of dependent children became a factor in the fixation of the amount payable. A married pensioner with dependent children received £65 per annum, increased by £26 in respect of his wife and by £26 for each child under fifteen years of age, while a widower received £65 per annum plus £26 in respect of each dependent child under fifteen years of age. These increases were accompanied by an income restriction, the first to be applied in the case of miners' pensions. The amount of the pension payable to a miner in respect of a dependent child or children was diminished by £1 for every £1 of income from other sources in excess of £104 per annum, and the maximum pension payable was £221. In the same year the term “miner's phthisis” was extended to include tuberculosis of the lungs and any other disease of the respiratory organs commonly associated with or a sequel to pneumoconiosis. In 1936 the qualification was further extended to include any “other occupational disease or heart-disease.”

The National Expenditure Adjustment Act, 1932, reduced the rates of miners' pensions by 10 per cent., and the reduced rates remained in force until 1st August, 1935, from which date complete restoration was made. As from April, 1932, the term for which the widow of a miner was entitled to receive a pension was reduced from the period of widowhood to two years, but it was again extended to the full period of widowhood in 1936. The Pensions Amendment Act of 1932, as amended by the Finance Act (No. 2), 1935, provided that every widow in receipt of a pension as a miner's widow should on termination of that pension be entitled to a maximum pension of £40 10s. during widowhood or until entitled to an old-age pension.

The number of pensions granted since the commencement of the scheme to 31st March, 1939, was 2,837, of which 1,062 remained in force on the latter date.

EPIDEMIC PENSIONS.

To relieve distress arising out of the influenza epidemic of 1918, a system of pensions payable to widows with dependent children was introduced. At the commencement these were administered by the Health Department and paid through local Hospital Boards, but as from 1st April, 1920, they were taken over by the Pensions Department. The total number of such pensions granted was 972. The numbers gradually decreased as the pensionable children reached the disqualifying age, the last payments being made in the year 1937-38.

INVALIDITY PENSIONS.

Part II of the Pensions Amendment Act, 1936, provided for the payment of an invalidity pension to every person who is totally blind or permanently incapacitated for work as the result of an accident or by reason of illness or of any congenital defect. The residential and other qualifications are on the same lines as those described in connection with invalids' benefits under the social-security scheme, particulars of which will be found on pp. 630-631. The rate of the pension, subject to certain income and property restrictions, was £52 per annum, increased by £26 per annum in respect of the applicant's wife if dependent on him and by £26 per annum in respect of each dependent child under the age of sixteen years, with a maximum of £208 per annum.

Prior to the passing of this legislation, invalidity pensions were payable in respect of blindness only. This form of pension was introduced by the Pensions Amendment Act, 1924, and provided for the payment of a maximum pension of £45 10s. per annum to blind people over the age of twenty years. Certain income and property restrictions were applied, but an additional pension equal to 25 per cent. of earnings was granted, with a proviso that the total income and pension was not to exceed £3 12s. 6d. per week. The Pensions Amendment Act, 1936, provided that personal earnings up to £2 15s. per week were not to be taken into account in computing the annual income of a blind person. In 1925 the number of blind persons in receipt of a pension was 114, and in 1936, prior to the extension to other classes of invalidity, the number was 507. At 31st March, 1937, some 7,491 invalidity pensions were in force, and this number had increased to 12,489 by 31st March, 1939.

FAMILY ALLOWANCES.

The Family Allowances Act was passed in the session of 1926 to provide for the granting of allowances towards the maintenance of children by parents of limited income. The Act came into force on 1st April, 1927.

The allowance was at the rate of 2s. per week for each child in excess of two, the average weekly income of the applicant and his wife and children, including allowance, not to exceed £4—the maximum from April, 1932, to June, 1936, was £3 5s.—plus 2s. for each child in excess of two. The number of these allowances granted to 31st March, 1939, was 23,505.

SUMMARY OF PENSIONS.

A summary showing the total amount of pensions administered by the Pensions Department during the last two financial years is as follows:—

Class of Pension.Annual Value.Gross Payments.
As at 31st Mar., 1938.As at 31st Mar., 1939.1937-38.1938-39.
* Excludes payments under section 45 of Pensions Act, 1928. These are included in old-age pensions
 ££££
War1,579,7211,624,5441,597,5241,616,248
Old-age3,373,3313,733,2383,235,0573,577,129
Widows'476,907496,831471,287487,216
Maori War1,5801,1701,8061,338
Miners'86,53785,93888,16787,094
Epidemic....14..
Invalidity674,934794,636632,829750,748
Boer War*1,9391,9171,9911,905
Civil Service Act3,5003,1833,6323,256
Sundry pensions and annuities12,64211,77212,55412,390
Family allowances94,16879,739106,40284,436
War veterans' allowances159,279159,031161,267158,584
    Totals6,464,5416,991,9996,312,5306,780,344

Total payments in 1938-39 represented £4 8s. 3d. per head of mean population exclusive of Maoris, as compared with £4 3s. 2d. in 1937-38.

As an illustration of the growth of the pension responsibilities of the State, figures are appended covering total and per caput payments at five-yearly intervals up to 1935, and at yearly intervals thereafter, on account of civil pensions and family allowances. Civil pensions comprise old-age, widows', miners', invalidity, epidemic, and Maori war pensions. Only old-age pensions wore in force over the whole period.

 Payments during Year.
Year ended 31st March,Total.Per Head of Population.*
££s.d.
* Excluding Maoris.
1900157,343042
1905195,475047
1910362,496075
1915540,0490910
1920931,5200161
19251,132,6020174
19301,577,641124
19352,054,8291710
19362,273,8171107
19373,326,351246
19384,535,562302
19394,987,961356

The aggregate amount paid to the 31st March, 1938, in respect of civil pensions and family allowances was £45, 750,807.

War and other pensions paid by the Pensions Department in 1938-39 on behalf of other Governments amounted to £187,582 in actual payments for the year.

SOCIAL SECURITY.

Very important changes in the law relating to pensions, superannuation, and health services were introduced by the Social Security Act, 1938, which came into force on 1st April, 1939. The Act has two main objects:—

  1. To substitute for the previous system of non-contributory civil pensions— e.g., old-age, widows', and other pensions—a system of monetary benefits on a contributory basis:

  2. The inauguration of a system of medical and hospital benefits and of other related benefits.

ADMINISTRATION.

The Act established a Department of State entitled the Social Security Department, under the control of a Commission consisting of not more than three members. Up to the present time only two have been appointed. The Department, which is divided into two main divisions, administers under the direction of the Minister of Social Security that part of the Act dealing with monetary benefits referred to under No. (1) above, while the part of the Act dealing with medical and hospital and other related benefits is administered by the Health Department under the direction of the Minister of Health.

The New Social Security Department replaced the old Pensions Department and absorbed the major portion of the Employment Division of the Department of Labour. The Act stales that the Department may be divided into two or more divisions, and, as stated above, two have been created each under the control of a Director, one dealing with unemployment and sickness benefits, and the other with all other monetary benefits. The War Pensions Act, 1915, with its amendments is also administered by the Social Security Department, one of whose directors is also designated Secretary for War Pensions. It should be noted, however, that, unlike the benefits under the Social Security Act, which are paid from the Social Security Fund (referred to later), war pensions are paid through the Consolidated Fund from general taxation.

FINANCIAL PROVISIONS.

The Act abolished (from 30th September, 1939) the Employment Promotion Fund, and makes provision for the establishment of a Social Security Fund, out of which will be paid the cost of providing benefits and the cost of administration. Employment-promotion taxation is superseded (from 1st April, 1939) by the collection of a Social Security contribution consisting of (a) a registration fee, and (b) a charge on salaries, wages, and other income. Subject to such exemptions as may be made by Order in Council, every person of sixteen years of age or over is required to be registered, to pay the registration fee, and to pay the charge on salaries, wages, and other income.

Apart from their extended scope, the provisions of this part of the Act are generally on the lines of corresponding provisions in the Employment Promotion Act, 1936 (which is repealed). Material alterations are (1) an increase in the rate of the charge on salaries, wages, and other income from 1d. in every 2s. 6d. or part thereof to 1d. in every 1s. 8d. or part thereof; (2) the extension of the registration and contribution requirements to cover persons of either sex of sixteen years of age or over; and (3) an extension of the charge on other income to include the income of companies.

The rates of the Social Security Contribution as set out by the Act are as follows:—

  1. With respect to the registration fee, the rate is 5s. a quarter in respect of all men over twenty years of age, and in all other cases the rate is 5s. a year:

  2. With respect to the charge on salaries and wages earned before 1st April, 1939, but paid on or after that date, the rate is 1d. for every 2s. 6d. or part thereof included in the amount of such salary or wages:

  3. Except as provided in the preceding paragraph, the rate of the charge on salaries, wages, and other income is 1d. for every sum of 1s. 8d. or part thereof included in every amount in respect of which the charge is payable.

The Act provides that the assessment, collection, and recovery of the Social Security Contribution shall be administered as if the Social Security Contribution were income-tax, and that the Commissioner and Deputy-Commissioner of Taxes and all other officers appointed for the purposes of the Land and Income Tax Act, 1926, shall have in respect of the Social Security Contribution the same powers as they have in respect of income-tax, and all provisions of that Act shall apply with respect to the Social Security Contribution in the same manner in all respects as they apply with respect to income-tax.

For the purpose of providing for the requirements of the Social Security Fund before any moneys had been appropriated therefor by Parliament, the Act empowered the Minister of Finance at any time up to 30th September, 1939, to transfer to the Social Security Fund out of the Consolidated Fund such amounts as might in his opinion be necessary.

All moneys in the Employment Promotion Fund on the date of its abolition (30th September, 1939) were transferred to the Social Security Fund.

Section 7 of the Finance Act, 1939, authorized the Minister of Finance to transfer from the Consolidated Fund to the credit of the Social Security Fund the sum of £809,000, being the amount of the excess of revenue over expenditure in the Consolidated Fund for the Financial year 1938-39.

The following table shows for each of the seven months ended October, 1939, the income of the Social Security Fund from registration fees and from the charge on salaries and wages and other income:—

Month.Registration Fees.Charge onPenalties and Miscellaneous.Totals.
Salaries and Wages.Company Income.Other Income.
 ££££££
April130,241324,5441,69758,0283,419517,929
May138,244476,460104,769880,4586,4931,606,424
June22,187471,13070,718269,8294,437838,301
July7,002432,81142,784166,7604,146653,503
August85,784486,22785,974290,1482,634950,767
September22,107500,89550,916106,1044,775684,797
October6,869424,17014,52650,543371496,479

MONETARY BENEFITS.

A brief description of the main provisions relating to the various monetary benefits under Part II of the Act is now given:—

Superannuation Benefits.—Every person over the age of sixty-five years who satisfies the prescribed residential qualifications is entitled, from 1st April, 1940, to a superannuation benefit without conditions as to income or property. The residential qualifications are contained in section 12 of the Act, which reads as follows:—

12. (1) No person shall be entitled to a superannuation benefit under this Part of this Act unless he satisfies the following conditions, namely:—

  1. In the case of a person who was resident in New Zealand on the fifteenth day of March, nineteen hundred and thirty-eight (being the date of the passing of the Pensions Amendment Act, 1937), that he has resided continuously in New Zealand for not less than ten years immediately preceding the date of his application for a superannuation benefit:

  2. In any case to which the last preceding paragraph docs not apply, that he has resided continuously in New Zealand for not less than twenty years immediately preceding the date of his application for a superannuation benefit.

(2) For the purposes of the last preceding subsection, continuous residence in New Zealand shall not be deemed to have been interrupted by absence therefrom—

  1. In any case to which paragraph (a) of the last preceding subsection applies—

    1. If the total period of absence from New Zealand does not exceed one year; or

    2. If the total period of absence from New Zealand exceeds one year but does not exceed that period by more than six months for every year of residence in New Zealand in excess of a period of ten years, and the applicant has been actually resident in New Zealand for the twelve months immediately preceding the date of his application:

  2. In any case to which paragraph (b) of the last preceding subsection applies,—

    1. If the total period of absence from New Zealand does not exceed two years; or

    2. If the total period of absence from New Zealand exceeds two years but does not exceed that period by more than six months for every year of residence in New Zealand in excess of a period of twenty years, and the applicant has been actually resident in New Zealand for the twelve months immediately preceding the date of his application.

Provision is also made to cover the cases of absence by a seaman serving on board any ship registered or owned in New Zealand and for absence in any capacity as a member of any of His Majesty's Forces.

The rate of the benefit is £10 per annum commencing on 1st April, 1940, and continuing at that rate for one year, thereafter being increased by £2 10s. per annum until the maximum benefit of £78 per annum is reached. Thus, as from 1st April, 1941, the rate of superannuation benefit will be £12 10s. per annum, from 1st April, 1942, £15 per annum, and so on until the maximum is reached in 1968.

A superannuation benefit is not payable in addition to any other benefit. For example, a superannuation benefit and an invalid's benefit cannot be paid to the one person. Similarly, a superannuation benefit and an age-benefit are not payable to the one person. If a beneficiary in receipt of a superannuation benefit is later granted an age-benefit, the maximum benefit payable is £78, the amount of the superannuation benefit being merged in the amount of the age-benefit granted.

Age-benefits.—Every person who has attained the age of sixty years is entitled to receive an age-benefit, subject to satisfying certain qualifications in regard to residence and character. The residential qualifications are exactly the same as those set out under the preceding heading in regard to superannuation benefits, while the character qualifications mainly relate to desertion of wife or husband or wilful failure in the case of a married man or widower to provide adequate maintenance for wife or children under sixteen years of age.

The basic rate of the benefit is £78 per annum, subject to any increase that may be granted on account of dependants or subject to certain deductions on account of income or accumulated property, &c. Particulars are as follows:—

  • Unmarried Applicants: The basic rate is reduced by £1 for every complete £1 of income in excess of £52.

  • Married Applicants: Where husband and wife are both entitled to the benefit, the basic rate is reduced by 10s. for every complete £1 of their total income in excess of £52 per annum. In cases where only one of them is entitled to the benefit, the reduction is at the rate of £1 for every complete £1 of their total income in excess of £130 per annum. In either instance the maximum income inclusive of age-benefit is limited to £208 per annum. A further provision allows of the payment of an extra £13 per annum to a male recipient when his wife is ineligible for any benefit under the Act. This is payable only up to a limit of the total income of the couple plus benefit of £156 per annum. In addition, an allowance not exceeding £13 per annum may be made in respect of dependent children, under sixteen years of age, of parents entitled to the age-benefit.

In addition to the foregoing, a special allowance not exceeding £13 per annum may be paid to any person in receipt of an age-benefit who served as a member of a New Zealand contingent in connection with the South African War.

In addition to the deductions on account of income set out above, the rate of the benefit is reduced by £1 for every £10 of net capital value of accumulated property in excess of £500. The net accumulated property of a husband or wife for this purpose is half of the total net accumulated property of both.

In computing the net capital value of property no account shall be taken of the following, but any income derived therefrom is charged as income:—

  1. Any interest in land or house property, or mortgage or other encumbrance over such property:

  2. Any interest in any annuity or in any policy of life-assurance:

  3. Any furniture used in the home of the applicant or any personal effects belonging to the applicant.

Income from a property and the value of the same property are not both charged to reduce the age-benefit—e.g., if shares worth £600 produce an income of £30 per annum, either the value of the shares or the income therefrom may be charged, whichever method provides for the greater reduction.

Widow’ Benefits.—Every widow who is the mother of one or more children under sixteen years of age is entitled to a benefit in respect of widowhood. In addition, any widow not being the mother of children under sixteen years of age who satisfies the following conditions is also entitled to the benefit:—

  1. A widow who has had one or more children, provided that the duration of her marriage was not less than fifteen years or, in the alternative, that the aggregate of the period of the duration of her marriage and any subsequent period during which she had the care of at least one of her children under sixteen years of age was not less than fifteen years:

  2. A widow who, on the expiration of not less than five years after the date of her marriage, became a widow after she attained the age of fifty years:

  3. A widow of not less than fifty years of age who became a widow after she had attained the age of forty years, provided that the duration of her marriage was not less than ten years and that not less than fifteen years have expired since the date of her marriage.

It will be noted that no widow under fifty years of age who has not had one or more children can qualify for the benefit.

Provision is also made for other classes of women (not being widows) to receive benefits as if they were widows. Particulars are as follows:—

  1. Any married woman (being the mother of one or more children under sixteen years of age) who has been deserted by her husband and satisfies the Commission—

    1. That she has taken proceedings against her husband for a maintenance order under Part III of the Destitute Persons Act, 1910. and either that she has failed to obtain a maintenance order or that the order, if made, has not been complied with; and

    2. That the whereabouts of her husband is not known.

  2. Any married woman (being the mother of one or more children under sixteen years of age) in respect of whose husband a reception order is in force under the Mental Defectives Act, 1911 (whether or not he is detained in an institution under the Act), or whose husband is for the time being detained as a voluntary boarder under Part V of that Act.

Except in the case of widows with one or more children under sixteen years of age, no widow will be entitled to receive the widows' benefit unless she and her husband were both resident in New Zealand for not less than three years immediately preceding the death of the husband.

The term “children” does not include any child born out of New Zealand unless at least one of the following conditions is satisfied—namely, that—

  • The mother of the child was only temporarily out of New Zealand at the time of its birth; or

  • Both parents were resident in New Zealand for the three years immediately preceding the date of the father's death (in cases where the husband of the applicant is dead); or

  • Both parents were resident in New Zealand for the three years immediately preceding the desertion of the applicant by her husband or for the three years immediately preceding the making of a reception order in respect of the husband or before his admission to an institution as a voluntary boarder.

The term “child” includes a step-child or a child adopted during the lifetime of the husband of the applicant (in cases where the husband is dead) or adopted while the husband and wife were living together (in cases of desertion, &c). It may also (at the discretion of the Commission) include any child who is being maintained by the applicant or was at any time maintained by the husband of the applicant.

The basic rate of the widows' benefit in cases where there are no children under sixteen years of age is £52 per annum, reduced by £1 for every complete £1 of income in excess of £52.

Where the applicant has a child or children under sixteen years of age the basic rate is £65 per annum plus £26 per annum for each such child, with a maximum benefit of £234 per annum. A reduction is made at the rate of £1 for every complete £1 of total income of the applicant and her children in excess of £78 per annum.

Property is not taken into account in assessing any class of widows' benefit.

Orphans' Benefits.—A benefit in respect of complete orphanhood is payable in the case of a child under sixteen years of age who was born in New Zealand or whose last surviving parent was resident in New Zealand for a period of not less than three years preceding the date of his or her death. A step-child or an adopted child comes within the definition of the term, and payment may be made to any person for the time being having the care and control of the child. No payment is made on account of any orphan maintained in a State institution, but payment may be made to the governing bodies of homes and orphanages of religious or other organizations.

The amount payable as orphans' benefits is limited to a maximum of £39 per annum less any income received by or for the benefit of the orphan, but a lesser amount may be granted if it is considered that the circumstances of the case warrant it.

Family Benefits.—A family benefit is payable at the rate of 4s. per week for each child in excess of two, in all cases where the average weekly income of the applicant and his family (including the value of any benefits received) does not exceed £5 increased by 4s. for each child in excess of two. For the purposes of the Act the term “child” in general means a child under the age of sixteen, but the benefit may be granted or continued in respect of any child who has attained the age of sixteen if by reason of any physical or mental defect such child is totally incapacitated from earning a living. The term also includes step-children and children adopted prior to any original application for the benefit, and may also include children who, though not actually members of the family, are being maintained as such.

The application for the family benefit may be made either by the father or by the mother, but in general payment is made to the mother unless there are special circumstances that render it advisable to pay the benefit to the father or other suitable person.

Invalids' Benefits.—Subject to certain residential and other qualifications, every person of the age of sixteen years and upwards who is not qualified to receive an age-benefit shall be entitled to an invalid's benefit if he—

  1. Is totally blind; or

  2. Is permanently incapacitated for work as the result of an accident or by reason of illness or of any congenital defect.

The other qualifications referred to are as follows:—

  1. That he has resided continuously in New Zealand for a period of not less than ten years immediately preceding the date of his application. Continuity of residence is not deemed to be interrupted where the total period of absence does not exceed twelve months, or does not exceed twelve months by more than one month for every year of residence in New Zealand in excess of ten years if the applicant has been actually resident in New Zealand for the twelve months immediately preceding the date of his application. In the case of a totally blind person absence for the purpose of vocational training or for treatment in respect of the eyes, or in other cases any period of absence for the purpose of obtaining any special surgical treatment if the Commission is satisfied that there were good and sufficient reasons for leaving New Zealand to obtain such special treatment, is also not deemed to interrupt continuous residence.

  2. In the case of an applicant in respect of blindness, that he was born in New Zealand or became blind while permanently resident in New Zealand. In the case of every other applicant, that ho was born in New Zealand with the condition to which his incapacity for work is attributable, or that he became incapacitated for work by reason of an accident happening in New Zealand or by reason of illness contracted in New Zealand. These restrictions do not apply to any applicant who was actually resident in New Zealand on the 4th day of September, 1936 (the date of the passing of the Pensions Amendment Act, 1936, which first made provision for invalidity pensions other than for blindness), or to any person becoming resident in New Zealand after that date who has resided continuously in New Zealand for not less than twenty years immediately preceding the date of his application for a benefit.

  3. That incapacity for work was not self-induced or in any way brought about with a view to qualifying for an invalidity benefit.

  4. Applicant must be of good moral character and sober habits.

Provision is made for a medical examination, when necessary, to determine the extent of incapacity. In the event of an application being declined on medical grounds, the applicant has the right of appeal, within three months after the decision of the Commission has been communicated to him, to a Board of three medical practitioners nominated by the Department. An invalid's benefit may be paid in respect of a period of absence from the Dominion not exceeding two years in the aggregate if the Commission is satisfied that such absence was for the purpose of obtaining any special medical or surgical treatment.

The prescribed rates for invalids' benefits are as follows:—

  • Married man or a man who has been married, with a dependent child or children under sixteen years of ago: £78 per annum, increased by £26 per annum for his wife (if any) and £26 per annum for each dependent child, with an allowable income of £78 per annum. The maximum amount of benefit that can be paid is £204 per annum:

  • Single person under twenty-one years of age: £52 per annum, with an allowable income of £52 per annum:

  • Married woman: £78 per annum, with an allowable income of £104 per annum:

  • All other persons: £78 per annum, with allowable income of £52 per annum.

In each case the amount of the benefit is reduced by £1 for every complete £1 of income in excess of the amounts stated as allowable. Deductions on account of property are the same as for age-benefits, which are described under a previous heading.

In computing the income for any blind person no account is taken of personal earnings up to £143 per annum, so that the allowable income in cases of blindness is £195 per annum. In addition, personal earnings of such persons are subsidized to the extent of 25 per cent. so long as the total income, including any benefit, received does not exceed £221 per annum.

The term “child” includes a step-child or a child legally adopted prior to the date of any application for a benefit, and may, at the discretion of the Commission, include any child who is in fact maintained by the applicant.

Miners' Benefits.—Subject to the qualifications set out hereunder, a miner's benefit is payable to any person who, while engaged as a miner in New Zealand, contracted miner's phthisis and is thereby permanently and seriously incapacitated for work, or to any person who contracted, while engaged as a miner in New Zealand, any other occupational or heart-disease and is thereby permanently and totally incapacitated for work. The term “miner's phthisis” includes tuberculosis of the lungs or any other disease of the respiratory organs commonly associated with, or a sequel to, miner's phthisis.

The necessary qualifications are—

  1. Employment as a miner in New Zealand for not less than two and a half years:

  2. Continuous residence in New Zealand for not less than five years immediately preceding the date of his application for a benefit. Continuity of residence is not deemed to have been interrupted by occasional absences aggregating not more than six months:

  3. Good moral character and sober habits.

The basic rate of the benefit is £78 per annum, increased by £26 per annum for a wife and by £26 per annum for each dependent child under sixteen years of age, with a maximum benefit of £234 per annum. The amount of benefit payable in respect of any child or children is reduced by £1 for every complete £1 of the income of the applicant in excess of £104. The income in this case includes any income received by the wife or children in receipt of the benefit, but the reduction referred to applies only to the children's portion of the benefit, the amount payable to the miner and his wife being payable regardless of their circumstances.

A special provision is made for the payment from the Social Security Fund of reasonable funeral expenses of any person who dies while in receipt of a miner's benefit. The amount to be paid is at the discretion of the Commission.

If a person in receipt of a miner's benefit dies leaving a widow, such widow is entitled to a benefit of £45 10s. per annum during widowhood. This benefit is payable regardless of the circumstances of the widow, her income or property not being considered in the granting of a benefit.

Maori War Benefits.—Conditions which an applicant must fulfil to qualify for a Maori War benefit are as follows —

  1. Continuous residence in New Zealand for not less than ten years immediately preceding the date of his application: Provided that the continuity of his residence shall not be deemed to have been broken by any period of absence during which his home or family was in New Zealand;

  2. That during the five years immediately preceding his application he has not deserted or wilfully neglected to maintain his wife or children;

  3. That the applicant is of good moral character and sober habits.

Persons entitled to apply are those who served in any of the Maori wars and were awarded a medal for active service in any such war.

The rate of a Maori War benefit is £78 per annum.

The benefit is payable regardless of the circumstances of the applicant, income or property, not being taken into consideration.

Sickness Benefits.—Every person over the age of sixteen years who has resided continuously in New Zealand for not less than twelve months and who satisfies the Commission that he is temporarily incapacitated for work through sickness or accident, and that by reason thereof he has suffered a loss of salary, wages, or other earnings, is entitled to a sickness benefit. The amount of the benefit is limited to the amount by which the weekly earnings of the applicant have been reduced by reason of his incapacity. Every application for a benefit must be supported by a medical certificate, and no benefit is payable for the first seven days of incapacity except under special circumstances.

The rates of sickness benefits are computed as follows—

  1. Applicants under twenty years of age: 10s. per week:

  2. In every other case: £1 per week for the applicant, increased by 15s. per week in respect of a wife and by 5s. per week in respect of each dependent child under sixteen years of age. The maximum amount payable is £4 per week.

The Commission may reduce the rate of the benefit, having regard to the income received or to the property owned by the applicant. A person in receipt of a sick-benefit from a friendly society or a like benefit from any other source may receive, in addition, a sickness benefit from the Social Security Fund. The scale of permissable income in such cases is increased by £1 per week, but in no case may the total income from all sources exceed £5 per week.

Unemployment Benefits.—Subject to the conditions set out below, every person over the age of sixteen years who is not qualified to receive an age-benefit is entitled to a benefit in respect of unemployment. An applicant is required to satisfy the Commission in respect of the following:—

  1. That he is unemployed:

  2. That he is capable of undertaking and is willing to undertake suitable work:

  3. That he has taken reasonable steps to obtain suitable employment:

  4. That he has resided continuously in New Zealand for not less than twelve months.

An unemployment benefit is not payable in respect of the first seven days of any period of unemployment, except in special circumstances. In addition, the Commission may postpone, for a period not exceeding six weeks, the commencement of the benefit, or it may terminate the benefit in any of the following circumstances:—

  1. If the applicant has voluntarily become unemployed without good and sufficient reason:

  2. If the applicant has lost his employment by reason of any misconduct as a worker:

  3. If the applicant or beneficiary has refused or failed, without a good and sufficient reason, to accept any offer of suitable employment:

  4. In the case of a seasonal worker, if his earnings for the season are sufficient for the maintenance of himself and his family notwithstanding a period of temporary unemployment.

The rates of the unemployment benefit are 10s. a week for persons under twenty-one years of age and £1 a week for others, increased by 15s. a week for a wife and 5s. a week for each dependent child, but not exceeding in any case £4 a week. A married woman is entitled to receive the benefit only if her husband is unable to maintain her. If a beneficiary is not receiving a benefit in respect of a wife, an allowance may be made in respect of any person who has the care of his home. As in the case of other benefits, the term “child” includes a step-child or a child legally adopted prior to the date of application for the benefit, and may include any child who is in fact maintained by the applicant.

The foregoing rates of benefits may be reduced, having regard to the income received or the property owned by the applicant and his wife and dependent children.

Emergency Benefits.—An emergency benefit may be granted by the Commission to any person who by reason of age, physical disability, domestic circumstances, or any other reason is unable to earn a sufficient livelihood for himself and those dependent on him and is ineligible for any other monetary benefit.

The amount of the emergency benefit is at the discretion of the Commission, which fixes as nearly as possible an amount equal to that payable for the type of benefit for which the applicant most closely qualifies.

MEDICAL, HOSPITAL, AND OTHER RELATED BENEFITS.

The part of the Act dealing with medical and like benefits is of general application to all persons ordinarily resident in New Zealand, and makes provision for medical, pharmaceutical, hospital, maternity, and other related benefits. The Ant provides that the various benefits shall be available on and after 1st April, 1939, or if for any reason arrangements for the effective administration of benefits of any of the prescribed classes cannot be completed before that date, such benefits shall be available on or after such later date as may be determined by the Minister (being the earliest possible date on which arrangements for their effective administration can be brought into operation).

Medical Benefits.—Under the provisions contained in the Act every person will be entitled to such medical treatment as is ordinarily given by medical practitioners in the course of a general practice. The services of recognized specialists are outside the scope of the medical benefits. Every registered medical practitioner will be entitled to co-operate in the scheme for the provision of medical benefits on terms to be fixed by the Minister of Health after consultation with a Medical Committee. This benefit is not yet in operation (October, 1939).

Pharmaceutical Benefits.—Persons claiming medical benefits will be entitled to receive, without cost to themselves, all such medicines, drugs, approved appliances, and materials as are prescribed for their use by a medical practitioner in the course of providing any medical services under the Act. This benefit is not yet in operation (October, 1939).

Hospital Benefits.—The Act provides for the payment to Hospital Boards and to the proprietors of licensed hospitals and other approved institutions (who have entered into contracts under the Act) of prescribed amounts in respect of hospital treatment afforded by them. The amount paid to a Hospital Board is in full satisfaction of its claim for the treatment of patients; in the case of licensed hospitals and other institutions the amount paid is in partial satisfaction of claims against the patients or other persons liable for the hospital charges.

These benefits came into force on 1st July, 1939, and the rates prescribed by Order in Council dated 16th June, 1939, are as follows:—

  1. Where treatment has been afforded on not more than two days, the sum of 12s.:

  2. In every other case, the sum of 6s. for every day on which any treatment is afforded:

    Provided that the day of admission to hospital and day of discharge therefrom shall together be counted as one day.

The Act also provides that in lieu of payment being made in respect of individual hospital patients, the Minister may from time to time authorize the payment of a grant in respect of hospital treatment afforded in any private hospital or other approved institution.

Menial Hospitals.—The principal Act made provision for the treatment of patients in public mental hospitals without charge. By section 10 of the Social Security Amendment Act, 1939, a licensed (private) mental hospital may be recognized and approved by the Minister as a hospital for the purposes of the Act, and hospital benefits in respect of treatment therein are payable accordingly.

In order to recoup the Mental Hospitals Department for the loss of revenue consequent upon the operation of the Social Security Act, an amount estimated to be equivalent thereto will be transferred each year from the Social Security Fund.

Maternity Benefits.—Maternity benefits include ante-natal and post-natal advice and treatment by medical practitioners, and the services of doctors and nurses at confinements in maternity hospitals or elsewhere.

These benefits came into operation on 15th May, 1939, but a full medical practitioner service was not available until 1st October. The principal Act required that medical practitioners, licensees of private hospitals, &c., and midwives and maternity nurses who wished to come within the scope of the scheme should enter into a contract with the Minister. While this provision remains in force in regard to hospitals and midwives and maternity nurses, the Social Security Amendment Act. 1939, provides that any medical practitioner who renders medical services to a woman who is entitled to a maternity benefit is entitled to receive certain prescribed fees from the Social Security Fund. The scale of fees, which may be fixed by agreement between the Minister and the New Zealand Branch of the British Medical Association, or in default of such agreement by a special tribunal, is intended to cover the usual services performed in maternity cases. The amount calculated in accordance with the scale of fees for the time being in force shall be accepted by the medical practitioner in full satisfaction of his claims in respect of the services for which payment is made, except in the case of a practitioner who is recognized as an obstetric specialist in accordance with the terms of the Act. Such a practitioner, in addition to the fees payable from the Social Security Fund, may recover additional fees from the patient.

The main provisions in regard to maternity benefits apart from the medical practitioner service are as follows:—

  1. State Maternity (St. Helens) Hospitals: No charge is made for any services in the St. Helens Hospitals.

  2. Public Maternity Hospitals or Maternity Wards under Control of Hospital Boards: Payment to Hospital Board as under:—

    1. Two pounds five shillings in respect of the day or days of labour:

    2. Twelve shillings and sixpence in respect of each of the fourteen days succeeding the birth of the child:

    3. A fee of £2 where any patient is actually attended during labour and at delivery by a medical officer employed by the Board.

      These amounts are to be regarded as in full settlement of all claims in respect of the maternity benefits afforded by the Board.

  3. Licensed (Private) Maternity Hospitals: Licensees of licensed maternity hospitals who have entered into contracts under the Act are entitled to receive fees from the Social Security Fund at the same rates as stated in (a) and (b) in regard to Hospital Boards. These amounts are not necessarily to be regarded as in full satisfaction of the licensee's claims in respect of the maternity benefits afforded by the hospital, any charges over and above being payable by the patient.

  4. Midwives and Maternity Nurses: Approved midwives and maternity nurses who are in attendance in cases where confinement takes place other than in a maternity hospital are entitled to receive from the fund fees at the rate of £1 for the day or days of labour (£2 in the case of midwives) and 13s. per day for each of the fourteen days succeeding the birth of the child. These amounts are to be regarded as in full satisfaction of a nurse's claims in respect of the nursing services.

Supplementary Benefits.—Authority is given for the inauguration of supplementary benefits as and when the occasion for providing such benefits arises. Among the supplementary benefits contemplated are specialist and consultant services, radiological services, dental services, home-nursing services, and domestic assistance.

The following table gives particulars of the various benefits in force at the end of October. 1939, together with the amounts paid during the first seven months of the operation of the Social Security Scheme.

SOCIAL SECURITY BENEFITS.

October, 1939.Paid during Seven Months ended October, 1939.
Number in Force.Annual Value.Paid during Month.

* Four weeks ended 28th October, 1939.

† Thirty weeks ended 28th October, 1939.

‡ Total since commencement.

  £££
Age90,4926,829,883567,2203,721,753
Widows'9,769800,34969,167448,011
Maori War131,01491727
Miners'1,00294,1087,89055,274
Invalidity11,5441,034,63181,298539,761
Family10,190289,90625,306143,079
Orphans'29515,4731,6417,958
Emergency (age, widows, &c.)41332,4802,96513,179
Unemployment6,015..35,217*295,994
Sickness2,624..20,383*114,460
Emergency (unemployment and sickness)852..6,058*29,015
Hospital....64,591205,207
Maternity....27,230111,978

WAR PENSIONS.

The War Pensions Act, 1915, as amended, provides for the payment of pensions on certain conditions to disabled members of the New Zealand Forces (as defined by the Act) and to dependants of disabled, deceased, or missing members of the Forces.

The term “dependant” includes widow, wife, child, father, mother, grandfather, grandmother, step-father, step-mother, grandson, grand-daughter, brother, sister, half-brother, half-sister, or mother-in-law.

According to the Finance Act, 1938, the terms “dependant” and “child” include any child who became a step-child of the member by virtue of a marriage that took place before 1st August, 1936, and any child adopted by the member before that date.

Provision was also made in the War Pensions Amendment Act, 1936, whereby the widow of a disabled returned soldier has now the right of pension if she was married to him prior to 1st August, 1936. Previously the widow had a right to a pension only if married prior to, or not later than seven years after, her husband's discharge from the Forces.

The following is a summary of the present maximum weekly rates of pension payable in respect of disablement or death of a soldier or a nurse:—

Rank.In Case of Disablement.In Case of Death.Death or Disablement: Child.
Soldier.Wife or other Dependant.Widow without Child or other Dependant.Widow with Child.
 £s.d.£s.d.£s.d.£s.d.£s.d.
Private20010011002000100
Corporal20010011102100100
Sergeant20010011202200100
Sergeant-Major20010011402400100
Regimental Sergeant-Major20010011502500100
Lieutenant22611325021500100
Captain25012621003000100
Major212016021703700100
Lieut.-Colonel310110636031600100
Colonel330111638031800100
General350112631004000100
 In Case of Disablement.In Case of Death: Dependant other than a Child.Death or Disablement Child.
 Nurse.Dependant other than a Child.
 £s.d.£s.d.£s.d.£s.d.
Nurse2261132500100
Sister25012621000100
Matron
Matron-in-Chief212016021700100

Other grants and concessions which may be made to disabled soldiers include the following:—

  1. Additional pension up to £8 per annum to amputees wearing artificial limbs, to compensate for extra wear-and-tear upon amputees clothing:

  2. An allowance not exceeding £3 per week in cases where a pensioner is so disabled as to require the services of a paid attendant:

  3. A free pass on the New Zealand railways to members in receipt of full permanent pensions:

  4. A permit to travel first class at second-class rates on the New Zealand railways to leg amputees and others suffering locomotor disabilities to a degree of 50 per cent. or over for which they receive permanent pensions:

  5. Free medical and surgical treatment in respect of pensionable disabilities. Surgical appliances such as artificial limbs, &c., are also supplied and kept in good order and repair.

Any person in receipt of a war pension in respect of his own disablement may be granted any of the monetary benefits under the Social Security Act for which he may qualify. Also a person who was in receipt of an old-age pension and a war pension or war veteran's allowance prior to the operation of the Social Security Act may be granted an age-benefit, provided that the aggregate rates payable after the commencement of the Act, do not exceed the aggregate rates immediately prior to its operation. Otherwise no person in receipt of a pension under the War Pensions Act, 1915, or of an allowance under the War Veterans' Allowances Act, 1935, can receive a monetary benefit under the Social Security Act, other than a superannuation or a family benefit.

SUMMARY OF ANNUAL LIABILITY AT 31ST MARCH, 1939.

Class of Pension.Number of Pensioners.Number of Children.*Annual Value.Average Pension.
* I.e., Dependent children under sixteen years of age, covered by War Pensions.
Soldiers (permanent)11,47537£ 705,181£ 61
Soldiers (temporary)4,31824316,52873
Dependants of disabled soldiers3,1465,245264,95184
Widows (without children)1,465..143,85998
Widows (with children)41476367,913164
Other dependants of deceased soldiers—    
  Parents3,255..118,57136
  Other adult dependants99..3,40734
  Guardians of children851574,13449
    Totals24,2576,2261,624,54467

Figures showing the number of pensions, according to class, in each of the last five years are given below:—

At 31st March,Soldiers (Permanent).Soldiers (Temporary).Dependants (on account of Disablement).On account of Death.Total.
Widows (including Children's Pensions).Parents and other Dependants.
19359,9863,8752,2301,4124,17521,678
193610,3014,2632,6581,5843,82522,631
193710,6474,4443,2521,7173,65123,711
193811,0364,4393,0771,8003,74424,096
193911,4754,3183,1461,8793,43924,257

The total payments on account of war pensions to the 31st March, 1939, were £29,524,336, the figures for the last ten years being—

Year ended 31st March,Pension Payments.
 £
19301,207,748
19311,245,499
19321,261,778
19331,217,586
19341,246,441
19351,264,110
19361,349,447
19371,483,345
19381,597,524
19391,616,248

During the year 1938-39 medical treatment of war pensioners cost £68,535; railway concessions to certain classes of war pensioners cost £2,816; and loading on life-assurance policies of war pensioners due to war-service disabilities amounted to £170.

War pensions payable outside New Zealand (chiefly in Great Britain and Australia) as at 31st March, 1939, numbered 1,701, with an annual liability of £102,400.

ECONOMIC PENSIONS.

By an amendment to the War Pensions Act, 1915, provision war made for the payment of economic pensions to soldiers or their dependants. An “economic pension” is defined under the Act as a supplementary pension granted on economic grounds, and being in addition to any pension payable as a right in respect of the death or disablement of a member of the Forces.

Considerable reductions (maximum, 30 per cent.) in economic pensions were made as from 1st April, 1932. As from 1st August, 1935, an increase of 7½ per cent. on the then existing rates was granted, and by the War Pensions Amendment Act, 1936, and the Finance Act, 1938, the rates of pension were fully restored to those in force immediately prior to 1st April, 1932.

Economic pensions consist of three classes. Rates are as follows:—

  1. A maximum pension of £1 5s. weekly to disabled soldiers. Under the Finance Act, 1938. this is increased to £1 10s. as from 1st April, 1939.

  2. A maximum pension of 10s. weekly to widows of soldiers with one child, with an additional 2s. 6d. weekly for each child in excess of one.

  3. A maximum pension of £1 weekly to widowed mothers of deceased soldiers.

In every case the income of the pensioner affects the grant. Soldiers pensioned for minor disabilities do not receive economic pensions.

The total number of economic pensions in force at the 31st March, 1939, was 4,510, of an annual value of £263,582. Payments in respect of economic pensions are included in the general total of war pensions.

WAR VETERANS' ALLOWANCES.

The object of the War Veterans' Allowances Act, 1935, which is deemed part of the War Pensions Act, 1915, is to make provision for returned soldiers (or nurses) who, apart from any wounds or other injuries received during war service, are ageing prematurely or otherwise becoming unemployable by reason of physical or mental disability. The term “veteran” includes—

  1. Any person who, having been a member of the Forces within the meaning of the principal Act, served overseas as a member of the New Zealand Army Nursing Service, or, in the case of any other member of the Forces, served as such with a unit in actual engagement with the enemy; and

  2. Any other person who, being domiciled in New Zealand at the commencement of the Great War, served therein as a member of any of His Majesty's Forces other than the New Zealand Forces with a unit in actual engagement with the enemy; and

  3. Any person who, being domiciled in New Zealand at the commencement of the South African War, served therein as a member of a New Zealand contingent raised for service in connection with that war, or as a member of any of His Majesty's Forces other than the New Zealand Forces, with a unit in actual engagement with the enemy.

The War Pensions Board is required to be satisfied that an applicant veteran is unfit for permanent employment by reason of physical or mental disability, and that he has resided continuously in New Zealand (irrespective of occasional absences not exceeding six months in the aggregate) for five years immediately preceding his application.

The rates of allowances payable are—

  1. Unmarried veteran (including married veteran whose wife and children are not dependants): £52 per annum (increased to £65 per annum as from 1st April, 1939), diminished by £1 for each complete £1 of his annual income (not including this allowance) in excess of £26 (increased to £52 as from 1st April. 1939).

  2. Married veteran or widowed veteran with dependent children: £52 per annum (increased to £65 per annum as from 1st April. 1939), in respect of the veteran's personal claim; £39 per annum in respect of his wife: and £13 per annum in respect of each dependent child. These rates are diminished in every case by £1 for every complete £1 of combined annual income (not including this allowance) in excess of £39 (increased to £52 as from 1st April, 1939). The total allowance payable is limited to £143 per annum (increased to £156 per annum as from 1st April, 1939).

As from 1st April, 1939, the rates in respect of a veteran and his wife may each in the discretion of the War Pensions Board be increased by up to £13 per annum, the total allowance in such cases in respect of the veteran and his wife and dependent children not to exceed £182 per annum.

Other provisions of the Act authorize the payment of a gratuity not exceeding twice the annual amount of the allowance to the widow of a deceased veteran in receipt of an allowance.

The receipt of an allowance under this Act docs not affect any right to receive a pension under the War Pensions Act.

The Finance Act, 1938, contains authority as from 1st April, 1939, for payment of forfeited allowance to dependants when the veteran is in prison or is being maintained at the Government's expense as an inmate of any public institution. In the Board's discretion allowances in respect of children may be continued for educational purposes for up to two years after the child has attained the age of sixteen.

Since the passing of the War Veterans' Allowances Act in October, 1935, 3,426 allowances have been granted, of which 2,223, with an annual value of £159,031 were in force as at 31st March, 1939. These comprised 917 single veterans, 1,245 married veterans, 60 widows, and J grant on account of an orphaned child.

The total dependent children in respect of whom allowances were received as at 31st March, 1939, numbered 1,833.

SOUTH AFRICAN VETERANS' WAR PENSIONS

The total number of pensions in force under this heading at the 31st March, 1939, was fifty-four, representing an annual liability of £1,917. The amount paid out on claims during the year was £1,905. Pensions are granted under authority of the Defence Act, 1909.

In addition to the war pensions granted to South African veterans, old-age pensioners who served in the South African War may receive an additional old-age pension of 5s. per week in cases where the total income, including pension, does not exceed the rate of £110 10s. per annum. Prior to April, 1932, the total was not to exceed £97 10s., but was then reduced to £79 19s., increased to £84 from 1st April, 1934, restored to £97 10s. as from 1st August, 1935, and increased to £104 from 1st July, 1936, and to the present rate of £110 10s. from 1st December, 1936. The latest increases in the income limit, including pension, were authorized by the Pensions Amendment Act, 1936. Payments referred to in this paragraph are included with old-age pensions and not with South African War pensions.

DEFENCE PENSIONS.

Section 34 of the Finance Act, 1926, provides for pensions to be paid in the event of the death or disablement of members of the New Zealand Defence or Naval Forces by reason of misadventure suffered in the performance of their duties. The rates under this section are not to exceed the corresponding pension rates under the War Pensions Act, and all applications for pensions of this class are dealt with by the War Pensions Board.

MISCELLANEOUS PENSIONS.

In addition to the various classes of pensions enumerated in the foregoing part of this section there are pensions under the Civil Service Act, 1908, and other miscellaneous pensions and annuities.

The total number of pensions in force under the Civil Service Act at the 31st March, 1939, was 9 (annual value, £3,183). The total payments during the year amounted to £3,256. These pensions are granted to ex-officers of the Civil Service, and since the introduction of compulsory contributory superannuation schemes are rapidly dwindling. There were at the 31st March, 1939, 137 classed as “sundry pensions and annuities,” of a total annual value of £11,772. This class covers ex-members of the Legislative Department, and of the Police, Defence, and Naval Forces, certain ox-members of the Legislature, and others, by way of compassionate allowance, &c.

SUPERANNUATION FUNDS.

Schemes in force for the provision of superannuation payments to public servants on their retirement embrace the State Railways, Public Service (including Police), Teachers, and Stipendiary Magistrates. Local authorities are empowered to establish schemes under the Local Authorities Superannuation Act, 1908.

The law relating to the various superannuation schemes, other than those for the Railways Department and local authorities, is contained in the Public Service Superannuation Act, 1927, a consolidation of former legislation on the subject.

PUBLIC SERVICE SUPERANNUATION FUND .

The Public Service superannuation scheme, which includes all branches of the Public Service except the Railways Department and that part of the Education service which comes under the operations of the teachers' superannuation scheme, came into force on the 1st January, 1908. The scheme, although optional on the part of public servants permanently employed at that date, is compulsory on all persons permanently appointed thereafter. Certain classes of non-permanent officers may be permitted to join the Fund.

The Police Provident Fund, which was established on the 1st December, 1899, under the Police Provident Act, 1899, was merged in the Public Service Superannuation Fund on the 1st April, 1910.

The fund is administered by a Board, and consists of payments by contributors, interest on investments, Government subsidy, fines imposed on public servants as such, and proceeds of Police Department sales of unclaimed property.

The contributions vary with the age on joining the fund: For ages under thirty they are 5 per cent. of the salary; ages thirty and under thirty-five, 6 per cent.; thirty-five and under forty, 7 per cent.; forty and under forty-five, 8 per cent.; forty-five and under fifty, 9 per cent.; fifty and over, 10 per cent.

The principal benefits are—

  1. A pension for every year of service equal to one-sixtieth of the average annual salary for the last three years, payable (a) after forty years' service, or (b) at age sixty-five, or (c) on retirement owing to ill-health. The maximum pension is not to exceed two-thirds of the salary, nor, in the case of entrants after the 24th December, 1909, £300 per annum.

  2. A pension of £31 per annum to the widow of a contributor or pensioner during widowhood, and £26 per annum for each child under the age of fourteen. Prior to the 1st April, 1925, widows' and children's pensions were £18 and £13 per annum respectively.

Special pensions may be given in the case of members of the Police Force for injuries received on duty.

Females may retire after thirty years' service or at the age of fifty-five. In certain oases, and subject to certain terms and conditions, the Minister in charge of a contributor's Department may reduce the retiring age to sixty years for males and fifty years for females, or may reduce the requisite service to thirty-five years irrespective of age, or may reduce the retiring-age to fifty-five years if length of service is not less than thirty years.

At the 31st March, 1939, there were 26,283 contributors, paying £374,136 per annum into the fund. The pensioners at the same date numbered 3,913, and were entitled to £537,095 per annum, made up as follows:—

 Number.Pensions.
£
Retired for age or length of service2,003450,617
Retired for ill-health35737,827
Police injured on duty142,397
Widows1,24838,688
Children2917,566
Totals3,913£537,095

Section 14 of the Finance Act, 1931, as amended by a section of the Finance Act (No. 4), 1931, modified the retiring qualifications to permit of a further reduction of five years in age or service in the case of contributors compulsorily retired through no fault of their own. A specially computed reduced superannuation was provided.* The provisions covered the three major funds.

The following table contains particulars of the public servants who were contributing to the fund at the 31st March, 1939, grouped according to their respective rates of contribution:—

Rate per Cent.Number.Annual Salary.Annual Contributions.
Male.Female.Total.
    £s.d.£s.d.
519,1313,69622,8275,854,92234292,74622
61,5801401,720584,28512635,05729
7949791,028356,5700024,959180
847032502176,4886814,11914
9159916861,924345,57336
103713816,811001,68120
  Totals22,3263,95726,2837,051,001510374,13699

Accumulated funds at the 31st March, 1939, amounted to £3,199,010, total assets to £3,209,585, and investments to £3,037,648, £1,252,769 being invested in mortgage securities, and £1,784,879 in local-authority debentures and Government securities. The investment figures include £23,974 invested on Stipendiary Magistrates' account.

Officers who have retired since the initiation of the scheme, and who possessed compensation rights under the Civil Service Act, 1866, would have been entitled to receive the sum of £561,134, the amount of compensation accrued to the date when they joined the Superannuation Fund, had they not become participants in the benefits of the fund. To this amount must be added accretions to the date of retirement, approximately £143,000, for which the Consolidated Fund would otherwise have been liable, and the whole may be fairly set against the total subsidies paid to the fund, amounting to £2,792,170.

The Government subsidy to the fund was originally £20,000 per annum, rising in 1910 to £22,500, and in the next two years to £23,000. In 1913 it was increased to £48,000, and in 1919 to £86,000. In consequence of the position disclosed by the Actuary as at 31st December, 1919, an additional amount of £100,000 was contributed to the fund by the Government, divided between the years 1923-24 and 1924-25. An additional amount of £100,000 was also paid in 1929-30, following the actuarial investigation as at 31st March, 1927; while during the years 1932-33 to 1938-39 additional amounts were paid, mainly to compensate the fund for losses incurred as a direct result of the statutory reduction in interest.

The actuarial report for the four years 1930-34 gave the valuation of the fund on 31st March, 1934, as follows:—

 ££
Present value of existing pensions and allowances..4,471,373
Present value of prospective benefits11,001,720..
Less present value of members' contributions2,761,4708,240,250
Total net liabilities..12,711,623
Less funds in hand..2,964,064
Present value of total liability of State..9,747,559
Less present value of present subsidies of £86,000 and £40,000 (if treated as a perpetuity)2,800,000..
And less present value of State subsidy under section 114 of the Act625,8393,425,839
Value of future subsidies to be provided for by the State over and above the present subsidy£6,321,720

* By the Statutes Amendment Act, 1936, the method of computation is altered so as to increase the annual payment.

The actuarial report drew special attention to the significance of the deficiency to be made good by the State, and pointed out that the State liability of £9,747,539 was equivalent to an annual interest income (at 4½ per cent.) of £438,640.

All valuations of the fund prior to 1924 were made on the basis of interest at 4 per cent., a 4½-per-cent. rate being adopted for the last three periods. Although the average rate of interest earned on the funds has been steadily decreasing since 1933-34, the 1938-39 average is the first to fall below the 4½-per-cent. mark. The average rate of interest earned in each of the last ten financial years is as follows:—

Year ended 31st March,Average Rate per Cent.
 £s.d.
193051611
193151611
19325196
19335189
19345116
1935584
1936565
19374188
19384151
1939452

The total revenue of the fund for the year ended 31st March, 1939, was £746,775, including members' contributions £370,627, interest on investments and on contributions £130,915 (which includes a special payment of £16,269 from the Consolidated Fund to reimburse the Superannuation Fund on account of the statutory reduction of interest on all classes of securities), and Government subsidy £242,950, the last-mentioned including a special payment of £19,801 on account of increased benefits to widows and children. The total amount expended during the year was £619,951, including retiring and other allowances £527,726, refunds of contributions £64,220, transfers to other funds £17,834, and cost of administration £7,691.

A table is now given showing the progress of the fund for the last five years:—

Year ended 31st March,Number of Contributors.Annual Contributions.Interest receivable from Investments.Contributions from Government.Annual Value of Allowances.Accumulated Fund.
  £££££
193518,205240,406153,333149,211489,1992,917,452
193619,199263,077151,599147,952497,7642,934,240
193721,890310,675142,831163,930499,8692,997,898
193824,235347,735137,751174,259522,7133,072,185
193926,283374,136130,688242,950537,0953,199,010

TEACHERS' SUPERANNUATION FUND.

The scheme of superannuation for teachers came into operation on 1st January, 1906. The benefits were brought into line with those of the Public Service Superannuation Fund in 1908, existing contributors having, however, the right of electing to remain subject to the provisions formerly in force.

There are a few slight differences between the Public Service and the Teachers' Funds, the chief being that where teachers' back service is recognized it need not be continuous, and that a contributor is not deemed to have retired from the Education service by reason of unemployment unless the unemployment extends for twelve months or unless the contributor deliberately retires from the service as distinct from a particular position in the service. In certain circumstances the period of twelve months can be extended by the Board.

The expenditure of the fund for the year ended 31st January, 1939, was £376,196, of which retiring and other allowances represented £329,096, and refunds of contributions £41,765. The revenue for the year was £517,221.

On the 31st January, 1939, there were 8,653 contributors, representing annual contributions amounting to £143,325.

The retiring and other allowances as at 31st January, 1939, were made up of—

 Number.Pensions. £
Retired for age or length of service1,453284,765
Retired for ill-health22130,082
Widows3139,703
Children751,950
Totals2,072£326,500

The progress of the fund during the last five years is shown in the following table:—

Year ended 31st January,Number of Contributors.Amount of Contributions received.Interest received.Government Subsidy.Amount paid in Allowances.Accumulated Fund.
  £££££
19358,500114,69948,327166,048306,350989,310
19368,148119,56846,056170,046313,372974,715
19378,058132,63144,187171,800323,976964,605
19388,357139,83542,75954,824328,007834,465
19398,653146,23141,315329,675329,096975,491

Since the inception of the scheme, the Government has paid £1,992,968 in subsidies to the Fund.

The actuarial report on the Teachers' Superannuation Fund for the four years ended 31st January, 1934, gave the value of the total liability of the State in respect of the fund at that date as £6,483,816.

GOVERNMENT RAILWAYS SUPERANNUATION FUND .

The Government Railways Superannuation Fund was established on the 1st January, 1903, by the Government Railways Superannuation Fund Act, 1902, now embodied in the Government Railways Act, 1926.

The pension is here also one-sixtieth of the annual rate of pay for every year of service, but the retiring-age is sixty for both males and females (cf. Public Service, supra). The only other difference of importance is that the annual allowances to widows and children are paid only in cases where contributors die before retiring on a pension.

From 1st April, 1924, the moneys belonging to the fund have been separately invested by the Public Trustee. The average rate of interest earned during the year 1938-39 was 5.12 per cent.

The income for the year totalled £519,956, including members' contributions, £217,144; interest, £63,998; subsidies from Railways Department, £186,451 (including £16,451 on account of increased allowances to widows and children and members actuarially retired); and Consolidated Fund, £52,000. The expenditure during the year amounted to £510,325, of which retiring-allowances represented £433,369, allowances to widows and children £29,658, and refunds of contributions, &c., £47,298.

At the 31st March, 1939, there were 3,403 persons on the fund, receiving allowances involving an annual liability of £454,692.

The progress of the fund during the last five years is shown below:—

Year ended 31st March,Number of Contributors.Amount received from Contributors.Interest earned by Fund.Amount received from Government.Amount paid in Allowances.Accumulated Fund.
  £££££
193511,832137,39267,994269,999451,4981,239,705
193611,954144,83665,877265,163448,5981,246,984
193713,273160,33664,611247,704448,8271,250,861
193814,511209,51664,589231,091453,2601,272,724
193915,630217,14463,998238,451463,0271,282,354

The actuarial report on the Railways Superannuation Fund as at 31st March, 1934, gave the value of the total liability of the State in respect of the fund at that date as £9,099,898.

SUPERANNUATION OF MAGISTRATES.

The scheme for Magistrates provides for the same rates of contribution as under the Public Service scheme, but gives an annual retiring-allowance for each year of service (whether continuous or not) equal to one-fortieth of the annual salary receivable at the date of retirement, with, however, a limit of twenty-five fortieths. The retiring-age is also increased to sixty-eight, instead of sixty-five.

Members' contributions during the year ended the 31st March, 1939, totalled £1,705, and interest on investments brought in £964. Administration expenses during the year were £41, and retiring-allowances were £5,905. The accumulated fund at the 31st March, 1939, amounted to £23,974.

LOCAL AUTHORITY SUPERANNUATION.

The Local Authorities Superannuation Act, 1908, which came into force on the 10th October, 1908, applies to Borough Councils, County Councils, Town Boards, Road Boards, Harbour Boards, Fire Boards, tramway companies, or any authority possessing rating-power3 over any district.

Local authorities have not availed themselves of the provisions of the Act to any great extent, and statistical information as to the various funds which have been initiated under the authority of this statute is not available. Special provisions concerning local authority employees have been subsequently made under the National Provident Fund scheme, referred to under the next heading.

NATIONAL PROVIDENT FUND.

The National Provident Fund was established by Act in 1910, and came into operation on the 1st March, 1911. The Fund is administered by a Board composed of the Minister in Charge of the Fund as Chairman and four members appointed by the Governor-General, one of whom is the Superintendent of the Fund.

The scheme is open to any person between the ages of sixteen and forty-nine years residing in New Zealand whose average income during the three years prior to joining has not exceeded £300 per annum. There is no medical examination on entry, and the method of joining is extremely simple, the applicant having merely to fill in a form at a postal money-order office or local office of the Fund, and pay a first weekly contribution. Contributions may be met by deduction from salary or savings-bank account, while a discount is obtainable for contributions paid for three or more years in advance.

The following benefits are payable:—

  1. After contributing for five years, an allowance, after three months' incapacity for work, of 7s. 6d. per week for each child under fourteen years of age. No contributions are payable while in receipt of incapacity allowance. The income of a contributor during incapacity, independent of the Fund, is not to exceed the rate of £4 per week.

  2. After contributing for five years, an allowance, on the death of a contributor, of 7s. 6d. per week for each child under fourteen years of age, and 7s. 6d. for the widow so long as any child is under fourteen years of age.

  3. On reaching age sixty, an annuity of 40s., 30s., 20s., or 10s. per week, according to the scale of contributions. Certain rights to other pensions (now payable under Social Security Act) are preserved to contributors who joined the fund prior to 10th May, 1932, and the widows of those who joined between 1st January, 1927, and 10th May, 1932.

  4. On withdrawal or death, a refund to contributor or representative of all contributions paid, less any benefits received.

A maternity allowance of £6 (a State grant) is provided in the Act for the birth of a child to a contributor where the joint income of the parents does not exceed £300 per annum. Although this provision still remains, the institution of State maternity benefits under the Social Security Act practically supersedes it, as no cash allowance is payable from the Fund if the maternity benefits under that Act have been received.

ANNUITIES, SUPERANNUATION, ETC.

The contributions for each 10s. of weekly annuity range from 9d. per week in the case of persons joining at age sixteen to 9s. 4d. per week for persons joining at age forty-nine.

The benefits under the Act are guaranteed by the State, which also susidizes the contributions to the extent of one-fourth of the amount paid into the Fund, and meets the administrative expenses of the Fund.

An important extension of the Fund was made in 1914, when it was provided that the employees of local authorities, &c., could be enrolled in the Fund for superannuation purposes. Upon a local authority becoming a contributor, it is a condition of employment for all its future permanent employees that they shall be enrolled in the Fund. Another extension of the Fund was made in 1916, whereby members of approved friendly societies were granted maternity allowances and offered annuities on reduced terms and under special tables.

In 1925 provision was made for the payment out of the National Provident Fund of retiring-allowances to nurses and other members of the permanent staffs of Hospital Boards. The National Provident Fund Act, 1926, which is a consolidation of previous legislation on the subject, imposes on Hospital Boards the obligation to contribute to the Fund on behalf of their permanent officers, and thus places Hospital Boards in a different category from other local authorities, which are empowered, but not obliged, to become contributors.

Schemes of contribution by employers on behalf of employees are provided for by sections of the Finance Act (No. 2), 1927, and the Finance Act, 1929.

The Finance Act, 1938, provided that the Minister of Finance could become a contributor to the Fund in respect of any person employed in any Government Department on terms similar to those of the Public Service Superannuation Act, 1927.

Since the inauguration of the Fund in 1911, 102,437 persons (82,735 males and 19,702 females) have entered, and of these 72,998 (males, 57,891; females, 15,107) have discontinued for one reason or another, leaving 29,439 (males, 24,844; females, 4,595) on the books at the 31st December, 1938. Of the 4,007 discontinuances in 1938, 3,336 were on account of withdrawal, lapse, and cancellation, 166 on account of having attained the annuity-age, 95 on account of death, and the remainder, 410, were on account of transfers from one class of contribution to another class within the Fund.

The numbers of contributors for the various annuity rates as at 31st December, 1938, were as follows, male and female contributors being shown separately:—

Annuity Rate.Males.Females.Total.
10s. per week16,61982717,446
20s. per week2,2443312,575
30s. per week24341284
40s. per week52182603
Other5,2173,3148,531
    Totals24,8444,59529,439

Contributions during the year 1938 amounted to £313,900 and interest to £198,617. Government contributions under the Act totalled £76,222, exclusive of £40,602 for maternity claims. The largest item on the expenditure side was £96,737 by way of refund of contributions on lapse, reduction, and withdrawal.

The progress of the National Provident Fund scheme during the last six years is indicated in the following table:—

Year.Number of Contributors.Annual Rate of Contribution payable.Total Amount of Fund.Claims during Year.
Maternity.In capacity.RetiringWidows and Children.
  ££££££
193425,172231,8584,037,79335,1307,75346,40411,873
193525,782239,3754,341,06032,3987,84051,75812,349
193626,574251,9384,649,08235,7929,18158,91712,344
193728,972275,3954,992,58737,61810,51166,37012,498
193829,439295,1385,290,25840,60210,30673,69113,476

The amounts required to provide maternity allowances are voted by Parliament annually.

An actuarial examination of the Fund as at 31st December, 1937, covering a period of twelve years, disclosed the highly satisfactory surplus of £293,331, and the Actuary reported that no additional State subsidy is required.

The accumulated fund at 31st December, 1938, amounted to £5,290,258, of which £5,250,796 was invested, mainly in Government securities.

Chapter 26. SECTION XXVI.—LOCAL GOVERNMENT.

INTRODUCTORY.

LOCAL government throughout New Zealand is exercised by a number of local authorities constituted under various Acts of Parliament. These Acts provide for the creation of districts over which the local authorities exercise jurisdiction. Different types of district are distinguishable, each type being identified with a specific function or group of functions. Geographically, the Dominion is divided into 129 counties, which comprise its total area, except for certain small islands which are not included within the boundaries of the adjacent counties. Administratively, boroughs and independent town districts, which are contained within the areas of the several counties, are regarded as separate entities. From an administrative point of view, therefore, the fundamental districts are counties, boroughs, and independent town districts. Upon this foundation a considerable superstructure of districts of other types has been erected. These overlapping districts may be divided into two broad classes: (1) Districts formed from parts of counties—e.g., road districts; and (2) those which are comprised of a group of adjacent districts of other types united for a common purpose—e.g., electric-power districts. The number of local authorities actively functioning at the 1st April, 1939, was 673, made up as follows: County Councils, 125; Borough Councils, 128; Town Boards (independent), 34; Town Boards (dependent), 22; Road Boards, 13; River Boards, 38; Land-drainage Boards, 49; Urban Drainage Boards, 3; Water-supply Boards, 4; Fire Boards, 55; Local Railway Board, 1; Harbour Boards, 44; Electric-power Boards, 41; Hospital Boards, 42; Tramway Board, 1; Transport Board, 1; Gas-lighting Board, 1; and Rabbit Boards, 71. In addition to the foregoing there are 18 District Councils of the Main Highways Board constituted under the Main Highways Act, 1922. These, although not local authorities in the strict sense of the word, are nevertheless intimately connected with certain aspects of local government, and have power to make recommendations of great importance.

Detailed statistics relating to each local authority, other than Hospital Boards, are contained in the Local Authorities Handbook, an annual publication of the Census and Statistics Department. Hospital Boards, which supply their returns to the Department of Health, are omitted from the statistics contained in this section, but summarized data relating to them will be found in Section VIB.

The local-authority year now uniformly ends on 31st March, except in the case of most Harbour Boards. In certain cases whore the harbour is administered by a County or Borough Council, the year ends on 31st March, but in all other cases on 30th September.

The history of local government in New Zealand may be conveniently divided into two periods associated with two distinct forms of administration—(1) The provincial system, in which the local government of each province was a function of the provincial authorities; and (2) the present county system, which arose on the abolition of the provinces in 1876, and in which the general responsibility for the local government of the whole country was undertaken by the central Government.

THE PROVINCES.

Although New Zealand was at first (1848) divided into the two provinces of New Ulster and New Munster, it was not until 1853 that the provincial system really commenced. In that year the two existing provinces were abolished and the colony was divided into the six provinces of Auckland, New Plymouth (altered to Taranaki in 1859), Wellington, Nelson, Canterbury, and Otago. The number was later increased to nine by the separation of Hawke's Bay from Wellington (1859), Marlborough from Nelson (1860), and Southland from Otago (1861). Subsequently it was reduced to eight by the merging of Southland with Otago (1870), and restored to nine again by the separation of Westland from Canterbury in 1874, Westland having been a county independent of Canterbury from 1867. Each province was presided over by a Superintendent and Council, with power to legislate for its own territory, subject, however, to disallowance by the Governor, and also to the exclusion of such matters as Customs duties, postal affairs, Crown lands, superior Courts of law, coinage, and paper currency, which were to be controlled by the General Assembly (central Government). The provinces received from the central Government a capitation allowance for the maintenance of harbours, hospitals, asylums, charitable aid, and police; while each province was expected to provide for the construction and maintenance of roads, bridges, and other public works out of its own revenues, which were derived chiefly from the sale of waste lands.

The Provincial Councils, therefore, were virtually left with the whole responsibility of providing for the details of local administration. The Councils in turn delegated certain of their powers and functions to lesser authorities, and a number of boroughs, towns, and road and highway districts came into being. Owing, however, to the lack of uniformity between the Ordinances of the various Councils on the subject of local government, considerable confusion arose and rendered impossible any satisfactory co-ordination beyond provincial boundaries. Thus main roads were frequently planned without sufficient regard to the linking-up of the country as a whole. With the rapidly increasing population, and consequent extension of settlements, the need for the development of communications along national instead of provincial lines became apparent. That the provinces had definitely outlived the period of their usefulness became abundantly clear during the prosecution of the Vogel policy of immigration and public works initiated in 1870, and in 1875 the Abolition of Provinces Act was passed in the face of strong parochial opposition.

CONSTITUTION OF LOCAL DISTRICTS.

In 1876 local government entered upon an entirely new phase, the central Government assuming the general responsibility for the local administration of the whole country. All existing legislation on the subject was repealed and new measures were introduced, notably the Counties Act, 1876, which divided the country into sixty-three counties, with provision for administration by elective councils having powers considerably less than those enjoyed by the Provincial Councils. Another important enactment of the same year was the Municipal Corporations Act, referred to later. While these measures have long since been repealed, it is upon them that the broad structure of the present system is based.

Since the inception of the comity system there has been a great expansion of local government throughout the Dominion. With the growth of population there has been a steady increase in the number of counties, boroughs, and town districts, while entirely new types of district have been created to cater for special services. The development of the system is best followed by considering each type of district separately.

Counties.—Although the county system proper dates from 1876, there is record of much earlier attempts to introduce this form of administration. Thus in 1842 Eden County, containing the then capital (Auckland), was proclaimed, while in 1867 Westland was separated from the Province of Canterbury and constituted a county. In general the county organization makes provision for the primary needs of a scattered population within a large area. Formerly, at least, the county council was mainly concerned with the construction and maintenance of main arterial roads, but with the development of transport and communication it has come in for a considerable measure of detail work formerly done by the Road Boards, now practically extinct. The original sixty-three counties have undergone much subdivision with the increase of settlement, and at the present time there are 129 counties, in 125 of which the Counties Act is wholly, and in three partly, in force. The remaining county (Fiord) is practically uninhabited.

Boroughs.—Dealing with the needs of a concentrated population, the borough organization is concerned with a wide range of functions of a purely local nature. The first legislation appeared in 1842 in the form of the Municipal Corporations Ordinance, which provided that any area not exceeding seven square miles and having a population of not less than two thousand might be declared a borough. Only one borough—Wellington—was constituted under this Ordinance, which was subsequently disallowed by the Imperial Government on the ground that it encroached on the rights of the Crown in regard to certain lands. Several boroughs were created later in the most diverse manner under the various Ordinances of the different provinces, and in 1867 the General Assembly passed legislation under which the then existing twenty-one boroughs were entitled to incorporation on the petition of fifty householders. Provision was also made for the constitution of new boroughs on the petition of one hundred ratepayers of any district having at least two hundred and fifty inhabitants and comprising an area not greater than nine square miles, within which no two points were more than six miles distant. The 1867 legislation was repealed by the Municipal Corporations Act, 1876, which provided for the incorporation of the thirty-six boroughs then in existence, and for the creation of new boroughs, as in the Act of 1867. The powers of municipalities were extended, permitting the construction of tramways, gasworks, and water-supply works; while the borrowing powers of boroughs were placed on a definite and uniform footing. With the growth and centralization of population the number of boroughs has, despite numerous amalgamations of adjacent boroughs, steadily increased to the present total of 128.

Boroughs are now constituted under the Municipal Corporations Act, 1933, which lays down geographical requirements the same as in 1867, but with the stipulation of a minimum population of one thousand. The area restriction may afterwards be exceeded if necessary for merger or amalgamation purposes. A borough containing a population of twenty thousand or more may be proclaimed a city, although the corporation remains unaltered.

Town Districts.—Town districts were in existence in the days of the provinces, but the Town Board, as a distinct type of local-governing authority, did not appear until 1882. Provision was made by an enactment of 1881 for the proclamation of a town district on the petition of two-thirds of the resident householders of any settlement of at least fifty householders having an area not exceeding two square miles, and having no two points more than four miles distant from each other—requirements which remain in force at the present time. The town district represents a form of local government intermediate between the county and the borough. It implies a certain concentration of population and the presence of interests which, from their purely local nature, cannot be satisfactorily met by the county organization. In its early stages a town district usually remains subject to county control, although such control is practically confined to the main and county roads in the town district; in such circumstances it is known as a dependent town district. Experience showed that with the development of a town district there was a tendency for friction to arise with the county administration in the matter of finance, and it was further realized that after a certain stage of growth had been reached no useful purpose could be served by continuing the county control. This state of affairs was met by the Town Boards Amendment Act, 1908, which provided that certain town districts should no longer form parts of the counties in which they were situated, and also enabled other town districts on reaching a population of more than five hundred to become independent. On attaining its independence a town district becomes in all respects a separate entity, and, apart from its smaller population, is not essentially different from a borough. The number of town districts at present is fifty-six (thirty-four independent and twenty-two dependent).

Road Districts.—Although now mainly of historical interest, the road district played a very important part in the scheme of local government in the essentially colonizing days of New Zealand. It was early recognized that with the means of transport and communication in a primitive state the development and maintenance of local public works in country districts could be best carried out by organizations administering comparatively small areas, a vital need being adequate road-connection between the outlying settlements and the more thickly populated centres. This requirement was provided for by Road Boards, the formation of which had the two-fold advantage of relieving the provincial authorities of a mass of detail work, and at the same time ensuring that the needs of the districts would be properly catered for by a management in close touch with local requirements. The essence of the Road Board system may be traced back to the Public Roads and Works Ordinance of New Ulster, 1845, a measure which remained in force until the abolition of the provinces. This Ordinance provided for the declaration of a highway district on a petition of a majority of the resident electors—i.e., freeholders and lessees—to be administered by an elective Highway Commission with power to levy and collect rates. The principal functions of such Commissions were the construction and repair of roads, bridges, waterworks, and other works of public utility. The boundaries of the districts and the rates (on an acreage basis) were determined by a majority of the electors.

Many road districts were created under provincial Ordinances, but instead of being mapped out on some uniform plan in accordance with topographical features they were frequently defined according to the caprices of local owners and occupiers. Much defective organization and many anomalies arose, with a great lack of uniformity in the nature, functions, and powers of the road districts in different parts of the colony. In 1882 the General Assembly repealed all previous measures relating to Road Board government, and made provision for uniformity throughout the country. With greater facility of transport and communication this type of local government has now practically gone out of existence, for, while the Road Board was indispensable at one time, it is generally recognized that it has served its purpose. The number of Road Boards, which in 1883 was as high as 320, now stands at thirteen.

River Districts.—Various Acts of Parliament and provincial Ordinances providing for the protection of areas subject to inundation by flooded rivers were passed between the years 1868 and 1880. In 1884 there was placed on the statute-book a general enactment, known as the River Boards Act, 1884, which repealed the various Acts and Ordinances then in force, and consolidated the law relating to the constitution of River Boards and the construction of river-works. Sixteen districts were deemed to be districts under the new Act, and the Boards of Conservators for such districts were deemed to be duly constituted River Boards. At the present time these districts, which are formed from parts of counties, number forty-five, including seven where there is no River Board in operation.

Land-drainage Districts.—Legislation relating to this type of local authority first appeared in the Land Drainage Act, 1893, providing for the constitution of land-drainage districts and Boards. The object of the Act was to provide for the drainage of agricultural and pastoral lands, which matters, as in the case of the previous type of local authority, were essentially of a more local nature than the affairs of the county at large, and therefore more suited to management by an administrative body on the spot. There are fifty land-drainage districts in existence at the present time, including one where there is no Board in operation.

Water-supply Districts.—The Water-supply Act of 1891 marks the initiation of water-supply districts. The object of the enactment was to enable County Councils and, in cases where the Counties Act was not in operation, Road Boards, to construct and maintain works for the supply of water in country areas, and to make provision for the cost thereof. There are four such districts in existence.

Urban Drainage Districts.—This type of local district consists of the grouping of a city with a number of adjacent boroughs, and was brought into existence with the object of giving to one authority the general control of drainage matters, over the whole area. Obviously, where one main arterial system can be made to serve a number of adjoining districts a maximum of co-ordination and economy is best secured by entrusting the general control of affairs to one authority over the whole drainage system rather than to a number of bodies holding office in different capacities throughout the drainage area. Moreover, the creation of such districts under the control of autonomous authorities operates to lessen the somewhat numerous and diverse duties falling to the lot of the governing authorities of the larger municipalities. These districts, of which there are three in existence, are constituted by special Acts of Parliament, the earliest one dating from 1875.

Tramway District.—This type of district is similar in formation to the previous type, and is based on the same principle. In all cases but two, however, the tramway systems are owned and controlled by City and Borough Councils, notwithstanding that the permanent-way extends in some cases into areas of adjacent boroughs. The only tramway district in existence at the present time is the Christchurch Tramway District, constituted by special Act of Parliament in 1902.

Transport District.—Similar in principle to the Christchurch Tramway District, the Auckland Transport District—the only one of its type—came into existence in 1929. Previously the tramway and motor-omnibus services of Auckland City, although serving a number of adjoining local districts in addition to the city, were controlled by the City Council. With the creation of the transport district, provision was made for control by a Board, consisting of members representing the ratepayers of each district within the transport area.

Local Railway District.—Railway ownership and control in New Zealand is recognized as essentially a national concern, and practically the whole of the railway system is owned by the State and controlled by the Railways Department. In certain cases, however, where the Government itself does not feel justified in constructing a railway-line the Local Railways Act, 1914, empowers the Governor-General, subject to certain conditions, to declare a local railway district, and to authorize railway-construction therein by a local Railway Board elected by the ratepayers of the district. Before such authority is given, the Government must be satisfied as to the necessity for a railway, and in this connection consideration is given to a district where the topography is such that the construction of main arterial roads would be extremely difficult and costly. Assurance must also be given as to the probable success of the enterprise. Certain conditions are imposed by the Act. The gauge of the line must be the same as for Government railways, and the Government may enter into an agreement with the Board stipulating that any Government trains or rolling-stock may be run over the Board's line. A power of purchase, subject to twelve months' notice, is also given to the Government. There is only one local railway district (at Ohai, Southland) in existence at the present time.

Electric-power Districts.—The rapid and extensive development of hydro-electricity in New Zealand during recent years has brought about the establishment of special districts. The policy of the Government generally is to supply power in bulk, leaving reticulation and retail supply in the hands of local authorities. Formerly the latter functions were exercised by boroughs, counties, and town districts; but with the extension of electric supply to the country districts a stronger organization became necessary, and this was provided under the Electric-power Boards Act, 1918. This Act, which is now embodied in the Electric-power Boards Act, 1935, permits a number of local districts to combine for the purpose of electric-power distribution, and to set up a special Electric-power Board to carry out the work, with rating-powers over the district concerned. Progress has been rapid, and at the present time there are forty-one duly constituted districts.

Harbour Boards.—The Marine Boards Act of 1862 provided for the setting-up of local port authorities, but apparently proved unsatisfactory, for after a number of attempts at amendment it was eventually repealed by the Marine Acts of 1866 and 1867, which for the first time put the supervision of harbours on a reasonably satisfactory basis. The Superintendent of each province was empowered and required to control local harbour works and operations, especially in respect of licensing watermen and generally controlling vessels plying for hire, licensing and inspecting lighters, ballast-boats, tank-boats, tugs, &c., regulating the berthing, movements, loading, and unloading of vessels at wharves and docks, and the operation of wharves and docks and the levying of charges for the use thereof. This centralized control of harbours was, however, found to be awkward in practice, and a strong movement arose for the vesting of their management in local Boards. The full measure of local control desired was secured with the passing of the Harbour Boards Act, 1870, under which power was given to the Superintendents and Councils of the several provinces to make laws governing the constitution and management of Harbour Boards within their own particular provinces. In 1878, two years after the abolition of the provinces, this Act was repealed by a new enactment, which provided that no new Board was to be constituted except by special Act of Parliament. The constitution of the twenty-two Boards which had been created by virtue of the 1870 Act was duly provided for by the new measure, which was regarded as a special Act for each Board. With the growth of population and trade practically all the available harbours in the Dominion have been brought into use, and at the present time there are forty-four Boards in existence

Hospital Districts.—Prior to the abolition of the provinces in 1875 hospital maintenance was left to the care of the several Provincial Councils, each of which had a system of its own. On the change-over to the county form of government in the following year all of these diverse systems came under the charge of the central Government, and many difficulties and incongruities occurred. Gradually there grew up a system of excessive demands upon the Government, and in 1885 an attempt to reduce a somewhat chaotic state of affairs to some semblance of order and uniformity took shape in the Hospitals Act of that year, which provided for the constitution of special hospital districts and Boards. Several amendments, based on the result of experience, were passed in later years, and the present law relating to the subject is embodied in the Hospitals and Charitable Institutions Act, 1926, as amended in 1928, 1929, 1932, and 1936. As in certain other cases, hospital districts consist of a grouping of adjoining districts of other types, the whole district being under the jurisdiction of one authority for that particular service. There were forty-two hospital districts at 1st April, 1939.

Fire Districts.—Prior to the year 1906 measures for the protection of life and property from fire were left in the hands of the various local authorities holding jurisdiction in various capacities over their respective districts. While much good service was rendered under this system, it was realized that, in order to keep pace with growing requirements and to place the question of finance on a more equitable basis, fresh legislation would be necessary. This took shape in the Fire Brigades Act, 1906, a measure which provided for the declaration of any area under the control of a Borough Council or other local authority as a fire district, subject (for the purposes of the Act) to the jurisdiction of a Fire Board. Recognition was also given to the principle that, fire-fighting and fire-preventing activities being of considerable advantage to the fire-insurance companies operating in the district, these companies should fairly be required to give a quid pro quo. Under the old regime a number of companies actually did make voluntary contributions, but these donations, in general, were not at all commensurate with the service rendered. It was provided, therefore, that of the annual expenditure of a Board, less the Government grant, one-half should be borne by the local authority (or authorities) holding jurisdiction in the fire district, and one-half by the fire-insurance companies operating therein, these companies being entitled to representation on the Board. At the present time there are fifty-five fire districts in existence.

Rabbit Districts.—A few years after the introduction of rabbits into New Zealand it was realized that the damage caused to agricultural and pastoral lands by these animals was so considerable as to warrant exterminative measures, and in 1876 there was placed on the statute-book the Rabbit Nuisance Act, 1876, which empowered the Governor to declare rabbit districts on the petition of ten landowners, and to constitute Rabbit Boards for such districts, with power to direct the destruction of rabbits and to offer bonuses or rewards for such destruction. Although action was at first left to local initiative, an enactment of 1881 provided for the appointment of Government Inspectors to abate the nuisance. In 1882 the local Board system was abolished and administration left wholly in the hands of the Inspectors. Four years later the previous system, with slight modifications, was revived. The present law relating to the subject is embodied in the Rabbit Nuisance Act, 1928, which entrusts administration to Government Inspectors of Stock, who operate over a wide area; provision is also made for the constitution of rabbit districts, the Boards of which act in concert with the Inspectors. There are seventy-one rabbit districts at the present time.

Gas-lighting District.—To provide for the extension of the gas service of one borough to meet the needs of an adjoining municipality a special gas-lighting district was constituted. The Board exercising jurisdiction is composed of representatives of the two boroughs concerned, Lower Hutt and Petone.

Main Highways Districts.—A description of the main highways system is given on pages 335-339 of this Year-Book.

FRANCHISE.

The franchise in local government is a variable one, differing considerably as between urban and country districts. In country districts a property qualification is required, and there is differential voting-power according to the value of property possessed. In boroughs and town districts, generally speaking, every adult is entitled to vote at the poll for the election of the local-governing authority, although on any proposal relating to loans or rates a ratepaying qualification is necessary. One vote only is allowed, but it is possible, by virtue of property qualification, to have a vote in more than one district. Details of the franchise as it affects each type of local district are as follows:—

Counties.—County franchise is based on property qualification, one vote being allowed where the rateable value does not exceed £1,000, two votes where the value is greater than £1,000 but not in excess of £2,000, and three votes where the value exceeds £2,000. An exception to the above occurs in the case of the holder of a miner's right, who, unless he is already entitled to vote in respect of rateable property, is entitled to one vote, provided (1) ho is also the holder of a mining privilege and is actively engaged in mining, and (2) ho is resident in the riding of the county and has been continuously so resident for two months immediately preceding the nomination of candidates.

Boroughs.—Any person of twenty-one years of ago and over who possesses any one of the following qualifications is entitled to be enrolled on the district electors roll:—

  1. Freehold qualification—meaning the beneficial and duly registered ownership of a freehold estate in land of a capital value of not less than £25 situated in the borough, notwithstanding that any other person is the occupier thereof.

  2. Rating qualification, which may be held by any person whose name appears in the valuation roll as the occupier of any rateable property within the borough.

  3. A residential qualification may be held by any British subject (either by birth or by naturalization) who has resided for one year in New Zealand and who has had residence during the last three months in the borough to which the roll relates.

  4. An occupier's qualification is deemed to be held by a person who is, and for at least three months last past has been, in occupation as a tenant of a tenement in the borough the rental of which is not less than £10 per annum, or as a subtenant or joint tenant of such a tenement the rental value of which is at least £10 per annum for each of the several subtenants or joint tenants.

As stated above, no person is entitled to vote at a poll taken on any proposal relating to loans or rates by virtue only of a residential or occupier's qualification.

Town Districts.—The franchise is the same as for boroughs, except that for county electoral purposes in the case of dependent town districts the county (ratepaying) qualification is necessary.

Rabbit Districts.—The franchise is based on stock ownership, from one to five votes being allowed according to the number of stock units owned. A sheep is counted as one unit and cattle as five units each. For up to 5,000 units one vote is allowed; over 5,000 but not exceeding 10,000, two votes; over 10,000 but not exceeding 20,000, three votes; over 20,000 but not exceeding 30,000, four votes; over 30,000, five votes.

Other Districts.—Road districts, river districts, land-drainage districts, water-supply districts, and the local railway district all have a franchise similar to that of counties.

Districts composed of a grouping of districts of other types united for a common purpose have a franchise as for the component districts. Such districts are urban drainage districts, electric-power districts, harbour districts, hospital districts, urban transport districts, and the gas-lighting district.

GENERAL POWERS.

Local authorities in New Zealand derive their powers from the Acts under which they are constituted, and also from special empowering Acts. In addition to legislation providing for particular types of local authority or for individual local authorities, there are several statutory measures which are more or less applicable to all local authorities, such as the Local Elections and Polls Act, 1925, and the Local Bodies' Loans Act, 1926. In the case of Harbour Boards, there is in addition to a general Harbours Act a special Act for each Board, which is subordinate to the general Act. Certain types of local authority—Urban Drainage Boards, the Local Railway Board, the Tramway and Transport Boards, and the Gas-lighting Board—derive their principal powers from special constituting Acts.

Local authorities have general powers of entering into contracts for any of the purposes for which they are constituted; of selling and leasing land; and of taking or purchasing any land which may be necessary or convenient for any public work.

The following examples of the delegation of powers of local authorities are of interest. The Napier Borough Council appointed (under section 49 of the Municipal Corporations Act, 1920) two persons to act as a special committee of management, to whom the powers of the Council were delegated. This appointment followed the disastrous Hawke's Bay earthquakes of 3rd February, 1931, and the powers of the committee were extended by section 64 of the Hawke's Bay Earthquake Act, 1931. The committee ceased to function in May, 1933. In view of the financial position of the Thames Borough, the Thames Borough Commissioner Act, 1932, was passed and a Commissioner appointed to administer the borough as from the 21st September, 1932. For similar reasons, section 10 of the Local Legislation Act, 1932-33, provided for the administration of Matakaoa County by a Commissioner whoso appointment was made from the 1st May, 1933. The three cases of Napier, Thames, and Matakaoa represent a form of local-authority administration believed to be without precedent in New Zealand.

AMALGAMATION.

Various statutory provisions exist for the voluntary amalgamation of local authorities, and these have been availed of from time to time. There have been numerous amalgamations of contiguous boroughs, while reference has already been made (see page 650) to the practical extinction of the one-time numerous road districts, which are now merged in county areas. No provision has hitherto existed for compulsory amalgamation such as is contemplated by the Local Government (Amalgamation Schemes) Bill, originally introduced during the session of 1936 and still under consideration. The Bill proposes to make provision for the union of two or more adjoining districts whether or not of like status or constitution, the merger of any district, the transfer of functions from one local authority to another, an adjustment or alteration of boundaries, the conversion of a district into a district of different status or constitution, and any other relevant matters.

The Bill is primarily motivated by a desire to secure greater efficiency in local government. It is also anticipated that there will be some saving in direct administrative and other expenses; but such is not the real object of the Bill, the fundamental purposes of which are the amalgamations of existing counties, boroughs, and town districts where such amalgamations would promote efficiency, and the abolition of the smaller ad hoc authorities.

The basis of the Bill lies in the preparation of amalgamation schemes by, or on behalf of, the local authorities for the different localities. Provision is made for local authorities to work out and submit schemes best suited to the requirements of their localities. Failing such voluntary action the Minister of Internal Affairs may order local authorities to submit schemes, and in the event of default may himself, after consultation with the local authorities concerned, prepare an amalgamation scheme. The Minister will have power to refer any scheme to a Commission consisting of a permanent chairman, a departmental officer, and a third person appointed in respect of each inquiry by agreement between a majority of the local authorities concerned, or, failing such agreement, on the recommendation of the Minister, having regard to the local knowledge of such person.

BORROWING.

Under the Local Government Loans Board Act, 1926, all loan proposals of local authorities, except in regard to money borrowed in anticipation of revenue, require the sanction of the Local Government Loans Board. The Board consists of the Secretary to the Treasury, the Engineer-in-Chief of the Public Works Department, and five other members appointed by the Governor-General. In cases where a poll of ratepayers is necessary preparatory to raising a loan, the Board's consent must be obtained before the poll is held. In no case may the Board sanction any application unless provision is made to its satisfaction for repayment of the loan within such period as it deems reasonable, having regard to the probable duration and continuing utility of the works on which the loan-moneys are to be expended.

The principal legislation dealing with the borrowing-powers of local authorities is contained in the Local Bodies' Loans Act, 1926, which is mainly a consolidation of previous measures on the subject. A local authority is thereby empowered to raise a special loan for the construction of any public work, for the purchase of land or buildings, or for the purpose of engaging in any undertaking which the local authority may lawfully enter into. As explained previously, a loan proposal first requires the sanction of the Local Government Loans Board. It must then be sanctioned by the ratepayers at a special poll held for the purpose (except in those cases where a poll is not required to be taken), and the proposal is not deemed to have been carried unless at least three - fifths of the valid votes recorded are in favour of it, save in the case of boroughs and town districts, where a bare majority only is necessary. The properties and revenue of the local authority may be pledged as security for the repayment of any principal sum or interest thereon, or a special rate may be levied for the same purpose.

The borrowing activities of certain types of local authority are subject to special provisions. Under the Hospital and Charitable Institutions Act, 1926, a Hospital Board must first obtain the approval of the Minister of Health before exercising its power to borrow; in the case of Fire Boards the prior consent of the Minister of Internal Affairs is required, and Rabbit Boards must first seek the approval of the Minister of Agriculture; in both of these cases the amount that may be borrowed is limited by statute. Harbour Boards derive their authority to borrow for harbour-works from special empowering legislation. Similar authority is given for the capital works of Urban Drainage Boards, the Christchurch Tramway Board, the Auckland Transport Board, and the Petone and Lower Hutt Gas-lighting Board.

The Finance Act (No. 2), 1935, extends the right of applying for a State guarantee of a special loan under the Local Bodies' Loans Act, 1926, to cover also any loans that a local authority is authorized to raise by the latter Act without taking a poll.

RATING.

Local authorities are largely dependent on revenue from rates to carry out their activities, and even loans raised for special purposes are ultimately liquidated by such revenues—known then as special rates. Three broad classes of rates are distinguished:—

  1. General, for general purposes.

  2. Separate rates levied for the construction of public works, for the acquisition of land or buildings, or for the benefit of the whole or part of a local district.

  3. Special rates imposed to secure the repayment of loan-money, being sufficient to produce interest and sinking fund, or interest and instalment of principal, as the case may be. Special rates can be levied only by resolution gazetted, and, unlike general and separate rates, are not subject to any statutory limit.

There are three main systems of rating: (1) Capital (land and improvements) value, (2) annual value, and (3) unimproved value. In a few cases rating is on an acreage basis, and in the case of certain Rabbit Boards the rate is according to the number of sheep and/or cattle owned.

The Rating Act, 1925, provides that the local authority of any district (other than a district wherein the system of rating on the unimproved value is in force) may from time to time by resolution determine whether the system of rating on the annual value or on the capital value shall be in force in the district. The system of rating is upon the basis that 1s. in the £1 on the annual value is deemed to be equivalent to 3/4d. in the £1 on the capital value of rateable property; or where in a district not rating on the annual value it is necessary for any purpose to ascertain the annual value of any rateable property, then the annual value thereof is equal to 6 per cent. on the capital value of such property. The annual value is deemed to be the letting-value, less 20 per cent. in case of houses, buildings, and other perishable property, and 10 per cent. in case of land, but in no instance is the rateable value to be less than 5 per cent. of the value of the fee-simple.

The Urban Farm Land Rating Act, 1932, with the object of affording some relief to owners of farm lands subject to rating by a Borough Council, authorizes the preparation of a special farm-land roll, which is deemed part of the valuation roll for rating purposes.

Consequent upon the decline in property values during the depression years, many owners took advantage of the provisions of the Valuation of Land Act permitting individual revaluations. In order to preserve equity in rating, the Valuation of Land Amendment Act, 1933, authorized local authorities to levy rates upon a proportionate part, not being less than 75 per cent., of the values upon the roll. Where individual revaluations have been made, rates are levied either upon the new valuation or upon the proportionate part of the value existing prior to revaluation, whichever is the lower.

RATING ON UNIMPROVED VALUE OF LAND.

The Rating on Unimproved Value Act, 1896, was passed to afford local authorities the opportunity of adopting the principle of rating expressed in the title of the measure. The Act is now incorporated in the Rating Act, 1925. It is entirely at the option of the ratepayers of local districts to adopt the system, and provision is made for a return to the old system of rating, if desired, after three years' experience of the new one. The poll is to be taken in the same manner as in the case of a proposal to raise a loan in the district under the Local Bodies' Loans Act, 1926. Under the original Act it was necessary for a minimum number of one-third of the ratepayers to vote, and a majority of their votes carried the proposal. Now the question of adoption or otherwise is decided by a bare majority of the valid votes recorded, irrespective of the number of ratepayers who have voted.

A rescinding proposal can be carried at a poll by the same means as one for adoption, but not until after three years have elapsed; and, vice versa, rejection of a proposal bars its being brought forward for a similar period.

The valuation roll is supplied to the local authority by the Valuer-General under the provisions of the Valuation of Land Act, 1925, and the definitions of “capital value,” “improvements,” “unimproved value,” and “value of improvements” set out in that Act, as subsequently amended, apply also to rating on unimproved value. Provision is made for adjustment of rating-powers given under other Acts by fixing equivalents. Thus, as already indicated, a rate of 1s. in the pound on the annual value is to be considered equal to 3/4d. in the pound on the capital value.

It should be noted that some local authorities automatically adopt rating on unimproved value. For example, a town district, borough, or another county formed from part of a county, automatically rates on the system in force in the county at the time of the constitution of the new district; also two boroughs amalgamating adopt the system in force in the district with the greater population, unless their Councils agree to the contrary.

A table is given of systems in force during the financial year 1937-38:—

System of Hating.Total.
Unimproved Value.Capital Value.Annual Value.Acreage Basis.On Stock.

* Includes Chatham Islands County, for which import and export, dues are charged in lieu of rates on land.

† Includes one system based on water consumption.

Counties5866......125*
Boroughs801826....124
Town districts30285....63
Road districts313......16
River districts1322..7..42
Land-drainage districts3119..1..51
Electric-power districts1327......40
Water-supply districts..23......
Urban drainage districts..21....3
Tramway district1......1..
Rabbit districts26..55669
    Totals23020432636537

Although the figures referred to indicate that the number of local authorities rating on the unimproved value during 1937-38 was 43 per cent. of the total, yet on a population basis the figures reveal that 58 per cent. of the people of the Dominion are in districts so rating. The position in regard to the four major classes of local authorities at 1st April, 1938 (i.e., the beginning of the 1938-39 financial year), was as follows:—

Rating on Unimproved Value.Total for Dominion.*Ratio of Unimproved Value to Total.
No.Population.No.Population.No.Population.

* Exclusive of migratory, &c., population of 5,904.

† Includes the four counties, Eden, Taupo, Sounds, and Fiord, in which the Counties Act is not wholly in force.

     Per Cent.Per Cent.
Counties (excluding all town districts)58296,640129644,300*44.9646.04
Boroughs81616,890128917,80063.2867.21
Town districts (independent)1716,4503528,36048.5758.71
Town districts (dependent)124,220238,35052.1750.54

For the purposes of the foregoing tables a district is deemed to rate on the unimproved value where the general rate is levied on an unimproved-value basis. In a number of instances, in particular of boroughs, certain of the subsidiary rates are levied on other systems.

TOWN-PLANNING.

Town-planning legislation of 1926 and 1929 provides for the making and enforcement of town, extra-urban, and regional planning schemes. Every town-planning scheme is required to have for its general purpose the development of the city or borough to which it relates (including the reconstruction of an area already built on) in such a way as to promote its healthfulness, amenity, convenience, and advancement. Extra-urban schemes have like objects in regard to their areas.

Regional planning schemes must be preceded by a comprehensive survey of the natural resources of the areas concerned, and of the present and potential uses and values of all lands in relation to public utilities or amenities. Regional schemes envisage the conservation and economic development of natural resources by classification of lands according to their best uses and by the co-ordination of all such public improvements, utilities, services, and amenities as are not limited to the territory of any one local authority.

The principal Act constitutes a Director of Town-planning and a representative Town-planning Board under the Minister of Internal Affairs as chairman. The Government has since decided not to have a Director of Town-planning, but has followed the English precedent of having a Town-planning Officer directly attached to the Government Department controlling town-planning—in this case the Department of Internal Affairs. The Town-planning Board continues to operate.

All cities or boroughs with a population of one thousand or over at the census of 1926, together with certain road districts, were required to prepare town-planning schemes and submit them to the Town-planning Board by the end of 1936. Other boroughs may be added by Order in Council, and smaller boroughs may submit schemes voluntarily. Provision is made for a combined scheme by two or more adjoining local authorities.

Counties, inclusive of smaller boroughs and of town districts, comprise rural areas for the purpose of extra-urban schemes. The authority responsible for the scheme is the County Council, or where more than one local authority is concerned a representative committee approved by the Board.

When a town or extra-urban scheme has been approved by the Board it is the duty of the local authorities having jurisdiction to enforce the requirements of the scheme in respect of all new works of any description. The provisions of a regional planning scheme are not obligatory, but are intended to serve as a guide to the local authorities within the region.

One of the most important divisions of the town-planning legislation deals with betterment, which is defined as the increase in property values attributable to the approval or carrying-out of a town-planning scheme. Briefly, one-half of betterment increase in the value of rateable property constitutes a debt payable to the local authority by the owner of the land. Within prescribed limits, moneys from this source are to be applied, inter alia, to compensate persons whose lands are acquired for town- or extra-urban-planning schemes, or who are otherwise injuriously affected.

HOUSING.

The Housing Survey Act, 1935, was passed in October of that year, its purpose being to ascertain the extent to which the existing housing-accommodation in the Dominion falls short of reasonable requirements. The Act applied to every borough (or city) or town district whose population was estimated by the Government Statistician to be not less than one thousand at 1st April, 1934, to certain road districts', and to any other local authority prescribed by Order in Council.

Such local authorities were required to make a housing survey, and were given for this purpose power to enter and inspect dwellings, or to require occupiers to furnish a written statement within fourteen days of notice being given them. The results of such housing survey are to be reported to the Minister of Finance. In default of the local authority conducting a survey, it may be carried out by the Minister at the expense of the local authority.

The field covered by the survey is in respect of each dwelling:—

  1. Number and size of rooms.

  2. Physical condition of dwelling and appurtenances.

  3. Age, sex, and number of occupants.

  4. Owners and occupiers, and rentals of rented houses.

  5. Extent of overcrowding.

  6. Population densities of residential areas.

  7. Any other particulars prescribed by regulations.

The number of local authorities upon which an obligation to conduct a survey was placed was 119, and by 31st March, 1939, 115 authorities had complied with the requirements of the Act. An analysis of the results of the survey will be found in the section of this Year-Book dealing with “Building and Construction.”

Under section 28 of the State Advances Corporation Act, 1936, the Corporation is empowered to make loans to local authorities for the acquisition of land for the erection of workers' dwellings, or for any other purpose in relation to workers' dwellings.

As part of the Government's housing plans, finance has been made available to local authorities at an interest-rate of 3 per cent. for the purpose of erecting municipally-owned workers' dwellings for letting at low rentals. Applications by local authorities for loans under this arrangement must be approved by the Local Bodies' Loans Board and the Minister of Finance. During the year ended 31st March, 1939, twenty-three loans totalling £203,000 were granted, and total advances outstanding at that date were £302,174.

By the Rural Housing Act, 1939, County Councils are empowered to advance moneys to a farmer for the purpose of enabling him to provide a dwelling for his own use or for the use of any farm worker who is principally employed by him.

RECEIPTS.

The sources from which the various classes of local authorities secure the moneys necessary to exercise their functions vary greatly, according to the nature of the statutory duties of the local authority concerned. Generally, however, receipts fall under one of four main classes—viz., rates; revenue from public utilities, licenses, rents, &c.; revenue receipts from the General Government; and receipts such as loan-money and special grants and subsidies from the Government which cannot properly be regarded as revenue.

The receipts of local authorities, divided into the various groups shown above, are given for each of the last ten years. As stated earlier, the figures quoted here and elsewhere in this section do not cover the operations of Hospital Boards.

Year ended 31st March,Revenue fromTotal Revenue.Receipts not Revenue.Total Receipts.
Rates.Public Utilities, Licenses, Rents, &c.Government.
 ££££££
19295,844,4959,190,655392,92115,428,0716,042,00721,470,078
19306,010,98710,309,785436,94616,757,7185,495,42722,253,145
19315,637,25410,201,076426,31516,264,6454,432,95620,697,601
19325,511,8189,054,187628,06415,194,0694,374,25119,568,320
19335,237,6888,462,628450,65714,150,9734,433,29418,584,267
19345,541,2558,245,173443,23914,229,6673,821,77918,051,446
19355,511,4428,608,064559,22314,678,7293,943,48818,622,217
19365,585,8558,976,035576,51315,138,4034,348,53419,486,937
19375,994,3539,524,939454,49815,973,7904,252,80320,226,593
19386,541,35410,542,197463,09617,546,6474,389,62021,936,267

Local authorities received by way of rates in the financial year 1937-38 a total amount of £6,541,354, and the sum of £551,970 was raised by licenses and £141,214 by other taxes, making £7,234,538 altogether from taxation, which sum is equivalent to £4 10s. 9d. per head of the mean population (including Maoris).

During 1937-38 rates formed 37.3 per cent. of the revenue proper; public utilities, licenses, rents, and other sources yielded 60.1 per cent.; and 2.6 per cent. came from the General Government.

Of the revenue proper of counties, which amounted to £2,917,478 in 1937-38, no less a sum than £1,938,363, or 66 per cent., was raised by way of rates. Town districts, road districts, river districts, land-drainage districts, and urban drainage districts also rely on taxation for the greater part of their income. In the case of boroughs, electric-power districts, and Harbour Boards, on the other hand, rates supply a considerably smaller proportion of the total revenue. During 1937-38 this source of income accounted for 46 per cent. of the total revenue of boroughs, the corresponding proportion for Harbour Boards and electric-power districts being 12 per cent. and ¼ per cent. respectively.

LOCAL AUTHORITIES.—RECEIPTS, 1937-38.

Revenue fromReceipts not Revenue.Total Receipts.
Rates.Public Utilities, Licenses, Rents, &c.Government.
 £££££
Counties1,938,363767,527211,5881,550,6384,468,116
Boroughs3,787,5064,317,302207,7171,668,9169,981,441
Town districts101,85649,7074,67880,729236,970
Road districts55,7806,2962,57716,56281,215
River districts73,21122,990..133,529229,730
Land-drainage districts61,7001,661..19,18182,542
Electric-power districts5,9602,580,724..434,8053,021,489
Water-supply districts3,19979..2613,539
Urban drainage districts244,7644,209..95,161344,134
Urban transport districts18,200860,853..69,665948,718
Railway district..16,530....16,530
Gas-lighting district..56,906..18,10975,015
Rabbit districts30,0458,08928,3971,83668,367
Fire districts..189,8174,20259,220253,239
Harbour Boards220,7701,659,5073,937241,0082,125,222
    Totals6,541,35410,542,197463,0964,389,62021,936,267

Of the total rates (£6,541,354) collected during 1937-38, general rates levied brought in £3,151,077, and other rates (including penalty on overdue rates) £3,390,277. Of the latter, £2,409,407 was received by boroughs and £761,969 by counties. The whole of the rates collected by Harbour Boards (£220,770) were classed as general rates.

It is of interest to note that for the year 1937-38 the total of all rates collected by counties was equal to £6.31 per £1,000 of rateable capital value (land and improvements). In boroughs it was £13.80, in independent town districts £15.83, and in town districts forming parts of counties £7.01 (excluding rates levied by County Councils).

Sections in successive Finance Acts from 1930 onwards have authorized the remission or postponement in whole or in part of the 10-per-cent. penalty on unpaid rates.

PUBLIC UTILITIES, LICENSES, RENTS, ETC.

Rates are not the only form of local taxation. Local authorities derive a certain amount of revenue from publicans' licenses, heavy-traffic fees, motor-drivers' licenses, drivers' (other vehicles) licenses, auctioneers' and hawkers' licenses, abattoir fees, building permits, dog-taxes, pound-taxes, tolls, &c. Sources of revenue not classed as taxation are—rents, fines and penalties, market dues, sales of material, sales of light and power from gasworks and electric-supply works, tramway and omnibus receipts, interest on deposits, wharf dues, &c.

Of a total revenue of £4,317,302 accruing to boroughs under this head in 1937-38, £780,627 represented tramway and omnibus receipts, £1,561,649 sales of electric light and power, and £414,499 sales of gas.

RECEIPTS FROM GENERAL GOVERNMENT.

A statement of revenue receipts by local authorities from the Government during the last five financial years is given in the next table:—

Year ended 31st March,
1934.1935.1936.1937.1938.
 £££££
Rates on Crown and Native lands1,0522,527641321362
One-third of receipts from land sold on deferred payment or held on perpetual lease5,9717,9475,2026,6743,665
One-fourth of rents from small grazing-runs5671,0041,9091,089845
Timber and flax royalties4,3756,51310,19616,19818,847
Goldfields revenue and gold duty Subsidies on rates—25,44729,53531,53726,98225,996
Ordinary171,078192,411201,624219,684231,864
Special 12½-per-cent. subsidy on rural lands..178,227186,177....
Petrol-tax100,794103,088116,168155,104163,874
Stamp duty on interest104,790........
Fees and fines6,0905,6395,7718,6655,229
Other receipts23,07532,33217,28819,78112,414
    Totals, Revenue Account443,239559,223576,513454,498463,096

Section 45 of the Finance Act, 1931 (No. 4), as amended by section 39 of the Finance Act, 1932, provided for a subsidy to County Councils and Road Boards of 12½ per cent. of the average annual amount of rates collected during the three years ending March, 1930. This subsidy, which was derived from the Main Highways Account, was in general to be applied as a partial refund or rebate of rates paid or due in respect of the year 1931-32. The Finance Act (No. 3), 1934, authorized payment out of the Main Highways Account, not later than the 31st March, 1935, of a similar subsidy of 12½ per cent. of rates made and levied. This applied to farm lands in counties and road districts, and also to urban farm lands within the meaning of the Urban Farm Land Rating Act, 1932. The subsidy was to be devoted to a refund or rebate of 12½ per cent. to ratepayers concerned. The Finance Act, 1935, made similar provision for the 1935-36 year.

Reductions of 10 per cent. from 1st April, 1931, and a further 10 per cent. (on the reduced amount) from 1st April, 1932, were made in the rates of grants or subsidies from the Consolidated Fund to various classes of local authorities by section 7 of the Finance Act, 1931, and section 8 of the National Expenditure Adjustment Act, 1932. These reductions were restored by a section in the Finance Act, 1936, in respect of rates levied for the year ended 31st March, 1936, and subsequent years

In addition to the revenue receipts shown above (£463,096 in 1937-38), there are special grants from the General Government (£2,357,478 in 1937-38) for various local works of a public or semi-public character, including from 1930-31 subsidies from the Employment Promotion Fund, the amount in 1937-38 being £1,247,246. Advances from the Main Highways Account amounted to £20,319. Of the foregoing amounts totalling £2,840,893, counties received £1,556,926 and boroughs £949,461.

EXPENDITURE.

The expenditure of local authorities during each of the last ten years has been as follows:—

Year ended 31st March,Public Works and Utilities (Construction and Maintenance).Hospital Board Levies.Administration.Interest on Loans and Overdraft.Other.*Total Expenditure.
* Including payments for amortization of debt, the amount for 1937-38 being £1,503,972.
 ££££££
192913,298,839677,085964,0983,641,5492,718,45321,300,024
193014,486,488685,1341,053,6133,895,6321,940,22122,061,088
193114,402,327699,5841,029,0174,021,2332,022,36322,174,524
193212,694,508561,905989,3663,963,3341,878,26820,087,381
193311,584,311574,960907,6593,877,3401,940,90318,885,173
193410,754,446592,092879,2763,476,7672,035,21117,737,792
193511,656,773601,448875,3173,362,0132,249,34018,744,891
193612,250,661622,512998,9983,243,3862,221,68519,337,242
193713,164,376717,0841,001,5043,120,6522,219,09920,222,715
193814,672,484821,6971,034,6463,031,7932,490,52722,051,147

The decline following 1930-31 was achieved in spite of the inclusion in payments for subsequent years of expenditure out of grants from the Employment Promotion Fund. Included in “other” payments for 1937-38 is an amount of £248,582 for exchange, the bulk of which related to interest payments.

The expenditure of the various classes of local authorities during 1937-38 is shown below:—

Public Works and Utilities (Construction and Maintenance).Hospital Hoard Levies.Administration.Interest on Loans and Overdraft.Amortization of Debt,Total Expenditure.*

* Including other items.

† Included in “Construction and Maintenance.”

 ££££££
Counties3,067,175404,657314,903306,131180,5874,356,350
Boroughs6,777,215404,424420,2311,384,812655,79610,160,443
Town districts155,0269,51419,85828,43215,899234,067
Road districts50,1363,1026,61211,8013,85177,770
River districts188,456..15,51921,67511,194237,415
Land - drainage districts52,862..6,74919,0869,54688,865
Electric - power districts2,058,338..518,042253,7122,963,120
Water - supply districts2,885..5934323544,264
Urban drainage districts118,575..19,947123,09255,968336,947
Urban transport districts619,793..40,407147,81049,151907,342
Railway district8,599..2,4262651,50013,060
Gas-lighting district70,612..3,7865,8492,79983,504
Rabbit districts56,767..8,03534734266,860
Fire districts201,924..6,63513,42016,749250,207
Harbour Boards1,244,121..168,945450,599246,5242,270,933
    Totals14,672,484821,6971,034,6463,031,7931,503,97222,051,147

The table following gives, in respect of boroughs only, the expenditure on new works out of loan-money during the last ten years, classified under various heads:—

Year ended 31st March,Roads, Streets, and Bridges.Drainage and Sanitation.Waterworks.Houses, Workers' Dwellings,Parks, Gardens, Town Halls, Libraries, Art Galleries, and Places of Public Recreation.Lighting and Power Services.Other Public Works.Totals.
* Includes expenditure on aerodromes (£33,775), and traffic control (£31,595).
 ££££££££
1929649,081236,068202,74432,13245,020259,79665,7651,490,606
1930715,818289,430154,4343,63150,085304,86078,1231,596,381
1931475,644271,906145,5552,82933,685308,58998,8851,337,093
1932359,486222,72785,2244,71917,990134,05675,048899,250
1933133,417164,08022,3341,2432,0708,01049,540380,694
193476,862105,72937,062102,44621621,054243,379
193579,205126,972144,10635010,384136,421397,439
1936123,314109,490201,8556,89038,12394910,095490,716
1937215,76089,269142,9702,00553,2702223,444526,740
1938226,127165,62378,009121,38833,8509,735109,303*744,035

ASSETS AND LIABILITIES.

The assets and liabilities of local authorities at the end of the financial year 1937-38 are as shown in the table following. Further details are given in the section relating to “Wealth.”

Assets.Liabilities.
Cash Assets.Other Assets (as estimated in published Balance-sheets).Debentures and other Securities: Net Indebtedness.Inscribed Stock, i.e., Loans from Treasury under Local Bodies Acts.Other Liabilities (Bank Overdrafts, Temporary Loans, Outstanding Accounts, &c.).Total Net Liabilities
 ££££££
Counties1,479,5111,981,6255,719,896782,060382,1536,884,109
Boroughs4,258,67231,147,91126,403,273694,538937,09928,034,910
Town districts89,235503,061570,5494,90730,351605,807
Road districts25,727155,592253,1414,05512,928270,124
River districts77,962222,353453,28337,41351,872542,568
Land - drainage districts48,04863,085314,21749,95219,102383,271
Electric - power districts3,377,31214,105,91710,268,421..721,36410,989,785
Water-supply districts6882,6588,8211,01344710,281
Urban drainage districts115,9651,202,5242,478,224..36,9052,515,129
Urban transport districts46,9723,651,6432,088,583..98,4092,186,992
Railway district4,243179,763....7,5017,501
Gas-lighting district14,511206,386122,045..27,824149,869
Rabbit districts46,18417,5253,228..8,41711,645
Fire districts39,064724,609301,064..55,144356,208
Harbour Boards1,736,98615,627,4618,010,696..307,5658,318,261
  Totals11,361,08069,792,11356,995,4411,573,9382,697,08161,266,460

The figures shown in the column “Other assets” are taken from the respective balance-sheets, but are far from complete, inasmuch as no valuations are made for certain items. This applies particularly to roads, which, although representing considerable wealth to the community, do not figure at all in the assets. In this connection it may be mentioned that the greater part of the expenditure of counties and road districts goes in this direction, while in the case of boroughs no less than 30 per cent. of the loan-money expenditure during the last five years was on roads, streets, and bridges. Assets of all local authorities as returned for the last ten years are as under:—

As at 31st March,Cash Assets.Other Assets (estimated).As at 31st March,Cash Assets.Other Assets (estimated).
 ££ ££
192910,443,79462,550,2351,93411,176,56267,118,852
193012,859,67664,509,8801,93511,875,26867,324,158
193112,194,41766,504,8011,93612,144,80467,168,849
193212,820,72467,811,8081,93711,508,74466,688,860
193310,646,33667,323,2981,93811,361,08069,792,113

Cash assets are made up chiefly of loan balances, reserve investments, and cash in hand. Sinking funds, which amounted to £9,491,572 at 31st March, 1938, do not appear in the foregoing table, but are shown as a deduction from the gross loan indebtedness of local authorities. Other assets are comprised mainly of fixed assets and stocks of stores and materials.

Boroughs are responsible for 44 per cent. of the total assets, Harbour Boards for 21 per cent., and electric-power districts for 22 per cent. Counties show the comparatively low percentage of 4, but this is due to the fact that practically the whole of county expenditure goes on roads, for which no valuation is available.

INDEBTEDNESS.

Prior to 1935-36 it was customary to classify the local-authority debt into loans from the State Advances Corporation, loans from the Main Highways Account, inscribed debt—i.e., inscribed stock exchanged for debentures under the Roads and Bridges Construction Act, 1882—and non-governmental loans. The last-mentioned comprise by far the greater part of the debt, and consist mainly of debentures issued to the public. Owing, however, to the operation of the Local Authorities Interest Reduction and Loans Conversion Act, 1932-33, a considerable number of State Advances loans have lost their identity in being included in conversion schemes with non-governmental loans, so that it is no longer possible to show them separately. Loans from the Main Highways Account being comparatively insignificant in total (approximately £100,000), it is felt that no useful purpose is served by a separate classification. Commencing with 1935-36, therefore, the debt appears under two headings only: (1) Debentures and other Securities, and (2) Inscribed Debt. The reason for retaining the identity of inscribed debt is that it is fundamentally different from the usual type of loan. Originating in the early days of the present system of local government, it arose out of a recognition by the General Government that the primary functions of local authorities, such as road-making, were in part of national importance, and money was advanced on very favourable terms. The loans were for long terms at low interest-rates, with no provision for repayment, the position being that as soon as a local authority met its final instalment of interest the loan was ipso facto extinguished. Loans of this nature, therefore, are vastly different from what is usually connoted by the term.

The total gross debt of local authorities at 31st March, 1938, was £68,060,951, made up of: Debentures and other securities, £66,487,013; and inscribed debt, £1,573,938. The net indebtedness (i.e., after deducting accumulated sinking funds from debentures and other securities, and making an actuarial estimate of the liability for inscribed debt on an assumed table-loan basis) was £57,404,727.

It is necessary to observe that figures of local-authority debt given herein are not quoted in terms of New Zealand currency, except in such instances as refer solely to debt held in New Zealand. Debt held in Australia is expressed in Australian currency, and debt held in the United Kingdom is expressed in sterling. The total is ascertained by adding the three currencies together without conversion to a common basis. Australian currency was at the end of the 1937-38 financial year at a very slight depreciation in comparison with New Zealand currency, and the rate for sterling was approximately £(N.Z.)124½ = £100 London. As, however, the question of immediate repayment is not involved, little gain would be achieved by expressing the figures in New Zealand currency converted at present rates of exchange.

Since 1913-14 the gross debt has increased by £44,287,522. Up to 1918-19 the increase was gradual, being on an average about £850,000 per annum. The following eight years, mainly because of the vigorous prosecution of electric-power and road works, marked a period of intensive borrowing, during which the debt increased by £35,937,297, an amount equal to roughly half of the present total, and an average of £4,500,000 per annum. Since the passing of the Local Government Loans Board Act, 1926, borrowing has been on a much lower scale. During the first four years of its operation (April, 1927, to March, 1931), the net increase in the debt aggregated £8,673,799, a yearly average of £2,168,450 or less than half the average increase of the previous eight years. Since 1930-31 there has been an almost progressive decline, the total decrease to the end of 1937-38 being £4,625,085. Part of the decrease since 1932-33 has been due to conversion operations, in which accumulated sinking funds were utilized for repayment purposes, and it should be noted that on the 13th October, 1936, the whole of the debt of the Southland Electric-power Board was taken over by the General Government. The debt of this local authority at 31st March, 1936, was: Gross, £1,638,134; net (i.e., less accumulated sinking funds), £1,237,307.

The following summary of the operations of the Local Government Loans Board since taking office shows concisely the trend of local authority borrowing during recent years. Hospital Boards are included in this instance.

Year.Total Applications.Sanctioned.
New Works.Redemption Loans.
 £££
1927-284,636,6493,212,1851,048,796
1928-296,007,0453,866,551809,221
1929-304,218,7303,563,842967,875
1930-313,840,5051,766,256838,901
1931-323,412,365781,1952,483,810
1932-332,951,645406,5212,348,231
1933-343,884,132917,5602,744,245
1934-353,859,3631,585,4402,379,955
1935-364,061,0761,550,6902,051,790
1936-372,804,3082,411,358430,313
1937-383,362,1733,098,445122,758
1938-395,138,9173,013,8721,188,525
Totals, 12 years48,176,90826,173,91517,414,420

The difference (£4,588,573) between the total amount applied for and the amount sanctioned represents applications referred back or declined by the Board during the period in question.

The outstanding loans of local authorities at the end of each of the last ten years are shown in the following table:—

At 31st March,Debentures and other Securities.*Inscribed Debt.Total Debt.
Gross Debt.Net Debt (i.e., less accumulated Sinking Funds).Gross Debt.Present Indebtedness (actuarially computed).Gross Debt.Net Debt.
* Including loans from State Advances Corporation and from Main Highways Account.
 ££££££
192967,216,53159,185,4372,078,088886,68669,294,61960,072,123
193069,180,06960,767,0142,027,470828,72671,207,53961,595,740
193170,717,00961,393,5481,969,027772,65172,686,03662,166,199
193270,477,71760,838,7441,924,565716,16272,402,28261,554,906
193370,608,35460,239,8631,867,702662,76972,476,05660,902,632
193470,148,17759,245,8501,821,210608,88671,969,38759,854,736
193569,504,65958,995,2541,740,799556,59671,215,45859,551,850
193668,746,07953,732,4361,654,097505,68170,400,17659,238,117
193766,950,37857,463,3701,609,372457,51468,559,75057,920,884
193866,487,01356,995,4411,573,938409,28668,060,95157,404,727

In addition to the scheme of State Advances, there exists a system whereby the State guarantee to the payment of interest and principal in the event of default by the local authority may be obtained by the borrowing authority. The amount outstanding in respect of local-authority loans guaranteed by the State aggregated £748,365 at the 31st March, 1938, sinking funds in respect of these loans totalling £405,014. Included in these figures is one loan (£1,500; sinking fund, £892) to a Hospital Board.

Of the total net indebtedness of £57,404,727 at the 31st March, 1938, boroughs were responsible for £26,584,300, which represents 9.68 per cent. of their rateable capital value. In the case of counties, which have a much less per caput expenditure on public works, the percentage is only 1.93.

The following table shows, per head of the population, the gross debt of local authorities and the annual charge thereon for the last ten years.

As at 3lst March,Population.Gross Debt.Annual Loan Charge.
Amount.Rate per Head.Amount.Rate per Head.
  ££s.d.££s.d.
19291,471,11069,294,61947214,479,1803011
19301,489,20371,207,539471644,682,1813211
19311,511,70072,686,03648184,828,7933311
19321,525,54572,402,28247924,905,467348
19331,538,02872,476,05647254,919,221340
19341,550,12571,969,38746874,449,7772178
19351,560,99271,245,4584512104,421,5062168
19361,573,81070,400,176441484,395,75821510
19371,587,21168,559,750433114,446,7062160
19381,604,47968,060,95142854,457,8742157

The debt of most of the principal classes of local authorities has shown a decrease during the period covered by the following table, the decrease in the case of electric-power districts being confined to the last two years. The rise in “other districts” during the year ended 31st March, 1930, was mainly due to the transfer of transport loans from the Auckland City Council to the Auckland Transport Board on the constitution of the latter. It should be noted that the debt of electric-power districts shown in the following table docs not represent the complete local-authority debt on account of electric power, since a considerable portion of the borough debt, and a small part of the county and town district debt also, was incurred for that purpose. The debt of “other districts” at 31st March, 1938, was mainly that of urban transport districts (£3,105,813) and urban drainage districts (£2,744,939).

As at 31st March,Counties.Boroughs.Town Districts.Road Districts.Electric-power Districts.Harbour Boards.Other Districts.Totals.
 ££££££££
19297,483,63133,012,519904,780343,39011,986,70710,774,1394,789,45369,294,619
19307,624,39532,276,814810,178343,98012,636,35110,468,8817,046,94071,207,539
19317,699,17532,894,635835,205274,62513,011,52910,517,3967,453,47172,686,036
19327,719,43132,445,623820,219288,37513,121,96010,549,4937,457,18172,402,282
19337,610,69832,534,350820,917286,43513,031,93010,620,4427,571,28472,476,056
19347,523,01732,094,214810,820287,36313,213,07910,496,5337,544,36171,969,387
19357,306,48131,714,600812,996286,59613,399,05310,524,7887,200,94471,245,458
19367,065,75531,480,305704,561277,65313,484,98810,218,6727,168,24270,400,176
19376,932,98831,202,208693,471276,26612,026,68710,152,1287,276,00268,559,750
19386,864,85431,236,969631,488271,02011,890,0319,894,1157,272,47468,060,951

DOMICILE OF DEBT.

The loans outstanding, other than inscribed debt, at the end of the financial year 1937-38, are shown below, classified according to domicile, and also according to rate of interest. Reference should be made to observations on pages 664-665 in regard to the currencies in which local-authority debts are expressed.

Rate of Interest Per Cent.Domiciled in New Zealand.Domiciled in United Kingdom.Domiciled in Australia.Totals.
 ££££
Free of interest33,035....33,035
3129,627200,000..329,627
798,867....798,867
3⅜41,866....41,866
5,463,974....5,463,974
3⅝3,000....3,000
416,188....416,188
3⅚..2,500..2,500
3⅞115,961....115,961
4781,059389,300..1,170,359
4⅛545,672....545,672
40,699,099160,500575,40041,434,999
4⅖625,917..12,596638,513
424,8851,698,22510,0172,133,127
4⅗425,147..15,000440,147
4 7/10500....500
4⅘535,190....535,190
589,1435,710,30018,0005,817,443
5⅕1,000....1,000
..1,945,00052,0001,997,000
..1,912,000464,0082,376,008
5⅝....25,00025,000
5 11/16....130,000130,000
6,0009,700610,462626,162
6..610,00083,475693,475
..691,40026,000717,400
Totals51,136,13013,328,9252,021,95866,487,013

The average rates work out as follows: New Zealand, 4.15 per cent.; United Kingdom, 5.10 per cent.; Australia, 5.24 per cent.: total, 4.37 per cent.

The interest-rates quoted are those applicable to the amount of debt outstanding. They have not been adjusted to the prices at which the respective loans were raised—e.g., where a loan was issued below par the rate of interest on the sum actually received (omitting the question of flotation expenses) would be higher than the rate shown above.

During 1937-38 the amount domiciled in New Zealand increased by £211,386, that in the United Kingdom decreased by £531,400, and that in Australia decreased by £143,342. The New Zealand domiciled proportion of the total has increased continuously for several years past, and at 31st March, 1938, represented 77 per cent. of the total, the United Kingdom's share being 20 per cent., and Australia's 3 per cent.

A five-years summary of the domicile of loans outstanding, other than inscribed debt, is given hereunder.

At 31st March,Amount.Percentage of Total.
London.Australia.New Zealand.London.Australia.New Zealand.
 £££Per Cent.Per Cent.Per Cent.
193416,748,2254,197,90649,202,04623.885.9870.14
193516,088,5252,564,69350,851,44123.153.6973.16
193615,947,9252,200,08850,598,06623.203.2073.60
193713,860,3252,165,30950,924,74420.703.2476.06
193813,328,9252,021,95851,136,13020.053.0476.91

DEBT CHARGES.

Particulars of the annual loan charge of local authorities during each of the last ten years are as follows:—

At 31st March,On Debentures and other Securities.On Inscribed Debt.Total.
 £££
19294,403,25175,9294,479,180
19304,608,43773,7444,682,181
19314,757,48171,3124,828,793
19324,835,98269,4854,905,467
19334,852,07267,1494,919,221
19344,384,55765,2204,449,777
19354,359,55161,9554,421,506
19364,337,36058,3984,395,758
19374,390,02556,6814,446,706
19384,402,45055,4244,457,874

Amortization charges are included in the above, the amount payable during 1938-39 on debt other than inscribed debt at 31st March, 1938, being £1,493,372. Interest charges payable during 1938-39 on the debt outstanding at 31st March, 1938, aggregated £2,909,078, payable, according to countries of domicile, as follows: New Zealand, £2,123,382; Australia, £105,900; United Kingdom, £679,796 (plus exchange).

INTEREST REDUCTION AND LOANS CONVERSION.

As part of the interest-reduction policy of the Government, Part IV of the National Expenditure Adjustment Act, passed on the 10th May, 1932, imposed, inter alia, a stamp duty of 10 per cent. on interest derived from local authority debentures or other securities. All local-authority interest coupons or warrants presented in New Zealand for payment on or after the 14th May, 1932, were so chargeable. Interest payments made (as of express right) out of New Zealand were exempted from charge. After deduction of 5 per cent. of the proceeds as administrative charges the not amount of stamp duty collected was returned to the respective local authorities. A hardship clause permitted the Minister of Finance to refund stamp duty where the total annual income of the payer was not in excess of £100. An additional provision allowed payment of stamp duty of this nature to be treated as a special exemption under the Land and Income Tax Act, 1923. The stamp duty was abolished, in so far as it affected interest accruing after 31st March, 1933, by the legislation next mentioned.

A further step towards reduction of interest on local authority debt was taken by the Local Authorities Interest Reduction and Loans Conversion Act, 1932-33, and its amendments of 1933 and 1934. This statute, passed on the 9th March, 1933, followed somewhat similar legislation dealing with the public debt. The principal section of this Act imposed a reduction—by 20 per cent., or to a minimum of 4¼ per cent. per annum—in the rate of interest payable in New Zealand on local authorities' securities bearing interest at a rate in excess of 4¼ per cent. Loans domiciled outside New Zealand were again exempted, and rules laid down for the determination of domicile.

The Act also empowered local authorities to draw up individual conversion schemes whereby existing securities could be converted to new securities at a lower and uniform rate of interest. Any such proposals were required to be submitted to the Local Government Loans Board and to receive the consent of the Governor-General given by Order in Council. Where any such conversion scheme was undertaken, and any holder of existing securities signified his dissent from their conversion as prescribed in the Order in Council, the rate of interest in his case was reduced to 33 1/3 per cent. below the rate originally prescribed by the securities. Further sections of the Act limit the rate of interest for future loans, empower relief measures in certain cases of hardship, and create necessary machinery for implementing its provisions.

The provisions of the Local Authorities Interest Reduction and Loans Conversion Act, 1932-33, ceased to operate on 31st December, 1935, at which date 90 per cent. of the debt convertible at the 31st March, 1933, had been converted, but provision is contained in section 20 of the Finance Act (No. 2), 1935, for voluntary conversion to be carried out under the provisions of the principal Act. and applications for conversion are still being received.

The Local Authorities Interest Reduction and Loans Conversion Amendment Act, 1934, limited future borrowings to an interest-rate not exceeding 3½ per cent., with provision, however, for varying the rate by Order in Council under the Local Government Loans Board Act, 1926. In May, 1939, the maximum was raised to 4½ per cent.

LOAN MATURITIES.

The following table classifies loans (other than inscribed debt) according to years of maturity and countries of domicile:—

Years of Maturity (ended 31st December).New Zealand.United Kingdom.Australia.Total.
 ££££
Prior to and during 19403,208,4923,138,10025,6286,372,220
1941-456,335,5433,417,200365,94210,118,685
1946-509,276,9802,059,525526,89911,863,404
1951-5510,102,788931,800109,62711,144,215
1956-6011,719,6703,080,300126,01714,925,987
1961-658,450,306702,000633,8459,786,151
1966-701,762,857....1,762,857
1971-74271,804..234,000505,804
Unspecified7,690....7,690
    Totals51,136,13013,328,9252,021,95866,487,013

Table loans account for £13,190,787 of the above total, loans in which a number of debentures are redeemed each year for £31,941,266, and loans with one fixed maturity date for £21,354,960. In the case of table loans the year of maturity is taken as that in which the final instalment is payable. Practically the whole of the debt domiciled abroad is composed of loans with one fixed date of maturity.

Chapter 27. SECTION XXVII.—VALUATION OF LAND.

SYSTEM AND PROCEDURE.

THE existing law relating to the valuation of land in New Zealand is contained in the Valuation of Land Act, 1925 (a consolidation of previous legislation), and its amendments of 1926, 1927, 1932, and 1933. A brief historical account appears in the 1932 and earlier Year-Books.

The work of the Valuation Department is directed by the Valuer-General. The actual work of valuation is done by District Valuers and assistant valuers. The duty of a valuer is to examine each property and to estimate to the best of his ability (1) the unimproved value of the land contained therein, (2) the value of the buildings (if any) or other improvements (if any) upon such land, and (3) the “capital value” of the property. The Valuation of Land Amendment Act, 1927, provides that in boroughs rating on the unimproved value the unimproved value only or the value of improvements only may be ascertained, the capital value being adjusted accordingly.

Under the New Zealand law the increased value attaching to any piece of land which is due to the successful working of other lands in the district, or to State or local authority expenditure on public works, or to the general prosperity and development of the country, forms portion of the “unimproved value.” Any increased value, however, which is represented by the improvements effected by the individual possessor, either past or present, does not form part of the “unimproved value.”

Valuers are enjoined not to strain after high values, nor to accept special prices paid for land under exceptional circumstances, but to determine the value neither above nor below the fair soiling-value in view of the many and diverse purposes for which the values are used. Land containing or supposed to contain oil, coal, or other mineral deposits is valued as for the surface use only.

THE VALUATION ROLL.

The Valuation of Land Act directs the preparation of a valuation roll for each district, setting forth in respect of each separate property the following particulars:—

  1. The name of the owner of the land and the nature of his estate or interest therein, together with the name of the beneficial owner in the case of land held in trust:

  2. The name of the occupier within the meaning of the Rating Act:

  3. The situation, description, and area of the land:

  4. The nature and value of the improvements on the land:

  5. The unimproved value of the land:

  6. The capital value of the land:

  7. Such other particulars as are prescribed.

The district valuation roll so long as it continues in force is by law the roll from which the valuation roll of every local authority rating on the capital or on the unimproved value is framed.

In December, 1932, the Urban Farm Land Rating Act (amended in 1933 and 1935) was passed with the object of giving some rating relief to farm lands subject to rates levied by borough (or city) councils, independent town boards, and certain road boards. The Act provides for the preparation of farm-land rolls, which are deemed to be part of the valuation roll for rating purposes.

After the values in a district have been revised a new valuation roll is prepared, and the Valuer-General addresses to each person whose name appears thereon a notice setting forth the values at which his property is entered, and naming a date on or before which all objections (in writing) to the values must be lodged.

THE ASSESSMENT COURT.

The Valuer-General refers objections to values to the District Valuer to enable him to review valuations before the sitting of the Assessment Court. If after careful reconsideration by the District Valuer it is decided that an objection will be allowed or a reasonable compromise effected, the valuation is altered accordingly. On the other hand, if the Valuer-General considers that the valuer's estimates are fair, the objection is heard and determined by the Assessment Court.

The Assessment Court consists of three members, of whom one—the President, who must be a barrister or solicitor of the Supreme Court of New Zealand—is appointed by the Governor-General in Council. Of the other two members of the Court, one is appointed by the Governor-General in Council, and the other by the local authority of the district whose roll has been revised, or by two or more local authorities acting in unison, provided the appointee is not a member of, or a paid officer of, any local authority. The Valuation of Land Amendment Act, 1927, provides for assessors representing local authorities to be elected (after nomination by two or more ratepayers) by a meeting of ratepayers convened for the purpose.

If the objection to the valuation is allowed, the new valuation is deemed to be entered on the valuation roll, for rating purposes, as on the 31st March of the calendar year following that on which notice of objection was duly given. If the objection is disallowed, the owner may, within fourteen days after the hearing by the Assessment Court, give notice to the Valuer-General that he requires the capital value to be reduced to the value which he (the objector) considers to be the fair selling-value as specified in his notice (but not less than the aggregate amount owing on mortgages or other charges on the land), or the land to be acquired on behalf of His Majesty at that value or sold in the prescribed manner.

If the Valuer-General is of the opinion that the Assessment Court has made an unfair reduction in a valuation he may, within fourteen days of the hearing, require the owner to consent to what he (the Valuer-General) considers is the fair selling capital value, and, failing such consent being given within thirty days after notice is delivered at his address, he may, with the approval of the Governor-General in Council, acquire the property at that value on behalf of His Majesty.

The decision of the Assessment Court on any objection is subject to appeal to the Supreme Court on a question of law. On all other questions the decision of the Assessment Court is final. The decision of a majority of the three members constitutes the decision of the Court, but if no two members agree the President's decision is taken.

Owing to the heavy decline in values during the depression years, and the impracticability of a universal revaluation, advantage of the provision enabling new valuations to be made was taken by many owners with the object of reducing their rate-payments. In order to maintain rating equity, the Valuation of Land Amendment Act, 1933, authorized local authorities to levy rates upon a proportionate part (not being under 75 per cent.) of values upon the roll. Where an individual owner has obtained a revaluation, the new figure or the proportionate part of the previously existing figure is taken, whichever is the lower.

CAPITAL AND UNIMPROVED VALUES OF LAND.

General valuations of land for the whole of New Zealand were made periodically up to the year 1897-98. Since that year no general valuations for the whole Dominion have been made, but portions are revalued from time to time. The figures in the following table, showing valuations over a number of years, therefore represent general valuations up to 1897 only, while for subsequent years the figures have been revised to include the latest valuations of small divisions.

GROSS CAPITAL AND UNIMPROVED VALUES.

Year.Capital Value (Land and Improvements).Unimproved Value of Land (included in previous Column)Year.Capital Value (Land and Improvements).Unimproved Value of Land (included in previous Column).
 ££ ££
187899,566,67962,573,8681,921518,584,318317,631,245
1882101,000,000..1,922544,503,376329,174,337
1885113,270,649..1,923553,403,794330,790,991
1888111,137,71475,497,3791,924568,500,653333,869,581
1891122,225,02975,832,4651,925587,349,575339,310,260
1897138,591,34784,401,2441,926603,250,306341,047,952
1902154,816,13294,847,7271,927618,264,093341,519,107
1905197,684,475122,937,1261,928631,454,676335,217,075
1907236,644,536149,682,6891,929655,906,887344,757,796
1909271,516,022172,759,9481,930664,571,181338,887,411
1911293,117,065184,062,7981,931667,911,212331,634,774
1913340,559,728212,963,4681,932662,829,264321,798,700
1915371,076,683230,705,1471,933653,707,517314,556,174
1916389,164,729241,322,2551,934650,362,355309,770,390
1917405,466,071251,087,7081,935637,604,203301,137,513
1918421,383,373260,921,8121,936635,801,798295,695,574
1919445,533,445275,988,4091,937632,229,720287,844,804
1920470,093,697290,880,2641,938636,362,641282,326,015

Valuations showed a rising tendency for many years, reaching a maximum (so far as unimproved values are concerned) about 1929. Since that year there has been a continuous series of decreases, the 1938 figure for total unimproved value being £62,431,781 or 18.1 per cent. loss than the peak year. The high point in regard to capital value was reached in 1931, and each subsequent year up to and including 1937 showed a decrease. The 1938 figures, however, indicate a reversal of this trend, an increase of slightly over £4,000,000 being disclosed.

The values shown in the foregoing table and in that following are the gross values; they include the value not only of rateable properties, but also of churches, schools, unoccupied Crown lands, and other lands exempt from local rating.

GROSS VALUES.

Year.Number.North Island.South Island.New Zealand.
Capital Value (Land and Improvements).Unimproved Value of Land (included In previous Column).Capital Value (Land and Improvements).Unimproved Value of Land (included in previous Column).Capital Value (Land and Improvements).Unimproved Value of Land (included in previous Column).
  ££££££
Counties.
1929129218,994,624125,113,171128,578,47792,389,116347,573,101217,452,287
1930129217,047,143120,939,949128,369,80590,038,141345,416,948210,978,090
1931129216,904,602119,125,252126,112,66784,989,699343,017,269204,114,951
1932129214,849,109115,921,478123,017,74879,835,599337,866,857195,757,077
1933129212,616,936113,753,386121,051,37178,032,449333,668,307191,785,835
1934129211,394,504111,951,849120,118,12476,809,704331,512,628188,761,553
1935129210,258,539110,798,741119,933,61874,875,011330,192,157185,673,752
1936129208,611,039107,431,506119,127,98873,678,360327,739,027181,109,866
1937129208,521,253104,153,526117,631,79071,608,906326,153,043175,762,432
1938129209,493,957101,095,343116,151,74769,226,087325,645,704170,321,430
Boroughs.
1929119215,559,20792,633,63683,723,05731,178,700299,282,264123,812,336
1930121224,252,97693,192,26785,669,38731,108,515309,922,363124,300,782
1931122228,502,59593,016,63887,312,58331,204,231315,815,178124,220,869
1932122228,332,22891,862,45487,553,54130,934,909315,885,769122,797,363
1933122223,524,94088,941,86287,637,53030,724,359311,162,470119,666,221
1934122221,931,73187,589,82887,736,35530,445,661309,668,086118,035,489
1935124211,900,63182,645,18487,807,00030,220,358299,707,631112,865,542
1936124211,034,00981,707,65689,225,86030,298,525300,259,869112,006,181
1937124210,533,34480,192,34787,652,83529,334,982298,186,179109,527,329
1938128214,863,26080,653,23389,526,29529,410,792304,389,555110,064,025
Independent Town Districts.
1929427,977,8323,136,3771,073,690356,7969,051,5223,493,173
1930418,145,6443,277,4341,086,226331,1059,231,8703,608,539
1931407,936,5502,967,9641,142,215330,9909,078,7653,298,954
1932407,920,4862,911,4191,156,152332,8419,076,6383,244,260
1933407,676,6962,752,6901,200,044351,4288,876,7403,104,118
1934418,009,1742,642,6951,172,467330,6539,181,6412,93,348
1935386,692,9452,301,1411,011,470297,0787,704,4152,598,219
1936386,781,0902,281,7891,021,812297,7387,802,9022,579,527
1937396,864,7942,262,2131,025,704292,8307,890,4982,555,043
1938355,314,3011,669,8151,013,081270,7456,327,3821,940,560
Grand Totals.
1929..442,531,663220,883,184213,375,224123,874,612655,906,887344,757,796
1930..449,445,763217,409,650215,125,418121,477,761664,571,181338,887,411
1931..453,343,747215,109,854214,567,465116,524,920667,911,212331,634,774
1932..451,101,823210,695,351211,727,441111,103,349662,829,264321,798,700
1933..443,818,572205,447,938209,888,945109,108,236653,707,517314,556,174
1934..441,335,409202,184,372209,026,946107,586,018650,362,355309,770,390
1935..428,852,115195,745,066208,752,088105,392,447637,604,203301,137,513
1936..426,426,138191,420,951209,375,660104,274,623635,801,798295,695,574
1937..425,919,391186,608,086206,310,329101,236,718632,229,720287,844,804
1938..429,671,518183,418,391206,691,12398,907,624636,362,641282,326,015

RATEABLE VALUES.

The values quoted earlier in this section relate to gross values (i.e., the value of all property, whether exempt from local rating or not). The following summary indicates rateable values for counties, boroughs, and independent town districts as at 1st April, 1938:—

North Island.South Island.New Zealand.
Capital Value (Land and Improvements).Unimproved Value of Land (included In previous Column).Capital Value (Land and Improvements).Unimproved Value of Land (included in previous Column).Capital Value (Land and Improvements).Unimproved Value of Land (included in previous Column).
 ££££££
Counties197,939,28497,161,011109,250,21566,835,469307,189,499163,996,480
Boroughs192,944,80471,899,33481,574,34427,070,930274,519,14898,970,264
Town districts (independent)4,889,2651,565,747923,736246,5055,813,0011,812,252
  Totals395,773,353170,626,092191,748,29594,152,904587,521,648264,778,996

Of the gross capital value, counties represent 51.2 per cent., and boroughs and independent town districts 48.8 per cent. For unimproved value the proportions are 60.3 per cent. and 39.7 per cent. respectively.

On the basis of rateable values, counties possess 52.3 per cent. of capital and 61.9 per cent. of unimproved values, as against 47.7 and 38.1 per cent. for boroughs and independent town districts.

The gross capital and unimproved values for each county, borough, and independent town district as in 1938 are next given.

COUNTIES.

GROSS CAPITAL AND UNIMPROVED VALUES , 1938.

County (including Dependent Town Districts).Capital Value (Land and Improvements).Unimproved Value of Land (included in previous Column).
 ££
Mangonui1,619,722419,387
Whangaroa391,548118,370
Hokianga1,587,491565,927
Bay of Islands2,624,100766,584
Whangarei4,802,0421,658,181
Hobson2,487,087820,058
Otamatea2,104,636871,588
Rodney1,751,213572,911
Waitemata4,872,7412,411,876
Eden2,915,4291,023,650
Great Barrier Island150,15693,580
Manukau4,992,5162,435,237
Franklin5,698,0262,576,837
Raglan4,558,6161,821,456
Waikato6,352,1062,661,904
Waipa6,743,0632,398,234
Otorohanga2,115,837960,798
Kawhia681,632252,399
Waitomo2,478,328761,044
Taumarunui1,156,611487,742
Coromandel689,409321,365
Thames725,563369,098
Hauraki Plains2,157,6421,036,318
Ohinemuri1,121,223461,111
Piako4,435,9392,365,414
Matamata5,518,0172,053,272
Tauranga3,476,6521,170,212
Rotorua1,574,270566,707
Taupo931,150573,794
Whakatane3,103,9121,374,094
Opotiki1,641,684592,052
Matakaoa622,566204,131
Waiapu2,767,111892,528
Uawa1,268,569537,211
Waikohu3,283,5871,181,204
Cook5,252,9792,351,399
Wairoa3,440,6491,214,746
Hawke's Bay10,817,6876,656,873
Waipawa3,079,5411,846,087
Waipukurau955,008579,084
Patangata4,281,2242,934,770
Dannevirke3,789,2032,026,943
Woodville1,576,753805,261
Weber633,339356,682
Ohura910,687256,436
Whangamomona332,44158,452
Clifton1,224,402560,339
Taranaki2,476,7651,181,006
Inglewood1,453,525421,426
Egmont2,052,1341,080,135
Stratford2,606,8461,246,479
Eltham2,169,4321,042,323
Waimate West1,791,1281,098,645
Hawera2,891,7761,562,613
Patea3,215,7941,833,880
Kaitieke1,005,222443,279
Waimarino1,270,404299,751
Waitotara2,181,0291,167,217
Wanganui2,111,8921,017,461
Rangitikei8,955,2205,085,916
Kiwitea2,667,6071,509,625
Pohangina1,265,662669,804
Oroua3,048,3072,077,090
Manawatu3,554,0192,479,186
Kairanga4,344,5432,698,183
Horowhenua5,238,4833,214,438
Hutt3,898,7501,591,914
Makara1,520,075605,820
Pahiatua2,326,4191,244,085
Akitio1,491,032725,163
Castlepoint1,211,709637,829
Eketahuna1,831,780992,379
Mauriceville613,850333,644
Masterton4,323,3542,722,718
Wairarapa South3,048,9081,776,872
Featherston4,663,1732,945,377
Sounds798,990408,440
Marlborough4,095,5382,456,098
Awatere2,066,4071,343,872
Kaikoura1,333,415839,170
Amuri2,429,8161,657,706
Cheviot1,451,1151,085,140
Waimea3,628,7341,581,062
Takaka587,894277,353
Collingwood423,878229,868
Buller1,233,668463,724
Murchison541,261219,144
Inangahua570,154228,791
Grey1,072,330607,478
Westland1,035,487570,024
Waipara3,072,4152,325,950
Kowai1,148,000801,520
Ashley731,880529,020
Rangiora1,545,6301,059,475
Eyre1,444,8001,029,345
Oxford988,971691,761
Tawera444,535321,645
Malvern2,141,3851,512,955
Paparua2,552,3851,356,420
Waimairi4,884,7631,986,327
Heathcote2,128,050815,640
Halswell1,049,680619,665
Mount Herbert526,810358,125
Akaroa1,796,9151,282,285
Chatham Islands280,960156,980
Wairewa1,122,645824,655
Springs1,024,580711,500
Ellesmere2,281,9401,719,885
Selwyn1,482,8851,003,650
Ashburton9,681,0506,530,935
Geraldine3,100,9702,074,795
Levels2,952,9301,989,510
Mackenzie2,489,6401,539,570
Waimate6,135,5633,992,843
Waitaki6,168,0943,132,736
Waihemo834,844590,184
Waikouaiti1,248,810694,046
Peninsula751,629334,210
Taieri2,415,7831,441,858
Bruce1,790,4401,127,461
Clutha3,049,5941,688,813
Tuapeka2,448,5841,532,231
Maniototo1,581,6311,036,399
Vincent1,682,8861,032,782
Lake749,683480,034
Southland12,709,9696,447,307
Wallace4,176,6892,283,367
Fiord144,293137,513
Stewart Island103,41550,040
Islands588,346382,519

BOROUGHS.

GROSS CAPITAL AND UNIMPROVED VALUES, 1938.

Borough.Capital Value (Land and Improvements).Unimproved Value of Land (included in previous Column).
 ££
Whangarei2,651,714844,181
Dargaville580,342137,907
Birkenhead804,806289,779
Northcote546,118214,094
Takapuna1,992,499721,031
Devonport2,473,250921,765
New Lynn550,371107,783
AUCKLAND CITY....
  City Portion33,591,70616,260,448
  Avondale Portion1,409,679494,284
  Point Chevalier Portion1,309,641498,667
  Grey Lynn Portion2,926,680998,285
  Arch Hill Portion556,941193,280
  Eden Terrace Portion625,632216,093
  Epsom Portion2,847,8501,096,230
  Parnell Portion2,167,5251,006,740
  Remuera Portion5,767,1352,175,480
  Orakei Portion443,327288,602
  Tamaki Portion2,611,0711,275,183
    Total of City54,257,18724,503,292
Mount Albert4,419,5441,382,341
Mount Eden4,922,4851,676,275
Newmarket1,391,772679,056
Ellerslie670,515203,695
One Tree Hill2,941,5331,056,235
Onehunga2,404,803743,180
Otahuhu1,564,266426,477
Manurewa408,321142,931
Papakura431,593167,842
Pukekohe926,443384,997
Huntly404,05096,840
Ngaruawahia222,28928,862
Hamilton6,387,3642,447,062
Cambridge707,950223,145
Te Awamutu860,223248,146
Te Kuiti594,885185,273
Taumarunui667,941235,072
Thames783,332178,110
Paeroa570,346170,953
Waihi394,60353,331
Te Aroha838,680282,090
Morrinsville544,213132,516
Matamata458,375143,245
Tauranga1,160,466484,207
Te Puke295,02789,391
Rotorua1,905,181810,598
Whakatane510,142127,847
Opotiki411,111130,721
Gisborne4,401,2321,258,836
Wairoa636,827188,101
Napier4,970,3531,673,279
Hastings4,016,9411,383,126
Waipawa289,78487,829
Waipukurau568,232163,391
Dannevirke1,556,940490,443
Woodville200,66853,829
Waitara349,521101,293
New Plymouth5,525,8111,790,422
Inglewood303,88269,353
Opunake233,46169,720
Stratford1,071,726349,052
Eltham400,632101,213
Hawera1,495,422582,103
Patea190,75350,623
Ohakune132,87617,170
Raetihi175,24525,299
Wanganui City6,833,2712,008,199
Taihape487,941190,311
Marton902,404210,727
Feilding1,585,639496,944
Foxton297,39567,285
Palmerston North City7,391,9652,405,614
Borough.Capital Value (Land and Improvements).Unimproved Value of Land (included in previous Column).
 ££
Shannon172,03057,815
Levin807,890270,905
Otaki326,14591,190
Upper Hutt859,800223,505
Lower Hutt5,882,7011,813,971
Petone3,314,540873,350
Eastbourne735,745274,335
WELLINGTON CITY  
  City Portion33,317,27615,844,279
  Onslow Portion1,627,155490,505
  Wadestown Portion1,213,512369,844
  Karori Portion2,240,900649,070
  Northland Portion927,045281,040
  Melrose—  
    Ohiro Portion2,503,615769,080
    Island Bay Portion1,842,917515,562
    Kilbirnie Portion4,913,8251,467,089
    Miramar Portion3,641,585930,733
      Total of City52,227,83021,317,202
Pahiatua417,60395,628
Eketahuna165,76441,517
Masterton3,018,853836,331
Carterton555,729102,282
Greytown233,41454,395
Featherston211,17943,629
Martinborough261,37647,746
Picton423,467150,420
Blenheim1,671,392518,128
Nelson City3,533,8371,295,743
Richmond293,833118,492
Motueka403,302151,182
Westport681,063178,627
Runanga123,49417,502
Greymouth1,701,990389,964
Brunner178,62472,925
Kumara24,7865,578
Hokitika455,51089,225
Ross30,4118,935
Rangiora555,445139,640
Kaiapoi324,88581,350
Riccarton1,662,855412,790
CHRISTCHURCH CITY  
  North-east Portion1,103,410446,995
  North-west Portion3,665,7451,715,255
  South-east Portion2,594,3151,199,670
  South-west Portion6,166,7153,570,960
  Papanui Portion1,158,600322,255
  Shirley Portion606,460155,750
  St. Alban's Portion4,847,9451,611,257
  Richmond Portion379,570119,350
  Avonside Portion416,445114,865
  North Linwood Portion475,785126,955
  East Linwood Portion138,32037,395
  Linwood Portion1,753,165563,465
  Woolston Portion976,920281,355
  Opawa Portion338,195110,995
  St. Martin's Portion267,26576,830
  Sydenham Portion2,929,450944,284
  Spreydon East Portion920,685242,755
  Spreydon West Portion1,058,375293,860
  Beckenham Portion435,970108,395
      Total or City30,233,33512,042,646
New Brighton946,372304,452
Sumner952,790292,665
Lyttelton805,210279,085
Akaroa129,82650,636
Ashburton1,568,345547,905
Geraldine212,96043,110
Temuka381,245111,555
Timaru5,384,2351,714,189
Waimate518,175109,041
Oamaru1,699,335558,822
Hampden37,0979,699
Palmerston140,12829,323
Waikouaiti132,88439,147
Port Chalmers383,741119,663
West Harbour400,40881,368
DUNEDIN CITY  
  Central Portion5,413,7732,200,870
  Valley Portion1,316,590307,052
  Maori Hill Portion1,106,671245,190
  Roslyn Portion1,908,226484,845
  Mornington Portion1,378,130267,745
  Leith Portion4,913,6581,857,147
  Caversham Portion1,941,329415,250
  South Dunedin Portion1,176,220278,375
  Bay Portion1,336,808231,342
      Total of City20,491,4056,287,816
St. Kilda1,675,843421,588
Green Island411,74087,685
Mosgiel400,57570,900
Milton265,13855,821
Kaitangata112,73131,543
Balclutha347,98787,940
Tapanui43,8659,130
Lawrence71,3958,702
Roxburgh87,16521,745
Naseby20,0582,588
Alexandra155,48915,486
Cromwell115,23416,167
Arrowtown20,7002,780
Queenstown208,04034,600
Gore1,190,065282,020
Mataura320,53583,625
Winton245,45062,460
Invercargill City6,505,8651,695,724
South Invercargill259,46548,175
Bluff383,53077,465
Riverton203,04043,025

INDEPENDENT TOWN DISTRICTS.

GROSS CAPITAL AND UNIMPROVED VALUES, 1938.

Town District.Capital Value (Land and Improvements).Unimproved Value of Land (included in previous Column).
 ££
Kaitaia193,52344,255
Kaikohe217,24555,245
Hikurangi135,03027,455
Kamo131,59031,795
Warkworth122,30019,440
Helensville210,75454,758
Henderson222,62572,538
Glen Eden213,71766,763
Howick269,250110,830
Papatoetoe705,134249,069
Waiuku277,86990,482
Tuakau208,32878,885
Leamington122,41544,250
Otorohanga214,86060,773
Manunui71,56625,946
Putaruru200,44958,149
Mount Maunganui172,68590,190
Taradale306,498113,220
Havelock North386,119122,120
Ohura56,67411,276
Manaia121,45825,889
Waverley118,42026,080
Rangataua13,068872
Mangaweka62,33318,690
Hunterville94,73030,700
Bulls126,95638,140
Johnsonville338,705102,005
Tahunanui207,32659,300
Leeston156,61038,245
Tinwald136,09544,980
Pleasant Point112,20033,775
Wyndham121,93539,540
Lumsden65,99514,050
Nightcaps74,48010,955
Otautau138,44029,900

Chapter 28. SECTION XXVIII.—BANKING AND CURRENCY.

INTRODUCTORY.

BANKING institutions operating in New Zealand may be enumerated as follows:—

  1. The Reserve Rank of New Zealand.

  2. Six trading banks.

  3. The Post Office Savings-bank.

  4. Five trustee savings-banks.

In addition, a number of trading companies, investment societies, &c., perform quasi-banking functions, accepting deposits and granting credits (short-term and long-term) to clients. In some instances deposits are repayable to the client's order at call—virtually a system of cheque-issuing.

Until the establishment of the Reserve Bank, which commenced to function on 1st August, 1934, each of the six trading banks held the right of note-issue, which is now vested solely in the Reserve Bank.

A full description of banking practice in New Zealand is beyond the scope of a Year-Book section, but those desiring information on this subject may usefully refer to the report of the Parliamentary Monetary Committee, Parliamentary Paper B.-3 (1934), and to its minutes of evidence, published as an appendix. In the analysis of recent banking movements presented in the following pages the explanatory letterpress contains a résumé of the main features of present banking practice in the Dominion.

THE RESERVE BANK.

The Reserve Bank was constituted by the Reserve Bank of New Zealand Act, 1933 (amended in minor respects by the Finance Act, 1934), with the primary object of exercising control, within defined limits, over monetary circulation and credit in the Dominion. As originally constituted, the Bank had a share capital of £500,000, composed of 100,000 publicly subscribed shares of £5, hearing a cumulative dividend of 5 per cent. Very important changes in the constitution of the Bank were made by the Reserve Bank Amendment Act, 1936, which, inter alia, abolished the subscribed share capital of the Bank, with provision for the repayment to shareholders (either in cash or in Government stock, at the option of the shareholder) of the value of shares held and accrued dividends. The General Reserve Fund of the Bank is maintained at £1,500,000, made up of a contribution of £1,000,000 by the Government at the passing of the original Act, and £500,000 to replace share capital after the passing of the 1936 Amendment Act. It will be seen then that the whole of the reserve fund is now contributed by the State—the Bank being virtually State-owned. Additional powers were conferred on the Reserve Bank by the Finance Act (No. 2), 1936. Very important changes were made by the Reserve Bank of New Zealand Amendment Act, 1939, details of which are given in the following pages of this section. Following are the more important features of the legislation at present in force defining the management, functions, &c., of the Bank.

MANAGEMENT.

The management of the Bank is entrusted to a Board of Directors consisting of the Governor and the Deputy-Governor and seven ordinary members. Ordinary members appointed or reappointed in future cannot hold office continuously for a longer period than five years without reappointment.

The Secretary to the Treasury is an ex officio member with voting-power. All members of the Board (other than the Secretary to the Treasury) must be British subjects by birth (one exception to this rule was made by legislation), and may not be members of the Legislature, public servants of any Department, or undischarged bankrupts. Not more than one member may act as director of any other bank.

FUNCTIONS.

The general function of the Bank is defined in section 10 (1) of the Reserve Bank of New Zealand Amendment Act, 1936, as follows: “It shall be the general function of the Reserve Bank, within the limits of its powers, to give effect as far as may be to the monetary policy of the Government as communicated to it from time to time by the Minister of Finance. For this purpose, and to the end that the economic and social welfare of New Zealand may be promoted and maintained, the Bank shall regulate and control credit and currency in New Zealand, the transfer of moneys to or from New Zealand, and the disposal of moneys that are derived from the sale of any New Zealand products and for the time being are held overseas.”

These provisions were amplified by section 2 of the amending Act of 1939, which reads as follows: “In the exercise of their functions and powers under the principal Act the Governor and Board of Directors shall have regard to any representations that may be made by the Minister of Finance in respect of any functions or business of the Reserve Bank, and shall give effect to any decision of the Government in relation thereto conveyed to the Governor in writing by the Minister of Finance.”

The Bank is empowered under the existing legislation to—

  1. Make and issue bank-notes (see heading in “Coinage and Currency,” post).

  2. Buy and sell gold and silver coin and bullion.

  3. Accept money on deposit or on current account.

  4. Discount, rediscount, buy, and sell: (a) Bilk, notes, &c., whether commercial or agricultural, maturing within one hundred and twenty days from date of document or ninety days after sight; (b) agricultural bills, notes, &c. maturing within six months of acquisition; (c) Treasury bills of any Government, or bills of any local authority in any British country, all such bills to be maturing within three months of acquisition.

  5. Grant advances, up to three months, against: (a) Gold coin or bullion or relative documents; (b) Government, local authority, or other approved securities readily marketable in New Zealand; (c) bills, &c., as referred to above; (d) promissory notes of banks in New Zealand. The Bank is also empowered to (e) grant accommodation by way of overdraft to the Government of New Zealand or to any Board or other authority having statutory powers in relation to the marketing of any New Zealand produce for the purpose of financing the purchase and marketing of any such produce.

  6. Buy and sell securities of the New Zealand or United Kingdom Governments, or securities guaranteed by the Government of New Zealand or by the Government of the United Kingdom.

  7. Buy and sell currencies of other countries.

  8. By authority of the Governor-General in Council underwrite any loan proposed to be raised by the New Zealand Government, or by the State Advances Corporation of New Zealand.

  9. Issue and manage loans for the Government or any local authority or public body in New Zealand.

  10. Keep a register of inscribed stock on behalf of a local authority or public body.

  11. Organize a clearing system.

  12. Act as correspondent for overseas banks or as agent of other reserve banks.

  13. Do any other banking business not prohibited by the Act.

Other duties of the Bank in connection with note-issue, exchange, and maintenance of reserves are referred to elsewhere in this section.

On the commencement of business on 1st August, 1934, the Public Account was transferred to the Reserve Bank, and the management of the public debt was taken over by the Reserve Bank as from the 1st October, 1936.

Inter alia, the Bank is prohibited, except with the authority of the Governor-General in Council, from engaging in trade; purchasing the shares of other banks (except the Bank for International Settlements); making unsecured loans or advances; purchasing or making advances on real property; paying interest on moneys placed with it on deposit or on current account, except to the Government on Government funds held by the Bank outside New Zealand; renewing bills, except in exceptional circumstances; drawing or accepting bills payable otherwise than on demand. There is also a limit (of one - fourth of the estimated revenue for the year) placed upon the accommodation that can be given Government Departments, local authorities, or public bodies. The Bank may, however, accept Treasury bills up to the total revenue or estimated revenue of the General Government for the year. In computing the amount of accommodation which the Bank may grant the General Government, any securities mentioned in paragraphs 5 (e) or 6 on the preceding page must not be taken into account.

The Bank is required to furnish to the Treasury a weekly statement in prescribed form, which is published in the Gazette. A copy of the annual accounts must be laid before Parliament.

The net profits of the Bank are paid to the Consolidated Fund, provided that the Bank's General Reserve Fund is not less than £1,000,000. If the Reserve Fund falls below that level, part of the profits must be credited to the Reserve Fund.

An analysis of the liabilities and assets of the Bank at intervals since the Bank commenced operations is shown on the next page.

Liabilities in currencies other than New Zealand currency have not assumed very large proportions, while discounts (except on isolated occasions) have been negligible.

The net reserve ratio—that is, the ratio of gold coin and bullion, plus sterling exchange, to the aggregate amount of notes in circulation and other demand liabilities—maintained a percentage of over 95 until August, 1936, after which it fell rapidly to reach 68 at the end of 1936, oscillating between that level and 82 until August, 1938. It then dropped very steeply, particularly ring October and November, and in January, 1939, it was just above the statutory limit of 25 per cent., at which point, with slight variations, it has remained until the present time (November). As explained later, the Minister of Finance now has power to vary or suspend the minimum. The fall in the reserve ratio has resulted from a severe decline in the sterling funds, accompanied by increases in demand liabilities to the trading banks and by increased note-circulation.

LIABILITIES OF RESERVE BANK.

As atCapital and General Reserve Fund.Bank-notes.Other Demand Liabilities.Other Liabilities.Total Liabilities.
State.Banks.Other.
1934.£££££££
August 27th1,500,0007,975,3103,298,17416,510,5661,29429,97429,315,318
December 31st1,500,0009,772,2796,693,0879,071,6995,89939,91827,082,882
1935.       
June 24th1,500,0009,111,27013,287,9263,915,16522,51153,80827,890,680
December 30th1,500,00010,720,5553,696,0619,678,905362,143113,91626,071,580
1936.       
June 29th1,500,00010,040,7058,839,6326,607,464258,41089,69527,425,906
December 28th1,500,00013,641,4513,539,66811,056,206236,398134,05830,107,781
1937.       
June 28th1,500,00012,630,8387,361,0479,824,090994,98588,10632,399,066
December 27th1,500,00015,233,1273,486,7468,929,644498,201169,31429,817,032
1938.       
March 28th1,500,00013,554,4687,115,2615,588,065354,091204,69028,316,575
June 27th1,500,00013,774,7244,648,2096,862,841314,151104,69527,204,620
September 26th1,500,00013,734,6203,913,5935,386,144381,499156,63225,072,488
December 26th1,500,00016,641,4262,842,1637,193,22779,106225,77728,481,699
1939.       
January 30th1,500,00015,365,8582,623,5518,587,301262,161279,39028,618,261
February 27th1,500,00014,905,6154,017,92710,467,41481,205312,12031,284,281
March 27th1,500,00015,334,0463,816,5309,041,1861,030,061351,89631,073,719
April 24th1,500,00015,658,7623,097,30210,307,660540,780679,99231,784,496
May 29th1,500,00015,572,0502,549,5439,428,7791,583,680383,90631,017,953
June 26th1,500,00015,467,2812,328,0099,643,785150,998421,52529,511,598
July 31st1,500,00015,693,3642,863,45210,763,460206,557498,74531,525,578
August 28th1,500,00015,802,1881,451,49812,581,860343,185401,70832,140,439
September 25th1,500,00016,647,6951,794,53712,573,619341,495513,57333,370,919
October 30th1,500,00017,371,8202,899,65713,211,920161,598604,32935,749,324

ASSETS OF RESERVE BANK.

As atReserve.Subsidiary Coin.Advances.Investments.Other Assets.Total Assets.Net Reserve Ratio.*
Gold.Exchange.Primary Products MarketingOther.
* i.e., Reserve, less liabilities in currencies other than New Zealand currency, expressed as a percentage of notes and other demand liabilities.
1934.££££££££Per Cent.
Aug. 27th3,202,17924,487,093108,046....1,500,00018,00029,315,31899.65
Dec. 31st3,001,73122,092,02193,700....1,872,11123,31927,082,88298.24
1935.         
June 24th2,801,73222,813,024145,975....2,094,07535,87427,890,68097.26
Dec. 30th12,801,73321,398,949195,812....1,639,18135,90526,071,58098.95
1936.         
June 29th2,801,73322,122,319192,158....2,036,800272,89627,425,90696.50
Dec. 28th2,801,79016,534,425110,9036,059,5721,800,0002,700,315100,77630,107,78167.91
1937.         
June 28th2,801,79121,542,637117,2734,754,993200,0002,906,45075,92232,399,06679.01
Dec. 27th2,801,79116,992,748209,6616,180,312900,0002,658,32574,19529,817,03270.32
1938.         
Mar. 28th2,801,79116,929,651228,2305,109,127200,0002,971,98575,79128,316,57574.15
June 27th2,801,79116,609,197235,3714,156,650600,0002,732,06569,54627,204,62075.82
Sept. 26th2,801,79111,449,447225,9443,158,6084,500,0002,732,065204,63325,072,48860.79
Dec. 26th2,801,7914,678,233188,6665,257,01811,200,0003,605,022750,96928,481,69927.88
1939.         
Jan. 30th2,801,7914,133,586195,7846,158,16911,100,0003,633,816595,11528,618,26125.75
Feb. 27th2,801,7914,839,555204,8216,870,59212,800,0003,651,172116,35031,284,28125.80
March 27th2,801,7914,659,874228,1687,431,05512,000,0003,660,931291,90031,073,71925.42
April 24th2,801,7914,659,061225,5847,609,48412,075,0003,771,278642,29831,784,49625.11
May 29th2,801,8394,564,205222,8327,492,34912,025,0003,770,790140,94331,017,95825.14
June 26th2,801,8395,600,692226,7566,301,16510,625,0003,768,164187,98229,511,59830.25
July 31st2,801,8395,576,957227,1445,688,32713,250,0003,743,463232,84831,525,57828.13
Aug. 28th2,801,8395,690,208235,6515,783,69913,850,000.3,657,692121,35032,140,43928.11
Sept. 25th2,801,8395,311,680240,4424,593,26616,250,0003,816,124357,56833,370,91925.82
Oct. 30th2,801,8395,743,087227,6056,462,35116,775,0003,619,792119,65035,749,32425.37

TRADING BANKS.

The Banking Act, 1908, which consolidated the law of New Zealand relating to the general business of banking in the Dominion, provides that the incorporation of banks by Royal Charter shall be as effectual within New Zealand as Acts of the General Assembly. The number of directors is prescribed by the Act, and authority is given to any bank to increase its capital on a resolution of the shareholders. Transfers of shares on which there is any liability must be approved by the directors or their duly appointed attorney or attorneys. A sworn copy of an entry in the books of a bank shall in all legal proceedings be evidence of such entry, and a bank is not required in any legal proceedings to which it is not a party to produce its books before a Court unless ordered by a Judge for special cause. Provision is made for the destruction of cheques, drafts, bills of exchange, or promissory notes after the expiration of ten years from the date thereof in the case of documents payable on demand or from the due date in the case of other documents.

Part II of the Bills of Exchange Act, 1908, consolidates the law relating to cheques on a bank.

The Companies Act, 1933, with the exception of Part XII (re companies incorporated outside New Zealand) and also of the provisions relating to branch registers, does not apply to banking companies formed within and operating only within the Dominion.

With the establishment of the Reserve Bank of New Zealand, which commenced to function on 1st August, 1934, there was inaugurated an entirely new era in banking practice in New Zealand. The function of note-issue was transferred from the trading banks to the Reserve Bank; while all gold coin or bullion held by trading banks for their own account was required by the Reserve Bank of New Zealand Act, 1933, to be transferred to the Reserve Bank in exchange for equivalent notes of the Reserve Bank or for credit with that Bank. The basis of payment was £3 17s. 10½d. per ounce of standard—i.e., eleven-twelfths fine—gold content, which was the price at which such gold (in actual fact, coin only) had originally been acquired by the trading banks. Any profit derived from the sale of this gold overseas by the Reserve Bank accrues to the State and not to the Reserve Bank. Consolidated Fund receipts from profits on the sale of gold coin were £1,364,118 in 1934-35 and £231,271 in 1935-36 (1936-37, 1937-38, and 1938-39, nil).

While the regulation of currency exchange is now a function of the Reserve Bank, commercial exchange transactions are still carried out through the medium of the trading banks.

Each trading bank is required to maintain with the Reserve Bank a balance of not less than 7 per cent. of its demand liabilities in New Zealand, and 3 per cent. of its time liabilities in New Zealand. These requirements may be varied by the Governor of the Bank, acting with the authority of the Minister of Finance, but not so as to be less than the percentages quoted above.

There are six banks trading in New Zealand, two of these institutions—the Bank of New Zealand and the National Bank of New Zealand—being incorporated by special Acts of the General Assembly of the Dominion. The other four banks, which are predominantly Australian institutions, have in the aggregate much greater capital resources, &c., than the two New Zealand banks. The close Australian affiliations of the Australian banks operating in the Dominion resulted in the past in an interlocking between the Australian and New Zealand financial structures, the separation of New Zealand business being one of the major motives leading up to the founding of the Reserve Bank.

The Bank of New Zealand is partly State-owned, the New Zealand Government holding preference and long-term mortgage shares to the aggregate value of £2,109,375 out of a total paid-up capital of £6,328,125. Four of the six directors are appointed by the Government, the remaining two by the shareholders. The Bank has branches in London, Australia, Fiji, and Samoa, while its branches and agencies within the Dominion number 225. The other five banks have between them 312 establishments within the Dominion, making a total of 537, or an average of one branch bank to every 3,014 inhabitants.

STATISTICAL SOURCES.

The statistical tables included in the following pages have been compiled from one or other of the following sources:—

  1. Quarterly returns gazetted under the authority of the Banking Act, 1908. (These returns are now in abeyance.)

  2. Weekly and monthly returns gazetted under the authority of the Reserve Bank of New Zealand Act, 1933, and amendments.

  3. Weekly statistics collected under the authority of the Census and Statistics Act, 1926.

Most of the annual data for 1934 and earlier years are compiled from the long-standing quarterly returns, while the monthly returns date from the establishment of the Reserve Bank (August, 1934). Weekly trading bank statistics have been collected by the Census and Statistics Department since April, 1928.

CAPITAL AND RESERVES.

The total paid-up capital of the trading banks, their reserve funds, and the rate of their last dividend, as near as possible to 31st December, 1938, were as follows:—

Bank.Paid-up Capital.Rate per Cent. per Annum of Last Dividend and Bonus.Reserves.
Bank of New Zealand—£Per Cent.£
"A" preference shares issued to the Crown (Act of 1920)500,000104,386,602
"B" preference shares Issued to the Crown (Act of 1920)1,375,0007 3/11
"C" long-term mortgage shares Issued to the Crown234,3756
"D" long-term mortgage shares468,750
Ordinary shares3,750,00010..
Union Bank of Australia, Ltd.4,000,00075,007,264
Bank of New South Wales8,780,00066,316,977
Bank of Australasia4,500,00084,702,879
National Rank of New Zealand, Ltd.2,000,00051,614,131
Commercial Bank of Australia, Ltd.—   
Ordinary2,000,0007/122,359,361
Preference2,117,3504

As observed previously, four of these banks are predominantly Australian institutions, and consequently the statistics of paid-up capital, &c., quoted above are not necessarily indicative of the relative status of the banks in respect of New Zealand business. The reserves of the trading banks have totalled upwards of £20,000,000 during each of the last thirteen years.

LIABILITIES.

The liabilities of the trading banks for the ten years 1925 to 1934 are shown in the table following, the figures given referring to New Zealand business only. The liabilities shown represent the average of the four quarters of the year.

Year.Notes in Circulation.Bills in Circulation.Balances due to other Banks.Deposits.Total Liabilities.*
* Including from 1927 transfers from Long-term Mortgage Department in case of Bank of New Zealand.
 £££££
1,9256,775,470312,983924,04252,207,20260,219,697
1,9266,730,421292,370850,25650,135,11458,008,161
1,9276,510,018292,369948,92648,294,09656,321,397
1,9286,374,043307,0071,146,54353,799,22161,850,595
1,9296,433,911327,667850,44157,609,74665,232,866
1,9306,255,717269,2941,024,96356,425,01463,984,419
1,9315,782,354191,4171,798,37553,645,01861,463,034
1,9325,958,268158,8661,566,10752,851,73660,649,208
1,9336,205,429179,4271,111,97957,620,23365,281,375
1,9344,844,826197,882576,86363,417,29969,259,271

Since the Reserve Bank commenced operations the trading banks have been required to submit at monthly intervals a return of liabilities and assets in respect of New Zealand business. An analysis of liabilities at various intervals from 1934 to 1939 is as follows:—

LIABILITIES OF TRADING BANKS (MONTHLY SERIES).

As atNotes in Circulation.Demand Liabilities.Time Liabilities.Total Liabilities.
In New Zealand.Outside New Zealand.In New Zealand.Outside New Zealand.
1934.£(000)£(000)£(000)£(000)£(000)£(000)
September 24th2,71625,77229239,58782269,189
December 31st1,48624,17826036,76284663,532
1935.      
June 24th71025,92237935,82790663,744
December 30th58527,16854137,13655265,982
1936.      
June 29th51830,80660536,06777768,773
December 28th..31,08078333,12495365,940
1937.      
June 28th..36,0531,25532,94853370,789
December, 27th..33,5751,78732,09238867,842
1938.      
March 28th..37,0061,62631,22540170,258
June 27th..35,0621,51631,10833168,017
September 26th..32,9281,48330,49629865,205
December 26th..34,1722,16429,79868766,821
1939.      
January 30th..36,1762,43029,93438868,928
February 27th..37,5651,87329,88858569,911
March 27th..38,4471,95529,87828170,561
April 24th..38,2452,19529,74827770,465
May 29th..37,3162,58329,60029469,793
June 26th..37,2762,30729,42628569,294
July 31st..37,0452,44329,70220569,395
August 28th..37,3671,98430,04165570,047
September 25th..37,4132,01730,2261,01270,668
October 30th..38,1512,17930,6271,17972,136

Notes of trading banks were finally withdrawn from circulation on 1st August, 1936 (sec “Coinage and Currency,” post).

ASSETS.

Assets are now presented in a manner similar to that in which liabilities are shown. The annual figures represent the average of the four quarters of the year, while the monthly statistics relate to the position on the last Monday in each month.

Year.Coin and Bullion.Notes and Bills discounted.Debts due, exclusive of Bad Debts.Balances due from other Banks.Government Securities.Total Assets (including others).
 ££££££
1,9257,722,9171,639,16843,659,7871,214,3214,782,17062,128,808
1,9267,797,3191,787,50447,361,756881,8454,654,84665,765,297
1,9277,874,9711,610,36848,421,835978,2644,647,19166,626,676
1,9287,511,8331,286,18544,893,2781,301,9074,790,40462,819,485
1,9297,051,3911,103,14948,175,045955,8034,887,46265,475,529
1,9306,798,5561,173,36752,484,0301,075,3344,777,89669,748,071
1,9316,917,897843,04151,576,4861,832,7814,505,58168,557,120
1,9325,957,944644,95349,610,7211,592,8948,521,01769,015,209
1,9335,105,846814,22844,890,8161,109,25715,266,03269,656,700
1,9343,477,2481,174,40740,215,0506,040,48618,105,02573,509,177

ASSETS OF TRADING BANKS (MONTHLY SERIES).

As atCoin and Bullion.Reserve Bank Notes.Balances held in Reserve Bank.Overseas Assets.Securities held.*Advances and Discounts.Land, Buildings, &c.*Total Assets.

* Data as to securities held and land, buildings, &c., were not included in the monthly statements prior to October, 1935.

†The figures in this column for dates up to and including June 24th, 1935, are incomplete.

1934.£ (000)£ (000)£ (000)£ (000)£ (000)£ (000)£(000)£(000)
September 24th6025,19715,91316,881..41,603..80,196
December 31st6154,4179,07219,542..44,903..78,549
1935.        
June 24th7983,7143,87724,497..45,172..78,058
December 30th7453,6919,67615,7835,05746,5671,49083,009
1936.        
June 29th7333,3376,68623,2175,62245,0771,53786,209
December 28th5263,19811,04013,2825,99748,2821,54183,866
1937.        
June 28th7613,9729,81817,2027,78847,7111,67988,931
December 27th6853,5548,9248,8388,04154,0021,77985,823
1938.        
March 28th9324,0185,57811,6627,90855,8381,81087,746
June 27th8914,2506,85911,3636,99554,8861,81887,062
September 26th8053,3745,3857,3768,53456,2761,85283,602
December 26th6453,5727,1894,9999,03357,7971,83785,072
1939.        
January 30th8204,3918,5845,9659,82956,1871,84287,618
February 27th8063,93610,4606,71610,12954,7261,84688,619
March 27th7864,1589,0386,88210,32955,5171,85288,562
April 24th7133,63610,3056,84110,57555,7191,84989,638
May 29th7644,0079,4265,75011,37256,1281,86889,315
June 26th7533,9369,6246,13610,87255,0901,87288,283
July 31st7203,55510,7616,06610,26654,1691,85887,395
August 28th7083,73612,5555,84010,50953,4171,86888,633
September 25th6633,22712,5726,30710,75453,6241,87189,018
October 30th7114,34313,2056,38113,52752,8281,85592,850

Particulars of aggregate unexercised overdraft authorities of trading banks are available from April, 1936. Following is the amount at the end of each quarter up to the end of 1937 and thereafter on the last Monday of each month up to October, 1939:—

As atAmount.
1936.£
April 27th22,851,690
June 29th22,895,826
September 28th22,154,845
December 28th22,461,572
1937. 
March 29th25,230,458
June 28th25,543,819
September 27th23,798,538
December 27th22,909,459
1938. 
January 31st24,140,438
February 28th24,396,286
March 28th24,799,432
April 25th24,262,537
May 30th24,708,080
June 27th24,907,085
July 25th24,764,398
August 29th23,630,590
September 26th22,917,290
October 31st22,427,578
November 28th21,191,901
December 26th21,200,722
1939. 
January 30th22,215,547
February 27th23,036,586
March 27th23,538,752
April 24th23,174,825
May 29th22,933,789
June 26th23,973,221
July 24th23,549,121
August 28th23,990,416
September 25th23,284,065
October 30th23,846,294

DEPOSITS AND ADVANCES.

The total amount of deposits, the amount per head of mean population, the total advances, and the ratio of advances to deposits (weekly averages), for each of the last ten years, are as follows:—

Year.Deposits.Advances.
Total Amount.Per Head of Population.Total Amount.Ratio to Deposits.
 ££s.d.£Per Cent.
1,92957,609,746392049,278,19485.54
1,93056,425,0143716053,657,39795.10
1,93153,645,018358752,419,52797.72
1,93252,851,7363412250,255,67495.09
1,93357,620,233378645,705,04479.32
1,93463,417,2994017641,389,45765.27
1,93561,474,511397044,666,54172.66
1,93665,153,972417345,918,43270.48
1,93766,842,692424149,199,59273.60
1,93865,038,690409755,650,06585.56

A fifty-years table of deposits and advances will be found in the Statistical Summary near the end of this Year-Book.

The average amount on deposit during each month since January, 1935, is shown in the next table:—

Month.1935.1936.1937.1938.1939.
 £££££
January61,071,90364,956,40065,502,25366,193,03964,535,085
February62,012,86366,239,99967,930,72867,317,02566,323,617
March61,979,47866,834,80767,701,49867,120,26066,930,893
April62,398,92567,903,29769,567,17867,111,81367,274,579
May61,869,36367,750,75269,009,29666,925,72767,388,447
June61,063,98866,634,01768,232,13465,643,62265,678,735
July60,729,07565,627,92967,669,90264,921,55565,972,262
August60,435,71064,644,58266,789,58364,045,88266,574,376
September60,562,85163,226,58765,441,32562,980,98166,825,985
October60,624,35362,515,49264,857,67762,703,35368,199,516
November61,114,99462,327,95964,386,40862,544,245..
December63,285,49963,229,47264,895,32163,028,465..

In the following tables the three different classes of deposits are shown for each month since January, 1935:—

Month.1935.1936.1937.1938.1939.
Government Deposits.
 £££££
January534,907455,800930,275875,538656,478
February555,266473,034886,476777,271646,810
March673,072496,150648,708636,172700,495
April542,697482,578833,695723,065748,130
May545,459488,277713,444665,421691,713
June572,167572,381788,994628,355625,572
July470,891594,048792,787627,489631,009
August449,199689,947784,796627,806677,677
September435,464828,842714,173612,606682,029
October368,441841,082797,080636,555637,421
November391,846896,793706,081607,058..
December447,304923,975714,992701,998..
Deposits not bearing Interest.
January22,956,91225,913,66430,484,94632,123,97032,699,089
February24,260,77727,075,22233,004,96033,576,85534,483,315
March24,677,40128,307,39233,669,60333,445,98535,080,024
April25,098,42928,916,81535,249,77133,420,35235,397,614
May24,449,34728,684,61634,428,92833,603,22835,708,193
June23,578,32328,033,27633,348,30732,612,56134,449,266
July23,214,63027,648,38232,082,53732,046,74934,510,811
August22,718,50927,021,07331,119,92531,300,36834,733,566
September22,431,39126,366,24729,952,29730,353,04534,668,923
October22,514,23726,263,08229,992,42830,276,76135,745,269
November23,066,24426,641,34829,886,36030,268,670..
December24,546,56227,994,17630,457,07731,143,996..
Deposits bearing Interest.
January37,580,08438,586,93634,087,03233,193,53131,179,518
February37,196,82038,691,74334,039,29232,962,89931,193,492
March36,629,00538,031,26533,383,18733,038,10331,150,374
April36,757,79938,503,90433,483,71232,968,39631,128,835
May36,874,55738,577,85933,866,92432,657,07830,988,541
June36,913,49838,028,36034,094,83332,402,70630,603,897
July37,043,55437,385,49934,794,57832,247,31730,830,442
August37,268,00236,933,56234,884,86232,117,70831,163,133
September37,695,99636,031,49834,774,85532,015,33031,475,033
October37,741,67535,411,32834,068,16931,790,03731,816,826
November37,656,90434,789,81833,793,96731,668,517..
December38,291,63334,311,32133,723,25231,182,471..

The average amount of advances outstanding during each month since January, 1935, is shown below:—

Month.1935.1936.1937.1938.1939.
 £££££
January43,006,40445,781,78547,498,84153,473,30356,632,201
February42,890,30344,955,06846,452,40052,746,13455,263,094
March43,334,61044,685,84146,853,67954,752,99455,646,239
April43,874,10844,966,33947,414,17255,947,79856,201,355
May43,837,52945,031,52247,452,15055,349,04155,979,886
June43,862,38244,670,30047,643,88655,013,31155,930,892
July44,105,88645,003,06448,039,17754,977,52754,699,631
August44,787,53145,427,85548,825,05555,419,92453,883,949
September45,497,72645,762,88550,126,11256,093,33253,865,248
October46,682,01647,484,22152,447,95357,789,53453,623,523
November47,234,64548,547,37653,473,77958,411,111..
December46,890,09048,790,52554,216,32857,968,879..

The ratio of advances to deposits follows:—

Month.1935.1936.1937.1938.1939.
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
January70.4270.4872.5280.7887.75
February69.1667.8768.3878.3683.32
March69.9266.8669.2181.5783.14
April70.3166.2268.1683.3783.54
May70.8566.4768.7682.7083.07
June71.8367.0469.8383.8185.16
July72.6368.5770.9984.6882.91
August74.1170.2773.1086.5380.94
September75.1272.3876.6089.0680.61
October77.0075.9680.8792.1678.63
November77.2977.8983.0593.39..
December74.0977.1683.5491.97..

Since the provision of Treasury-bill finance has now become largely a function of the Reserve Bank, interest attaches to the following table showing the movement in advances, Government securities held by the trading banks, and deposits. The annual figures shown for 1928-35 represent weekly averages, and thereafter monthly averages. For 1938 the position is shown on the last Monday of each quarter and for 1939 on the last Monday of each month.

Advances.Government Securities.Total Advances and Government Securities.Total Deposits.Ratio of Advances (plus Government Securities) to Total Deposits.
 ££££Per Cent.
1,92846,179,4644,790,40450,969,86853,799,22094.74
1,92949,278,1954,887,46254,165,65757,609,74694.02
1,93053,657,3984,777,89658,435,29456,425,014103.56
1,93152,419,5274,505,58156,925,10853,645,018106.11
1,93250,255,6748,521,01758,776,69152,851,736111.21
1,93345,705,04415,266,03260,971,07657,620,233105.82
1,93441,389,45718,105,02559,494,48263,417,29993.81
1,93544,624,0055,326,80249,950,80761,499,13481.22
1,93645,898,6655,211,13951,109,80465,147,22178.45
1,93749,222,0797,622,53356,844,61266,890,61984.98
1,93855,659,4347,612,92963,272,36364,112,55998.69
1938.     
March 28th55,162,0957,629,53462,791,62967,272,46493.34
June 27th54,726,3486,721,21761,447,56565,450,01293.88
September 26th56,123,0898,263,63664,386,72562,702,638102.69
December 26th57,605,7358,762,67966,368,41463,106,678105.17
1939.     
January 30th56,187,0369,562,67965,749,71565,413,004100.51
February 27th54,717,8739,862,67964,580,55266,732,84596.77
March 27th55,515,57610,062,55965,578,13567,386,53097.32
April 24th55,716,28710,311,26766,027,55467,351,70098.03
May 29th56,126,43211,108,76767,235,19966,208,679101.55
June 26th55,088,93410,610,37965,699,31366,020,85099.51
July 31st54,169,32010,006,73164,176,05166,080,94997.12
August 28th53,417,22210,250,98263,668,20466,865,46895.22
September 25th53,630,30310,495,69564,125,99867,094,46595.58
October 30th52,828,03513,269,37968,097,41468,295,76596.78

An analysis of advances of the New Zealand trading banks at quarterly intervals has recently been published by the Reserve Bank of New Zealand and is given in the following table. In all cases figures are correct to the nearest £1,000.

Advances to1936.1937.1938.1939.
June.June.June.March.June.Sept.
Farmers—£ (000)£ (000)£ (000)£ (000)£ (000)£ (000)
  Mainly dairy4,9885,1015,4455,0015,3805,469
  Mainly wool5,9075,3686,2556,3536,2886,677
  Mainly meat2,1991,9252,1512,2612,2062,341
  Mainly agricultural297322340494372440
  Mixed4,2954,0584,6274,3454,4384,611
Industries allied to primary production—      
  Dairy companies, factories, &c.1,1991,2791,3082,6021,5052,079
  Freezing-works, meat companies, &c.8658521,7072,5642,8461,438
  Woollen mills276386603646447406
  Other1,5521,6522,0131,4441,6611,284
  Other manufacturing and productive industries3,1163,8564,5874,3184,6414,570
Merchants, wholesalers—      
  Mainly importers3,2393,0843,8043,4533,2823,062
  Others1,0501,3031,0301,4411,3521,060
Retailers2,7903,5053,7673,6013,6383,270
Transport—      
  Shipping344863947994
  Other479534644625627653
Local and municipal authorities, public utility concerns9298451,2628311,5441,274
Stock and station agents7266881,2321,3621,3312,368
Hotels (public and private), restaurants, &c.7868601,1991,1811,1061,141
Financial companies, societies, &c.1,4171,6852,3532,3482,2962,023
Professional1,2041,4501,4341,6271,5031,342
Private individuals4,3555,1565,5445,1705,0294,857
Other3,0803,2192,9362,9872,8512,690
    Total advances44,78547,17554,30554,74854,42253,149

DEBITS AND CLEARINGS.

The following table shows annual aggregates of bank debits and clearings from 1929 to 1938:—

Aggregate for Year.Debits other than Government.Government Debits.Clearings.
 £ (million)£ (million)£ (million)
1929881262529
1930792272473
1931593224343
1932542206307
1933559248352
1934676280430
193568773365
193681783437
193797496518
1938934104499

Debits represent the total amount debited to customers' accounts at all branches, and clearings show the total outward exchanges delivered at all branches. These figures, which have been compiled from the weekly returns furnished by the six trading banks, give a reliable indication of appreciable changes in the volume of business, and strikingly reflect the depressed trade conditions which set in during 1930 and continued downward until the end of 1932. They reveal a gradual improvement in business conditions in 1933, a substantial recovery in 1934 which accelerated rapidly during 1935, 1936, and 1937, and since then a maintenance of activity at approximately the 1937 level. Government debits with trading banks fell to comparatively small proportions as a consequence of the opening of the Reserve Bank.

Averages of debits and clearings for the four or five weeks ending on the last Monday of each month from January, 1935, onwards are next given:—

Month.1935.1936.1937.1938.1939.
Debits, other than Government.
 £££££
January11,470,22613,544,62116,595,61716,707,96815,858,133
February14,578,35016,673,05622,015,86020,942,19721,853,234
March15,649,97218,440,33123,066,48721,520,33122,506,934
April13,792,50517,033,00222,023,34418,831,44519,887,224
May12,864,53916,326,74318,674,23717,858,09119,783,916
June11,949,63714,959,24117,236,41616,577,36017,662,661
July12,236,33114,868,12716,865,39116,704,18217,309,188
August12,149,33314,184,38816,123,59616,224,00216,325,864
September12,832,99313,631,19115,951,18414,868,94914,944,073
October11,930,13114,782,85918,237,76217,714,30117,309,931
November13,144,51815,574,17217,682,40817,040,960..
December15,444,84418,521,34320,041,03521,430,914..
Government Debits.
January1,085,9521,239,6131,580,7651,554,4871,550,018
February1,442,2441,532,4952,093,5162,490,0752,349,581
March1,783,9271,827,4172,304,3612,280,6632,647,761
April1,415,4491,466,4751,910,1821,817,8772,046,933
May1,325,9841,537,0771,833,2031,935,6162,130,145
June1,393,7771,632,1021,717,1441,841,7272,068,472
July1,375,4381,633,8971,708,3801,875,8241,974,419
August1,404,8091,548,5531,716,3691,840,4321,837,911
September1,387,2091,451,6241,605,3181,785,0951,985,718
October1,338,1331,590,7731,795,4652,111,8611,980,188
November1,346,1491,694,3091,784,6802,089,767..
December1,575,5281,803,2931,971,6072,455,967..
Clearings.
January6,242,2067,109,8518,976,1488,743,3058,230,741
February8,053,1969,205,43211,922,21611,533,80111,688,117
March8,594,4353,923,03512,517,51812,361,27712,369,874
April7,062,7668,839,26311,530,3419,662,67210,144,002
May6,827,4418,782,3459,968,5309,757,77210,272,010
June6,395,5678,215,0989,454,2189,005,0749,336,806
July6,391,2618,017,4168,935,0428,797,9558,974,659
August6,530,7897,419,2598,740,6538,525,4098,703,746
September6,653,1387,399,3388,273,0057,855,2777,997,194
October6,351,2517,669,9259,117,2279,014,1909,147,342
November6,912,6698,293,9369,179,4599,378,491..
December8,084,9699,950,26710,710,10611,220,951..

NOTES IN CIRCULATION.

As indicated elsewhere, the Reserve Bank assumed the note-issuing function on the 1st August, 1934. As from the 10th January, 1935, the notes of the trading banks ceased to be legal tender, while on 1st August, 1936, the liability for the remaining outstanding trading-bank notes was taken over by the Reserve Bank, thus completing the process of the transfer of the note-issue to the Reserve Bank. A résumé of legislation dealing with the note-issue is included later in this section under the heading “Coinage and Currency.” The following table shows the position in respect of note-circulation at intervals since September, 1934.

As atNote Issue.Less Notes held by Banks.Net Note Circulation.
Notes of Trading Banks.Notes of Reserve Bank.Gross Total.Notes of Trading Banks.Notes of Reserve Bank.Total.
1934.£££££££
September 24th2,705,7318,664,80211,370,53314,5135,196,6845,211,1976,159,336
December 31st 1935.1,483,4999,772,27911,255,7785,5984,415,8994,421,4976,834,281
June 24th708,0279,111,2709,819,2977463,714,0243,714,7706,104,527
December 30th 1936.584,66810,720,55511,305,2235463,689,4043,689,9507,615,273
June 29th517,74510,040,70510,558,450863,336,5133,336,5997,221,851
December 28th 1937...13,641,45113,641,451..3,198,2273,198,22710,443,224
June 28th..12,630,83812,630,838..3,972,0453,972,0458,658,793
December 27th 1938...15,233,12715,233,127..3,553,7383,553,73811,679,389
March 28th..13,554,46813,554,468..4,018,2904,018,2909,536,178
June 27th..13,774,72413,774,724..4,250,0104,250,0109,524,714
September 26th..13,734,62013,734,620..3,374,3433,374,34310,360,277
December 26th 1939...16,641,42616,641,426..3,571,6653,571,66513,069,761
January 30th..15,365,85815,365,858..4,390,7264,390,72610,975,132
February 27th..14,905,61514,905,615..3,936,1283,936,12810,969,487
March 27th..15,334,04615,334,046..4,158,3214,158,32111,175,725
April 24th..15,658,76215,658,762..3,635,8963,635,89612,022,866
May 29th..15,572,05015,572,050..4,006,5574,006,55711,565,493
June 26th..15,467,28115,467,281..3,935,4863,935,48611,531,795
July 31st..15,693,36415,693,364..3,555,3443,555,34412,138,020
August 28th..15,802,18815,802,188..3,735,3833,735,38312,066,805
September 25th..16,647,69516,647,695..3,227,1403,227,14013,420,555
October 30th..17,371,82017,371,820..4,343,4524,343,45213,028,368

It is of interest to compare briefly the recent statistics of note-circulation shown in the above table with corresponding figures for years prior to 1934. In drawing inferences from such a comparison, some allowance may be necessary for changes in spending habits—e.g., a probable increase in the proportion of retail purchases paid for in cash. In the five years immediately preceding the war of 1914-18 the active note-circulation seldom exceeded £1,700,000, and averaged between £1,500,000 and £1,600,000. At that time gold was circulating freely.

A steady increase in the note-circulation was recorded during the 1914-18 war years, the average net note-circulation reaching £5,450,263 in the December quarter of 1918. The upward tendency continued during the two following years until, in the December quarter of 1920, the relatively high average of £7,243,683 was recorded. It is interesting to note that this figure was not again reached until December, 1935—fifteen years later. The years 1921 and 1922 saw a falling-off in the note-circulation owing to the depression of those years, while a further factor which came into operation about that time was the wider use of cheques by the general public. The low point disclosed by the quarterly averages for these years was £5,944,959 in the September quarter of 1922; the figures for 1923 and 1924 show a recovery to approximately £6,500,000, the net note-circulation varying within comparatively narrow limits for several years afterwards.

As stated above, the increased use of cheques would account largely for the comparative stability of the note-circulation during the relatively prosperous years which followed the 1921-22 slump, and no marked upward trend is revealed by the figures until the last four years. The note-circulation fell away during the 1930-33 slump years to a minimum of £5,496,000 in July, 1931, and seldom exceeded £6,200,000 during the years following. The 1931-32 full in the note-circulation was, however, not by any means as severe as the fall in the volume of cheque transactions. The year 1935 witnessed a measure of recovery in the note-circulation, and successive increases were recorded during each month of 1936, the seasonal tendency towards a slackening in this (and other business indicators) being counteracted by a strong upward cyclic trend in business activity. The note-circulation was particularly buoyant owing to the influence of such factors as the restoration of wage and salary cuts, increased pensions and increased unemployment benefits, together with a lessened volume of unemployment. The upward movement continued more or less steadily during 1937 and 1938, indicating a wider distribution of purchasing-power—a reflection of such governmental measures as a higher-wages policy, increased pensions, greater activity on public works, &c. Between September, 1935, and September, 1938, the increase in the net note-circulation amounted to no less than £3,866,930, or 59.6 per cent. Remarkable as this increase was, the movement accelerated during 1939, the September figure being £3,060,278 (29.5 per cent.) above that for the corresponding month of 1938 and £6,927,208 (106.7 per cent.) above September, 1935.

An analysis of the net bank-note circulation at quarterly intervals is compiled and published by the Reserve Bank of New Zealand, a summary being given in the following table. In all cases the figures quoted are correct to the nearest £1,000:—

1937.1938.1939.
June 28thDec. 27thJune 27thDec. 26thMar. 27thJune 26thSept. 25th
 £ (000)£ (000)£ (000)£ (000)£ (000)£ (000)£ (000)
10s.502679523698574566627
£13,6825,1653,9455,4094,4494,3744,990
£53,5794,9004,0805,8664,9975,3926,434
£50411470528660724775948
Total, Reserve Bank issue8,17411,2149,07612,63310,74511,10712,999
Trading banks' notes outstanding485466449437431425422
Total, net note-circulation8,65911,6799,52513,07011,17611,53213,421

OVERSEAS FUNDS OF BANKS.

Under section 46 of the Reserve Bank of New Zealand Act, 1933, the trading banks are required to supply returns to the Reserve Bank at monthly intervals, showing, inter alia, overseas assets held and liabilities incurred on account of New Zealand business. From these statements, published in the New Zealand Gazette, and the weekly gazetted statements of assets and liabilities of the Reserve Bank, the following table has been compiled.

OVERSEAS FUNDS OF BANKS.

As atTrading Banks' Overseas Assets.Reserve Bank's Holdings of Sterling Exchange.Total Overseas Assets.Overseas Liabilities.*Net Overseas Funds.
In London.Elsewhere.
* Except from 25th July, 1938, these liabilities are wholly those of trading banks.
1934.£(N.Z.)£(N.Z.)£(N.Z.)£(N.Z.)£(N.Z.)£(N.Z.)
July 30th8,821,5388,359,9773,399,401......
December 31st10,618,3288,924,25422,092,02141,634,6031,105,98840,528,615
1935.      
June 24th18,682,7945,813,84422,813,02447,309,6621,285,80846,023,854
December 30th9,754,7176,028,13321,398,94937,181,7991,093,26036,088,539
1936.      
June 29th17,316,6595,900,33422,122,31945,339,3121,382,86743,956,445
December 28th7,907,9165,373,73016,534,42529,816,0711,735,53428,080,537
1937.      
June 28th12,174,1395,027,43521,542,63738,744,2111,788,17536,956,036
December 27th5,199,7763,637,90016,992,74825,830,4242,175,34223,655,082
1938.      
March 28th7,462,0204,200,29016,929,65128,591,9612,027,39926,564,562
June 27th8,308,7993,054,15116,609,19727,972,1471,846,62926,125,518
September 26th4,657,7432,718,11711,449,44718,825,3071,799,59517,025,712
December 26th2,785,2352,214,1324,678,2339,677,6002,870,8676,806,733
1939.      
January 30th4,170,6641,794,0704,133,58610,098,3202,841,6167,256,704
February 27th5,011,3681,704,2774,89,55511,555,2002,496,0079,059,193
March 27th5,422,1891,459,5374,659,87411,541,6002,269,5019,272,099
April 24th5,118,7381,722,3184,659,06111,500,1172,499,7449,000,373
May 29th4,088,4441,661,2864,564,20510,313,9352,919,7967,394,139
June 26th4,668,9551,467,1075,600,69211,736,7542,648,5339,088,221
July 31st4,592,1401,473,8355,576,95711,642,9322,720,4838,922,449
August 28th4,347,9661,492,1595,690,20811,530,3332,647,5588,882,775
September 25th4,577,0001,729,7575,311,68011,618,4373,045,2838,573,154
October 30th4,714,4581,666,7645,743,08712,124,3093,368,0588,756,251

Overseas funds have declined heavily during the last three years, particularly since May, 1938, ascribable to three principal causes—(1) the repatriation of capital temporarily held in the Dominion, (2) over-importation, and (3) investment abroad of New Zealand capital. In December, 1938, the Government took action to check the fall in the sterling funds, and introduced import and export control and also the control of overseas remittances.

POST OFFICE SAVINGS-BANK.

In connection with the Post Office in New Zealand a savings-bank has been conducted since the 1st February, 1867. The minimum deposit receivable, except in certain specified cases, is 1s., and no interest is given on any sum less than £1. The present rate of interest on so much of the deposit as does not exceed £500 is 3 per cent. per annum, and on so much as exceeds £500 and does not exceed £2,000, 2½ per cent. for the amount over £500. No interest is payable to any depositor in respect of any amount of his deposit in excess of £2,000. This provision came into force on the 1st March, 1935.

The Postmaster-General may pay deposits to a maximum of £200 to the legal representative of a deceased depositor without requiring him to take out letters of administration or to prove the will. This provision, together with another provision whereby a depositor may nominate one or more persons to receive part or all of the amount at credit after the depositor's death, enables a widow or orphan to obtain possession of perhaps much-needed funds without either delay or cost.

The number of post-offices open for the transaction of savings-bank business at 31st March, 1939, was 933. There were 118,865 new accounts opened during the year ended the 31st March, 1939, and 92,848 accounts were closed during the period. The total number of open accounts at the 31st March, 1939, was 946,822, or 58 to every 100 of the population, including Maoris.

Year ended 31st March,Number of Depositors at End of Year.Total Amount of Deposits during Year.Total Amount of Withdrawals during Year.Excess of Deposits over Withdrawals.Interest credited.Total Amount to Credit of Depositors at End of Year.
* Excess of withdrawals over deposits.
  £££££
1930852,75728,561,85429,575,994-1,014,140*1,806,41449,436,491
1931878,04324,531,56928,063,338-3,531,769*1,763,82547,668,547
1932877,09019,463,98525,488,081-6,024,096*1,611,04843,255,499
1933797,09716,933,17619,635,928-2,702,752*1,475,87442,028,621
1934798,26219,428,85317,818,1721,610,6811,231,08944,870,391
1935817,61724,179,53720,946,5623,232,9751,320,34849,423,714
1936840,67125,619,77523,533,5962,086,1791,406,45952,916,352
1937880,85730,676,96927,042,0033,634,9661,514,22058,065,538
1938920,80533,041,08229,629,0743,412,0081,669,38463,146,930
1939946,82230434,29234,597,708-4,163,416*1,726,57460,710,087

NOTE.—This statement does not include figures in respect of school savings-bank accounts.

Section 26 of the Finance Act, 1932, provided that moneys lying in savings-bank accounts not operated on for twenty-five years should be treated as unclaimed moneys, which are payable into the Consolidated Fund. Included in the accounts which were closed during 1932-33 were 67,485, the balances of which were paid to the Consolidated Fund in accordance with this provision.

For many years prior to 1920-21, an excess of withdrawals over deposits was an extremely rare occurrence, it being necessary to go back to 1895 to find such an experience. With the exception of 1923-24, however, in each year from 1921-22 up to 1932-33 withdrawals exceeded deposits, the total amount of the excess during that period being £21,500,000. Prior to 1930-31, however, the amount of the excess did not assume any great proportions, with the exception of one year (1927-28), that being the only occasion on which the interest credited to depositors did not more than cover the deficiency. During the next three years, however, the excess of withdrawals was greater than the amount of interest credited to the extent of £7,407,870. In each of the five years following 1932-33 deposits exceeded withdrawals by a substantial amount, with the result that the amount to credit of depositors increased by nearly 50 per cent. during that period. During the latest year (1938-39), withdrawals were exceedingly heavy, while deposits fell away somewhat, an excess of withdrawals amounting to over £4,000,000 resulting. In the first five months of the year deposits exceeded withdrawals, but since September there has been a continuous excess of withdrawals, the aggregate for the thirteen months ended September, 1939, being £9,149,144.

There was a steady increase in the average amount standing to the credit of each depositor up to the 31st March, 1921, but a practically continuous fall was recorded to 1932, when the average open account at 31st March was £49 6s. 4d. The average open account at the 31st March, 1939, was £64 2s. 4d., as against £68 11s. 6d. in 1938.

The following table shows the number of accounts, according to the amount to credit of individual depositors, in the Post Office Savings-bank at the end of the financial years 1937-38 and 1938-39:—

Size of Account.At 31st March, 1938.At 31st March, 1939.
Number.Percentage of Total.Number.Percentage of Total.
£    £    
Under 20632,52968.69655,96869.28
20 and under 5091,6179.9593,4999.88
50 and under 10060,8346.6162,8196.63
100 and under 20050,7865.5153,1325.61
200 and under 30025,3522.7525,9312.74
300 and under 40015,5441.6915,5081.64
400 and under 50011,4241.2410,2831.09
500 and under 6008,9910.988,4870.90
600 and under 7005,1990.574,8440.51
700 and under 8003,7890.413,4710.37
800 and under 9002,8900.312,5470.27
900 and under 1,0002,1970.242,0000.21
1,000 and under 2,0008,1930.897,0780.75
2,000 and under 3,0001,3680.151,1780.12
3,000 and under 4,000810.0158..
4,000 and under 5,0007..12..
5,000 and over 4..7....
Totals920,805100.00946,822100.00

The securities standing in the name of the Postmaster-General on account of the Post Office Savings-bank Fund on the 31st March, 1939, represented a nominal value of £61,187,651. A summary of the investments is as follows:—

 £
In New Zealand Government securities57,576,584
In Government stock of other British countries3,611,067
..£61,187,651

SCHOOL SAVINGS-BANKS.

The school savings-bank scheme was introduced in August, 1934, mainly for the purpose of encouraging thrift amongst young people. An account for each school is maintained in the school savings-banks section of the Post Office Savings-bank, the records of individual depositors' accounts being kept by the headmaster. On a scholar leaving school provision is made for his or her account to be transferred to the ordinary section of the Post Office Savings-bank. Marked progress has been made during the short period the scheme has been in operation. Each year shows a substantial increase in the number of schools adopting the scheme, with a corresponding increase in the number of depositors and the amount at credit.

The following table shows the figures since the scheme commenced operation:—

Year ended 31st March,Number of Schools operating at End of Year.Total Number of Deposit Transactions during Year.Total Amount of Deposits during Year.Total Number of Withdrawal Transactions during Year.Total Amount of Withdrawals* during Year.Excess of Deposits over Withdrawals.Interest credited.Total Amount to Credit of Depositors at End of Year.
* Including transfers to Post Office Savings-bank.
   £ ££££
19358239,5152,5174061732,34412,345
1936236189,91314,5433,6823,16211,3815413,780
1937388248,88022,1796,3068,00214,17729928,256
1938559350,94333,9709,03313,82620,14466049,060
1939764393,89738,85111,72221,36017,4911,11567,666

TRUSTEE SAVINGS-BANKS.

There are five trustee savings-banks—viz., Auckland, established in 1847; New Plymouth, 1850; Dunedin, 1864; Invercargill, 1864; and Hokitika, 1866. The total amount to the credit of depositors at the 31st March, 1939, was £13,865,676, representing an average account of £51 9s. 7d. Figures for the last ten years are as follows:—

Year ended 31st March,Number of Depositors at End of Year.Total Amount of Deposits during Year.Total Amount of Withdrawals during Year.Excess of Deposits over Withdrawals.Interest credited.Total Amount to Credit of Depositors at End of Year.
* Excess of withdrawals over deposits.
  £££££
1930193,0846,703,6226,324,762378,860376,5269,233,505
1931204,4676,555,2866,512,46942,817410,2649,686,586
1932214,5176,168,0326,138,77029,262416,38510,132,233
1933212,6735,678,8435,718,258-39,415*377,72010,470,538
1934219,7325,817,8465,741,98975,857301,31410,847,709
1935227,9256,199,2116,073,447125,764312,58911,286,062
1936238,1086,651,5256,487,282164,243323,17711,773,482
1937249,2277,609,3647,240,419368,945337,69812,480,125
1938261,0198,137,4727,638,820498,652360,63913,339,416
1939269,3358,578,0688,430,467147,601378,65913,865,676

The following table shows the results of the transactions of each of the trustee savings-banks during the twelve months ended 31st March, 1939.

Bank.Number of Depositors at End of Year.Total Amount of Deposits during Year.Total Amount of Withdrawals during Year.Excess of Deposits over Withdrawals.Interest credited.Total Amount to Credit of Depositors at End of Year.
* Excess of withdrawals over deposits.
  £££££
Auckland189,8895,297,0815,213,48883,593242,4108,928,251
New Plymouth17,755679,679628,32551,35429,9181,078,628
Hokitika2,16559,98479,961-19,977*4,741156,843
Dunedin38,549986,611963,25523,35672,4362,527,084
Invercargill20,9771,554,7131,545,4389,27529,1541,174,870
  Totals269,3358,578,0688,430,467147,601378,65913,865,676

Following is a summary of trustee savings-banks investments at the 31st March, 1939:—

Bank.Mortgages.New Zealand Government Securities.Local Authority Debentures.Fixed Deposit.Total.
 £££££
Auckland3,887,3353,124,7761,658,69280,0008,750,803
New Plymouth797,525191,55328,86662,5251,080,469
Hokitika81,43729,00920,61365,440196,499
Dunedin1,613,717284,680702,28880,0002,680,685
Invercargill663,953206,265107,200149,0001,126,418
  Totals7,043,9673,836,2832,517,659436,96513,834,874

SUMMARY OF BANK DEPOSITS.

In the preceding paragraphs statistics of deposits with each of the various classes of banking institutions are shown. It is of interest to show the position in a summary form in respect of all classes of banks.

 As at 31st March, 1939.
 £
Deposits with trading banks67,386,530
Deposits with Post Office Savings-bank60,710,087
Deposits with school savings-banks67,666
Deposits with trustee savings-banks13,865,676
Total of above£142,029,959
Per head of population£87 8s. 4d.

In addition to the classes of deposit shown above, there were on 31st March, 1939, deposits of £4,560,641 with building and investment societies and of £5,084,210 with trading companies. It should be noted also that other classes of deposit exist—e.g., the Common Fund of the Public Trust Office, deposits with local authorities, &c.

COMPANY, ETC., DEPOSITS.

Statistics of deposits with building and investment societies and trading companies are available at quarterly periods since April, 1932. The following table shows at intervals the amounts held on deposit, classified according to the term of the deposit:—

As atBuilding and Investment Societies.Trading Companies.Grand Totals.
At Call.Three Months and under Two Years.Two Years or over.Totals, Building and Investment Societies.At Call.Three Months and under Two Years.Two Years or over.Totals, Trading Companies.
1932.£££££££££
June 30th986,953909,6051,488,3743,384,9324,896,608739,0731,134,6526,770,33310,155,265
December 31st 1933.801,478813,0701,625,6273,240,1754,202,943943,0621,645,8556,791,86010,032,035
June 30th712,192705,7361,752,6043,170,5323,835,539909,7121,705,8766,451,1279,621,659
December 31st 1934.600,853651,2701,929,2883,181,4113,630,657929,7581,629,3306,189,7459,371,156
June 30th603,603650,0002,063,7703,317,3733,511,445895,3351,748,1506,154,9309,472,303
December 31st 1935.591,648613,6122,135,2903,340,5503,178,1621,148,7111,561,8805,888,7539,229,303
June 30th637,592672,7522,122,3503,432,6942,971,313982,3831,990,7305,944,4269,377,120
December 31st 1936.662,756650,7302,245,4103,558,8962,698,4631,067,1261,933,7475,699,3369,258,232
June 30th696,850736,4552,442,2103,875,5152,305,1111,184,7541,910,4395,400,3049,275,819
December 31st 1937.721,934747,3662,439,5883,908,8882,290,6531,203,1871,972,8625,466,7029,375,590
June 30th774,365764,1712,559,8804,098,4162,408,1621,304,6471,835,4865,548,2959,646,711
December 31st 1938.786,566784,4202,654,3374,225,3232,243,4751,219,2291,864,6965,327,4009,552,723
June 30th793,212825,3522,786,7404,405,3042,127,3481,101,8661,927,2485,156,4629,561,766
September 30th791,209861,7412,844,3434,497,2932,061,4971,089,9361,930,1825,081,6159,578,908
December 31st 1939.767,546851,5522,921,6524,540,7502,088,3521,113,7581,930,1655,132,2759,673,025
March 31st761,388842,3172,956,9364,560,6412,151,3531,005,7151,927,1425,084,2109,644,851
June 30th775,967821,1223,032,5424,629,6312,133,3731,030,5891,927,6935,091,6559,721,286
September 30th728,297827,8163,089,7724,645,8852,009,0191,112,9951,915,6895,037,7039,683,588

OVERDRAFT AND DISCOUNT RATES.

The overdraft rates and the rates of discount current in the Dominion were ½ per cent. higher in 1920 than the corresponding rates ruling prior to the outbreak of war in 1914. A further increase of ½ per cent., following a period when importations had been made on a larger scale than at any previous time in the Dominion's history, was made in January, 1921, the demand on banks for money being very considerable. Another aspect of the position was the rapid diminution—from twenty millions to two millions—in the excess of deposits (other than Government) over advances during the closing six months of 1920. It is not surprising, therefore, to find a further increase in the overdraft (and the discount) rates as from March, 1921. There was no further alteration in the rate until January, 1923, when the minimum overdraft rate was reduced to 6½ per cent., a rate which ruled until April, 1927. As a result of financial stringency, occasioned by adverse trade conditions during 1926-27, both the overdraft and discount rates were increased to 7 per cent. in May, 1927. Vastly improved conditions, brought about by the successful export season of 1927-28 and a diminution in imports, were responsible for the reduction of both rates to 6½ per cent. in July, 1928; but by February, 1930, conditions had so changed that a return was made to 7 per cent. in each instance. This rate remained in force until the 1st November, 1931, when a reduction to 6½ per cent. was made, followed by further reductions to 6 per cent. as from the 1st September, 1932, 5 per cent. as from the 1st May, 1933, and 4½ per cent. as from the 30th November, 1934.

The Reserve Bank's minimum discount or rediscount rate for New Zealand bills was originally 4 per cent., but was reduced to 3½ per cent. from the 29th July, 1935, to 2½ per cent. on 2nd March, 1936, and to 2 per cent. on 29th June, 1936. The rate was restored to the original 4 per cent. on 19th November, 1938, but was reduced to 3 per cent. from 6th September, 1939.

DEPOSIT AND INTEREST RATES.

TRADING BANKS.

The following is a schedule (since June, 1912) of the rates paid by the Associated Banks in New Zealand for moneys lodged on fixed deposit:—

Date operative fromThree Months and under Six Months.Six Months and under Twelve Months.Twelve Months and under Twenty-four Months.Twenty-four Months.
 Per Cent.Per Cent.Per Cent.Per Cent.
1st June, 191224 
20th January, 192134
20th June, 19214
11th December, 19264
9th May, 192745
9th July, 19284
1st February, 19305
22nd April, 193045
1st August, 19314
1st June, 193234
2nd December, 19323
11th July, 193323
5th July, 19342
2nd November, 1934

POST OFFICE SAVINGS-BANK.

Following is a statement of the interest rates payable in respect of Post Office Savings-bank deposits since 1914:—

Date operative fromAmount of Deposit:
£1-£300.£301-£500.£501-£1,000.£1,001-£2,000.£2,001-£5,000.

* Rate in existence on 1st January, 1914.

† See paragraph following.

 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
1st January, 1914*544NilNil.
1st January, 192144
1st April, 192844
1st August, 1931
1st April, 19333333
1st August, 193333
1st August, 193433
1st March, 193533Nil.

Prior to 1st January, 1914, the maximum deposit in the Post Office Savings-bank on which interest was payable was £600; but on that date the maximum was raised to £1,000. Between 1st January, 1921, and 1st April, 1928, interest was allowed on deposits up to a maximum of £5,000; but, as from the latter date, the maximum deposit on which any interest is payable is £2,000. In respect of deposits lodged prior to 1st April, 1928, however, interest at 3¼ per cent. on the excess over £500 was still allowed up to a maximum deposit of £5,000; the rate in respect of the amount between £500 and £5,000 being reduced to 3 per cent. from 1st April, 1933, 2¾ per cent. from 1st August, 1933, and 2½ per cent. from 1st August, 1934. Since 1st March, 1935, interest has not been payable in respect of the excess above £2,000 in any account.

TRUSTEE SAVINGS-BANKS.

Under the provisions of the Savings-banks Act, 1908, which applies to trustee savings-banks only, these banks were required to pay interest at the rate of 5 per cent. on deposits of £1 and upwards, but not on fractions of £1 or on amounts of under £1. The maximum amount of deposits on which interest was to be paid was fixed at £100 for each depositor; but by the Finance Act, 1921-22, the maximum was raised to £200, which figure still stands. The banks were empowered to reduce the rate of interest with the consent of the Governor-General after three months' notice given by an advertisement published in the Gazette.

In the National Expenditure Adjustment Act, 1932, provision was made for the fixation by the Governor-General in Council of the maximum rates of interest payable by savings-banks. Ruling rates immediately prior to July, 1932, varied between 4 per cent. and 4½ per cent.; but, by Order in Council, the maximum interest payable was reduced to 3¾ per cent. as from 1st July, 1932, while a further reduction to 3 per cent. was made as from 1st April, 1933.

COMPANY, ETC., DEPOSITS.

Authority was taken in the National Expenditure Adjustment Act, 1932, to fix by Order in Council the maximum rates of interest payable on deposits with stock-and-station agents, trading companies, and building and investment societies. The maximum rates fixed by subsequent Orders in Council have been:—

Period of Deposit.Deposits (including Renewals) taken after—
30th June, 1932.31st March, 1933.31st July, 1934.
Stock-and-station Agencies and Trading Companies.
 Per Cent.Per Cent.Per Cent.
At call or under 3 months
3 months and under 6 months44
6 months and under 12 months
1 year and under 2 years4
2 years and under 3 years55
3 years and over55
Building and Investment Societies.
At call or under 3 months32
3 months and under 6 months3
6 months and under 12 months3
1 year and under 2 Years4
2 years and under 3 years4
3 years and over44

OTHER DEPOSIT AND INTEREST RATES .

It is of service at this stage to mention briefly the interest rates payable in respect of certain other classes of deposits. The highest rate of interest payable on moneys in the Common Fund of the Public Trust Office (see Section XLVI) was fixed at 3 per cent. by Order in Council dated 31st July, 1934, previous reductions having been made from 5¼ per cent. in 1928 to 4¾ per cent. in 1931, 4 per cent. in 1932, and 3½ per cent. in 1933.

Local authorities may also accept deposits (in practice, only for short periods). The present maximum rates of interest on such deposits were fixed by Order in Council dated 31st July, 1933, at: Call and under three months, 2 per cent.; three and under six months, 2¾ per cent.; six months and over, 3 per cent.

References to rates of interest on mortgages will be found in Section XXXII (Mortgages), while interest on Government debt is referred to in Section XXIVc (State Indebtedness).

COINAGE AND CURRENCY.

The consolidating and amending Coinage Act, 1870 (Great Britain), empowered Her Majesty by Proclamation to direct that the whole or any part of the Act should apply to any British possession with or without modification. On the 1st August, 1896, Her Majesty directed that the Parts of the Act, as amended in 1891, that were set out in the Proclamation should be in force in New Zealand from the promulgation of the Proclamation in New Zealand. By Proclamation of the Administrator of 17th March, 1897, it was declared that Her Majesty's Proclamation should take effect from the publication of the Administrator's Proclamation in the Gazette (25th March, 1897).

The Coinage Act, 1920 (Great Britain) altered the fineness of silver coins. Its provisions were adopted for New Zealand by Proclamation of 14th September, 1920.

The melting of current gold or silver coins was made an offence by section 48 of the Finance Act, 1920.

Prior to 1935 the coinage of Great Britain, as determined from time to time by Royal Proclamation under the Act of 1870, was the New Zealand coinage. This is still the position in respect of gold coinage, which has disappeared from circulation.

NEW ZEALAND COIN.

Section 8 of the Finance Act, 1932-33 (No. 2), authorized the Minister of Finance to arrange with the Master of the Royal Mint (in England) for a special issue of silver and bronze coinage of distinctive design for use in New Zealand. Any coins minted in accordance with this arrangement would conform to the standard Mint requirements of weight, fineness, &c., and were given status as legal tender in New Zealand.

Before proceeding with the arrangement as authorized, the question of possible changes in the coinage system (e.g., to a metric basis) was, inter alia, referred to a committee of investigation appointed in May, 1933. This committee, which included representatives of the Treasury, Audit, Industries and Commerce, and Post and Telegraph Departments, together with representatives of the Associated Banks, of the Associated Chambers of Commerce, of retail interests, and of the New Zealand Numismatic Society, in a report released 1st July, 1933, advocated, in the circumstances prevailing, adherence to coins of the existing face-value and recommended mintage in England.

The Coinage Act, 1933, which came into operation on the 1st December, 1933, repealed section 8 of the Finance Act (No. 2), 1932-33, and made necessary provisions in respect of silver and of bronze or cupro-nickel coins. The Act contains no provision for the issue of New Zealand gold coins. Section 5 (4) of the Act authorized Proclamations declaring that British coins (other than gold coins) should not be legal tender in New Zealand, and a Proclamation was issued declaring British silver coins not legal tender in New Zealand on and after the 1st February, 1935.

Arrangements were made under which the Royal Mint agreed to remint free of charge the Imperial and Australian silver coin circulating in the Dominion, replacing it with New Zealand coin of distinctive design, and to allow the New Zealand Government the bullion value of the coin not used in making such replacement.

The profit accruing to the New Zealand Government from the recoinage on this basis arises from the fact that the Australian coinage and a proportion of the British coinage hitherto in circulation in New Zealand contained a larger proportion of silver than is required in the new coin under the standard set out in the Schedule to the Coinage Act, 1933, which is also the standard governing the present production of Imperial silver coin. A much greater profit would have accrued had it been possible to repatriate all such coin at its face-value, which was, of course, the value at which New Zealand actually purchased it. The Commonwealth Government agreed to the repatriation at face-value of a proportion of Australian coin circulating in the Dominion.

Up to 31st March, 1939, New Zealand silver coins have been imported from the Mint of a total face-value of £2,350,000, comprised of the following denominations and respective face-values:—

 £
Half-crown750,500
Florin704,500
Shilling398,500
Sixpence258,000
Threepence238,500

For the recoinage operations Imperial coin of a nominal value of £946,814 and Australian coin of £266,286 nominal value were forwarded to the Royal Mint, and Australian coin to the nominal value of £82,645 was forwarded to Australia, for which £82,645 was received. A further amount of £1,000 in Imperial coin was disposed of at face-value to the Royal Mint. Expenses of the Silver and Bronze Coin Account totalled £160,673 to the 31st March, 1939, at which date there was a credit balance of £1,010,148 in the account.

A schedule to the Coinage Act gives the principal requirements of New Zealand silver coins; these are identical with Royal Mint standards, and are as follows:—

Denomination of Coin.Standard Weight.Standard Fineness.Remedy Allowance.
Imperial Weight.Metric Weight.Weight per Piece.Millesimal Fineness.
* i.e., One-half fine silver, one-half alloy.
 Grains.Grammes. Imperial Grains.Metric Grammes.5
Crown436.3636328.27590500*2.0000.1296
Half-crown218.1818114.13795500*1.2160.0788
Florin174.5454511.31036500*0.9970.0646
Shilling87.272725.65518500*0.5780.0375
Sixpence43.636362.82759500*0.3460.0224
Threepence21.818181.41379500*0.2120.0138

A Proclamation issued on 22nd December, 1939, gives a detailed description of the New Zealand coinage, including the special commemorative centennial half-crown, and sets out the principal requirements in respect of the bronze coinage as follows:—

Denomination of Coin.Standard Weight.Composition.Remedy Allowance for Weight.
Imperial.Metric.
PennyGrains. 145.83333Grams. 9.44984Mixed metal, copper, tin, and zincNot exceeding the weight of one piece in forty pieces.
Half-penny87.500005.66990Mixed metal, copper, tin, and zincNot exceeding the weight of one piece in forty pieces.

Bronze coins, bearing date 1940, were released for circulation in New Zealand in December, 1939.

COIN NOT LEGAL TENDER.

In past years certain private tokens, mainly of penny-size, were issued in times of copper shortages. They have long disappeared, and their issue would now be unlawful.

Australian gold coins (the first Mint was established at Sydney in 1855) were not legal tender abroad until the Royal Proclamation of 1866, although they are understood to have circulated in New Zealand during those years. Under the Coinage Act, 1870 (Great Britain) gold coin struck at all the Australian Mints has been an integral part of the currency of Great Britain, distinguished from that struck at the Tower Mint only by an inconspicuous mint-mark. Australian gold coins, therefore, were and still are legal tender in New Zealand. Australian silver and bronze coins have never been legal tender in New Zealand, although for many years in free circulation at face-value both among the general public and into and out of the banks. The quantity of Australian silver currency in circulation was considerable for some years prior to the introduction of the special New Zealand coinage. The infusion of Australian silver coins increased substantially after the depreciation of the Australian pound in 1930, but comparatively few Australian coins are now in circulation in New Zealand.

No other non-legal-tender coin circulates. As noted above, British silver coin ceased to be legal tender from 1st February, 1935.

RESTRICTIONS ON DEALING IN COIN.

During the period 1914-19 various Orders in Council (now revoked or lapsed) prohibited absolutely, or without the consent of the Minister of Customs, the exportation to a varying extent of silver coin, and in one instance of gold coin. The Finance Act (No. 3), 1934, authorized the issue of Proclamations prohibiting the export of coined gold except with the consent of the Minister of Finance. Previous restrictions in respect of gold are referred to under the next sub-title.

The depreciation of the Australian currency in 1930 created a strong incentive for the substitution of British silver coinage circulating in New Zealand by Australian coins. The depreciation of the New Zealand pound to £ N.Z. 125 = £stg.100 on 20th January, 1933, created a further impetus to this substitution. British silver coins, which would, of course, preserve their face-value in England and elsewhere, were exported in considerable quantities. Accordingly, regulations effective from the 2nd April, 1931, were gazetted under the Customs Act, 1913, and its amendment of 1921, prohibiting the import or export of silver coins save with the consent of the Minister of Customs. These regulations were revoked as from the 23rd July, 1931, and were replaced as from the same date by regulations under the Finance Act (No. 2), 1931. Under the new regulations a person entering New Zealand was permitted to bring with him silver coins to the value of £2, and a person departing to take silver coins of a value of £10 if going direct to the British Isles, or, if otherwise, £5. These sums could be increased only by consent of the Minister of Finance. Later amendments, dating from the 30th March, 1933, and still in force, diminished the latter sums to £5 and £2 respectively. With the advent of New Zealand coins the necessity for these regulations has diminished. Regulations were gazetted in August, 1935, prohibiting the export of any bronze or copper coin, or of any coin inferior in value to silver, except with the consent of the Minister of Customs.

The appreciation in the price of gold having led to a temporarily large trade in. the realization of jewellery and hoarded coin, and to attempts to melt or export the latter, it became necessary to introduce safeguards. The Board of Trade (Coined Gold) Regulations, 1932, were therefore enacted, whereby a system of licenses for dealers was introduced, evidence of character and suitability being required. To enable purchases of coin to be traced a register is required to be kept, open to police inspection. Under an amendment, effective from the 16th November, 1933, delivery of gold coin in the case of purchases must take place in the presence of a notary public, Justice of the Peace, or officer of the police to whom the purchaser is personally known, and whose signature must be affixed to the record.

LEGAL TENDER AND ISSUE OF NOTES.

By a provision of the Coinage Act, 1870 (Great Britain), made applicable to New Zealand, coins of Great Britain were legal tender in New Zealand to the same extent as in Great Britain—viz., gold, to any amount; silver, for amounts not exceeding £2; bronze, for amounts not exceeding 1s. Section 5 (1) of the Coinage Act, 1933, declares that a tender or payment of money, if made in British coins or New Zealand coins of current weight, shall be a legal tender to the extent quoted above. Under section 5 (4) a Proclamation was issued declaring that British silver coin should no longer be legal tender in New Zealand from the 1st February, 1935.

Prior to the establishment of the Reserve Bank under the Reserve Bank of New Zealand Act passed on the 27th November, 1933, the Banking Act, 1908. dealt with the issue of notes generally. The Governor-General in Council could empower any bank to issue and circulate notes, subject to the provisions and restrictions contained in the charter or letters patent under which such bank is incorporated; all such notes to be payable in gold at the office of the bank at the place of issue, and to be a first charge on all assets of the bank.

Under the Bank-note Issue Act, 1893 (amended in 1894 and 1895), certain bank-notes were, for a short period, made legal tender in New Zealand.

On the 5th August, 1914, immediately after the outbreak of the 1914-18 war, an amendment to the Banking Act was passed empowering the Governor-General in Council, from time to time, to make a Proclamation declaring “that the notes payable on demand by any bank therein named, and then issued or thereafter to be issued or reissued within New Zealand under any lawful authority in that behalf, shall during the period limited by the Proclamation be everywhere within New Zealand a good and legal tender of money to the amount therein expressed to be payable.” Conditions governing the issue of such a Proclamation were laid down, and the bank might be required to give adequate security that it would redeem the notes in gold on the expiration of the period covered by the Proclamation. Provision was also made for payment by the State Treasury in case of default by the bank. During the period any such Proclamation was in force coined gold could not be exported except with the consent of the Minister of Finance. During the period between 5th August, 1914, and 5th November, 1919, this prohibition also applied to uncoined gold. Immediately on the passing of the amendment referred to, a Proclamation was gazetted declaring notes of all six banks of issue doing business in New Zealand to be legal tender from the 6th August to the 6th September, 1914. Further extensions were made from time to time. Under the Finance Act (No. 3), 1934, this legislation was repealed as from the 10th January, 1935. The position in respect of export of coined gold has been given under the preceding sub-title, while that in respect of legal-tender notes is next referred to.

The position in respect of the note-issue was radically altered by the Reserve Bank of New Zealand Act, 1933. Section 15 enacted that on and after a date fixed by Proclamation—the Proclamation was signed on the 26th January, 1934, and fixed the date as the 1st August, 1934—the Reserve Bank had the right to issue bank-notes in New Zealand; and thereupon the authority of every other bank to issue or re-issue bank-notes was terminated, and such banks were required to redeem their outstanding notes in Reserve Bank notes or subsidiary coin to the extent to which the latter was legal tender. On the 1st August, 1936, every other bank carrying on business in New Zealand was required to pay over to the Reserve Bank an amount equal to the value of its then outstanding notes issued or payable in New Zealand, and its liability in respect of such notes to the holders was assumed by the Reserve Bank. Bank-notes not presented for payment within forty years, commencing 1st April after date of issue in the case of Reserve Bank notes, or after assumption of liability (as above) in other cases, are deemed not to be in circulation, and an amount equal to the value thereof must be paid into the Consolidated Fund as if unclaimed moneys.

Reserve Bank notes are constituted legal tender up to any amount. There is a provision in the existing legislation which requires the Bank, on presentation at its head office in Wellington of notes to any amount not less than £1,000, to give in exchange sterling for immediate delivery in London. On similar presentation of gold or of sterling for immediate delivery in London, in either case to an amount of £1,000 or more, the Bank must give its notes in exchange therefor. These requirements may be suspended at the discretion of the Minister of Finance, and actually are in suspension at the present time (since 7th December, 1938). The rate of exchange for the above transactions is fixed by the Bank.

The principal Act requires the Bank to maintain a minimum reserve of not less than 25 per cent. of the aggregate amount of its notes in circulation and other demand liabilities; but the Reserve Bank of New Zealand Amendment Act, 1939, empowers the Minister of Finance to vary or suspend this requirement. The term “ reserve “ includes—

  1. Gold coin and bullion in the unrestricted ownership of the Bank.

  2. Sterling exchange, comprising (1) Deposits at the Bank of England, (2) British Treasury bills of not more than three months unexpired currency, (3) bills of exchange bearing at least two good signatures and of not more than three months unexpired currency.

  3. Net gold exchange, as defined in section 17 (c).

The gold coin and bullion of the Reserve Bank has been, and still is, shown in the Bank's books at face-value. The amending legislation of 1939 enables the Minister of Finance to make a revaluation up to the market value of the fine gold contained in the reserve, the resultant profit to be transferred to the Crown.

The Reserve Bank may not issue bank-notes of a less denomination than 10s., except with the authority of the Governor-General in Council. The present issue of notes consists of the following denominations: 10s., £1, £5, and £50.

CURRENCY OTHER THAN LEGAL TENDER .

The use of Australian silver has been referred to in an earlier paragraph. Neither Australian nor other overseas paper-money circulates, presumably on account of the exchange fee charged by the banks on receiving it.

No consideration of the amount of credit currency in use at any moment can overlook the very large proportion of payments made by cheque, mainly upon the trading banks, but also upon trustee savings-banks and upon various stock-and-station agencies which act in this respect for their customers in the capacity of banker. Such cheques usually go straight from the payee to the collecting bank, but occasionally in odd localities they pass from hand to hand, as was the custom in earlier days.

At the present time Government postal notes (issued in thirty-nine denominations of from 1s. to £1) sometimes enjoy a certain life in the form of currency.

NEW ZEALAND STERLING EXCHANGE.

Although the movement of gold, whether internally or externally, was unrestricted in years prior to the war of 1914-18, certain of the conditions usually considered essential in the full operation of the gold standard were never effective in New Zealand. More correctly, New Zealand was, and still is, upon a sterling-exchange standard. The explanation is that the New Zealand banking system is not self-contained, in that the banks normally hold a large amount of funds in London. In fact, these London balances are the real regulative factor and the key to the whole New Zealand banking system.

War conditions caused the abandonment of the gold standard by Great Britain. A return was made in May, 1925, but from September, 1931, Britain again departed from gold. While New Zealand currency was at parity with sterling, except for minor fluctuations above or below parity, no necessity existed for distinction between sterling and New Zealand currency. The latter is entitled to be considered as one of the sterling currencies; but, adopting the convenience of a growing usage, sterling is used herein to refer solely to the currency of Great Britain.

The relationship of New Zealand currency to sterling assumed added significance since December, 1929. Prior to that date the Dominion currency was at virtual parity with British currency, only slight deviations occurring from time to time, but then commenced to depreciate gradually, reaching, in January of 1931, a level of approximately £110 New Zealand = £100 London for telegraphic transfers. At that level it remained fairly stationary until January, 1933, when as a result of Government intervention (referred to below) it was abruptly depreciated to a further degree.

The unusual significance of the currency level in the case of New Zealand depends chiefly upon its position in regard to overseas trade and to overseas borrowings. The course of development of the Dominion has not reached a stage where the country is self-contained to any considerable degree, and the external trade per caput is greater that that of almost all, if not all, other countries. Most of this external trade is with the United Kingdom, while the function of London as an international clearing-house is also of importance in this connection. New Zealand's borrowings overseas, chiefly from the London financial market, have also been upon a high scale, requiring, as noted elsewhere (vide State and also Local Authority Indebtedness), heavy annual payments in London.

The following table gives, in order to complement and interpret other data in this volume, quotations representing the amount of New Zealand currency required to purchase £100 London. The period covered is from January, 1929, to the commencement of Reserve Bank operations (1st August, 1934). Figures are quoted for telegraphic transfer (cable) and sixty-day rates New Zealand on London as sufficiently indicative of the position. The majority of quotations are from The Statist (London), supplemented in a few instances from other sources.

Operative fromBuying (£100 London).Selling (£100 London).
Cable.Sixty Days.Cable.Sixty Days.
* Actually from 15th November, 1928.
1929—    
  1st January* 98⅜100¾99½
  29th July..98⅝10199¾
  4th September..98⅞101¼100
  30th September..98⅞101½100¼
  4th December..99101¾100½
  21st December..99¼102⅛100¾
1930—    
  31st January..99⅝102⅝101¼
  18th February..100⅛103⅛101¾
  19th March..100⅝103⅝102¼
  3rd April..102½105103⅝
1931—    
  14th January..105107½106⅛
  29th January..107½110108⅝
  4th June..107¾110109
  12th October..107½110109
1932—    
  — March..107¾110109
  3rd May..107⅞110109⅛
1933 —    
  20th January (to 31st July, 1934)124½123½125124⅝

From the 1st August, 1934, Reserve Bank quotations for £100 sterling for immediate delivery in London were: Buying rate, £124; selling rate, £125. It was intimated that the policy of the Bank would aim at retaining these rates unchanged for a long period unless there occurred marked changes in existing conditions. To assist in achieving this measure of stability, the Reserve Bank was prepared to enter into forward exchange contracts with the trading banks. While prepared to fulfil its statutory obligations, the Reserve Bank does not desire to compete for exchange business, provided adequate facilities are available elsewhere.

Following the statement of the Reserve Bank's policy, the trading banks adopted as from the 1st August, 1934, a scale of rates representing a reduction of 10s. per £100 on the rates ruling from the 20th January, 1933, to the 31st July, 1934. These rates held until the 21st October, 1938, when the following scale (New Zealand on London) was brought into force: Telegraphic transfers—Buying, £124 10s.; selling, £125. Sixty days—Buying, £123 11s. 3d.; selling, £124 17s. This scale is practically the same as that of the Reserve Bank.

It may be observed that the above exchange rates have not had entirely universal operation. The primary purpose in raising the exchange rates in January, 1933, was to assist the farming community, and the increased exchange was intended only for genuine trading transactions, and did not apply in general to imports of capital, lottery prizes, private investments, &c. Legacies below a certain limit received the premium, and also if the money was intended to be applied to developmental purposes. Cases of hardship were considered on their merits. Revenue, such as interest from overseas investments, received the exchange premium. This position, however, was terminated as from the 1st August, 1934, exchange thenceforward functioning without restriction in this way. As most of the expert credits are utilized for financing imports, it is advisable to note that the full exchange rate is not operative in respect of dutiable goods. This arises from the fact that, although Customs duties are assessed in sterling, payment of Customs duties is accepted in New Zealand currency without addition of exchange.

A proportion, although probably not a large one, of exchange business functions through channels other than those of the recognized banking institutions. Exchange rates in such instances are understood to fluctuate more widely than the “official” rates.

Based upon the average of London daily quotations of gold prices during the month of August, 1939, the New Zealand pound was worth 8s. 11½d. in terms of gold, conversion New Zealand - London being allowed at the ratio 125 = 100.

The course of exchange Australia on London may be noted briefly. As in the case of New Zealand, depreciation of Australian currency commenced at the end of 1929. The principal movements have been (telegraphic transfer, equivalent of £100 London): 18th December, 1929, £102; 17th February, 1930, £103; 10th March, 1930, £104; 24th March, 1930, £106; 9th October, 1930, £109; 6th January, 1931, £115; 13th January, 1931, £118; 17th January, 1931, £125; 29th January, 1931, £130; 3rd December, 1931, £125. It has remained around the last-quoted figure since that date.

EXCHANGE POOL.

In order to ensure that funds would be available overseas to meet all commitments, arrangements were made with the banks in 1931 for the formation of an exchange pool. Regulations were gazetted in December, 1931, under the Customs Act, 1913, and the Board of Trade Act, 1919, prohibiting the export of goods after the 1st January, 1932, except under license. Conditions of such licenses, inter alia, provided for the proceeds of the sale of goods to be paid to an authorized bank to be remitted to New Zealand at the rate of exchange current at the time of payment to the bank.

The system of export licenses terminated as from the 30th June, 1932.

BANKS INDEMNITY (EXCHANGE) ACT, 1932-33.

As a matter of policy the Government arrived at the decision to raise the exchange-rate, New Zealand on London, to a level of approximately £125 New Zealand = £100 London, as from the 20th January, 1933.

At the request of the Government the banks carrying on business in New Zealand raised, as from the date quoted, the rates of exchange based on the rate for the telegraphic transmission of moneys from New Zealand to London. In return the Government undertook to insure the banks against any losses they might sustain by reason of such fixation of the rates of exchange and arising from the purchase and sale of exchange. Legislative sanction was given by the Banks Indemnity (Exchange) Act, passed on the 1st March, 1933.

The Bank of New Zealand was constituted the agent of the Government for this purpose, and was authorized to buy surplus exchange held in London by other banks, or to re-sell to any such bank exchange up to the amount purchased from it under the Act. Sales to or from the Bank of New Zealand were required to be made at the fixed exchange-rate, subject to such concessions as might be mutually agreed upon. Exchange purchased or sold on Government behalf was authorized to be paid for in cash or in Treasury bills, the latter to be discounted at a rate not exceeding the ruling rate fixed for overdrafts on best accounts. Provision was made regarding the issue of Treasury bills, &c., a proportion under the further authority of section 4 of the Finance Act (No. 2), 1932-33, and the investment of exchange purchased under the Act.

From the 20th January, 1933, to the commencement of Reserve Bank operations, exchange purchased and paid into the New Zealand Government Indemnity Exchange Account in London aggregated £36,208,000. The exchange cost of London funds treated as surplus sterling assets (i.e., additional to Government requirements) was £4,899,703. During the year 1934-35, £20,229,700 of sterling funds held by the Government were transferred to New Zealand, the resultant New Zealand credit of £25,084,828 being utilized to redeem outstanding Treasury bills.

The regulation of currency exchange is now a function of the Reserve Bank, as noted previously. Since the Reserve Bank commenced business the Suspense Account created for operations under the Banks Indemnity (Exchange) Act has been liquidated and the outstanding Treasury bills redeemed. The Act was repealed, as from the 1st August, 1934, by the Finance Act, 1934, thus terminating the period in which the rate of sterling exchange was fixed by statute. The Finance Act, 1934, provides that any appreciation or depreciation of the assets of the Reserve Bank (expressed in the currency of New Zealand) due to any alteration that may subsequently be made in the exchange rate, while the value of the local currency is not fixed by statute in terms of sterling, shall be credited to or borne by the Consolidated Fund.

Chapter 29. SECTION XXIX.—INSURANCE.

SUBSECTION A. — LIFE ASSURANCE.

INTRODUCTORY.

THE statutory provisions affecting life assurance in New Zealand are in the main contained in the Life Insurance Act, 1908, and its amendments of 1920, 1921-22, and 1925; the Inalienable Life Annuities Act, 1910; and the Government Life Insurance Act, 1908, and its amendment of 1912. Any association other than a friendly society which issues policies or grants annuities on human life in New Zealand comes within the scope of the enactments. Every life company must deposit with the Public Trustee money or securities of the statutory character to the value of from £5,000 to £50,000, varying within these limits according to the total amount assured by policies current in its New Zealand business. Deposits aggregating £768,870, representing statutory deposits by life-assurance companies, were held by the Public Trustee as at 31st March, 1939.

In the case of composite offices, provision is made for the receipts of life and annuity business to be treated as a separate fund, and the Act safeguards the interest of the policyholder by making such funds available only for liabilities arising from such business.

The law bearing on industrial assurance has received the attention of the Legislature in the Life Insurance Amendment Act, 1920. In this class of assurance the premiums must be payable at shorter intervals than three months, and provision is made for its control by regulation. Companies are required to deposit with the Minister of Finance forms of policy tables, rates, and other documents, and policies must contain only such conditions as have been approved by the Governor-General in Council. Restrictions are placed on the forfeiture of policies in default of payments or other requirements.

Annual returns of life assurance are required to be deposited with the Minister of Finance. It is from these returns that the statistical matter following has been compiled.

Fifteen life-assurance offices were operating in the Dominion during 1938, but two of these no longer transact new business. Of the fifteen, four only are purely New Zealand institutions—namely, the Government Life Insurance Office, the Provident Life Assurance Co., the Dominion Life Assurance Office of New Zealand, Ltd., and the F.A.M.E. Insurance Co;, Ltd.

The statistics here given relate exclusively to business transacted in the Dominion.

LIFE ASSURANCE.—ORDINARY AND INDUSTRIAL.

During the period 1923-30 there was a gradual increase in the amount of new assurances, the latter year producing the then record sum of nearly £15,000,000. In 1931, however, there was a decline of approximately £3,500,000, followed by a further drop of a little over £1,000,000 in 1932. The experience of the following two years showed that the downward trend had been arrested, and satisfactory figures were produced. An increase of nearly £3,000,000 in 1935 saw the previous record established in 1930 exceeded by £430,616. The year 1936, however, resulted in the outstanding increase of £4,643,731 over 1935. In 1937, although the rate of increase was not maintained, the new business exceeded that of the previous year by £3,034,758. The amount written in 1938, however, showed a decrease of £2,530,708 below the 1937 figure. The amount discontinued, which reached its peak in 1932, gradually declined up to and including 1935, the 1935 figure being £2,972,473, or 27 per cent. below that of 1932. In 1936 and 1937 small increases of £46,882 and £189,696 were recorded, followed by a major rise of £1,964,492 in 1938; but this may be regarded as the natural result of the substantial increase in new business during the four previous years. The net result of the transactions for 1938 was to increase the amount in force by £10,293,514, compared with an addition of £14,788,714 in 1937.

Ten years' figures for new business, discontinuances, and amount in force for the combined departments (ordinary and industrial) are given in the table following:—

Year.Policies issued.Policies discontinued.Policies existing at End of Year.
 £££
192914,586,0397,388,794105,271,419
193014,928,1338,132,934112,066,618
193111,410,69910,774,277112,703,040
193210,375,17910,984,419112,093,800
193310,737,7329,955,758112,875,774
193412,378,2438,697,260116,556,757
193515,358,7498,011,946123,903,560
193620,002,4808,058,828136,013,097
193723,037,2388,248,524150,801,811
193820,506,53010,213,016161,095,325

During the ten years from 1928 to 1938 the amount in force has increased by £63,021,151, or by nearly 64 per cent. The increase in the Dominion's population, excluding Maoris, during the same period was 9.3 per cent. Policies existing at the end of the year represented a rate of 359 per 1,000 of population (other than Maoris) for 1928 and 523 per 1,000 for 1938. The sum assured rose from £70 per head of population in 1928 to £105 per head in 1938.

ORDINARY LIFE ASSURANCE.

A table showing the progress of business over a period of ten years is given below:—

Year.Policies issued.Policies discontinued.Policies existing at End of Year.
Number.Sum assured.Annual Premiums.Number.Sum assured.Annual Premiums.Number.Sum assured.Annual Premiums.
  ££ ££ ££
192928,18911,534,102393,68517,4415,515,811194,040258,13692,130,2892,997,567
193028,32111,975,361413,69618,1065,969,955207,937268,35198,135,6953,203,326
193124,5089,166,928311,90422,6608,125,699281,384270,19999,176,9243,233,846
193222,3538,123,793280,57724,4038,594,783300,341268,14998,705,9343,214,082
193324,5038,357,590282,75622,8427,995,447281,020269,81099,068,0773,215,818
193428,5549,778,967312,84820,4446,999,072246,476277,920101,847,9723,282,190
193535,19912,605,789400,14019,1266,292,730216,015293,993108,161,0313,466,315
193646,02616,812,497539,44118,8876,442,382222,380321,132118,697,0313,783,376
193750,98919,376,772606,72019,7026,475,775223,508352,419131,598,0284,166,588
193844,21116,943,706510,84122,7548,222,169292,821373,874140,319,5654,384,608

New business in 1938 failed to reach the 1937 level by £2,433,066, but is slightly in excess of the corresponding figure for 1936. New policies taken out in the four years 1931 to 1934 amounted to £35,000,000, approximately £15,000,000 less than the total which might have been expected had not the economic depression intervened. Evidence that the demand was merely postponed is seen in the figures for the period 1936-38, and, as this demand appears to have been satisfied, it may reasonably be assumed that new issues are returning to the level indicated by the long-term trend. In 1932 discontinuances actually exceeded new assurances both in number and in sum assured. During the succeeding three years, however, substantial decreases were recorded for discontinuances, the 1935 figure being £2,302,053 below that of 1932. A considerable rise in the amount written off might have been expected during 1936 and 1937 on account of the abnormal amount of new business transacted, but the 1936 figure was only £149,652 above that of 1935, and 1937 recorded a further increase of £33,393 only. The 1938 discontinuances, however, added £1,746,394 to the previous year's total. As a result of the year's transactions, the amount in force rose by £8,721,537, as against the previous year's increase of £12,900,997

The average sum assured per new policy taken out in 1938 was £383, compared with £380 in 1937 and £404 for the average of the pre-depression period 1926-30. In 1930 this figure had reached £423, but a sharp decline of £49 in 1931 was followed by further decreases in 1932 and 1933, the figure for the latter year being £341. Since then a steady upward movement has been recorded. The per-policy average premium for new assurances in 1938 was £11 11s. ld., compared with £13 17s. for the period 1926-30, £14 12s. 2d. in 1930, and £11 18s. 0d. in 1937.

The corresponding figures for total assurances in force at the end of 1938 are £375 and £11 14s. 7d. respectively.

Particulars of policies discontinued during the last five years are contained in the next table.

Year.Death.Maturity.Surrender.Lapse.Other Causes.Totals.
Number of Policies.
19341,7093,5956,4808,34231820,444
19351,7363,4905,4668,03340119,126
19361,8603,8054,7478,12934618,887
19372,0303,7334,2889,12752419,702
19382,2625,2574,45510,12565522,754
Sum assured.
 ££££££
1934739,757739,6202,278,1672,985,448256,0806,999,072
1935707,790698,8651,835,5372,799,274251,2646,292,730
1936767,539771,3511,603,0763,065,829234,5876,442,382
1937773,239813,4911,349,4583,212,694326,8936,475,775
1938971,3441,574,0981,526,4953,780,806369,4268,222,169

The outstanding feature revealed by the 1938 figures is the phenomenal rise in maturities, the sum assured which was discontinued for this reason having increased by 93 per cent. over the previous year. The greater part of the increase, however, is the result of assurance companies having advanced to citizens moneys required to invest in a special loan issue during the war of 1914-18. These advances were secured by the investments and also by assurance policies which were dated to mature in 1938. The rise in discontinuances by death is also substantial, the 1938 figure being 26 per cent. greater than the 1937 total. This is due partly to the increased popularity of life assurance and partly to a higher death-rate, the crude death-rate having risen from 9.08 per thousand of mean population in 1937 to 9.71 in 1938. Lapses and surrenders show increases commensurate with the increased new business of recent years. The total amounts written off represent for 1937 and 1938 5.46 per cent. and 6.25 per cent. respectively of the amount in force at the end of the year immediately preceding.

Reducing the amounts in the foregoing table to a percentage basis, the following result is arrived at:—

Year.Death.Maturity.Surrender.Lapse.Other Causes.Total.
193410.5710.5732.5542.653.66100.00
193511.2511.1129.1744.483.99100.00
193611.9111.9724.8947.593.64100.00
193711.9412.5620.8449.615.05100.00
193811.8119.1518.5745.984.49100.00

Discontinuances during 1938 because of death accounted for 0.74 per cent. of the total amount in force at the end of 1937, maturity for 1.20 per cent., surrender for 1.16 per cent., and lapse for 2.87 per cent.

A statement of the income and outgo of all the companies operating in the Dominion, so far as ordinary business only is concerned, further illustrates the progress of business during the last ten years. The ratio of management expenses to premium and total receipts is also given.

Year.Receipts and Expenditure.Expenses of Management.
Total Receipts, excluding Transfers.Total Expenditure, excluding Transfers.Excess of Receipts.Amount.Proportion to Premium Receipts.Proportion to Total Receipts.
 ££££Per Cent.Per Cent.
19294,139,9292,655,7671,484,162453,39615.3210.95
19304,495,0002,863,7661,631,234465,45614.7510.35
19314,943,2563,334,2501,609,006426,13613.338.62
19324,726,9183,421,9711,304,947415,28913.128.79
19334,856,1623,547,2941,308,868431,75513.328.89
19345,113,5673,511,5181,602,049467,91313.949.15
19355,386,1003,364,7032,021,397544,07914.9010.10
19365,959,7613,632,3082,327,453654,04716.1010.97
19376,375,4253,715,8532,659,572731,76616.1911.48
19386,531,8104,995,5481,536,262700,27314.9410.72

The increase in the expense ratio in 1936 was mainly due to the amount of commission consequent upon a large increase in the volume of new business. Excluding commission, the ratio of management expenses to premium income was 7.83, 7.85, 7.48, and 7.46 respectively for the years 1935 to 1938 inclusive.

ORDINARY LIFE ASSURANCE. -RECEIPTS AND EXPENDITURE (EXCLUDING TRANSFERS).

1934.1935.1936.1937.1938.
    Revenue.£££££
Renewal premiums2,943,3393,129,6083,341,3203,689,6823,992,861
New premiums413,441522,645721,065830,946695,212
Consideration for annuities140,652169,849193,942160,091105,035
Interest1,549,9831,558,5881,660,6461,688,3771,735,415
Other revenue66,1525,41042,7886,3293,287
  Total revenue5,113,5675,386,1005,959,7616,375,4256,531,810
    Expenditure.     
Claims by death and maturity2,051,3671,979,0322,124,9882,187,6963,447,276
Annuities52,80064,00976,56789,08695,814
Surrenders680,432557,141522,782442,729441,954
Cash bonuses82,09461,64255,27346,50746,462
Management467,913544,079654,047731,766700,273
Taxes123,417130,565165,464195,476210,734
Other expenditure53,49528,23533,18722,59353,035
  Total expenditure3,511,5183,364,7033,632,3083,715,8534,995,548

The increases in discontinuances by death and maturity are clearly seen in the expenditure section, claims by death and maturity being equivalent to 74 per cent. of the 1938 premium income, compared with 48 per cent. in 1937.

INDUSTRIAL ASSURANCE.

New industrial assurances for 1938 failed to attain the 1937 level, but are still substantially in excess of the 1936 total. New business in the industrial department, however, reached the peak increase over the previous year in 1937, while ordinary assurance recorded its greatest gain in 1936. Discontinuances show an increase of £218,098 (12 per cent.) during 1938.

A summary of the progress of industrial assurance business is given in the following table:—

Year.Policies issued.Policies discontinued.Policies existing at End of Year.
Number.Sum assured.Annual Premiums.Number.Sum assured.Annual Premiums.Number.Sum assured.Annual Premiums.
  ££ ££ ££
192956,0603,051,937188,53038,2031,872,983120,455273,76913,141,130787,274
193053,6762,952,772182,30643,0392,162,979138,231284,40613,930,923831,349
193143,1732,243,771140,71151,3232,648,578167,169276,25613,526,116804,891
193246,0302,251,386137,73947,1482,389,636152,315275,13813,387,866790,315
193352,2232,380,142144,98333,7141,960,311123,559288,64713,807,697811,739
193457,3382,599,276158,48635,2551,698,188104,369310,73014,708,785865,856
193558,1912,752,960165,21235,1951,719,216104,175333,72615,742,529926,893
193664,3843,189,983192,40033,1031,616,44698,588365,00717,316,0661,020,705
193768,6303,660,466218,00635,0331,772,749107,852398,60419,203,7831,130,859
193865,3963,562,824210,25437,0641,990,847118,176426,93620,775,7601,222,937

As a result of the year's transactions, the amount in force has increased by £1,571,977 compared with the previous year's increase of £1,887,717. The average sum assured under each policy of new business effected in 1930 amounted to £55, with an annual premium of £3 7s. 11d. From that year onwards a steady decline was recorded in this respect up to and including 1934, but the 1935 and 1936 figures showed a slight improvement. In the last two years, however, the 1930 level has been almost regained, the 1937 averages being £53 and £3 3s. 6d., and those for 1938 £54 and £3 4s. 4d. respectively.

A summary of the number of industrial policies and the sums assured written off according to the several causes is now given in the form of a five-years table.

Year.Death.Maturity.Surrender.Lapse.Other Causes.Total.
Number of Policies.
19341,8855,8612,58524,69722735,255
19351,9575,1632,35125,49423035,195
19362,0196,0891,80623,02916033,103
19372,3707,5671,44623,49615435,033
19382,7197,6441,61324,84923937,064
Sum assured.
 ££££££
193468,992212,680129,4601,273,57013,4861,698,188
193571,823198,771113,6091,321,04913,9641,719,216
193673,932244,64391,9861,195,9909,8951,616,446
193785,979310,50875,0241,286,02915,2091,772,749
1938101,953331,85084,7211,454,65617,6671,990,847

Each cause shows an increase in 1938, including surrenders, which bad recorded a continuous decrease since 1932. Death claims rose by £15,974, maturities by £21,342, and lapses by £168,627. The last-mentioned increase (a substantial one which brings the 1938 total to a figure only a little less than that of 1933) is not unexpected in view of the volume of new business during the past three years.

The amount written off in each year is considerably greater in proportion in the Industrial than in the Ordinary Branch. Whereas in the case of the latter 6.25 per cent. of the amount in force at the end of 1937 became void during 1938, the corresponding percentage for industrial assurance was 10.37. The cause showing the greatest difference in this respect is “lapses,” the proportions of total discontinuances for 1938 being 45.98 per cent. for the Ordinary Section and 73.07 per cent. in the Industrial Section, and the percentages of the amount in force at the end of 1937 lapsing being 2.87 and 7.57 respectively. Surrenders, on the other hand, are considerably less in proportion in industrial assurance, the percentage of the amount in force at the end of 1937 written off on this account during 1938 being 0.44. as against 1.16 in the Ordinary Section.

INDUSTRIAL ASSURANCE.—INCOME AND OUTGO.

Year.Receipts and Expenditure.Expenses of Management.
Total Receipts, excluding Transfers.Total Expenditure, excluding Transfers.Excess of Receipts.Amount.Proportion to Premium Receipts.Proportion to Total Receipts.
 ££££Per Cent.Per Cent.
1929869,071603,228265,843264,31335.0330.41
1930944,406700,613243,793275,63633.9529.19
1931952,302767,129185,173261,46732.3427.46
19321,010,507771,068239,439257,72832.3825.50
19331,011,174693,676317,498264,62433.2026.17
19341,106,939697,683409,256285,11133.7325.76
19351,150,183671,534478,649295,80032.8125.70
19361,249,560733,358516,202319,45432.7125.57
19371,367,671853,476514,195351,19932.6125.68
19381,486,416932,894553,522370,56431.4524.93

An indication of the growth of this type of business may be found in the yearly accretion to the funds, the annual excess of receipts over expenditure having rather more than doubled during the ten years covered by the above table. During the years 1932-34 there was a slight but steady rise in the management-expense ratio, but the later figures show a downward trend which, in view of the additional amount of new business transacted, must be considered very satisfactory. From the foregoing table it will be seen that the ratio of management expenses to premium income for 1938 was 31.45 per cent. The corresponding ratio in the Ordinary Branch was 14.94 per cent. The difference is largely accounted for by the high cost of collection of premiums in the Industrial Branch, principally in the shape of renewal commission. In the Ordinary Branch commission (new and renewal) was equivalent to 7.48 per cent. of the premium income, and in the Industrial Branch to 20.57 per cent. Excluding commissions, the ratio of management expenses to premium income works out at 10.88 per cent. in the Industrial Branch, as against 7.46 per cent. in the Ordinary.

INDUSTRIAL ASSURANCE.—RECEIPTS AND EXPENDITURE (EXCLUDING TRANSFERS).

1934.1935.19361937.1938.
    Revenue.£££££
Premiums845,213901,507976,4851,077,0971,178,362
Interest232,568241,530266,717283,112299,341
Other revenue29,1587,1466,3587,4628,713
Total revenue1,106,9391,150,1831,249,5601,367,6711,486,416
    Expenditure.     
Claims by death and maturity325,274300,657350,672437,771485,701
Surrenders39,35342,75130,77926,44726,602
Management285,111295,800319,454351,199370,564
Taxes18,09119,64724,93729,84433,116
Other expenditure29,85412,6797,5168,21516,911
    Total expenditure697,683671,534733,358853,476932,894

LIFE ASSURANCE DEATH-RATES.

The following table shows for the period 1929-38 the death-rate per thousand policies exposed to risk in each year. In computing these rates all policies which were in force for any portion of the year have been taken into account.

Year.Death-rate Per 1,000 Policies.
Ordinary Life Assurance.Industrial Life Assurance.Ordinary and Industrial combined.
19295.715.545.62
19305.905.265.56
19315.635.365.49
19325.785.735.75
19335.825.245.52
19345.735.455.58
19355.545.305.41
19365.475.075.26
19375.465.475.46
19385.705.865.79
  Decennial average5.675.445.54

The rates show very little variation over the period. With the exception of the last two years, the rate in the “Industrial” section is below that of the “Ordinary,” due, no doubt, to the generally younger ages in the former. This factor, however, would be counteracted to a certain extent by the fact that the “Ordinary” section consists for the most part of selected lives.

LIABILITIES AND ASSETS.

The balance-sheets of the companies transacting industrial business do not in every case apportion their liabilities and assets over ordinary and industrial business, for, although the legislation in force requires separate statements to be furnished of receipts and expenditure, policies issued and discontinued, &c., no such requirement exists in regard to balance-sheets. The figures presented below accordingly refer to both classes of assurance, and, as indicated earlier in this subsection, relate to New Zealand business only.

The apparent decrease in 1938 in both the “Other liabilities” and “Other assets” in the two following tables is accounted for by the fact that one company, which had previously furnished separate balance-sheets for the ordinary and industrial departments, has on this occasion presented a combined balance-sheet. The principal asset of the industrial balance-sheet had been an amount invested with the funds of the ordinary department, with a corresponding liability in the “ordinary” balance-sheet. These items have now been eliminated.

The aggregate capital and the liabilities at the end of 1938, as compared with the two preceding years, were as follows:—

 1936.1937.1938.
 £££
Paid-up share capital224,806225,650225,778
Life assurance and annuity funds44,484,97146,396,66247,951,999
Depreciation, reserve, and other special funds704,488721,223711,521
Claims admitted but not paid278,089310,827387,723
Other liabilities1,368,4981,420,006484,405
    Totals£47,060,852£49,074,368£49,761,426

Noticeable features of the table following are the steady increases over the period in the amounts invested in mortgages and, with the exception of the year 1938, in municipal or local authorities' securities. The increase in the former since 1933 totals £3,496,077 (46 per cent.) and in the latter £3,925,075 (28 per cent.). Landed and house property has also shown a steady increase mainly due to the erection of modern office premises by the various companies concerned. Government securities, on the other hand, have fluctuated somewhat. Since 1933 there has been a slight but consistent decline in the amount of loans on policies, and during the last three years a substantial decrease in cash in hand or on fixed deposit. Owing to the lack of suitable investments during the period 1932-35, the latter item had reached the huge amount of £1,388,107 by the end of 1935, despite the fact that during that year £667,623 was transferred to the companies' head offices overseas. A reduction in this balance of nearly 50 per cent. in 1936, especially when transfers totalled £308,358 only, indicates that assurance companies were investing freely in suitable securities. In 1937 transfers overseas amounted to £1,427,528, and cash in hand, &c., showed a decrease of £87,877 compared with 1936, the corresponding figures for 1938 being £595,276 and £153,718 respectively.

The New Zealand assets at the end of each of the five years 1934-38 were as follows:—

Assets.1934.1935.1936.1937.1938.
 £££££
Mortgages on property7,990,9288,491,5189,361,58510,466,62011,148,078
Loans on policies5,896,0595,861,4385,771,6715,680,0455,534,510
New Zealand Government securities8,657,1478,263,4339,382,0738,664,5028,613,175
Securities of other Governments91,608544,82183,89589,839696,320
Municipal and local authorities' securities14,736,43715,626,04917,029,48318,201,37818,008,065
Landed and house property1,519,6321,650,9181,863,7652,087,5822,395,722
Other investments182,79390,929118,703115,624492,891
Loans on personal security1,2991,3838891,137996
Agents' balances6,11111,7886,58010,09213,460
Outstanding premiums346,258335,091371,836389,711415,270
Interest accrued, &c.507,352484,162486,127481,352515,404
Cash978,91,388,107730,021642,144488,426
Other assets1,247,4701,432,1311,854,2242,244,3421,439,109
    Totals42,162,01444,181,76847,060,85249,074,36849,761,426

STATE LIFE ASSURANCE.

The Life Insurance Department of the New Zealand Government was founded in 1869, at a time when New Zealanders had comparatively poor facilities in regard to life assurance. Payment of all policies with the State Office is guaranteed by the Government. Industrial assurance is not transacted by the Department.

The table on the next page gives a synopsis of the activities of the Department for the last ten years in so far as the amount of business transacted is concerned. Contrary to the general experience, the sum assured written by the Department in 1938 exceeded by a small margin (£4,466) the then record figure of £3,431,940 for 1937. The number of policies issued and the premiums thereon have, however, fallen in comparison with 1937.

The total income of the Department for 1938 was £1,287,391—viz., premium income. £802,230; interest and rents (after payment of land and income tax), £462,162; annuity purchase money, £22,999. Corresponding figures for 1937 were: total income, £1,219,305; premium income, £765,146; interest, &c., £409,387; and annuity purchase money, £44,772.

Year.New Business.Policies in Force at End of Year.
Number of Policies.Premiums.Sum assured.Number of Policies.Premiums.Value of Business.
Sum assured.Bonuses.Total.
  ££ ££££
1,9295,73562,4141,918,60070,189642,14020,700,0692,265,53922,965,608
19305,78062,1371,946,32271,868665,44721,418,4132,426,62123,845,034
19314,03340,5291,506,44971,075660,39921,472,7612,580,58724,053,348
1,9322,97930,5201,088,44568,650638,42620,910,8112,708,94823,619,759
19333,57231,5791,295,65667,567625,90520,769,2922,805,17723,574,469
19344,68237,1071,661,48468,094625,08521,191,1682,893,45324,084,621
19355,67047,9442,005,99569,982638,37122,050,2763,001,01625,051,292
19368,41966,7692,863,80174,691670,43323,761,2533,136,72226,897,975
19379,78077,7703,431,94080,959716,80726,099,4493,309,68729,409,136
19389,33170,5063,436,40686,155746,26828,184,7803,463,35931,648,139

During the year 1938 payments (including bonus additions) to the value of £537,285 (an increase of £193,511 over 1937, which is chiefly due to war-loan policies maturing) were made on account of matured policies, and £221,198 was paid out to representatives of deceased policyholders. Commission totalled £58,872 and other expenses of management £69,621, making the total management expenses £128,493. The ratio of expenses to total income was 9.73 per cent., and to premium income 15.18 per cent., compared with 10.35 per cent. and 15.58 per cent. respectively for 1937.

The total assurance, annuity, and endowment funds, apart from special reserves of £404,045, amounted at the end of 1938 to £10,575,749, an increase of £226,501 during the year.

The usual bonus investigation by the Actuary disclosed a net surplus of £235,433 (excluding interim bonuses paid during the year) in respect of 1938. Of that sum, £220,192 was allotted in the form of compound reversionary bonuses upon the sum assured and existing bonuses, the total reversionary bonuses thus allotted amounting to £366,219.

The Department's balance-sheet on the 31st December, 1938, showed that the total assets amounted to £11,055,165, and were invested as shown in the following statement, which also gives the distribution of the assets at the end of the four preceding years for purposes of comparison:—

Class of Investment.1935.1934.1936.1937.1938.
* Mainly due and overdue premiums and interest, and interest accrued.
 £££££
Mortgages on freehold property3,801,3693,818,0603,901,0324,575,8544,721,758
Loans on policies1,272,1751,257,6921,235,6481,242,9271,240,174
Government securities2,520,0602,517,2603,403,5452,519,1602,532,861
Local authorities' securities1,284,3351,249,7781,187,2901,798,3221,759,580
Landed and house property158,294219,639279,252394,268492,386
Miscellaneous assets*243,301228,377216,697228,577226,265
Cash in hand, on current489,225816,925250,56694,30582,141
account, and on deposit     
Totals9,768,75910,107,73110,474,03010,853,41311,055,165

The proportions of the amounts invested in the various classes of securities to total assets are as follows: Mortgages, 42.7 per cent.; Government securities, 22.9 per cent.; local authorities' securities, 15.9 per cent.; loans on policies, 11.2 per cent.; landed and house property, 4.5 per cent.; and “other,” 2.8 per cent.

SUBSECTION B.—ACCIDENT INSURANCE.

INTRODUCTORY.

IN terms of the Accident Insurance Companies Act, 1908, accident-insurance policies may be issued by any association, whether incorporated or not, provided such association is not established under any Act relating to friendly societies. The principal contingencies for which policies may be issued are in respect of—

  1. Accident, disease, or mental or physical disability;

  2. Employers' liability under statutory or common law;

  3. Charges under the Workers' Compensation Act taking precedence of encumbrances, mortgages, or charges lawfully existing.

With the huge increase in motor traffic an important class of policy—viz., motor-car comprehensive, has come into existence, and has increased rapidly. Compulsory insurance to cover third-party risks was introduced in 1929, and is referred to later on in this subsection. Other important classes of accident-insurance policies are in respect of plate-glass insurance and fidelity-guarantee insurance.

Information relating to cash deposits required from companies transacting accident-insurance business is contained in the next subsection, which deals with the cognate subject of fire insurance.

INCOME AND OUTGO.

The number of insurance offices transacting accident business in New Zealand in 1938 was 58, the head offices of the companies concerned being domiciled as follows: Great Britain, 23; Australia, 11; Hong Kong, 1; and New Zealand, 23. The number of branches established in the various towns, &c., was 227, and the total number of agencies was 15,150.

During the last five years both premiums and claims have registered steady increases, the 1938 figure in each case being considerably more than double that of 1933, while the total for the pre-depression peak year 1930 has been exceeded by £871,435 (53 per cent.) and £550,829 (55 per cent.) for premiums and claims respectively. The 1938 premium receipts were £381,889 (18 per cent.) greater than in 1937, while claims exceeded the previous year's figure by £130,539 only (9 per cent.). Expenses other than claims amounted to £776,991 in 1938. the net result for the year being an excess of premium receipts over expenditure to the extent of £170,783. In 1936 and 1937 expenditure actually exceeded premium income.

Year.Number of Offices.Income.Expenditure.
Premiums.Other Income.Total.Claims.Commission.Salaries.Other Expenses.Total.
  ££££££££
1929511,560,241102,4791,662,720915,502222,260167,955143,4871,449,204
1930511,635,661109,7881,745,4491,008,493214,507174,461151,5141,548,975
1931521,417,855108,4151,526,270957,644181,099161,366156,3771,456,486
1932531,225,74293,3481,319,090741,185141,051154,554144,6271,181,417
1933571,178,93687,2451,266,181679,826135,052152,080145,3801,112,338
1934581,301,75590,8861,392,641717,355154,978164,658164,0701,201,061
1935581,421,05591,7821,512,837891,874160,747170,088181,5311,404,240
1936581,678,85285,1331,763,9851,119,936194,746198,761186,9001,700,343
1937572,125,20798,1362,223,3431,428,783261,656239,089205,5032,135,031
1938582,507,09699,1552,606,2511,559,322305,934256,500214,5572,336,313

An interesting review of the expenses incurred in transacting accident insurance is contained in the table following. The fluctuations over a period of ten years are shown in percentages of outgo to income under various heads.

Year.Ratio per Cent. of
Claims to Premiums.Commission to Premiums.Salaries to Premiums.Other Expenses to Premiums.Total Expenses (other than Claims) to Premiums.Total Expenditure to Premiums.Total Expenditure to Total Receipts.
192958.6814.2410.769.2034.2092.8887.16
193061.6613.1110.679.2633.0494.7088.74
193167.5412.7711.3811.0335.18102.7295.43
193260.4711.5012.6111.8035.9196.3889.56
193357.6611.4612.9012.3336.6994.3587.85
193455.1111.9112.6512.6037.1692.2786.24
193562.7611.3111.9712.7836.0698.8292.82
193666.7111.6011.8411.1334.57101.2896.39
193767.2312.3111.259.6733.23100.4696.03
193862.2012.2010.238.5630.9993.1989.64

The ratio of claims to premiums, which between 1934 and 1937 rose from 55.11 per cent. to 67.23 per cent., shows a slight decrease for 1938. The ratio of commission to premiums, which during 1936 and 1937 showed an appreciable increase after an almost continuous downward movement since 1925, has recorded a slight decrease when compared with 1937. Although the remaining management-expense items have risen considerably since 1933, the effect has been more than counteracted by the exceptionally heavy premium increases, with the result that the expense ratio has fallen from 37.16 per cent. in 1934 to 30.99 per cent. in 1938.

The ratio of total expenditure to premiums, as borne out by the figures in the preceding table, is indicative of the effect of the economic depression with the expected time-lag on the expenditure side. Expenditure exceeded premium income in 1931. 1936, and 1937, the ratios for those years being 102.72 per cent., 101.28 per cent., and 100.46 per cent. respectively, in comparison with 93.19 per cent. for 1938.

ANALYSIS OF PREMIUMS AND CLAIMS.

In the following table, particulars of premiums and claims for the three main classes of accident insurance are given for the last five years. It will be noticed that there is an apparent discrepancy between the totals of premiums and claims as shown herein and the figures already quoted. This is accounted for by the fact that, in order to arrive at the net financial results of the year's operations, it is necessary to take into account reinsurance transactions, and up to this stage of the discussion premiums and claims have been taken at the net figure.

Year.Employers' Liability.Personal Accident.Motor-vehicle.Other Forms.Totals.
 £££££
Premiums.
1934485,931129,559661,72565,1391,342,354
1935533,087151,522716,73471,0921,472,435
1936643,705173,496859,30681,8781,758,385
1937847,546192,4361,115,33690,2352,245,553
1938942,483205,7881,377,473101,2252,626,969
Claims.
1934314,37657,160383,58215,473770,591
1935334,71462,155475,02718,282890,178
1936404,74374,331691,15921,6601,191,893
1937490,28374,050891,36119,5551,475,249
1938554,04185,106942,88223,8161,605,845

Compared with 1937, gross premium income in 1938 increased by £381,416, as against an increase of £487,168 in 1937. Of the increase for 1938, motor-vehicle insurance was responsible for £262,137, employers' liability for £94,937, and personal accident for £13,352. Total claims show an increase of £130,596 over the 1937 figure, motor-vehicle insurance accounting for £51,521, and employers' liability for £63,758, while personal accident and other forms of accident insurance, which recorded slight decreases in 1937, increased by £11,056 and £4,261 respectively in 1938. Since 1933 employers' liability premiums have considerably more than doubled, steady increases having been recorded during each of the five years. The large increase in the numbers of motor-vehicles licensed during recent years has caused this class to assume an increasingly dominant position in accident insurance business; so much so, that in 1938 premiums from this source exceeded the combined premium income from all other classes of accident insurance.

Reducing the figures for each of the last three years to a percentage basis, the following results are arrived at:—

Class of Insurance.Claims to Premiums.Premiums to Total Premiums.Claims to Total Claims.
1936.1937.1938.1936.1937.1938.1936.1937.1938.
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
Employers' liability62.8857.8558.7936.6137.7435.8833.9633.2334.50
Personal accident42.8438.4841.369.868.577.836.235.025.30
Motor-vehicle80.4379.9268.4548.8749.6752.4457.9960.4258.72
Other forms26.4521.6723.534.664.023.851.821.331.48
    All classes67.7865.7061.13100.00100.00100.00100.00100.00100.00

Although the 1938 ratio of claims to premiums for employers' liability insurance was slightly in excess of the 1937 figure, the ratio for the earlier year was the lowest recorded since the information first became available in 1925.

The ratio of claims to premiums for motor-vehicle insurance rose from 50.03 per cent. in 1933 to the extremely high figure of 80.43 per cent. in 1936. A welcome decline, however, is recorded for 1938, and it would appear that the policy of highways improvement and the introduction of road safety campaigns are bearing fruit.

MORTGAGEES INDEMNITY INSURANCE.

The Mortgagees' Indemnity (Workers' Charges) Act, 1927, provides that when mortgages are presented for stamping an additional stamp duty of ls. is to be paid, known as a mortgagee's indemnity fee. The indemnity fees are paid into the Consolidated Fund (up to 1930 they were paid into the now defunct Land Assurance Fund), from which losses incurred by mortgagees through the enforcement of charges under the Workers' Compensation Act are met. A section of the Act definitely absolves the mortgagor from any obligation to insure or keep insured the mortgagee against loss of this nature in respect of any mortgage under the Act.

MOTOR-VEHICLES INSURANCE (THIRD-PARTY RISKS).

The Motor-vehicles Insurance (Third-party Risks) Act, 1928, requires owners of motor-vehicles to insure against their liability to pay damages on account of the death of or bodily injury to another person.

The payment of the insurance premiums is made annually to Deputy Registrars of Motor-vehicles at the same time as the annual license fee is paid under the Motor-vehicles Act. Owners of motor-vehicles are required to nominate each year the insurance company with which the contract of insurance is to be made, and the contract is deemed to be complete on the payment of the premium.

Rates of premiums, which are prescribed by regulations, remained more or less static for several years, but owing to the exceptionally heavy claims-experience during the recent years certain increases have been made. The continued unfavourable claims-experience of certain types of vehicles which was evident in 1938-39 have necessitated still further increases to the premiums ruling in that year, and the present rates, which came into force on the 1st June, 1939, include the following, with the corresponding premiums for 1936-37 shown in parentheses, where these differ: Trailers, 6s.; tractors, traction-engines, 10s.; motor-cycles, £1; private motor-cars, £1 6s. (17s.); private motor-cars used wholly or in part for the purpose of trade or business, £2 13s. (£2 ls.); motor-vehicles (other than trailers and motor-cycles) used by fire brigades, 18s.; hearses, ambulances, &c., £1 (18s.); trade motors, £1 18s. (£1 7s.); manufacturers' and dealers' motor-vehicles, £2 (£1 16s.); public motor-vehicles, £6, with a varying scale upwards to a maximum premium payable of £7 16s. (£12 15s.) according to seating-capacity; contract vehicles, rental cars, £3 (£2 5s.), with a maximum premium payable of £4 12s. (£4); private and public motor-cabs, £7 10s. and £10 (£6) respectively.

The liability of any insurance company under any contract under this Act is limited to £2,000 in respect of any passenger in the motor-vehicle concerned, and to £20,000 for all claims made by or in respect of passengers. Otherwise there is no limit as to amount.

The liability of the company does not extend to indemnify the owner against—

  • Any claim made in respect of death of or of injury suffered by any person living with the owner as a member of the same family, or in respect of the death of or of injury suffered by a relative of the owner where the degree of relationship is not more remote than the fourth:

  • Any claim made in respect of the death of or of injury suffered by any person in the service of the owner at the time-of the accident:

  • Any claim against the owner of a motor-vehicle (not being a vehicle plying for hire or used in the course of the business of carrying passengers for hire or, if a vehicle plying for hire or carrying passengers for hire, by a person who is not a passenger for hire) made in respect of the death of or of injury suffered by any person who was at the time of the accident in respect of which the claim has arisen being conveyed in the motor-vehicle, or was driving, or entering, or alighting from, or about to enter or alight from, such motor-vehicle.

The following particulars give the experience of the last five years, with a summary covering the ten years since the inception of this class of insurance. It should be noted that the figures for claims do not represent the amount paid during each year, but refer to accidents happening during each particular period. It should also be noted that the claims figures for the years 1936-39 include amounts on account of the estimated liability in respect of claims still outstanding at 31st May, 1939, and are therefore provisional only. Claims are frequently the subject of lengthy litigation, and until such time as they are finally settled the estimated liability is taken into account. Experience has shown that there is a tendency on the part of the insurance companies to overestimate this liability, and the figures when finalized, particularly for the latest years (1938 and 1939), may be expected to be considerably less than the amounts now given. For several years prior to 1938, the experience in this class of accident insurance grew progressively worse, the ratio of claims to premiums in 1937 being, more than double that for 1933. The corrected ratio for 1938, however, has shown an appreciable decrease on the 1937 figure, and, when, the outstanding claims of 1939 have been finalized, a considerable reduction on the preliminary ratio for that year may be expected.

Registration Year ended 31st May,Total for Ten Years (since Inception).
1935.1936.1937.1938.1939.
 ££££££
Premiums received211,709230,696257,559289,891348,2912,500,613
Claims paid and estimated liability in respect of claims outstanding at 31st May, 1939230,626259,867321,393340,373499,5232,505,418
Ratio per cent. of claims paid and outstanding to premiums109113125117143100

A certain amount of the improvement on the claims side during the last two years may be attributed to an amendment—by section 17 of the Statutes Amendment Act, 1937—to Part I of the Law Reform Act, 1936, which limits the damages recoverable for the benefit of the estate of a deceased person, and abrogates the right of the estate to claim and recover damages for the deceased person's bodily or mental harm, or for the curtailment of his expectation of life.

STATE ACCIDENT INSURANCE.

In the year 1901 the Government. (Life) Insurance Department opened an Accident Branch. On the 1st January, 1925, the accident business was transferred to the control of the State Fire Insurance Office. Although general accident business was undertaken, the branch was opened more especially to conduct insurance under the Workers' Compensation Act. In recent years, however, other forms of accident insurance have contributed in an increasing scale to the premium income of the office. The main classes now transacted are employers' liability, personal accident, public risk, motor comprehensive, third-party risks, plate glass, and fidelity guarantee.

A summary of income and expenditure during the last ten years is contained in the following table:—

Year.Income.Expenditure.
Premiums.Other.Total.Claims.Other.Total.
 ££££££
192981,35313,34394,69649,85326,77676,629
1930104,93514,861119,79661,04134,22495,265
1931102,06216,316118,37882,56227,211109,773
193287,06815,734102,80263,76026,34390,103
193380,20715,23995,44648,59329,09977,692
193484,72715,328100,05562,03524,01586,050
193597,76617,041114,80766,17226,35192,523
1936113,64916,123129,77276,47138,005114,476
1937147,71915,969163,68899,50252,839152,341
1938202,27918,568220,847140,80671,036211,842

In 1937 premium income and also the increase over the previous year constituted records. Both these records, however, were broken by the figures for 1938, premium income showing an increase of £54,560 above the 1937 total. The increase in claims paid amounted to £41,304 above the 1937 figure. The net surplus for each of the last three years amounted to—1936, £15,296; 1937, £11,347; and 1938, £9,005.

The ratio of claims to premiums for the year 1938 worked out at 69.61 per cent., as against the previous year's percentage of 67.36. The ratio of working-expenses to premiums for 1938 was 16.31 per cent., compared with 20.39 for 1937.

The total assets at the end of 1938 amounted to £584,817, compared with £526,605 at the end of 1937. Investments in New Zealand Government securities totalled £217,240, and in local-authority securities £214,481. Reserves and funds, which stood at £432,080 at the end of 1937, have been increased to £472,734.

SUBSECTION C—FIRE INSURANCE.

INTRODUCTORY.

IN the Dominion's legislation four separate classes of fire-insurance offices are distinguished, namely:— (1) Local insurance companies established within the limits of New Zealand; (2) foreign insurance companies established beyond New Zealand; (3) British offices similarly established; and (4) mutual fire-insurance associations. To these may be added the State Fire Insurance Office, established under a separate Act of Parliament.

Part XIV of the Companies Act, 1933, provides for the incorporation with limited liability of local insurance companies formed for the insurance of property other than that of shareholders. Such a company requires a paid-up capital of £50,000 intact, and if the amount of paid-up capital falls below this sum the company may not carry on insurance business except with unlimited liability. Insurance companies established or incorporated overseas require to have a like paid-up capital intact. The transaction of business by such companies is, however, subject also to special legislation as set out below. Mutual associations are referred to specially, at a later stage in this subsection.

Statistics of fire insurance are collected annually by the Census and Statistics Department. For 1938, statistics were collected from 43 offices carrying on business in New Zealand. The head offices of these were distributed as follows: Great Britain, 23; New Zealand, 13; Australia, 5; Hong Kong, 1; United States of America, 1.

DEPOSITS.

Since the passing of the Insurance Companies' Deposits Act of 1922, and its amendment, also of 1922, deposits in cash must be made with the Public Trustee by fire and accident offices. This Act docs not apply to deposits in respect of life assurance, requirements for which are dealt with in Subsection A.

The actual amounts of the deposits under the Insurance Companies' Deposits Act were: British companies in respect of fire-insurance business, £15,000; employers' liability business, £15,000; and all other classes of business (except life and marine), £5,000. Foreign companies were required to deposit a sum of £35,000, which covered all classes of business (except life and marine). Overseas companies becoming established in New Zealand after the passing of the principal Act are required to make deposits on a somewhat higher scale than the foregoing— —viz., British offices, £22,500 on account of fire business, the same for employers' liability insurance business, and £5,000 in respect of all other classes (other than life and marine). A newly established foreign company must deposit the sum of £50,000, and this covers all classes of business other than life and marine.

An amendment was passed in 1927 requiring agents operating in New Zealand on behalf of underwriters established abroad to make deposits on the same scale as that ruling for companies. A further amendment (in 1937) provides that every person who in the course of his business negotiates or attempts to negotiate any contract of insurance between an insurance company or an underwriter and the insured shall be deemed to be the agent of the company or underwriter, and the latter shall be deemed to be carrying on insurance business in New Zealand.

The Finance Act, 1933 (No. 2), further provided that a company which was not already undertaking insurance business in terms of the Motor-vehicles Insurance (Third-party Risks) Act, 1928, must deposit the sum of £10,000 before it could commence to do so.

Except for the provisions contained in the two preceding paragraphs, no deposit is required from a company constituted in New Zealand under the New Zealand laws.

The capital amount of deposits held by the Public Trustee on the 31st March, 1939, under the Insurance Companies' Deposits Act on behalf of thirty-eight companies was £1,130,000. These moneys are invested in the Common Fund of the Public Trust Office, and interest thereon is paid at regular intervals to the respective companies.

LIABILITIES AND ASSETS.

The following table indicates generally the extent to which fire-insurance offices have funds available to meet losses and liabilities. Funds of life departments are added for completeness, but by the Life Insurance Act, 1908 (which follows the provisions of the Imperial statute on the subject), life funds must be accounted for separately, and form a security for life-policy holders which is not available for other phases of insurance transacted. The amount of funds (other than life) in New Zealand and elsewhere is, it will be seen, in excess of £328,000,000.

Liabilities.Total Assets.
Overseas Companies.Local Offices.Mutual Associations.*
* These figures in the case of mutual associations relate to premium-note capital.
 ££££
Paid-up capital30,103,4083,258,198243,48233,605,088
Reserves209,913,3317,115,15657,581217,086,068
Other liabilities76,406,9731,038,5114,13877,449,622
    Totals316,423,71211,411,865305,201328,140,778
Life funds672,075,4392,330..672,077,769
    Grand totals988,499,15111,414,195305,2011,000,218,547

In the following table the figures for the amount of assets in New Zealand under various heads are given as at the end of each of the last three years.

The series of small decreases in the total of the New Zealand assets, which commenced in 1934, has on this occasion been transformed into a slight rise, the 1938 figure being greater than that of 1937 by £2,044. The gains registered during 1938 by all the other classes of assets have been chiefly at the expense of “local-authority securities” which have fallen by 22 per cent. during the last two years.

Assets in New Zealand.1936.1937.1938.
 £££
House and landed property1,097,3761,146,0491,228,445
New Zealand Government securities6,643,7506,418,0336,632,296
New Zealand local-authority securities2,063,3561,932,7671,601,139
Mortgages, &c.399,318345,905368,704
Outstanding premiums350,397407,735416,812
Cash and other assets in New Zealand2,998,4503,079,7543,084,891
    Total New Zealand assets13,552,64713,330,24313,332,287

SUMMARY OF BUSINESS.

The substantial increases in the amount of insurance cover underwritten, which have been in evidence since 1934, have resulted in the figure for 1938 exceeding that for the pre-depression peak year (1930) by £56,545,117. The rise of £19,209,714 during 1938 is, however, decidedly lower than the outstanding increase of £35,855,265 during the previous year.

1936.1937.1938.
* Excluding reinsurances accepted from other offices.
Offices in New Zealand.
Number of separate companies434343
Number of branches173174180
Number of agencies15,29815,39515,021
Amounts underwritten.
Gross amount of insurance cover in force in New Zealand on 31st December*£434,286,787£452,031,609£475,425,825
Number of policies representing the foregoing*746,223768,052778,886
Gross amount of new and renewal business underwritten during year*£475,018,566£510,873,831£530,083,545
Number of policies representing the foregoing*803,295826,734834,028
Premiums.
Total gross premiums charged on business (new and renewal) underwritten during year*£1,882,902£1,810,554£1,870,739
Percentage of gross premiums to total amount of business underwritten7s. 11d.7s. 1d.7s. 1d.
Total premiums (as shown above), less premiums refunded to insured other than to other offices£1,748,298£1,678,055£1,749,331
Losses.
Total number of separate fire losses with which offices were concerned6,8547,2687,375
Gross losses£474,631£446,346£613,185
Percentage of gross loss to amount underwritten (new and renewal) during year (as shown above)0.100.090.12
Percentage of gross loss to total premiums, less refunds to insured (as shown above)27.1526.6035.05
Average loss£69£61£83

The increase of £60,185 in the gross premiums charged was due to the larger amount of cover underwritten in 1938, the average rate of premium per cent. remaining the same as for 1937. As an offset against the small increase in the premium income, the gross losses paid out in 1938 advanced by £166,839 (37 per cent.) as compared with the previous year. Rises in both the number of fires and the average loss per fire contributed to this result.

The table hereunder illustrates the extent of the drop which has occurred since the fire losses commenced to recede in 1929. With the exception of the year 1938, there has been an unbroken sequence of decreases with the result that the total for 1937 was only one-third of the amount sustained in 1928.

Year.Premium Income.Fire Losses.Percentage of Loss.
 ££ 
19291,980,2121,122,30556.7
19302,006,9131,077,95153.7
19311,985,3751,073,84254.1
19321,908,810814,55142.7
19331,780,824591,22533.2
19341,711,841546,93632.0
19351,721,689528,85830.7
19361,748,298474,63127.2
19371,678,055446,34626.6
19381,749,331613,18535.1

INCOME AND OUTGO.

A statement of the total income and outgo, both gross and net, of all offices is now given in respect of New Zealand business. The gross reserve for unexpired risks, it should be noted, is calculated on the assumption that it bears the same proportion to gross premium income as does the actual net reserve to the net premium income.

1936.1937.1938.
Gross.Net.Gross.Net.Gross.Net.
* The gross figures are inclusive of reinsurance premiums from other offices.
Income.££££££
Reserve to meet unexpired risks as at beginning of year837,043565,445832,082558,095792,038534,250
Amount of fire premiums receivable during year*1,974,8581,243,6381,904,7161,185,9091,998,6331,226,811
Interest and dividends on stock, mortgages, &c.94,18194,18184,72084,72079,87979,879
Rents16,29816,29818,80618,80622,64622,646
Other revenue9679675,3905,390846846
    Totals2,923,3471,920,5292,845,7141,852,9202,894,0421,864,432
Outgo.
Amount of fire losses incurred during year, including adjustment and other expenses of settlement, but less salvage and amounts covered by reinsurance474,631338,784446,346321,329613,185398,206
Fire Board levies69,03854,98482,29964,77591,96670,684
New Zealand Government taxes128,060106,814114,12698,328114,51696,237
Local-authority rates2,9702,6732,6442,3732,5202,181
License fees6,6045,9385,7665,0885,3284,780
Rents23,08422,00419,93818,45219,36918,154
Allowances and commissions on premiums to agents, sub-agents, and others214,89191,183208,12690,877216,87591,190
Salaries and wages, including commissions on profits or bonuses254,227235,828237,605220,433235,796216,980
Other expenses of management130,917125,467118,720107,780118,109108,256
Reserve to meet unexpired risks as at the end of the year832,081558,095793,435535,383845,828550,145
Other expenditure3,7403,7404,0274,0273,8853,885
    Totals2,140,2431,545,5102,033,0321,468,8452,267,3771,560,698

A summary of the net revenue and expenditure for 1938 of the three classes of offices operating in New Zealand is contained in the next table.

Net Revenue.Net Expenditure.
Premiums.Total.*Claims.Salaries and Commissions.Total.*
* Excluding reserves to meet unexpired risks.
 £££££
Overseas companies674,315696,008240,140167,003580,232
Local companies529,675609,609150,185132,657409,576
Mutual associations22,82124,5657,8818,51020,745
Totals1,226,8111,330,182398,206308,1701,010,553

The net premium income and the total net income have, in comparison with the corresponding figures for 1937, increased by £40,902 and £35,357 respectively. The higher net income has, however, been more than counterbalanced by a rise in expenditure, the agency almost wholly responsible in the latter case being fire losses which accounted for £76,877 of the total increase of £77,091. The excess of revenue over expenditure for 1938 has consequently fallen to £319,629, as compared with the surpluses of £361,363 and £67,669 for 1937 and 1936 respectively. It should be noted that these figures are exclusive of reserves to meet unexpired risks.

Under the various heads below will be found the percentage ratio of working-expenses to premium income for the years 1934-38.

Items.1934.1935.1936.1937.1938.
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
Net working-expenses (excluding taxes) to net premium income44.6743.9843.2742.9941.75
Net working-expenses (excluding taxes and Fire Board levies) to net premium income40.5039.7938.8537.5235.99
Gross working-expenses (excluding taxes) to gross premium income (including reinsurances from other offices)36.0535.9735.5335.4434.52
Gross working-expenses (excluding taxes and Fire Board levies) to gross premium income (including reinsurances from other offices)32.7432.5932.0431.1229.92

The relatively greater degree of inertia inherent in “working-expenses” as contrasted with “premium income” is a factor having a distinct influence on the ratio of the former to the latter. This was clearly demonstrated by the ratios for the years 1930 to 1934 inclusive, when the decline in premium income resulted in a steady upward movement, despite the fact that working-expenses decreased during this period. The decline in working-expenses continuing, and the premium income fluctuating within minor limits only, each successive year since 1935 has witnessed a further fall in the ratios. The extent of the downward trend of working-expenses in recent years is disclosed by the absolute figures for 1930 and 1938, which were £555,835 and £441,541 respectively.

It is contended in some quarters that Fire Board levies are not a working-expense, but should be added to the total of fire losses. While this view is not subscribed to in the compilation of the statistics, there is a definite relationship between the items, and it is interesting to note that their exclusion from working-expenses reduces the 1938 ratio on the net figures from 41.75 to 35.99 per cent.

FIRES AND LOSSES.

The table following gives figures of fires and losses during each of the ten years ending 1937. It should be noted that these figures relate to calendar years, and thus differ somewhat from those shown elsewhere, which refer to varying twelve-monthly periods covered by the accounts of the different offices.

For the second year in succession, insured fire losses were less than £500,000, the 1937 figures disclosing the small decrease of £2,787 as compared with the previous year. In view of the fact that the number of fires has been steadily increasing since 1933 and is now 37 per cent. above the figure for that year, the continuance of the low-loss levels ruling since 1932 has been somewhat surprising. The loss figures previously quoted for the period covered by the 1938 financial years of the various offices indicate that losses for the calendar year 1938 will be substantially higher than in 1937. Since statistics covering all insured fire losses became available in 1918, the only other occasions when losses were under £500,000 were the three years 1918-20. The amount of insurance cover in force at that time was, however, less than one-half the present day figures.

The figures quoted herein relate to insured losses only, and in order to arrive at the national property loss by fire some allowance must be made for the uninsured losses. On what is termed a conservative basis, the Inspector of Fire Brigades in his annual report uses the insured-loss figure, plus 12½ per cent., for this purpose, and on this assumption the Dominion's property loss through fire in 1937 is estimated to have amounted to £520,000 compared with £524,000 in 1936, and £1,636,000 in 1928.

Year.Separate Fires.Conflagrations.*Buildings, &c., affectedGross Cover.Gross Loss.Ratio of Loss to Cover.

* Included in previous column. For statistical purposes a conflagration is defined as a fire where three or more buildings are affected.

† On buildings affected.

    ££Per Cent.
19284,972445,2757,661,8931,454,32818.98
19295,064365,3127,060,1321,093,56815.49
19304,863545,1457,058,9181,013,05914.35
19314,820565,0865,732,2221,148,52820.04
19324,482294,6785,528,316771,30113.95
19334,352274,5085,738,218573,1399.99
1,9344,546164,6414,674,747504,21110.79
19355,147265,2864,863,179539,92011.10
19365,318195,4356,248,835465,8047.45
19375,967166,0748,261,471463,0175.60

The next table shows for each of the four principal urban areas and the remainder of the Dominion the fires and losses for 1937:—

Separate Fires.Conflagrations.*Buildings affected.Gross Cover.Gross Loss.Ratio of Loss to Cover.

* Included in previous column.

† On buildings affected.

    North Island.   ££Per Cent.
Auckland urban area63036451,178,63934,8962.96
Wellington urban area1,025..1,0343,239,63742,2561.30
Secondary urban areas630..640547,25936,3306.64
Remainder of North Island1,23931,263920,043179,10419.47
  Totals for North Island3,52463,5825,885,578292,5864.97
    South Island.      
Christchurch urban area586..591819,73130,1713.68
Dunedin urban area6401646561,03510,7611.92
Secondary urban areas308..308335,62416,2684.85
Remainder of South Island8799917652,637112,70817.27
  Totals for South Island2,413102,4622,369,027169,9087.17
Floating, transit, and travelling30..306,8665236.16
  Totals for Dominion5,967166,0748,261,471463,0175.60

Compared with 1936, gross fire-loss increases amounting to £3,815, £11,849, and £10,697 are recorded for the Auckland, Wellington, and Christchurch urban areas respectively, while for Dunedin the figures have fallen by £11,441.

Losses in the North Island during the year decreased by £4,342, and in the South Island a rise of £3,444 has taken place.

The lower loss ratio in the cases of the principal urban areas as compared with the rest of the Dominion is to be expected in view of the greater fire-brigade facilities for handling fires in the larger centres. Companies usually allow this factor to influence the premium required.

Provision exists for coronial inquiries into fires of suspicious origin, but, as will be seen from page 205, the yearly number of such inquests has been small In 1932, however, a system was instituted whereby extended inquiries are made by the Police Department into all fires where the possibility of incendiarism is not eliminated or whore the cause is obscure. The results of such inquiries are considered by a committee consisting of the Commissioner of Police, the General Manager of the State Fire Office, and the Inspector of Fire Brigades, and should the circumstances warrant it a coroner's inquiry is then recommended.

The following table shows the amount of fire-insurance claims paid per head of population during the period 1933-37, separate figures being given for the various provincial districts and urban areas, and for the North and South Islands:—

NORTH ISLAND.

District.1933.1934.1935.1936.1937.1933-37.
 s.d.s.d.s.d.s.d.s.d.s.d.
Auckland Provincial District79798105551171
  Auckland urban area610466921133410
  Hamilton urban area2103230135131
  Gisborne urban area1511145111411810112
  Remainder87108113748292
Hawke's Bay Provincial District8111187917158102
  Napier urban area74410511401031125
  Hastings urban area33833051142411
  Remainder128172112100710119
Taranaki Provincial District10498112416083
  New Plymouth urban area954924333747
  Remainder1071131414461095
Wellington Provincial District66525115765511
  Wellington urban area39352114056311
  Wanganui urban area241678164937
  Palmerston North urban area282090356749
  Remainder111192810928095
Totals, North Island787480636171
  Urban areas5743535145411
  Remainder10010111107771196

SOUTH ISLAND.

District.1933.1934.1935.1936.1937.1933-37.
 s.d.s.d.s.d.s.d.s.d.s.d.
Marlborough Provincial District208171154111064142
Nelson Provincial District615971638469
  Nelson urban area59332112103337
  Remainder6266847491178
Westland Provincial District810101610511101186
Canterbury Provincial District804231445750
  Christchurch urban area106442121146410
  Timaru urban area15210102101919
  Remainder5744516108460
Otago Provincial District—            
  Otago Portion6155411464150
    Dunedin urban area6264411552751
    Remainder604541135510411
Southland Portion81184131013090107
    Invercargill urban area8261010115695100
    Remainder93921510118881011
Totals, South Island710510511606264
  Urban areas8150384104252
  Remainder776882798177
Grand totals, Dominion79610736261610
  Urban areas664648504450
  Remainder9193911758089

CAUSES OF fIRES.

From 1924 onwards particulars regarding causes of fires have been obtained from insurance offices, and the summarized results for the quinquennium 1933-37 are contained in the following table:—

Cause of Fire.Urban Areas.Remainder of Dominion.Total.
Number of Separate Fires.Loss.Number of Separate Fires.LossNumber of Separate Fires.Loss.
* Included in various causes from which spread.
  ££ ££
Electricity2,66373,432835104,9733,498178,405
Gas6218,219742,96269511,181
Naked lights3067,49943121,06073728,559
Defective chimneys and kindred causes85957,612969279,0531,828336,665
Smoking, and careless use of matches1,89377,18276863,6552,661140,837
Sparks from fireplaces6,36782,1023,028168,1669,395250,268
Heating, boiling-down31218,9711337,88544526,856
Use and misuse of highly inflammable spirits and materials43250,14822724,58065974,728
Incendiarism and arson6617,0318316,03614933,067
Outside causes46918,25938143,71985061,978
Other causes562,821231,482794,303
Totals, known causes14,044413,2766,952733,57120,9961,146,847
Fires spread from other buildings*19615,67322134,69441750,367
Floating, travelling, and transit risks........21610,300
Unknown causes1,677550,9022,441838,0424,1181,388,944
Totals15,721964,1789,3931,571,61325,3302,546,091

In all there were 25,330 separate fires during the period. This does not represent the number of buildings, &c., affected, as a fire spreading to other buildings has been counted as one only. Of the total, 216 were on account of floating risks such as motor-cars, &c., and have been excluded from the total of “known” causes. Of the remainder the cause was given in 20,996 cases, leaving 4,118, or 20 per cent. of cases, in which the insurance offices had no knowledge as to the cause of fire. It should also be remembered that in some instances, more especially where a total or semi - total loss was sustained, the actual cause was a matter of conjecture only. These cases, however, are few in number, as the vast majority of total losses are included in the total of unknown causes.

EXTENT OF LOSS.

The following table gives particulars of fire losses during the five years 1933-37, classified according to the amount of loss. No fewer than 21,599 fires, out of a total of 25,330, resulted in a loss of less than £100; while in 17,783 cases, or 70 per cent. of the total, the loss per fire was less than £10. The aggregate loss involved in these small fires is small—those under £10 accounting for only 1.92 per cent. of the total loss, and fires in which less than £100 was paid out, 6.51 per cent. On the other hand, only 1.75 per cent. of the total number of fires resulted in a loss of £1,000 or upwards; but the aggregate loss within this category constituted 42.86 per cent. of the total. Corresponding figures for fires in which the loss was £5,000 or over are 0.15 per cent. and 14.06 per cent. respectively.

Loss Category.Number of Separate Fires.Insurance Cover on Buildings, &c., affected.Amount of Loss.Average Amount of Loss per Fire.Proportion of Loss to Total Loss.
£    £ £££Per Cent.
Under 1017,78312,685,55948,75631.92
10 and under 252,1364,361,77532,476151.28
25 and under 509292,697,88432,642351.28
50 and under 1007512,322,99051,730692.03
100 and under 2008291,046,254117,6871424.62
200 and under 300582507,603141,7472445.57
300 and under 400448947,952153,9513446.05
400 and under 500415473,719184,5044457.25
500 and under 750693930,353418,19460316.42
750 and under 1,000320608,425273,03685310.72
1,000 and under 2,0002851,040,008379,7241,33214.91
2,000 and under 3,00075575,342179,0012,3877.03
3,000 and under 4,00032244,847109,6703,4274.31
4,000 and under 5,00014151,14164,8914,6352.55
5,000 and over 381,192,598358,0829,42314.06 
    Totals25,33029,786,4502,546,091101100.00

MUTUAL FIRE-INSURANCE ASSOCIATIONS.

Mutual associations are dealt with by the Mutual Fire Insurance Act, 1908, which allows at least 100 owners of isolated or farm property to subscribe to a declaration and form themselves into a mutual association to insure against loss by fire to an amount in the aggregate of not less than £40,000. Such associations effect insurance on the premium-note principle, and accept premium notes to be assessed for losses in the proportion of the total amount of such notes. The amount of a member's premium notes limits his liability.

In addition to furnishing returns to the Census and Statistics Department, each mutual association (of which there are three in existence) is required to furnish to the Public Trustee a statement of the condition of the association as at the 31st March in each year.

STATE FIRE INSURANCE.

The New Zealand State Fire Office was the first competitive State fire-insurance office in the world, and first opened for business on 4th January, 1905, with a borrowed capital (long since repaid) of £2,000. The income of the office in its first year was £13,135, while in 1938 this figure had risen to £239,600, and reserves and funds at 31st December, 1938, totalled £1,160,407.

The premium income figures in the following table include amounts which are returned to policyholders by way of bonus rebates. At the end of 1936 the bonus rebates then in existence were converted into permanent premium rate reductions, a new series of bonus rebates being instituted at the same time. The decrease in the premium income for 1937 as compared with 1936 is apparent rather than real, as the premium income for 1937 would have shown an increase of over £13,000 had it been on the same basis as that for 1936.

Fire losses in 1938 were £3,956 less than in the previous year, and the ratio of losses to premiums is the lowest recorded in the history of the office. Apart from claims, and the bonus rebates which totalled £37,747, the principal items of expenditure for 1938 were as follows, the corresponding figures for 1937 being shown in parentheses: Working-expenses, £58,657 (£53,781): Fire Board contributions, £10,492 (£9,602); and income-tax, £32,288 (£35,454).

The ratio of net claims to net premium income gives for 1938 a percentage of 15.9 compared with 19.8 in 1937 and 21.4 in 1936.

Year.Net Premium Income.Total Net Income.Net Losses.Accumulated Funds.Assets.
 £££££
1929217,991258,99575,317821,091862,285
1930221,910272,21390,001889,494931,577
1931216,007265,503112,932918,182977,477
1932208,493255,24270,444952,2991,000,009
1933201,351244,25749,005991,0871,060,513
1,934200,581244,37654,7511,016,6881,069,127
1935199,898239,53053,1511,049,4201,138,948
1936202,987245,41943,5171,083,3911,170,204
1937175,726223,45134,7951,113,8301,257,306
1938193,501239,60030,8391,160,4071,257,820

Exclusive of Government taxes, which amounted to 16.7 per cent., the working-expense ratio to premium income in 1938 was 35.7 per cent., and without Fire Board contributions 30.3 per cent. Comparative figures for 1937 were 20.2, 36.1, and 30.6 per cent. respectively.

The apparent increase in the expense ratio in 1937 and 1938 as compared with the earlier years is mainly due to the conversion of the bonus rebates as mentioned on the previous page.

FIRE BRIGADES.

The following table gives particulars of fire brigades (including branches) in the Dominion for each of the last five years:—

YearStations.Officers.Men.Total Personnel.
19341714612,1502,611
19351714652,1252,590
19361734892,1002,589
19371724912,0472,538
19381714992,0522,551

Chapter 30. SECTION XXX.—FRIENDLY SOCIETIES.

INTRODUCTORY.

THE legislation dealing with friendly societies is contained in the Friendly Societies Act, 1909, and its amendments. Provision is made for the registration of all societies and branches with the Registrar of Friendly Societies, and also for the general superintendence by the Government of the administration of the funds of the societies.

A scheme for the extension of State benefits to members of friendly societies, on special terms, was introduced by the Finance Act, 1916, and is now embodied in the National Provident Fund Act, 1926—vide Section XXV, Pensions, Social Security, Superannuation, &c.

LODGES AND MEMBERS.

The table following gives the number of registrations (i.e., of friendly societies proper, or lodges, together with benevolent societies, working-men's clubs, &c., registered under the Act) and of lodge members as at 31st December:—

Name of Order.Registrations.Lodge Members.
1936.1937.1938.1936.1937.1938.
* Membership figures relate to “actuarial” societies only (7 in 1938).
Manchester Unity Independent Order of Oddfellows26226727136,92238,85039,276
Independent Order of Odd-fellows21822122313,37214,01614,056
National Independent Order of Oddfellows333211208209
British United Order of Odd-fellows111828480
Ancient Order of Foresters16216516519,64120,43920,357
United Ancient Order of Druids14814814821,75122,54522,786
Independent Order of Rechabites6868695,6655,6535,683
Order of Sons of Temperance101010600620619
Sons and Daughters of Temperance111146143141
Hibernian- Australasian Catholic Benefit Society8895934,6214,9945,015
Protestant Alliance Friendly Society of Australasia151414976963956
Grand United Order of Odd-fellows131414508582621
Isolated friendly societies7376783,564*3,791*3,910*
Working-men's clubs131313......
International Order of Good Templars111111......
Specially authorized societies151515......
    Totals1,1011,1221,129108,059112,888113,709

Annual returns of receipts, expenditure, &c., of lodges are required by law. For the year 1938 the Registrar of Friendly Societies received returns from 966 lodges, with an aggregate membership of 113,709 at the end of the year, as compared with 960 lodges and 112,888 members for 1937. During the year 6,536 members were admitted by initiation, &c., and 1,529 by clearance; 1,108 died, 1,615 left by clearance, and 4,521 by arrears, &c.

The aggregate membership of lodges increased year by year, reaching a peak in 1930, when the total was 107,167. The economic depression probably accounted for the temporary subsequent fall, while the increases of 4,447 in 1936, 4,829 in 1937, and 821 in 1938 brought the total number of members on 31st December, 1938, up to a new record level of 113,709.

The statistics given subsequently relate to the lodges (966 in 1938) for which returns were received and tabulated.

MORTALITY AND SICKNESS.

In the following statement of the mortality experience for the last five years no account has been taken of age incidence:—

Year.Deaths of Members.Per 1,000 Members at Risk.Deaths of Members' Wives.Per 1,000 Members at Risk.
19349359.263263.23
19358878.643643.55
19369518.953733.51
19371,0079.074033.63
19381,1089.734023.53

The number of members sick during 1938 was 28,682, representing 26.9 per cent. of members at risk. The sickness experienced during 1938 aggregated 304,773 weeks, equal to 10 weeks 4 days per sick member, and 2 weeks 5 days for each member at risk.

FUNDS OF FRIENDLY SOCIETIES.

The total funds of the societies and branches as at the 31st December, 1938, amounted to £5,280,472, made up as follows:—

Funds.£
Sick and Funeral Funds4,396,280
Surplus Appropriation Funds, &c.471,011
Management Funds, goods, &c.234,533
Widow and Orphans' Funds35,485
Distress, Benevolent Funds, &c.143,163
 £5,280,472
Assets.£
Investments at interest4,597,892
Value of land and buildings494,954
Cash not bearing interest126,274
Value of goods22,134
Other assets34,000
Owing by Management Funds5,218
 £5,280,472

Dividing the total funds by the number of members at the end of the year it is found that the average capital per member is £46 8s. 9d. There has been over many years a continuous increase in the amount of accumulated funds standing to the credit of friendly societies. The average capital per member has also appreciably increased, the gain in the last ten years amounting to 24 per cent., in spite of an increase of 8 per cent. in membership. The slight fall recorded in the two years 1936 and 1937 can be attributed to the sharp increases in membership in those years. As the result of a much smaller increase in membership for the year, the figure for average capital per member as at 31st December, 1938, is the second highest for the past ten years.

Year.Total Funds.Average Capital per Member.Year.Total Funds.Average Capital per Member.
 ££s.d.£££s.d.
19293,927,43337701,9344,676,4274689
19304,130,117381091,9354,812,7874690
19314,277,71540991,9364,956,94845175
19324,398,158431111,9375,120,1254571
19334,538,09545561,9385,280,4724689

The funds of friendly societies are held chiefly in the form of mortgages on freehold property, as shown in the next table.

Year.Total Funds.Funds invested at Interest.Proportion of Funds Invested at Interest.
Mortgages on Freehold Property.Government and Municipal Debentures.Deposited with Banks.Other Investments.Totals.
 ££££££Per Cent.
19344,676,4273,501,236268,127148,59868,1983,986,15985.24
19354,812,7873,643,412240,363135,82776,0304,095,63285.10
19364,956,9483,782,311231,540135,86574,9174,224,63385.23
19375,120,1253,953,431220,654160,77974,6074,409,47186.12
19385,280,4724,145,053230,587148,13774,1154,597,89287.07

The figures of Sick and Funeral Funds and the rate of interest earnings thereon during 1938 are given for each order in the following table:—

Order.Total Worth of Sick and Funeral Funds as atAverage Rate per Cent. of Interest earned.
31st December, 1937.31st December, 1938.1937.1938.
 ££££
M.U.I.O.O.F.1,449,8891,500,5574.364.66
I.O.O.F.397,359421,0324.484.82
N.I.O.O.F.5,1805,2484.716.13
B.U.O.O.F.6,4336,3554.544.72
A.O.F.777,046791,2234.484.26
U.A.O.D.1,115,9041,152,4184.134.38
I.O.R.208,913215,0134.284.53
O.S.T.31,66732,4864.924.81
S.D.T.11,92011,9794.404.86
H.A.C.B.S.119,894135,5344.474.46
P.A.F.S.A.56,07456,9234.614.26
G.U.O.O.F.5,9116,4673.074.66
Other societies59,28261,0454.784.19
    Totals4,245,4724,396,2804.344.51

Receipts and expenditure of Sick and Funeral Funds for 1938 are quoted below. A surplus of £150,808 is recorded for the year.

    Receipts.£
Members' contributions208,543
Interest and rent190,580
Repayments by central body87,985
Other receipts27,371
 £514,479
    Expenditure.£
Sick pay to own members187,911
Funeral donations52,778
Contributions and levies to central body94,360
Other expenditure28,622
 £363,671

Members' contributions averaged £1 16s. 10d. per member, and interest and rent receipts amounted to £1 17s. 5d. per member, reckoned on the mean number of members for the year. Sickness benefits paid averaged £6 11s. 0d. per member sick, or £1 13s. 2d. when averaged over all members, while funeral benefits represented 9s. 4d. per member.

Receipts and expenditure of Medical and Management Funds for 1938 are shown hereunder, a surplus of £5,316 for the year being recorded:—

    Receipts.£
Contributions of own members280,678
Interest and rent5,025
Other receipts9,812
 £295,515
    Expenditure.£
Medical attendance and medicine201,078
Expenses of management62,900
Levies to central body17,172
Other expenditure9,049
 £290,199

FRIENDLY SOCIETIES IN AUSTRALIA AND NEW ZEALAND.

The following table shows the number of friendly societies, their accumulated capital, and the average capital per member in each of the Australian States according to the latest available statistics, and in the Dominion of New Zealand as at 31st December, 1937.

It will be observed that, in respect of capital per member, the New Zealand figure is considerably in excess of that recorded for any of the Australian States.

Date or Return.Number of Lodges.Number of Members.Amount of Funds.Capital per Member.
    ££s.d.
New South Wales30/6/372,429208,9794,733,24722130
Victoria30/6/371,459191,7325,989,85431410
New Zealand31/12/37960112,8885,120,1254571
South Australia30/6/3674089,8862,668,31529139
Queensland30/6/3660369,3331,878,64527111
Western Australia30/6/3735225,443621,3092485
Tasmania31/12/3619325,068463,3961899

Chapter 31. SECTION XXXI.—BUILDING SOCIETIES.

INTRODUCTORY.

THE law relating to building societies incorporated in the Dominion is contained in the Building Societies Act, 1908, which is a consolidation of earlier legislation. Most of this legislation had been operative since 1880. The Assistant Registrar of Companies in each district acts as Registrar of Building Societies. Rules, as well as subsequent alterations thereof, must be certified before registration as conforming to legal requirements—by a revising barrister appointed by the Governor-General for the purpose. No stamp duties are payable on any instalments or documents made under the Act.

Building societies are afforded all the powers of an ordinary mortgagee, and where a mortgagor makes default in payment of moneys the society may exercise the usual power of sale through the Registrar of the Supreme Court. No reconveyance is needed to discharge a mortgage made under the Act, a receipt endorsed being a sufficient discharge for this purpose.

Orders in Council of 7th June and 8th August, 1932, of 20th March, 1933, and of 31st July, 1934, made under section 51 of the National Expenditure Adjustment Act, 1932, fixed the maximum interest payable on deposits with building societies. A schedule of maximum rates payable on these and other deposits is given on pages 697-699.

Returns of each society's operations are furnished annually to the Census and Statistics Department. The dates upon which the societies close their accounts vary considerably within the year, but the statistics may be taken as corresponding approximately to the financial years ended on the 31st March.

A distinction is made between permanent and terminating societies. A permanent society is statutorily defined as one which has not by its rules any fixed date or specified result at which it shall terminate, and a terminating society as one which by its rules is to terminate at a fixed date, or when a result specified in its rules is attained. In practice a terminating society or group thereof closes when every member so desiring has obtained a loan. There is a considerable difference between the two types of societies, the terminating society being a purely co-operative institution belonging to and managed by the members, proprietary interests being discouraged by placing a limit to the number of shares (usually ten) that any member may hold in any one group. There is, however, nothing to prevent a member from holding the maximum number of shares in more than one group. In the typical terminating society contributions are at the rate of ls. per week per share, each share entitling a member in due course to £100 of loan, with a maximum of £1,000. It is these contributions, together with premiums on loans mentioned later, which make up the funds from which loans are made. Loans are made to members alternately (roughly) by ballot and by auction, the latter going for the highest premium offered. Security is required for the loans, which are repaid, free of interest, in 12½ years, a weekly instalment of 3s. 1d. per £100 of loan being necessary to achieve this result. The weekly payment of 1s. per share is continued, usually till the end of the group, but sometimes only until the total contributions paid in, plus profits credited to the shareholder, equal the amount owing on the loan. The shareholder's credit balance is then transferred to extinguish the loan. The profit of the society is derived from premiums on loans sold by auction.

Permanent societies are more in the nature of finance companies, and, while both investors and borrowers must be members, the borrower is frequently merely a nominal member. Investments in a permanent society may be made in either large or small amounts. Capital may be raised by shares with a fixed rate of interest, or subject to dividends varying according to profits: as will be observed from the statistics which follow, terminating societies do not issue capital shares. Bonds, debentures, and overdraft are other methods of financing. The principal object of a permanent society is to lend money at a profit on land, either freehold or leasehold, and buildings. Table mortgages are usually adopted, the term of repayment varying from 10 to 20 years.

NUMBER OF SOCIETIES.

The number of societies in existence in 1938-39 was 95, of which 57 were permanent and 38 terminating, the latter being comprised of 183 groups. Compared with ten years ago the number of permanent societies has increased by 8. Although the number of terminating societies has manifested a declining tendency in recent years their activities as measured by the aggregate number of groups have been maintained.

SHARES.

A synopsis of the extent to which investments have been made in building-society shares during the last five years is contained in the following table:—

1934-35.1935-36.1936-37.1937-38.1938-39.
Investing Shares.     
Number of shares253,734278,255297,336325,736359,180
Members holding39,57939,61241,46840,77647,226
Aggregate value£3,535,032£3,569,579£3,610,933£3,768,228£3,904,339
Capital Shares.     
Number of shares543,304558,068569,405580,369588,915
Members holding5,7835,1985,3675,4375,480
Aggregate value£1,325,255£1,357,059£1,401,976£1,435,670£1,451,853

The average value in 1938-39 of each investing share was £10 17s. 5d., as compared with £14 4s. 2d. in 1933-34, and of each capital share £2 9s. 3d., as compared with £2 8s. 8d. five years earlier. A comparison (1938-39) between permanent and terminating societies on the basis of the distribution of share-money and the number of holders of shares yields the following results:—

Permanent.Terminating.Total.
Investing Shares.   
Number of shares256,585102,595359,180
Members holding17,33429,89247,226
Aggregate value£1,813,985£2,090,354£3,904,339
Capital Shares.   
Number of shares588,915..588,915
Members holding5,480..5,480
Aggregate value£1,451,853..£1,451,853

Of the total aggregate value of both investing and capital shares, amounting to £5,356,192, 61 per cent. is held in permanent societies and 39 per cent. in terminating societies. On the other hand, the number of members holding shares in permanent societies is only 43 per cent. of the total, the terminating societies' shareholders representing 57 per cent. It should be pointed out, however, that one person may hold shares in several groups of a terminating society.

RECEIPTS AND PAYMENTS.

Following is a summary of receipts and payments during each of the five years 1934-35 to 1938-39:—

1934-35.1935-36.1936-37.1937-38.1938-39.
    Receipts.£££££
Investors' subscriptions and capital shares532,540556,378605,791588,309584,114
Advances repaid901,046927,5951,024,6741,027,5051,084,873
Deposits1,634,6041,949,6202,203,3231,902,1101,981,587
Interest238,506249,646276,453300,614327,848
Other receipts369,632299,274299,801248,372266,739
Total receipts3,676,3283,982,5134,410,0424,066,9104,245,161
    Payments.     
Withdrawals573,099490,262536,136322,999363,497
Advances909,6301,292,1251,436,8181,631,9961,753,228
Expenses of management66,57166,47371,21679,34285,781
Deposits repaid1,499,8491,769,8111,851,3381,611,9951,709,665
Interest, dividends, &c.578,838418,946491,142422,444417,583
    Total payments3,627,9874,037,6174,386,6504,068,7764,329,754

The outstanding feature of the above table is the increase in advances, the amount so paid in 1938-39 having risen by over 100 per cent. when compared with the position five years earlier.

LOANS.

The numbers and amounts of loans at the end of each of the last five years, both of permanent and of terminating societies, were as follows:—

Year.Permanent Societies.Terminating Societies.Total.
Number.Amount.Number.Amount.Number.Amount.
  £ £ £
1934-3510,6065,238,8297,9612,678,28018,5677,917,109
1935-3611,5405,807,2787,8582,605,41319,3988,412,691
1936-3712,2776,214,6887,8292,534,37920,1068,749,067
1937-3812,6996,744,5057,9692,547,30620,6689,291,811
1938-3913,2297,270,3018,0242,584,77421,2539,855,075

A marked increase both in numbers and in the aggregate amount of loans by permanent societies has taken place during the period. The position in regard to terminating societies, however, shows little change, slight decreases in 1935-36 and 1936-37 being followed by small increases in the two subsequent years. The average amount per loan current at the end of each of the last five years was:—

Class.1934-35.1935-36.1936-37.1937-38.1938-39.
 £s.d.£s.d.:£s.d.£s.d.£s.d.
Permanent societies493190503475064153121549116
Terminating societies3368633111332314431913032227
All societies42682433139435211449116463140

Particulars of loans granted during each of the last five years are as follows:—

YearPermanent Societies.Terminating Societies.
By Ballot.By Auction.
Number.Amount.Number.Amount.Number.Amount.Premiums.
  £ £ ££
1934-351,394515,302421205,836311134,99628,584
1935-362,070940,362418209,259319138,02527,625
1936-371,9781,053,316572222,895421157,55333,571
1937-382,4831,270,020562260,002385165,86635,871
1938-392,3301,356,104501253,300352171,51237,116

The premiums on loans auctioned gives an average of £21.6 per cent. for 1938-39, this—assuming the usual loan currency of twelve and a half years—being equivalent to a rate of interest of about 3 per cent. The average premium per cent. declined progressively from £27.6 in 1931-32 to £20.0 per cent. in 1935-36 in sympathy with the general downward trend in interest rates, but has since shown a slight upward movement.

Commencing with the year 1937-38, statistics of building societies were extended to include a classification of loans into (1) loans granted to finance the erection of new dwellings, and (2) loans granted to finance the purchase of dwellings already built. For the purposes of the statistics a new dwelling is deemed to include one which has been built by the borrower within twelve months preceding the granting of the loan. Particulars of the two years for which the information is available are as follows:—

LOANS GRANTED.

To Finance the Erection of New Dwellings.To Finance the Purchase of Dwellings already Built.For other and Unspecified Purposes.Totals.
No.Amount.No.Amount.No.Amount.No.Amount.
1937-38.
  £ £ £ £
Permanent societies587444,0001,020455,139876370,8812,4831,270,020
Terminating societies—        
  By ballot7039,85218290,400310129,750562260,002
  By auction6939,08817070,11314656,665385165,866
    Totals, all societies726522,9401,372615,6521,332557,2963,4301,695,888
1938-39.
  £ £ £ £
Permanent societies488388,3261,071538,594771429,1842,3301,356,104
Terminating societies—        
By ballot10250,20017287,150227115,950501253,300
By auction4020,17018284,24213067,100352171,512
Totals, all societies630458,6961,425709,9861,128612,2343,1831,780,916

The considerable number of loans shown for other and unspecified purposes is due to the fact that some societies were unable to give the necessary classification, so that it may be taken that the above table definitely understates the number of loans actually granted for the erection and purchase of dwellings.

LIABILITIES AND ASSETS.

The liabilities and assets of building and investment societies for each of the last five years were as follows:—

LIABILITIES.

Year.To Shareholders (including Reserve Funds and Undivided Profits).Deposits.Appropriations not taken up or in Trust.To Bankers and other Creditors.Total Liabilities.
 £££££
1934-355,907,1072,420,261200,249186,6218,714,238
1935-365,992,0832,655,114212,940309,9559,170,092
1936-376,090,7683,009,285214,292291,0479,605,392
1937-386,308,8883,347,398228,591294,37010,179,247
1938-396,495,0793,667,846243,787348,14610,754,858

ASSETS.

Year.Advances on Mortgage.Other investments and Assets.Cash in Hand and at Bank.Total Assets.
 ££££
1934-357,917,538489,511307,1898,714,238
1935-368,412,691506,136251,2659,170,092
1936-378,749,067611,356244,9699,605,392
1937-389,291,811613,440273,99610,179,247
1938-399,855,075610,048289,73510,754,858

DEPOSITS.

From April, 1932, figures of deposits with building societies have become available under section 44 of the Building Societies Act, 1908, as amended by the National Expenditure Adjustment Act, 1932. Quarterly statements are published in the Monthly Abstract of Statistics. Investment societies are included with building societies in the following figures, as the two classes are not distinguished in the returns.

The average number of societies furnishing returns for the four quarters of the year ending 31st March, 1939, was 98. During the same fiscal year the amount borrowed (exclusive of renewals) was £2,280,898 and the amount repaid £1,956,527, the corresponding amounts for the previous year being £2,071,924 and £1,792,781 respectively.

The following were the deposits with building and investment societies at 31st March, 1939:—

Rate of Interest (Per Cent.).At Call or under Three Months.Three Months and under Two Years.Two Years and over.Total.
 ££££
Nil11,275  11,275
Under 2½260,67323,645..284,318
2½ and under 35,664258,34520,000284,009
3 and under 3½439,922559,754623,0261,622,702
3½ and under 413,491..1,292,0851,305,576
4 and under 4½25,134..1,017,1951,042,329
4½ and under 5465..4,3004,765
5 and under 5½3,6411733304,144
5½ and under 69400..409
6 and under 6½279....279
7 and under 8385....385
8 and over450....450
    Totals761,388842,3172,956,9364,560,641
Average rate of interest (per cent.)2.682.883.653.34

Chapter 32. SECTION XXXII.—MORTGAGES.

MORTGAGE LAW.

UNDER the Property Law Act a “mortgage” is defined as including a charge on any property for securing money or money's worth; and “mortgage-money” means money or money's worth secured by a mortgage. Under the Land Transfer Act “mortgage” means and includes any charge on land created under the provisions of that Act for securing—

  • The repayment of a loan or satisfaction of an existing debt;

  • The repayment of future advances, or repayment or satisfaction of any future or unascertained debt or liability, contingent or otherwise;

  • The payment to the holders for the time being of any bonds, debentures, promissory notes, or other securities, negotiable or otherwise, made or issued by the mortgagor before or after the creation of such charge;

  • The payment to any person or persons by yearly or periodical payments or otherwise of an annuity, rent-charge, or sum of money other than a debt.

Where the ownership of land is registered under the Land Transfer Act (as, vide p. 375, the great majority of land titles now are) mortgages on that land are granted by virtue of the provisions of that Act: they take effect as securities and do not operate as transfers of the estate or interest charged. In the case of other land or property a mortgage is granted under what is known as the deeds or deeds-registration system; the mortgage in this instance operating as a conveyance or assignment of the land or property mortgaged, for the mortgagee becomes the registered proprietor of the land, subject to the right of the mortgagor to have the property re-registered in his name on the discharge of his obligations under the mortgage. Although in form a mortgage under the deeds system is a conveyance, in equity it is treated as merely a charge on the land.

PROPERTY THAT WAY BE MORTGAGED.

Any land covered by the definitions of “land” in the Property Law Act, 1908, and the Land Transfer Act, 1915, may be mortgaged. Where, however, property is subject to restrictions upon alienation, these restrictions usually apply to prevent such property being mortgaged. The following are the main instances in which mortgage of property is forbidden by law:—

  • Family homes registered under the Family Protection Act, 1908.

  • Maintenance-moneys under the Family Protection Act, 1908.

  • Inalienable life annuities (Inalienable Life Annuities Act. 1910).

  • Pensions under the War Pensions Act, 1915.

  • Monetary benefits under the Social Security Act, 1938.

  • Property subject to restraint upon anticipation, unless by consent of the Supreme Court.

  • Property subject to restraint upon alienation in accordance with section 24 of the Property Law Act, 1908.

  • An infant's property, by the infant (Infants Act, 1908, sections 12 and 13).

REDEMPTION.

A memorandum of discharge vacates he mortgage debt and operates as a deed of reconveyance of the estate and interest of the mortgagee in the mortgaged property “to the person for the time being entitled to the equity of redemption”; but the mortgagee may execute a deed of reconveyance” if he thinks fit and the mortgagor requires it.” The Public Trustee is empowered to receive mortgage-moneys on account of absentee mortgagees, and in the case of a deed of mortgage to execute the necessary memorandum of discharge. A mortgagor may redeem in the following cases:—

  • Before the due date, on payment of interest for the unexpired term of the mortgage. A special provision in the Mortgagors and Lessees Rehabilitation Act extends the powers of a mortgagor to redeem in certain cases before the due date (vide page 747).

  • At the due date, in accordance with the provisions of the mortgage.

  • After the due date, upon giving three months' notice in writing or paying three months' interest in lieu of notice, except where the mortgagee is or has been in possession or has taken steps to enforce his security, in which case the mortgagor may redeem at any time upon payment of all moneys due.

  • After default and before sale by the mortgagee. If the mortgagee has entered into possession of the mortgaged land or part of it, the mortgagor loses his right of redemption after twenty years from the date of the mortgagee's entering into possession, or after twenty years from the last written acknowledgment of the mortgagor's title or of his right to redeem.

The Property Law Act abolished what was formerly known as the doctrine of consolidation of mortgages. Where a mortgagor is liable under more than one mortgage, he may now pay off one mortgage without being called on to pay off any mortgage or mortgages on property not comprised in the mortgage he is paying off.

RIGHTS OF MORTGAGEE.

Under New Zealand law a mortgagee has no power of foreclosure in respect of realty. The following represent his principal rights:—

  • He is entitled to the custody of the title-deeds of the property mortgaged.

  • He may sue on the personal covenant contained in the mortgage-deed.

  • He may enter and take possession. This right is exercisable either by actually entering upon the land or a part of it or by bringing an action for possession. At least one month's notice of the intention to exercise the right must be served on the owner for the time being of the land subject to the mortgage. If there is a tenant whoso rights are binding on the mortgagee, the latter can give notice to the tenant to pay the rent to him, and this will be equivalent to taking possession.

  • He may assign his interest, either absolutely or by way of submortgage.

  • He may sell, either under the express powers (if any) in the mortgage-deed, or under powers implied by statute, if these have not been negatived in the deed.

  • Instead of selling, as above, a mortgagee entitled to exercise his power of sale may apply to the Registrar of the Supreme Court to conduct the sale. The mortgagee must state in his application the estimated value of the land, and the date of the sale must be not less than one month and not more than three months from the date of the application. He may bid at the sale and become the purchaser of the land, but in such case the amount paid for the land shall not be less than the value of the land as estimated. If it is, the mortgagor must be allowed in account the full amount of the estimate. As in the case of the right to enter and take possession, no power of sale shall become exercisable unless at least one month's notice of the contemplated action has been served on the owner of the land.

MORTGAGORS AND LESSEES REHABILITATION.

INTRODUCTORY.

The economic conditions prevailing in New Zealand consequent upon the world-wide depression led to the enactment in the early months of 1931 of legislation designed for the relief of mortgagors. The complexity of the problem necessitated much further legislation, and a consolidating Mortgagors and Tenants Relief Act was passed in December, 1933. The Rural Mortgagors Final Adjustment Act, 1934-35, which was passed in April, 1935, represented a definite attempt on the part of the Government to effect a final clearing-up of the burden of rural indebtedness. Both these enactments, which are described in some detail in the 1936 issue of the Year-Book (pp. 567-70), were repealed by the Mortgagors and Lessees Rehabilitation Act, 1936, a description of which follows.

PURPOSE OF THE ACT.

Section 2 of the Act is quoted verbatim in order to afford an adequate understanding of the general objectives of the legislation.

  • "2. (1) The general purpose of this Act in relation to farmer applicants is to retain them in the use and occupation of their farms as efficient producers, and to make such adjustments of their liabilities as will ensure that the liabilities secured on any property do not exceed the value of that property, that the rent of any leasehold property does not exceed the rental value of that property, and that the total amount and terms of payment of all their liabilities (whether secured or unsecured) are such that, after allowing for all normal current expenditure and providing for the maintenance of themselves and their families in a reasonable standard of comfort, the applicants may reasonably be expected to meet their liabilities as they become due, either out of their own moneys or by borrowing on reasonable terms.

  • "(2) The general purpose of this Act in relation to home applicants is to retain them in the occupation of their homes, and to make such adjustments of their liabilities as will ensure that the liabilities secured on any property do not exceed the value of that property, that the rent of any leasehold property does not exceed the rental value of that property, and that the total amount and terms of payment of those of their liabilities that are secured by adjustable securities or are adjustable debts are such that the applicants may reasonably be expected to meet them as they become due, either out of their own moneys or by borrowing on reasonable terms.

  • “(3) The general purpose of this Act in relation to applicants who are not farmer applicants or home applicants is to enable them to retain possession of their mortgaged or leasehold property, and to make such adjustments of their liabilities as will ensure that the liabilities secured on any property do not exceed the value of that property, that the rent of any leasehold property does not exceed the rental value of that property, and that the total amount and terms of payment of those of their liabilities that are secured by adjustable securities or are adjustable debts are such that the applicants may reasonably be expected to meet them as they become due, either out of their own moneys or by borrowing on reasonable terms.”

COVENANTS TO WHICH ACT APPLIED.

The Act applied to mortgages of the following classes:—

  1. Mortgages that were executed before the passing of the Act:

  2. Mortgages that were in fact operative or designed to take effect before the date of the passing of the Act, though not executed before that date:

  3. Mortgages to which the Act had at any time applied and which had been varied by the parties thereto:

  4. Mortgages that had been executed in replacement or substantial replacement of mortgages to which the Act had at any time applied.

The Act also applied to all leases that were executed before its passage, and to all leases that had been executed in renewal of such leases.

The Governor-General was empowered to extend the provisions of the Act by Order in Council to apply to any of the following licenses and other instruments: —

  1. Any license or other instrument for the cutting and removal of timber or flax, or for the extraction of coal or fireclay:

  2. Any way-leave or other easement granted in relation to the rights conferred by any such license or instrument as aforesaid:

  3. Any contract or instrument by virtue of which any person entitled under any license or other instrument to cut timber or flax or extract coal or fireclay from any land was under an obligation to pay, whether periodically or otherwise, to any person any moneys calculated wholly or partially by reference to the quantity of timber or flax cut or to be cut, or to the quantity of coal or fireclay extracted or to be extracted, or fixed as minimum payments, whether or not the person entitled to receive payment under such contract or instrument had any right, title, estate, or interest in such timber, flax, coal, or fireclay, as the case may be, or in the land containing it.

Any specific mortgage or lease, or class of such, could be exempted from the operation of the Act by Order in Council.

ADMINISTRATIVE MACHINERY.

A Court of Record, entitled the Court of Review, was set up under the provisions of the Act, consisting of three members appointed by the Governor-General in Council, including the Judge of the Court, the Judge and one other member to constitute a quorum. Provision was also made for the appointment of Registrars, Deputy-Registrars, and other Court officers. The Governor-General in Council had the power to appoint not more than two additional Judges and not more than four additional members of the Court to hold office during his pleasure.

The Act provided for the establishment of Adjustment Commissions consisting of not more than three members, one of whom (in cases where there were more than one) was Chairman. Orders made by the Commissions in adjustment of mortgages, &c., were registered with the Court of Review, to which Court (and to no other) there was a right of appeal against decisions of the Adjustment Commissions.

PROCEDURE.

Any mortgagor, lessee, or guarantor under a mortgage or lease to which the Act applied could make application for an adjustment of his liabilities. Every such application was to contain a complete list of all the creditors and debtors of the applicant, together with a statement of his assets and liabilities and of the securities held by secured creditors. No such application could be filed after 31st January, 1937, although the Court had the power to accept applications in special circumstances to 28th February, 1937. Since the previously existing mortgage-relief legislation was repealed by this Act, the full rights of mortgagees were automatically restored in respect of properties in regard to which no application for adjustment was made within the time allowed.

Where a mortgagor or lessee had made default in complying with his obligations under a mortgage or lease but had not filed any application for relief, the mortgagee or lessor or any guarantor in respect of the mortgage or lease could make application—on or before 31st January, 1937—for adjustment of the mortgagor's or lessee's liabilities.

As soon as possible after the filing of any application, the Registrar in whose office the application was made was required to refer the matter to an Adjustment Commission. Mortgagors and lessees were protected from the exercise of the usual rights and powers in respect of mortgages or leases for which application for adjustment had been made, until such applications were finally disposed of.

ADJUSTMENT OF LIABILITIES.

As a preliminary step towards the adjustment of the liabilities of an applicant, the Adjustment Commission first made an order determining—

  1. Whether the applicant was a farmer applicant, or was a home applicant, or was neither a farmer applicant nor a home applicant:

  2. The value of any property of the applicant other than his interest (if any) in any farm lands:

  3. The basic value of the applicant's interest (if any) in any farm lands:

  4. The basic rent of any property held by the applicant as lessee under any lease:

  5. Whether or not the applicant was entitled to retain any property that was subject to an adjustable security or was comprised in an adjustable lease, or of any part of the property:

  6. The amount of principal and other moneys secured on any property of the applicant by any adjustable security, after allowing for any remissions made.

An adjustable security was defined by the Act as a mortgage to which the Act applied; and, in the case of a farmer applicant, included any other mortgage and any statutory or other charge on any property belonging to him; and, in the case of any applicant who was not a farmer applicant, included any other mortgage and any charge on any property belonging to him, if the property was subject to a mortgage to which the Act applied or was comprised in a lease to which the Act applied. In determining the amount secured by such a security the Commission was required to take accrued interest into account, but it was empowered to remit the whole or any part of such accrued interest due before the date of the order.

Special provisions applied in the case of farm mortgages and leases which did not apply in the case of other mortgages, &c. These provisions are described in Section XVIIIa of this Year-Book (pp. 415-417), to which reference should be made.

In determining the value of any property of any applicant other than his interest (if any) in any farm lands, the Adjustment Commission was enjoined to have regard to the values subsisting at the passing of the Act, but to make such increases or reductions in those values as it deemed necessary in order to make them fair values to serve as a basis for the adjustment of the liabilities of the applicant.

If the value of any property of any applicant (other than his farm lands, if any) was less than the total amount of the principal and other moneys secured on that property by any adjustable securities, the amount so secured was to be reduced to an amount equal to the value of the property as determined above. The difference became an adjustable debt, which the Commission was required to deem discharged on a date to be fixed in that behalf by an order of the Commission. In certain circumstances the Commission could, however, order the payment of part or the whole of an adjustable debt, after taking into consideration such matters as the income of the applicant and possible hardship to the creditor.

The Commission could vary the terms of repayment of securities of an applicant in any manner which in its opinion would be equitable—e.g., the substitution of a table mortgage for a flat mortgage, &c.—having regard to the purpose of the legislation. The Governor-General in Council had power from time to time to fix rates of interest—to be regarded as maxima—for the guidance of Adjustment Commissions in determining the rate of interest chargeable on any adjustable security or any new securities arranged by the Commissions.

Provision was also made for the adjustment of rent payable under leases. The Commission was empowered to determine a basic rent, having regard to the value of the property; the rent payable under an adjustable lease—i.e., one to which the Act applied—being reduced to the basic rent. Arrears of rent became an adjustable debt which was dealt with in the manner indicated above in respect of excess mortgage indebtedness—i.e., it was cancelled—with certain exceptions.

As indicated in a preceding paragraph, the Adjustment Commission was empowered to determine whether or not an applicant was entitled to retain farm lands, home premises, or other property. In determining whether or not any applicant was entitled to retain any property, or any part of the property (not being farm lands) that was subject to an adjustable security or was comprised in an adjustable lease, the Adjustment Commission was required to take into consideration the following matters, namely:—

  1. The conduct of the applicant in relation to the care of the property and the disbursement of his income:

  2. Whether any relief granted pursuant to this Act would be reasonably likely to enable the applicant to meet his future liabilities in respect of the property:

  3. Any other matters that it deemed relevant.

The Adjustment Commission was empowered to make such orders as it thought fit for the sale or offering for sale, on such terms and conditions as the Commission might fix in that behalf, either by public auction or public tender, with a right for any mortgagee to become the purchaser; or by private contract, whether to any specified mortgagee, creditor, or other person, or otherwise howsoever—

  1. Of any property of any applicant that was subject to an adjustable security or was comprised in an adjustable lease, if the Adjustment Commission determined that the applicant should not be entitled to retain the property, or if the applicant had elected not to retain the property or had abandoned the property:

  2. In the case of a farmer applicant, of any other property, if the Adjustment Commission considered that its sale was desirable for the purposes of the adjustment of the liabilities of the applicant.

If the proceeds of the sale of such property did not meet the commitments on it, the amount remaining unpaid was to be deemed an adjustable debt; while the whole amount of the applicant's liability in respect of such property not offered for sale or of an abandoned property could be deemed an adjustable debt. The latter provision did not, however, release the property from the encumbrance. Provision was made for the adjustment of the liability of guarantors in respect of mortgages or leases coming within the scope of the Act on similar lines to those set out in respect of mortgagors or lessees.

MISCELLANEOUS PROVISIONS.

In respect of mortgages, &c., coming within the scope of the legislation, the Court had power to reopen transactions where creditors had already exercised their rights, but only in respect of actions taken subsequent to 25th August, 1936.

The Court could make orders to protect creditors from acts intended to delay or defeat their claims. An applicant was also restrained from disposing of property or obtaining credit without disclosure while his application was pending.

Notwithstanding anything to the contrary in any other Act, State lending departments and local authorities were empowered to agree to adjustment of the liabilities of any mortgagor, lessee, or guarantor in accordance with the provisions of the Act.

It became lawful for any trustee to agree to an adjustment of the liabilities of any mortgagor, lessee, or guarantor in accordance with the provisions of the Act. No covenant or condition contained in any mortgage (whether executed before or after the passing of the Act) was to have any force or effect to deprive any mortgagor, lessee, or guarantor of any benefits provided for by the Act.

Where the amount secured on any mortgage had been reduced, or where the rent of a property had been reduced or arrears of rent remitted by the operation of the Act, it is not lawful (except with the leave of the Court) for the owner of the land, or the owner of any interest in the land or any part thereof, to sell or otherwise dispose of it before 1st January, 1941.

The mortgagor under any mortgage to which the Act applied could at any time, not later than 31st January, 1937, servo a notice on the mortgagee requiring him to reduce the rate of interest to such rate as might be specified in the notice. If the mortgagee did not do be within one month after the service of the notice the mortgagor could discharge his liability by payment of the principal sum plus interest up to the date of such repayment.

Saving provisions protected a mortgagor to whom relief had been granted under the pre-existing mortgagors' relief legislation or the Rural Mortgagors Final Adjustment Act, 1934-35, until review of the position of the mortgage by an Adjustment Commission.

APPLICATIONS DEALT WITH.

Shortly after the passage of the Mortgagors and Lessees Rehabilitation Act the Court of Review was constituted, and the Dominion was divided into districts, one or more Adjustment Commissions being appointed for each district, Some thirty-four Commissions were originally appointed, but in order to reach finality at a reasonably early date these were afterwards increased, the final organization being fifteen urban and twenty-five rural Commissions.

The following statement shows the number of applications dealt with by the Court:—

Farm.Other.Totals.
Applications filed15,62118,91234,533
Applications withdrawn3,2235,0718,294
Voluntary adjustments1,3271,3032,630
Orders made11,07112,53823,609

The following summary indicates the extent to which relief has been granted to mortgagors and. lessees in those cases where orders were made by Adjustment Commissions and filed in the Court of Review.

Farm.Other.Totals.
Principal reduced5,4064,0819,487
Interest arrears remitted4,9822,6397,621
Term of first mortgages extended7,6228,80716,429
Term of second or subsequent mortgages extended3,0182,7575,775
Rate of interest reduced9,14610,71019,856
Rental reduced2,4771752,652
Rental arrears reduced or remitted2,3271652,492
Remission of unsecured debts3,4464783,924
Amount written off by—£££
Reduction of principal5,589,1481,047,6666,636,814
Remission of interest arrears1,368,768224,8651,593,633
Reduction or remission of rent arrears432,04312,999445,042
Remission of unsecured debts1,143,47866,3671,209,845
Total£8,533,437£1,351,897£9,885,334

REDUCTION OF INTEREST.

Part III of the National Expenditure Adjustment Act, 1932, had as its purpose reductions in rates of interest payable by mortgagors, and in rents and certain other fixed charges, commensurate with reductions in salaries and wages made by Part I of the Act and by the Finance Act (No. 1) of 1931. An amending Act, passed later in 1932, made certain modifications and enacted some necessary changes in the machinery of the legislation.

The term “mortgage” for the purpose of the Act has a wider meaning than in ordinary usage. It “means any deed, memorandum of mortgage, instrument, or agreement whereby security for the payment of moneys or for the performance of any contract is granted over land or chattels or any interest therein respectively”; and includes company debentures, mortgages of life-insurance policies, agreements for the sale and purchase of land, and customary hire-purchase agreements within the meaning of the Chattels Transfer Act, 1924.

The Act does not apply to mortgages (not being for a fixed term, expired or unexpired) securing the repayment of principal moneys repayable on demand, nor to mortgages executed after 1st April, 1932. Under the amending Act a policy for securing a life assurance, endowment, or annuity is not a chattel within the meaning of the Act, and is, therefore, not subject to its provisions.

The reduction in the rate of interest is 20 per centum, and it originally applied to all such interest accruing on or after 1st April, 1932, and before 1st April, 1935. The operation of the reduction was extended to 1st April, 1937, by the Finance Act, 1934, and made permanent by a section of the Mortgagors and Lessees Rehabilitation Act, 1936. There is provision, however, that the rate of interest shall not be reduced below 6½ per cent. in the case of chattel-mortgages, nor 5 per cent. in the case of other mortgages except in the case of income-tax-free company debentures to which section 171 of the Land and Income Tax Act, 1923, is applicable, where the minimum is 4½ per cent.

Provision was made for an appeal for relief by an aggrieved mortgagee to the Supreme Court or to a Stipendiary Magistrate (if the annual interest did not exceed £300) on the ground that the existing rate of interest was fair in the circumstances, or that adequate concessions had already been given, or that the reduction would cause undue hardship. The Governor-General may from time to time transfer to the Court of Review set up under the Mortgagors and Lessees Rehabilitation Act, 1936, all the functions of the Supreme Court or of a Stipendiary Magistrate under the above provision.

MORTGAGES REGISTERED AND DISCHARGED.

A table is given showing the amount represented by mortgages registered and discharged during each of the last twenty years.

Year ended 31st March,Mortgages registered.Mortgages discharged.Year ended 31st March,Mortgages registered.Mortgages discharged.
 ££ ££
192048,442,90023,086,7461,93038,869,14428,328,993
192166,960,43429,464,1321,93130,208,44720,056,691
192234,789,32413,234,3651,93213,410,58110,036,385
192326,031,59614,579,7671,9339,161,6638,149,355
192437,862,41922,246,5121,9347,802,8539,086,847
192541,123,96629,733,8831,93511,845,63413,732,853
192647,093,78033,958,1441,93616,227,05817,553,233
192739,979,68129,233,3291,93719,700,65019,803,446
192833,190,51923,998,8401,93818,144,65319,361,425
192933,559,93225,269,6131,93920,050,01116,598,505

Although the statistics of registrations and discharges afford a valuable index of the movement in mortgage indebtedness over the period, year to year comparisons are affected by the fact that duplicate registrations are included prior to 1929-30, while from 1929-30 the extent of duplication has been available and the net figures have been inserted after necessary deductions on that account. Furthermore, the figures include collateral and guarantee mortgages not representing money indebtedness. On the other hand no amount is shown as secured in a proportion of cases where a mortgage is given in anticipation of advances, &c. In addition there are numbers of privately arranged advances which are not registered; and stock and crop liens, bills of sale, and instruments under the Chattels Transfer Act are not included in the statistics.

Many discharges are not registered, particularly in the case of leaseholds and also of second or other further mortgages when the power of sale has been exercised by the first mortgagee. The figures for discharges are further affected by the high proportion of table mortgages. This is particularly so in cases where the mortgage is approaching maturity, since the whole amount remains on the register despite the fact that the actual indebtedness has been considerably reduced.

MORTGAGES REGISTERED.

The total amount for which mortgages were registered, both under the deeds registra and under the Land Transfer Act, in each registration district during the last five years is given in the next table.

District.1934-35.1935-36.1936-37.1937-38.1938-39.
 £££££
Auckland2,923,3094,097,8845,806,6145,954,7566,443,963
Gisborne203,791722,025676,029515,222370,241
Hawke's Bay1,143,9731,288,4551,457,5351,087,2571,001,964
Taranaki580,168684,932931,573933,1631,034,046
Wellington2,750,8064,180,9544,795,2194,217,9934,705,374
Marlborough126,472524,462262,483247,388260,788
Nelson224,598328,739323,364347,455419,024
Westland86,945116,787139,396173,878306,948
Canterbury1,987,4612,810,2522,769,3823,263,6532,985,696
Otago1,334,1701,762,7491,629,2081,710,5581,978,643
Southland696,997834,419965,297950,7441,016,038
  Gross totals12,058,69017,351,65819,756,10019,402,06720,522,725
  Duplications213,0561,124,60055,4501,257,414472,714
  Net totals11,845,63416,227,05819,700,65018,144,65320,050,011

Eight of the eleven registration districts show increases in the value of mortgages registered during 1938-39, as compared with the previous year, the total of net registrations for the whole Dominion increasing by £1,905,358.

Of the gross total of £20,522,725 registered in 1938-39, £20,334,847 or 99.1 per cent. was in respect of mortgages under the Land Transfer Act. The proportion is now approaching 100 per cent., owing to the operation of the Land Transfer (Compulsory Registration of Titles) Act, 1924 (vide Section XVIIa).

MORTGAGES REGISTERED.—CLASSIFIED BY AMOUNT.

Of the net total of £20,050,011 registered for the financial year 1938-39, mortgages up to £500 in value represented 15 per cent. of the total value registered; from £501 to £1,000, 28 per cent.; from £1,001 to £5,000, 38 per cent.; and above £5,000, 19 per cent. The following table gives the number and amount in each registration district according to the sum secured:—

District.£500 and under.£501 to £1,000.£1,001 to £5,000.Over £5,000.
Number.Amount.Number.Amount,Number.Amount.Number.Amount.
  £ £ £ £
Auckland2,900848,5252,7442,067,4431,4812,743,75983784,236
Gisborne17454,1828967,73673140,9105107,413
Hawke's Bay403115,331305232,850160306,53434347,249
Taranaki370108,723293219,753235496,06818209,502
Wellington1,893491,6111,236936,6949391,589,3521031,687,717
Marlborough11330,6197055,3084289,931984,930
Nelson366100,802178135,63290156,290326,300
Westland18949,4709263,3973165,0815129,000
Canterbury1,815499,4231,235920,373499982,85546583,045
Otago1,805451,810833605,719393668,96532252,149
Southland570146,216472360,099229431,052878,671
  Gross totals10,5982,896,7127,5475,665,0044,1727,670,7973464,290,212
  Duplications........35,20011467,514
  Net totals10,5982,896,7127,5475,665,0044,1697,665,5973353,822,698

The total number of mortgages comprising the net aggregate was 22,649 as compared with 21,229 in 1937-38.

In addition, there were 2,553 mortgages registered in 1938-39 and 2,830 in 1937-38 for which no amount was shown. Excluding these, the average amount for each mortgage registered was £885, as compared with £855 in 1937-38.

MORTGAGES ON URBAN AND RURAL SECURITIES.

Figures are available in the case of Land Transfer registrations showing for each registration district the amounts advanced on urban and on rural properties. No similar data are available in regard to mortgages registered under the deeds system, but, bearing in mind that the latter constituted in 1938-39 a little less than 1 per cent. of the total, it will be evident that the figures given approximately indicate the character of the securities. The distinction is between “town and suburban” and “country” holdings, but information is not always available to enable a strictly accurate classification to be made. Generally, however, town and suburban mortgages are regarded as such if secured on properties situated within cities or boroughs, or on small holdings in the nature of building allotments which are not definitely distinguishable as country properties. Mortgages classified as town and suburban are secured on areas averaging a little less than one-third of an acre in extent, as compared with an average area in 1938-39 of some 283 acres in the case of “country” securities.

The value of mortgages on town and suburban property registered in 1938-39 was £3,170,349 more than that on country property. In point of numbers 72 per cent. of the mortgages referred to town and suburban areas, and 28 per cent. to country properties. The average amount secured per acre on rural holdings was £4 6s. 9d., as against £2,169 in the case of town and suburban properties. The average amount of each mortgage on country property was £1,228, as compared with £658 on town and suburban holdings. The following table gives mortgages registered during the year 1938-39 under the Land Transfer Act.

District.Town and Suburban.Country.
Number.Area.Amount secured.Number.Area.Amount secured.
  Acres.£ Acres.£
Auckland5,3392,0803,396,9512,694525,3642,897,422
Gisborne243149133,38713292,863236,854
Hawke's Bay728329406,776300128,655595,188
Taranaki489158294,068546104,806739,778
Wellington3,6247773,135,308972221,9881,570,066
Marlborough15011491,558106101,484169,230
Nelson458108260,47824749,451157,966
Westland26956190,9558617,068115,993
Canterbury2,8926631,833,885894407,3631,151,811
Otago2,6594971,422,267577180,002518,868
Southland1,006487586,965436148,915429,073
Totals17,8575,41811,752,5986,9901,977,9598,582,249

A decennial summary upon similar lines is also given. The low figures of the years following 1930-31 evidence the force of the depression, the decline being approximately equally marked in urban and in rural districts. A considerable measure of recovery is indicated in the statistics from 1934-35 onwards.

Year ended 31st March,Number.Area.Amount secured.
Town and Suburban.Country.Total.Town and Suburban.Country.Total.
  Acres.Acres.Acres.£££
193038,8628,0524,206,5984,214,65018,936,21917,681,48836,617,707
193132,3296,6693,689,5113,696,18014,262,91914,203,28728,466,206
193217,7934,0462,276,9592,281,0055,771,3646,814,78312,586,147
193313,2573,2311,784,7811,788,0124,133,5074,806,4188,939,925
193412,1922,7491,433,8921,436,6413,873,0768,779,9177,652,993
193514,7753,4251,988,1741,991,5995,087,5346,608,10711,695,641
193618,6794,6012,558,6542,563,2557,731,7459,325,47817,057,223
193721,8754,8582,446,3242,451,1828,932,96610,486,48519,419,451
193823,7646,2441,889,5681,895,81210,624,9438,547,84619,172,789
193924,8475,4181,977,9591,983,37711,752,5988,582,24920,334,847

MORTGAGES DISCHARGED.

Of the gross total of mortgages released in 1938-39, £16,557,097 was under the Land Transfer Act and £190,882 under the deeds-registration system. The corresponding figures for the previous year were £19,136,521 and £258,867 respectively.

The total amount of mortgages discharged for the last three years is as follows:—

District.1936-37.1937-38.1938-39.
Number.Amount.Number.Amount.Number.Amount.
  £ £ £
Auckland6,7776,011,9647,1835,900,6446,8814,796,838
Gisborne526636,381450536,160464604,436
Hawke's Bay1,2081,461,7971,2611,431,1511,033954,516
Taranaki1,1651,101,3601,1151,080,5691,2241,046,071
Wellington4,9095,148,2594,9914,408,8654,4413,773,687
Marlborough236299,960244222,102296283,707
Nelson524213,905575265,442623295,167
Westland212148,695223156,266306142,832
Canterbury2,9052,422,5733,5962,974,6023,5842,446,069
Otago2,2521,530,3872,7721,634,0252,8301,624,489
Southland1,117839,4051,234785,5621,323780,167
  Gross totals21,83119,814,68623,64419,395,38823,00516,747,979
  Duplications411,240433,9636149,474
  Net totals21,82719,803,44623,64019,361,42522,99916,598,505

MONTHLY REGISTRATIONS AND DISCHARGES.

Monthly figures of registrations and discharges are regularly published in the Monthly Abstract of Statistics. The gross figures for recent months are as follows:—

Month.Mortgages registered.Mortgages discharged.
Number.Amount.Number.Amount.
    1938-39. £ £
April1,4721,247,6851,3441,061,875
May2,0601,471,2551,9961,618,622
June2,2221,621,2152,1391,555,913
July2,1331,746,7512,1131,630,155
August2,3281,941,7102,2801,564,504
September2,1711,825,5822,0801,375,732
October2,1281,850,8511,9091,467,146
November2,2821,887,5391,9821,376,918
December2,4461,927,1332,1421,460,102
January1,3671,103,6281,215809,988
February2,0421,512,2151,7271,263,209
March2,5652,387,1612,0781,563,815
    1939-40.    
April1,6161,564,7171,411952,024
May2,4011,760,2842,1981,359,119
June2,2771,882,0692,0811,534,089
July2,2171,721,4232,0651,328,282
August2,4301,843,6141,9921,394,887
September2,0021,618,4231,8781,292,906
October1,8691,405,5611,8501,246,310

RATES OF INTEREST.

Classified according to the various rates of interest, and including duplicate registrations (to the extent of £1,257,414 in 1937-38 and £472,714 in 1938-39) the amounts in the mortgage-deeds registered were—

Rate per Cent.1937-38.1938-39.Rate per Cent.1937-381938-39.
* Including State Advances and Rural Intermediate Credits.
 ££ ££
0311425391,427436,419
12,7706105⅗6,43021,340
23,8252,6305⅝600590
1,8814,9242,2355,995
362,27965,1656517,132387,807
..25049,06715,900
23,652193,6356 2/54,000150
4840,648647,950447,703159,807
4⅛2,972,5154,231,9726⅝800..
2,137,7551,126,8697501,250
4⅜8,0008757130,172158,714
4⅖..5,50014,6106,660
4,634,8614,902,373851,01239,403
4⅝107,880464,3968 1/3..60
461,296368,369325300
4⅘..75093,1464,938
4⅝..7251019,13424,442
4⅞2,730..11½..36
53,300,4853,350,9061550..
5⅛1,549..20150180
5⅕13,3627,0962811..
74,387102,035Unspecified*3,112,1273,801,279
5⅖1,000..Totals19,402,06720,522,725

Exclusive of cases where the rate of interest was not specified, 1.6 per cent. of the money raised by way of mortgage during 1938-39 was at rates below 4 per cent.; 70.3 per cent. was at the rate of 4 per cent. and under 5 per cent.; 23.5 per cent. was at the rate of 5 per cent. and under 6 per cent.; 3.2 per cent. was at 6 per cent. and under 7 per cent.; and 1.4 per cent. was at rates of 7 per cent. or over. The average rate of interest on mortgages registered has been as follows:—

Year ended 31st March,Average Rate per Cent.Year ended 31st March,Average Rate per Cent.
19135.761,9276.47
19145.821,9286.46
19155.761,9296.46
19165.741,9306.35
19175.801,9316.25
19185.841,9326.28
19195.841,9335.88
19205.751,9345.56
19215.891,9355.06
19226.421,9364.73
19236.571,9374.60
19246.381,9384.65
19256.301,9394.58
19266.22....

The year 1921-22 witnessed a sharp increase from 5.89 per cent. to 6.42 per cent., coinciding with the financial stringency associated with the post-war trade depression. The peak of 6.57 per cent. was reached in the following year, after which there was a gradual downward trend to 1925-26. The rise after 1925-26 is more apparent than real, and is probably due mainly to the fact that commencing with 1926-27 State Advances mortgages are all treated as unspecified (the rate of interest is generally not shown in the mortgage registration), whereas formerly in some districts they were included as unspecified and in others according to the known interest rate.

The downward trend in rates of interest during recent years is mainly due to legislative action. In 1931-32 the financial year immediately preceding the operation of the National Expenditure Adjustment Act, the average rate of interest on mortgages registered was 6.28 per cent., as compared with 4.58 per cent. in 1938-39. In the former year only 10.2 per cent. of the specified amount was at rates not exceeding 5 per cent., while no less than 43.3 per cent. was at rates exceeding 6 per cent. The corresponding figures for 1938-39 were 91.9 per cent. for amounts where the rate did not exceed 5 per cent. and 2.5 per cent. for the amounts on which the rate exceeded 6 per cent. A further analysis of the position is given below:—

Year ended 31st March,Not exceeding 4 per Cent.Exceeding 4 per Cent. but not exceeding 5 per Cent.Exceeding 5 per Cent. but not exceeding 6 per Cent.Exceeding 6 per Cent.
Amount.
 ££££
193142,8711,274,61810,458,04611,396,829
193247,6451,015,8384,808,2674,478,563
1933135,6141,883,9383,456,6371,848,899
1934203,0702,458,7442,450,773861,925
1935995,2555,765,6832,014,969596,914
19361,754,8699,766,0861,868,635454,875
19371,354,59513,331,0681,380,466479,509
1938935,36613,625,5221,008,122720,930
1939915,58914,452,735941,282411,840
Percentage of Total.
 Per Cent.Per Cent.Per Cent.Per Cent.
19310.25.545.149.2
19320.49.846.543.3
19331.925.747.225.2
19343.441.241.014.4
193510.661.521.56.4
193612.770.513.53.3
19378.280.68.32.9
19385.783.76.24.4
19395.586.45.62.5

ESTIMATE OF MORTGAGE INDEBTEDNESS.

The estimates of aggregate nominal value of mortgages given hereunder relate solely to mortgages of real estate. Mortgages on stock or chattel securities are not included in the figures given hereunder.

Statistics of the registrations of mortgages on land and of the discharges of such mortgages date back to 1873. The amount of mortgages now in force, however, cannot be ascertained directly from the registration figures, for the following reasons:—

  • No amount is shown as secured in many cases where a mortgage is given in anticipation of advances.

  • Many privately-arranged advances are not registered.

  • The figures include collateral and guarantee mortgages not representing money indebtedness.

  • Duplicate registrations are included.

  • Many discharges are not registered.

  • In the case of table mortgages, the whole amount remains on the register till the last instalment is paid.

The factors leading to overstatement of the amount remaining are much more important than those tending to understatement, and the main source of weakness of the figures, for the purpose of ascertaining the amount in force, is undoubtedly the failure to register many discharges.

Supplementary statistics of mortgages in force on lands subject to land-tax were compiled as at 31st March, 1928, and 31st March, 1929, from the returns furnished annually to the Commissioner of Taxes for the purposes of land-tax assessment. At the latter date mortgages on the lands coming within the scope of the investigation—i.e., practically all holdings of an unimproved value of £500 and over—aggregated £160,000,000, of which £120,000,000 was secured on country lands and £40,000,000 on town lands or business-sites.

From a consideration of other data, principally the 1926 census statistics of dwellings and the nature of their occupancy, it would appear that the total mortgage indebtedness on land at 31st March, 1929, was in the vicinity of £225,000,000, of which £125,000,000 would be on country lands and £100,000,000 on town lands and business and residential sites.

If the figure of £225,000,000 be accepted as roughly correct for 1929, it affords a basis for estimating the amount of mortgages on land in force in earlier and later years. Up to 1900 registrations of mortgages under the Land Transfer Act had exceeded registrations of discharges by only £35,000,000, while the somewhat scanty figures of mortgages under the Deeds Registration Act showed small annual totals, with discharges practically balancing registrations of mortgages. It appears reasonable, therefore, to reckon the total mortgages on land which were in force at 31st March, 1900, at £35,000,000.

Interpolating between this figure of £35,000,000 in 1900 and that of £225,000,000 in 1929, it is possible to estimate figures for intervening years from a consideration of the annual registrations of mortgages and discharges. Allowance must be made for the widening degree of divergence between the mortgages nominally remaining on the register and the amount really in force, due to a number of factors, including the increased use of the table type of mortgage.

The calculation, on a similar basis, can be extended to cover years subsequent to 1929, though it is necessary to point out that in the figures for recent years in the following statement no attempt has been made to allow for unregistered reductions (temporary or permanent) in principal amounts that may have been made by arrangement between mortgagor and mortgagee. The allocation between country and town lands has been made on the basis of separate registration statistics for these two classes from 1916 onward, and arbitrarily, though with some regard to the figures of Government valuation of land in boroughs and counties, for earlier years.

ESTIMATED MORTGAGE DEBT ON LAND.

As at 31st March,On Town and Suburban Lands.On Country Lands.Total.As at 31st March,On Town and Suburban Lands.On Country Lands.Total.
 £(m.)£(m.)£(m.) £(m.)£(m.)£(m.)
19001520351,9205580135
19011621371,9216090150
19021822401,9226798165
19031824421,92370105175
19042025451,92475110185
19052226481,92580115195
19062428521,92685120205
19072532571,92790120210
19082834621,92898122220
19093038681,929100125225
19103240721,930105130235
19113342751,931107133240
19123545801,932110135245
19133748851,933110135245
19144050901,934100135240
19154253951,935105135240
191645551001,936105135240
191745601051,937105130235
191845651101,938105130235
191948671151,939105125230

From the nature of the question and the shortcomings of the statistical data, it will be realized that no close degree of accuracy can be claimed for the foregoing figures, and it will be noticed that movements in recent years are shown only in units of £5,000,000. The figures are presented merely with a view to throwing some light on one aspect of an important question of the day.

MORTGAGES AND LAND VALUES.

In the returns of land, which are required by law to be furnished annually to the Commissioner of Taxes by all owners of land of an aggregate unimproved value in excess of £500, provision is made for showing (for mortgage-exemption purposes) particulars of amounts owing by the taxpayer at noon on the 31st March, secured on the land either by registered mortgage or by agreement to purchase. Although this source of information does not cover all mortgages (owing to exemptions and to neglect to furnish returns in certain cases), nevertheless most informative figures on the question of the incidence of mortgages in conjunction with such matters as area, unimproved value, and location (i.e., urban or rural) are disclosed.

Statistics derived from these tax returns were last compiled for the tax-year 1929-30, but the compilation was then discontinued. A resumption of this work has now been made however, and a tabulation for the tax-year 1939-40 is at present (October, 1939) under way. A brief summary of the statistics for the previous compilations appears in the 1935 Year-Book. More detailed figures will be found in the 1932 Year-Book.

Chapter 33. SECTION XXXIII.—BANKRUPTCY.

INTRODUCTORY.

THE law relating to bankruptcy in New Zealand is contained in the main in the Bankruptcy Act, 1908 (which is a consolidation of previous enactments), and the Bankruptcy Amendment Act, 1927. Jurisdiction in bankruptcy matters is vested in the Supreme Court. The Governor-General, however, may by Proclamation confer similar jurisdiction on a Magistrate's Court in cases where the liabilities do not exceed £300.

All proceedings in bankruptcy are commenced by a petition filed in the Court. A petition may be filed either by the debtor or by a creditor, a fee of £6 being payable. The filing of a debtor's petition is equivalent to an order of Court adjudging the debtor a bankrupt, no order being required in this case. Not less than £30 in the aggregate must be owing by the debtor to the creditor or creditors filing a petition.

Immediately on a debtor's petition being filed or adjudication being made on a creditor's petition, the Registrar of the Court gives notice to the Official Assignee in Bankruptcy, in whom all the property of the bankrupt thereupon vests. The bankrupt must hand over his books of account to the Official Assignee, make out balance-sheets, give inventories of his property and debts, and generally assist in the realization of his property. The Assignee may summon the bankrupt before himself, or before a Magistrate, to be examined on oath. The Bankruptcy Amendment Act, 1927, forbids (save with the consent of the Court, on the application of the Official Assignee) the publication of a report of any examination of a bankrupt before the Assignee or of any matter arising in the course of such an examination.

The Official Assignee is empowered to sell the bankrupt's property, to claim debts due to the bankrupt estate, to carry on the business of the bankrupt so far as is necessary or expedient for its beneficial winding-up, or to divide the property among the creditors. The bankrupt may be appointed by the Official Assignee to manage his estate or carry on his business on behalf of the creditors.

Creditors may accept a composition in satisfaction of the debts due them. In such a case, after approval of the Court, a deed of composition is executed and filed, and the bankruptcy annulled.

On application being made by the bankrupt, the Court is empowered to grant him an order of discharge, either absolute, suspended, or conditional. The application, which must be made within four months after adjudication, may be opposed either by the Official Assignee or by any creditor who has proved his claim. A public examination of the bankrupt may be demanded by the Assignee or a creditor.

Under the Mortgagors and Lessees Rehabilitation Act, 1936, a mortgagee, creditor, or other person on whom notice had been served under the Act could not, while an application for relief was pending or an order for relief was in force, file or proceed with (without leave of Court) a bankruptcy or winding-up petition against the mortgagor or lessee. This provision was also included in the pre-existing Mortgagors and Tenants Relief Act, 1933.

By the Trustee Amendment Act, 1933, protection is afforded to a trustee who pays trust-moneys to a bankrupt in good faith and without knowledge of the bankruptcy.

UNDISCHARGED BANKRUPTS.

Section 14 of the Bankruptcy Amendment Act, 1927, requires the annual compilation of a list showing the names, occupations, and other particulars of all persons who have been adjudged bankrupt since 31st March, 1927, and who have not obtained an order of discharge, or whose order of discharge is suspended for a term, or is subject to conditions remaining unfulfilled.

It was originally laid down that the list was to be published in the New Zealand Gazette, but by section 9 of the Statutes Amendment Act, 1936, this requirement has been discontinued, and the Minister of Justice may now from time to time publish the list, or so much of it as relates to adjudications within any specified period ending on the dale of the compilation of the list.

TRANSACTIONS IN BANKRUPTCY.

The number of transactions in bankruptcy during the last five years is given below. A fifty-year record of the more important features will be found in the Statistical Summary, near the end of this volume.

Year.Petitions by Debtors.Adjudications on Petitions by Creditors.Cases in which Composition accepted.Orders of Immediate Discharge granted.Cases in which Orders of Discharge were suspended.
193427551215621
193521839121425
193622535316417
193719527212815
193823631..1009

The general bankruptcy statistics do not cover private assignments and compositions, but relate only to cases dealt with by Official Assignees. Certain statistics of private assignments are available, and details of these appear at the end of this section.

ASSETS AND LIABILITIES.

Debtors are required to file a statement of the extent of their liabilities and assets, but there is usually a marked difference between these statements and the amounts actually realized by the Official Assignee or the debts subsequently proved by creditors. During the last decade the amounts actually realized by Official Assignees averaged 36 per cent. of assets according to debtors' statements, and 15 per cent. of debts proved.

It should be understood that in the following table the figures in each column refer to all transactions under the respective heads during the year, the amounts realized by Assignees and paid in dividends and preferential claims relating partly to the current year's bankruptcies (many of which, however, are not disposed of during the year) and partly to cases commenced in previous years.

Year.Number of Bankruptcies.Debtors' Statements of Assets, excluding Amounts secured to Creditors.Amounts realized by Official Assignees.Amount of Debts proved.Amounts paid in Dividends and Preferential Claims.
  ££££
1929687233,65591,180502,11254,759
1930780471,50283,308827,34568,611
1931848401,649108,8091,042,18763,185
1932661252,34875,657624,89255,940
1933450114,81761,723489,89547,884
193432672,57244,533258,92033,788
193525768,21641,037225,50823,142
193626040,55732,983169,86621,520
193722259,10055,970171,70626,700
1938267118,69864,511230,46330,793

A similar classification by districts for the year 1938 is given below:—

District or Sub-district.Number of Bankruptcies.Debtors' Statements of Assets, excluding Amounts secured to Creditors.Amounts realized by Official Assignees.Amount of Debts proved.Amounts paid in Dividends and Preferential Claims.
  ££££
Whangarei71,1742063,5203
Auckland418,82511,32122,6722,700
Hamilton325,9235,19920,9062,598
Gisborne67312931,7323,079
Wairoa2117227..
Napier191,4791,4572,365890
Dannevirke1332379464217
New Plymouth102944811,953722
Stratford394666081
Hawera11330182952216
Wanganui167,3432,46523,0926,481
Taihape119667825,080804
Palmerston North191,3348677,796833
Wellington281,6298,0015,3663,632
Pahiatua1414136114
Masterton32331,9271,388691
Blenheim21,0131,0621,099439
Nelson648685011,326129
Hokitika1....1,661..
Christchurch2284,64222,919107,6503,401
Timaru42064,5101,0242,928
Oamaru126......
Dunedin131,3558246,462387
Invercargill82316723,084528
    Totals267118,69864,511230,46330,793

The table following shows for each of the last ten years the average amount of debts proved per estate, and also the average dividend paid.

Year.Average Debts proved per Estate.Proportion of Dividends to Debts.
 £Per Cent.
192973110.91
19301,0618.29
19311,2296.06
19329458.95
19331,0899.77
193479413.05
193587810.26
193665312.67
193777315.55
193886313.36
The total payments in 1938 made from assets realized were—£
Dividends to creditors (excluding preferential and secured claims)28,699
Preferential claims (rents, wages, &c.)2,094
Secured claims15,855
Government commission4,337
Costs of actions, solicitors' and supervisors' fees2,009
Expenses incurred in carrying on estates2,162
Other charges1,586
      Total£56,742

Balances in bank to the credit of estates aggregated £32,386 on 31st December, 1938, an increase of £6,611 during the year.

CLASSIFICATION OF AMOUNT OF LIABILITIES.

The following table shows for each of the last five years the number of bankruptcies with various amounts of liabilities:—

Liabilities.1934.1935.1936.1937.1938.
Under £50161614715
£50 and under £1003119502932
£100 and under £2507767817796
£250 and under £5007260444857
£500 and under £1,0006750373737
£1,000 and under £2,0002922181516
£2,000 and under £5,00023201358
£5,000 and over113346
    Totals326257260222267

Liabilities in the bulk of. failures do not exceed £1,000, the number under this amount in 1938 being 237, representing 89 per cent. of the total.

OCCUPATIONS OF BANKRUPTS.

The following table shows in broad industrial groups the occupations of those adjudged bankrupt in the last five years:—

 1934.1935.1936.1937.1938.
* Excluding partnerships (two for 1934, four for 1935, one for 1936, and eight for 1938), the occupations of the partners only being shown.
Fishing and trapping..2221
Agricultural and pastoral5345421831
Forestry45438
Mining and quarrying11223
Processes relating to minerals....2....
Processes relating to chemicals, animal and vegetable products1..1....
Processes relating to metals, tools, jewellery, &c.678111
Makers of ships, boats, conveyances, &c.67573
Processes relating to fibrous materials, textiles, and dress536103
Processes relating to harness, saddlery, and leatherware......2..
Processes relating to food, drink, and tobacco1631128
Processes relating to wood, &c., n.e.i.66353
Processes relating to paper, stationery, printing, photography11....3
Construction or repair of buildings, roads, railways, canals3629412943
Transport and communication2821181223
Commerce and finance7968486158
Public administration, clerical, and professional19131595
Entertainment, sport, and recreation52411
Personal or domestic service2110887
Dependent on public or private support7948..
Indefinite occupations3021354248
Totals324*253*259*222259*

Of the 1938 total, 66 were employers of labour, 60 were working on their own account but not employing labour, and 133 were working for wages. Of the individual occupations, the greatest numbers were found in labourers (41), carpenters (14), farmers (13), salesmen (11), and motor-drivers (11).

PRIVATE ASSIGNMENTS.

Official bankruptcies, as explained earlier, do not comprise all financial failures, and in order to obtain completeness the bankruptcy statistics have been supplemented since 1928 by the collection of data relating to private assignments. The statistics cover all operations arising out of deeds of assignment made under section 167 (2) of the Stamp Duties Act, 1923.

If private assignments be added to bankruptcies, the total number of failures in 1938 was 340, made up of 267 bankruptcies and 73 assignments. The corresponding total for 1937 was 308.

The number of bankruptcies in 1938 was the highest since 1934, and the number of assignments the lowest since statistics of assignments were instituted (1928).

The table following shows private assignments during 1938. The column for assets realized covers only the proceeds of realization in respect of 1938 assignments fully realized.

District or Sub-district.Number.Assets.Liabilities.Assets realized (Completed Estates).
Completed Estates.Incomplete Estates.Completed Estates.Incomplete Estates.Completed Estates.Incomplete Estates.
* Includes 12 estates for which no returns were received.
Whangarei121,4891,2501,4991,650907
Auckland9148,78352,22011,38946,0225,695
Hamilton112,6775115,0456322,422
Napier1140065031298050
New Plymouth3..924..1,318..671
Hawera11387290353634141
Wanganui..1..150..200..
Taihape1..1,050..1,213..650
Palmerston North..1..840..807..
Masterton..1..110..256..
Wellington11179..239..80
Blenheim11171..508..61
Nelson..2..1,910..2,171..
Greymouth1..650..1,043..496
Hokitika1..1,305..1,248..446
Christchurch11014013,90419316,069102
Timaru112,0021302,2462511,890
Dunedin373,73315,7317,43017,2182,841
Invercargill..3..889..2,217..
    Totals2647*23,89088,58534,03689,10716,452

Assets of the sixty-one estates for which returns were received were valued at £112,475, and the liabilities were estimated at £123,143. Assets realized in completed estates represented 48 per cent. of liabilities.

CLASSIFICATION OF AMOUNT OF LIABILITIES.

The following table classifies estates assigned during the last five years according to the amount of liabilities:—

Liabilities.1934.1935.1936.1937.1938.
Under £100....1....
£100 and under £250661054
£250 and under £500182525109
£500 and under £1,0001822231714
£1,000 and under £2,0002924202318
£2,000 and under £5,000910101312
£5,000 and over95244
Unspecified101421412
Totals99106938673

Thirty-seven per cent. of the specified estates in 1938 show liabilities below £1,000. In the case of official bankruptcies the corresponding figure was 89 per cent.

OCCUPATIONS OF ASSIGNORS.

The occupations of assignors in broad industrial classes during the last five years were as follows:—

 1934.1935.1936.1937.1938.
Agricultural and pastoral34622
Forestry....11..
Mining and quarrying......1..
Processes relating to metals, tools, jewellery, &c.31212
Makers of ships, boats, conveyances, &c...1....1
Processes relating to fibrous materials, textiles, and dress25453
Processes relating to harness, saddlery, and leatherware......1..
Processes relating to food, drink, and tobacco34963
Processes relating to wood, &c., n.e.i.31111
Processes relating to paper, stationery, printing, photography..11....
Construction or repair of buildings, roads, railways, canals913131212
Transport and communication63253
Commerce and finance5762444842
Public administration, clerical, and professional34611
Entertainment, sport, and recreation1........
Personal or domestic service632....
Dependent on public or private support..1......
Indefinite occupations33223
    Totals99106938673

No fewer than 51 of the assignors in 1938 were employer of labour, 20 were working on their own account, and 2 only were working for wages.

Particular occupations most affected in 1938 were: Builders (9); butchers (6); drapers (6); grocers (6); storekeepers (6).

Chapter 34. SECTION XXXIV.—WEALTH.

STATE ASSETS.

A STATE balance-sheet is compiled annually by the Treasury from details recorded in departmental balance-sheets; this statement being published in Parliamentary Paper B.-1 [Part IV]. The following statement of assets and liabilities as at the 31st March, 1938, has been extracted from the latest balance-sheet available:—

Assets.£
*Of the amount shown as public debt, £3,122,237 was held by investments within the Public Account. Interest in respect of this sum is shown in both assets and liabilities.
Land and buildings, including Crown, settlement, and endowment land, departmental land and buildings13,921,587
State forests, nurseries, and plantations39,902,089
Railways, including permanent-way and works, rolling-stock, and unopened lines63,003,850
Telegraphs, telephones, and wireless systems11,835,625
Electrical schemes15,807,737
Drainage and irrigation schemes4,848,083
Collieries, sawmills, quarries, &c.502,564
Armament and military stores, aviation equipment2,904,487
Oyster-beds, fish-hatcheries, equipment, &c.126,013
Wharves, bridges, harbour - works, lighthouses, &c.715,147
Plant, material, and furniture5,140,298
Libraries, books, museum exhibits, stationery, stamps, &c.185,628
Live and dead stock, farm crops, &c.506,319
Government steamers, launches, motor-cars, &c.593,421
Advances on loan or mortgage2,836,657
Dairy-produce on hand, &c.5,228,754
Debtors— 
Sundry4,803,860
Unpaid purchase-price of land and buildings and interest thereon1,324,426
Postponed rents, &c.44,199
Interest and rent, due and unpaid, and due and accrued*1,343,637
Special investments— 
Nauru phosphate rights565,040
Bank of New Zealand shares2,109,375
Reserve Bank of New Zealand1,626,287
Public Trust Office (Public Debt Redemption Fund, &c.)7,966,688
Crown interest in State Advances Corporation45,598,177
Special assets of various accounts— 
Native land schemes, &c.1,360,278
Unallocated loan charges32,800
Payments in advance475,715
Properties acquired by Crown and properties in course of realization140,862
Investments— 
Reserve Fund375,897
Sinking funds1,239,795
Miscellaneous, including investment of Treasury accounts8,202,178
National Development Account— 
Expenditure on— 
Main highways, roads, &c.35,361,329
Development of mining867,468
Education9,262,327
Immigration3,318,782
Harbour-works1,050,871
Land-development1,069,828
Other loan expenditure— 
War expenditure62,830,618
Naval defence1,389,656
Miscellaneous7,424,274
Cash— 
Public Account3,643,174
Receiver-General118,953
State Advances Corporation2,010
Broadcasting Account30,365
Commercial Broadcasting Account1,433
Housing Account179,221
Post Office or Post Office Savings-bank315,451
Deposit accounts48,699
In hand and in transit77,746
Deposit with Bank of International Settlements36,023
Public Trust Office196,671
Miscellaneous assets64,082
 £402,556,454
Liabilities.£
Capital— 
Public debt*290,201,342
Employment Promotion Fund733,635
Public Debt Redemption Fund11,216,689
Dairy Industry Account overdraft—Primary Products Marketing3,637,525
Internal Marketing56,231
Creditors— 
Sundry5,724,170
Interest on public debt accrued but not due*2,278,217
Other payments accrued5,747
Payments in advance, &c.324,525
Reserves— 
General8,329,629
Sinking fund and reserves for loan redemption871,941
Depreciation7,118,013
Fire, accident, and marine insurance, bad debts, &c.1,033,292
Amount held on deposit1,060,735
Suspense195,124
Post Office investment and war-loan certificates624,202
Miscellaneous liabilities2,038
 £333,413,055
Excess of assets over liabilities£69,143,399

For contingent liabilities in addition to the above, reference should be made to Section XXIVc.

In connection with the balance-sheet, it is to be remembered that many of the assets and liabilities of a State cannot be expressed financially in the manner in which the goodwill of a business concern is assessed, and a State balance-sheet, or even in many cases a departmental balance-sheet, on strictly commercial lines is a practical impossibility.

It is necessary to note that, in order that the public debt may be fully accounted for, nominal assets have been inserted by the Treasury for outstanding loan expenditure on war and other purposes in respect of which no material asset now exists. These are grouped under the heading of “Other loan expenditure.” Again, the National Development Account appearing in the assets statement represents the total expenditure of loan-money on the items enumerated therein, and these are not wholly represented by tangible assets. Even in some cases where items are represented by tangible assets the valuation is more or less arbitrary. For instance, the item “Main highways, roads, &c.,” represents the total expenditure on roads, and includes in many cases improvements, &c., of the same road on more than one occasion. In an occasional instance—e.g., Bank of New Zealand shares—the market-value represents an appreciation on the figure shown.

Partly for the reasons just indicated, and partly because certain State expenditure is already reflected in the value of property (public or private), it is necessary to make certain deductions from the “assets” total in order to obtain a figure to be used as a component unit of an estimate of the value of property or wealth in New Zealand. The following items have been omitted: Main highways, roads, &c.; development of mining; immigration; land-development; and war and other expenditure under the heading of “Other loan expenditure.” Amounts due to “creditors,” and the Dairy Industry Account overdraft, as shown under liabilities, have also been regarded as deductions from assets. The result is a figure of £278,000,000, or—with an arbitrary allowance for depreciation in respect of items not already allowed for in the statement—£270,000,000. This latter figure may be accepted as a rough approximation of the value of State property at the 31st March, 1938.

ASSETS OF LOCAL AUTHORITIES.

The form of return in use for the collection of statistics of local governing authorities provides for particulars of cash assets and an estimate of other assets being supplied. The figures in respect of the latter are far from complete, no assets apart from cash assets being included by some local authorities, while in other cases no value is assigned to reserves. Nevertheless the following total as at 31st March, 1938, may be taken as an approximate though somewhat conservative estimate of the position:—

 £
Cash assets11,361,080
Other assets (estimated)69,792,113
    Total£81,153,193

The distribution of assets among the various classes of local authorities will be found in Section XXVI.

It may be stated that, although much of the expenditure of counties, boroughs, town districts, and road districts has been in respect of the construction of streets, roads, and bridges, these items are not included as assets of the respective authorities.

The foregoing figures are exclusive of sinking funds, which at 31st March, 1938, amounted to £9,491,572. The inclusion of sinking funds, as in the following table, which shows the nature of the assets, brings the total assets of these classes of local authorities to £90,644,765.

 £
Cash assets11,361,080
Sinking funds9,491,572
Halls, libraries, offices, sundry premises, furniture, &c.3,983,533
Electrical-works18,934,868
Gasworks1,519,116
Tramway-works5,329,381
Railway-works146,387
Wharves, quays, slips, docks, dredges, boats, tugs, sheds, &c.9,992,638
Drainage, sewerage, and water-supply systems12,382,517
Reserves, parks, gardens, recreation-grounds, cemeteries, &c.3,869,012
Endowments3,680,153
Reclaimed land5,548,925
Workers' dwellings, roadmen's cottages, &c.618,515
Sundry plant, tools, stocks, and materials2,720,181
Other and unspecified1,066,887
Total£90,644,765

Hospital Boards, which are not included in the foregoing figures, had assets (excluding outstanding fees and subsidies) of approximately £5,250,000 at 31st March, 1938, bringing the total for all local authorities to £96,000,000.

PUBLIC WEALTH.

In arriving at the aggregate public wealth of the Dominion, as distinct from private wealth, it is necessary to take into account the fact that of the total indebtedness of local authorities at the 31st March, 1938, £6,000,000 was owing to the General Government. The approximate public wealth of the Dominion based on the foregoing statements of assets would thus be £270,000,000, plus £96,000,000, minus £6,000,000, making a net total of £360,000,000.

PRIVATE WEALTH.

Estimates of the private wealth of the Dominion are arrived at on the assumption that the wealth per head of the living is approximately equal to the average amount left by persons dying. The fact that the younger and more numerous members of the population do not possess as much accumulated wealth as the older members, taken in conjunction with the fact that the death-rate varies with age, renders it necessary for this purpose to divide the population into age-groups. The average wealth of persons dying within any one age-group being known, the average wealth of living persons belonging to that age-group is assumed to be identical, and an estimate of the total private wealth of the Dominion is arrived at by weighting the average wealth of persons in each quinquennial age-group by the number of persons in that group.

The average wealth of deceased persons is obtained by a consideration of the estates certified for stamp duty. The number of estates dealt with in any period, however, is usually equal to about one-third only of the total deaths registered during that period; and as most persons leave some estate, however small, it is necessary to make some allowance for estates which have not passed through the Stamp Duties Office. It should be noted in this connection that estates under £1,000 escape estate duty, and if under £500, succession duty, though many estates of a lower value than the figures indicated are passed for probate or letters of administration. An arbitrary allowance is made for unrecorded estates of persons aged fifteen years or over. No allowance at all is made for estates of persons under fifteen.

Based on the estate and death figures for the triennium 1936-38, the aggregate private wealth estimate for the Dominion at the end of 1938 is £684,000,000, of which £464,000,000 represents the wealth of men and £220,000,000 that of women. Excluding Maoris, this total is equal to £447 per head of population, and £670 per head of population if only those aged twenty and over are taken into account

It is obvious that estimates of private wealth based on the probate system are approximate only, owing to the various factors involved. For example, part of the wealth of deceased estates consists of insurance policies. In the probate returns the maturity value of the policy is taken, whereas among the living the average surrender value of policies in force is much below the maturity value. Against this, however, is the fact that pensions and annuities enjoyed by the living do not enter into deceased estates, while there is also a pronounced tendency towards conservatism in the valuation of personal property for death duty purposes. Further, a not inconsiderable amount of property is disposed of before death by way of gift and does not appear in the probate returns.

It should be explained that the computation of private wealth relates to the population exclusive of Maoris. The inclusion of Maoris would not affect the per caput, rate to any extent, but would involve an addition to the total. An addition for Maoris of 4 per cent. to the aggregate figure previously given for 1938 would bring the estimated private wealth of the Dominion to £711,000,000.

ESTATES PASSED FOR DEATH DUTY.

A table is now given showing the number of estates finally passed during 1937 and 1938, classified according to amount. Estates of Maoris are here included.

Amount.Number of Estates.Aggregate Net Value of Estates.
1937.1938.1937.1938.
££ ££
Under 5002,3222,518481,922510,160
500 and under 1,0001,0741,239775,835898,743
1,000 and under 2,0009221,0511,332,6561,509,367
2,000 and under 3,0004195261,026,4901,291,605
3,000 and under 4,000244296850,9581,033,760
4,000 and under 5,000169191749,862854,215
5,000 and under 7,5002302811,409,5361,701,409
7,500 and under 10,0001291481,115,1711,283,202
10,000 and under 15,0001051281,275,8541,565,515
15,000 and under 20,0005569963,7061,185,439
20,000 and over1081065,444,8265,125,591
    Totals5,7776,55315,426,81616,959,006

The table below shows for the period 1934 to 1938 the total number of estates, classified according to age of deceased and amount of estate.

Age.Under £500.£500 to £999.£1,000 to £1,999.£2,000 to £2,999.£3,000 to £3,999.£4,000 to £4,999.£5,000 to £7,499.£7,500 to £9,999.£10,000 to £14,999.£15,000 to £19,999.£20,000 and over.Totals.
Under 5613................10
5 and under 10521................8
10 and under 159....................9
15 and under 2056104................70
20 and under 25157341481............214
25 and under 3018967328313..312309
30 and under 351978244154441111354
35 and under 40265118772913796224532
40 and under 453201481484124131113431726
45 and under 50516247215794224252013761,194
50 and under 55691405301143883543282011111,776
55 and under 60868502430192957093493910392,387
60 and under 6594559355126514397128585719592,915
65 and under 701,135718623312178135176827837693,543
70 and under 751,15474563633719713418510210346943,733
75 and under 801,8868661631518910620415385451133,603
80 and under 85861559497268190103172838445822,944
85 and under 90451298254150895582494533501,556
90 and under 95165831014926212417191027542
95 and over482417156684844144
Unspecified3381671105131233716211222828
  Totals9,4645,4894,6742,2771,3198341,20468158228958427,397
  Per cent.34.520.017.18.34.83.14.42.52.11.12.1100.0

AN ESTIMATE OF NATIONAL WEALTH.

The public wealth of the Dominion has been estimated (supra) at approximately £300,000,000, and the private wealth, including that of Maoris, at approximately £710,000,000. In the probate figures used as the basis of computation of private wealth, deductions are made on account of debts, mortgages, and other charges against property. As, however, these in general will rank as assets when estates to which the charges are owing are in their turn passed for probate, the general effect is negligible, except in so far as such items as State advances and debts owing overseas are concerned. The State advances outstanding are included in the public-wealth figure.

In the case of the public wealth the figure given practically represents gross assets, no deduction having, of course, been made on account of indebtedness of the General Government and of local governing authorities. Were the whole of this indebtedness owing outside the Dominion, no deduction on this account would be necessary for the purpose of the present computation, which is merely to ascertain an approximation of the wealth of the Dominion, without taking account of the fact that there are external charges against that wealth. In arriving at the sum of public and private wealth, however, it is necessary to make allowance for the internal indebtedness of the General Government and of local governing authorities, this being included in the private-wealth estimate.

Of the gross indebtedness of the General Government at the 31st March, 1938, £132,000,000 was domiciled in New Zealand. Of the gross debt of local governing authorities (other than Hospital Boards) at the same date, £45,000,000 was domiciled in the Dominion, exclusive of the £6,000,000 borrowed from the General Government, allowance for which has already been made in the estimation of the approximate public wealth. The Hospital Boards' debt of £1,856,000 (less £88,000 accrued sinking funds) may be assumed to be mainly domiciled in New Zealand. The debt of the General Government and all local authorities domiciled in New Zealand thus aggregates £179,000,000, which requires to be deducted from the aggregate of public and private wealth in order to arrive at an estimate of the national wealth. The figures, in round numbers, are:—

 £
Approximate public wealth360,000,000
Estimated private wealth710,000,000
Total1,070,000,000
Less public and local-authority debt domiciled in Dominion180,000,000
Estimated national wealth, 1938£890,000,000

It appears scarcely necessary to recapitulate reasons why the estimate given can be regarded at best as a rough approximation only. No practicable system has yet been devised that will permit of a reliably close estimation of national wealth being arrived at, and the difficulties in this respect are enormously increased during a period of changing values.

VALUE OF LAND HOLDINGS.

The bulk of the wealth of the Dominion is represented by land and improvements thereon, particulars of the valuation of which are given in Section XXVII of this book. Further information concerning the value of land, with particular reference to its utilization and its relative distribution among the population, is obtainable from the annual returns of land which are furnished to the Commissioner of Taxes for the purpose of land-tax assessment. Statistics were compiled from these returns for the five years 1924-25, 1925-26, 1926-27, 1928-29, and 1929-30, but the tabulation was then discontinued. This compilation has been resumed and a tabulation for the tax-year 1939-40 is now (November, 1939) in progress. As the intervening period has been one of rapidly changing values the results should be of interest. For a detailed discussion of the statistics now available reference should be made to the 1932 Year-Book; it is possible to repeat here only three concise tables.

The first summarizes the principal heads of information from the 1929-30 tabulation. In connection with the division into country, town, and mixed lands, it should be noted that the last-mentioned includes only those cases where less than 75 per cent. (on an unimproved-value basis) is urban or rural respectively. In cases where 75 per cent. or over is urban or rural, as the case may be, the whole has been so classed.

Country or Farming Lands.Town Lands or Business Sites.Partly Country and partly Town Lands.Total.
Number of returns47,93227,9271,11876,977
Number of taxpayers30,44820,10883551,391
Area Acres26,058,681342,942466,02126,867,644
Unimproved value of land £166,895,25567,192,7684,968,450239,056,473
Total mortgages £116,841,60338,117,5452,457,145157,416,293
Exemptions—    
  Ordinary £6,303,9696,949,499178,68413,432,152
  Mortgage £62,770,79215,918,7671,057,68179,747,240
  Hardship £151,417111,6386,237269,292
    Total exemptions £69,226,17822,979,9041,242,60293,448,684
Taxable balance £97,669,07744,212,8643,725,848145,607,789
Tax assessed £700,804440,82137,3401,178,965

The next table shows the distribution of holdings according to unimproved value for 1928-29 and 1929-30. The insignificant totals for holdings under £500 are due to the fact that, with few exceptions, such are entirely exempt from land-tax. It should be understood that the classification by amount is on the basis of the unimproved value of the land, and not, in the case of taxpayers, on the basis of taxable balance.

Amount.Number of Returns.Number of Taxpayers.Total Unimproved Value.
1928-29.1929-30.1928-29.1929-30.1928-29.1929-30.
££   ££
Under 5007801,17232378175,306294,772
500-99923,73226,10615,06717,37917,016,70818,869,506
1,000-2,49925,66927,20415,54817,04239,756,31942,324,231
2,500-4,99911,94511,8217,4817,41441,727,35342,548,770
5,000-7,4996,3764,4474,3293,03944,045,31027,059,748
7,500-9,999..2,144..2,056..18,455,089
10,000-14,9991,8271,9041,8181,90422,060,93423,071,659
15,000-19,99978881378781313,552,30413,946,956
20,000-29,99966171465971416,007,53317,244,468
30,000-39,9992632772632778,992,1049,482,113
40,000-49,9991111391111394,890,1006,109,294
50,000-99,99915619515619510,250,62312,936,622
100,000 and over254125413,799,6066,713,245
Totals72,33376,97746,27651,391222,274,200239,056,473

Area figures are of little value in the case of urban and mixed lands, on account of eighth- and quarter-acre sections being treated in the statistics as having no area at all. The following summary (1929-30), which gives valuable information as to area and value in conjunction, accordingly relates only to lands classified as rural:—

Area, in Acres.Number of Returns.Number of Taxpayers.Total Area.Total.Unimproved Value
Per Return.Per Acre.
   Acres.££s.d.£s.d.
Under 57784861,4211,029,3591,32318724710
5 and under 101,0426897,1391,008,1069679514143
10 and under 201,8301,22525,4331,955,6271,068130761710
20 and under 504,2752,818144,6795,455,9481,27641137143
50 and under 1006,9744,013503,97811,487,8661,647410221511
100 and under 2009,8875,7771,393,75022,166,1412,24119015181
200 and under 3206,6114,0711,661,89318,884,5992,85610101173
320 and under 6407,8045,1283,551,88029,762,7813,813159877
640 and under 1,0003,2952,1772,626,10616,996,4775,15853695
1,000 and under 2,0003,1002,1734,274,39922,943,9807,40158574
2,000 and under 5,0001,5601,2054,663,06619,374,24512,41979431
5,000 and under 10,0003683332,502,7987,961,89621,635119337
10,000 and under 30,0001871642,924,1515,869,76431,38923202
30,000 and under 50,0002119783,158573,54327,3111150148
50,000 and under 100,00088604,582124,31315,53926041
100,000 and over33390,24861,29520,431134032
Not stated189159..1,239,3156,55745......
Totals47,93230,44826,058,681166,895,2553,481184681

Chapter 35. SECTION XXXV.—INCOMES AND INCOME-TAX.

INTRODUCTORY.

No complete statistics of annual income are available for New Zealand, but valuable data exist in regard to incomes of those furnishing returns to the Commissioner of Taxes for the purpose of income-tax assessment. In 1923 a system of annual statistics from the particulars on the income-tax returns was inaugurated, and was continued up to and including the tax-year 1931-32, but was then discontinued for reasons of economy. The compilation was later resumed, commencing with the tax-year 1934-35.

Information concerning the system of income-tax in New Zealand is given earlier under the heading of “Taxation “ (vide pp. 585-589). To permit of a proper understanding of the statistics given in the present section, it is advisable to peruse the observations under the reference given. The statistical information relating to income-tax given in this section more properly belongs to the Taxation Section referred to, but it is considered preferable to treat the figures relating to the incidence of tax with those showing the distribution of the incomes on which the tax is assessed.

It should be explained that the incomes returned in any tax-year are those for the preceding income-year; thus, the statistics for the tax-year 1937-38 relate to incomes received during the year 1936-37. which, in general, may be taken as the twelve months ended 31st March, 1937.

The comparability of the statistics of one year with another has been affected by changes in the law and by other factors. In particular, the personal exemption (formerly £300) was reduced to £260 in 1931 and to £210 in 1933*; up to 1932-33 returns of income were in general not required from “individuals” with incomes under £250, whereas only those who both have incomes under £200 and are not assessable for tax are now exempted from furnishing returns. Many persons not required to furnish returns actually do so, and in 1931-32 and previous years such persons and their incomes were included in the statistics; for years subsequent to the resumption of the compilation, however, the tabulation has been limited to those (1) who have assessable incomes of £200 or over, or (2) who have assessable incomes under £200 but are assessable for tax. The net effect of these changes, and of other changes in the law, should have been (other things being equal) to increase substantially the aggregate number and amounts of incomes covered by the statistics for the 1934-35 and subsequent tax-years as compared with earlier years. The figures for the tax-year 1934-35 (income-year 1933-34), however, not only failed to show an increase, but, particularly in aggregate amount of income, showed a decided fall, and thus indicated to some extent the severity of the depression.

The three succeeding years show a substantial and progressive improvement. The figures for 1937-38 reveal the following increases over 1936-37 and over 1935-36, the latter increase being shown in parentheses: Number of returns, 39,901 (56,005); number of taxpayers, 30,686 (45,470); assessable income, £22,795,511 (£32,377,588); and tax assessed, £2,675,925 (£4,865,589).

With the exception of a preliminary tabulation for companies (Class II) according to size of assessable income, which will be found at the end of this section, the compilation for the tax-year 1938-39 was not completed in time for inclusion in this issue of the Year-Book.

* Commencing with the tax-year 1939-40, the personal exemption has been reduced to £200.

SUMMARY OF INCOMES, EXEMPTIONS, AND TAX.

The following table briefly summarizes the main items of information for each of the last five tax-years available:—

Item.1931-32.1934-35.1935-36.1936-37.1937-38.
Number of returns130,704125,662139,573155,677195,578
Number of taxpayers80,24563,95072,10486,888117,574
 £££££
Earned income37,279,80235,097,39838,593,00446,053,07263,663,202
Assessable income60,168,39253,194,17059,495,60169,077,67891,873,189
Total returnable income....62,673,79172,371,19595,940,109
Exemptions—     
Personal23,322,33720,235,03622,372,12129,822,28937,758,345
Other5,362,9047,605,7378,451,4768,452,22311,176,493
Taxable balance31,483,15125,353,39728,672,00430,803,16642,938,351
Tax assessed4,366,7573,648,5994,264,4536,454,1179,130,042

As stated previously, the figures for 1931-32 are not properly comparable with those for the later years.

INCOMES BY CLASSES.

Prior to the tax-year 1937-38, taxpayers were divided into four classes—viz., I, Individuals; II, companies; III, agents for debenture-holders; and IV, nonresident traders. Since the passing of the Land and Income Tax Amendment Act, 1927, the importance of the third class has gradually diminished, and it has been decided to discontinue it as a separate class. The effect of the amendment in question was to release companies from the duty of acting as agents for their debenture-holders resident in New Zealand, provided that certified lists containing certain specified information sufficient to identify the holders, together with particulars of interest payable, &c., are furnished to the Commissioner of Taxes.

Class I (individuals) includes partnerships and firms other than companies, and also includes absentee individuals other than non-resident traders.

A classification of returns and taxpayers on the basis of class is given in the following table for each of the four tax-years since the resumption of the statistics.

Class.Returns.Taxpayers.
1934-35.1935-36.1936-37.1937-38.1934-35.1935-36.1936-37.1937-38.
* Not shown separately.
I. Individuals.120,684133,952149,319188,04958,97266,48380,530110,045
II. Companies.3,8114,3325,0735,9973,8114,3325,0735,997
III. Agents for debenture-holders438523*438523*
IV. Non-resident traders1,1241,2041,2621,5321,1241,2041,2621,532
    Totals125,662139,573155,67715,57863,95072,10486,888117,574

Compared with the previous year, Class I showed in 1937-38 an increase of 38,730 (25.9 per cent.) in the number of returns and 29,515 (37 per cent.) in the number of taxpayers; while the corresponding increase for Class II (number of returns and taxpayers being identical in the case of companies) was 924 (18.2 per cent.). It will be noted that the number of returns for Class I has increased by a little over 50 per cent. since 1934-35, while the number of taxpayers increased by nearly 87 per cent. during the same period.

In Class I the increase in assessable income for the tax-year 1937-38 compared with 1936-37 amounted to £18,257,327, or 33.3 per cent.; while the increase in the amount of tax assessed was £1,378,583, or 59.4 per cent. In Class II assessable income increased by £4,597,123 (33.1 per cent.) and the amount of tax assessed by £1,305,653 (32.1 per cent.).

The next table shows the amount of assessable income and amount of tax assessed according to class for 1937-38 and the two preceding tax-years:—

Class.Assessable Income.Tax assessed.
1935-36.1936-37.1937-38.1935-36.1936-37.1937-38.
* Not shown separately.
 ££££££
I. Individuals47,207,96554,757,50573,014,8321,445,3162,321,0963,699,679
II. Companies11,909,61113,901,91918,499,0422,782,6584,071,5095,377,162
III. Agents for debenture-holders162,853161,714*13,64526,390*
IV. Non-resident traders215,172256,540359,31522,83435,12253,201
Totals59,495,60169,077,67891,873,1894,264,4536,451,1179,130,042

SOURCES OF INCOME.

In the compilation of the statistics a distinction is made as to the source from which assessable income is derived, incomes being divided into ten groups according to source as follows:—

Group No.Source.
0Salary or wages.
1Following professional occupation on own account.
2Commerce, trade, or business.
3Industry or manufacture.
4Farming.
5Provision of transport or communication.
6Building or construction.
7Mining or extraction.
8Investments and the like.
9Provision of or engaging in entertainment.

Actual figures as to the amount of income derived from the various sources are not available on account of the fact that in a considerable proportion of cases income is obtained from more than one source. The rule followed in such cases in compiling the statistics is to include the whole income under the principal source from which it is derived. As an indication of the extent to which the figures are affected, attention is drawn to the inclusion of £1,008,392 unearned assessable income for source 0 (salary or wages) and of £393,552 earned income for source 8 (investments and the like).

Whether in Class I alone or in the total of all classes, source 0 is the most important as regards number of incomes, number of taxpayers, and amount of earned and of assessable income. It may be added that this source also leads in the matter of exemptions—so much so, in fact, that its total of £46,127,740 assessable income in 1937-38 shrank to a comparatively low taxable balance of £8,258,108, which was assessed for only £989,565 of tax.

The following table shows the number of returns and of taxpayers classified according to source for each of the last four tax-years:—

Source.1934-35.1935-36.1936-37.1937-38.
Returns.Taxpayers.Returns.Taxpayers.Returns.Taxpayers.Returns.Taxpayers.
088,72632,84198,64637,500109,78347,328140,44968,655
12,5262,1192,7532,3362,9062,5153,1332,827
28,4916,43610,2527,90412,0559,46115,64012,675
39108499178671,0066521,1981,144
44,4243,5684,6733,5167,2215,87210,5429,361
55763916944898325891,221891
6338220500325680444915661
7166137153124162128182156
819,36017,25120,87018,93620,88919,46722,05020,962
9145138115107143132248242
  Totals125,66263,950139,57372,104155,67786,888195,578117,574

Among companies, those which derived their income from commerce, trade, or business (source 2) represented in 1937-38 57.9 per cent. of the total taxpayers, with 66.4 per cent. of the aggregate assessable income and 65.7 per cent. of the tax assessed for Class II. This source ranked only fourth in point of taxable balance and tax assessed in Class I, being exceeded by sources 4 (farming) and 8 (investments and the like) in addition to source 0. Industry or manufacture (source 3), second among companies, occupies a very minor position in Class I.

A classification of assessable income on the foregoing basis is next given, the average assessable income being also shown for each source:—

Source.Aggregate.Average.
1934-35.1935-36.1936-37.1937-38.1934-35.1935-36.1936-37.1937-38.
 ££££££££
028,135,59631,176,66935,503,22646,127,740319316323328
11,690,0511,962,6482,142,0902,516,989669713737803
28,448,83910,736,16413,367,76817,954,5609951,0471,1091,148
32,464,7513,153,5563,115,9914,280,7592,7093,4392,8173,573
43,420,0902,967,6165,442,37010,440,525773635754990
5690,924713,041845,5121,028,3081,2001,0271,016842
6129,490218,283313,736474,681383437461519
7320,092319,861214,286395,1631,9282,0911,3232,171
87,780,9698,155,3247,993,7108,473,325402391383384
9113,36892,439138,989181,139782804972730
  Totals53,194,17059,495,60169,077,67891,873,189423426444470

Compared with the previous year, the source showing the greatest increase in assessable income during the tax-year 1937-38 was salary or wages (source 0) the difference amounting to £10,624,514 (29.9 per cent.), while the greatest proportionate gain was shown by farming, with an increase of 91.8 per cent. The effect of the variation in wool prices is clearly reflected in the figures for this source. In the 1934-35 wool season there was a substantial drop in the price of this product, with a consequent reduction of £452,474 in the amount of assessable income for the tax-year 1935-36. In the following season greatly enhanced prices were obtained, with the result that the assessable income for the tax-year 1936-37 showed an increase of £2,474,754 over that for 1935-36. The 1936-37 wool season saw a still greater advance in wool prices, and the assessable income for the tax-year 1937-38 increased by £4,998,155. The proportionate increases shown by the remaining sources in descending order of magnitude are as follows: Mining or extraction, 84.4 per cent.; building or construction, 51.3 per cent.; industry or manufacture, 37.4 per cent.; commerce, trade, or business, 34.3 per cent.; provision of entertainment, 30.3 per cent.; provision of transport or communication, 21.6 per cent.; professional, 17.5 per cent.; and investments, &c., 6 per cent.

SIZE OF ASSESSABLE INCOMES.

The next principle of classification followed in the compilation of these statistics is that according to size of assessable income. Full details of incomes of the various sizes in conjunction with source of income and class of taxpayer are contained in the Annual Statistical Report on Prices, Wage-rates, &c. These details cannot be repeated here, but the next table, showing the number of returns according to size of income, gives an indication of the relative distribution of incomes over £200 throughout the community. It will be remembered that returns are required from all persons in receipt of £200 or upwards, while in the case of companies all incomes are returnable.

Of the 102,218 individuals who had incomes of less than £300 for the tax-year 1937-38, only 40,841 had any taxable balance left after the statutory exemptions had been applied, their aggregate taxable balance being £1,502,508, or only 6.2 per cent. of the aggregate assessable income of individuals under the £300 mark. Individuals whoso incomes ranged between £300 and £499 totalled 58,421. Of this number, 42,954 remained in the “taxpayer” class after the application of the exemptions, the amount of taxable balance being £4,201,896 out of an assessable income of £21,411,930. At the other end of the scale there were 216 individuals with incomes in excess of £5,000, their aggregate assessable income amounting to £1,645,028.

Of the 5,997 companies covered, 2,467 (41.1 per cent.) had assessable incomes of under £300. The combined incomes of these 2,467 companies totalled only £264,021, or less than 1½ per cent. of the assessable income of all companies. A further 1,600 companies returned incomes ranging between £300 and £1,000, their assessable income amounting to £914,849. Thus there were 4,067 companies (67.8 per cent.) with incomes of less than £1,000. Their total assessable income, however, was only £1,178,870, or 6.4 per cent. of the aggregate company income. At the other end of the table are found 265 companies with incomes of £10,000 or over; these represented only 4.3 per cent. of all companies, but had 68.9 per cent. (£12,726,877) of the aggregate assessable income for Class II.

Size of Assessable Income.1934-35.1935-36.1936-37.1937-38.
Class I.Total.Class I.Total.Class I.Total.Class I.Total.
£    £        
Under 30071,41774,33480,26283,39586,06089,418102,218105,953
300- 39923,68724,01626,07726,42630,71331,07142,81143,301
400- 4999,84210,04710,70810,95212,13012,45715,61015,929
500- 5995,1765,3485,5305,7656,4316,6658,0598,329
600- 6992,9113,0383,1813,3413,6113,8024,7364,944
700- 7991,7591,8381,9902,1182,4622,6073,1373,346
800- 8991,1831,2681,3631,4661,7021,8312,2272,386
900- 9999019859491,0261,1591,2791,5491,697
1,000- 1,9992,9643,3823,1183,6233,9574,5875,7776,609
2,000- 4,9997821,0957351,1211,0111,5081,7092,387
5,000- 9,999551543914973237191406
10,000-19,999764851010019140
20,000-49,999..52..57..64687
50,000-99,999..27..34..33..39
100,000 and over..14..15..18..25
Totals120,684125,662133,952139,573149,319155,677188,049195,578

Information as to aggregate assessable income within the various size categories is contained in the next table. Figures in respect of individuals (Class I) for the tax-year 1937-38 are shown separately.

Size of Assessable Income.   Aggregate Assessable Income.
1934-35.1935-36.1936-37.1937-38.
Class I.Total.
£    ££££££
Under 30016,718,51718,830,04920,421,64924,283,25924,634,852
300- 3998,173,8068,995,58510,546,51614,530,40014,697,407
400- 4994,444,1734,841,1735,513,2926,881,5307,024,519
500- 5992,899,8283,125,1513,613,3414,373,8894,519,358
600- 6991,958,9242,150,2602,448,7973,046,5633,180,989
700- 7991,366,5111,577,0581,942,5312,337,7792,494,170
800- 8991,069,6591,239,2911,546,1251,885,3372,019,657
900- 999931,647971,1031,210,3571,467,0661,607,400
1,000- 1,9994,524,3174,891,0406,179,3027,744,5118,902,582
2,000- 4,9993,170,5803,235,7074,353,1834,819,4706,950,622
5,000- 9,9991,057,8801,000,8841,593,2041,244,5852,679,519
10,000-19,999930,4501,167,5541,372,718252,6361,944,085
20,000-49,9991,597,9991,668,6612,055,737147,8072,618,834
50,000-99,9991,806,3712,327,9142,318,817..2,756,858
100,000 and over2,543,5083,474,1713,962,109..5,842,337
    Totals53,194,17059,495,60169,077,67873,014,83291,873,189

In view of the outstanding increase in the figures of Class I for the tax-year 1937-38 when compared with 1936-37, the following table is interesting in that it gives some idea of the spread of the increase over the various income categories:—

Size of Assessable Income.Number of Returns.Assessable Income.Tax assessed.
Absolute Increase.Percentage Increase.Absolute Increase.Percentage Increase.Absolute Increase.Percentage Increase.
£    £  £ £ 
Under 30016,15818.84,165,02220.739,02734.7
300- 49915,57836.45,619,61135.6105,20233.8
500- 9994,34328.32,931,20428.8188,00232.2
1,000-4,9992,51850.74,468,55255.2650,35658.5
5,000-9,999118161.6789,866173.7280,500184.6
10,000 and over15150.0283,072241.2115,496235.0
    Totals38,73025.918,257,32733.31,378,58359.4

Although incomes below £1,000 were responsible for £12,715,837, or 69.6 per cent., of the increase in assessable income, they accounted for only £332,231, or 24.1 per cent., of the increase in the amount of tax assessed.

EARNED INCOME.

Of the gross assessable income of £91,873,189 in 1937-38, £63,663,202 (69.3 per cent.) ranked as earned income, and as such was exempted from the special emergency surtax of 33 1/3 per cent. on standard rates which is payable on unearned income of individuals but not of companies. Earned income is, of course, practically confined to Class I (where it represented 87.2 per cent. of all assessable income), although a small proportion of the income of non-resident traders comes within the definition of earned income. The following table shows the distribution of earned income of individuals (Class I) over the various sources, both absolutely and in proportion to assessable income for 1937-38 and the three preceding tax-years.

Source.Earned Income.Proportion of Assessable Income.
1934-35.1935-36.1936-37.1937-38.1934-35.1935-36.1936-37.1937-38.
 ££££Per Cent.Per Cent.Per Cent.Per Cent.
027,260,65830,307,35034,564,83045,119,34896.8997.2197.3697.81
11,577,3441,842,2062,024,0922,383,90493.3393.8694.4994.71
22,329,4322,884,9153,509,7765,080,36693.0293.5594.1195.42
395,393100,55190,342154,44092.7294.5795.1596.12
43,049,6372,619,8294,901,4439,651,20791.2590.2192.3094.48
5156,985199,172248,324432,72396.4597.3397.5397.77
6106,608170,518251,005364,98989.7991.6792.6195.23
755,96440,41544,48053,51590.9696.4898.0398.80
8448,742413,851404,410393,5526.235.505.475.06
912,56410,70914,37014,01793.1494.6493.9495.40
All groups35,093,32738,589,51646,053,07263,648,06180.9881.7484.1087.17

While earned income in Class I has increased by 81.4 per cent. during the period covered by the above table, “unearned” assessable income has increased by 13.7 per cent. only. Consequently the proportion of “earned” to total assessable income has risen substantially. The next table shows the amount of earned income included in the total assessable income for the various categories according to the size of assessable income.

Size of Assessable Income.Earned Income.Proportion of Assessable Income.
1934-35.1935-36.1936-37.1937-38.1934-35.1935-36.1936-37.1937-38.
£££££Per Cent.Per Cent.Per Cent.Per Cent.
Under 30014,841,76016,712,31418,344,55222,473,38789.9590.0891.1892.55
300- 3996,841,7737,615,1879,173,35113,238,98584.8785.7988.0091.11
400- 4993,442,2523,797,0064,443,5135,931,27479.0880.2482.7886.19
500- 5992,094,9232,289,8472,771,0993,636,92874.6676.3979.4883.15
600- 6991,359,7871,498,4131,790,2682,471,66272.4873.2177.0081.13
700- 799911,3371,078,8321,405,3381,888,78069.7372.8076.6180.79
800- 899686,607792,4461,070,0771,501,17368.8468.7874.4479.62
900- 999585,347630,940817,1951,154,72368.6870.2774.5578.71
1,000-1,9992,595,2362,809,1473,839,5896,214,14865.7767.1772.6780.24
2,000-4,9991,415,1661,220,1191,954,5633,816,69164.2960.0769.5279.19
5,000-9,999221,048145,265353,734966,73261.0256.6677.7977.68
10,000 and over98,091..89,793353,57896.63..76.5052.51
Totals, Class I35,093,32738,589,51646,053,07263,648,06180.9881.7484.1087.17

Generally speaking, the proportion of earned income falls as the size of the assessable income increases, although exceptions to the rule will be observed.

TOTAL RETURNABLE INCOME.

Information in regard to total returnable income was tabulated for the first time for the tax-year 1935-36. While companies (Class II) have a certain amount of tax-free investments, &c., the income from which comprises the difference between assessable income and total returnable income, it is in Class I that the greater part of the non-assessable income is found. In the latter class non-assessable income for the tax-year 1937-38 amounted to £3,487,074, compared with £574,498 in Class II. The following table gives particulars for Class I (individuals) of the number of returns and total returnable income according to size of income:—

INCOMES BY SIZE OF TOTAL RETURNABLE INCOME, CLASS I (INDIVIDUALS).

Size of Total Returnable Income.Number of Returns.Total Returnable Income.
1935-36.1936-37.1937-38.1935-36.1936-37.1937-38.
£    £   £££
Under 30078,50984,675100,71518,212,81719,852,57223,993,765
300- 39925,98930,48342,4628,850,23010,349,34114,419,614
400- 49910,83312,12515,5974,792,6795,367,3896,876,848
500- 5995,5966,5358,1543,035,9293,546,2334,428,109
600- 6993,3703,7114,8842,168,0912,389,3283,145,951
700- 7992,1572,6533,3251,608,1691,976,7162,480,622
800- 8991,4801,8412,3491,250,2221,549,3761,987,344
900- 9991,0941,2631,6701,035,0031,194,0251,581,599
1,000-1,9993,6724,4906,4004,933,2096,030,9028,641,658
2,000-2,9997408981,4061,764,9862,161,5803,389,348
3,000-3,999234297502802,1281,015,1391,727,687
4,000-4,999112145230493,871641,6031,017,537
5,000-9,999143168300930,4581,093,6891,997,945
10,000 and over233555299,942508,489813,879
    Totals133,952149,319188,04950,177,73457,676,38276,501,906

From a comparison of the foregoing table with that based on the size of “assessable” income, it will be observed that the larger income categories are most affected by the inclusion of the non-assessable income. In the tax-year 1937-38 there were 191 cases where the amount of “assessable” income ranged between £5,000 and £9,999, the aggregate assessable income being £1,244,585. On the basis of total returnable income there were 300 cases aggregating £1,997,945 within the limits referred to. Similarly, where the “ assessable” income was £10,000 or over the number of cases was 25 with assessable income amounting to £400,443, while there were 55 cases where the total returnable income was £10,000 or over, the aggregate income being £813,879.

EXEMPTIONS.

Information regarding the statutory exemptions will be found in Section XXIVb, dealing with taxation. Attention should perhaps be drawn to the fact that, for the tax-years 1936-37 and 1937-38, the personal exemption of £210 applied to all individuals irrespective of size of income. Up to and including 1935-36 it was on a graduated scale, the maximum of £210 being reduced as assessable income increased, and the personal exemption disappearing altogether at £725. Commencing with the tax-year 1939—40, the amount of the personal exemption has been reduced to £200.

The exemptions are applied in the following order: Personal; children, wife, &c.; life-assurance premiums, &c.; and interest-tax payments. For instance, a married man with two dependent children and an income of £250 was entitled to a personal exemption of £210, an exemption of £150 for his wife and two children, plus, say, £12 for superannuation contributions. The application of the personal exemption of £210 and of £40 for wife and children would reduce his taxable balance to “nil,” so that only £40 over and above the personal exemption of £210 would be included in the “total” column.

Payments in respect of employment-promotion taxation were allowed as an exemption up to and including the tax-year 1935-36, but this exemption was then discontinued.

EXEMPTIONS, TAX-YEAR 1937-38—AVERAGES .

Size of Assessable Income.Exemption per £100 of Assessable Income.Exemption per £100 of Total Exemption.
Personal.Life Assurance.Other.Total.Personal.Life Assurance.Other.
£    ££££££££
Under 30082.01.210.693.887.51.211.3
300- 39961.42.920.785.072.33.424.3
400- 49947.14.219.470.766.65.927.5
500- 59938.24.415.458.065.97.626.5
600- 69932.34.312.949.565.38.726.0
700- 79927.74.111.042.864.79.725.6
800- 89924.44.19.437.964.410.724.9
900- 99922.03.98.234.166.511.324.2
1,000-1,99915.43.96.025.360.915.523.6
2,000-2,9998.43.53.014.956.323.220.5
3,000-3,9995.83.52.111.451.230.718.1
4,000-4,9994.63.21.59.349.234.915.9
5,000-5,9993.72.71.17.549.636.314.1
6,000-6,9993.02.00.75.752.436.111.5
7,000-7,9992.72.20.65.548.140.211.7
8,000-8,9992.21.30.43.956.533.79.8
9,000-9,9992.21.71.35.242.432.125.5
10,000 and over1.21.80.23.237.855.86.4
    Totals51.72.812.567.077.24.218.6

Prior to the tax-year 1935-36, particulars of the several exemptions were given in detail, but owing to the introduction of new matter tabulation was restricted in that year to two headings—viz., “Personal” and “Total.” For the two succeeding tabulations, however, “Life Assurance Premiums, &c.,” has been added. It should be noted that contributions to superannuation funds, the National Provident Fund, and assurance funds of friendly societies are included under this heading.

With negligible exceptions the various exemptions apply only to incomes in, Class I (individuals), and it is only this class which need be considered in a study of the exemptions and their relative incidence according to size of income.

The total exemptions in Class I for the tax-year 1937-38 amounted to £48,933,487, of which “personal” accounted for £37,757,162 and life-assurance premiums, &c., for £2,050,179. Corresponding figures for the 1936-37 tax-year were £38,273,779, £29,821,796, and £1,596,026 respectively.

TAXABLE BALANCE.

After all exemptions have been deducted from the assessable income the balance of income (if any) is taxed in accordance with the schedule in force at the time.

Exemptions being practically limited to Class I (individuals), this is the only class in which the assessable income and taxable balance are not generally identical. The next table gives for Class I particulars of taxable balance in relation to assessable income for the various income categories in 1937-38 and the three preceding tax-years.

Size of Assessable Income.Aggregate Taxable Balance.Proportion of Assessable Income.
1934-35.1935-36.1936-37.1937-38.1934-35.1935-36.1936-37.1937-38.
£££££Per Cent.Per Cent.Per Cent.Per Cent.
Under 300840,363992,3211,112,2511,502,5085566
300- 3991,503,6491,701,7301,548,2572,184,15819191515
400- 4991,723,8961,879,0571,597,2002,017,73840403029
500- 5991,585,1031,708,4171,462,6421,837,03256574242
600- 6991,322,8351,460,8481,178,7441,537,80471715150
700- 7991,053,2941,190,0771,046,5111,336,02881805757
800- 899847,512980,109888,7321,171,24585856262
900- 999722,695763,322714,851966,68085856566
1,000-1,9993,452,6453,640,4873,953,5815,785,95187877575
2,000-2,9991,189,3591,111,8491,470,7572,389,35491898585
3,000-3,999479,196436,010594,1261,176,84391918989
4,000-4,999332,105283,068380,723620,02691919291
5,000-9,999342,861237,073420,9761,168,31495929394
10,000 and over97,533..114,375387,66496..9797
  Totals, Class I15,493,04616,384,36816,483,72624,081,34536353033

While the foregoing table shows the aggregate taxable balance of the individuals in receipt of the various sizes of assessable income, it does not indicate the number of individuals with taxable balance of different amounts. A summary of this information for 1937-38 and the two preceding tax-years is contained in the next table.

In the tax-year 1937-38 those individuals who had no taxable balance represented 41.2 per cent. of the number of returns and accounted for 28.4 per cent. of the assessable income for Class I. Of the remainder (110,509), 42,149 had less than £50 taxable balance, with assessable income amounting to £10,815,178.

At the other end of the scale it is found that there were only 4,492 individuals (2,853 in 1936-37 and 2,953 in 1935-36) whose taxable balance amounted to £1,000 or over. Although these in 1937-38 represented only 2.4 per cent. of the total number of returns, their aggregate assessable income was 14.4 per cent. of the total.

Size of Taxable Balance.Number of Returns.Aggregate Assessable Income.
1935-36.1936-37.1937-38.1935-36.1936-37.1937-38.
£    £   £££
Nil66,90868,51077,54016,952,48717,936,63320,741,787
Under 104,4857,0929,239947,8101,557,7262,081,459
10- 195,2967,3219,8871,248,4581,763,7012,419,875
20- 294,3656,6728,6191,094,2721,713,8302,251,789
30- 393,6835,2407,721969,4971,426,2502,128,283
40- 493,2354,4956,683884,8101,290,3701,933,772
50- 9911,58615,08721,7703,532,4214,816,9606,969,539
100- 19912,37613,80518,5884,559,7845,547,4417,436,502
200- 2996,4596,8188,3882,901,0443,470,7974,316,880
300- 3993,7543,9244,9751,961,8432,422,6423,067,396
400- 4992,4162,5043,1941,453,5921,810,2412,307,037
500- 5991,9311,7392,2941,314,1971,434,9701,912,897
600- 6991,5791,2011,7031,208,1811,121,6221,601,787
700- 7991,2488691,2641,067,271902,0811,322,359
800- 899980656946935,638744,8721,085,200
900- 999698533746750,296670,357940,021
1,000-1,9992,3692,1363,1203,551,2923,571,7585,250,098
2,000-2,999384426802988,1221,150,5152,198,482
3,000-3,999124149276466,550559,6971,045,694
4,000-4,9994876119221,977362,649575,108
5,000-5,99912336868,964190,485395,312
6,000-6,9996103739,67767,447255,833
7,000-7,9994112031,79787,453153,831
8,000-8,999342226,52740,040194,211
9,000-9,9993..731,458..70,721
10,000 and over..821..96,968358,959
  Totals133,952149,319188,04947,207,96554,757,50573,014,832

TAX ASSESSED.

The revenue from income-tax during the financial year ended the 31st March, 1938, was £9,078,763. This amount is £51,279 less than the amount of tax shown in the statistical tables as having been assessed for the same year (£9,130,042). There is always a small discrepancy between the two figures, due to a combination of such factors as late payments, the imposition of an additional 5 per cent. in the event of late payment, the inclusion of arrears in the total of tax collected, and the omission of a few returns from the statistical tables.

The average rates of tax for the various classes of income during the last four tax-years were—

Class.Per £1 of Assessable Income.Per £1 of Taxable Balance.
1934-35.1935-36.1936-37.1937-38.1934-35.1935-36.1936-37.1937-38.
 s.d.s.d.s.d.s.d.S.d.s.d.s.d.s.d.
I. Individuals0807011101101921031
II. Companies47485105104748510510
III. Agents for debenture-holders171833....171833....
IV. Non-resident traders111212930111212930
    Totals115110½20210½304243

In comparing the average rate per £1 of taxable balance for Class I, the effect of the full personal exemption of £210 which applied to all incomes in 1936-37 and 1937-38 should be taken into account.

The low figure of tax assessed per £1 of assessable income for Class I, by comparison with Class II, is not due to a lower scale of rates of taxation. As a matter of fact, for equal amounts of taxable balance the individual paid on the average a slightly higher tax than the company, having to pay an additional 33 1/3 per cent. on unearned income and for some years up to and including 1935-36 the now discontinued flat rate of 4d. in the pound on taxable balance in excess of £500. In addition, the individual has dividend income taken into account in the assessment of his rate of taxation, though not of the amount on which tax is paid.

The explanation of the lower average tax assessed in Class I lies partly in the large exemptions in this class and partly in the predominance of incomes in the lower groups. The relative effect of the two factors can be fairly well gauged by comparisons of (1) the tax per £1 of assessable income as between Classes I and IV, and (2) the tax per £1 of taxable balance as between Classes I and II.

The next table gives particulars for the last four tax-years of the amount of tax assessed for each of the ten groups of sources, together with various averages for 1937-38:—

Source.Total Tax assessed.Average Tax assessed, 1937-38.
1934-35.1935-36.1936-37.1937-38.Per Income.Per Taxpayer.Per £1 Assessable Income.Per £1 Taxable Balance.
 ££££££s.d.s.d.
0425,037449,639740,605989,5657140525
196,825121,441153,116199,557647101129
21,400,2441,846,3092,956,0163,900,5962493084453
3606,904795,133981,7711,347,8541,1251,1786465
4321,461203,252536,9831,329,8241261422738
5141,156133,593191,752187,0151532103851
63,5169,37717,87836,85840561781
771,65773,57749,975115,2656337395565
8566,410618,991797,480982,76145472437
915,38913,14128,54140,7471641684649
  Totals3,648,5994,264,4536,454,1179,130,04247782043

The wide range between the different sources is due to the great variation in the average income derived from the respective sources, combined with the fact that the rate of taxation in the £1 increases with increasing taxable balance.

The following table gives particulars for the tax-year 1937-38 of the total tax assessed according to size of assessable income, together with the average amount of tax assessed per taxpayer.

Size of Assessable Income.Total Tax assessed.Tax assessed per Taxpayer.
Class I.Class II.Classes I-IV.Class I.Class II.Classes I-IV.
£    £££££££
Under 20038,6048,35850,9005.64.35.1
200- 299112,7477,487122,1453.314.93.5
300- 399212,1459,207223,2587.622.27.9
400- 499204,5178,926214,67814.531.914.9
500- 599193,3769,987204,24324.440.324.9
600- 699168,5629,082179,18335.750.236.4
700- 799151,84211,713164,78548.561.049.4
800- 899138,58110,531150,17762.372.163.0
900- 999120,30011,728132,95177.985.078.5
1,000- 1,999841,884123,680971,135145.8155.6147.0
2,000- 2,999464,598127,065598,254398.1374.8393.3
3,000- 3,999280,080119,611401,228721.9672.0706.4
4,000- 4,999175,332155,566332,0581,138.51,087.91,114.3
5,000- 5,999151,930130,220283,6751,688.11,532.01,611.8
6,000- 6,99996,912101,615205,0652,307.41,992.52,136.1
7,000- 7,99982,52793,249178,3812,750.92,520.22,623.3
8,000- 8,99957,02166,539123,5603,354.23,024.53,168.2
9,000- 9,99944,07553,18397,2583,672.93,545.53,602.1
10,000-19,999105,987613,899719,8865,578.35,073.55,142.0
20,000-29,99958,659390,816437,4969,776.59,088.79,114.5
30,000-39,999..251,439276,465..10,932.111,058.6
40,000-49,999..209,634209,634..14,973.914,973.9
50,000-99,999..1,002,2831,002,283..25,699.625,699.6
100,000 and over..1,851,3441,851,344..74,053.874,053.8
  Totals3,699,6795,377,1629,130,04233.6896.677.7

The next table gives aggregate tax assessments for incomes grouped according to the amount of tax assessed, together with averages per £100 of assessable income and of taxable balance respectively:—

Amount of Tax assessed.Total Tax assessed.Per £100 of Assessable Income.Per £100 of Taxable Balance.
Class I.Class II.Classes I-IV.Class I.Class II.Classes I-IV.Class I.Classes I-IV.
£    £££££££££
Under 15,5092005,8800.25.30.38.78.4
1 and under 215,95941816,6940.65.50.69.08.8
2 and under 323,92564524,9270.95.51.08.98.7
3 and under 426,72057927,5781.25.51.38.98.8
4 and under 532,56358833,5641.55.21.69.08.8
5 and under 629,14887530,2961.85.41.89.28.9
6 and under 728,70776829,7922.05.52.19.29.0
7 and under 828,11978429,1792.25.72.39.39.1
8 and under 932,12387133,2502.55.72.59.29.0
9 and under 1027,20384528,2922.75.82.79.49.2
10 and under 15127,1264,976133,3193.26.03.29.69.3
15 and under 20108,7825,972115,9073.96.24.09.99.6
20 and under 30183,38310,182195,8494.86.74.910.29.9
30 and under 40152,77911,411165,4815.87.15.910.710.4
40 and under 50127,5668,691137,4796.67.56.611.110.7
50 and under 60116,0638,848125,7137.38.07.311.511.1
60 and under 70101,96410,134112,9367.88.37.911.811.4
70 and under 8087,8248,51897,0838.28.58.312.111.6
80 and under 9085,3869,04595,2968.78.98.812.512.0
90 and under 10072,13410,15583,2239.19.39.212.712.1
100 and under 125152,07123,378177,3329.89.99.813.312.7
125 and under 150134,12020,526155,60010.710.310.614.013.3
150 and under 200194,04132,964228,53911.811.211.715.014.3
200 and under 300290,86356,591349,84113.613.113.516.515.8
300 and under 400181,95353,118236,49715.714.715.418.517.4
400 and under 500154,17043,793200,19117.816.717.620.419.4
500 and under 600122,74138,893162,14819.518.119.222.321.1
600 and under 70084,19240,523124,71520.419.220.023.321.8
700 and under 80088,97628,161118,60422.520.321.925.023.7
800 and under 90055,17233,96290,81223.819.622.126.523.4
900 and under 1,00053,64132,12385,76424.820.422.927.024.1
1,000 and under 2,000307,648296,161608,41828.926.327.631.328.6
2,000 and under 3,000168,724169,903345,84536.132.234.138.134.9
3,000 and under 4,000124,946146,170271,11640.930.234.342.534.8
4,000 and under 5,00039,477210,280249,75743.634.035.345.535.4
5,000 and under 6,00032,557202,780235,33743.136.337.144.137.2
6,000 and under 7,00033,538140,350165,91940.237.538.041.338.1
7,000 and under 8,000..106,015113,984..37.537.6..37.7
8,000 and under 9,00034,618136,887171,50542.135.036.243.536.4
9,000 and under 10,00033,24895,522105,18440.137.537.841.237.9
10,000 and over..3,374,5623,411,196..34.034.0..34.0
    Totals3,699,6795,377,1629,130,0425.129.19.915.421.3

It is of interest to note that of the 188,049 individuals covered by the statistics for 1937-38, 78,004, with assessable income aggregating £20,864,258 (28.6 per cent. of the total for Class I), were not assessed for tax. Of the 110,045 assessed for tax, 45,391 (24.1 per cent. of the total for Class I), with assessable incomes aggregating £11,903,554 (16.3 per cent.), were assessed for under £5 of tax. At the other end of the scale, 955 individuals were each assessed for over £500 of tax, and 359 for over £1,000. Comparable figures for 1936-37 were 494 and 189 respectively.

Even among the companies, 1,244 (20.7 per cent.) had in 1937-38 an assessment of under £5. The aggregate income of these companies was only £44,812—well under 1 per cent. of the assessable income for all companies. Companies which were assessed for over £1,000 of tax numbered 573, a little over 9.6 per cent. of the total; their aggregate assessable income, however, was £14,547,787 (78.6 per cent. of the Class II total), and their aggregate tax assessment was £4,878,630 (90.7 per cent. of company tax). Some 103 companies, with a total assessable income of £9,929,097, were each assessed for over £10,000 of tax (an aggregate of £3,374,562), which constituted 62.8 per cent. of company tax and 37.0 per cent. of the total tax assessed for all classes. In 1936-37, 409 companies were assessed for over £1,000 of tax, while the number of companies assessed for over £10,000 of tax was ninety.

AGGREGATE PRIVATE INCOME.

The concept of “aggregate private income” is obviously open to divergent interpretations. However, as used here, a roughly correct is that it comprises the sum total of the incomes of the individuals of the population, plus the undistributed portion (inclusive of taxation) of company profits. Under “incomes” are included monetary payment from all sources, such as salaries, wages, revenue from investments, gratuities, pensions, superannuation, &c. In the later estimates, although not in that derived chiefly from the 1926 census records, certain non-monetary emoluments—e.g., free housing, free fuel and lighting, &c., where such are in reality part-payments for services—are given a monetary equivalent and treated as income. Where an individual owns and occupies a dwelling the rental value is not assessed as income. Net receipts (gross receipts, less expenditure incurred in earning them) of business houses, farmers, professional men, landlords, employers of labour, &c., are included. Capital receipts—e.g., from deceased persons' estates, repayments of debts, &c.—are excluded. It is probable that the estimates tend to understate the aggregate private income, owing to the inclusion in some cases of domestic expenditure or living-costs among expenditure incurred in earning income. No allowance is made on this account in the statistical computation, and the estimates should be regarded as on the conservative side.

From the foregoing description of the scope of the statistics, it will be realized that the term “aggregate private income” as defined, is not identical with the broader concept “national income.”

As estimates at a given date the data quoted possess recognized limitations, but when derived from the same sources the movement from year to year is of serviceable accuracy.

From the 1926 census statistics of income categories, taken in conjunction with the statistics compiled from the income-tax returns for the income-year ended 31st March, 1926, an approximate estimate of the aggregate income of individual members of the community was compiled for the year 1925-26. Allowing for the effect of approximations and arbitrary allocations, the estimated sum total of the income of all individuals for 1925-26 may be set down conservatively as lying between £130m. and £140m. In such a computation certain weaknesses exist, reducing any estimate to a rough approximation only. The compilation is discussed at greater length in the 1932 Year-Book. Results are given in detail in Vol. XI of the 1926 census results.

The basis for the estimates of aggregate private income quoted in the following table is provided in the main by the figures of receipts from the emergency employment charge under the Employment Promotion Act.

 1931-32.1932-33.1933-34.1934-35.1935-36.1936-37.1937-38.
*Four and a half months.
Subject to emergency charge—£(m.)£(m.)£(m.)£(m.)£(m.)£(m.)£(m.)
  Wages60.555.057.361.266.278.391.1
  Other income25.022.329.027.436.049.249.9
Wages of persons under twenty......1.1*3.05.06.0
Wages of exempt relief workers2.02.92.82.52.51.70.5
Wages of domestic servants1.01.01.00.90.80.91.0
"Other" exempt income of women3.13.13.13.53.54.04.2
"Other" exempt income of Maoris1.01.01.0........
Undistributed company income (including income - tax payments)3.02.53.53.54.05.05.5
Pensions (under Pensions Act, and War Pensions Act)3.02.93.03.13.34.76.0
Sustenance payments..0.10.10.31.11.71.4
"Other" exempt income0.50.40.40.90.91.31.4
    Totals99.191.2101.2104.4121.3151.8167.0

The proportionate distribution of aggregate private income between salary and wage receipts and other income is clarified in the following summary:—

Year.Salaries and Wages.Other Income (including Pensions).Totals.
Amount.Per cent. of Total.Amount.Per cent. of Total.
* Not available.
 £(m.) £(m.) £(m.)
1931-3263.564.135.635.999 1
1932-3358.964.632.335.491.2
1933-3461.160.440.139.6101.2
1934-3565.762.938.737.1104.4
1935-3672.559.848.840.2121.3
1936-3785.956 (i65.943.4151.8
1937-3898.659.068.441.0167.0
1938-39109.5****

The receipts for any year from the emergency charge on wages relate to wages and salaries of the current year, while those from the charge on other incomes are in respect of incomes earned during the preceding year. For the 1937-38 computations, therefore, the 1937-38 receipts from the charge on wages and the 1938-39 receipts from that on other incomes are taken.

Certain types of income are not subject to the charge, particulars of these exemptions being given on pages 593-594. For these classes estimates have been prepared—in part upon a more or less arbitrary basis. Amendments to the exemptions are responsible for the movement in some of the items as between 1933-34 and 1934-35.

It need scarcely be stressed that the estimates are merely fairly rough approximations.

It is of interest to compare the year-to-year movement in the totals of aggregate private income with the movement in the estimates of value of production and of value of goods available for consumption in the Dominion. In making comparisons, however, it should be remembered that the estimates of value of production are based on values at the point of production, the value of professional services, distributive charges, &c., not being included in the estimate, while transport charges are only partly represented. The value of goods available for consumption is arrived at by adding to the value of production the value of imports, and deducting the value of exports.

The estimated totals under the various headings are given in the following table. It will be noted that there is no fixed relationship between the estimated totals of private income and of value of production.

Year.Aggregate Private Income.Value of Product ion.Value of Goods available for* Consumption.
 £(m.)£(m.)£(m.)
1931-3299.183.673.6
1932-3391.283.S71.6
1933-34101.298 .876.4
1934-35104.497.088.3
1935-36121.3114.2100.0
1936-37151.8136.1121.6
1937-38167.0135.6131.2

COMPANY INCOMES.

Preliminary figures relating to incomes of companies for the tax-year 1938-39 are presented hereunder, together with a table showing the totals of this class for the last five years:—

COMPANY INCOMES.—TAX-YEARS 1934-35 TO 1938-39.

Tax-yearNumber of Taxpayers.Total Returnable Income.Assessable Income.Tax assessed.
* Not available.
  £££
1934-353,811*9,518,3692,175,069
1935-364,33212,113,20411,909,6112,782,658
1936-375,07314,276,52713,901,9194,071,509
1937-385,99719,073,54018,499,0425,377,162
1938-396,58220,571,19019,669,6925,784,557

In comparison with the previous year, the figures for 1938-39 show an increase of 585 (9.8 per cent.) in the number of tax-paying companies, £1,170,650 (6.3 per cent.) in the amount of assessable incomes, and £407,395 (7.6 per cent.) in the amount of tax assessed. These rises, however, are small, both absolutely and relatively, compared with the outstanding increases in 1937-38, the corresponding increases for that year over 1936-37 being: Taxpayers, 924 (18.2 per cent.); assessable income, £4,597,123 (33.1 per cent.); and tax assessed, £1,305,653 (32.1 per cent.).

The average assessable income and the average tax assessed per return have declined from £3,085 and £897 respectively in 1937-38 to £2,988 and £879 respectively in 1938-39.

COMPANY INCOMES, BY SIZE OF ASSESSABLE INCOME, TAX-YEAR 1938-39.

Size of Assessable Income.Number of Taxpayers.Total Returnable Income.Assessable Income.Tax assessed.
£££££
Under 2002,046214,806155,5188,994
200 and under 300509128,899124,3237,759
300 and under 400467171,116160,36610,538
400 and under 500336156,071150,29710,483
500 and under 600278235,993150,00711,257
600 and under 700263172,140170,34313,286
700 and under 800196147,669146,69411,912
800 and under 900175149,176147,80612,814
900 and under 1,000166166,677157,22514,288
1,000 and under 2,0008981,287,0861,260,320141,349
2,000 and under 3,000385961,075950,896147,515
3,000 and under 4,000196729,964674,423135,354
4,000 and under 5,000136658,752604,005144,761
5,000 and under 6,00086519,369484,093136,788
6,000 and under 7,00072471,696465,917144,337
7,000 and under 8,00040308,911302,47297,920
8,000 and under 9,00028239,861238,81285,317
9,000 and under 10,00025243,258236,99788,874
10,000 and under 20,0001221,785,2451,705,440631,340
20,000 and under 30,000591,531,1001,429,029528,727
30,000 and under 40,00023844,361791,783279,536
40,000 and under 50,00016765,252708,049250,478
50,000 and under 100,000332,390,3312,287,137821,788
100,000 and over276,292,3826,167,7402,049,142
    Totals6,58220,571,19019,669,6925,784,557

Of the total of 6,582 companies, the assessable income was less than £1,000 in 4,436 cases, this figure representing 67.4 per cent. of the total number. The aggregate assessable income of these companies, however, amounted to only 6.9 per cent. of the total assessable income of all companies. On the other hand, the 280 companies which had assessable incomes of £10,000 and over accounted for £13,089,178 (66.5 per cent.) of the assessable income and £4,561,011 (78.8 per cent.) of the tax assessed.

Chapter 36. SECTION XXXVI.—PRICES.

PRICE FIXATION.

IN New Zealand, as in other countries, increased regulation of prices by governmental control has been a feature of economic policy in recent years. Nation-wide control of prices of essential commodities was resorted to during the Great War of 1914-18, the motives behind legislation and regulations towards that end being the necessity of purchasing at reasonable prices commodities required for war purposes, and the protection of the consumer from the full force of the abnormal rises in prices caused by the scarcity of many necessary commodities.

The administration of these price-fixing measures was in the hands of the Board of Trade, set up under the provisions of the Cost of Living Act, 1915, regulations being issued from time to time fixing maximum prices for various commodities—e.g., sugar, timber, wheat, &c. The Board of Trade Act, 1919 (in consolidation and amendment of the pre-existing legislation) contained provisions for the establishment of the Department of Industries and Commerce and for a Board of Trade, the Board to consist of the Minister of Industries and Commerce (President) and not more than four other members. By an amendment in 1923 the Board was abolished, its functions being taken over by the Minister. Authority was also taken under the Act “for the establishment of fixed minimum or maximum prices or rates for any classes of goods or services or otherwise for the regulation or control of such prices or rates.” The Act also includes provisions especially aimed at the prevention of profiteering.

The control of prices initiated during the war years continued in some instances well into the post-war period, the dates of cessation of control in certain important individual cases being: Bacon and ham, February, 1920; butter, August, 1921; sugar, August, 1923. Control of prices of building-materials was resorted to in 1920 and 1921, during a period of acute shortage of these materials.

Control of wheat prices was made necessary shortly after the outbreak of the war of 1914-18; fixation of prices of wheat, and flour, with Government subsidies on flour and guaranteed prices of wheat, continuing until February, 1923, while control of imports—which was a necessary part of the policy—and “agreed” prices continued until February, 1926. Maximum prices of bread, flour, bran, and pollard were fixed by Orders in Council until 24th February, 1925, when free-marketing conditions were again resumed. In order to protect wheatgrowers from world competition, a sliding scale of import duties was introduced in 1927, designed to maintain a payable price within the Dominion. From time to time the sliding scale has been altered; but the system remains in operation. On 11th March, 1936, regulations were issued prohibiting the import of wheat or flour, except with the consent of the Department of Industries and Commerce. In 1933 a Wheat-purchase Board (reconstituted the Wheat Committee in 1937) was set up to control the purchase and distribution of milling - wheat of the 1933 season. All purchases and sales of milling - wheat were to be conducted through the agency of the Board, which fixed its buying and selling prices of milling - wheat. The growers received interim payments during the season, a final distribution being made at the close of the season. The system has operated in each successive season since 1932-33; while, under regulations gazetted on 1st April, 1936, the Board has fixed current sale prices of flour, and may, if it thinks fit, fix prices of wheaten by-products. Authority for the control of output of flour-mills is taken by the same regulations.

Maximum prices of bread in the Dominion are now fixed by regulations under the Board of Trade Act, 1919. An Order in Council dated 12th February, 1936, fixed a maximum price in the four chief urban areas and in certain localities contiguous thereto; the Order applied also in the City of Invercargill and the boroughs of Ashburton, Temuka, Timaru, and Oamaru. This represented the first governmental fixation of bread prices since the expiry in 1925 of the war and post-war regulations to the same end. Amended regulations came into force on 28th August, 1936, applying maximum prices to the whole Dominion.

The maximum prices at which superphosphates can be sold have been fixed by regulations since October, 1931, as a measure towards the assistance of the farming industry. A lowering of prices was achieved by the payment of a subsidy to the companies, but payment of the subsidy has now been abolished (without a raising of prices).

Prices of woolpacks are fixed by regulations dated 5th April, 1939, and taking effect from 14th April, 1939.

The Motor-spirits (Regulation of Prices) Act, 1933, gives power to fix maximum and minimum prices of motor-spirits, the administration of the Act being a function of the Department of Industries and Commerce. Prices of motor-spirits are still fixed by regulations under this Act.

Extensive regulation of fares has for some years past existed in the realm of transport. In order to control chaotic and uneconomic competition in road services, schedules of fares and freight rates have been fixed for services along specified routes by various regulations under the Transport Licensing Act, 1931; while competition between tramways and bus services has led to the fixation of minimum bus fares in certain localities where these services enter into competition with the tramway services. Maximum and minimum taxi fares may be fixed by municipalities under the authority of the Municipal Corporations Act, 1933.

The fares chargeable by aircraft services are also the subject of governmental regulations.

The Primary Products Marketing Act, 1936, made provision for the fixation of prices of butter and cheese for export and for consumption in New Zealand, and regulations in this behalf are issued from time to time. An amending Act of 1937 specifically brought eggs, fruit, and honey within the scope of the Act, while subsequent regulations added hops and potatoes.

Regulations have also been issued fixing the prices of onions, lemons, raw tobacco, blue cod for export, and sugar.

The control and distribution of bananas and imported citrus fruits have been in the hands of the Internal Marketing Division of the Marketing Department since early in 1938.

In June, 1939, a Price Investigation Tribunal was constituted from the members of the existing Advisory Board under the Board of Trade Amendment Act, 1923, and restrictions were placed on increasing prices of goods and services without prior application to this Tribunal.

Pursuant to a Proclamation of Emergency under the Public Safety Conservation Act, regulations were made on 1st September, 1939, with the object of stabilizing prices. These regulations provide that prices of goods and services shall not be raised above the prices ruling on 1st September, except as may be specifically authorized by the Minister of Industries and Commerce. A clause in the regulations also prohibits the hoarding of goods.

Foodstuffs generally, and sugar, wheat, and flour specifically, were brought under the control of the Government by emergency regulations made on 4th September.

Following is a table of regulated prices operative at present (October, 1939) in respect of certain important commodities:—

Commodity.Unit.Price.Remarks.
* To yield 3/4 bushel of cured fruit.
Wheat (milling)— £s.d. 
TuscanBushel0511Price to South Island mills, plus a subsequent payment of 3d. per bushel.
HuntersBushel061
PearlBushel063
FlourTon13106Price to bakers in four chief centres.
Bread (retail)2 lb. loaf00Main centres and certain boroughs, &c., cash; delivery, ½ d. extra (maximum). Rest of Dominion, 6d. cash; up to ½ d. extra allowed for delivery.
Superphosphates—     
44/46 per cent.Ton3160North Island; price to consumer.
44/46 per cent.Ton420South Island; price to consumer.
Motor-spiritsGallon (Imp.)0111Wholesale price, according to locality, for standard spirit. Retail price, approximately 3d. per gallon higher.
   to  
  02 
WoolpacksEach031042 in. by 27 in. by 27 in., ex store, main ports.
WoolpacksEach04248 in. by 27 in. by 27 in., ex store, main ports.
WoolpacksEach04654 in. by 27 in. by 27 in., ex store, main ports.
ButterLb.011.39 toFor export, according to grade.
  013.015 
ButterLb.013.5 toWholesale price for local consumption, according to grade.
  014.5 
CheeseLb.008.17 toFor export, according to grade.
 008.57625  
OnionsTon400Minimum price for f.a.q. grade.
OrangesCase130 toWholesale price, according to “ count “ of case. Four chief centres.
  160 
OrangesDozen017 toRetail price, according to “count.”
  032Four chief centres.
Lemons"Measure045 toAccording to grade.
 case”*069 
Raw tobaccoLb.012Minimum price f.o.b. or f.o.r. nearest port or railway-station.
Blue codLb.00For export, f.o.b.
SugarLb.004Retail.
SugarTon2841 toWholesale, according to nature and place of sale.
  30185 

Prices of wheat shown in the foregoing statement are those ruling in September, 1939. The schedule varies according to the time of the year. The prices shown are those charged to South Island mills; those to North Island mills being 1½d. per bushel lower to enable price-equalization throughout the Dominion.

The Prevention of Profiteering Act, 1936, was passed to prevent profiteering by prohibiting the making of unreasonable increases in prices (vide Section XXXVIII —Labour Laws and Allied Legislation).

Control of prices of milk in Wellington is in the hands of the Wellington City Council, which was granted a monopoly (with certain minor exceptions) of the sale of milk in Wellington by a local Act passed in 1919. The Auckland Metropolitan Milk Act, 1933, authorizes the Auckland Metropolitan Milk Council to fix prices for milk sold in Auckland City and suburbs. In this instance a monopoly has not been created, though it is an offence to sell or deliver milk in the district except under license from the Council.

RETAIL PRICES.—INTRODUCTORY.

Retail-price quotations, from which index numbers are regularly calculated, are collected each month in twenty-five centres of the Dominion, selected as being representative of New Zealand as a whole. These twenty-five centres are distributed over both Islands, from Whangarei in the North to Invercargill in the South, and are representative of both coastal and inland districts, and of both large and small centres. Returns of prices are collected by local Inspectors of Factories, for the most part from representative retailers, and from these data index numbers are compiled in the Census and Statistics Department, Wellington. These index numbers are published each month in the Monthly Abstract of Statistics.

The commodities for which monthly index numbers are compiled are foodstuffs and fuel and lighting, foodstuffs being divided into three groups—groceries, dairy-produce, and meat. Statistics of house-rents have been collected at six-monthly intervals since the inauguration of price statistics in 1914, and later the inquiry was extended to cover clothing and miscellaneous items, figures for which are collected at quarterly intervals.

Separate series of index numbers of retail prices are compiled and published for the following groups:—

  • Group I.—Groceries.

  • Group II.—Dairy-produce.

  • Group III.—Meat.

  • Group IV.—House-rent.

  • Group V.—Fuel and light.

  • Group VI.—Clothing (including drapery and footwear).

  • Group VII.—Miscellaneous items.

In addition, index numbers are compiled and published for the food (that is, the first three) groups combined, and also for all groups combined.

The nomenclature of Groups I to VI is indicative generally of the nature of their constituent items, but as Group VII is not equally informative it may here be briefly stated that it consists of ninety-five items, including household furnishings, ironmongery, brushware, crockery, reading-matter, cleaning-materials, tobacco, postage and telegrams, transport, and personal services. It will be seen, then, that the all-groups is almost exclusively a commodity index, and cognizance is not taken of a number of channels of expenditure, some of them being definitely of more than minor importance. Among such may be mentioned: Direct taxation (e.g., income-tax and social-security tax); sports and amusements; religious and charitable contributions; medical, dental, and legal fees: insurance premiums and losses by fire or accident, &c. It has also been found impossible to include in the regimen a number of items (principally such as, in accordance with modern trends, have been adopted as conventional necessities) owing to the fact that they, from year to year, differ appreciably in their essential nature and the facilities that they provide. Instances of this kind are motor-cars, radios, cooking and heating appliances, cosmetics, &c.

From the foregoing alone it will appear that the all-groups index cannot properly be referred to as a “cost-of-living” index, and the use of this designation is avoided by the Census and Statistics Department. There are, moreover, additional reasons why such a term would be a misnomer, for a fixed regimen has been adopted and no allowance is made for changes in the quantities of goods consumed, following increases or decreases in prices or reduced or increased purchasing-power.

Prior to the year 1931 the retail prices index numbers were compiled on a pre-war base; but during 1931 a series of index numbers was initiated based on the average of prices ruling during the five years 1926-30. In order to permit of the revision being carried out, a collection of household budgets was made in 1930, so that an estimate of the proportionate distribution of expenditure in the various main groups of household expenditure might be made. These data are used in combining the group index numbers in order to arrive at a single figure representing all groups combined. The results of the budget collection were published in some detail in the 1931 issue of the Year-Book (pp. 793-795).

In the compilation of the index numbers for the food groups, rent, and fuel and light, the aggregate expenditure method is used, the retail price of each individual item in these groups being “weighted” according to its average annual consumption in the Dominion during the years 1926 to 1930. In the clothing and drapery and miscellaneous groups the unweighted geometric average of price ratios is used for most subgroups, no reliable data being available as to the consumption of individual items in these groups, except in the case of two subgroups in the miscellaneous group (fares and cleaning supplies) where the aggregate expenditure method is adopted.

RETAIL FOOD-PRICES.

The following table shows the annual average index numbers for the three food groups combined, for each of the four chief centres and for the Dominion as a whole, during the last ten years. In the compilation of these indexes each item and separate group (groceries, dairy-produce, and meat) is accorded its relative importance in the combined food-groups index number. The average of annual Dominion index numbers for the years 1926 to 1930 equals 1000.

THREE FOOD GROUPS.—INDEX NUMBERS.

Year.Auckland.Wellington.Christchurch.Dunedin.Average of Four Centres.Dominion Weighted Average.
19291,0309849951,0091,0051,013
1930983959946966964974
1931848827843829837845
1932773761770751764775
1933724719732700719732
1934781760765743762774
1935863811814811825835
1936893848846845864870
1937977935933957951956
19381,0089819611,006989991

To effect a general survey of the course of prices for the whole Dominion it has been necessary to obtain a weighted average of the index numbers for each of the twenty-five representative centres. Price-indexes for each centre have been weighted in accordance with the number of people in that centre, and a composite index number has been obtained, which, though necessarily artificial, represents accurately enough the average level of retail prices in the Dominion.

The twenty-five centres considered have a total population of approximately half that of New Zealand, and they can therefore be regarded as reasonably representative of the Dominion. The four chief centres, which include nearly 40 per cent. of the Dominion's population, account for over 70 per cent. of the population of the twenty-five centres, so that their influence in the Dominion index number is naturally predominating. However, the chief centres not only comprise a great part of the people of the Dominion, but also set the standard which is generally followed throughout the country.

The 1933 index numbers for each of the four chief centres and the Dominion are the lowest recorded during the last decade, a substantial fall occurring between 1929 and 1933. The Dominion annual average index (732) for 1933 was only 4.1 per cent. above the level in July, 1914. The figures for the five subsequent years, however, generally indicate a restoration of prices to a level in 1938 considerably above that for 1930. For the most recent index numbers refer to “Latest Statistical Information” in the forefront of this volume.

Attention may be drawn in passing to the comparatively small differences recorded between the average index numbers for the four chief centres and the Dominion weighted averages. In this respect, as will be shown later on in this section, the average of the three food groups combined stands in contrast to the rent group.

RETAIL PRICES OF GROCERIES.

Prices in the groceries group fell steadily, though slowly, during the decade ending with 1933, the Dominion index number for that year being the lowest recorded during the period. Prices generally rose during 1934 and 1935, but during 1936 there was again an appreciable fall. After an increase of 67 points in 1937 there was, in the last year of the table, a comparatively small downward movement of 12 points, largely due to the influence of potato-prices.

Index numbers of retail prices of groceries in each of the four chief centres are given in the following table, which also shows the unweighted average of the four chief centres and the Dominion weighted average. The average of the Dominion annual index numbers for 1926 to 1930 equals 1000.

GROCERIES.—INDEX NUMBERS.

Year.Auckland.Wellington.Christchurch.Dunedin.Average of Four Centres.Dominion Weighted Average.
1929985953932958957973
1930928922883924914932
1931899876842887876891
1932856837804863840857
1933813780787832803819
1934815837817850830845
1935884904858900887899
1936852871854870860878
1937912941916971935945
1938899930909949922933

The factors underlying the fluctuations in the groceries group will be more clearly understood when it is remembered that the items comprising the group are varied in nature, and may be treated in three subgroups as shown below. The fundamental distinction is that the items comprising Group 1A are almost wholly imported from overseas, while those in Group 1B are almost wholly produced in the Dominion. Sugar is not wholly a product of New Zealand, the raw material being imported and refined at Auckland. The Dominion weighted average index number, 1926 to 1930, equals 1000 in each case.

GROCERIES SUBGROUPS.—INDEX NUMBERS.

Year.Auckland.Wellington.Christchurch.Dunedin.Average of Four Centres.
Group 1a.—General Groceries.
1934870871857934883
1935887881869916888
1936881898872911891
1937921965925989950
19389399929601,006974
Group 1b.—Bread, Flour, Oatmeal, Potatoes, and Onions.
1934731773740755750
1935845878807853846
1936789807792796796
1937854871854914873
1938827839829865840
Group 1c.—Sugar.
19341,0781,0821,0871,0931,085
19351,0621,0841,0711,0811,075
19361,0831,1081,0971,1151,101
19371,1661,2121,1871,1981,191
19381,1381,2031,1601,1981,175

Although the indexes for Group 1B are much lower than those for Group 1A, a comparison of the first with the last year of the quinquennium reveals an almost identical net increase. The comparative movements during the last year are however, very dissimilar, for, while the index for Group 1A rose 24 points, that for Group 1B fell 33 points, potato-prices exercising the predominating influence in the latter case.

RETAIL PRICES OF DAIRY-PRODUCE.

The next table shows annual average retail prices index numbers for the dairy-produce group. The Dominion weighted average index number for 1926 to 1930 equals 1000.

Year.Auckland.Wellington.Christchurch.Dunedin.Average of Four Centres.Dominion Weighted Average.
19291,0051,0319431,0241,001999
1930942954905954939939
1931819836766778800807
1932742761667680713722
1933652708617625651661
1934680704612651662666
1935761787698744748749
1936821839729789800801
1937915935873887903902
1938947983913920941940

Between 1922 and 1929 dairy-produce prices did not fluctuate to any marked extent, the lowest Dominion annual index number during that period being 985 (in 1922) and the highest 1053 (in 1924). Between 1929 and 1933 a marked downward trend in dairy-produce prices is apparent. The 1933 annual average index (661) is considerably below that for any year during the preceding decade, while the 1934 Dominion figure shows a rise of only live points as compared with 1933. For 1935, however, each of the indexes given in the above table shows an increase of over eighty points since the previous year, and this upward trend is continued in the subsequent years.

RETAIL PRICES OF MEAT.

Between the years 1922 and 1929 the general trend of meat prices was upward, the lowest Dominion index number recorded during that period being 813 (in 1922) and the highest 1052 (in 1929). A slight falling-off in meat prices in 1930 was followed by a sharp fall in 1931, the index number for the latter year (834) representing a fall of 199 points, or 19.3 per cent., as compared with the 1930 figure. Retail prices of meat in 1931 were still slightly higher than in the year 1922; but during 1932 and 1933 prices fell to a lower level than was recorded during the slump of 1922, the annual average index number for 1933 (714) representing a considerable decrease on the 1922 annual average index number. The year 1934 marked the commencement of a recovery which has since been maintained, and the 1938 index is 72 points in advance of that for the previous year, and at the highest level recorded since 1920.

MEAT.—INDEX NUMBERS.

Year.Auckland.Wellington.Christchurch.Dunedin.Average of Four Centres.Dominion Weighted Average. (1926-30 = 1000.)
19291,0809731,0791,0361,0421,052
19301,0529901,0231,0051,0181,033
1931829781897815831834
1932729702817714741747
1933705678769650701714
1934827740838725783796
1935919756863789832846
1936977835924866901912
19371,0729319909959971,003
19381,1361,0211,0351,1121,0761,075

FOOD-PRICES.—COMPARISON WITH JULY, 1914.

For purposes of all the foregoing tables the base period has been taken as the average of the years 1926-30. For some purposes, however, interest centres on the comparison between present prices and those prevailing immediately prior to the outbreak of the war of 1914-18. One of the advantages of the aggregate expenditure method is that it enables index numbers computed on one base to be converted by a simple application of the rule of proportion to another base regarded as desirable for some special purpose. The following table relates to the Dominion weighted average for the respective groups:—

Group.First Quarter, 1938.Second Quarter, 1938.Third Quarter, 1938.Fourth Quarter, 1938.Average for Year 1938.
Index Number.Percentage Increase.*Index Number.Percentage Increase.*Index Number.Percentage Increase.*Index Number.Percentage Increase.*Index Number.Percentage Increase.*
* Over July, 1914.
Groceries (index number, July, 1914: 624)96053.892147.691246.293850.393349.5
Dairy-produce (index number, July, 1914: 719)92328.497635.793029.393029.394030.7
Meat (index number, July, 1914: 759)1,05138.51,06640.41,08442.81,09944.81,07541.6
Three food groups (index number, July, 1914: 703)98640.399541.598540.11,00042.299141.0

HOUSE-RENT.

In investigating changes in the cost of housing the Census and Statistics Department has traced the movements of house-rent over a series of years. Such normally provide a reasonably accurate indication (and, in effect, the only practical means available) of movements in housing-costs in general, not only for those paying rent, but also for those who own or partially own the dwellings they occupy. It is probable that this latter assumption is less valid in the abnormal conditions existing since 1930.

By reason of the fact that leases, infrequent changes of residence, and the difficulty of departing from customary rents all tend to make the movement of the general level of rents comparatively slow, it has not been deemed necessary to attempt to measure the changes over short periods. The data from which the rent figures are compiled are therefore collected semi-annually only, in the months of February and August. Annual index numbers for rent are computed on the assumption that the February index number represents conditions prevailing during the first four and a half months of the year; the August index conditions prevailing during the next six months, and the index for February of the following year conditions prevailing during the last one and a half months of the year.

HOUSE-RENT.—INDEX NUMBERS.

Year.Auckland.Wellington.Christchurch.Dunedin.Average of Four Centres.Dominion Weighted Average (1926-30 = 1000).
19299851,3369909371,0621,019
19309531,3269739581,0531,007
19318761,241926936995953
19327631,063823846874844
1933693937748799794766
1934696929747792791758
1935719964755802810774
1936770997777821841804
19377911,023800838863828
19388151,061833865894858

It is advisable to stress that the index numbers in respect of rent indicate the movement in the average rentals of a large number of houses already let, in many cases for some time, and that they do not purport to convey any statement as to the relative price at which housing accommodation has been obtainable from time to time by would-be occupants of houses then being re-let.

The index numbers for each of the twenty-five centres at each of the last four collections are appended, together with yearly index numbers for 1936, 1937, and 1938.

HOUSE-RENT.—INDEX NUMBERS FOR TWENTY-FIVE CENTRES.

Centre.Yearly Average, 1936.Yearly Average, 1937.Yearly Average, 1938.February, 1938.August, 1938.February, 1939.August, 1939.
Auckland770791815798820848863
Wellington9971,0231,0611,0351,0801,0621,080
Christchurch777800833829839822846
Dunedin821838865850872880899
Whangarei704755815806808871892
Hamilton780870884855899914912
Waihi528550586570601576576
Rotorua835868851833851902912
Gisborne695711732719738744740
Napier762776806787810847846
Dannevirke634659703704699713739
New Plymouth814821860841869878909
Wanganui615641690658705728748
Taihape648687712695700810797
Palmerston North822843865857861908910
Masterton770784830799848848873
Blenheim634656680673678707762
Nelson743797838828845840836
Greymouth704717744753742721792
Ashburton698693715705712755764
Timaru738761779771780799837
Oamaru728742756735768768807
Alexandra583619663663662663678
Gore599646654662646658743
Invercargill696706722710724747777
Dominion weighted average (1926-30 = 1000)804828858842866874893

House-rents reached a peak level in 1929, since which year the Dominion rent-index number fell at each successive collection up to and inclusive of 1934. Subsequent figures, however, exhibit a definite upward trend. Rent and interest charges were compulsorily reduced by 20 per cent. by the National Expenditure Adjustment Act, 1932. The reduction was at first temporary, but was made permanent, in cases to which it applied, by the Mortgagors and Lessees Rehabilitation Act, 1936. The Fair Rents Act, passed in 1936, was a temporary measure designed to prevent undue increases in rents, and was to remain in force until September, 1937. Subsequent amendments have extended its duration from time to time, and the amending Act of 1939 places the expiry-date at 30th September, 1940. The 1939 Act also extended the scope of the legislation to certain types of flats and apartments which were not covered by the principal Act. A comprehensive housing policy, including the building of houses by the Government and local authorities for letting purposes was commenced in March, 1937, and is being vigorously prosecuted (see Section XXIII).

FOOD AND RENT.

Generally speaking, apart from the consideration of different rates of population-increase, the chief centres have higher rentals than the minor centres. The four largest centres have, however, lower indexes for groceries and for the three food groups combined than the majority of the smaller towns. The following indexes, representing yearly averages for 1938, illustrate this point:—

Group.Weighted Average of Four Chief Centres. (a.)Weighted Average of Twenty-one Smaller Centres. (b.)Excess of (a) over (b).Excess of (b) over (a).Dominion Weighted Average.
Groceries916971..55933
Dairy-produce94592619..940
Meat1,0791,06415..1,075
Three food-groups990995..5991
House-rent890781109..858

The following table shows the index numbers for the various groups for each of the twenty-five centres on the base: Dominion weighted average expenditure, 1926-30, equals 1000:—

FOOD GROUPS AND RENT.—INDEX NUMBERS FOR TWENTY-FIVE CENTRES, 1938.

Centre.Group I: Groceries.Group II: Daily produce.Group III: Meat.Groups I-III: Food Groups.Group IV: House-rent.
Auckland8999471,1361,008815
Wellington9309831,0219811,061
Christchurch9099131,035961833
Dunedin9499201,1121,006865
Whangarei9639731,1831,054815
Hamilton1,0359441,0901,031884
Waihi1,0149541,0791,023586
Rotorua1,0369581,1261,050851
Gisborne1,011989978992732
Napier9709351,003972806
Dannevirke9538851,037968703
New Plymouth9538841,021960860
Wanganui9859521,1181,029690
Taihape1,0349511,1721,065712
Palmerston North9669141,0951,002865
Masterton9829391,0991,017830
Blenheim9909381,0751,009680
Nelson9659441,061997838
Greymouth9089691,007966744
Ashburton894905998939715
Timaru9328401,030945779
Oamaru9259191,067980756
Alexandra1,0539541,0661,030663
Gore9699311,0971,009654
Invercargill9539051,074988722
Weighted average for Dominion9339401,075991858

Ashburton, Auckland, Greymouth, and Christchurch are the cheapest in respect of prices of groceries, while Alexandra has the highest index for this group. Gisborne and Wellington are dearest in respect of prices of dairy-produce; and the Whangarei index for meat is highest, followed by Taihape. Timaru shows the lowest prices for dairy-produce, while meat is cheapest in Gisborne and Ashburton.

RETAIL PRICES OF FUEL AND LIGHT.

For the purpose of tracing the course of prices in the fuel and light group, a small group of seven items—coal, coke, firewood, kerosene, gas, electricity, and candies—is taken into account for the four chief centres. It is not feasible to extend this index to the remaining twenty-one centres covered by the food and rent indexes.

FUEL AND LIGHT.—INDEX NUMBERS.

Period.Auckland.Wellington.Christchurch.Dunedin.Average of Four Centres (1926-30 = 1000).
  Year.     
19291,114968986898992
19301,112968988897991
19311,108951995892987
19321,020925993894958
1933860931987781890
1934807886976695841
1935900873974713865
1936952879955762887
19371,002915977802924
19381,0409741,025816964
Quarter.     
First, 19381,0049281,017813941
Second, 19381,0249711,022813957
Third, 19381,0629971,031812976
Fourth, 19381,0689981,031825981
First, 19391,0819981,032848990
Second, 19391,0829981,032849990
Third, 19391,0839991,032849991

The average index number for this group for the four chief centres fell sharply between 1922 and 1923, remained practically stationary between 1923 and 1931, and fell in 1932, 1933, and 1934, since when an upward tendency is again in evidence. Fuel and lighting prices are, on the average, substantially lower in Dunedin than in the other centres.

RETAIL PRICES OF CLOTHING AND OF MISCELLANEOUS ITEMS.

In regard to the method of treatment of the clothing and miscellaneous groups, it is to be explained that, as in the case of fuel and light, the inquiry is in general restricted to the four chief centres; further, except as regards fares and cleaning supplies, in respect of which accurate weights based on usage in the base period are available, enabling the aggregate expenditure method to be employed, no satisfactory information is available or procurable which would enable individual weights to be allotted to each item. For this reason the same measure of precision is not possible in the treatment of these groups, but by selective balancing of representative items and arranging them in representative subgroups a measure of weighting is secured, each subgroup being treated as a separate unit. Price ratios are computed, geometric averages of which are compiled for the subgroups and for the complete groups. In order to facilitate the dropping of obsolete items and the inclusion of new items (particularly in the clothing groups), the initial computations of price ratios are based on prices in the immediately preceding collection of the data, the group averages being linked to the 1926-30 base.

The movement of prices of clothing and miscellaneous items from year to year may be traced in the table under the next heading.

RETAIL PRICES.—ALL GROUPS.

From the collection of household budgets in 1930, the average household expenditure under various heads was found to be as follows:—

 Per Cent.
Food29.52
Housing21.93
Clothing, drapery, and footwear12.61
Fuel and light6.17
Miscellaneous29.77
 100.00

These weights are applied to the index numbers of the different groups in the process of arriving at the “all-groups” retail prices index, with the exception that the weight applied to the miscellaneous group is 11.08 and not 29.77. Thus 81 per cent. of household expenditure is covered by the index number. The remaining 19 per cent. represents miscellaneous items for which it has been found impossible to obtain reliable price-quotations. Their omission has the effect of giving them the same general average price-movement as the 81 per cent. covered.

The following table shows the index numbers for all groups for each year since 1914. It should be noted that the annual index numbers given represent the average price-level during each year, not at any of the particular points during the year at which the prices for the respective groups were collected:—

ALL GROUPS INDEX NUMBERS.

(Base: Dominion weighted average of prices in 1926-30 in twenty-five centres in case of Groups I to IV, and average of prices in 1926-30 in four chief centres in case of Groups V, VI, and VII = 1000.)

Year.Food Groups.Rent.Fuel and Light,Clothing, Drapery, and Footwear.Miscellaneous.All Groups combined.Increase per Cent. over July, 1914.
Groceries.Dairy-produce.Meat.Three Food Groups.
(I.)(II.)(III.)(I-III.)(IV.)(V.)(VI.)(VII.)(I-VII.) 
* Month of July.
1914*624719759703535585686601628..
19157708028328035385937466466767.6
191676988090885754163787171272415.3
19178369339829205537281,03179478625.2
19189419681,0389855667821,21689885035.4
19199821,0251,0681,0275818521,47697591245.2
19201,2061,1841,1141,1656131,0131,6531,1311,01962.3
19211,2281,2579541,1346801,1311,5091,1531,03464.6
19221,1009858139587241,0451,2741,10395251.6
19231,0431,0098629657929981,1731,05595952.7
19241,0601,0539201,0058599851,1391,03398456.7
19251,0441,0431,0081,0309129931,1111,0151,00459.9
19261,0471,0459941,0269621,0021,0601,0131,01060.8
19271,0151,0109379831,0001,0051,0171,0331,00159.4
19281,0331,0069791,0041,0141,0119951,0021,00660.2
19299739991,0521,0131,0199929809861,00459.9
19309329391,0339741,00799194798698156.2
193189180783484595398786998690644.3
193285772274777584495881497383833.4
193381966171473276689081697679526.6
193484566679677475884183297380828.7
193589974984683577486582898083733.3
193687880191287080488783799386437.6
19379459021,0039568289249151,05092347.0
19389339401,0759918589649361,05495151.4

The index numbers for all groups combined did not fluctuate to any great extent between 1922 and 1930, but during the next three years a considerable fall took place. In 1934 an upward movement commenced, the index for 1938 being 19.6 per cent. above that for 1933.

The diagram which follows illustrates the fluctuations of retail prices and house-rents from 1914 to 1938, and brings out clearly the tendency of rent movements to lag behind those of the other groups.

WHOLESALE PRICES.

In most countries index numbers of wholesale prices are compiled from the price data available in trade journals or from the published reports of wholesale markets. In New Zealand wholesale markets scarcely exist, and consequently price data for the wholesale-prices investigation have been collected from wholesale merchants and traders, who from the volume of the business they transact are able to supply representative information.

Since 1917 such wholesale-price quotations have been collected monthly, the inquiry being for the most part confined to the four chief centres. In the case of a few commodities (e.g., newsprint), of which there is a consumption so large that the article can scarcely be omitted from the price-index, yet for which no actual market exists within New Zealand, the inclusion of the commodity in the index number has been rendered possible by ascertaining movements of prices from the import statistics. Statistics of imports and exports as a source of price data have, however, been avoided as far as possible, on the ground that where quotations are obtained from traders care can be taken to ensure that the grade, &c., quoted for is kept constant. A considerable volume of data as to wholesale prices was secured from merchants and traders (and in a few cases from import figures) by means of retrospective investigations covering the years 1891 to 1917, and sufficient information was secured to permit of the compilation for each year from 1891 onwards of a “general” wholesale prices index number based on the prices of 106 commodities.

During 1926 a revision of the wholesale prices index was effected, specially designed, inter alia, to permit of the inclusion in the index number of several commodities such as motor-spirits, &c., the importance of which had increased enormously since the index was originally instituted. The list of commodities represents a wide range, covering articles of home production and of foreign production, and of farm, mine, marine, factory, &c., origin.

In 1937 a further revision of the wholesale prices index was put in hand, but this work was completed only in time to permit the new series to appear in the statistical report on “Prices, &c.,” for 1937 which was published in August, 1939.

Except for the new base-period (which is 1926-30=1000) these indexes do not differ essentially from those of the previous series. The revision consisted mainly of adjustment of the weights in accordance with changed consumption, the elimination, as far as possible, of “double counting” (the inclusion of a commodity in its raw state and again in a processed condition), the adoption of some new items, and the omission of some others, previously included, which had proved unsatisfactory. A detailed account of the method of computation of the indexes is given in the statistical report referred to.

Indexes in the new series have been prepared for 1914, annually from 1926 onward, and monthly commencing with 1936.

WHOLESALE PRICES.—GENERAL INDEX NUMBERS.—BASE: 1926-30=1000.

Year.Index Number.Year.Index Number.Year.Index Number.
19147481,9309631,935937
19261,0531,9319021,936946
19271,0011,9328781,9371,021
19289941,9339041,9381,036
19299881,934909....

The wholesale prices index is purely a commodity index, no attempt having been made to cover the wholesale prices of services such as the supply of electric power, transportation, &c. The index relates only to commodities consumed in New Zealand, each item included in the make-up of the index being weighted by a factor representing production, plus imports, less exports (i.e., local consumption). The wholesale prices index numbers are compiled by the aggregate expenditure method.

The following table shows annual wholesale prices index numbers by groups.

WHOLESALE PRICES.—INDEX NUMBERS BY GROUPS.—BASE: 1926-30 = 1000.

Group.1914.1934.1935.1936.1937.1938.
1. Foodstuffs, &c., of vegetable origin—      
  A. Agricultural produce6427391,0238611,052915
  B. Fresh fruit and vegetables764676897801906926
  C. Milled agricultural products644757743770791783
  D. Other foods and groceries of vegetable origin6131,1261,1271,1101,1311,130
  A-D. Four subgroups combined6349561,0189791,0361,011
2. Textile manufactures535781780769810806
3. Wood and wood products5829359549971,0821,150
4. Animal products—      
  A. Meats9417838529189191,042
  B. Semi-manufactured animal products (not foods)8387886388411,135704
  C. Leather6769589619791,1531,139
  D. Other foods and groceries of animal origin785621734791850881
  A-D. Four subgroups combined843736807869924973
5. Metals and their products9191,0631,0561,0691,2491,296
6 Non-metallic minerals and their products—      
  A. Mineral oils1,1641,1071,1301,1591,2071,152
  B. Coals5399099349631,0371,061
  C. Other non-metallic minerals and their products6009999869731,0071,017
  A-C. Three; subgroups combined8211,0091,0281,0501,1061,094
7. Chemicals and manures954846840826833840
    All groups combined7489099379461,0211,036

WHOLESALE PRICES.—INDEX NUMBERS BY GLASSES.—BASE: 1926-30=1000.

Year.Consumers' Goods.Producers' Materials, &c.Imported CommoditiesLocally-produced Commodities.All Classes combined.
Class I: Foodstuffs.Class II: Non-Foods.Class III: Materials for Building and Construction.Class IV: Materials for other Industries.
Average 1926-301,0001,0001,0001,0001,0001,0001,000
1914766605792791772716748
19261,0131,0731,0601,0691,0721,0281,053
19279961,0011,0249991,0089931,001
19281,0129919749909851,007994
19291,0169799669819751,006988
1930963956976962959967963
1931837923954919938853902
1932783923924905933802878
1933801935987932986793904
1934824920990935977815909
1935915933992937980878937
19369179321,019950979901946
19379669781,1721,0351,0629661,021
19389929791,2151,0391,0729871,036

In the above table index numbers are given by classes for 1914, and from 1926 to 1938. The table also shows the separate index numbers for imported items and locally produced items included in the wholesale prices series. These index numbers should be taken for no more than they purport to represent—viz., the movement in wholesale prices of those commodities covered by the wholesale prices inquiry which belong to the respective classes. The figure for Class III, for instance, does not purport to show the movement in building costs, nor should that for imported items be confused with the index number of import prices.

Of the total base aggregate expenditure, Class I represented 27.1 per cent., Class II 19.2 per cent., Class III 11.9 per cent., and Class IV 41.8 per cent., while the imported items aggregated 57.7 per cent. of the total.

The “all classes” index fell in each successive year from 1926 to 1932, since when there has been an unbroken sequence of increases, the index having risen more than 150 points since 1932. The greatest increase during the six years (291 points) occurred in the “building materials” class.

The diagram on the preceding page shows clearly that it was only during the period 1928-30 that the indexes of prices of imported goods were appreciably below those for locally produced goods.

EXPORT PRICES.

For some years past index numbers have been compiled and published at monthly intervals, indicating the direction and extent of fluctuation in the level of prices of New Zealand produce exported. These index numbers are based on the declared values (in New Zealand currency) for export as recorded by the Customs Department.

Prior to 1932 each commodity included in the compilation was accorded an importance corresponding to the quantity of that commodity exported during the particular month or year under investigation. For example, the annual index number for the year 1931 indicated the relationship between the total value in that year of exports of items included in the index number and the value of the quantities of the various commodities exported in 1931 at the average prices ruling during the years 1909-13, the base period of the investigation. Thus the “weight” or importance of each item in the regimen of the index number varied according to fluctuations in the quantities exported from month to month and from year to year.

Movements in prices, however, are not distributed evenly over the whole field of commodities exported. As a consequence, material fluctuations were caused in the former monthly index numbers, which were due partly to price-movements, but partly also to fluctuations in the relative quantities of commodities exported from month to month.

In order to remedy this weakness in the index number, the system of compilation was modified in 1932; the “weight” allotted to each item included in the new series being the average quantity of that item exported during the previous five exporting seasons—i.e., years ended 30th June. In the revision of the export prices index numbers the opportunity was taken of revising the grouping of commodities somewhat in order to permit of a closer analysis of the distribution of price-movements among different classes of New Zealand products. A fuller description of the method now employed in compiling the index is given on page 579 of the 1933 issue of the Year-Book.

The revised index numbers are shown in the next table, compiled for each group on the base: 1909-13 = 1000.

EXPORT PRICES.—INDEX NUMBERS.—BASE: 1909-13 = 1000.

Calendar Year.Group I: Dairy-produce.Group II: Meat.Group III: Wool.Group IV: Other Pastoral Produce.Groups I-IV: All Pastoral and Dairy Produce.Group V: Agricultural Produce.Group VI: Timber.Group VII: Minerals.Groups I-VII: All Groups combined.
19291,4571,8271,7101,7031,6341,42423801,0781,623
19301,2061,7121,0031,2431,2791,26724471,0621,283
19319891,3016797679651,15521911,177984
19329341,1096256228701,10220731,162892
19338391,1656717558671,15721101,416896
19347671,5181,2738881,0891,20021801,5541,109
19359131,5768229671,0721,26021691,7051,102
19361,0461,5961,1071,2391,2281,32121481,7081,250
19371,0921,6511,7681,5351,4231,36524821,7921,440
19381,2101,7521,1769471,3401,39627521,8161,367

Export prices declined sharply in the later months of 1930, the annual average index number for that year (1283) representing a fall of 340 points as compared with the 1929 figure. This rapid downward movement in export prices continued during 1931 and 1932, the annual average figure for the latter year reaching the extremely low level of 892-10.8 per cent. below 1909-13 export prices. Each individual group shared in this collapse with the exception of the minerals group; while the index numbers for wool (625) and “other” pastoral produce (622) were considerably lower than those recorded for any of the other groups. Although the 1933 annual average index was only 4 points above the low figure recorded in 1932, a definite and sustained improvement in the monthly index numbers took place during the latter half of the year. This recovery was maintained during 1934 in a greater or less degree in every group with the exception of that for dairy-produce. In 1935 all groups showed appreciable increases, with the exception of wool (which fell 451 points) and timber. The upward movement was intensified during 1936 and 1937, the wool index having more than doubled, while the indexes for three other groups rose more than 300 points during the two years. The 1938 index for all-groups records the first fall (73 points) of any consequence since 1932, Groups III and IV being mainly responsible for this result.

As previously observed, the calendar year does not coincide at all closely with the farm-production year. This is especially significant in New Zealand, since the great bulk of export goods are farm-produce. For a number of purposes the next table giving annual average export prices index numbers for years ended 30th June will be more useful. As in the previous table, index numbers are based upon prices in New Zealand currency.

EXPORT PRICES.—INDEX NUMBERS (JUNE YEARS).—BASE: 1909-13 = 1000.

Year ended 30th June,Group I: Dairy-produce.Group II: Meat.Group III: Wool.Group IV: Other Pastoral Produce.Groups I-IV: All Pastoral and Dairy Produce.Group V: Agricultural Produce.Group VI: Timber.Group VII: Minerals.Groups I-VII: All Groups combined.
19301,3411,7681,1201,4711,3971,35324571,0641,397
19311,0291,4197269211,0351,21924411,0651,052
19329741,1896416719141,15821661,107934
19338571,0936215988311,15020781,375861
19348101,4151,2189111,0701,18321571,4851,089
19358061,5778148441,0141,22821651,6821,046
19369931,5731,0491,1371,1791,31120961,7321,205
19371,0541,6231,7051,4371,3791,36223341,7521,397
19381,1961,7251,2541,2571,3641,37826211,8051,386
19391,2121,6771,1048771,2911,38327431,8571,319

The recovery in wool prices during the 1933-34 selling season is reflected in an increase in the June-year index number for this group, the index number rising from 621 in 1933 to 1218 in 1934. The recession in wool values in 1934-35 caused a fall to 814 in the 1935 index; but during the two following years a remarkable recovery took place, the index rising by more than 100 per cent., to be followed by a heavy fall (451 points) in 1938, and a further fall of 150 points in 1939.

The dairy-produce index for the 1934-35 June year (806) is the lowest during the ten-yearly period under review; but an improvement in dairy-produce prices— particularly of butter—on the London market has since occurred, and the 1939 index is the highest recorded since 1930.

IMPORT PRICES.

The import prices index, like other series of New Zealand price index numbers, is compiled by the aggregate expenditure method, the weight allotted to each individual item in the regimen of the import prices series representing the average quantity of that commodity imported during the calendar years 1926 to 1930. Owing to the relative rapidity of the changes in the nature of import trade, a series of import prices index numbers tends to lose its representative virtue more speedily than is the case with most other series. The present series was continued back to 1926 only, since sufficient data uniformly comparable with that collected in respect of more recent years were not available beyond that year. While the export prices index is compiled for monthly as well as for annual periods, annual index numbers only have been compiled in the case of import prices.

In order to avoid any possible confusion between the import prices index number and the wholesale prices index number for imported commodities, it seems desirable to draw attention to the fact that the price quotations on which the import prices index is based are: (a) Declared values of commodities for import— i.e., prices in the exporting country plus 10 per cent. to cover freight, &c.; or (b) wholesale price quotations (plus allowance for freight, &c.) of suitable representative items in Great. Britain and other overseas countries in cases where no New Zealand data are available as to declared values. These price quotations are converted to a New-Zealand-currency basis, so that the index numbers will be comparable with other series.

The wholesale prices index number for imported commodities, which is based on wholesale price quotations in the four chief centres, has been substantially higher than the import prices index since 1929. Increases in Customs duties and in overhead charges and other expenses of marketing imported goods have contributed to this widening of the gap between import prices and wholesale prices of imported commodities. It is desirable to draw attention to the fact that over 200 items are included in the import prices index as compared with only 98 in the wholesale prices index for imported commodities.

Notwithstanding the comparatively large number and wide range of commodities covered by the import prices index the relatively high degree of accuracy in an export prices or a wholesale prices index cannot be hoped for in the case of import prices, index numbers of which are for this reason compiled on a three-figure base (100).

The import prices index has moved in fairly close sympathy with wholesale prices index numbers for similar groups of commodities in Great Britain. A gradual fall between 1926 and 1930 was followed by a sharp drop between 1930 and 1931. Since the import prices index number is expressed in New Zealand currency, the fall in overseas wholesale prices has been counteracted to a large extent in its effect on this index by the decline of New Zealand currency in relation to sterling.

Between 1926 and 1929 the per-unit purchasing-power of New Zealand's exports in terms of imported commodities rose considerably, the export prices index increasing by 5 per cent. during that period, while the import prices index fell by 14 per cent. This relatively favourable situation was reversed in 1930, a sharp drop in export prices being accompanied by a lesser fall in import prices.

Although import prices fell considerably between 1930 and 1933, the fall in export prices was even greater, so that the gap between the import prices index and the export prices index widened considerably during that period. In 1934 the import index fell a further two points, while the export index rose fourteen points, the purchasing-power of exports in terms of imports being much greater in 1934 than in any of the three years immediately preceding. In 1935 there was no movement in the export index and a fall of one point in the import index. In 1936 and 1937 the export index rose nine and thirteen points respectively and, despite a fall of eight points in 1938, is still appreciably above the import index.

The following table shows index numbers of import, export, wholesale, and retail prices on base 1926 = 100. Each series of index numbers is compiled on a New-Zealand-currency basis.

Year.Import Prices.Export Prices.Wholesale Prices.Retail Prices (All Groups).
Pastoral and Dairy Produce.All Groups.Imported Commodities.Locally produced Commodities.All Groups.
1926100100100100100100100
192794999994979599
192890110109929894100
19298610610591989499
193084838389949197
193177636487838690
193275565887788383
193378565892778679
193476717291798680
193575707291858983
193675808191889086
193779929499949791
1938788786100969894

Changes in the average level of prices from year to year in each series are indicated by the index numbers quoted above; while, again, the relative movement in prices as between one series and another is also correctly shown. For example, the average level of import prices in 1938 is shown to be in the ratio of 78: 100 of 1926 import prices as compared with an export price ratio of 86: 100 in relation to 1926.

EFFECT OF PRICE MOVEMENTS ON FARM EXPENDITURE.

Prices of a large selection of farm-products are included in the official wholesale and export prices index numbers. Many of the principal items of farm expenditure, however, are not covered by the wholesale prices index, which is purely a commodity index. A special index number is compiled in which such items as interest-payments, rates and taxes, wages, freight, and commission are included in addition to the material commodities which are bought for use in farm production. Statistics of prices of farm-implements, saddlery, harness, and sundry other commodities not covered by the wholesale prices inquiry are also obtained from merchants and manufacturers of farm machinery, and included in this index, so that practically the whole of the working - expenses of the average farm are represented. A full description of the method of compilation of this index number is contained in the 1932 issue of the Year-Book.

While the farm expenditure index indicates the effect of price movements on farm expenditure generally, it is not intended to apply to particular types of farming or to particular localities. Again, the weights used in compiling the index are fixed, the purpose of the index being to measure movements in costs of a standard regimen of commodities and services.

Indexes for the years 1929 to 1938 (on base 1914 = 1000) are given below. The general indexes of wholesale and retail prices, and the export prices index number for all pastoral and dairy produce combined, are also included on the same base year in order to facilitate comparisons of the movements in the farm expenditure index with movements in other significant prices index numbers.

Year.Farm Expenditure Index.Pastoral and Dairy Produce Export Prices Index.General Wholesale Prices Index.All Groups Retail Prices Index.
* Approximate. Recent changes in certain items are incapable of exact measurement.
19141,0001,0001,0001,000
19291,6361,4921,3211,599
19301,6281,1681,2871,562
19311,4908811,2061,447
19321250*7951,1741,334
19331150*7921,2091,266
19341150*9951,2151,287
19351150*9791,2531,331
19361250*1,1211,2651,376
19371450*1,3001,3651,470
19381500*1,2241,3851,514

The peak year for the farm expenditure and wholesale prices index numbers was the year 1920; for retail prices, the year 1921; and for export prices, the year 1925. Although the farm expenditure index had a relatively low peak-level (1661) this index did not fall to the same extent as the other indexes, the 1933, 1934, and 1935 figure (1150) being still above the 1914 level of prices—in marked contrast to the export prices index number for pastoral and dairy produce, which was, in 1933, 20.8 per cent. below the corresponding figure for the year 1914. The export prices index made a marked recovery during 1934, almost reaching the 1914 level. The fall of sixteen points in 1935 was due to considerably lower prices for wool than those riding in 1934, particularly in the early months of that year. The 1937 index, showing an increase of 179 points over 1936 and of 321 points over 1935, was the highest since 1929, but the 1938 index exhibits a fall of 76 points.

It should be observed that comparison of the movements in the farm expenditure index with corresponding movements in export, wholesale, or retail prices indexes affords only a broad indication of the relativity between movements in prices of goods and services purchased by the farmer and in the prices of farm-products. A closer comparison of the movements in prices of farm-products and in the farm expenditure index is afforded by the gross farming income and farm producers' prices index numbers (on an “at, the farm-gate” basis) published in the table on page 403 of this volume.

SHARE PRICES.

The fluctuations in the market value of shares listed on the Stock Exchange form a very sensitive indication of changes in business conditions generally, and an index number of ordinary share prices is thus a valuable complement to other business indicators—such as trade and production statistics, wholesale and export prices index numbers, &c. Index numbers of share prices, based on the market prices of forty-seven leading shares on the New Zealand Stock Exchanges, are compiled by the Census and Statistics Department. The selection of the shares for inclusion in the index number was made with the object of reflecting New Zealand economic conditions; and, consequently, only companies whose business is conducted largely or wholly in New Zealand are included. Again, only ordinary shares—the return on which varies directly with the profits of the company in which shares are taken—are considered; preference shares and other investments normally bearing a fixed return being excluded.

The market prices on which the index numbers are based have been extracted from Stock Exchange lists of individual exchanges prior to September, 1929, and from the list of share prices included in the Stock Exchange Gazette and its successor, the Official Record of the Stock Exchanges of New Zealand, since that date. The prices quoted relate to the last trading day in each month; so that the “monthly” index numbers compiled from these data relate to that day only, while the annual averages represent the averages of the monthly index numbers. The index numbers of New Zealand share prices give an indication of changes in share values as compared with the base year. In particular, they are intended to indicate the changes in value of a parcel of representative ordinary shares as compared with their 1926 value. The actual base adopted is the average price ruling during the year 1926 = 1000.

Following are annual index numbers for various groups and all groups combined.

SHARE PRICES INDEX NUMBERS , INDIVIDUAL GROUPS.—BASE: 1926 = 1000.

Group.1932.1933.1934.1935.1936.1937.1938.
Banks677742779776721734675
Insurance9191,1901,4501,5791,4711,5061,403
Loan and agency470545660583601667557
Frozen meat701835914884829796737
Woollens7789231,1591,2721,2321,1931,046
Gas9691,0531,2351,3081,1891,0741,002
Timber348411547623709662630
Minerals7007538831,0771,0751,016912
Miscellaneous6818481,0541,1931,1761,2241,154
All groups combined7038229601,026986993916

In the following table index numbers of market prices of ordinary shares on the last trading-day of each month are shown. This index indicates the average movement in prices of ordinary shares in forty-seven companies operating in New Zealand; each individual share and group of shares included being “weighted” according to its importance in the investment market of the Dominion.

SHARE PRICES INDEX NUMBERS , ALL GROUPS COMBINED.—BASE: 1926 = 1000.

Month.1932.1933.1934.1935.1936.1937.1938.1939.
January7157229251,0301,032996958871
February6807309171,0131,027993946866
March6717539231,009984995944855
April6667739341,0391,007993936851
May6697959641,0311,0031,009928875
June6748219381,036985999917859
July7088499371,0499791,003933870
August7388629541,0319621,013923855
September7648859871,017954992885..
October..7458791,0071,018961988893
November7258931,0111,025966964870..
December6839001,0201,020972963859..
Annual average7038229601,026986993916..

International comparisons of price indexes can be made only with considerable caution; but, in the case of the indexes of share prices selected for inclusion in the table following, many of the difficulties attendant on such comparisons are lessened by the facts that all series are compiled on the same base year (1926) and that the method of compilation of the indexes is substantially comparable in each case. Naturally enough, the indexes for England, United States, and Canada are based on a much wider selection of shares than the New Zealand or the Australian figures; and, moreover, the volume of transactions on the exchanges in these countries is such that a finer market price can be arrived at than is possible in the Dominion.

The following table shows the highest and lowest monthly indexes for each year from 1929 to 1938, and the indexes for the month of May, 1939:—

Year.New Zealand (Official).Australia* (Melbourne Stock Exchange Record).England (Bankers' Magazine).Canada (Official).United States (Standard Statistics Company).
* May, 1926 = 100.
1929—Highest109110124209225
Lowest10192110157151
1930—Highest9685111167181
Lowest835489103109
1931—Highest786590112122
Lowest6950676558
1932—Highest7681736558
Lowest6762594334
1933—Highest9095858780
Lowest7280724943
1934—Highest102106889181
Lowest9296848167
1935—Highest1051169010796
Lowest101102838464
1936—Highest103140104132124
Lowest9511693113100
1937—Highest101146104147130
Lowest961288610382
1938—Highest961328711095
Lowest86118789871
1939—May88129779983

While the index numbers in the table just quoted show the movement in ordinary share prices in each country covered, comparisons of recent index numbers for one country with those for another country should not be made without taking into account the relative exchange values of the various local currencies. For example, the index numbers quoted for New Zealand express the movement in share prices in New Zealand currency, the exchange value of which has depreciated since the beginning of 1930—a factor which should be borne in mind when comparing New Zealand indexes with figures for countries with currencies of higher or lower exchange value than the New Zealand pound. The following table is interesting in this connection, in that it shows the relative values in May, 1939, of an investment of £100 sterling made in 1926 in representative shares on the different stock exchanges.

Country.Month of May, 1939.
Index Number of Share Prices (1926 = 100).Average Rate of Exchange on London.Present Value of Shares bought In 1926 for £100 Sterling.
In Local Currency.In Sterling.
* Per £100 sterling.
    £
England77£7777 
Canada99$5.010$43787
Australia129£125.25*£129103
New Zealand88£125*£8870
United States83$4.970$40481

Chapter 37. SECTION XXXVII.—WAGE-RATES AND HOURS OF LABOUR.

INTRODUCTORY.

THE material used in the compilation of statistics of wage-rates in New Zealand is, with certain exceptions, taken from the awards of the Arbitration Court. It is recognized that the rates specified in such awards are minimum rates, and that wages may in some cases be above the prescribed minima, so that a rise or fall in the award rates does not necessarily involve an immediate change in the wage-rates of those workers who are being paid more than these rates. Nevertheless, for the purpose of tracing the movement in wage-rates over any considerable space of time, the award rates form a more reliable basis than any information which could be collected directly from employers or trade-union secretaries as to the ruling or predominant rates in any industry. As, prior to the passing of the Agricultural Workers Act, 1936, there were no fixed rates of wages for farm employees, these were reported by Inspectors of Factories attached to the Labour Department.

The Industrial Conciliation and Arbitration Amendment Act, 1932, contained, inter alia, a provision that, in the event of the parties to an industrial dispute being unable to come to agreement before the Conciliation Council, the award lapsed. In cases where district awards have lapsed under this provision figures have been interpolated, based on fluctuations in corresponding rates in other districts. The Industrial Conciliation and Arbitration Amendment Act, 1936, restored the full powers of the Court (see next section, Labour Laws and Allied Legislation).

The award rates for the four principal districts—Northern, Wellington, Canterbury, and Otago and Southland—are in general taken as representative of the ruling wages throughout the Dominion. For such industries as are carried on in the towns these rates are quite satisfactory; in cases where the important centre of an industry is situated outside the geographical boundaries of the four principal districts the award rates for that centre are used. For instance, the rates used for coal-mining and sawmilling in the Canterbury District are those prescribed by the awards for the Westland Industrial District.

The system of compilation of wage-rates index numbers was revised in 1936, and the index numbers appearing in the following pages are on the same base as in the case of the retail- and wholesale-prices indexes—viz., the average of the five years 1926-30 = 1000. The industrial grouping also underwent some modification, consisting principally of the dispersal of the old groups “Other Manufactures” and “Miscellaneous” amongst existing groups, and the introduction of three new groups (“Provision of Power, Heat, and Light”; “Working in Stone, Clay, Glass, and Chemicals”; and “Working in Skins, Leather, &c.”); while the old group “Textiles and Weaving” was combined with “Clothing and Footwear.”

WAGE-RATES OF ADULT MALE WORKERS.

METHOD OF WEIGHTING.

The weights used in the computation of the indexes were derived mainly from three sources—viz., (1) the occupations statistics of the 1926 census, (2) the annual factory production statistics, and (3) the membership rolls of trade-unions registered under the Arbitration Act. Weights have been allocated to the individual occupations included in these computations, and although in some few cases absolute accuracy in weighting could not be hoped for, the data were sufficiently accurate for the purpose in view, since minor differences in weighting do not affect the accuracy of the index number. Occupations are grouped into industries, with an appropriate weight for each occupation and each industry; while industries are grouped into fourteen principal industrial groups, these also being given appropriate weights. The weights for the individual occupations and industries have been derived from the census or the factory production statistics; while the industrial-group weighting has been taken partly from these sources and partly from the membership of trade-unions registered under the Arbitration Act. In the case of workers on the land, use was also made of information obtained by means of the annual collections of agricultural and pastoral statistics. Full details of weighting appeared in the “Statistical Report on Prices, Wage-rates, &c.” for the year 1935.

NOMINAL WEEKLY WAGE-RATES INDEX NUMBERS.

The following table shows the index numbers of nominal weekly wage-rates of males for each industrial group and all groups combined. The base is the Dominion weighted average wage-rate for all groups combined, 1926-30 = 1000.

Industrial Group.1914.1929.1930.1931.1932.1933.1934.1935.1936.1937.1938.
Provision of—           
  Food, drink, &c.6651,1131,1141,0549959639679911,0681,1651,248
  Clothing, footwear, and textiles6071,0271,0279699239219249279791,0351,063
  Building and construction6541,0311,0319699168968979109791,0511,122
  Power, heat, and light6561,0971,0961,0389909739739751,0471,1071,157
  Transport by water6541,1061,1351,0731,0259919981,0451,1051,1901,209
  Transport by land6171,0571,0579889268999209401,0081,0701,093
  Accommodation, meals, and personal service6609759769178688288248499281,0171,038
Working in or on—           
  Wood, wicker, seagrass, and fibre6341,0891,0871,0069579138999161,0141,0971,151
  Metal7171,1141,1141,0509879389369521,0481,1251,209
  Stone, clay, glass, and chemicals5841,0351,0369739359118938869801,0591,112
  Paper, printing, &c.7571,1891,1891,1261,0581,0261,0191,0511,1301,1931,247
  Skins, leather, &c.6001,0481,0499809389199058969701,0541,090
  Mines and quarries6641,0401,0409849379289389651,0101,0761,117
  The land (forming pursuits)519822809701550516528541694824849
  All groups combined6231,0171,0179428648338398589501,0361,081

NOTE.—The index numbers in this table are comparable both vertically and horizontally. Where board and (or) lodging is a usual perquisite attached to any occupation, an allowance estimated to cover the value of such has been added to the money wage-rate.

Prior to 1938 the highest index numbers were recorded in the group, “paper, printing, &c.,” due, no doubt, to the preponderance of highly skilled tradesmen, but during that year higher rates of wages were awarded to a number of workers in the “food, drink, &c.,” group (largely due to the fact that they work more than forty hours per week), with the result that the index for this group is now the highest.

The lowest index for 1938 is that for the group “working on the land” (849). followed by “accommodation, meals, and personal service” (1038). In the latter group, as also in the “transport by water” and “working on the land” groups, the estimated value of board and lodging is, where applicable, added to the money wage-rate in order to make a legitimate comparison with other industries. In the case of waterside workers (an important subgroup of the “water transport” group) this allowance is not, of course, applicable.

Wage-rates rose steadily and in fairly regular gradations from year to year from 1914 to 1918. When the provisions of the War Legislation and Statute Law Amendment Act, 1918, providing for the regulation of wages in accordance with movements in the cost of living came into effect, the lag between prices and wage-rates was partially eliminated, and consequently sharp increases took place. The effect of the post-war slump subsequently became apparent, and decreases were then recorded. Following the recovery from the slump, the index number rose year by year until in 1929 it reached 1017, the highest level recorded prior to the year 1937. A general order of the Arbitration Court, dated 29th May, 1931, reduced all rates of pay and allowances prescribed by awards and industrial agreements by 10 per cent. The rates of remuneration of apprentices were exempted from this order; and, in addition, flax-mill employees in the Wellington Industrial District, who had already suffered a substantial cut in wages, were exempted. The average rates of pay of agricultural and pastoral workers, although not subject to the Court's order, were considerably below those ruling during previous years. As a consequence of these reductions, a substantial fall occurred in the 1931 annual average index numbers for all groups. This reduction in wage-rates, being on a strictly percentage basis, caused a levelling-up in the group indexes, the relatively higher-paid groups of workers suffering the largest reduction in rates.

The Industrial Conciliation and Arbitration Amendment Act, 1932, made provision for the review of existing awards. During 1932 and 1933 the rates of pay prescribed in several awards were reduced in new awards; and, again, wage-rates of two classes of labour not covered by awards (railway employees and permanent farm hands) suffered further reductions—in 1932 in the former case and in 1932 and 1933 in the latter case. Also in most instances the ruling rates of pay, in cases where previously existing awards had been cancelled, were below the former award rates. Consequently the general index number of wage-rates fell substantially, the 1933 index (833, on the base: 1926-30 = 1000) being 3.6 per cent. below the 1932 figure, and 18.1 per cent. below the peak level of 1017 recorded in 1929 and 1930. The 1933 index is the lowest annual average index since 1919; but slight increases were recorded in 1934 and 1935.

Complete restoration to the pre-depression level of award (and other) rates of wages and salaries was effected by the Finance Act, 1936, which was passed early in August. A further measure of importance was the Agricultural Workers Act passed in September, 1936. Both these Acts are discussed in the next section (Labour Laws and Allied Legislation). The effect of the restoration in wages cuts and the provision, for the first time in the history of the Dominion, of standard rates of pay in respect of certain classes of permanent farm labour was reflected in the index numbers of wage-rates for 1936, that for all-groups showing an increase of 92 points, or 10.7 per cent., over that for 1935. The full effect of the provisions referred to was not, however, evident until the following year, the all-groups index for which registered a further advance of 86 points or 9.1 per cent.

The computation of separate indexes for the four principal industrial districts has now been discontinued, since they have lost a good deal of their original significance with the increasing tendency towards Dominion awards.

EFFECTIVE WEEKLY WAGE-BATES.

The index numbers quoted in the foregoing discussion relate to nominal wage-rates — that is, they are based on actual money rates without any allowance being made for changes in prices' during the period under review. It is obvious that this factor is of considerable importance; for a rise in wage-rates may be offset by a fall in the purchasing-power of the monetary unit, while, on the other hand, a fall in money wages may be offset by a rise in the purchasing-power of money. Changes in the index numbers of retail prices are inversely proportional to changes in the purchasing-power of the pound; and index numbers of effective (or “real”) wage-rates can be arrived at by dividing the index numbers for nominal wage-rates by the corresponding index numbers for retail prices covering all groups of domestic expenditure.

The following table compares nominal and effective weekly wage-rates of adult male and female workers in each of the last ten years. The base of the index numbers is in each case the average of the five years 1926-30 = 1000:—

Year.Retail Prices (All Groups).Nominal Wage-rates.Effective Wage-rates.
Males.Females.Males.Females.
19291,0041,0171,0101,0131,006
19309811,0171,0101,0371,030
19319069429521,0401,051
19328388649051,0311,080
19337958338871,0481,116
19348088398871,0381,098
19358378589031,0251,079
19368649509611,1001,112
19379231,0361,0151,1221,100
19389511,0811,0551,1371,109

In considering these figures, it should not be overlooked that the index number of effective wage-rates (in common, of course, with that of nominal wage-rates) is applicable only to wage-earners in full-time employment at award rates of pay, and not to the average of all wage-earners, inclusive of those unemployed or on short time.

It should be noted that under the employment-promotion legislation a wages-tax (1d. for every 6s. 8d. of wages from August, 1931, to April, 1932; 1d. for every 1s. 8d. from May, 1932, to September, 1934; 1d. for every 2s. from October, 1934, to September, 1935; and 1d. for every 2s. 6d. from October, 1935, to March, 1939) was in operation. Under the present social security legislation the wage-tax is 1d. for every 1s. 8d. of wages. These taxes have not been taken into account in the compilation of index numbers of effective wage-rates.

MOVEMENT IN INDIVIDUAL GROUPS.

The index numbers in the preceding tables being on a Dominion all-groups base, comparisons between movements in individual groups cannot be readily made; an increase in a group in which the index numbers are consistently low being considerably smaller numerically than would be an increase of the same percentage in one where the index numbers are higher. The following table brings out the movements in the various groups more clearly. The respective bases are the Dominion average weekly wage-rates for each industrial group 1926-30 = 1000.

NOMINAL WEEKLY WAGE-RATES INDEX NUMBERS (ADULT MALES).

Industrial Group.1926-30.1914.1934.1935.1936.1937.1938.
Provision of—       
  Food, drink, &c.1,0006018758969661,0531,128
  Clothing, footwear, and textiles1,0005969079109611,0151,043
  Building and construction1,0006338748879541,0241,093
  Power, heat, and light1,0006008898919571,0111,057
  Transport by water1,0005929039451,0001,0761,093
  Transport by land1,0005888778969611,0191,041
  Accommodation, meals, and personal service1,0006808498759561,0471,068
Working in or on—       
  Wood, wicker, seagrass, and fibre1,0005888368519421,0181,068
  Metal1,0006478458609461,0151,091
  Stone, clay, glass, and chemicals1,0005768738669591,0351,087
  Paper, printing, &c.1,0006378578849501,0021,048
  Skins, leather, &c.1,0005748678589341,0081,042
  Mines and quarries1,0006379019279701,0331,071
  The land (farming pursuits)1,0006756877059031,0711,104
  All groups combined1,0006238398589501,0361,081

Care must be exercised in drawing inferences from this table, for, while horizontal comparisons are quite valid, the vertical comparison between the various groups is valid only in so far as it shows in which groups the greater or the smaller increases have occurred since the base period. For example, the 1938 index for the “paper, printing, &c.,” group is 23 points below that for “mines and quarries,” the reason being that wages of workers in the former group have increased in a lesser degree than have those in the latter, although the actual rates of wages are considerably higher, as may be seen by reference to the previous table on the all-groups base.

INDEXES OF HOURLY WAGE-RATES (ADULT MALES).

Legislative reductions in weekly hours of labour during recent years rendered it desirable that indexes of hourly wage-rates should be made available. A series of index numbers of hourly wage-rates was computed during 1938, and was published in the 1939 issue of the Year-Book. Prior to this special series of indexes being computed, an approximation was attempted by applying to the indexes of weekly wage-rates the indexes of weekly hours of labour.

The indexes given hereunder show clearly the effect of the shorter working-hours prescribed mainly by the 1936 legislation. It will be noticed that these indexes (as is also the case in respect of the indexes of weekly hours of labour) cover thirteen only out of the fourteen industrial groups commonly adopted, since working-hours on farms (which would be essential to the fourteenth group) are incapable of satisfactory statistical treatment. The base is the Dominion weighted average hourly wage-rate for all groups combined, 1926-30 = 1000.

Industrial Group.1914.1934.1935.1936.1937.1938.
Provision of—      
Food, drink, &c.5568939111,0021,1321,215
Clothing, footwear, and textiles5528728759531,0731,105
Building and construction6138578739801,1121,192
Power, heat, and light6009029131,0141,1541,218
Transport by water5939269701,0541,2041,222
Transport by land5478398569481,0891,114
Accommodation, meals, and personal service4437327578911,0551,077
Working in or on—      
Wood, wicker, seagrass, and fibre5778438519821,1551,216
Metal6559499451,0511,1971,285
Stone, clay, glass, and chemicals5298148149331,1211,177
Paper, printing, &c.7231,0141,0461,1291,2301,325
Skins, leather, &c.5278048019111,0701,137
Mines and quarries6118939221,0081,1411,185
All groups combined5878788949951,1381,195

The same table is now given with a different base—viz., the Dominion weighted average hourly wage-rate for each group individually, 1926-30 = 1000.

Industrial Group.1929-30.1914.1934.1935.1936.1937.1938.
Provision of—      
  Food, drink, &c.1,0005428718889781,1041,185
  Clothing, footwear, and textiles1,0005749079119921,1171,150
  Building and construction1,0006308818981,0081,1431,226
  Power, heat, and light1,0005978929031,0021,1401,204
  Transport by water1,000528799211,0001,1431,160
  Transport by land1,0005788869051,0021,1511,177
  Accommodation, meals, and personal service1,0005138508791,0341,2241,250
Working in or on—       
  Wood, wicker, seagrass, and fibre1,0005788458539841,1581,219
  Metal1,0006128878829811,1181,200
  Stone, clay, glass, and chemicals1,0005778758751,0021,2051,264
  Paper, printing, &c.1,0006158638919601,0471,128
  Skins, leather, &c.1,0005718728689871,1601,233
  Mines and quarries1,0006189049341,0211,1561,200
    All groups combined1,0005878788949951,1381,195

WAGE-RATES OF ADULT FEMALE WORKERS.

Index numbers showing movements in wage-rates of women workers are compiled, using the award rates of the Arbitration Court as representative of the ruling rates of wages. A much smaller list of occupations is used than is the case in computing index numbers of wage-movements for male workers. Although only fifteen occupations are taken into consideration in the case of women workers, these occupations cover a large proportion of the total women in industry—more than sufficient to be a representative sample for measuring movements in wages. The weights used have been computed from data as to occupations from the 1926 census results.

The table following shows index numbers for women divided into the principal industries in which women workers are engaged. It should be remembered that domestic servants (numerically a very important branch of women workers) are not represented in the compilation of these indexes.

The highest index numbers are recorded in the “accommodation, meals, and personal service” group. The comparatively high figure for this industry is, no doubt, accounted for by the fact that board and lodging is a usual perquisite of hotel workers, while meals are usually provided for restaurant employees. The value of these additions has been added to the money wage-rates in this industry. Women, in general, receive lower money wages than men. so that the addition of board and lodging has the effect of raising wage-rates for women in a much greater proportion than the addition of the same perquisite does in the case of men. Indeed, wages for men in this group are low as compared with most other industries.

In the table following, the base is the Dominion all-groups weighted average of weekly wage-rates, 1926-30 = 1000.

NOMINAL WEEKLY WAGE-RATES INDEX NUMBERS (ADULT FEMALES).

Industrial Group.1914.1934.1935.1936.1937.1938.
Provision of—      
  Food, drink, &c.390767767809853869
  Clothing, footwear, and textiles534835851893932977
  Accommodation, meals, and personal service8361,0581,0741,1761,2631,294
Working in paper, printing, &c.4878728929791,0551,095
    All groups combined6028879039611,0151,055

The all-groups index for 1938 is 4.5 per cent. above the previous peak level recorded in 1929 and 1930 (1010), while the individual groups range from 1.9 to 4.8 per cent. higher.

WAGE-RATES OF JUVENILE WORKERS.

During 1936, the compilation of indexes of wage-rates of juveniles was undertaken for the first time, and the results appeared in the introductory notes to the 1935 and 1936 issues of the annual Statistical Report on Prices, Wage-rates, &c.

Owing to the fact that a number of industries utilize juvenile labour only to a limited extent, or not at all, it has not been possible to cover a very wide field, but thirty-two occupations representing twelve out of the fourteen industrial groups are included in the case of juvenile males and four occupations, representing three industrial groups in the case of juvenile females.

Wherever possible, the weekly wage-rate adopted in the compilation of the indexes is that provided for a worker having attained the age of eighteen years or having completed three years' service, according to the terms of the award.

In the table which follows the base is, in each case, the Dominion all-groups weighted average of weekly wage-rates, 1926-30 = 1000.

NOMINAL WEEKLY WAGE-RATES INDEX NUMBERS (JUVENILE WORKERS).

Industrial Group.1914.1934.1935.1936.1937.1938.
* No provision made in awards for juvenile females.
Juvenile Males.
Provision of—      
Food and drink6651,0479861,0611,1871,241
Clothing, footwear, and textiles5447717638749901,010
Building and construction5928748509331,0391,039
Transport by land6099729511,0201,0951,112
Accommodation, meals, and personal service5629038921,0061,1221,124
Working in or on—      
Wood, wicker, seagrass, &c.5547637658709901,087
Metal4878488309821,1561,189
Stone, clay, glass, and chemicals5119359419961,2541,308
Paper, printing, &c.609783777876974974
Skins, leather, &c.7468348489391,0531,197
Mines and quarries1,1421,6921,6921,79320042028
The land (fanning pursuits)6806656849881,1341,189
All industrial groups6198138079861,1241,164
Juvenile Females.
Provision of—      
Food and drink5121,0341,0341,1241,2101,248
Clothing, footwear, and textiles6408458451,0441,2401,287
Working in paper, printing, &c...1,0851,1111,2071,3021,364
All industrial groups6169079101,0781,2481,289

It will be seen that the fluctuations in the all-groups indexes for juvenile males differ appreciably from the corresponding figures for adult males given previously, this being largely due to the influence of movements in farm wages. which have a weight of approximately 36 per cent. of the total in the case of juveniles, as against 23 per cent. in the case of adults.

THE BASIC WAGE.

A general order fixing basic rates of wages for adult male and female workers was issued by the Arbitration Court on 2nd November, 1936. The rates are fixed at £3 16s. for adult male workers and at £1 16s. for adult female workers. The basic wage applies to all workers twenty-one years of age or over (excepting casual workers and those working under apprenticeship contracts), the conditions of whose employment are fixed by any award or industrial agreement. The subject is treated in greater detail in the next section (Labour Laws and Allied Legislation).

AVERAGE RATES OF WAGES.

The following table shows the unweighted averages of award rates of wages for the four principal districts. In cases where awards were allowed to lapse under the provisions of the Industrial Conciliation and Arbitration Amendment Act, 1932, the rates of wages ruling during the period an award was not in operation are quoted. The rates shown throughout this table are money rates, notes regarding customary perquisites (where such obtain) being given in a separate column.

AVERAGE MINIMUM WEEKLY WAGE-RATES.

Occupation.Average Wage-rates (Four Principal Districts).At 31st March, 1939.
At 31st March,Perquisites.Over-time Rates.
1914.1935.1936.1937.1938.1939.

* Wage-rates of shearers and shed hands are adjusted annually on a sliding scale (vide p. 835).

* Not available.

Adult Males.
 s.d.s.d.s.d.s.d.s.d.s.d.  
Bakers—Journeymen550889882107610761150..(f)
Labourers480745739878878950..(f)
Butchers—First shopmen726104110581161111891232..(h)
Second shopmen626940950105010761108..(h)
Butter-factory employees— Churning and buttermaking—              
General hands526727705810900900..(f)
Flour-milling—Kilnmen480865865960994994..(g)
Assistant smuttermen480792792880914914..(g)
Rollermen560900900100010341034..(g)
Meat-freezing—              
Slaughtermen(per 100 sheep)276336350400450450..(f)
General hands540799871102811381138..(f)
Meat-preserving—              
Boners620909954121013201320..(f)
Meat - preservers — Second men596826844102811001100..(f)
Sausage - casing making— General hands5888268910106411741174..(f)
Aerated-waters and cordial making—              
Cordial-makers5898398399299529610..(f)
Bottle-washers450748748829870883..(f)
Brewing—Labourers477758820850869945..(f)
Tailors—Journeymen5398608859569561012..(g)
Factory hands550808808876876926..(h)
Boot operatives5267997998811918918..(f)
Woollen-mills— Spinners5108458459399391034..(g)
General hands466745745826826934..(g)
Building and construction—              
Bricklayers685931941104611001150..(f)
Carpenters643880918101811261126..(f)
Joiners (outdoor work)643880918101811261126..(f)
Plasterers679913908104411211147..(f)
Plumbers (registered)66089391399111001100..(f)
Builders' labourers526743771826934934..(f)
Shipping and cargo-working— Assistant stewards, first class258602602667724724(a)(i)
Assistant stewards, second class18857115711643700700(a)(i)
Chief cooks6089110911010171061010610(a)(i)
Second cooks3747417418211882882(a)(i)
A.B. seamen374655655840840840(a)(j)
Ordinary seamen, first class280454454559559559(a)(j)
Waterside workers—Ordinary cargo524954954106810681068..(f)
Railways—              
Engine - drivers (average grade 1 and grade 2)7509561028112412001200.. 
Firemen (average grade 1 and grade 2)60080986109451021110211....
Guards (average grade 1 and grade 2)6309371008110011391139....
Tramways—Motormen5369019249699791013..(h)
Conductors477850873913921957..(h)
Hotel workers—Chefs900870946102010701120(b)(f)
Waiters311489526570600650(b)(f)
Sawmilling, bush—              
Engine-drivers, first class540868868103511001100..(f)
Sawyers530865883106311261126..(f)
Tailers-out439763782933968968..(f)
Yardmen5588310860100911001100..(f)
General hands510729748873950950..(f)
Boatbuilding—Shipwrights628880936104610461266..(g)
Metal-works, &c.—              
Blacksmiths, floormen6178238811100010001100..(f)
Boilermaking—Journeymen6288238599929921100..(f)
Iron and brass moulders6478238811100010001100..(f)
Tinsmiths—Journeymen6288568629909901100..(f)
Engineering—              
Fitters, &c.6478238811100010001100..(f)
Electrical workers611084388099410491105..(f)
Motor mechanics6411844844100010001100..(g)
Mineral and stone workers—              
Brickmakers5311913923104610681084..(g)
General hands4697737838910934950..(g)
Skin and leather workers—              
Curriers5808919081031110501050..(f)
General hands496746750859900900..(f)
Mining (coal)              
Surface—Tippers537733781893913913..(g)
Labourers5437337511864878878..(g)
Engine - drivers, first class6769901015115311531153..(g)
Miners on day wages633891898101610421042..(g)
Truckers5511802851958976976..(g)
Mining (gold)—              
Miners in rises or winzes with machines64688689294510131013..(g)
Quarrymen52876118011885942942..(f)
Agricultural and pastoral workers—              
General farm hands (agricultural)2642011263410450450..(c)
Threshing-mill hands600840880114012201280.. 
Ploughmen304263358463463463(c)..
* Shearers (per 100 sheep shorn)200226196270340286(d)..
Shepherds312295376526526526(c)..
* Wool-pressers3005504608001010846(d)..
Dairy-farm hands230213263426450526(c)..
Miscellaneous—              
Soft-goods assistants5508528639509501026..(h)
Grocers' assistants5008478499509501026..(g)
Warehouse storemen489729786850900900..(f)
Adult Females.
Biscuit and confectionery factory workers200397396440440490..(g)
Tailoresses (factory)—Journey-women276420420450450500..(h)
Boot operatives — Journey-women27644044050050105010..(f)
Woollen-mill workers250406406450450500..(g)
Hotel workers—              
Cooks295423460496570580(b)(f)
Housemaids172279300326340366(b)(f)
Waitresses225279300326340366(b)(f)
Restaurant workers—              
Cooks350683683736736760(e)(k)
Waitresses237300300350350376(e)(l)
Pantry maids218300300350350376(e)(l)
Printing workers*..459475560570586..(h)
Miscellaneous — Softgoods assistants276468475526526576..(h)
Juvenile Males.              
Baker's apprentice — After three years' service276552540600600650..(f)
Butcher's assistant—Eighteen years of age30103811389445458495..(h)
Butter and cheese factory— Youth, eighteen years of age300404436450526526..(f)
Flour-mill—Youth, after three years' service27044104410492500500..(g)
Meat freezing and preserving —Youth, eighteen years of age256442393550550550..(f)
Aerated - water and cordial manufacture—Youth, eighteen years of age2504014014464511467..(f)
Tailoring, &c.—Apprentice, after three years' service192363355400400400..(g)
Boot and shoe factory—Apprentice, after three years' service250277270400400400..(f)
Woollen-mill—Youth, eighteen years of age226364364404404468..(g)
Bricklayer's apprentice—After three years' service242386378426426426..(f)
Carpenter's apprentice—After three years' service246346339432432432..(f)
Plasterer's apprentice—After three years' service240367359426426426..(f)
Plumber's apprentice—After three years' service195346333400400400..(f)
Sawmill — Youth, eighteen years of age256276284418418489..(f)
Engineering — Apprentice, after three years' service200346395476476500..(f)
Brick, tile, pottery, and clay works — Youth, eighteen years of age210383393463541535..(g)
Tannery — Youth, eighteen years of age334360360428513513..(f)
Coal-mining—Trucker, eighteen years of age46567106710794829829..(g)
Agriculture and dairying— Youth, eighteen years of age*..*....*276290310(c)..
Soft-goods assistant—After three years' service200300300422422450..(h)
Grocer's assistant—After three years' service2503411333413413426..(g)
Juvenile Females.              
Biscuit and confectionery—              
Factory assistant, after three years' service160334326400400416..(g)
Boot and shoe factory—Assistant, after three years' service190250250400400400..(f)
Woollen-mill worker — After three years' service226364364404404410..(g)
Tailoring factory — Improver, after three years' service192363355400400430..(h)
Printing trade—Worker, after three years' service*..350361420430446..(h)

Assessed value of perquisites:—

  1. Board and lodging, 28s. per week.

  2. Board and lodging, 30s. per week.

  3. Board and lodging, 20s. per week.

  4. Rations, 4s. per day.

  5. Meals, 11s. per week.

    Overtime rates:—

  6. First four hours overtime each day, at rate and a half; thereafter double rates.

  7. First three hours overtime each day, at rate and a half; thereafter double rates.

  8. All overtime at rate and a half.

  9. 2s. 11d. per hour for ratings whose wages are £16 16s. per month or more; 2s. 8d. per hour for other ratings.

  10. Overtime, 3s. 2d. per hour.

  11. Overtime, 2s. 9d. per hour for first four hours; 3s. 8d. per hour thereafter.

  12. Overtime, 1s. 9d. per hour for first four hours; 2s. 4d. per hour thereafter.

The weekly wage-rates published above are, with certain exceptions, minimum rates of pay as prescribed in awards of the Arbitration Court. The Agricultural Workers Act (September, 1936), inter alia, fixes minimum wage-rates of dairy-farm employees. The rates of pay for various classes of workers prescribed by the Act, together with subsequent amendments, are shown in the next section (pp. 831-833). The operation of the Act has since been extended to certain other classes of farm workers (see page 833). The rates of wages quoted for railway employees are also actual ruling rates, and not award minima.

Award rates of wages, which suffered a cut of 10 per cent. in June, 1931, were restored to the pre-existing level as from 1st July, 1936; and similar provision was made in respect of workers not covered by awards (see next section).

HOURS OF LABOUR.

The following table shows index numbers of the number of hours constituting a full week's work in the various industrial groups for 1914 and for each year from 1934 to 1938. The material from which the index numbers have been compiled has been taken from the awards of the Arbitration Court in most cases; but where hours are not prescribed in the awards reference has been made to the Factories Act and the Shops and Offices Act. It has been necessary to omit the agricultural and pastoral workers group from these computations since hours of farm labour are not fixed. For each sex, the base is the Dominion weighted average for all industrial groups combined, 1926-30 = 1000.

Industrial Group.1914.1934.1935.1936.1937.1938.
Provision of—Males.
  Food and drink1,1351,0091,011988947944
  Clothing, footwear, and textiles1,000978978948888888
  Building and construction988977977923866866
  Power, heat, and light1,0611,0171,017978902883
  Transport by water1,0931,0751,0751,045911911
  Transport by land1,0441,0281,028996905905
  Accommodation, meals, and personal service1,3251,0391,039974891891
Working in or on—      
  Wood, wicker, seagrass, &c.993990989947866866
  Metal1,008953953924866866
  Stone, clay, glass, and chemicals1,0261,0171,017969872872
  Paper, printing, &c.948927927918896866
  Skins, leather, &c.1,0391,0371,037994901866
  Mines and quarries981959953924866866
    All groups combined1,041999999963890888
Provision of—Females.
  Food and drink976976976940867867
  Clothing, footwear, and textiles1,006990990960901901
  Accommodation, meals, and personal service1,2171,0411,041975891891
Working in paper, printing, &c.976954954941903867
    All groups combined1,0541,0001,000962898896

NOTE.—The index numbers in each section of the above table are comparable-both vertically and horizontally.

The index numbers in the foregoing table being on a Dominion all-groups base, comparisons between movements in individual groups cannot be readily made. The following table brings out the movements in the various groups more clearly, a separate base being used for each group.

Industrial Group.1926-30.1914.1934.1935.1936.1937.1938.
Provision of—Males.
  Food and drink1,0001,1281,0031,005982942939
  Clothing, footwear, and textiles1,0001,0231,0001,000969908908
  Building and construction1,0001,0111,0001,000944886886
  Power, heat, and light1,0001,041998998960885867
  Transport by water1,0001,014997997970845845
  Transport by land1,0001,0161,0001,000968880880
  Accommodation, meals, and personal service1,0001,2751,0001,000937857857
Working in or on—       
  Wood, wicker, seagrass, &c.1,0001,002998997955874874
  Metal1,0001,0581,0001,000970909909
  Stone, clay, glass, and chemicals1,0001,0091,0001,000952857857
  Paper, printing, &c.1,0001,021998998989965933
  Skins, leather, &c.1,0001,0031,0001,000959869835
  Mines and quarries1,0001,016993988957897897
    All groups combined1,0001,041999999963890888
Provision of—females.
  Food and drink1,0001,0001,0001,000963889889
  Clothing, footwear, and textiles1,0001,0161,0001,000970911911
  Accommodation, meals, and personal service1,0001,1691,0001,000937856856
  Working in paper, printing, &c.1,0001,013991991977938900
    All groups combined1,0001,0541,0001,000962898896

NOTE.—Vertical comparisons are indicative merely of the relative changes in the length of the working-week in the different industries as compared with the base period, not of the actual respective number of hours for the different industrial groups.

As indicated by the foregoing tables, there was little change in the length of the full working-week prior to the year 1936. Subsequent noteworthy reductions in hours of work have taken place in the case of licensed-hotel workers (from forty-eight hours to forty hours per week), cooks and stewards while at sea (from nine hours to eight hours per day,) and butter-factory workers (from a maximum of fifty-six hours to a maximum of forty-eight hours per week).

The Industrial Conciliation and Arbitration Amendment Act, 1936, contained, inter alia, provisions aimed at the establishment of a 40-hour week, without reduction in the weekly wage-rate. New awards contain a provision to this effect, except that the Court may fix longer hours; but in such cases the Court is required to state its reasons for so doing. Awards in existence at the time the amendment was passed might be reviewed on application of the unions concerned with a view to the fixing of a 40-hour week. The Factories Amendment Act, 1936, required the fixing of a 40-hour week in factories, applications for exemptions from this provision being heard by the Arbitration Court. A 40-hour week is now in operation in the great majority of industries.

Chapter 38. SECTION XXXVIII.—LABOUR LAWS AND ALLIED LEGISLATION.

HISTORICAL INTRODUCTION.

SOCIAL and labour legislation was enacted early in New Zealand's history as a British country, and it is worthy of notice that, as in Britain it was the deplorable condition of apprentices that first excited popular support for labour legislation, so the first important New Zealand measures of this nature were the Master and Apprentices Act of 1865 and the apprentice-protection sections of the Offences against the Person Act of 1867. But in what was an essentially agricultural and pioneer country, conditions demanding labour legislation were not present, so that there was but little early progress in labour legislation. Initially, labour administration was interpreted in the light of English statutes, but such interpretations were largely ineffective, owing to the vast difference between English and New Zealand conditions.

The Trade-unions Act was passed in 1878, affording unions protection from prosecution for conspiracy by reason merely that their purposes were in restraint of trade. A considerable portion of the Shipping and Seamen Act of 1877 regulated conditions of life aboard ship, payment of wages, &c. The Inspection of Machinery Act, 1882, provided for the inspection of machinery in factories, &c., and required that persons in charge of boilers be properly qualified. An Employers' Liability Act was passed in 1882, legislating in the matter of industrial accidents with the object of mitigating the consequences to the worker without recourse to expensive litigation at common law.

Legislation specifically governing the conditions of employment of females— particularly in respect of hours of labour—was introduced in 1873, there being several amendments to the Act in later years, while the legislation was amended and consolidated in 1881. Regulation of the hours of labour of children was also provided for. With the existence of slump conditions in the “eighties” allegations of “sweating” arose; and, since such complaints became increasingly numerous, a Commission was set up in 1889 to inquire into this evil. The Commission found that the Employment of Females Act was ineffective owing to the lack of the necessary powers of enforcement. The Commission declared that actual sweating conditions were not present, though a minority report differed from this view, and pointed out that with increasing industrialization such conditions would rapidly become prevalent if no attempt were made to check them. The Commission made recommendations for future labour legislation, and, as the result of its findings, the Factories Act of 1891 was passed.

Depression, discontent, and a growing labour force—despite depression, the number of hands employed in factories increased approximately 16½ per cent. between 1885 and 1890—formed an economic background favourable to social legislation. Meanwhile the maritime strike of 1890, which caused even further distress throughout the country, proved to the trade-unions that they were not sufficiently strong to obtain their demands by direct action, and diverted their activities to the political field. The strike also aroused public opinion to the necessity for preventing such industrial strife. Political opportunity was still further opened by Sir George Grey, who in 1889 obtained Parliamentary approval for the abolition of the last remnant of plural voting at the elections to the House of Representatives. The extension of the franchise to women followed four years later.

In January, 1891, the Liberal Government came into power under the leadership of Ballance, with Reeves (Labour) and Seddon (Public Works) in the portfolios directly concerned with labour matters. As indicated above, the economic and political background demanded social change, and the change came to such a degree that New Zealand—still in the pioneer stage of economic development—acquired world fame as the land of advanced social legislation. The labour code enacted in the “nineties” was not so much socialistic as a correction of the more manifest injustices of an individualist system. There was not so much State control as an improved framework within which laissez faire could operate. This policy is most clearly seen in the realms of housing and farming, in which the Government aimed at making it easier for the worker to build or to settle on land, by the provision of finance through the State Advances Department (established in 1894). The Family Homes Protection Act, 1895, provided protection for homes from the legal processes resulting from bankruptcy proceedings, &c. The only encroachment on laissez faire principles was the fostering of co-operation on public works from 1891 onwards.

Working-conditions were improved by legislative regulation in four types of industry (factory work, shipping, shops and offices, and coal-mining), wages being also safeguarded though not directly increased.

The great achievement of this administration, however, was the evolution of machinery—the Conciliation Councils, the Arbitration Court, and the Labour Department—which not only administered the labour code efficiently, but could also modify it rapidly to suit the changing economic background. This dynamic machinery was far more effective than the all too soon antiquated improvements by the more normal procedure of static legislative enactment. An adjustable labour code was of special advantage to a primary-produce exporting country which is, of all countries, most open to the fluctuations of economic progress, and it is another example of the British empiricism that delights in suiting action to the conditions of the moment.

This code, and the resulting constant political intervention in labour conditions, profoundly modified labour organization. Since resort to judicial rather than to militant action became the accepted means of settling industrial disputes, much of the bitterness usually associated with the struggle for improved wages and working-conditions was lost. Moreover, the close association with the Courts led to the growth of a strong political bias in the aims of unionism. This was but natural. for, since the legislative code ensured to the workers many benefits for which they would otherwise have had to fight keenly, it was felt that the further amelioration of living-conditions would best be attained by legislation rather than by direct action.

Subsequent progress has been determined largely by this code, although the swing visible in the development of English labour legislation from Salisbury's Factory Acts to Lloyd George's pension schemes—from concrete intervention in working-conditions to attempts at equalizing the distribution of the national income —is also evident in New Zealand. For example, the rate of the old-age pension has been increased considerably—from £18 per annum (1898) to £45 10s. (1925), to £52 (July, 1936), and to £58 10s. (December, 1936) with, in effect, a further increase to £78 under the Social Security Act, which partially came into operation on 1st April, 1939. Again, the present Government's housing plans include provision for the erection of homes of a good standard to be let to workers at a reasonable rental, and considerable progress has already been achieved in this connection (vide pages 555-556).

Prior to the passing of the Social Security Act, 1938 (vide pages 625-635), the initial pre-eminence of New Zealand in respect of social legislation generally had been largely lost. Hitherto the only governmental provision towards sickness insurance was the National Provident Fund established in 1911. This scheme is a voluntary one, State aid being in the direction of administration, together with a subsidy. The Social Security Act is much wider in scope than similar legislation in other countries; but it is worthy of note that compulsory health insurance, which is now provided for the first time by New Zealand legislation, has been in operation for many years past in several other countries—e.g., Germany (1883), Great Britain (1911).

National provision for the relief of unemployment did not become law in this country until 1930, whereas in Great Britain legislation dealing with this subject has been in force since 1911, the years of initiation of unemployment insurance in certain other countries being as follows: Austria, 1920; Queensland, 1922; Italy, 1923; Germany, 1924. A Workers' Compensation Amendment Act was passed in October, 1936, liberalizing the scale of payments in respect of accidents, while changes in the administration of the unemployment legislation in the direction of granting greater benefits have been made. The Social Security Act will rectify the pre-existing deficiencies in New Zealand legislation in regard to medical benefits and unemployment, as compared with the position in other countries.

Up to 1936 progress in other spheres was limited to technical improvements on the original Ballance-Seddon code, except perhaps in the case of the fluctuating fortunes of the Arbitration Court. During the twenty-six years of prosperity from 1895 to 1921 (there was but a slight setback in 1909-1910) the scope of the Court's awards was gradually expanded, the most important step being the power conferred in 1898 of prescribing minimum rates of wages. Whereas the Court was originally more concerned with conditions of work, and not at first with wages, there has been a gradual transformation, till in recent years the attention of the Court has been mainly focused on the wages question. As the Court is progressive, or at least not static, its influence expanded at the cost of stationary measures, such as Factories Acts, which, in practice, became a dead-letter as affecting workers under the jurisdiction of the Court. During the depressed years following 1921 wages were reduced, to the dissatisfaction of the workers, yet not fast enough for employers, so that the value of the Court was increasingly questioned till a National Industrial Conference was summoned in 1928 to discuss, inter alia, compulsory arbitration. In the boom years between 1927 and 1930 no action was taken; but in 1932, under stress of depressed conditions, amendments were made to the Act which in effect abolished the system of compulsory arbitration. The Arbitration Amendment Act, 1936, restored the full powers of the Court.

Though no great inroads have been made on the wages system, there has been definite governmental and legislative encouragement of co-operation. In 1891 much public-works construction, such as road and railway formation, was first organized on this principle. The plant, explosives, &c., were supplied to the men by the State at cost-price or on low hire terms. A modified form of the system then adopted is still followed, and the Minister of Public Works increased its scope in 1936. Similarly, the Companies Empowering Act of 1924 attempted to encourage the principle of profit-sharing among workers. Any company registered under the Companies Act is empowered to issue to its employees labour shares, which are not transferable, have no nominal value, and do not form part of the ordinary capital of the company. Except as otherwise provided, these shares entitle the holders to the same privileges as the ordinary shareholders. In the event of an employee leaving his employment or dying, the shares must be surrendered in cash or in capital shares to him or to his heirs. The Act of 1924 required the Arbitration Court to inquire into the merits of each scheme before such scheme could be validated, but this requirement was repealed in 1931. Another Act in the early “twenties” aimed at fostering co-operation among farmers, but it became, in practice, a dead-letter.

There was in the original labour code a definite policy of ensuring greater opportunities for the masses by financing farming and house-building projects, through the State Advances Department. This provision of easy credit to put workers on the land was the rural aspect of the labour code, for, apart from some provision for the inspection of housing, there were no other measures designed for the agricultural labourer. Even the Arbitration Court in 1908, 1919, and 1925 refused to make any award covering permanent farm labour. Full provision for the application of standard rates of wages, &c., to farm workers was made in 1936 (see Agricultural Workers Act, post). The policy of social lending survived the years of prosperity, and was employed to cope with part of the post - war demobilization; but the policy was reversed in the ensuing depression, and the Rural Advances Act of 1926 was a definite attempt to put State Advances loans on a more economic basis, eliminating much of the social background. This tendency was completed by the creation of the Mortgage Corporation in 1935, which definitely marked the subordination of social to economic ends. The agricultural bias and the workers' loans of up to 95 per cent. of their security were both eliminated, in theory at least. At the same time loans for housing were reintroduced for Maoris late in 1935, and further activity in this sphere was foreshadowed by the Housing Survey Act of 1935. The Government was also empowered to lend to farmers, through the Lands Department, by the Dairy Industry (Emergency Powers) Act of the same year.

The State Advances Corporation Act, 1936, marked a definite reversal of the previous Government's policy in regard to State Advances loans. The Mortgage Corporation was abolished, its powers having been taken over by the State Advances Corporation (see Section XXIVD), while the general purpose of the 1936 Act was definitely in the direction of a liberalization of the lending policy of the State.

During the depression period there was a cessation of the move towards better working-conditions; and, on the grounds of economic circumstances and the danger of inconveniencing still further already bankrupt employers, the various inspection duties that usually preserve the labour code were curtailed. The rates of pensions and public servants' salaries and wages were reduced, while award rates of wages were also compulsorily reduced. At the same time heavy unemployment liabilities were undertaken and immigration control was made more rigid. Steps were also taken to duce farmers' mortgage liabilities and to maintain farmers on their land.

In no case do the provisions laid down by any particular labour law cancel the worker's rights at common law; but since, naturally enough, better conditions are laid down by statute than the worker is entitled to at common law it is unusual to find in these days litigation under the common law affecting master and servant. It sometimes happens, however, notably in workers' compensation cases, that appeal is made at common law instead of under the Act, there being no statutory limits to the damages which may be obtained at common law. Since, with the exception of such of the labour statutes as are of general application, no labour legislation exists as yet affecting certain classes or workers—e.g., domestic servants—their relations with their employers are still governed mainly by the common law affecting master and servant.

New Zealand has been relatively backward in protection for permanent farm labour, for while seasonal labour is in general covered—awards existing both for shearers and shed hands and for threshing-mill workers—the Arbitration Court has made no awards in respect of permanent farm hands. In general, conditions of work on farms were not covered by any specific legislation—except as regards inspection of housing-accommodation—until, in 1936, the Agricultural Workers Act (described in some detail later) was passed, containing definite provision as to wages of dairy-farm workers and better provision for the housing of agricultural workers. Similar legislation has existed in many of the older countries for years past. Further improvement in the position of agricultural workers was made by the Share-milking Agreements Act, 1937, which defined, inter alia, minimum percentages of the milking returns to be received by share milkers. In the following pages labour legislation, as it has developed in its principal provinces, is discussed in some detail.

Extensive amendments to pre-existing labour laws have been made by the Labour Government (first elected in November, 1935) towards the formation of a more liberal code of social legislation. Legislative provisions novel to New Zealand have been made with the same object in view—e.g., the Agricultural Workers Act, the provision for the declaration of a basic wage contained in the industrial Conciliation and Arbitration Amendment Act, &c. Following is a list of Acts dealing directly with labour questions, passed during the 1936 session of Parliament:—

  • Employment Promotion Act.

  • Industrial Conciliation and Arbitration Amendment Act.

  • Factories Amendment Act.

  • Shops and Offices Amendment Act.

  • Agricultural Workers Act.

  • Workers' Compensation Amendment Act.

  • Coal-mines Amendment Act.

A machinery measure (the Labour Department Amendment Act) brings certain functions of the Department under the control of the Minister of Labour, and defines more clearly the scope of the Department's activities. In addition to the Acts mentioned above, provisions in several other Acts of the 1936 session deal with matters which can be properly regarded as coming within the subject-matter of this section. The following Acts, or provisions in Acts, may be referred to in this connection. In some instances detailed reference is made later in this section, while in others reference is made in the sections indicated.

  • Certain provisions in the Finance Act dealing with restoration of wages and salaries.

  • The Distress and Replevin Amendment Act.

  • Fair Rents Act.

  • Family Allowances Amendment Act. (See Section XXV.)

  • Pensions Amendment Act. (See Section XXV.)

  • Prevention of Profiteering Act. (See Section XXXVI.)

  • Mortgagors and Lessees Rehabilitation Act. (See Section XXXII.)

  • State Advances Corporation Act. (See Section XXIVD.)

Various enactments and amendments to previous Acts introduced in the 1936 session modifying the code of labour legislation and social legislation generally have been briefly referred to. More detailed reference is given in each instance under the appropriate heading in the following pages, where the legislation as it stands at present is discussed, with appropriate historical comment. A short résumé of the Government's policy in relation to public works as it affects working-conditions, &c., on such works is also appended, as being highly relevant to the subject-matter of this section.

Amendments to the code of labour legislation during the 1937, 1938, and 1939 sessions of Parliament were mostly of a machinery nature, the Social Security Act being the only relevant major legislative measure. A 1937 amendment to the Industrial Conciliation and Arbitration Act made provision for the setting-up of a second Court of Arbitration. Two further amendments to this Act were passed in 1939, one giving the Minister of Labour power to cancel the registration of a union or an award an certain circumstances, and the other, a war measure, has as its object the prevention of strikes and lockouts. The Share-milking Agreements Act, besides prescribing minimum percentages of returns for share-milkers, defines the respective responsibilities of employers and share-milkers in farm-management and control of stock. The Coal-mines Amendment Act, 1937, contains provisions towards the improvement of working-conditions in mines. The Legal Aid Act, 1939, gives power to make regulations providing legal aid to poor persons, while the Rural Housing Act, 1939, makes further provision for housing facilities in rural localities.

WAGES AND WORKING-CONDITIONS.

Working-conditions of females in factories were the subject of legislation as early as 1873; but the first legislation of this nature applying to all factory workers was the Inspection of Machinery Act of 1882, which provided for the inspection of machinery in factories, &c., and required that persons in charge of boilers should be properly qualified; while three years later an ineffective Factory Act was passed. But it was the Ballance and Seddon Governments which really initiated legislation in this sphere with four main Acts that have served as a basis for all subsequent legislation on this subject, and determined the lines along which progress was to be made—the Factories Act, 1891; the Coal-mines Act, 1891; the Shops and Shop-assistants Act, 1892; and the Shipping and Seamen Act, 1894. The Agricultural Workers Act, 1936. represents a definite extension of the scope of this legislation.

FACTORIES ACT.

The original Factories Act, which was passed in 1891, provided for the registration as a factory of any office, building, or place in which three or more persona were engaged in working for hire or reward in any handicraft, or in preparing or manufacturing articles for trade or sale, and for the inspection of such factories. Other provisions dealt with sanitation in factories, the protection of women and children as regards hours of employment, and the notification of accidents in factories. Boys under sixteen years of age were limited to forty-eight hours per week and women to eight hours per day, to be worked between 8 a.m. and 6 p.m. Extension of hours was permitted with the approval of an Inspector of Factories up to three hours per day on not more than twenty working-days of the year, provided that such extra payment as might be agreed upon should be made. Before a child under the age of sixteen years was permitted to be employed in a factory, a certificate of fitness granted by an Inspector of Factories had to be obtained. The sweating evil was guarded against by one section which provided that a record should be kept of the amount of work done elsewhere than in the factory, the name and address of the person doing the work, and the remuneration paid. From the foregoing it will be seen that, except for the sanitation provisions and the reporting of accidents, conditions of employment for adult males were studiously avoided. This Act was repealed in 1894, the Act of that year containing several new features, notably provision for the labelling of work sent out from the factory and manufactured in private houses. The definition of a factory was widened to include establishments where two people were employed. In one respect the Act of 1894 compared unfavourably with the previous enactment. Under the 1891 Act women and youths had worked an eight-hour day, with a weekly half-holiday; but the 1894 Act, by merely prescribing a forty-eight-hour week, meant that they had by law to take a half-holiday at their own expense. An amending Act of 1896 added to the anti-sweating provisions by prohibiting the subletting of any textile work which had been given out by a factory occupier. In 1899 the Employment of Boys and Girls without Payment Prevention Act was passed. This applied only to factories and workrooms, and required payment to be made to every child under eighteen years of age of a minimum wage of 4s. per week for girls and 5s. per week for boys, both irrespective of overtime. In 1901 a consolidating and amending Act was passed. This remedied the fault referred to above concerning the half-holiday; and, in addition, cognizance was taken of the working-hours of men—the hours being fixed at forty-eight hours per week for men, with a maximum of eight and three-quarter hours per day; and forty-five per week for women and youths, with a maximum of eight and one-quarter hours per day. Overtime was permitted with extra payment; but in the case of women and girls the number of hours per day and the number of days per year were limited. A wage of 5s. per week was provided for all employees under sixteen years of age, with annual increments of 3s. per week till twenty years of age; and, by amendment the next year, this was altered to 5s. per week for the first year for every person under twenty years of age, with increases of 3s. per week until twenty years of age. A further amendment was passed in 1905 granting employees not under twenty years of age, who had been employed in a factory or factories for at least four years, a minimum wage of not less than 17s. per week for the first year and £1 per week thereafter. The law was consolidated 1908 and again in 1921-22, the latter Act raising the minimum-wage scale to 1. per week for the first year of employment, with annual increments of 5s. per week until a wage of £1 10s. per week was reached, and thereafter not less than £1 10s. per week.

Important amendments to the law are contained in the Factories Amendment Act, 1936. The definition of a factory is widened to include all establishments where one person is employed (two persons being the minimum previous!)', with certain specified exceptions, which were classed as factories whatever the number of persons employed—viz., bakeries, laundries, all places where mechanical power is employed, gasworks, electric generating-plants, and places where Asiatics are employed in laundry-work, manufacture, or handicrafts).

A forty-hour week is prescribed as the legal maximum for an ordinary working-week in place of the pre-existing maximum of forty-eight hours (women and boys, forty-fire hours). The number of hours per day is reduced to eight, while work may not be continued for more than four hours and one-quarter (previously five hours) without an intermission of at least three-quarters of an hour. Certain industries which were previously exempt from the forty-eight-hour maximum— meat-freezing works, dairy factories, fellmongery, fish-curing, jam-making, bacon curing—are also exempt from the operation of these provisions. On application by any occupier of a factory, the Court of Arbitration may by order extend in respect of the factory for any specified period the limits on working - hours indicated above, but not to more than forty-four hours per week. Special provisions are made in the case of dairy factories, limiting, with certain exceptions, to six per week the number of days on winch any worker may be employed.

The minimum rate of pay is raised from 10s. per week to 15s., rising by half-yearly increments of 4s. until the end of the third year, when the minimum rate of £2 per week operates. Overtime is permitted (as before) upon obtaining a written permit from an Inspector of Factories; but Sunday work for women or boys is definitely prohibited.

Overtime rates of pay are raised to a minimum of 1s. 6d. per hour (preexisting minima 6d. and 9d., according to ordinary rate of pay), while the standard overtime rate is one and one-half times the ordinary rate (previously one and one-quarter times). The number of paid holidays granted to workers has been increased from six days to eight, and now applies to all workers—not only to boys under eighteen years of age and women. For five of these days wages were payable to all persons employed at any time during the preceding fortnight, and for the rest of the days to those employed on any four days of the preceding week. By section 17 of the Statutes Amendment Act, 1938, payment for all holidays mentioned in the Act is made to all persons employed at any time in the preceding fortnight. Special provisions have been made requiring extra payment to be made for work on Sundays or holidays. Generally speaking, treble time is counted for work done on statutory whole holidays (where the worker would be paid ordinary time if not working), double time on Sundays or other holidays, and time and one-half on half-holidays.

No deduction from the pre-existing weekly wage is to be made on account of any reduction in working - hours made in consequence of the coming into force of the 1936 amending Act. The reduced hours came into operation on 1st September, 1936.

In addition to the provisions described in the previous paragraphs, there are, inter alia, sections extending the application of rules for the prevention of accidents in factories; while, where better conditions are prescribed in any respect by the amended Factories Act than exist in any award or agreement under the Industrial Conciliation and Arbitration Act, such award or agreement is to be read subject to the provisions of the Factories Act.

Provision was made in 1906 for protecting workers employed on any building work, and these provisions were later superseded by the Scaffolding and Excavation Act, 1922. This Act covers all persons engaged in erecting, demolishing, or altering any building, making the necessary excavations, or operating cranes and other gear. Notice of intention to commence building work that may involve a fall of 12 ft. or more, or to make an excavation, or to set up a crane, must be given to one of the Inspectors appointed by the Act. The Inspector is empowered to order work to cease, to brand or destroy unsafe gear, and generally to see that the life and health of workers are safeguarded.

SHOPS AND OFFICES ACT.

The first of a long series of enactments governing the employment of assistants in retail shops was the Shops and Shop-assistants Act, 1892. Every employee was to have a half-holiday from 1 p.m. on some working-day each week except in a week in which a public holiday occurred. Women of any age and boys under eighteen years were not to be employed longer than fifty-eight hours per week, including meal-times. An amendment of 1894 provided for a maximum weekly limit for women and boys under eighteen years of age of fifty-two hours, and a daily limit of 9½ hours except on one day each week, when 11½ hours might be worked. Offices were now included in the Act, and were required to close at 5 p.m. from Monday to Friday and at 1 p.m. on Saturday.

The Act was consolidated and amended in 1904 as the Shops and Offices Act. The maximum of fifty-two hours per week, previously confined to women and boys, now applied to all shop-assistants. The Act provided for employees receiving less than £200 per annum a payment of time and a half for overtime, with a minimum of 6d. per hour for employees receiving not more than 10s. per week and a minimum of 9d. per hour for others. Minimum wages were provided for the first time, the rates being identical with those under the Factories Act—i.e., 5s. per week for the first year, with an annual increment of 3s. per week until twenty years of age. By an amendment passed in 1910 the provision regarding the 3s. per week yearly increase was made to continue until a wage of £1 per week was reached whether the assistant had reached twenty years of age or not.

The 1920 Amendment reduced the weekly maximum hours for shop-assistants to forty-eight; and in the 1921-22 session a new Act was passed consolidating previous enactments and making several amendments. Minimum wages were increased to 10s. per week for the first year, with annual increments of 5s. per week until a wage of £1 10s. was reached. Payment for overtime was left at time and a half, but the minimum was raised to 9d. per hour for those receiving not more than 15s. per week and 1s. per hour for those receiving more than 15s. per week.

Important amendments were made in 1936, when further advances in keeping with those made in other branches of industrial legislation were put into operation.

Except in certain exempted trades and in small towns for which later hours are prescribed, work must cease at 6 p.m. on four nights of the week, at 9 p.m. on one night, and at noon on the day of the weekly half-holiday. The hours must not in any case exceed forty-four per week or eight per day, with the exception of eleven on one day in the week. Limited overtime (to be paid for) may, however, be worked for stocktaking and special occasions. A break of not less than one hour for a meal must be allowed after four and one-quarter hours' continuous work, except that an extension to five hours may be made if ten minutes' rest is allowed at the end of a working-period of three hours. Prior to the 1936 Amendment the closing-hour on the half-holiday was 1 p.m.

In regard to the closing of shops, a weekly half-holiday from noon is compulsory with a few exceptions—e.g., fishmongers and fruiterers. The closing-day is fixed in each district by the local authority, except where it is decided by a poll of the electors taken on petition of a certain number. Even in the exempted trades, a half-holiday must be given to each assistant on a day to be fixed by the occupier.

The closing-hours of shops in any district on the other days of the week have for many years been fixed pursuant to the Act by “requisition” of a majority of the shopkeepers if desired either in the whole of the local district or in any trade in the local district. The hours of closing have been thus determined in very many trades and districts.

In 1920 an amendment of the Act prescribed compulsory closing-hours at 6 p.m. on four days of the week and 9 p.m. on one day in the well-populated areas, except in certain exempted trades, thus incorporating by statute the closing-hours as already determined by “requisition” in many cases. The Court of Arbitration under the Industrial Conciliation and Arbitration Act is also now empowered, when making an award in any trade, to fix not only reduced hours of employment of assistants (which has been done in many trades), but also earlier closing-hours of all shops in that trade in the locality whether or not assistants are employed therein, with authority to make exemptions in cases of hardship, and this provision has also been acted upon.

Each trade in any district may also, by a majority vote, obtain an order of the Minister of Labour prohibiting the sale in such district, during the time the shops in such trade are required to be closed, of the goods the sale of which is comprised in such trade. This provision is inserted to meet those cases where the trades of various shopkeepers overlap one another, only some of whom are required to close at a certain hour. The provision enabling a majority of the shopkeepers in any trade to fix the closing-hours for that trade applies only to those who are principally engaged therein; if the latter are desirous that other shopkeepers carrying on the trade as a minor portion of their business should cease selling the same goods at the closing-hours fixed, they may apply to the Minister for an order prohibiting such sales.

The Act now fixes a minimum wage of 15s. per week, with half-yearly increments of 4s. per week until the end of the third year, and thereafter a wage of not less than £2 per week. As in the case of factories, higher rates of wages are, in the case of many shop-assistants, fixed by awards or industrial agreements under the Industrial Conciliation and Arbitration Act.

All assistants employed in hotels and restaurants are brought under special provisions as to holidays, hours (which must not exceed forty-four per week nor eight per day), overtime, &c. As in the case of shop-assistants, hotel and restaurant employees must be allowed an interval of an hour for a meal after four and one-quarter hours' continuous work.

The Act also makes provision for the comfort, health, and safety of assistants —viz., in regard to seating-accommodation, ventilation, heating, sanitation, and hygiene.

The hour of commencing work must not be earlier than 7 a.m., except in certain specified instances—e.g., bakers (4 a.m.), butchers (6 a.m.). Persons engaged in delivering milk may be required to start work at 3 a.m. or—in accordance with conditions approved by the Minister, but not otherwise—earlier than 3 a.m. The above exceptions do not apply in the case of boys or girls under sixteen years of age. The latest hour on which a male shop-assistant may be employed in any trade is 10.30 p.m., or 11 p.m. on one day in the week in certain instances; while boys under eighteen or females may be employed until 9.30 p.m., but there are exceptions on certain days—e.g., Christmas Eve. Extension to 10.30 p.m. is permissible in the case of women, girls, or boys under eighteen employed in restaurants. There is no limit under the Act to the time at which adult male hotel and restaurant employees may be required to commence or cease work, although the total hours per day and per week are fixed as above.

No premium may be received by the occupier of any shop in respect of the employment of any shop-assistant or in respect of the teaching or training of any person in any trade or business carried on in the shop unless the shop is approved by the Chief Inspector appointed under the Factories Act, 1921-22, as a school for learners in a trade or business, and the payment is made pursuant to a written agreement that is approved by the Chief Inspector. The Chief Inspector cannot approve of any shop as a school for learners in any trade or business unless he is satisfied that reasonable facilities are provided for learning the trade or business, and he may at any time withdraw his approval if he ceases to be so satisfied. The Chief Inspector must not approve of any agreement under this section unless he is satisfied that the terms of the agreement are reasonable.

Offices are required to close at noon on the statutory half-holiday and at five o'clock on every other working-day, certain exceptions—e.g., shipping offices, railway offices, and newspaper offices—being allowed. The list of exemptions from this provision has been substantially reduced by the 1936 Act, banks and insurance offices being important cases previously exempt. Limited employment after office-hours is permitted for such purposes as making up balances, &c., payment for overtime at the rate of time and a half (minimum 1s. 6d. per hour) and meal-allowance at the rate of 1s. 6d. per meal being mandatory in respect of such overtime.

The minimum wage-rates applying to shop-assistants set out in a preceding paragraph apply also to office assistants. Prior to the 1936 amendment office assistants did not come within the scope of the provisions for minimum wages. This particular provision also applies to solicitors' offices and mining offices, which do not come within the definition of the term “office” in respect of other provisions of the Act.

No person who was employed in any shop or office at the time the 1936 amendment came into operation may be dismissed, nor have his wages reduced, by reason merely of any reduction or alteration made in his working-hours pursuant to the amendment. Where any such person is dismissed or his wages are reduced after the commencement of the Act, the onus of proving that the dismissal or reduction, as the case may be, was not a breach of the provisions of that Act is on the employer.

Awards and industrial agreements covering shop and office workers are to be read subject to the provisions of the Shops and Offices Act—i.e., the conditions, &c., laid down in such awards and agreements must be at least equal to those prescribed in the Shops and Offices Act.

Provision is made for the keeping of a time-table of hours of duty of fruiterers' assistants; and, under certain conditions, shops which sell smoking-requisites in addition to carrying on other business may be compelled to close early in the evenings. Vendors of motor spirit or oil are not compelled to observe the limitations as to closing-hours, provided that this is the sole business conducted on the premises.

MINING ACTS.

Since the passing of the original Coal-mines Act of 1891 legislation relating to coal-mines has always been set out separately from that regulating all other mines. The Mining Act of 1926, which consolidates no fewer than fifteen previous enactments on the subject, lays down in considerable detail regulations governing all mines except coal-mines. Inspectors of Mines are appointed with wide powers.

The Act requires that a person acting in the capacity of mine-manager of any mine where there are more than twelve men employed at any one time above ground, or more than six underground, must hold a certificate granted after examination by a Board of Examiners empowered under the Act to grant such certificates. Provision is made for proper ventilation in mines, special care is required to be taken in handling explosives, dangerous places must be properly timbered, special regulations are made as to hauling-machinery, &c. No female and no male person under the age of fourteen years may be employed in or about a mine, except in a clerical capacity. The employment of manual labour on Sundays without the previous written consent of an Inspector of Mines is prohibited. Overtime must be paid for any time worked in excess of eight hours a day, counting from the time the miner enters the underground workings until he leaves them. Time worked on Sundays and holidays must be paid for at time-and-a-half rates. All machinery used to supply motive power is subject to the provisions of the Inspection of Machinery Act, 1908, as far as these provisions apply. Sufficient water must be supplied where it is necessary for the laying of dust in a mine. No youth may be employed in a mine for more than eight hours per day or forty-eight hours per week except in cases of emergency.

The Mining Amendment Act, 1927, provides, inter alia, that a mine where twenty men or over are employed on one shift must have two outlets.

Conditions of employment in coal-mines are dealt with in the Coal-mines Act, 1925. In general the provisions of this Act resemble those of the Mining Act, though, of course, to combat the special risks of coal-mining additional regulation is necessary. For every coal-mine there must be a duly qualified manager, who must be either the owner of the mine or some person appointed by the owner, and who is responsible for the control, management, and direction of the mine. Inspectors of Coal-mines are appointed, who must hold certificates as first-class mine-managers under the Act. Certain sections of the Act deal with the control of coal-dust, the use of safety-lamps, the prohibition of work in places where the presence of gas is suspected, and the inspection of the mine before the commencement of work, &c. Suitable housing-accommodation must be supplied for workers if required by notice of the Minister of Mines.

A levy of ½ d. per ton on every ton of marketable coal raised from mines is made under the terms of the Act, such moneys forming a fund for the relief of miners injured in the course of employment and of their dependants in the case of death. Information as to miners' pensions (now miners' benefits under the Social Security Act, 1938), provided for originally by the Miners' Phthisis Act of 1915, is contained in Section XXV of this book.

By an amending Act passed in 1927 wages for a period not exceeding six months, payable by the owner of a coal-mine in respect of mining operations, constitute an equitable charge on plant and machinery, with priority over mortgages, &c. Proceedings for the enforcement of the charge must be commenced within twelve months.

An amending Act passed in 1936 provided further measures for the safety of miners. Stricter precautions are to be taken to ensure that unlawful lights, &c., are not taken into mines. Additional safeguards are made to alleviate the danger to the health of miners from the presence of dust in mines, while the Minister may establish central rescue stations in coal-mining areas.

The Coal-mines Amendment Act, 1937, contains many provisions designed to ensure the greater safety of workers engaged in coal-mines. No person under the age of twenty-three years may be employed as a mine-manager or other mine official; while certificates of competency as underviewers or firemen deputies must be periodically endorsed by an Inspector of Mines to the effect that the official has passed certain specified efficiency tests. Certain appliances by which coal may be, in effect, screened or sized may not be used underground. A further provision as to housing-accommodation for miners is also included in the amending Act. The Minister may require a mine-owner to pay part of the cost of conveyance of workers to the mine in lieu of providing housing-accommodation.

SHIPPING AND SEAMEN ACT.

The first statute relating to this subject was passed in 1877, and the present law is embodied in the Shipping and Seamen Act, 1908, which, with subsequent amendments, contains many provisions designed for the safety of passengers and crew, and for the amelioration of working-conditions on board ship. A vast amount of regulation is contained in the Act dealing with matters which do not come under these headings, so that this résumé of its contents by no means covers the whole ground covered by the Act.

Adequate provision is made to ensure competence on the part of the controlling officers of ships. Home-trade steamships of 60 tons register and upwards and home-trade sailing-ships of 100 tons register must carry certificated mates, and such ships of 100 tons register and upwards trading more than three hundred miles between terminal ports must have second mates. A foreign-going ship is required to carry two certificated mates. Foreign-going certificated mates are entitled to ship as mates in the home trade. It is an offence for a master or owner to engage a certificated officer for the purpose only of enabling the ship to clear, and not for the purpose of making the voyage.

Provision is made for issuing certificates of competency to second mates of home-trade ships, and for recognizing as valid in the Dominion certificates of masters, mates, and engineers granted in any part of the British Dominions.

Any master or mate may, at any time, be required by the shipowner or the Minister of Marine to be examined in the sight tests by the Government Examiners.

Further sections dealing with the safety of the ship require the adjustment of compasses to be carried out under regulations; and power is given to the Minister to define restricted trading limits for steamers and for vessels propelled by oil, gas, &c. The Governor-General in Council is empowered to make regulations as to the loading and stowage of ballast and the loading of grain cargo in bulk. It is an offence to ship wool, flax, tow, or skins in such a condition as to be liable to spontaneous combustion.

Since 1909 there has been a gradual extension of the type of ship required by law to carry wireless. The regulations now define the nature of the installations and service and the number and grade of operators in different classes of vessels, and provide for inspection.

The provisions regarding working-conditions on vessels require, inter alia, proper sanitary, hospital, and lavatory accommodation, including bathrooms, to be provided for the crew, together with an adequate supply of hot water for those employed in connection with the engines; and a minimum of space to be provided in the seamen's quarters is laid down. Masters and officers who assault seamen on the high seas are liable to imprisonment or fine.

Intercolonial ships—i.e., those trading between New Zealand and Australia, or New Zealand and the central Pacific islands—in addition to home-trade ships are made liable to pay the wages, maintenance, and medical expenses of seamen taken ill in the service of the ship for the remainder of the agreement, not exceeding three months; and, in the case of intercolonial ships, if the agreement expires within one month from the commencement of the illness, payment is to be made for one month after the expiry. The illness which entitles a man to the benefits provided for is one which requires medical treatment for fourteen days.

The wage-rates on foreign-going ships trading between New Zealand ports are to equal the current rates of wages for such work paid in New Zealand at the same time. This does not apply to ships arriving from abroad with passengers or cargo but not trading in New Zealand further than to discharge passengers or cargo and shipping fresh passengers or cargo to be carried abroad.

The clearances of foreign-going ships which are required to pay the coastal rate of wages are to be withheld until such wages are paid.

Desertion is defined, and deserters who cannot be dealt with before their ship sails can afterwards be prosecuted by the owner or agent, and copies of the agreement and the entries in the log-book are to be accepted by Courts as evidence. Forfeited wages are to be paid into the Public Account.

It is unlawful for any person other than the owner, master, mate, or engineer of a ship, or a Superintendent of Mercantile Marine, to engage or supply seamen for ships, and only seamen who have a knowledge of the English language are allowed to ship.

The law as to inquiries into shipping casualties is on the lines of the Imperial Merchant Shipping Act, and provision is made for rehearings, for Superintendents of Mercantile Marine to take part in such inquiries, and for Magistrates to order a change of venue. Inquiries are not to be held in Police Courts unless other suitable buildings are not available; and in cases where there has been loss of life, but no damage to the ship, the inquiries may be held by Coroners.

AGRICULTURAL WORKERS ACT.

The primary purpose of the Agricultural Workers Act, 1936, was to make better provision for the accommodation of agricultural workers, and to make special provisions for the remuneration of workers on dairy-farms and for the conditions of their employment. The Act also includes provision for the extension of these special provisions to other classes of agricultural workers, and, as indicated later, Orders in Council have been issued under this provision. The administration of the Act is in the hands of the Labour Department, which also administered the Agricultural Labourers' Accommodation Act, 1908 (repealed by the present Act).

The sections of the Act in relation to the accommodation of agricultural workers lay down definite requirements for the comfort of such workers. Inter alia, sleeping-quarters separate from the dining-quarters must be provided where two or more workers are accommodated; a sufficient supply of furniture and utensils must be provided by the employer; provision for the storing of perishable foodstuffs and for drying clothes must be available; while first-aid appliances must be provided. Inspectors of Factories have power to inspect the accommodation and to require that improvements be made where necessary. Inspectors have discretionary power in cases where special circumstances exist, provided that the accommodation conforms approximately to the requirements of the Act. The employer has a right of appeal to a Magistrate's Court against the decision of an Inspector. The provisions of the Act are not intended to apply to cases where workers can conveniently sleep in their own homes; but special provision may be made by regulations under the Act to cover cases where a married worker and his family are occupying a house owned or leased by his employer.

No child under the age of fifteen years may be employed for hire on a dairy-farm (excepting those in such employment at the date of the passing of the Act).

By the Act minimum weekly rates of pay were prescribed for workers on dairy-farms. The Act fixed the rates to operate from 1st October, 1936 (the date the Act came into force) until 31st July, 1937, and subsequently rates of pay were to be fixed by Orders in Council. In fixing such rates, the guaranteed prices paid in respect of primary produce under the Primary Products Marketing Act, 1936 (see page 414), were to be taken into account, but future rates were not to be lower than those fixed by the Act. In the event of rates not being fixed for any period, the rates set out in the Act are to apply, and this provision operated from 1st August, 1937, to 31st October, 1937.

Following are the rates that have been fixed for the three periods to date:—

September, 1936, to 31st October, 1937.1st November, 1937, to 31st July, 1938.1st August, 1938, to 31st July, 1939.
 Per Week.Per Week.Per Week.
 £  s.  d.£  s.  d.£  s.  d.
Under 17 years0  17  60  18  61  0  0
17 and under 18 years1  2  61  4  01  6  6
18 and under 19 years1  7  61  9  01  13  0
19 and under 20 years1  12  61  14  61  19  6
20 and under 21 years1  17  61  19  62  6  0
21 years and over2  2  62  5  02  12  6

The rates fixed for the third period (1st August, 1938, to 31st July, 1939) are still in operation (December, 1939).

No charge may be made by an employer for board and lodging of his dairy-farm employees; and in the case of a worker not being supplied with board and lodging the rates of wages specified above must be increased by £1 per week.

Every agricultural worker who is employed on a dairy-farm for not less than four weeks continuously is to be allowed a holiday on full pay plus an amount not less than one-half the lodging-allowance rate. The duration of the holiday is to be not less than seven days in the aggregate for every twelve weeks of employment, and a proportionate period for every broken period of employment. If a regular weekly half-holiday commencing at noon is allowed, a holiday of fourteen days a year (or proportionate duration for a lesser period of employment) will be regarded as sufficient compliance with the Act.

Among the miscellaneous provisions relating to dairy-farms are the following: Wages and allowances must be paid in full at least once a month; a wages and holiday book must be kept; an Inspector of Factories may take proceedings for the recovery of arrears of wages.

Provision exists for the employment of “under-rate” workers, with the consent of the Inspector of Factories. An amendment to the Act made by a section in the Statutes Revision Act, 1936, permits the Inspector to apply the under-rate provisions in respect both of money wages and of amount (if any) payable in lieu of board and lodging in cases of female workers employed on dairy-farms. This amendment is of considerable import, since the employment of women workers for short periods of the day—notably at milking-time—is common on dairy-farms.

Orders in Council extending the operation of the provisions of the Act to other classes of farm workers have been issued from time to time — orchard workers as from 1st February, 1937; workers on farms or stations used for the commercial production of wool, meat, or grain (including seed), whether exclusively or together with any other purpose, as from 1st May, 1937; and agricultural workers in market gardens, nurseries, &c., in the Wellington, Nelson, Canterbury, Otago and Southland, and Northern Industrial Districts at various dates between 23rd April, 1938, and 29th January, 1939. The orders do not apply to workers covered by awards or agreements under the Industrial Conciliation and Arbitration Act.

Orchard workers are entitled to one week's holiday on full pay after twelve months' continuous employment, or if employment is terminated after three months' continuous employment a proportionate sum in lieu of the holidays prescribed shall be paid. In addition, there are eight compulsory holidays for which full pay must be paid. Wages are to be paid fortnightly, unless otherwise agreed between the employer, the worker, and the accredited representative of the New Zealand Industrial Union of Workers.

Workers on farms or stations used for the commercial production of wool, moat, or grain (including seed) must be allowed, on the completion of twelve months' service, a total of eighteen days' holiday (on full money wage paid), to be given at the convenience of the employer. If the period of employment is less than twelve months but more than three months, the worker is to be allowed on the termination of the employment a proportionate number of days. Payment of wages is to be made in full at monthly intervals or at such other period as shall be agreed upon between the employer and the worker.

Workers in market gardens, nurseries, &c., are allowed one week's holiday on full pay on the completion of twelve months' continuous service or a proportionate holiday where the period of service exceeds six months. In addition, there are eight statutory holidays which must be observed without deduction from pay. If a worker is required to work on any of these days on essential work, equivalent time off, at a time to be mutually agreed upon between the employer and the employee, is to be allowed. Forty-four hours, to be worked within five and a half days of a week, constitutes a week's work. In special circumstances, certain essential work which is prescribed in the Orders may be performed on a Sunday; but, in such cases, time and a half rates must be paid or equivalent time off granted. Wages are to be paid weekly not later than Friday.

The minimum rates of wages which must be paid to the three classes of workers enumerated in the foregoing paragraphs are set forth in the various Orders.

THE BASIC WAGE, AND LEGISLATIVE CHANGES IN WAGE-RATES.

The amounts of wage-rates generally have always been influenced largely by the rates specified for individual industries and occupations in awards and industrial agreements registered under the Arbitration Act. As mentioned previously, certain classes of workers have hitherto had no legal protection in the matter of wage-rates; while, again, until the passing of the Shops and Offices Amendment Act, 1936, many classes of office workers were in a similar position.

The New Zealand Arbitration Court functioned for many years before the question of a basic wage was specifically dealt with by the Court. Under the War Legislation and Statute Amendment Act, 1918, the Court was required to review on application existing awards and industrial agreements, taking into consideration, inter alia, changes in the cost of living. The Court in April, 1919, made a pronouncement fixing basic rates of wages for skilled, semi-skilled, and unskilled workers. (It is of interest at this point to mention that a basic wage was brought into operation by the Federal Arbitration Court in Australia in 1907.) No definite family unit was stated as the basis on which the basic rate was calculated, the minimum pre-war award rates for unskilled labour, with appropriate adjustment, being apparently used as a standard. A cost-of-living bonus, varied at half-yearly intervals in sympathy with movements in the cost of living, was added to the basic rates. In September, 1925, a further pronouncement on the basic wage was made by the Court, standard minimum rates being fixed as follows:—

 Per Hour.
 s.d.
Skilled workers23
Semi-skilled workers111 to
 2
Unskilled workers110

The legislation by which the Court was empowered to make general orders having expired, the new rates—which represented an increase on those operating before—were brought into operation as individual awards expired. As in the 1919 pronouncement, no definite family unit was taken as the basis of assessment of the standard rates, which were in general stated to be somewhat in excess of 60 per cent. higher than the rates ruling in 1914. It is of interest to observe in the light of recent legislation that the standard rate of 1s. 10d. per hour works out at £4 0s. 8d. per week of forty-four hours, the ruling working-week at that time in many industries.

No further pronouncements directly relevant to the subject of the basic wage were made until 1931. The Finance Act of that year empowered the Arbitration Court to amend, by general order, awards or industrial agreements with respect to rates of remuneration. Rates of remuneration under awards or industrial agreements were reduced by 10 per cent. as from 1st June, 1931, with certain minor exceptions.

Full or partial restoration of this cut was effected in the case of several individual awards made in 1934 and 1935, while complete restoration was effected in respect of all awards by a section in the Finance Act, 1936. This Act went further: it required the restoration as from 1st July, 1936, of all cuts in wages and salaries imposed during the depression period, whether the workers concerned were working under an Arbitration Court award or not.

In September, 1937, the Arbitration Court made a pronouncement on standard wages. The following minimum rates are set out in the Court's pronouncement:—

 Per Hour.
 s.d.
Skilled workers29
Semi-skilled workers25 to
 2
Unskilled workers24

These minimum rates are intended as general standard minima for casual labour, and are not necessarily applicable where employment is regular throughout the year.

The Industrial Conciliation and Arbitration Amendment Act, 1936, inter alia, requires the Arbitration Court to fix basic rates of wages for adult male and female workers. Orders of the Court made to this end may be amended at not less than six-monthly intervals by a subsequent general order. The basic rate of wages for adult male workers is required to be fixed at a rate which would, in the opinion of the Court, be sufficient to maintain a man, wife, and three children in a fair and reasonable standard of comfort. A general order fixing basic rates of wages for adult male and female workers was issued by the Arbitration Court on 2nd November, 1936. The weekly rates are fixed at £3 16s. for adult male workers and at £1 16s. for adult female workers. The basic wage applies to all workers twenty-one years of age or over (excepting casual workers and those working under apprenticeship contracts) the conditions of whose employment are fixed by any award or industrial agreement. The basic wage has not, up to the present time (December, 1939), come up for review by the Court.

Rates of salaries and wages of public servants have been adjusted from time to time by legislative action. Cost-of-living bonuses were granted in the late war years and in the immediate post-war years; while, at the general regrading of classified officers normally held every five years, the subject of salary scales comes up for review. Statutory reductions were made in 1922, 1931, and 1932, the two latter reductions having since been restored—partially in 1934 and 1935 and completely in 1936.

An interesting innovation made by the Arbitration Court in 1928 was the award of that year whereby the wages of shearers and other wool-shed hands were fixed at a rate fluctuating with the movement of wool prices as determined by the Government Statistician's index number for export prices of wool. The system did not operate between 1931 and 1933, workers and employers being unable to agree as to rates, though both parties expressed approval of the principle. The award of 1933 contained provision for the resumption of the sliding-scale system, which is still in operation.

In referring to the general question of wage-rates it is relevant to draw attention to the supplementary income which is provided by several of the benefits provided by the Social Security Act, while the War Pensions Act is of significance also in this connection (see Section XXV).

PROTECTION OF WAGES.

Workers' wages were first safeguarded by the Truck Act of 1891, which ensured them the payment of their wages in full in coin of the realm. This was followed by a series of Acts—the Contractors' and Workmen's Lien Act, 1892, the Workmen's Wages Act, 1893, the Threshing-machine Owners' Lien Act, 1895, the Wages Attachment Act, 1895, and the Wages Protection Act, 1899—all aimed at making the payment of wages more certain and secure, and at limiting creditors' rights to attach future earnings.

This code was consolidated into the Wages Protection and Contractors' Liens Act of 1908, which operated until 1939, when it was superseded by the Wages Protection and Contractors' Liens Act, 1939. The re-enactment is substantially the same as the 1908 Act except for the omission of several clauses relating solely to wages protection, which were largely duplicated by the sections dealing with workers' liens.

Some of the more salient provisions of the Act, as it now operates, are set out below.

In the absence of any written agreement to the contrary, wages of manual workers are to be paid at intervals of not more than a week, and for other workers at intervals of not more than a month. The attachment or workers' wages for debt is prohibited except in the case of any surplus over £2 a week or when specific provision is made in any other Act for attachments on a lower minimum. (Exceptions are made by the Industrial Conciliation and Arbitration Act, 1925; the Child Welfare Act, 1925; and the Destitute Persons Act, 1910.)

The Act prohibits payment of wages being made in goods (truck) or in any other way than in money or by approved cheque, and also prohibits any stipulation as to how the wages-money is to be expended. The truck provisions do not, however, apply where the employer supplies house accommodation, board and lodging, fuel, medical assistance, materials, tools, and the like required for the work, no to seamen or farm workers.

A contractor, subcontractor, and any worker is entitled to obtain liens on the lands or chattels of the employer upon giving due notice, and the employer must then retain in his hands sufficient of the contract-moneys to satisfy and guarantee payment of the claimant's dues, but the total amount recoverable may not exceed the amount due under the contract. In addition, the Act directs that the employer or contractor (where a subcontract is entered into) shall retain in his possession, whether or not he has received notice of any lien or charge, one-quarter of the contract price payable until thirty-one days have elapsed after the completion of the contract.

In the matter of priority of liens and charges the order is as follows: (1) The claims of workers for wages not exceeding three months' wages and not exceeding £50; (2) the claims of workers for wages not included in the foregoing, and the claims of subcontractors; and (3) the claims of contractors. If notice of a lien or charge is not made before the completion of the contract or within thirty days of the completion, the claim will lose priority as against other claims of its own class, but will come before claims of the succeeding class.

All attachments or assignments granted by any employer or contractor shall be void against the charges or liens of subcontractors or workers for money due under the contract, except in the case of mortgages on land registered before the lien. In that case the mortgage shall have priority over the lien. If the mortgagee is a party to the contract, or if the mortgage secures any money that is advanced after notice of the lien has been given to the mortgagee, the lien shall have priority other the mortgage. In the case of the death, or bankruptcy of a person entitled to a lien or charge, if the debt secured by the lien or charge passes to any other person the right to the lien or charge passes with it.

No deduction from workers' wages may be made for purposes of insurance against, compensation for accident.

Liens to be imposed as security for miners' wages or earnings are dealt with under the Mining Act, 1926, and the Coal-mines Act, 1925.

Wages are further safeguarded by certain sections of the Bankruptcy Act, which give priority of payment for wages or salaries of workers (with certain limitations as to amount and period) in preference to certain other debts, and since the Bankruptcy Amendment Act, 1927, wages take precedence over rents. Similarly under the Companies Act wages (with the same limitations as under the Bankruptcy Act) are a first claim on the assets of a company being wound up. Under the Workers' Compensation Amendment Act, 1936, compensation payments rank with wages as a first charge on the assets of a bankrupt.

Various individual labour laws contain provisions with the special intent of protecting the payment of wages of the workers to whom such legislation applies.

HOUSING.

The first legal provision in connection with housing was contained in the Family Homes Protection Act, 1895, consolidated in the Family Protection Act, 1908. According to this provision it is possible, on certain conditions, to register any piece of land as a family home, so that the estate and interest of the settler and his family in it continue absolute and unaffected by any bankruptcy, assignment, judgment, &c. In 1898 inspection of shearers' accommodation was provided for; inspection of the housing of agricultural labourers and of flax-mill and sawmill hands was established by the Agricultural Labourers' Accommodation Act of 1908, and is continued under the Agricultural Workers Act. 1936, which supersedes the former enactment.

A Workers' Dwellings Act was passed in 1905, authorizing the Minister of Labour to erect dwellings to be let to bona fide workers at a rental of 5 per cent. per annum of the capital value of such dwellings; and, in the following year, a system of advances to workers for the purpose of acquiring homes was instituted. By an amendment passed in 1922, they could borrow for this purpose, after 1923, up to 95 per cent. of the value of their security. To cope with the post-war demobilization, the Housing Act of 1919 provided for the erection of dwellings not only by the State, but also by local authorities, employers, associations of public servants, and public-utility societies, the State advancing the money. The administration of this Act was later transferred to the State Advances Department, now the State Advances Corporation. Local authorities are also empowered to obtain special loans from the State Advances Corporation to erect workers' dwellings for letting, and are granted certain concessions in carrying out this activity by the Municipal Corporations Act, 1933. There is much incidental legislation, as in the Coal-mines Act and the Government Railways Act, where provision is made for the suitable housing of employees.

Housing regulations are contained in the Municipal Corporations Act, where definite measurements are laid down to prevent overcrowding, and provision is made for the appointment of Inspectors to reduce fire-risk and other dangers. Similarly the Health Act of 1920, which replaced the Public Health Act of 1908, provides for medical inspection and for sanitation minima; an owner may be ordered to cleanse or demolish his building, or to close it till certain alterations are made. The Town Planning Acts of 1926 and 1929 aim to develop and reconstruct areas in such a way as to promote their healthfulness and convenience.

In 1935, as a preliminary to measures for remedying the existing position in regard to housing, a Housing Survey Act was passed, instructing local authorities to ascertain as far as possible the extent to which the existing housing-accommodation in their respective districts falls short of reasonable requirements. At the same time a Native Housing Act empowered the Board of Native Affairs to make advances to Maoris for the purchase, erection, or repair of dwellings. Advances must be secured upon first mortgages of land or other securities approved by the Board, and the rate of interest may not exceed that charged by the State Advances Corporation.

The provision of housing-facilities for workers is a very important part of the policy of the present Government. Apart from the facilities for the building of homes provided for in the State Advances Corporation Act (see Section XXIVD), the Government has launched a comprehensive housing plan whereby the legislative machinery provided in the Housing Act, 1919, is being used to build homes to be let to workers at a reasonable rental. An account of the Government's housing programme under this Act is included in Section XXIII, Building and Construction (vide pp. 555-556). Further provision of housing-facilities in rural localities is contained in the Rural Housing Act, 1939, which empowers County Councils to advance money to a farmer to enable him to provide a dwelling for his own use or for the use of any farm worker principally employed by him.

Reference should also be made to the provisions of the Mortgagors and Lessees Rehabilitation Act, 1936, which is designed to lighten the burden of excessive mortgage indebtedness (see Section XXXII).

RENTS.

Certain sections of the War Legislation Amendment Act of 1916 dealt with house-rents, the maximum rent being fixed at 8 per cent. per annum of the capital value of the dwelling. Material alterations in the law were made by the Rent Restriction Act, 1926. Rent-restriction provisions were kept in force by annual continuing statutes up to 31st October, 1936, when the earlier legislation was superseded by the Fair Rents Act, 1936.

Provisions for statutory reductions in rent and interest payments were contained in the National Expenditure Adjustment Act of 1932, continued by the Finance Act, 1934, and made permanent in 1936; while Courts were given power to reduce rents and mortgage interest by the mortgage-relief legislation of the depression that was consolidated in the Mortgagors and Tenants Relief Act, 1932. The Fair Rents Act, 1936, replacing various measures referred to above, is briefly described in the following paragraph.

The Fair Rents Act, 1936, makes temporary provision for the restriction of increases in the rent of certain classes of dwellinghouses, and for the determination of fair rents in respect of such houses. The Act applies, generally speaking, to dwellings actually let at the time the Act was passed (June, 1936) or let at any time between 27th November, 1935, and the date of the passing of the Act. It does not apply to other dwellings or to any dwelling let at a rent exceeding £156 per annum. The rent of a dwelling coming within the scope of the Act may not be raised beyond the rent payable on 1st May, 1936; or, in the case of dwellings not let on that date, the rent last payable before that date. On application of either the landlord or the tenant, a Stipendiary Magistrate may declare a fair rent in respect of any dwelling to which the Act applies, having regard to various specified conditions—e.g., the relative circumstances of landlord and tenant. The fair rent is not to exceed the rent payable on 1st May, 1936, or the rent (if any) payable on 27th November, 1935. The grounds for the recovery of possession are limited by the Act, while restrictions are imposed on the right of the landlord to distrain. The Act was to remain in force till 30th September, 1937, but its operation has been extended from time to time, and the present expiry date is 30th September, 1940.

The Act did not apply to flats and apartment-houses, but an amendment passed in 1939 extended its provisions to cover buildings constructed for letting as more than two separate flats or apartments, all flats or apartments not originally constructed for letting separately, and flats and apartments where parts of premises are shared. The 1939 Amendment also made provision for the making of regulations for the purpose of regulating charges in respect of residential accommodation with attendance or services. Advantage of these powers has been taken to issue regulations restricting charges for such accommodation in Wellington City and its environs from 4th November. 1939, to 30th April, 1940 (the period of the Centennial Exhibition).

The Distress and Replevin Amendment Act, 1936, protects personal effects, furniture, &c., to the value of £50 from seizure under a distress order for rent. The pre-existing legislation on this subject did not protect such effects from seizure.

LABOUR DISPUTES.

Trade-unionists were early protected by the Trade-unions Act of 1873 from prosecution for conspiracy by reason merely that the purposes of the trade-unions were in restraint of trade. They were further protected by the Conspiracy Law Amendment Act of 1894, which laid down that any act by a union in furtherance of a trade dispute should not be deemed unlawful so as to render such persons liable to criminal prosecution for conspiracy if such act committed by one person would not ho deemed unlawful. This removed a very serious handicap under which unionists up to that time had suffered.

INDUSTRIAL CONCILIATION AND ARBITRATION ACT.

The original Industrial Conciliation and Arbitration Act was placed on the New Zealand statute-book in 1894. Its object was to encourage the formation of industrial unions and associations, and to facilitate the settlement of industrial disputes by conciliation and arbitration. It provided for the registration as “industrial unions” of societies of workers or employers in the various industrial districts, and as “industrial associations” of any council or other body representing any number of such unions; for the making of industrial agreements pursuant to the Act, and the filing of such in the Supreme Court; for the formation of industrial districts, the election of Boards of Conciliation, and the setting-up of a Court of Arbitration.

In 1898 an amendment was passed empowering the Court in its awards to prescribe minimum rates of wages, with special provision for a lower rate being paid in the case of workers unable to earn the prescribed minimum. An important amendment was passed in 1903 prohibiting any employer, worker, union of workers, or union of employers from taking proceedings to defeat any of the provisions of an award during its currency. It forbade an employer to dismiss any employee merely because he happened to be entitled to the benefit of an award or merely because he was a member of a union.

In 1905 an amendment was passed providing for the punishment by fine of any worker or employer bound by an award or industrial agreement affecting an industry who takes part in a strike or lockout in that industry. In 1908 an additional penalty was added in the case of certain “public utility” industries. such as gas-manufacture, the supply of milk or meat, tramway services, &c. By this amendment the constitution of Conciliation Boards was altered to provide for the appointment of four Conciliation Commissioners, whose duty it is to call together representatives of employers and employees in the event of a dispute arising, and to sit with these representatives as a Conciliation Council to endeavour to effect a settlement. The decision of the Council is not binding, but disputes must be referred to a Council before they may be referred to the Arbitration Court.

A further amendment in 1911 empowered the Court to make an industrial agreement into an award, provided such agreement does not conflict with an existing award or is not contrary to the public interest. It also provided that recommendations of Conciliation Councils become in effect industrial agreements if none of the parties to a dispute disagrees with such recommendations.

Section 18 of the War Legislation and Statute Law Amendment Act, 1918, empowered the Court to amend during the term of an award or industrial agreement the provisions of the award or agreement, in so far as they related to rates of remuneration or hours of employment. In varying the conditions, the Court was to take into account the movement in the cost of living and any changes in the special conditions affecting the industry concerned. This measure, which was designed to meet the abnormal conditions caused by the Great War, remained in force till 1923.

The law as it existed in 1925 was consolidated in that year, previous consolidations having been effected in 1900, 1905, and 1908.

In 1927 a Bill was introduced into Parliament to exclude from the jurisdiction of the Arbitration Court the farming industry and certain associated industries. The Bill met with considerable opposition and was not proceeded with. An amending Act was, however, passed providing that no award relating to any agricultural, pastoral, or dairying operations, or to any other work effected on a farm, or to the manufacture or production of butter, cheese, or other milk products should be made before 1st September, 1928. In the meantime it was arranged that a National Industrial Conference, representative of all interests concerned, should be held to go fully into this and other questions affecting labour and the relationships between employers and employees.

The conference duly met during the parliamentary recess, and after full discussion came to unanimous agreement on a number of matters, others being left over for further consideration. The provisions of the amendment of 1927 were re-enacted in 1928, another amendment extending for twelve months the period during which awards in the industries mentioned were not to be made, and also providing that no awards in these industries were to be altered or amended in the meantime without the consent of all parties concerned. The provisions referred to lapsed on 1st September, 1929.

A second amendment passed in 1928 permits of industrial agreements and (with the consent of the parties concerned) awards being made for or extended to a term of five years. This amendment also allows of an award or industrial agreement, in lieu of prescribing minimum rates of wages, prescribing a method or basis for calculating minimum rates.

As a result of depression conditions the Court was empowered by the Finance Act, 1931, to amend by general order awards or industrial agreements in respect of rates of wages, though power was given for the exclusion of any class or section of workers from the operation of a general order. In the next year compulsory arbitration was abolished; conciliation was still compulsory, but disputes could be referred to the Court only by mutual consent. Provision was also made for the review of existing awards.

The Industrial Conciliation and Arbitration Amendment Act, 1936, restored the full jurisdiction of the Arbitration Court, and also made several other amendments, the more important of which are summarized below:—

  • The Court is required to fix basic wages for adult male workers based on the needs of a man, wife, and three children, and also a basic wage for adult female workers. It must make general orders prescribing the basic wages, which will apply to all awards, &c., in force. (See previous heading—Basic Wage, &c.)

  • Restrictions are imposed on the formation of new unions in districts where a union in respect of the same industry exists; in fact, no such new union may be registered unless with the concurrence of the Minister of Labour.

  • Provision is made for the registration of New Zealand unions covering all existing workers or employees, if all or the majority of district unions concur. In cases where no district union exists at present a New Zealand union may be formed, subject to compliance with the requirements of the principal Act in respect of registration of unions.

  • All workers who are subject to any award or industrial agreement registered under the Act must become members of a union. (This applies also in respect of awards or agreements in force at the time of the passing of the amending Act.) It is not lawful for an employer to employ or continue in employment in any position or employment subject to an award or industrial agreement any adult person who is not a member. Non-members may, however, be employed in cases where union membership is limited and there are no union members available.

  • The Court may confer on union officials the right of entry on employers' premises.

  • Where it is deemed practicable the Court must fix the maximum hours of work per week (exclusive of overtime) at forty; while the Court may review existing awards to this end on application. The hours in such a review are to be fixed at forty, unless in the opinion of the Court such hours are impracticable. No reduction in weekly pay is to be made in consequence of reduced hours— i.e., the hourly rates are to be increased proportionately. The provisions stated in this paragraph came into operation on 1st September, 1936.

  • By the principal Act the maximum weekly union subscription was fixed at 1s. This limitation is now removed.

The administration of the Industrial Conciliation and Arbitration Act is in the hands of the Labour Department, and Inspectors of Factories are charged with the duty of seeing that the provisions of awards and agreements are carried out. The following paragraphs indicate the procedure followed in regard to industrial disputes under the Act:—

  • An industrial union (or association of unions) of workers registered under the Act may cite a union or association of unions of employers, or an employer, or a number of employers, before a Council of Conciliation for the hearing of an industrial dispute before a Commissioner and assessors appointed from either side.

  • An industrial union (or association of unions) of employers registered under the Act, or an individual employer, or employers, may cite a union of workers in a similar manner. The workers may compel any of their employers to come under the Act; but the employers cannot compel their workers to come under it, unless the latter have registered as an industrial union or association thereunder; registration is voluntary.

  • If a settlement of a dispute is arrived at by the parties in the course of an inquiry held before a Council of Conciliation, the terms of the settlement are set forth as an industrial agreement. Applications for exemption from the terms of the agreement must be made within one month after it has been filed. The Court is empowered to grant or to refuse such applications. Where an agreement applies to the employers employing the majority of workers in the industry to which it relates, the agreement may be made binding on all employers, whether parties or not.

  • Every such agreement shall be executed on behalf of the parties by the assessors representing the parties. If settlement cannot be arrived at before the Conciliation Council the matter is referred to the Court. The Council may at the same time submit a recommendation for the settlement of the dispute; whereupon the parties are notified of such recommendation, and if acceptable to them, the recommendation is made an industrial agreement; failing agreement the matter is referred to the Court.

  • If a dispute comes before the Court, argument is heard upon the matters in debate, and the Court then makes its award, which becomes binding upon the employers specified in the award, upon any employers commencing business in the district subsequently to the date of the award, and upon all persons working for such employers. In all cases where an industrial agreement or accepted recommendation or award is filed, it becomes binding on all the parties. When an award or industrial agreement has been filed, a strike or lockout becomes unlawful.

In addition to the powers mentioned above, the administration of the Apprentices Act, 1923, is placed in the hands of the Court, which also deals with workers' compensation cases.

An important amendment to the Act was passed during the 1939 session. This empowers the Minister of Labour, if he is satisfied that any discontinuance of employment brought about wholly or partly by any industrial union of employers or of workers has caused, or is likely to cause, serious loss or inconvenience, to cancel the registration of the union concerned or to cancel any award or industrial agreement so far as it relates to it.

As a war measure, regulations dated 4th October, 1939, pursuant to the Emergency Regulations Act, 1939, prohibit participation in a strike or lockout. Section 3 of these regulations reads as follows:—

During the continuance of these regulations no person shall:—

  1. Be a party to a strike or lockout; or

  2. Encourage or procure a strike or lockout or the continuance of a strike or lockout; or

  3. Incite any person or any class of persons or persons in general to be or continue to be a party or parties to a strike or lockout.

The regulations provide for the appointment of an appropriate tribunal to deal with any dispute which, in the opinion of the Minister, would be likely to result in a strike or lockout, and the decision of the tribunal shall be final and binding on all persons directly affected by the dispute.

LABOUR DISPUTES INVESTIGATION ACT .

Machinery for dealing with all disputes to which the Industrial Conciliation and Arbitration Act does not relate is contained in the Labour Disputes Investigation Act, 1913.

Under this Act, if a dispute concerning wages or other conditions of employment arises between a society (or societies) of workers, whether registered or not, that is not bound by any award or industrial agreement, and its employers, the society must, before it may strike, give to the Minister of Labour formal notice of the dispute, setting forth the names of the parties to the dispute and the claims made by the society. The Minister then refers the dispute to a Conciliation Commissioner to call a conference, or to a “Labour Disputes Committee” for investigation and recommendation. Such a committee consists of from one to three members chosen from each side, with an independent chairman. In the event of no settlement being arrived at a secret ballot is taken by the Registrar of Industrial Unions among the members of the society as to whether, in the case of no recommendation having been made, a strike should eventuate; or, in the case of a recommendation having been made, as to whether the recommendation should be adopted. Seven days' notice must be given to the employers should a strike be decided upon.

Similar provisions apply with reference to the fifing of a dispute and to a lockout by the employers.

In the event of an agreement being arrived at it may be filed with the Clerk of Awards. It is then enforceable in the same manner as an industrial agreement under the Industrial Conciliation and Arbitration Act.

By this Act the principle of settlement of industrial disputes by conciliation and arbitration is extended to workers outside the scope of the Arbitration Court, so that definite restrictions on the right to strike or to lockout exist over the whole field of industry in New Zealand. The powers under this Act are not, of course, as far-reaching as those under the Arbitration Act, its main object being that workers or employers should take time for consideration of the points at issue and not precipitate themselves into industrial strife.

APPRENTICES.

This subject was the earliest one dealt with by labour legislation. Following the Master and Apprentices Act of 1865, came section 23 of the Offences against the Person Act, 1867, which protected servants and apprentices from ill-treatment by their employers. The original Master and Apprentices Act soon became out of date, and most of the conditions of employment of apprentices were for many years fixed by awards and industrial agreements under the Industrial Conciliation and Arbitration Act. As a result of the feeling that the fixing of the conditions of employment of apprentices should not be the subject of an industrial dispute between employers and unions of workers, and that the shortage of apprentices and skilled workers necessitated special attention, the Apprentices Act was passed in 1923. The employment of apprentices is accordingly now controlled by special orders of the Court of Arbitration, acting independently of its powers under the Industrial Conciliation and Arbitration Act, and by Apprenticeship Committees, the setting-up of which in the various industries and localities is provided for. The Court may delegate many of its powers to these Committees, but aggrieved persons have the right of appeal to the Court, whose decision is final. An amending Act in 1930, inter alia, authorizes an Apprenticeship Committee to refer to the Court for decision any matter on which the Committee cannot come to a decision. Also the Court may, in certain circumstances, authorize the District Registrars appointed under the principal Act to exercise the powers of Apprenticeship Committees.

Power is given by the Apprentices Act to compel employers to take and teach a minimum number of apprentices, in order to ensure as far as possible that the future requirements of the industries may be met. The Act of 1923 restricted employers to a maximum proportion of apprentices to journeymen, but this section of the Act was repealed in 1927.

Full power is given by the Apprentices Act to ensure that both the employers and the apprentices carry out their obligations. These powers include cancellation of apprenticeships, transfer, examination, and technical-school attendance of apprentices, and also power to prohibit certain employers from taking apprentices. All contracts of apprenticeship and all voluntary transfers and cancellations of apprenticeships must now be registered, and it is the duty of the District Registrars to see before registering apprenticeships that the conditions are in accordance with the Act and orders thereunder, and are otherwise just to both parties. There is, however, a right of appeal from their decisions to the Court. The Registrar and District Registrars are also charged with the duty of seeing that the Act and decisions thereunder are generally complied with. By the 1930 amendment of the Act, the Court is empowered, on the bankruptcy of an employer, to order payment of an amount not exceeding three months' wages from the estate in respect of the period intervening between the time the apprentice is deprived of employment and the time when he receives other employment as an apprentice in the same industry.

Provision is made to enable employers in intermittent trades, such as building, who perhaps cannot continuously employ apprentices, to take them jointly, in which case the employers are jointly liable; also to enable adults and others already possessing a knowledge of an industry to enter into apprenticeship under such conditions, other than those generally provided for apprentices, as the Committee or Court may approve.

In order to encourage young persons to enter the skilled trades and avoid “blind-alley” occupations, the Act provides for collaboration with the head teachers in the various schools, who are required to watch the progress of the children under their care, and to report to the District Registrars of Apprentices as to the character, aptitude, and attainments of the various children leaving the schools. On receipt of such reports it is the duty of the District Registrars to give such advice as may be in their power to assist the children or their parents or guardians to decide on the most suitable employments. Juvenile employment bureaux also operate free of charge to all parties concerned.

With a view to assisting the Director of Education in shaping the courses of education so that the labour requirements of the various industries of the Dominion may be met so far as possible the Act also provides that the Director shall be apprised from time to time of the number of persons employed in skilled industries, with information as to the prospects of future employment therein.

By the Finance Act, 1931, the Arbitration Court was empowered to amend by general order the rates of remuneration fixed by apprenticeship orders. A year later the Finance Act, 1932, made provision for the amendment, suspension, or cancellation of contracts of apprenticeship on application to a Stipendiary Magistrate, who was empowered to vary or cancel apprenticeship contracts if satisfied that the employer could not be reasonably expected to carry out the terms of the contract. This provision was repealed by a section in the Finance Act, 1936; the repeal does not, however, revive contracts already cancelled or apply to orders made before the passing of the Act. Rates of remuneration were restored to the 1931 level by the Finance Act, 1936. During the depression period the number of apprentices fell away to very small proportions (from 10,227 in 1928 to 3,329 in 1935), and to assist in remedying the position the Statutes Amendment Act, 1936, made provision for special contracts applicable to persons eighteen years of age and over embodying such terms and conditions as the Minister of Labour might approve.

WORKERS' COMPENSATION.

Common-law rights of the worker in respect to compensation wore early increased by the Employers Liability Act of 1882; while the Deaths by Accidents Compensation Act, 1908, gives a right of action which did not exist at common law to certain of the relatives of a person killed by a wrongful act.

The Law Reform Act of 1936 contains several provisions of particular relevance to the subject of workers' compensation. The Act, inter alia, creates a charge on all insurance-moneys payable as indemnity for compensation, and makes the charge apply immediately on the happening of the event giving rise to the claim. Similar provisions (now repealed) existed in the Workers' Compensation Act, 1922, but under that Act no charge was created unless the insured was insolvent or became bankrupt. Another provision of particular interest in the Law Reform Act is the abolition of the defence of “common employment”: which defence depended on a rule that damages could not be recovered from an employer in respect of the negligence of a fellow-servant. A similar provision in the Workers' Compensation Act (but with a limit of £1,000 damages) is consequentially repealed.

The Workers' Compensation Act, 1922, with its amendments of 1922, 1926, and 1936, represents the existing law on workers' compensation—subject to the provisions briefly outlined in the preceding paragraph. The 1936 amendment, which came into force on 1st January, 1937, contains several important amendments to the previous legislation. The definition of “worker” is extended to include share-farmers and drivers of vehicles who receive a share in the takings as payment for their services, or who pay a fixed sum for the hire of the vehicle (other than under the terms of a hire-purchase agreement). While a share-farmer now comes within the provisions of the Act, he is still regarded as the employer in respect of persons employed by him.

The minimum amount of compensation payable in respect of the death of a worker is increased from £300 to £500, the maximum payment remaining at £1,000. The minimum weekly payment in respect of the incapacity of an adult worker is increased from £1 to £2; while the maximum weekly payment is raised from £4 to £4 10s. The special provisions in relation to workers under twenty-one years of age or indentured apprentices are broadened by the inclusion of a subsection covering cases of temporary incapacity.

The method of computing the basis of compensation has been changed. Previously the amount of compensation was based on the worker's average weekly earnings at the time of the accident; by the amending Act the term “weekly earnings” is defined as a full working-week's earnings at the ordinary rate of pay for the work in which the worker was employed at the time of the accident, notwithstanding that he may not have actually worked, or the employment may not have actually continued, for a full week.

The amending Act contains a provision whereby claims for compensation rank equally with wages in the distribution of the assets of a bankrupt.

“Worker,” for purposes of the Workers' Compensation Act, means any person who has entered into, or works under, a contract of service or apprenticeship with an employer, whether by way of manual labour, clerical work, or otherwise, and whether remunerated by wages, salary, or otherwise; but does not include any person employed otherwise than by way of manual labour whose remuneration exceeds £400 per annum. The Act applies only to the employment of a worker under a contract of service or apprenticeship either in and for the purposes of any trade or business carried on by the employer, or in any of the following occupations, irrespective of whether or not carried on for purposes of the employer's trade: mining, quarrying, excavation, cutting of standing timber and scrub, clearing land, erection or demolition of buildings and other structures, manufacture and use of explosives, handling power machinery in motion, driving vehicles, domestic service (engagement for not less than three days), and any occupation in which a worker incurs a risk of falling any distance exceeding 12 ft., if the injury to, or death of, the worker results from such a fall. For purposes of this provision, an employer may have more than one trade or business. In general, persons working as independent contractors are not under contracts of service or apprenticeship, and are consequently not “workers.” But by way of exception persons who have contracted to perform any work in a gold- or coal-mine, or to cut standing timber or scrub, or to clear land of stumps or logs, and who do not sublet the contract or employ labour (or who, if they do employ labour, actually perform part of the work themselves), though not “workers,” are yet covered by the Act.

The worker is not entitled to compensation unless he sustains by accident arising out of and in the course of his employment, and happening within New Zealand or on a New Zealand ship, personal injury incapacitating him from carrying on his occupation. No compensation is payable in respect of any accident as above defined which is attributable to the serious and wilful misconduct of the worker injured, unless the injury results in death or serious and permanent disablement. No compensation is payable in respect of the death of a worker following on, or incapacity resulting from, or aggravated by, unreasonable refusal to submit to medical or surgical treatment. Except under certain safeguarding restrictions. “contracting out” is forbidden

Certain defined diseases are deemed to be personal injuries by accident if they arise within twelve months previous to the date of disablement and are due to the nature of the employment. There is power under the Act for the list of such diseases to be added to from time to time by regulation, as circumstances warrant the adoption of such a course.

Generally speaking, the employer is the person liable to pay compensation; and for this purpose “employer” includes any body of persons, corporate or unincorporate, the Crown (with certain minor exceptions), and the representatives of a deceased employer. Where a person (the principal), in the course of and for the purposes of his trade or business, contracts with another (the contractor) for the execution by the latter of work undertaken by the former, a workman employed by the contractor on meeting with an accident may claim compensation from either the principal or the contractor, except in certain cases. If the principal pays, he may, however (with certain minor exceptions), recover the amount from the contractor. The principal is not liable unless the accident occurs on or about his land, premises, or ship; or on or about land, premises, or ship on or in which the principal has contracted to do the work in connection with which the accident happens. Where the injury for which compensation is payable has resulted under circumstances creating a legal liability in some person other than the employer to pay damages in respect thereof, the person by whom the compensation is paid or payable is entitled to indemnification by the person so liable.

The Workers' Compensation Amendment Acts of 1926 and 1936 amended the Act of 1922 in the direction of raising the limits of compensation. The compensation payable is at present as follows:—

  1. In case of death: Reasonable expenses of medical or surgical attendance, including first aid, and of funeral (maximum, £50), less any sums paid by way of compensation for the accident prior to the death of the person injured; but plus—

    1. Where he leaves total dependants, a sum equal to 208 times his average weekly earnings, or the sum of £500. whichever is the larger, but not exceeding £1,000; or

    2. Where he leaves partial dependants only, a sum reasonable and proportionate to the injury to those dependants, but not exceeding the sums specified in (a).

  2. In case of injury: At the discretion of the Court, either—

    1. During total incapacity, weekly payments amounting to 66⅔ per cent. of a full working week's earnings at the ordinary rate of pay for the work on which the worker was employed at the time of the accident, notwithstanding that he may not have actually worked or the employment may not have actually continued for a full week (maximum £4 10s. per week; minimum £2); during partial incapacity, weekly payments amounting to 66⅔ per cent. of the difference between the amount of the average weekly earnings before the accident and the average weekly amount which the worker is earning or able to earn in suitable employment or business after the accident, but not. exceeding £4 10s. per week; or

    2. A lump sum equal to the present value at 5 per cent. per annum compound interest of the aggregate weekly payments which, in the opinion of the Court, would probably become payable to the worker under (a).

Weekly payments are not to extend over a longer aggregate period than six years, and the aggregate amount is not to exceed £1,000. In the case of the temporary incapacity of an apprentice or a worker under twenty-one years of age, the weekly payment must not exceed an amount equal to a full week's earnings at the time of the accident.

In addition to 2 (a) and 2 (b) above, a sum not exceeding £1 is payable in respect of medical and surgical attendance and first aid to the worker in respect of his injury. No compensation is payable if incapacity lasts less than throe days. In the case of certain injuries involving permanent disability (e.g., dismemberment or loss of use), compensation is assessed according to a special scheme representing a proportion (varying according to the nature of the dismemberment) of the compensation payable in the case of total incapacity. In the case of injury to workers whose earnings at the date of the accident are low by reason of their being at the time under twenty-one, or of their being apprenticed to a trade, &c., and in certain other specified cases, special provisions exist in order to prevent hardship.

Proceedings under the Act in respect of compensation for injuries are not maintainable by a worker unless written notice of the accident has been given to the employer as soon as possible after its occurrence: though the Court has power to excuse failure, due to reasonable causes, to give that notice, on the part of the person injured, or if it is clear that the absence of such notice has not prejudiced the employer's position. Except where the Court excuses delay resulting from mistake or other reasonable cause, proceedings must be taken within six months of the date of the accident or the date of the last payment of compensation in respect of injury, or the date of the death of the person injured, whichever is the later. Such proceedings are taken in the Arbitration Court, though in certain cases they will be heard in a Magistrate's Court. The Court may accept, admit, and call for such evidence as in equity and in good conscience it thinks fit, irrespective of whether strictly legal evidence or not. Costs lie in the discretion of the Court. There is no right of appeal, but for good cause orders or agreements in respect of compensation may be reviewed and even set aside by the Court at any time.

The right of a dependant who survives a worker to receive compensation for the death of that worker survives the dependant; and compensation can be recovered by the representative of that dependant.

UNEMPLOYMENT.

Prior to the recent depression period there was little permanent effective legislation to cope with the problem of unemployment. In 1895 a Servants Registry Act provided for the inspection of servants registry-offices and regulated the fees charged therein. The Labour Department was founded in 1891 and attempted, particularly through its Employment Bureaux, to cope with the problem. In 1928 a Committee was set up to examine this matter, which was becoming increasingly more serious; and, following on the presentation of its report, an Unemployment Act was placed on the statute-book during the 1930 session of Parliament.

An Unemployment Board was established to assist in the administration of the Act. The Board, as reconstituted in 1931, consisted of the Minister charged with the administration of the Act (Chairman), the Commissioner of Unemployment, and three members appointed by the Governor-General. The main functions of the Board as set out in the Act were: (1) To make arrangements with employers or prospective employers for the employment of unemployed persons; (2) to take such steps in accordance with the provisions of the Act as it considered necessary to promote the growth of primary and secondary industries in New Zealand, so that an increasing number of workers would be required for the efficient carrying-on of such industries; (3) to make recommendations for the payment of sustenance allowances out of the Unemployment Fund.

The Act of 1930 authorized the payment of sustenance allowances out of the Unemployment Fund, but the activities of the Board were directed towards the placing of men in employment in preference to the payment of sustenance, the funds being mainly devoted to the subsidizing (or refunding in full) of wages of men for whom work was provided under various relief schemes. A 1934 amendment to the Act, inter alia, repealed a subsection of the original Act, which, in effect, had limited to a maximum of thirteen weeks the unbroken period during which sustenance might be paid to any one individual.

The Employment Promotion Act, 1936, replaced the Unemployment Act, 1930, and other legislation relating to unemployment, the earlier legislation being consequentially repealed. The Unemployment Board was abolished, the new Act being administered by the Department of Labour. An Employment Promotion Fund was established (deemed to be the same fund as the Unemployment Fund established under the Unemployment Act, 1930), the revenue of the Fund being derived from the employment tax, fees and penalties under the Act, and any other moneys appropriated by Parliament for the purpose. The main purposes for which the moneys in the Fund were to be utilized were defined as follows:—

  1. The development of primary and secondary industries in New Zealand, and the establishment of new industries, so that an increasing number of workers will be required for the efficient carrying-on of such industries:

  2. The making of arrangements with employers or prospective employers for the employment of persons who are out of employment:

  3. The assistance, in accordance with the provisions of the Act, of persons who are out of employment or are otherwise in need of assistance.

By the Social Security Act, 1938, provision was made for unemployment benefits, superseding the former sustenance, to become available as from 1st April, 1939. The Employment Promotion Fund was abolished as from 30th September, 1939, and the moneys transferred to the Social Security Fund. The amounts of, and qualifications for, benefits will be found on pages 632-633 of this book.

Although the Employment Promotion Act was repealed by the Social Security Act, the functions of the Employment Division of the Labour Department are being continued along the lines of fostering the promotion of work and industry for the absorption of surplus labour, and the placing in close contact of employers with employees through the medium of the State Placement Service. Funds for this purpose are now provided from the Consolidated Fund. Particulars of the various measures in operation and of the work of the State Placement Service will be found in Section XL, Employment and Unemployment.

The Immigration Restriction Amendment Act of 1931, which empowered the Governor-General to make regulations restricting the number of immigrants entering the country aimed, inter alia, at preventing an unwanted inflow increasing the number of those unemployed. Its operation was extended in 1933 and 1935, and it expired on 31st December, 1936.

PUBLIC WORKS PROGRAMME.

The development of New Zealand to its present stage within a century has involved the prosecution of a vigorous public-works policy. In the circumstances, public works afford an avenue of employment for a large body of wage-earners; and, consequently, a résumé of the conditions obtaining on such works forms an essential part of the subject-matter of this section. The Minister of Public Works in a statement of public-works policy laid before Parliament in May, 1936, outlined the Government's policy in relation to public-works employees. An agreement with the workers was drawn up dating from 1st June, 1936, and was to remain in force for three years. Following is a summary of the main provisions of the agreement:—

The hours of work were fixed at forty per week—five days of eight hours.

All works were classified as standard works—i.e., no such works were to be regarded as relief works, and the basic rate of pay is 16s. per day. A regulated scale of hourly rates was drawn up ranging from the basic rate of 2s. per hour to a maximum of 2s. 10d. according to the degree of skill and danger involved in the various occupations.

The system of co-operative works was adopted as a principle, the scales of piecework payment being designed so that a worker of average ability could earn the basic rates of wage.

Workers were paid for seven statutory holidays in the year; and, in addition, after one year's service, a worker was to receive one week's annual leave on full pay, and after two years' service two weeks' annual leave on full pay.

Improvements in accommodation on works were provided for in the agreement, with recreation facilities on large works.

The main provisions of the agreement are still in force, but in October, 1939, an increase of 1½d. per hour, equal to 5s. per week, in the rates of pay was announced. In addition, married men who are required to leave their homes and accept single men's accommodation in public-works camps are now paid a special allowance of 5s. per week. The general increase of 5s. per week raises the minimum wage on public works to £4 5s. per week.

Chapter 39. SECTION XXXIX.—TRADE-UNIONS.

INTRODUCTORY.

IN New Zealand dual provision for the registration and protection of unions of workers and employers exists in the Trade-unions Act and the Industrial Conciliation and Arbitration Act, and further provision has been made in the Industrial Conciliation and Arbitration Amendment Act, 1936, reference to which is made in the preceding section of this volume. The 1936 Amendment resulted in a considerable increase in membership of unions both of employers and of workers.

Provision was made under section 7, subsection (17), of the Industrial Conciliation and Arbitration Act, 1900 (now section 17 of the Industrial Conciliation and Arbitration Act, 1925), for the furnishing of an annual return showing the number and membership of unions registered under the Act. It is from this return (vide Parliamentary Paper H.-11) that the tables in this section have been compiled. Very little information is available as to registration of unions under the Trade-unions Act, which is now practically inoperative. Several of the few unions still registered under this Act are also registered under the Industrial Conciliation and Arbitration Act.

INDUSTRIAL UNIONS OF EMPLOYERS.

The numbers and membership of industrial unions of employers registered under the Industrial Conciliation and Arbitration Act as at the end of each of the last five years are shown in the following table.

As at 31st December,Industrial District.
Northern.Wellington.Canterbury.Otago and SouthlandTaranaki.Marlborough.Nelson.Westland.North Island.South Island.Dominion.Totals.
Number of Unions.
1934273229267331......128
1935293529247331......131
19363969313011272217201
193746803835123832210239
193846844035123842212248
Membership.
19349858641,14085415677283......4,107
19351,0379761,10994515790255......4,344
19361,1711,597919849314291001919121,4136,442
19371,6841,8281,154904266311313924292,3518,441
19381,9221,8881,2681,033357361116926212,4009,131

The number of unions of employers and their membership rose gradually to 149 unions, with 5,819 members, in 1914, the year following that of the prolonged waterside workers' strike. Since that year there have been many slight variations, and considerable decreases in membership were recorded in 1931, 1932, and 1933. The effects of the 1936 Act are seen in the increases of approximately 50 per cent., 30 per cent., and 8 per cent. respectively in the last three years. A good deal of duplication, however, exists in employers' union membership, many employers belonging to two or more unions.

INDUSTRIAL UNIONS OF WORKERS.

Industrial unions of workers and their membership are shown in the following table as at the end of each of the last five years. It should be noted that the statistics cover only unions registered under the Industrial Conciliation and Arbitration Act, and that all unions are not so registered.

The membership of workers' unions rose year by year, without exception, from 17,939 in 1900 to 73,991 in 1914. It fell off during the war years, but a phenomenal rise was recorded in 1919, the year immediately following the cessation of hostilities. The total for 1928 (103,980) was the highest recorded up to and inclusive of 1935, but falls far below the present figures.

As at 31st December,Industrial District.
Northern.Wellington.CanterburyOtago and Southland.Taranaki.Marlborough.Nelson.Westland.North Island.South Island.Dominion.Totals
Number of Unions.
19341008068951781815....3404
19351018367951991815....3410
1936114956711130132721....9487
1937111907011229153027....17501
19381028462103281227261120466
Membership.
193419,43416,73812,14010,8511,2405226151,897....10,95474,391
193521,66119,06613,14011,3621,1796066691,900....11,34680,929
193655,28338,53822,46820,8524,2936371,8193,522....38,115185,527
193752,78649,66927,28624,1383,5767892,0683,219....69,455232,986
193861,73848,44625,81323,0043,8088471,8382,8442833880,572249,231

In the following table industrial unions of workers are classified according to membership:—

Year.Under 50.50 and under 100.100 and under 200.200 and under 300.300 and under 500.500 and under 1,000.1,000 and under 2,000.2,000 and under 3,000.3,000 and over.Totals.
Number of Unions.
1901994330195411..202
193416880563728231011404
193516586523140191511410
193613885954543363357487
19371457890485039261213501
19381317473474641271017466
Membership.
19012,7593,0184,0324,8152,0732,5201,6512,900..23,768
19344,2505,5387,6258,90010,48315,94212,8642,2006,58974,391
19354,2286,0366,8037,34014,44212,29319,3352,4528,00080,929
19363,9845,88213,69310,88016,25626,28047,28311,67149,598185,527
19373,8095,43112,79911,52418,74328,93835,19629,61486,932232,986
19383,6185,21910,20111,34917,70829,56837,34624,146110,076249,231
Percentage of Total Membership.
190111.6112.7016.9620.268.7210.606.9512.20..100.00
19345.717.4510.2511.9614.0921.4317.292.968.86100.00
19355.227.468.419.0717.8415.1923.893.039.89100.00
19362.153.177.385.868.7614.1725.496.2926.73100.00
19371.642.335.494.958.0412.4215.1112.7137.31100.00
19381.452.094.094.557.1111.8614.999.6944.17100.00

There has been a more or less steady growth in the average size of workers' unions, the trend being to a certain extent obscured at times by the cancellation of registration by some large unions, the members of which joined other newly created organizations restricted according to locality. The 1936 Act, providing for compulsory union membership on the part of workers subject to an award or industrial agreement has, of course, been responsible for the great increase in that year and subsequently.

INDUSTRIAL AND GEOGRAPHICAL DISTRIBUTION.

In the next table industrial unions of employers as at the end of 1938 are shown according to industrial group, and membership according to industrial group and district.

Industrial Group.Membership—Industrial Districts.Number of Unions.
Northern.Wellington.Canterbury.Otago and SouthlandTaranaki.Marlborough.Nelson.Westland.North Island.South Island.Dominion.Totals.
Provision of—             
  Food, drink, Ac.742491260319254..45......592,17047
  Clothing, footwear, and textiles7114161612..6........29713
  Building and construction278312234191181126......1221,19234
  Power, heat, and light847397............5831210 
  Transport by water172725129765....2413214
  Transport by land1584761143..............4098
  Accommodation, meals, and personal service28343130514957181664..15..1,33837
Working in or on—             
  Wood, wicker, seagrass and fibre77574413..............19112
  Metal61403026............2217913
  Stone, clay, glass, and chemicals..65............146..856
  Paper, printing, &c.869946467......12....29621
  Skins, leather, &c.92274..............427
  Mines and quarries1....19..............203
  Land (farming pursuits)2410407....12......2,0672,16011
  Miscellaneous11562821............4830812
Totals1,9221,8881,2681,033357361116926212,4009,131248

Prior to the year 1936 the membership of unions of agricultural and pastoral employers was remarkable, inasmuch as it was between one-fifth and one-sixth of that of similar unions of workers, the reason being that the greater part of the worker membership consisted of seasonal workers, such as shearers and threshing-mill employees, who are engaged by several employers during the season. The rural workers' union, however, now has more than twenty-nine thousand members, and the disproportion referred to has been eliminated.

Similar information to that given for industrial unions of employers is now given for workers' unions, as at the end of 1938.

Industrial Group.Membership—Industrial Districts.Number of Unions.
Northern.Wellington.Canterbury.Otago and SouthlandTaranaki.Marlborough.Nelson.Westland.North Island.South Island.Dominion.Totals.
Provision of—             
Food, drink, &c.7,4484,3704,1113,8634049041966283382,83423,92777
Clothing, footwear, and textiles5,1974,6393,3852,604......10......15,83526
Building and construction10,1719,5834,6593,403964234234156....1,40030,80470
Power, heat, and light1,232780..191166..........9693,3385
Transport by water1,5482,087114547............8,00712,30322
Transport by land5,0073,0621,6861,529403108240130....17,20229,36727
Accommodation, meals, and personal service5,7505,5002,7991,876476160239430......17,23029
Working in or on—             
Wood, wicker, seagrass, and fibre1,5711,76486253377..932....7,89912,74722
Metal4,328622245702............5,00010,89720
Stone, clay, glass, and chemicals1,431297..53451..70......2722,65518
Paper, printing, &c.1,2901,44559674158..35......364,20117
Skins, leather, &c.4341998272..............7879
Mines and quarries1,756..3053354..531,425......3,85126
Land (farming pursuits)39716120..............28,92229,4555
Miscellaneous14,17714,0827,1245,8761,155255539559....8,06751,83493
Totals61,73848,44625,81323,0043,8088471,8382,8442833880,572249,231466

INDUSTRIAL ASSOCIATIONS.

At 31st December, 1938, there were 20 industrial associations of employers and 39 of workers, the former having 124 affiliated unions and the latter 229. The following summary shows the number of industrial associations of employers and workers in each industrial group, with the number of affiliated unions in each case.

Industrial Group.Employers.Workers.
Associations.Affiliated Unions.Associations.Affiliated Unions.
1937.1938.1937.1938.1937.1938.1937.1938.
* This Association was practically defunct prior to 31st December, 1937, although its registration was not cancelled until subsequent to that date; it is therefore shown as having no affiliated unions.
Provision of—        
Food, drink, &c.442324662131
Clothing, footwear, and textiles1*..*..431914
Building and construction332726555147
Transport by water1110102255
Transport by land1154211812
Accommodation, meals, and personal service1222261199
Working in or on—        
Wood, wicker, seagrass, and fibre1236542121
Metal1144341813
Stone, clay, glass, and chemicals..1..432105
Paper, printing, &c.221212231320
Skins, leather, &c.11331144
Mines and quarries........1122
Land (farming pursuits)1133........
Miscellaneous1122966546
Totals18201141244439256229

PROPORTION OF UNIONISTS

The following table, showing the proportion of workers belonging to unions registered under the Industrial Conciliation and Arbitration Act to the total number of wage-earners in the country, is of interest as manifesting the movement in and the extent of trade-unionism during the period under review. The figures given for total wage-earners are derived from census enumerations and would include professional, business, and other classes in which trade-unionism prior to the passing of the amending Act of 1936 did not exist, and agricultural and pastoral occupations where it was practically non-existent. In addition, females are included in both sets of figures, although the proportion of women unionized during the period covered by the table was negligible:—

Year.Total Wage-earners.Year.Numbers of Workers on Rolls of Registered Unions.Percentage of Wage-earners on Rolls of Registered Unions.
1901 (March)224,3461900 (December)17,9898
1906 (April)269,0391905 (December)29,86911
1911 (April)304,2721910 (December)57,09119
1916 (October)302,1611916 (December)71,58724
1921 (April)370,6921920 (December)96,35026
1926 (April)414,6731925 (December)101,07124
1936 (March)499,7971935 (December)80,92918

Since 1936 there has been a substantial increase in the membership of unions as a result of the 1936 amendment to the Industrial Conciliation and Arbitration Act, and the proportion of wage-earners belonging to registered unions at the end of 1938 is estimated at 47 per cent.

Chapter 40. SECTION XL. — EMPLOYMENT AND UNEMPLOYMENT.

INTRODUCTORY.

EXCEPT for occasional returns relating to State unemployment relief which were presented to Parliament from time to time, practically no direct statistical evidence as to the extent of unemployment in New Zealand prior to 1892 is available.

Unemployment was well known to have been acute in the middle and late “sixties,” owing to the paralysing effect of the Maori wars in the North Island and to the collapse of the alluvial-gold booms in Otago and Westland. With the inauguration, at the beginning of the “seventies,” of the Vogel policy of public works and assisted immigration, employment was available for large numbers of new arrivals. At the beginning of the “eighties” scarcity of funds for the prosecution of public works, along with other considerations, necessitated the checking for a space of the stream of assisted immigrants. By 1883 the position had materially improved; but unemployment once more became serious in the late “eighties” and early “nineties,” mainly owing to the fall in the prices that New Zealand's products (notably wool) were fetching overseas, and to a further slackening of the rate of prosecution of public works. During both of these periods the unemployment position was so acute as to be responsible for a considerable exodus of male population to Australia and elsewhere.

Direct statistical evidence as to the extent of unemployment in New Zealand is available from the census (since 1896) and from the records of the Labour Department (since 1892). In addition, statistics of unemployment among trade-unionists were collected from trade-union secretaries by the Census and Statistics Department from 1925 to 1930. Certain data as to employment are also available, and are referred to at the end of this section.

CENSUS DATA ON UNEMPLOYMENT.

The great disadvantage of the Census inquiry as an indicator of the trend of unemployment is that it provides data at quinquennial intervals only.

Census.Number of Mules Unemployed.Proportion per Thousand Male Wage-earners.
12th April, 189614,759100
31st March, 19018,46748
12th April, 19068,18939
2nd April, 19117,15230
15th October, 19165,92026
17th April, 192111,06139
20th April, 192610,69434
24th March, 193635,84695

The 1936 figure includes men on rationed relief work, but excludes men (16,252) partly unemployed but not on relief work.

STATE EMPLOYMENT BUREAUX.

From the creation of the Department of Labour in 1891 until the passing of the Unemployment Act in 1930 the functions of Government employment bureaux were almost entirely confined to efforts to place in employment those persons who chose to register thereat as desirous of obtaining work. The circumstances of such persons would not, of course, necessarily have entitled them to register as “unemployed” under the subsequent unemployment legislation and, on the other hand, there was no obligation on, and no precise incentive to, persons who would have been so entitled, to make application at a bureau. The numbers of placements effected through the agency of the bureaux were generally from two thousand to six thousand per year, and only once during the first twenty-five years of the operation of the system (in 1909) did they exceed ten thousand: from 1926 onwards the numbers rose rapidly, passing the twenty-thousand mark in 1930, but these figures are obviously not comparable with the numbers of those afforded relief under the system subsequently in vogue, which made registration an essential preliminary to the granting of relief.

UNEMPLOYMENT RELIEF.

The considerable increase in unemployment, which commenced in 1926, eventually led to the passing of the Unemployment Act, 1930. This Act, with its various amendments, was administered by the Unemployment Board until it was superseded by the Employment Promotion Act, 1936. Thereafter administration was vested in the Department of Labour.

Under the relief schemes which were first instituted, registration at a labour bureau was a pre-requisite to the granting of relief; but under some of the schemes subsequently evolved, subsidies were granted on works or to industries on or in which a varying number of men who were not eligible to register as unemployed might be engaged.

For nearly three years after the passing of the Unemployment Act no unemployment relief was given except in return for the performance of work, which was provided through the agency of private individuals or firms, companies, local authorities, or Government Departments. But the increasing difficulty of finding work of a suitable nature, particularly in the vicinity of the larger centres of population, eventually led to the payment of sustenance without work, to which further reference is made later in this section.

It will be seen, then, that at any given time persons actually or prospectively in receipt of either direct or indirect benefits from the Unemployment Fund (or, later, the Employment Promotion Fund) may have consisted of any or all of the following classes:—

  1. These registered for relief but not considered to be immediately eligible, or whose circumstances were subject to further investigation.

  2. Those in receipt of sustenance without work.

  3. Those in part-time (rationed) work whose wages were generally paid wholly from relief funds.

  4. Those in full-time work whose individual wages were subsidized from relief funds at a fixed rate per unit of time.

  5. Those employed on works the wages cost of which was subsidized.

  6. Those employed in industries which received financial assistance from relief funds with the object of enabling them to function in such a manner as to provide employment which would not otherwise be available.

The relative numerical proportions of men falling into these various classes has varied greatly from time to time, and, owing to the diverse nature of the relief schemes which have operated during different periods, this variation has been irregular in character.

The policy in regard to the publication of current official unemployment statistics by the Unemployment Board during its tenure of office, and subsequently by the Department of Labour, underwent several changes, involving mainly the inclusion or exclusion of men in full-time subsidized employment, and therefore comparable figures have not always been available during the period. In the Animal Report of the Employment Division of the Department of Labour for the year ending 31st March, 1939, however, a complete statement from June, 1931, to March, 1939, is given, and this, in a condensed form, is reproduced hereunder:—

NUMBERS OF MALES REGISTERED AS UNEMPLOYED AND NUMBERS IN RECEIPT OF RELIEF FROM THE EMPLOYMENT PROMOTION FUND.

Remaining on Registers, but unplaced or ineligible for various Reasons.In receipt of Part-time Relief Work or Sustenance.Working Full Time in Industry with assistance from Employment Promotion Fund.Total on Registers and wholly or partly a charge on the Employment Promotion Fund.
Scheme No. 5 (Rationed Work).Sustenance without Work.

* Includes 8,499 men unfit for employment for health or other reasons.

† Includes approximately 8,000 men unfit for employment for health or other reasons.

‡ All men unfit for employment for health or other reasons.

1931.     
30th June6,70038,000..6,40051,100
30th September7,60043,000..3,99054,590
31st December4,80039,300..7,98552,085
1932.     
31st March7,00037,000..10,52054,250
30th June7,45043,850..17,35068,650
30th September6,54045,100..22,01073,650
24th December5,19943,106..20,97669,281
1933.     
18th March5,58539,874..21,19366,652
10th June5,80243,837..23,27972,918
30th September4,30144,743..30,39179,435
23rd December2,53336,90696429,87070,273
1934.     
17th March3,27332,5551,79327,76665,387
9th June3,40733,1262,71823,38662,637
29th September3,27232,7315,56923,18964,761
22nd December2,13128,3035,92320,48156,838
1935.     
16th March3,15324,2048,21117,93053,498
8th June3,02525,04311,26216,93656,266
28th September2,50024,18315,51718,14460,344
21st December1,73718,84415,07221,62857,281
1936.     
14th March1,87215,70414,44322,51054,529
6th June3,20015,48620,35213,99653,034
26th September2,20913,95525,7447,51149,419
19th December2,03710,08520,1646,78639,072
1937.     
13th March2,3416,62118,9456,61934,526
5th June2,5006,13620,6906,51335,839
25th September2,2294,71418,110*11,39736,450
18th December7373,33612,29413,72230,089
1938.     
12th March1,0862,73510,87415,20429,899
4th June1,3012,81212,60815,30932,030
24th September7717438,0629,05738,632
17th December4075107,28527,44835,650
1939.     
11th March649777,25624,08732,069

The payment of sustenance was superseded as from 1st April, 1939, by an unemployment benefit, which is dispensed by the Social Security Department in terms of the Social Security Act, 1938 (see Section XXV). Particulars as to the numbers in receipt of such benefits since their inception are as follows: 29th April, 4,915; 27th May, 5,565; 1st July, 7,036: 29th July, 8,009; 26th August, 8,066; 30th September, 6,805; 28th October, 6,015.

RELIEF MEASURES IN OPERATION.

In previous issues of the Year-Book particulars have been given of various relief schemes which have been introduced from time to time, but most of which have now been discontinued.

Notable amongst these was Scheme No. 5, which for several years was the main vehicle for the provision of unemployment relief. Under this scheme a maximum of 45,000 men were in receipt of part-time work in 1932 and 1933. The number as at the last available date prior to its cessation on 31st March, 1939, was seventy-seven.

The Small-farm Scheme is now administered entirely by the Department of Lands and Survey.

The gold-mining scheme was taken over by the Mines Department as from 1st April, 1939.

Scheme No. 4A.—This scheme in its original form provided a subsidy on the wages of men taken from the ranks of the unemployed and engaged by farmers for productive work; as now conducted, however, it provides a sustenance allowance, which varies (according to number of dependants) from 15s. to £2 13s. per week, to farmers working on their own properties which are not sufficiently developed to be self-supporting.

Scheme No. 4B.—Subsidies up to 75 per cent. of the labour-cost may be granted to farmers who are willing to undertake work of a developmental character, such as bush-felling, scrub-cutting, rush-grubbing, stumping and logging, draining, clearing noxious weeds, or subdivisional fencing.

Scheme No. 13.—Certain works of either a national or local character put in hand by local authorities, school committees, sports bodies, or other social institutions not established for profit are eligible for subsidy under this scheme, the rate of which varies from £1 10s. to £2 5s. per man-week for single and married men respectively.

Scheme No. 16.—This scheme provides financial assistance enabling the training of carpenters, joiners, and bricklayers, and a further plan is being developed for the subsidizing of the wages of physically fit and otherwise suitable young men during a period of training necessary for them to enter industry as skilled operators.

The State Placement Service.—This service was inaugurated in 1936, and its activities are carried out through the medium of four District Employment Offices (one in each of the four chief centres) and forty-four offices of the Social Security Department (fifteen Registrars and twenty-nine District Agents).

Placement officers obtain from applicants for work full information regarding their qualifications and employment-history, and, by maintaining contact with employers throughout the Dominion, have been able to effect more than 100,000 engagements since the inauguration of the scheme.

An analysis of positions filled during the fifteen months ended 31st March, 1939, according to locality and to duration of employment, is given in the following table, in which work extending over three months is classified as permanent, from one week to three months as temporary, and less than one week as casual.

POSITIONS FILLED BY STATE PLACEMENT SERVICE DURING THE PERIOD 1ST JANUARY, 1938, TO 31ST MARCH, 1939.

District.Permanent.Temporary.Casual.Total.
Auckland5,4113,6114,74613,768
Hawke's Bay9527411,6073,300
Taranaki5871404181,145
Wellington4,7603,9746,88315,617
Nelson and Marlborough606279112997
Westland446132145723
Canterbury1,4811,4582,6435,582
Otago1,7821,5124,9978,291
Unclassified6416788319
    Total16,08912,01421,63949,742

Government youth centres are in operation in the principal towns, administered jointly by the Education and Labour Departments, their objects being the vocational guidance and placing in suitable occupations of young persons of both sexes.

During the year ended 31st March, 1939, there were, at these centres, 1,787 enrolments of girls and 2,656 of boys, while the placements of these numbered 3,843 (1,473 girls and 2,370 boys). Of the placements, 3,269 were permanent and 574 temporary.

SEASONAL FLUCTUATIONS IN EMPLOYMENT.

The importance of the unemployment question throughout the world in recent years has prompted in most countries statistical examination of the fluctuations or periodicity of employment. Until recent years the statistics available on this phenomenon in New Zealand have been somewhat scanty, being restricted to employment on public works. Data are now available for some of the avenues of industrial employment (including building and construction, but excluding transport and mining) as well as employment contracted with local authorities.

FACTORY AND BUILDING INDUSTRIES.

In issues of the Year-Book prior to 1936 tables have been given illustrating the fluctuation of employment under this heading, month by month. Considerations of space preclude their reproduction, but full details may be found in successive issues of the Annual Statistical Report on Factory and Building Production. During 1937, of the twenty-three groups of factory industries which are of sufficient importance to justify consideration, five had maximum employment in December, three each in July and November, two each in February, May, June, and October, and one each in January, March, April, and August. In the case of fourteen groups, minimum employment occurred in January, three in December, two in July, and one each in February, May, October, and November. The principal group (animal food) had the maximum in January and the minimum in July, while for all industries in combination the maximum was in April and the minimum in July. In the building trade the maximum occurred in December and the minimum in January.

PUBLIC WORKS.

Seasonal unemployment has to a certain extent been coped with by the institution of relief works by the Public Works Department, which has tended to swell the numbers engaged on public works. This employment on public works may be classified according to the authority meeting the cost of the works:—

(a) Public Works Department.

(b) Public Works Department and local authorities.

(c) Local authorities only.

(d) Employment Promotion Fund.

Until recently, complete statistics covering all phases of this employment were not available. Those for earlier years relate to class (a), and part of class (b) to the extent to which the cost is met by the Public Works Department; furthermore, they do not include the employees of contractors. The following statistics are entirely exclusive of workmen engaged by local authorities, and are calculated by dividing the total amount paid as wages during each month by the sum which would represent the full-time earnings of one worker during each particular period. They cover those workers who are employed on “time” as well as “piece” rates. Class (d) from 1932-33 to 1935-36 represents several thousand men, all of whom are also included in the figures relating to unemployment relief. As from 1st April, 1936, however, all highways and road works being carried on at the instigation of the Employment Division of the Labour Department were transferred to the Public Works Department.

The following figures show the yearly average number of men employed as indicated above:—

Year ended 31st March,Roads.Other Works.Total.Year ended 31st March,Roads.Other Works.Total.
* Not comparable with figures in the next table owing to the fact that analysis according to nature of work is available on the new basis only from the year ended 31st March, 1938, onwards.
19001,8251,2433,0681,9325,2554,1829,437
19051,4072,1193,5261,9333,2133,5206,733
19101,7623,9295,6911,9343,9684,6138,581
19152,4942,2344,7281,9354,0944,8218,915*
19201,4952,4983,9931,9364,1595,6059,764*
19251,6145,1516,7651,9379,2478,06417,311*
19305,3805,48710,8671,93811,3718,44719,818
19316,3656,05712,4221,93912,9529,70822,660

There are now more comprehensive figures available, including, in addition to workers in the direct employ of the Public Works Department, those employed by contractors for public works and those employed by local authorities on (a) works which are financed wholly or partly by the Public Works Department, and (b) highway or road construction and maintenance. Such information is available only since the beginning of 1935, and is as follows, the figures quoted representing the averages of weekly returns:—

Month.1935.1936.1937.1938.1939.
January11,17913,79119,30720,16522,824
February11,71514,94220,06320,64622,285
March12,12715,83120,10221,26823,068
April12,19916,02620,00321,34422,426
May12,21215,94619,69221,18821,825
June11,84015,55119,39221,55321,653
July11,56915,54219,01622,35821,268
August11,55315,90518,97623,20921,076
September11,56016,88419,08223,66123,120
October12,06718,25719,40723,85123,241
November13,23418,87819,96223,331..
December13,87019,19820,20523,245..

Figures are published in the Monthly Abstract of Statistics showing each month the numbers engaged on the various classes of public works throughout the Dominion.

LOCAL AUTHORITIES.

Employment by local authorities comprises principally the construction and maintenance of roads and streets, and the operation and maintenance of public-utility industries (gas, electric supply, and tramways) and social services.

Particulars relating to wage-earning employees engaged by the various classes of local authorities during the year ended March, 1938, are presented in the following table. The statistics do not cover Hospital Boards, Fire Boards, or Electric-power Boards. Employees of Electric-power Boards are included in the figures for manufacturing industries, published in the Annual Statistical Report on Factory and Building Production, while employees of Hospital Boards are shown in a succeeding paragraph.

Class of Local District.Maximum for Year.Minimum for Year.Average of Twelve Months.
Number.Month.Number.Month.
Boroughs13,571Dec.11,593May12,597
Counties6,858Sept.6,175Jan.6,440
Harbour Boards2,933Dec.2,456May2,672
Urban transport districts1,636March1,598Oct.1,611
River districts803Oct.591April688
Town districts500July385Jan. and March434
Urban drainage districts449Jan.267Aug.345
Rabbit districts260May219Jan.231
La id-drainage districts241April145Oct.183
Road districts207Dec.131April163
Gas-lighting district57Nov.36May44
Railway district14Various13Various13
Water-supply districts11Aug.1Various5
    Totals26,847Dec.23,954May25,426

The institutional staff of public hospitals and charitable institutions under the control of Hospital Boards was as follows at 31st March, 1938:—

Nature of Staff.Number.
Stipendiary medical305
Other professional and technical306
Nursing3,536
Indoor, domestic2,394
Outdoor488
Miscellaneous200
    Total7,229

The staff of Hospital Boards other than the institutional staff listed above totalled 426 on 31st March, 1938, making a total of 7,655 persons in the employ of Hospital Boards at that date.

Chapter 41. SECTION XLI.—INDUSTRIAL DISPUTES.

INTRODUCTORY.

THE compilation of statist icy regarding industrial disputes was first undertaken by the Census and Statistics Department at the beginning of the year 1920. Information concerning disputes prior to that year was obtained by examination of the records of the Labour Department.

Under the system originated in 1920, returns furnished by Inspectors of Factories from inquiries made in each district form the main source from which information is obtained. It is considered that the statistics based on these reports are less liable to bias than would be the case if parties to the dispute or other private persons were relied on to furnish the information. It is the duty of an Inspector, during the course of a dispute in his industrial district, to collect all available particulars relating to it. The Inspectors have power to make the necessary inquiries, and by its exercise when required they are able to obtain complete information.

In these tabulations the term “industrial dispute” refers only to those disputes which result in a strike or a lockout, or where organized “go slow” or other passive resistance tactics are clearly manifested. Many disputes are, of course, settled without recourse to such measures; these are not recorded for statistical purposes.

It occasionally occurs that there are strikes in different centres with the same or similar objects, and happening at or about the same-time; in such cases the several disturbances have been treated as one if the available evidence is sufficient to justify such a course, while the duration has been taken as its maximum duration in any centre.

Regulations issued on 4th October, 1939, under the Emergency Regulations Act, 1939, prohibit strikes and lockouts and provide the necessary machinery for the settlement of any dispute that may arise.

Reference to enactments framed to mitigate the severity of industrial disputes in normal times will be found in Section XXXVIII of this Year-Book (Labour Laws and Allied Legislation).

NUMBER AND MAGNITUDE.

Although for years prior to 1920 (in which year the present system of reporting was instituted) the records of the Labour Department contain certain information regarding industrial disputes, the details are not sufficiently complete to permit of a comparison with later years.

Year.Strikes.Lockouts.Total Disputes.Firms affected.Workers involved.Working-days lost.Estimated Loss in Wages.
* Not available.
       £
192077..77*15,138**
192177..7711210,433119,20890,477
192258..58676,41493,45660,782
192349..49797,162201,812114,074
192434..345814,81589,10562,732
192581283939,90574,55249,149
192659..59676,26447,81132,355
192738..38404,47612,48511,819
192837239569,25821,99722,304
192946147607,15125,88926,940
193038..38445,46731,66937,299
193123124376,35648,48644,544
193223..23679,355108,605105,715
193315..15433,55865,09959,334
193424..24373,77310,3937,121
193512..12652,32318,56315,266
193643..431287,35416,98012,886
193752..57311,41129,91632,129
193872..7210311,38835,45642,104

The total number of working - days lost is calculated by multiplying the number of workers involved in each dispute by the number of working - days lost. It is assumed that work would have been continuous if no dispute had taken place, and no allowance is made for loss of work from unemployment or other causes which might have occurred even if there had been no dispute. In some cases, such as shearing, there is a definite amount of work to be done, and a stoppage of work does not decrease the total amount of it, but only postpones its completion. In those cases the figures are perhaps more or less fictitious, but in the great majority of cases they represent a real loss.

From the passing of the Industrial Conciliation and Arbitration Act in 1894 till the end of 1905 there were no industrial disputes between employers and workers coming within the scope of the Act; indeed, New Zealand may be said to have been almost entirely free from industrial disputes during that period. The greatest number of disputes in any one year since 1894 was recorded in 1925, when there were eighty-three disputes—mostly, however, of trivial importance. The number of workers concerned was greatest in 1920, when 15,138 workers were involved in industrial disputes, chiefly in the mining industry and in the railways. From the point of view of lost time the maximum was reached in 1923, when there were serious disputes in the coal-mining and shipping industries. Next in order come 1921 (marked by strikes of waterside workers) and 1932 (chiefly strikes of waterside workers and coal-miners).

PRINCIPAL DISPUTES IN 1938.

The number of workers involved in disputes during the year 1938 was only very slightly less than in the previous year and is, with that exception, the highest since 1924, while both the number of disputes and the loss in wages were higher than for several years past. During the year there were two disputes each involving approximately a thousand workers: these were both in the Auckland district, one being of coal-miners and one of waterside-workers.

NATURE AND DURATION.

The next table shows the nature of the disputes and the number of workers involved during the last ten years.

Year.Nature of Dispute.Number of Workers involved.
Direct Strike.Sympathetic Strike.Partial Strike.*Lockout.Total.Direct Strike.Sympathetic Strike.Partial Strike.*Lockout.Total.
* I.e., where no actual cessation of work, but a “go slow” or other policy of protest adopted.
192940241475,1141,837185157,151
19303413..385,170140157..5,467
193119311245,42935057256,356
1932185....237,9451,410....9,355
1933132....152,728830....3,558
19342211..243,62011538..3,773
193512......122,323......2,323
193633..10..435,910..1,444..7,354
193751..1..5210,411..1,000..11,411
19387011..7211,10755226..11,388

The table following illustrates the duration of disputes during 1938:—

Duration.Number of Disputes.Number of Workers involved.Number of Working-days lost.Estimated Loss in Wages.
1 day and less394,4853,386£ 3,987
Over 1 day but not over 2132,2914,5694,336
Over 2 days but not over 356611,9832,411
Over 3 days but less than 1 week62,63312,20714,537
1 week but less than 2 weeks81,30213,08716,623
2 weeks but less than 4 weeks116224210
    Totals7211,38835,45642,104

It will be seen that the vast majority of disputes are in the nature of direct strikes, although in some years “sympathetic” strikes (when the workers go on strike in sympathy with the claims of other workers, and not on account of a grievance arising out of their own wages or conditions) attain serious proportions.

GEOGRAPHICAL DISTRIBUTION.

The following table shows the number of disputes in each industrial district for the last five years and also the number of workers involved; from this it will be seen that the Northern District in the last four years produced the greatest number both of strikes and of workers involved.

Year.Northern.Taranaki.Wellington.Marlborough.Nelson.Westland.Canterbury.Otago and Southland.Totals.
* Includes strikes which involved workers in more than one district.
Number of Disputes.
19346..6....36124*
19357..1....4....12
19361935....113243
193732..5..164452
193831412....1210372
Number of Workers involved
193485621828....6331,351843,773
19351,062..550....711....2,323
19364,587318463....1,85258767,354
19376,950..1,760..91,1391,06349011,411
19386,6702251,052....1,9491,01547711,388

INDUSTRIAL DISTRIBUTION.

In the following table industrial disputes are classified according to the industrial groups in which disputes took place, this grouping being the same as that used in the compilation of wage and trade-union statistics. In three of the fourteen groups of the classification there were no disputes, and such groups have been omitted. The strike recorded in 1934 under the heading “Miscellaneous” was one of general labourers, that in 1936 one of wool and grain store workers, and of the three in 1938, two were of wool-store workers and one of general labourers.

Industrial Group.1934.1935.1936.1937.1938.
Number of Disputes.
Provision of—     
  Food, drink, &c.1..2712
  Clothing, footwear, and textiles......1..
  Building and construction....242
  Power, heat, and light....1..1
  Transport by water185141717
  Transport by land....11..
Working in or on—     
  Wood, &c...1312
  Metal....131
  Stone, clay, glass, chemicals, &c.....3311
  Paper, printing, &c...1....1
  Mines and quarries—     
    Coal-mines43101420
    Gold-mines..2412
    Quarries....1....
Miscellaneous1..1..3
      Totals2412435272
Industrial Group.1934.1935.1936.1937.1938.
Number of Workers involved.
Provision of—     
  Food, drink, &c.204..1372,5903,000
  Clothing, footwear, and textiles......106..
  Building and construction....122366131
  Power, heat, and light....300..114
  Transport by water2,7772983,1923,5341,643
  Transport by land....1039..
Working in or on—     
  Wood, &c...1003927020
  Metal....46390208
  Stone, clay, glass, chemicals, &c.....1034581,189
  Paper, printing, &c...550....29
  Mines and quarries—     
    Coal-mines7626802,3183,0294,367
    Gold-mines..69529452922
    Quarries....40....
Miscellaneous30..400..665
      Totals3,7732,3237,35411,41111,388

Out of a total of 203 disputes during the five years, 71, involving 11,444 workers, occurred in the shipping industry; while in connection with mining and quarrying there were 61 disputes involving 12,736 workers. For a number of years prior to 1933, it was almost invariably the mining and quarrying industry in which both the greatest number of disputes occurred and the greatest number of workers was involved, but from then to 1937 the shipping industry was generally in the lead. A more detailed analysis of disputes occurring during 1938 is given below.

Industrial Group.Number of Disputes.Number of Firms affected.Number of Workers involved.Number of Working-days lost.Estimated Loss in Wages.
Directly.Indirectly.Total.
Provision of—      £
Food, drink, &c.12122,2777233,0005,0546,048
Building and construction22118131318692
Power, heat, and light11114..114114..
Transport by water17197628811,64312,26515,803
Working in or on—       
Wood, &c.2220..20220212
Metal1717434208304346
Stone, clay, glass, chemicals, &c.11141,189..1,1891,3641,004
Paper, printing, &c.1129..292914
Mines and quarries—       
Coal-mines20284,36074,36713,55317,691
Gold-mines2222..222716
Miscellaneous315665..6652,440878
Totals721039,7301,65811,38835,45642,104

CAUSES.

In the next table the causes of disputes occurring during the last five years are shown. Under the heading “Wages” are included disputes concerning wages, overtime, or rates for piecework.

Disputes concerning the employment or non-employment of certain classes of persons are included under the heading “Employment.” This question usually arises in connection with trade-union affairs such as, for instance, the employment of non-unionists, or the dismissal of a unionist on allegedly insufficient grounds.

"Other working conditions" are of diverse nature, but some may be mentioned as follows: Distribution of work in coal-mines and on wharves, conveyance to and from work, atmospheric conditions in coal-mines, accommodation on ships, numbers of men to be allocated to certain duties, supply of food, method of handling cargo.

Under the heading “Sympathy” are included all disputes caused by workers striking not on account of a grievance with their own particular employer, but in sympathy with the demands of other workers.

Cause.1934.1935.1936.1937.1938.
Number of Disputes.
Wages74131426
Hours2112112
Employment44111216
Other working-conditions9161524
Sympathy1......1
Other causes121..3
Number of Workers involved.
Wages1,2741,3451,7863,6824,558
Hours40091,5772,139106
Employment6374012,7641,9411,693
Other working-conditions1,2973201,1963,6494,675
Sympathy11555   
Other causes5024831..301

The following table gives further details for the year 1938:—

Cause.Number of Disputes.Number of Firms affected.Number of Workers involved.Number of Working-days lost.Estimated Loss in Wages.
     £
Wages26474,55821,21824,738
Hours2210654159
Employment16161,6934,4485,122
Other working-conditions24284,6759,43211,738
Sympathy1155....
Other causes39301304347
    Totals7210311,38835,45642,104

METHODS OF SETTLEMENT.

Following is a table showing the methods of settlement of disputes during the last five years. “Negotiations under Act” covers negotiations under both the Industrial Conciliation and Arbitration Act and the Labour Disputes Investigation Act.

Method of Settlement.1934.1935.1936.1937.1938.
Number of Disputes.
Negotiations under Act..391514
Private negotiations between parties155233053
Substitution5..4..4
Otherwise44771
Number of Workers involved.
Negotiations under Act..7802,0292,4842,436
Private negotiations between parties3,1961,0082,2247,6208,761
Substitution185..643..167
Otherwise3925352,4581,30724

Further information for the year 1938 is given in the next table.

Method of Settlement.Number of Disputes.Number of Workers involved.Number of Working-days lost.Estimated Loss In Wages.
Negotiations under Act142,4364,811£ 5,518
Private negotiations between parties538,76130,28736,206
Substitution4167310349
Otherwise1244831
Totals7211,38835,45642,104

RESULTS.

In compiling the table which follows, no dispute has been included as ending in favour of either employers or workers unless the result has been beyond question, In cases where workers have made more than one demand, succeeding in one or more and failing in one or more, or where they have made one or more demands and in respect of each have been partially successful only, the result has been treated as a compromise. Where strikers have returned to work without any definite decision being arrived at regarding the demands made, or where (as in the case of a sympathetic strike) no definite demand has been made, or where a strike is merely by way of a protest, the result has been recorded as indeterminate.

RESULTS OF DISPUTES.

Result.1934.1935.1936.1937.1938.
Number of Disputes.
In favour of workers33151724
In favour of employers133131713
Compromise223613
Indeterminate64121222
Number of Workers involved.
In favour of workers6801562,9272,1762,806
In favour of employers1,7789108574,4783,723
Compromise6459841291,0951,186
Indeterminate6702733,4413,6623,673
Number of Working-days lost.
In favour of workers5492,9079,3345,4787,683
In favour of employers2,9878,7912,11616,93517,370
Compromise4,4126,5804762,5891,548
Indeterminate2,4452855,0544,9148,855

Of disputes ending definitely in favour of one party or the other during the five years, workers succeeded in sixty-two instances and employers in fifty-nine. In the previous five years (1929-33) workers were successful in thirty-seven instances and employers in thirty-nine.

In the following table the causes and results of disputes occurring during 1938 are shown in conjunction:—

Result.Cause.
Wages.Hours.Employment.Other Working-conditions.Sympathy.Other.Totals.
Number of Disputes.
In favour of workers11148....24
In favour of employers3154....13
Compromise4..45....13
Indeterminate8..371322
Number of Workers involved.
In favour of workers1,16275041,133....2,806
In favour of employers1,391992921,941....3,723
Compromise492..505189....1,186
Indeterminate1,513..3921,412553013,673
Number of Working-days lost.
In favour of workers2,54142,1852,953....7,683
In favour of employers12,666509413,713....17,370
Compromise593..574381....1,548
Indeterminate5,418..7482,385..3048,855

Chapter 42. SECTION XLII.—INDUSTRIAL ACCIDENTS.

INTRODUCTORY.

As a result of an international conference of official statisticians hold at Geneva in 1923, under the auspices of the International Labour Office set up by the League of Nations, the collection and compilation of statistics of industrial accidents on substantially uniform lines is now being undertaken in virtually all of the principal countries. From the administrative standpoint, the principal types of industrial accidents occurring in New Zealand may be classified as follows:—

Factory Accidents.—Section 41 of the Factories Act requires the reporting to Inspectors of Factories of all accidents likely to incapacitate the injured person for at least forty-eight hours. Reports are prepared by Inspectors of Factories in connection with each such accident causing loss of work amounting to three days or upwards. These are ultimately forwarded to the Census and Statistics Department for statistical analysis.

Scaffolding Accidents.—The procedure adopted in connection with the compilation of statistics of scaffolding accidents is identical with that in connection with factory accidents.

Accidents to Employees of the Railways, Public Works, Printing and Stationery, and Post and Telegraph Departments.—Individual report' of all accidents involving loss of work for three days or upwards are supplied by the respective Departments to the Census and Statistics Department for derailed analysis and tabulation.

Accidents to Employees in Mines and Quarries.—Certain particulars of accidents to employees in metalliferous mines, in coal-mines, and in quarries and other places under the Stone-quarries Act. are given in successive numbers of the Mines Statement, Parliamentary Paper C.—2. Commencing with the year 1938, more comprehensive information is now being furnished to the Census and Statistics Department, although the details are not as full as those in the oases referred to in the three previous paragraphs.

Other Industrial Accidents.—There are numerous types of industrial accidents for which it has not as yet been found practicable to collect and compile statistics. The principal classes of such accidents are those occurring to persons engaged in land transport (other than railway operation), in “watersiding,” in bushfelling, and in marine navigation. Accidents of the last-mentioned type are importable to the Marine Department under the Shipping and Seamen Act.

FREQUENCY RATES.

For the purpose of computing frequency rates in respect of industrial accidents in New Zealand, data as to the number of employees in establishments coming under various industrial headings have been compiled by the Census and Statistics Department from returns furnished for the purpose by the Labour Department's Inspectors of Factories; while information as to the hours worked has been ascertained from awards, and supplemented by the statistics of short time and overtime compiled from data collected with the annual census of factory production. Similar data have been obtained from the records of the Post and Telegraph, Public Works, and Railways Departments. One hour's work performed by one man is taken as a unit. Data as to man-hours are not available in the case of scaffolding operations.

Year.Total Accidents.Accidents per 100,000 Man-hours worked.*Accidents where Particulars of Compensation available.Total Compensation or Damages paid in such Cases.Compensation per Case where known.

* Excluding scaffolding accidents.

† Including medical expenses.

    ££
19335,0952.3925,09078,46415.4
19344,9112.0214,90780,83716.5
19355,5872.3735,58793,16616.7
19367,7032.6837,702122,62415.9
19379,3943.0509,385181,05419.3

Compared with the previous year, the total for 1937 shows an increase of 1,691, which is distributed over all classes except scaffolding, the greatest movement, both numerically and relatively, having occurred in factory accidents, of which there were 922, or over 27 per cent. more than in 1936.

The distribution of industrial accidents in 1937 according to the source of information (accidents to Printing and Stationery Department employees being included in the Factory group) is indicated in the following table:—

Class.Total Accidents.Accidents per 100,000 Man-hours worked.Accidents where Particulars of Compensation available.Total Compensation or Damages paid in such Cases.Compensation per Case where known.

* No Information available.

† Excluding scaffolding accidents.

    ££
Factory4,2502.0274,24876,29918.0
Public Works2,4457.6942,44342,62617.4
Scaffolding250*24713,00552.6
Railways2,1945.5732,19245,41820.7
Post and Telegraph2551.3432553,70614.5
    All classes9,3943.0509,385181,05419.3

The frequency rate—i.e., accidents per 100,000 man hours worked—was appreciably higher for all accidents, increases having occurred in three out of the four groups for which rates are computed, the exception being the Public Works group, although the rate for this group was still the highest. The meat-freezing industry had the highest frequency rate for any individual sub-group, while the lowest appeared in the sub-groups for butchering and textile manufacturing.

It is usual for scaffolding accidents to involve the highest compensation per accident, owing to the proportionately greater number which terminate fatally. There were eight fatalities in this group during 1937, while the group having the next highest average (Railways) included thirteen.

In the table following, industrial accidents during the year 1937 are classified into certain important industrial groups. Details for individual industries, under this and other headings, are published in an annual report (Statistical Report on Prices, Wage-rates, &c.) issued by the Census and Statistics Department.

Industrial Group.Total Accidents.Accidents per 100,000 Man-hours worked.Accidents where Particulars of Compensation available.Total Compensation or Damages paid in such Cases.Compensation per Case where known.

* Data on which to compute not available.

† Excluding scaffolding accidents.

Provision of—   ££
  Food, drink, &c.2,6535.5292,65335,39113.3
  Clothing, footwear, and textiles1330.2601331,1618.7
  Building and construction—     
    Public Works2,4107.8632,40842,32417.6
    Scaffolding250*24713,00452.6
  Power, heat, and light741.418741,04414.1
  Communication and land transport—     
  Post and Telegraph2551.3432553,70614.5
  Railways2,1945.5732,19245,41820.7
  Personal services70.18661,079179.8
Working in or on—     
  Wood, seagrass, &c.3761.34637612,98134.5
  Metal6211.49562116,12826.0
  Stone, clay, glass, &c.3142.2413136,72421.5
  Paper, printing, &c.740.6367489612.1
  Skins, leather, &c.230.464231,16350.6
  Miscellaneous100.36810353.5
All groups9,3943.0509,385181,05419.3

The average compensation paid in respect of industrial accidents naturally varies considerably in different industries and in different years according to the proportion of serious accidents occurring.

The following table shows for five years the average compensation paid, in conjunction with the extent of disability:—

Year.Temporary Disability.Permanent Partial Disability.Fatality.Total.
Number of Cases.*Average Amount of Compensation.Number of Cases.*Average Amount of Compensation.Number of Cases.*Average Amount of Compensation.Number of Cases.*Average Amount of Compensation.
* Where amount of compensation known.
  £ £ £ £
19334,9168.1154158.820700.25,09015.4
19344,7368.1143174.828629.54,90716.5
19355,3948.6176189.317798.05,58716.7
19367,4839.1193180.726747.57,70215.9
19379,11610.3233243.436833.09,38519.3

The average amount of compensation paid in respect of fatalities is normally considerably below the maximum amount which may be paid under the Workers' Compensation Act in respect of such accidents. This is due mainly to the fact that in cases where the deceased worker bad no dependants only medical and funeral expenses are paid; and that in cases of partial dependency the amount paid as compensation may be considerably less than the maximum.

CAUSE OF ACCIDENT AND EXTENT OF INJURY SUSTAINED.

With regard to the extent and degree of the disability sustained, it is usual to distinguish fatal accidents, accidents causing temporary disability, accidents causing permanent partial disability, and accidents causing permanent total disability. In the actual compilation of the statistics difficulty occasionally arises as to whether a particular injury should be regarded as temporary or permanent; and in cases of doubt the conservative practice has been adopted of classifying the injury in the temporary-disability class. The following table relates to the five-years period, 1933-37.

Cause.Temporary Disability.Permanent Partial Disability.Fatality.Total.Percentage of Total Accidents.
* Including permanent total disability cases as follows: 1933, 1; 1934, 2; 1935, 2; 1936, Nil; 1937, 3; total, 8.
Machinery—     
  Prime movers514..550.2
  Transmission77102890.3
  Lifting-machinery5402985771.8
  Power-working machines2,25038472,6418.1
Vehicles1,94151312,0236.2
Explosions and fires73022127642.3
Poisonous, hot, and corrosive substances332113341.0
Electricity7314780.2
Falls of persons—     
  From elevations1,64649231,7185.3
  Into excavations2611..2620.8
  Slipping and stumbling on the level Stepping on or striking against fixed2,7721412,7878.5
objects—     
  Stepping on268....2680.8
  Striking against1,3461041,3604.2
Falling objects, not being handled by the person injured9112079382.9
Falls of earth75125137892.4
Handling of objects—     
  Heavy6,28510226,38919.5
  Sharp2,2903322,3257.1
  Hand-trucks, &c.6583..6612.0
  Continual handling4312..4331.3
Hand-tools—     
  In hands of person injured—     
  Glancing of tool4,7308224,81414.7
  Breaking of tool1103..1130.3
  Flying particles66525..6902.1
  Other9549..9632.9
  In hands of other than person injured46716..4831.5
Animals225412300.7
Miscellaneous—     
  Strains, sprains, and septic wounds undefined as to cause (sustained while slaughtering)3103..3131.0
  Doors, windows, covers, gates (excluding elevators)313223171.0
  Other265742760.8
Summary.
Factories14,5565473015,13346.3
Public Works7,681166367,88324.1
Scaffolding96840151,0233.1
Railways7,446153407,63923.4
Post and Telegraph1,001651,0123.1
    Totals31,652912*12632,690100.0

LENGTH OF EXPERIENCE AT PROCESS.

In recent years an attempt has been made to obtain information regarding the length of experience of each employee at the work on which he was engaged at the time of the accident. The information thus obtained in respect of factory accidents is given below for 1935, 1936, and 1937. The necessary information was not available in all cases, the number covered being approximately 93 per cent.

Length of Experience at Process.1935.1936.1937.
Number of Cases.Percentage of Total.Number of Cases.Percentage of Total.Number of Cases.Percentage of Total.
Under 6 months48622.071123.11,06326.8
6 months and under 1 year1727.82528.23719.3
1 year and under 2 years24611.133010.745511.4
2 years and under 3 years32614.83039.83558.9
3 years and under 4 years23310.531310.12696.7
4 years and under 5 years904.12247.32817.0
5 years and under 10 years38817.656018.257814.5
10 years and under 20 years1838.32819.13839.6
20 years and over833.81083.52335.8
    Totals2,207100.03,082100.03,988100.0

The appreciable increase during the period in the percentage among injured factory workers of those with less than six months' experience is a reflection of the expansion of industry necessitating the addition of untrained workers to existing staffs.

The fact that all inexperienced workers are not necessarily those who have recently attained working-age accounts for the modified, although similar, characteristics of the following tabulation according to age-groups:—

Age, in Years.1935.1936.1937.
Number of Cases.Percentage of Total.Number of Cases.Percentage of Total.Number of Cases.Percentage of Total.
Under 16783.01354.11453.5
16 to 2061123.575923.291721.9
21 to 2444617.159218.172817.4
25 to 3476129.388226.91,25229.8
35 to 4433212.845013.864115.3
45 to 542489.52898.83217.7
55 and over1244.81685.11854.4
    Totals2,600100.03,275100.04,189100.0

NATURE OF INJURY.

A classification of accidents according to the nature of the injuries sustained gives the following results for the last five years:—

Nature of Injury.1933.1934.1935.1936.1937.Totals, 1933-37.
Contusions and abrasions1,1189878141,5801,8736,372
Burns and scalds1491631952304261,163
Concussion2729246069209
Cuts and lacerations1,8181,7272,1632,6753,04811,431
Punctures2862642913585041,703
Amputations10382104140100529
Dislocations2523264347164
Fractures1781802173143961,285
Sprains and strains1,0411,1151,2342,1302,7648,284
Other and ill-defined3503415191731671,550
Totals5,0954,9115,5877,7039,39432,690
Cases where septic poisoning followed—      
Number1,0017498551,0041,3034,912
Percentage of all accidents19.615.315.313.013.915.0

A feature of special interest brought out by this table is the relatively high percentage of accidents in which septic poisoning followed.

PART OF BODY AFFECTED.

Informative figures showing the number of cases in which the different parts of the body were affected by industrial accidents occurring in 1933-37 are given in the following table:—

Part of Body affected.1933.1934.1935.1936.1937.Totals, 1933-37.
Head9910491159163616
Eyes1762272162963981,313
Rest of face646794103151479
Neck1315223331114
Back4204215137738462,973
Thorax and contents1962232223474641,452
Abdomen and contents9989111188195682
External genitals101211242481
Upper limbs—      
  Collarbone and shoulder108104122167248749
  Arm2912983144335221,858
  Hand and wrist7576607779911,2294,414
  Finger and thumb1,6321,4501,6362,2002,6989,616
Lower limbs—      
  Pelvis, hip, and thigh8495104155185623
  Leg4414194397388222,859
  Ankle and foot6036276899491,2114,079
Undefined or multiple102100226147207782
      Totals5,0954,9115,5877,7039,39432,690

Accidents to the fingers and hands form a large proportion of total accidents. Out of the total of 32,690 accidents classified during 1933 to 1937, 14,030 cases were recorded where fingers or hinds were affected.

A tabulation made for 1937 correlating nature of injury with part of body affected showed that the most common type of accident was to the fingers and thumbs, resulting in cuts or lacerations; of the 9,394 accidents tabulated, 1,686 came under this category; of the 176 cases of amputations (of which 100 were traumatic and 76 were surgical), 156 resulted in loss of some part of the fingers or thumbs; contusions of the feet numbered 282, and cuts and lacerations of the hands 475; of the 2,764 sprains, 777 resulted in injury to the back, while sprained thighs, legs, and feet accounted for a further 868.

DURATION OF INCAPACITY.

A further measure of the extent of disability is furnished in the cases of temporary disability by data as to the duration of absence from work as the result of the accident. A summary of this aspect, together with the number of cases of permanent partial disability and fatality, is given below.

Duration.1933.1934.1935.1936.1937.Totals, 1933 to 1937.
Number.Number.Per Cent.Number.Per Cent.Number.Per Cent.Number.Per Cent.Number.Per Cent.
1 week or under1,06798620.11,12320.11,51919.71,87419.96,56920.1
1 week to 2 weeks1,5971,54031.41,71930.72,48832.32,96631.610,31031.5
2 weeks to 4 weeks1,3391,35427.61,51827.22,12327.62,65028.28,98427.5
4 weeks to 6 weeks4274058.24618.25897.77588.12,6408.1
6 weeks to 13 weeks3543396.94287.75967.76206.62,3377.1
13 weeks to 6 months104861.71122.01251.61821.96091.9
Over 6 months26260.5330.6430.6630.71910.6
  Total specified cases of temporary disability4,9144,73696.45,39496.57,48397.29,11397.031,64096.8
Cases where employee did not return or duration not stated6........10.050.1120.0
Permanent partial disability1551473.01763.21932.52402.59112.8
Fatality20280.6170.3260.3360.41270.4
    Totals5,0954,911100.05,587100.07,703100.09,394100.032,690100.0

In many cases the injured employee did not cease work immediately, in some instances a considerable period intervening. The following table shows for such cases occurring during the year 1937 the length of time elapsing before the employee left work, and the final cause of cessation of work.

Factories.Public Works.Scaffolding.Railways.Post and Telegraph.
Period elapsing.
1 week or less5291552753797
Over 1 week and up to 2 weeks91165516
Over 2 weeks45123555
Final Cause.
Incipient septic poisoning344751413320
Strains161681124450
Other causes160401026638
Totals66518335643108
Percentage of all accidents15.77.514.029.342.4

This table indicates that many employees suffering from minor injuries pay little attention to such injury, especially in the case of small cuts, strains, or abrasions. This neglect often causes more severe pain (or with abrasions, septic poisoning), and the absence then enforced is usually longer than if the first injury had received immediate attention. Lost time usually entails a reduction from wages, especially if the injury results in under three days' absence, in which case no compensation is payable. Further, in the case of apprentices, lost time has to be made up at the termination of the period of apprenticeship, and these two considerations are likely to militate against the worker ceasing work immediately on account of a minor injury.

ACCIDENT SEVERITIES.

In view of the fact that the age of the individual is not particularly relevant to the character of the hazard from which the injury has occurred, for the purpose of calculating accident-severity rates a constant loss of 60,000 working-hours is counted for each fatality irrespective of the age of the person at the time of death. In respect of permanent partial disablement an international scheme for the apportionment of loss of earning-power caused by this type of accident has been drawn up by the International Labour Office.

Under this scheme, which has been adopted with some slight modifications in the treatment of New Zealand statistics, time lost on account of permanent partial disability is assessed on the basis of a proportionate part of the time lost in connection with injuries resulting in death. For example, dismemberment or the loss of the use of a hard is regarded as a 50-per-cent. disability—that is, the time lost on account of impaired working capacity in this case is assessed as 50 per cent. of 60,000 working-hours—i.e., 30,000 working-hours.

1933.1934.1935.1936.1937.
* Excluding scaffolding accidents.
Total cases resulting in—     
  Temporary disability4,9204,7365,3947,4849,118
  Permanent partial disability155147176193240
  Fatality2028172636
Total5,0954,9115,5877,7039,394
Calendar days lost per accident9712610591103
Hours lost per 100,000 man-hours worked (i.e., severity rate)*1,3781,5321,5561,4511,619

A more detailed explanation of the method of compilation of accident severities is contained in the 1931 issue of the Year-Book.

The severity rate for all accidents during the period 1933-37 has varied between 1,378 (in 1933) and 1,619 (in 1937). The extent of the toll on industry exacted by industrial accidents is realized when it is considered that during the five years 1933-37 one hour was lost as a result of such accidents out of every sixty-six hours worked in the industries covered by these statistics.

Comparison of the severity rates as between different industrial groups is affected by the varying proportions of serious accidents and fatalities in different industries in different years. In the main groups covered by the cumulative table for the five years 1933-37 shown below the effect of this factor is minimized by the relatively large number of accidents classified.

Industrial Group.Total Cases of Accidents resulting inCalendar Days lost per Accident.Hours lost per 100,000 Man . hours worked (Severity Rate).
Temporary Disability.Permanent Partial Disability.Fatality.Total.

* Data on which to compute not available.

† Excluding scaffolding accidents.

Provision of—      
Food, drink, &c.9,948192510,145471,253
Clothing, footwear, and textiles50428153382123
Building and construction—      
Public Works7,500160357,6951074,387
Scaffolding96840151,023261*
Power, heat, and light3061633251751,396
Communication and land transport—      
Post, and Telegraph1,001651,01286644
Railways7,446153407,6391123,162
Personal services3210..428631,243
Working in or on—      
Wood, seagrass, &c.1,07715371,2372371,534
Metal1,69288101,790145969
Stone, clay, glass, &c.7633047971241,069
Paper, printing, &c.29522..31784298
Skins, leather, &c.8211194301873
Quarries21..31,9291,454
Miscellaneous362..3843105
All industries31,65291212632,6901031,472

HOUR OF OCCURRENCE.

The following tabulation of industrial accidents, according to the hour of occurrence, shows the effects of fatigue during the working-day:—

Time of Occurrence, to nearest Hour.Year.Causes, 193:5-37.
1933.1934.1935.1936.1937.Machinery.Falls of Persons.Handling Objects.Hand Tools.Other.
8 a.m.232216241324362116207372321359
9 a.m.470469504750892314431943771626
10 a.m.7397288091,1131,2634316361,4771,0951,013
11 a.m.6937098461,0821,3374906481,4671,106956
12 noon400433463631750289415750647576
1 p.m.138166192257305159169263217252
2 p.m.448450476723886302421908667685
3 p.m.6125246061,0081,1724285801,194851869
4 p.m.4604845998111,127418529999743793
5 p.m.308254272334430153246457308434
Other hours480354436483677226445593229937
Not stated10746989091293617477117
Not applicable7754597102742113272
Totals5,0944,9085,5877,7039,3943,3624,7679,8087,0647,689

This table indicates that accidents are definitely most numerous during the later part of both morning and afternoon, but in comparing these two periods it must be remembered that, prior to the introduction of the forty-hour week, there were six mornings and only five afternoons in the normal working-week.

A more definite indication is given by considering the length of time the employee had worked on the day when the accident occurred. The following table is exclusive of accidents to Post and Telegraph employees, the information not being available for this group:—

Number of Hours already worked.1933.1934.1935.1936.1937.Totals, 1933-37.
* Excluding accidents to Post and Telegraph employees.
Under 13393303454546072,075
1 and under 25555246088701,0863,643
2 and under 38017338201,1271,3614,342
3 and under 47327058671,1761,3874,867
4 and under 54744694876598402,929
5 and under 64324394826678442,864
6 and under 75695096059571,0553,695
7 and under 84685016238501,2013,643
8 or over3632883374034581,849
Not stated215157185198199954
Not applicable4734396101317
Totals*4,9524,7285,4027,4579,13931,678

The foregoing tabulation shows that the greatest number of accidents occurred during the third and fourth hours worked in the day, and this holds good despite the almost universal operation of the forty-hour (five-day) week in 1937.

LOSS OF EARNING-POWER INVOLVED.

Provision is made in certain cases for the actual impairment of wage-earning capacity to be stated. Of the 240 cases of permanent partial incapacity in 1937, the question as to what wages the employee would earn on resumption was answered in 141 cases. In 123 cases it was reported that, though dismemberment or disablement had occurred, no diminution of earning-power had taken place. In 18 cases, however, definite impairment eventuated, in some cases to a serious extent.

Chapter 43. SECTION XLIII.—CONSUMPTION OF COMMODITIES.

PROBLEMS of consumption are of special interest in periods of rapid economic change, and, with a view to throwing some light on the changes in the consumption of commodities in New Zealand during the last few years, relevant statistics have been collated in a manner which illustrates some of the salient features of the economics of consumption in the Dominion in recent years. Statistics of consumption cannot be compiled with absolute accuracy, owing to the impossibility of obtaining exact comparability in component statistics of production, exports, and imports. Nevertheless, a sufficient degree of comparability can be attained to permit of the compilation of statistics of consumption with a reasonable approach to accuracy. There are several serious lacunæ in the available statistical data, the most serious deficiency being occasioned by the lack of statistics illustrating the distribution among individuals of the annual flow of commodities entering into consumption.

VALUE OF GOODS AVAILABLE FOR USE.

Statistics of the value of production, of exports, and of imports have been compiled regularly for many years past. From these statistics an estimate of the annual value of goods available for use can be made, the value of exports being deducted from that of production, and the value of imports added to the residuum. If all values were assessed on the same basis, the result of this computation would give a close approach to the value of all goods available for use in the Dominion. However, the bases of valuation do not exactly correspond, imports and exports being assessed at the value on shipboard in New Zealand ports, and New Zealand production at values at the place of production in most instances (although for some individual commodities wholesale market values or f.o.b. export values are used). Generally speaking, however, there is no serious- lack of comparability between the bases of valuation of the three factors involved. The import and export statistics used in the computations which follow relate to a June year, while the production statistics are for the production year, which approximates closely, in most cases, to a June year. No adjustment is made to the estimates quoted in the table for held-over stocks of commodities exported or consumed in years subsequent to the year in which they are produced, so that the figures illustrate the value of goods available for use, but not necessarily the amount actually used during each year. Changes in stocks are normally compensatory as between commodities, and the accuracy of the compilations as an indication of goods consumed in each year is not greatly affected through stock data not being taken into account. Exceptions may be found on occasions in the large stocks of wheat or wool held over, as compared with the total production. While these are important individual commodities, the influence of held-over stocks of these two commodities in an index of aggregate Dominion consumption is not sufficient to cause any material margin of error in the estimates shown.

Some interesting facts are illustrated by the following table. It will be observed that between 1926 and 1929 the values of production and of exports increased steadily, imports declined in value, and there was but little change in the value of goods available for use in the Dominion. During that period the terms of trade were favourable to New Zealand, prices received for exports increasing, while prices of commodities entering into New Zealand's import trade were falling. As will be shown in a later table, the quantum of imports and of goods available for use increased during those years, despite the fall in the value of imports. Between 1929 and 1932 all values fell sharply, the greatest relative fall being shown in the value of imports, while values of production and of exports fell less than the value of goods available for use. A sharp recovery in exports is revealed by the 1934 figures, while the value of imports and of goods available for us.' increased but slightly. Statistics for more recent years show considerable increases in the value of goods available for New Zealand consumption.

Year ended 30th June,Production.Exports.Imports.Goods available for Use.
Total.Per Head.
VALUES (IN N.Z. CURRENCY).
 £m.£m.£m.£m.£
1926110.846.352.1116.683.3
1927111.546.447.3112.478.7
1928120.155.143.5108.574.9
1929126.656.146.5117.079.9
1930120.947.049.3123.283.1
193197.636.935.195.863.7
193283.634.724.773.648.4
193383.837.525.371.646.7
193498.849.126.776.449.4
193597.043.034.388.356.7
1936114.253.739.5100.063.8
1937136.164.650.1121.676.9
1938135.661.957.5131.282.1
INDEX NUMBERS. (1926 = 100).
1926100100100100100
1927101100919694
1928108119839390
19291141218910096
193010910295106100
19318880678276
19327575476358
19337681496156
193489106516659
19358893667668
1936103116768677
19371231409610492
193812213411011399

Since the value of goods available for use in the Dominion is the main item entering into the aggregate income of the people, it is interesting to compare statistics for this item with such data as are available for incomes. An estimate of the aggregate private, income is available for 1925—26, a special compilation having been made for that year as part of the census tabulations, while, from the taxation receipts of the Employment Promotion Fund, estimates have been made annually from 1931-32 onwards. It is not claimed that the results obtained by the two methods (census and taxation receipts) are exactly comparable; but, even allowing for differences in computation methods, a comparison of the figures affords undeniable evidence of an increase in the “spread” between aggregate private income and the value of goods available for use.

In 1925-26 the aggregate private income exceeded the value of goods available for use by approximately 15 per cent., corresponding figures for other years being— 1931-32, 35 per cent.; 1932-33, 27 per cent.; 1933-34, 33 per cent.; 1934-35, 18 per cent.; 1935-36, 21 per cent.: 1936-37, 25 per cent.; and 1937-38, 27 per cent. The year-to-year fluctuations just mentioned are the result of a variety of factors, operating over a period marked by rapid economic change.

AGGREGATE VOLUME OF CONSUMPTION OF GOODS.

Index numbers of producers' prices, of export prices, and of import prices (the last mentioned on a calendar-year basis, and since 1926 only) are compiled regularly by the Census and Statistics Department. The index numbers of export prices and of producers' prices are available for June years; while in the case of import prices the mean of two calendar years has been taken as approximating to a June year basis. By the use of these index numbers in conjunction with the statistics of value quoted in the previous table it is possible to assess the value of goods available for use within the Dominion at prices ruling in any given year. By this means the influence of changing prices is eliminated from the statistics of value, the results indicating changes in volume. Figures for each year since 1926-27 are shown in the following table:—

VALUE, AT 1926-27 PRICES, OF GOODS AVAILABLE FOR USE IN DOMINION.

Year ended 30th June,Produced in Dominion.Imported.Available for use in Dominion.
Total.Exported.Available for use in Dominion.Total.Percentage locally produced.Percentage imported.
 £(m.)£(m.)£(m.)£(m.)£(m.)  
1927111.546.465.147.3112.45842
1928115.750.665.145.8110.95941
1929120.350.569.851.1120.95842
1930126.750.576.256.0132.25842
1931121.752.769.041.8110.86238
1932115.256.059.231.790.96535
1933121.865.856.032.088.06436
1934129.568.261.333.895.16436
1935124.861.463.444.0107.45941
1936134.267.167.151.3118.45743
1937145.669.576.163.4139.55545
1938142.367.375.071.0146.05149
  Totals for twelve years1,509.3706.0803.3569.21,372.55941

An interesting feature brought out by the foregoing table is the assessment of the relative proportions of New-Zealand-produced goods and of imported goods in the total quantum of goods entering into consumption. Over the period of twelve years covered by the table the proportions were approximately 60 per cent. of New-Zealand-produced goods and 40 per cent. of imported goods. While exact accuracy cannot be claimed for these figures—particularly in respect of single years— a definitely higher proportion of New-Zealand-produced goods in the total is observed from 1930-31 to 1933-34 than was the case in the earlier years covered and in 1934-35 to 1937-38. The falling-off in the quantum of imports during the depression years was considerably greater than that in the volume of locally produced goods consumed in the Dominion. The reversion of the proportions in 1934-35 and subsequent years to the figures for years preceding 1930-31 is attributable principally to the marked recovery in imports. The upward trend in imports commencing with the year 1932-33 was carried a step further in 1937-38, the percentage of New Zealand goods to total goods available for use again falling.

Movements in the volume of goods available for use in the Dominion are indicated in the following table of index numbers (on the base: 1926-27 = 100):—

INDEX NUMBERS OF VOLUME OF GOODS AVAILABLE FOR USE .

Year ended 30th June,Produced in New Zealand.Imported.Total.Average Volume per Head.
1927100100100100
1928100979997
1929107108108105
1930117118118113
1931106889994
193291678176
193386687873
193494718578
193597939688
193610310810596
1937117134124112
1938115150130116

The low point during the twelve years covered by the table was reached in 1932-33. The figures for that year indicate a decrease by comparison with 1926-27 of 22 per cent. in the aggregate volume of goods available for use and of 27 per cent. in the volume per head, the decreases, as compared with 1929-30 being as much as 34 per cent. and. 35 per cent. respectively. The 1934—35 aggregate volume is 4 per cent. below the 1926-27 figure—while the 1935-36 total is 5 per cent. above the 1926-27 figure, though, on a per head basis 4 per cent. below the level in that year. A peak in aggregate consumption was reached in 1937-38 at a level 30 per cent. above the 1926-27 base; volume of consumption per head—16 per cent. above 1926-27—is also a peak figure.

While, in the ultimate analysis, the rate of growth of the population is probably the most significant basic factor underlying the long-term movement in the How of goods entering into consumption, the standard of living of the people as a whole is another factor of paramount importance. In the absence of a marked ingress or egress through migration movements, short-term population changes are relatively small; while, in periods of rapid economic change such as have occurred during the period covered by the above table, substantial year-to-year changes in the standard of living of large sections of the community may and do occur. The marked movements in the index numbers of the aggregate volume of goods available for use shown in the above table are probably symptomatic of variations in the standard of living. A further factor of considerable importance is the fluctuation in the volume of consumption of capital goods, which, judging by the available statistics illustrating the volume of building activity, has been subject to very considerable movements during the past few years. Between 1930-31 and 1932-33 the fall in building activity was considerably greater than that in the total volume of production or of imports. It was evident that normal replacements of capital goods were not being carried out—in short, the volume of production of goods (for export and home consumption) was being maintained only at the expense of some depreciation of capital assets. An indication of changes in the volume of consumption of the more immediately consumable types of goods is afforded by the next table, from which certain important classes of durable goods are omitted.

In periods of depression notable changes in the composition of goods produced or imported for use within the Dominion may be expected to occur. In particular, construction and other expenditure of a capital nature is severely restricted, despite governmental assistance towards the encouragement of building enterprise. With a view to throwing some light on the changes in the volume of consumption of immediately consumable goods, the products of certain industries and some of the more durable imports have been excluded from the statistics of value of goods available for use. The classes excluded are—(1) Building and construction (including expenditure by the Public Works Department and local authorities on construction and maintenance); (2) imports of machinery and machines; (3) value of products of general engineering works and agricultural and dairying machinery manufactories operating in the Dominion. The residuum approaches the total value of the less durable types of goods used in the Dominion. It has not been found possible to make a distinction between producers' goods and consumers' goods included in the remaining total. A difficulty exists in the fact that many commodities may be used either as material for further production or for final consumption.

INDEX NUMBERS OF VOLUME OF GOODS AVAILABLE FOR USE .

Year ended 30th June,All Goods.Goods other than Capital Goods.
Volume.Value.Price Level.Volume.
Total.Per Head.Total.Per Head.
1927100100100100100100
19289997979710098
192910810511196116113
193011811311795123118
1931999486909591
1932817669868075
1933787372868478
1934857877878882
19359688908910293
19361059610090111101
193712411212194129116
193813011612099122108

In compiling the index numbers of volume (excluding capital goods) a special wholesale-prices index number was compiled to enable the values to be assessed on the assumption of unchanging prices. For the first four years covered there were only very slight differences between the index numbers of volume for all goods and for commodities other than capital goods. In 1930-31 and 1931-32 the figures for all goods were the higher, but, from 1932-33 to 1936-37, the index numbers for the less durable goods were the higher. Despite the substantial increase in building and other capital construction in 1934-35, 1935-36, and 1936-37, the volume of goods available for immediate use increased during these years at a slightly greater rate than that for all goods. The position, however, was reversed in 1937-38, when a decrease of 5 per cent. in the volume of goods, other than capital goods, was associated with an increase of 5 per cent. in the volume for all goods available for consumption. The substantial increase in the volume of capital goods in 1937-38 resulted principally from increases in building and construction and public-works activity during the year.

NEW ZEALAND PRODUCE CONSUMED IN THE DOMINION.

Statistics of the value of production are given in the Miscellaneous section of this Year-Book. From this basis it is possible to compute the ratio of internal consumption to exports, a feature which is of peculiar significance to New Zealand in view of its high per caput overseas trade and debt.

It is first necessary to deduct from the production totals (miscellaneous group) the value represented by buildings and by road and railway construction, &c., for these items are not capable of being exported. In order to avoid such fluctuations as are caused by the unequal incidence of price-changes or by the holding of wool stocks, &c., the aggregate of five years has been adopted. For production, figures have been taken for the production years (terminating at varying dates for different commodities) 1933-34 to 1937-38; for exports, partly as there is a lag between production and export, the calendar years 1934-38 have been adopted.

Produce.Consumed in New Zealand. Per Cent.Exported, Per Cent.
Agricultural and pastoral2971
Forest8812
Mining6337
Factory and other982
Totals5050

The term “Factory' and other” includes fisheries, factory (added value), and other industrial production; but it should be noted that the output of butter and cheese factories and of meat-freezing works is treated herein under agricultural and pastoral, and not under factory production. Similarly, sawmill output is included with forestry.

An important qualification of the above figures lies in the fact that production values are computed as close to the point of production as possible, while export values are f.o.b. at the point of shipment, and consequently include transport and accessory charges. The effect is to understate the proportion consumed in New Zealand, which may be taken as approximately 55 per cent. of the total production of commodities.

While the statistical data discussed in the foregoing pages afford an indication of movements in the value and volume of Dominion consumption of important classes of commodities in the aggregate, considerable interest attaches to the statistics for individual commodities of importance. Estimates of the consumption of a selection of individual commodities are given in the following paragraphs. No indication of the distribution of consumption of these commodities among individual classes of consumers is available; and, indeed, a family budget collection on a very extensive scale would be necessary to provide such information. The aggregate Dominion consumption of each commodity has been arrived at by taking into consideration statistics of production, of exports, and of imports, having regard also to changes in held-over stocks—where such data are available.

Figures showing for some of the more important food products of the Dominion in which an export trade is maintained, the respective proportions of the total production which are consumed in New Zealand and exported, are given in the following table:—

 Consumed in New Zealand. Per Cent.Exported. Per Cent.
Butter1783
Cheese793
Beef7228
Mutton4753
Lamb595
Pig-meat3169
Potatoes (suitable for table use)8812

The foregoing estimates are based on statistics of production, net exports, and stocks (where available) for the latest three-yearly period. In view of the very high proportion which exports bear to total production in some cases—e.g., cheese—the percentages must be regarded as approximate only.

The production and export of potatoes have varied considerably during recent years, the proportion exported each year ranging from 1 per cent. to 24 per cent. The percentages quoted for this product are affected by the inclusion of the year 1937, when approximately 24 per cent. of the table potatoes produced were exported, principally to South America, where there was a shortage in that year.

DAIRY-PRODUCTS AND MEATS.

Butter.—Available statistics indicate that the annual consumption of butter in the Dominion has increased from approximately 435,000 cwt. ten years ago to 555,000 cwt. at the present time, the latter figure representing an annual average consumption of 40 lb. per head and the former a little under 35 lb. per head.

Cheese.—Estimates of the quantum of New Zealand's consumption of cheese cannot be made with any close approach to accuracy. Well over 90 per cent. of the average annual output of cheese is exported, so that the impossibility of obtaining exact correspondence in the periods covered by statistics of production, of exports, and of hold-over stocks may involve a serious proportionate error in the estimate of the small residuum comprising New Zealand consumption. From a consideration of available statistics over a period of years it would appear that New Zealand consumption of cheese averages approximately 100,000 cwt. to 125,000 cwt. annually—equal to 7 lb. to 9 lb. per head of population. Some increase in the quantity consumed is indicated by relevant statistics for recent years.

Whole Milk.—Statistical data indicative of the consumption of whole milk point to an average consumption per head of approximately & pint per day. While the available data on which to base an estimate of milk-consumption are somewhat meagre, it would appear that some increase has occurred in recent years, earlier estimates giving a per head consumption of about ½ pint per day. Consumption of whole milk accounts for only 3 to 4 per cent. of total milk-production in the Dominion. The estimate of whole-milk consumption here given includes the whole-milk equivalent of cream consumed as such, and of cream and powders used in ice-cream manufacture.

Beef.—From statistics of cattle slaughterings and of exports of beef it is estimated that the amount of beef used in New Zealand is approximately 2,000,000 cwt. to 2,500,000 cwt. (inclusive of bone) annually, the average annual consumption per head being from 140 lb. to 175 lb. Estimates of the consumption of beef cannot be made with any close degree of accuracy, since statistics of slaughterings do not indicate the weight of each carcase slaughtered and an appreciable margin of error is possible in the estimation of weight.

Mutton and Lamb.—Consumption of mutton and lamb in the Dominion has increased during the last four years, the average annual consumption over the three years ending 1938-39 being 1,100,000 cwt., equivalent to 77 lb. per head of population. Statistics for 1931-32 indicate that upwards of 1,600,000 cwt. of mutton and lamb were consumed annually at that time. Immediately subsequent years revealed decreases in the amount consumed, the low point being reached in 1934-35, when only 800,000 cwt. was consumed.

Pig Meat.—Consumption of pork within the Dominion accounts for an annual average consumption of 100,000 cwt., the average consumption per head of population being about 7 lb. Exports of New Zealand pork have been maintained at a very high level during the three years ending 1937-38, an average of approximately 670,000 carcases being forwarded each year.

From statistics of production and of external trade it is possible to arrive at an approximate total of bacon and ham available for consumption within the Dominion. The average annual quantity available for consumption is approximately 165,000 cwt., or 12 lb. per head of population.

Empire Comparison.—The following comparison of annual consumption of whole milk, butter, cheese, and meats in New Zealand, Great Britain, Australia, and Canada, per head of population, is of interest. In each instance the latest available data are quoted.

Item.Unit of Measure.Annual Average Consumption per Head.
New Zealand.Great Britain.Australia.Canada.

* Veal not included.

† United Kingdom.

Whole milkGallon25-3015-2022½37½
ButterLb.40253432
CheeseLb.7-99
Meats—     
Beef (including veal)Lb.140-175*6914659
Mutton and lambLb.7730726
Pig meatsLb.19422162
Total, meats mentionedLb.266*141239127

Some interesting differences in habits of consumption are revealed by this comparison. New Zealand and Australia are considerably heavier meat-eating countries than either Great Britain or Canada. An interesting point is the predominance of pig meats in Canadian meat-consumption and the low position occupied by mutton and lamb. Incidentally, it should be noted that, while statistics of poultry consumption cannot be obtained for all four countries, data available in respect of Canada indicate that poultry occupies a much more important place in the dietary of that country than is the case in New Zealand. Pig meats have a very important place in the meat-consumption of Great Britain and Canada as contrasted with a comparatively minor position in both New Zealand and Australia. Whole-milk consumption is markedly higher in Canada than in New Zealand, Australia, or the United Kingdom, although it will be noted that butter-consumption is relatively very high in New Zealand.

This brief table serves to illustrate the dangers of international comparisons of consumption of individual commodities, as, even in this short list of important foodstuffs, it is quite apparent that the differences for individual commodities represent in some instances differences in habits rather than a lower or higher standard of consumption. It would seem that the consumption of dairy-products is considerably lower in the United Kingdom than in any of the other three countries, but that, while there are marked differences in respect of individual commodities in the case of the other three countries, such differences are—generally speaking— of a compensatory nature.

CEREALS AND VEGETABLES.

Wheaten Products.—The aggregate consumption of flour in the Dominion has been fairly constant, normally ranging between 140,000 and 145,000 short tons per annum. Statistics for the year 1938-39 indicate a decrease to 135,000 short tons, but this drop was associated with an increase in the production of wheatmeal and wholemeal as compared with the previous year. The annual consumption of flour per head has declined from 200 lb. some years ago to approximately 180 lb. in the last three years. Statistics of wheatmeal and wholemeal production for 1938-39 which, in the absence of figures of stocks, may be taken to approximate consumption, aggregate 8,400 tons for the year, or an average of 10½ lb per head of population. Statistics of bread-consumption are not available; but from a household budget survey conducted by the Census and Statistics Department in 1930 it would appear that the average consumption of bread per head is approximately £ lb. per day. Flour and wholemeal used in breadmaking are included in the estimates quoted.

Other Cereal Products.—Oatmeal and oaten products consumed in New Zealand are almost entirely of New Zealand manufacture. Production of oatmeal in New Zealand approximated 4,500 tons annually for some years, but latterly production has declined, there being only 3,268 tons produced in 1938-39. In addition, from 3,500 to 4,000 tons of other oaten products for human consumption are produced each year. These totals, for the last three years available, represent an annual consumption per head of 4½ lb. of oatmeal and 4½ lb. of other oaten products.

Vegetables.—No data are available as to the consumption of vegetables, the quantities grown in home gardens being a matter of pure conjecture; while, even in respect of market gardens, only acreage statistics (for holdings 1 acre and upwards outside borough boundaries) are available. Statistics in respect of production of potatoes and onions grown on farm holdings are collected, however, from which the following estimates have been made, after taking into consideration external trade in these commodities.

ANNUAL CONSUMPTION OF POTATOES AND ONIONS.

Annual Average of Three-year Period.Potatoes.Onions.
Total (including Seed and Pig Potatoes).Table Potatoes.Total. Consumption,Per Head.
Total. Consumption.Per Head.
 Tons (000).Tons(000).lb.Tons(000).lb.
1930-31 to 1932-3313282120913
1931-32 to 1933-3412678113812
1932-33 to 1934-3512376110912
1933-34 to 1935-3612078112812
1934-35 to 1936-3711972102812
1935-36 to 1937-3813181114812

Some marked variations are observed in the case of potatoes, the low figures generally corresponding to seasons when there were crop shortages. The variations in human consumption are probably not as great as the figures would indicate, since in flush years (when prices are unprofitable) an appreciable proportion of the crop will be fed to animals or wasted in storage. Considerable year to year variations are also possible in the unknown quantities of potatoes and onions grown in home gardens.

The commodities dealt with under this and the previous headings comprise what may be described as basic foodstuffs. Data indicative of consumption of these commodities in recent years do not suggest any marked falling-off during the depression years, although material changes are observed in the consumption of some of these commodities as compared with the position several years ago. In recent years an upward movement in consumption is observed in some instances —notably in butter-consumption. It should be noted, however, that, while statistical evidence points to increases during the depression period in consumption of some of the basically necessary foodstuffs (under the stimulus of lower prices), this does not necessarily preclude the possibility, or indeed the probability, of a considerable fall in consumption in the case of individual families suffering greatly diminished incomes at that time.

OTHER FOODS, BEVERAGES, AND TOBACCO.

Marked movements have occurred in recent years in the aggregate consumption of many commodities included under this heading.

Eggs.—A census of poultry was taken in conjunction with the 1936 census of population; and by using the statistics made available from this inquiry, it is possible to estimate the annual production of eggs. The average annual production of eggs is estimated at 375,000,000, while exports of eggs and egg-pulp would account for approximately 5,000,000 eggs per annum. New Zealand consumption in all forms thus accounts for approximately 370,000,000 eggs in a year—a per caput consumption of 20 dozen.

Fresh Fruits.—Estimates of Dominion consumption of New-Zealand-produced fruits are particularly difficult in view of the fact that in rural localities—and oven in some of the larger centres of population—homestead gardens contribute materially to' the fruit-supplies of many individual families.

Statistics of production of certain classes of fruit on holdings of 1 acre and upwards outside borough boundaries are published on page 441. From the 1937-38 statistics of production, in conjunction with the external-trade statistics, estimates of New Zealand consumption of the more important fruits have been compiled. The figures are shown in the following table; while for comparative purposes similar estimates based on the 1930 collection of orchard statistics are given:—

Variety of Fruit.1930.1938.
Total.Per Head.Total.Per Head.
 lb.(000).lb.lb.(000).lb.
Apples37,13124.975,58147.0
Pears6,6044.411,2897.0
Peaches5,7913.98,5725.3
Nectarines6570.41,6631.0
Apricots2,1421.43,2302.0
Plums2,5381.73,9482.5
Oranges16,93311.335,22221.9
Lemons2,8441.94,3792.7
Bananas19,04212.841,18125.6

The figures in the above table indicate a substantial increase in consumption of fruits since 1930—probably the reflection of a more general recognition of the value of fruit in the dietary. The consumption of stone-fruits is, of course, variable, depending on the season, a fact which should be borne in mind in interpreting the figures shown for such fruits.

A further point of interest is the fact that the statistics of consumption of oranges and lemons quoted for 1938 include a much greater proportion of New Zealand fruits than is included in the corresponding figures for 1930. New Zealand production of lemons in 1930 totalled 1,570,000 lb., and in 1938 3,855,600 lb., imports in the former year totalling 1,272,000 lb. and in the latter year 523,000 lb. It will be seen that, while consumption has increased by more than 50 per cent. between the two years, imports have fallen by more than 50 per cent. A similar, though less striking, transition from imports to local production is observed in the case of oranges. In this instance, however, the increase in local production has been, to date, largely confined to bitter oranges, imports still accounting for practically the whole local consumption of sweet oranges.

Dried Fruits.—The following table, showing imports of dried fruits in 1926 and from 1933 to 1938, illustrates the changes in consumption of these commodities:—

Commodity.Unit of Quantity.1926.1933.1934.1935.1936.1937.1938.
Raisins and sultanasTons4,0373,7653,7784,6984,7305,0974,175
Per headLb.6.45.55.56.76.77.25.8
CurrantsTons469538744597781844636
Per headLb.0.70.81.10.91.11.20.9
DatesTons1,2381,7222,3741,9841,4983,0862,356
Per headLb.2.02.53.42.82.14.33.3
PrunesTons8748088049301,0471,2051,211
Per headLb.1.41.21.21.31.51.71.7
ApricotsTons217223348405569466627
Per headLb.0.30.30.50.60.80.70.9

Canned Fruits.—The production of canned fruits in New Zealand factories increased from 6,177 cwt. in 1926-27 to 26,951 cwt. in 1932-33, falling to 19,629 cwt. in 1934-35 (a poor fruit-production season), increasing to 34,071 cwt. in 1935-36, and falling to 33,004 cwt. in 1936-37, and 30,796 cwt. in 1937-38. The quantities of imports of canned fruits in 1927 and from 1932 to 1938 are indicated in the following table. Owing to variations in the size of the tins, the movements in the figures can be regarded only as an approximate indication of changes in imports of these commodities.

IMPORTS OF CANNED FRUITS.

Year.Apricots.Peaches.Pineapples.Pears.Other Fruits.
Thousand Dozen Tins.
192767108181168
1932326220521
1933204015612
1934445824025
19354568317219
19364683296729
1937571734185456
Thousand Pounds.
19381,4454,3017,6681551,682

A sharp falling-off is indicated in 1933 (as was the case with dried fruits), while the 1937 figures, particularly for peaches, show a remarkable increase.

The change in the basis of quotation from dozen tins to actual weight makes it difficult to compare quantities imported in 1938 with previous years. Statistics of value of imports under the above headings, however, indicate that, with the exception of pineapples which showed little change, and pears which showed a big decrease, the quantities of canned fruit imported were greater in 1938 than in the previous year.

From consideration of the actual weight of imports of canned fruits which is now available and statistics of local production, the total annual consumption of canned fruits would appear to be in the vicinity of 8,000 tons, or 11 lb. per head of population.

Miscellaneous Foods, Beverages, and Tobacco.—In the following table the estimated Dominion consumption of each of a selection of miscellaneous foodstuffs and beverages is shown for 1925-26, and for each of the years 1932-33 to 1938-39. In some cases the figures relate to the previous calendar year.

Commodity.Unit of Quantity.1925-261932-331933-341934-351935-361936-371937-381938-39

* 1928 figures.

† Figures not available.

Dominion Totals.
Fresh sea fishTons.18,75513,43914,20613,96115,56115,31415,51715,625
Canned fishTons.1,9469998531,3371,6771,9602,3852,508
Refined sugarTons.67,23277,27469,62067,68776,82678,75981,76071,552
SaltTons.31,68732,15034,42234,47533,78935,06540,28036,749
Maizena and cornflourTons.1,0611,4101,5031,5411,6281,8531,7441,649
Sago and tapiocaTons.1,5821,5051,1841,4411,3681,1941,0961,137
RiceTons.3,2743,1443,6183,9003,6403,8063,9263,288
Desiccated coconutTons.363513662655621802866711
MustardTons.1168592119123102117104
PeelTons.176238227328328335331448
Confectionery (including chocolate)Tons.10,100*8,4149,3799,54610,18711,58512,14212,716
Ice-cream (factory production)Thousand gallons273*277246397381431742659
Aerated watersThousand gallons1,3041,2961,7011,6942 0252,8512,602
TeaTons4,8074,6495,1794,5404,4525,0164,7694,989
TobaccoTons1,9761,8822,0122,1562,2042,4912,7003,013
Per Head of Population.
Fresh sea fishLb.3020212022222222
Canned fishLb.3.11.51.21.92.42.83.43.5
Refined sugarLb.10911310198110112115100
SaltLb.5147505048505751
Maizena and cornflourLb.1.72.02.22.22.32.62.52.3
Sage and tapiocaLb.2.62.21.72.12.01.71.51.6
RiceLb.5.34.65.35.65.25.45.54.6
Desiccated coconut.Lb.0.60.81.00.90.91.11.21.0
MustardOz.3.02.02.12.72.82.32.62.3
PeelLb.4.55.65.37.67.57.67.410.0
Confectionery (including chocolate)Lb.16*12141415161718
Ice-cream (factory production)Pints1.6*1.41.32.01.92.23.73.3
Aerated watersGallons0.90.81.11.11.31.81.6
TeaLb.7.86.87.56.66.47.16.77.0
TobaccoLb.3.22.82.93.13.23.53.84.2

Alcoholic Liquors.—The following table shows estimates of the Dominion consumption of alcoholic liquors in each of the calendar years shown. The figures are based on the Customs returns, with an addition in respect of New-Zealand-produced wine and eider, which are not included in such returns.

Item.1926.1932.1934.1935.1936.1937.1938.
* Including locally produced cider.
Beer (ale and stout)—       
Total (000 gallons)12,9498,8689,60611,15912,93515,06117,126
Per head (gallons)9.25.86.27.18.29.510.7
Potable spirits—       
Total (000 gallons)658323325338385411442
Per head (gallons)0.470.210.210.220.240.260.28
Wine*       
Total (000 gallons)262151227270290293322
Per head (gallons)0.190.100.150.170.180.180.20

CLOTHING.

An estimate of the Dominion's annual requirements of apparel is impossible of attainment in view of the heterogeneous nature of the items covered by this group. Some indication of changes in the consumption of clothing is, however, afforded by statistics of local production and of imports of piece-goods. Statistics of quantities of piece-goods imported are available in respect of the year 1938 only. In the following table, available figures are shown for the years 1926, 1932, and 1934-38.

Item.Unit of Quantity.1926.1932.1934.1935.1936.1937.1939.

* Not available.

† Local production, plus imports, minus exports.

Woollen piece-goods—        
Quantity importedMillion sq. yds.******4.1
New Zealand productionMillion run. yds.2.11.82.22.32.12.32.1
Silk and artificial silk piece-goods—        
Quantity importedMillion sq. yds.******13.8
Cotton and linen piece-goods—        
Quantity importedMillion sq. yds.******31.0
Blankets (local production only)Thousand pair128117116127157168165
Boots and shoes Ditto3,9023,3894,8844,8355,1625,6306,085

While no complete statistics are available as to the quantity of made-up Apparel imported, the value of imports of miscellaneous made-up apparel fell from an average of over £2,000,000 during 1926-29 to one of £1,280,000 in 1933-38. Figures for the calendar years 1926 and 1931-38 are as follows:—

Year.Value.Year.Value.
 £(N.Z.) £(N.Z.)
19262,238,36819341,036,896
19311,279,68019351,108,285
1932937,68419361,262,306
1933947,32419371,811,650
....19381,525,976

The relative buoyancy of imports and of New Zealand production of piece-goods indicates that the Dominion's ready-made clothing requirements are considerably greater than was the case some years ago. Statistics of the output of clothing factories indicate a substantial increase in clothing manufacture since 1931-32, the value of products rising from £2,153,467 in that year to £3,962,056 in 1937-38. No data are available as to bespoke tailoring.

Statistics of quantities of some items of clothing imported during 1938 are available, and, if local production be added, the resultant quantities, representing approximately the annual requirements of these items, are as follows:—

Overcoats (Number)430,000
Hosiery (Dozen pairs)785,000
Neckties (Dozen)110,000

Trade statistics for recent years indicate that the bulk of imports of boots and shoes is now comprised of rubber-soled shoes for sports wear, &c. Imports of leather boots and shoes declined from 101,138 dozen pairs in 1928 to 43,472 dozen pairs in 1938, while production in New Zealand factories has risen from 120,501 dozen pairs in 1927-28 to 154,818 dozen pairs in 1937-38. It will be observed that the increase in local production of leather footwear over the period is considerably less than the fall in imports. A very substantial increase in the use of rubber-soled shoes is indicated by imports of this item, and this increase has apparently been accompanied by a material decrease in the use of leather footwear.

OTHER COMMODITIES.

Fuel and Lighting.—Statistics indicative of the Dominion consumption of fuel and lighting are shown below. Consumption of gas and of electricity, both of which may be regarded as services rather than commodities, are included in the fuel and lighting group. No data are available as to consumption of firewood.

Item.Description.Unit.1926.1932.1933.1934.1935.1936.1937.1938.
CoalTotal consumptionMillion tons2.51.91.92.12.22.22.32.3
CoalDomestic consumptionMillion tons0.90.80.70.90.90.90.90.8
KeroseneIlluminatingMillion gals.2.32.61.81.71.82.61.61.9
CandlesTotal consumptionMillion lb.3.82.32.52.42.52.32.11.7
GasTotal consumptionMillion cub. ft.3,3723,4383,3383,2823,2633,3243,4443,540
ElectricityTotal consumptionMillion units288315635667710775856976

Petrol.—The following table, taken from the Annual Report of the Transport Department, shows the consumption of petrol in each of the last ten years. Data as to motor-vehicles licensed, &c., are included in a previous section (Section XIV: Roads and Road Transport).

Calendar Year.Consumption of Petrol.
By Motor-vehicles.Other.Totals.
 Gals.(000).Gals.(000).Gals.(000).
192956,5763,65060,226
193062,8213,90866,729
193155,2035,28660,489
193249,8625,49555,357
193351,2945,40056,694
193455,9926,10062,092
193562,8076,48469,291
193672,1076,68678,793
193782,1117,33989,450
193889,3067,59096,896

Miscellaneous Goods.—In the following table the values of imports of a number of miscellaneous consumers' goods are shown. In view of the heterogeneous nature of many of the items included—e.g., fancy goods—no indication is available as to the quantity of imports, nor, indeed, would such figures have much significance.

VALUE OF IMPORTS (IN NEW ZEALAND CURRENCY).

Commodity.1926.1929.1932.1933.1935.1936.1937.1938.

* Not available.

† Passenger vehicles other than buses.

£(000)£(000)£(000)£(000)£(000)£(000)£(000)£(000) 
Miscellaneous hardware and ironmongery1,1479173463566628181,1001,013
Sewing-machines991335772130164262189
Vacuum cleaners*6829367281135141
Plate and plated ware10010043547072106108
Earthenware and chinaware292344137153241278338321
Miscellaneous glassware104107334395120154156
Linoleum2042317477138180223194
Carpets and mats453419174217358509693491
Fancy goods and toys419445144174220256329311
Watches and clocks155147284883136148217
Jewellery and precious stones133964040608276125
Perfumery and toilet preparations150200129151190209235239
Books, papers, and music488514334380438518604711
Miscellaneous sporting and athletic requisites121144102118132150191177
Motor-cycles and parts2232715683149189262142
Motor-ears and chassis3,0803,4074644812,7173,5584,7204,506
Gramophones and records315373503432384547
Wireless apparatus**264288319441607430

The commodities for which import statistics are quoted above are, in general, particularly sensitive to economic changes, the aggregate import value of these items for each of the years shown being—

Year.Value.Year.Value.
* Approximate.
 £(N.Z.) £(N.Z).
19267,500,000*1,9356,106,000
19298,000,000*1,9367,799,000
19322,504,0001,93710,228,000
19332,805,0001,9389,518,000

The fall from £8,000,000 in 1929 to only £2,504,000 in 1932 and £2,805,000 in 1933 in imports of these items is a significant indication of the effects of the depression on expenditure on goods other than immediate necessaries. The fall is even more marked than the figures indicate, owing to the depreciation of New Zealand currency during the period. The figures for 1929 and 1933 on a sterling basis would be £8,000,000 and £2,244,000; and, on a gold basis, £8,000,000 and £1,526,000. A marked recovery took place in the four years immediately following. An important point, however, which must not be lost sight of, and which is evidenced in the figures for 1938, is the increasing part played by New Zealand factories in the provision of miscellaneous consumers' goods, local production of certain classes of these goods—e.g., radios—having made great advances in the last few years. Comparison of the statistics quoted above with corresponding figures in respect of local factory production (see particularly tables on pages 521-522 and 536-544) will illustrate this point.

Chapter 44. SECTION XLIV.—RADIO BROADCASTING.

INTRODUCTORY.

PRIOR to the year 1924 interest in radio-broadcasting was principally confined to a small section of the populace who were engaged in experimental transmission or reception of radio signals. As early as 1921, to meet the demands of this section of the public, a system of “provisional permits” was inaugurated by the Post and Telegraph Department, by which approved persons were permitted to erect and operate radio transmitting or receiving stations. (Approximately four hundred such permits were issued during that year.) The year 1922 saw further interest being taken; and, in January, 1923, regulations were gazetted under which provisions were laid down for the conduct of transmitting and receiving stations, including, inter alia, provision for the appointment of District Radio Inspectors. Licenses were issued under these regulations upon application being made and a reference as to personal character being certified to by a reputable citizen. The approval of the District Radio Inspector and of the Post and Telegraph Department was then required, and also the payment of the prescribed annual license fee (in the case of an amateur receiving-station, 5s.).

This new avenue for experiment and entertainment developed to such an extent that on 31st March, 1924, there were 2,830 licensed amateur receiving-stations. A number of comparatively low-powered broadcasting-stations had been erected and operated by private enterprise with a measure of success, but the development of this class of station was retarded chiefly through lack of funds.

In consideration of the plight of these broadcasting-stations, and to ensure a reasonable standard of performance of such stations, regulations were gazetted by Order in Council providing that as from the 1st April, 1925, the annual license fees were to be increased (in the case of an amateur receiving-station to £1 10s.). The intention was that the additional amount of revenue obtained should be used to subsidize broadcasting-stations. A fee was also made payable by dealers in radio apparatus, 90 per cent. of the receipts from this being used for the conduct of a radio-broadcasting service.

The regulations empowered the Minister of Telegraphs to enter into a contract with a person or company with a view to providing a broadcasting-service, such service to be given by the operation of a broadcasting-station in each of the four main centres. Provisions were laid down as to the power of these stations, and the service to be given—a twelve-hour service per week (exclusive of Sunday) being specified as the minimum, with provision for one silent night per week.

The Radio-broadcasting Company of New Zealand, Ltd., undertook on 1st August, 1925, to provide a radio-broadcasting service on the conditions laid down in the st and Telegraph Amendment Act, 1924, and the gazetted regulations of 1st April, 1925. The agreement entered into provided for the establishment and maintenance of an efficient broadcasting service for a term of five years, and the company was to provide any new apparatus that might be necessary in order to keep the stations and equipment up to date. The agreement also stated that two of the four stations (Auckland and Christchurch) mentioned in the regulations were to be in operation within six months of the date of the agreement, and also that a company with a capital of £20,000 was to be formed within one month to ratify the agreement. The company purchased existing stations in the four main centres, and commenced operations at its new Auckland station on 7th August, 1926, and at its new Christchurch station on the 1st September, 1926. These stations were considered high-powered units (500 watts) as provided for in the regulations.

Following out the terms of the agreement, the company also opened up new stations at Wellington and Dunedin during the term of its contract. In the case of the Wellington station, the company, in consideration of a loan of £15,000 from the Government, erected a high-power station of 5,000 watts, this station being opened on the 16th July, 1927.

The provision of this broadcasting service had the effect of increasing the number of licensed receiving-stations from approximately four thousand in 1926 to approximately seventy thousand at the end of 1931.

NEW ZEALAND BROADCASTING BOARD.

In January, 1932, the five-years' contract with the Radio-broadcasting Company of New Zealand, Ltd., having expired, the control of the broadcasting service was vested in the New Zealand Broadcasting Board (constituted by the Broadcasting Act, 1931), which took over the existing plant at the purchase-price of £58,646. The Post and Telegraph Department advanced this amount by way of loan, together with legal costs incidental to the valuation and the transfer to the Board.

One of the first actions of the Broadcasting Board was to set up a Commission to go into the question of coverage, in order that the future policy of the Board could be decided with due consideration to the most effective locations for its stations, and the most suitable equipment to be used in order to give the greatest service to listeners throughout the whole Dominion. Following on the recommendations of this Commission, and exhaustive tests carried out by the Board's staff, it was decided that the location of the four main stations should be altered to give better coverage, while, coupled with this, was the decision to make these four new stations high-powered units. The respective locations of these “YA” stations were: Auckland, at Henderson; Wellington, at Titahi Bay; Christchurch, at Gebbie's Pass; and Dunedin, at Highcliff.

Under section 4 of the Broadcasting Act of 1931 an Advisory Council of eight members (“five of whom shall be ordinarily resident in the North Island, and three shall be ordinarily resident in the South Island”) was appointed by the Governor-General, on the recommendation of the Minister, to advise the Board in respect of its functions under the Act. This Advisory Council was abolished under section 5 of the Broadcasting Amendment Act of 1934-35.

The amending Act increased the numerical strength of the Board from three to seven, and charged it with the additional responsibility of supervising the programmes broadcast by private broadcasting-stations. Two of the seven members of the reconstituted Board were to be appointed from persons nominated in that behalf by organizations recognized by the Minister as being representative of the holders of receiving-licenses. Of the reconstituted Board, the Chairman was to hold office for a period not exceeding five years, while three of the remaining members were appointed for a period not exceeding four years, and the remaining three for a period not exceeding three years from the date of first appointment. Subsequent appointment of the chairman and members was to have been for a period not exceeding three years.

NATIONAL BROADCASTING SERVICE.

The Broadcasting Act of 1936 abolished the then existing Broadcasting Board as from the 1st July, 1936, and in its place vested the control of the National Broadcasting Service in a Minister of the Crown. All property, rights, liabilities, and engagements of the Board were transferred to the Crown.

The administration of the service was placed in the hands of a Director of Broadcasting, appointed by the Governor-General in Council to hold office for a period not exceeding three years. Permanent officers in the employ of the Broadcasting Board became officers of the Public Service as from the 1st July, 1936, and the Act contains other provisions relating to the appointment to the Public Service of any other persons who are possessed of any technical or other expert knowledge in relation to broadcasting.

Section 9 of the Act allows for the appointment of an advisory body, called the Broadcasting Advisory Council, to consist of not more than five members, to be appointed from time to time by the Governor-General on the recommendation of the Minister. Appointment to the Council is for a period of three years, except that members may be reappointed or removed from office by the Governor-General.

No advertisement for the pecuniary benefit of any person may be broadcast from any broadcasting-station, except commercial stations owned by the Crown. For every locality that is served by a commercial station an alternative service from at least one non-commercial station must be provided.

All programmes to be transmitted from private broadcasting-stations (see below) are supervised, and the Minister has authority to prohibit the broadcasting of any programme or part of a programme which in his opinion is unsuitable for broadcasting.

STATIONS AND PROGRAMMES.

There are (October, 1939) fourteen national broadcasting-stations as follows:—

Station.Aerial Energy.Frequency.Wave-length.
 Kilowatts.Kilocycles.Metres.
1YA, Auckland10.00650462
1YX, Auckland0.15880341
1ZM, Auckland1.001,250240
2YA, Wellington60.00570526
2YC, Wellington5.00840357
2YD, Wellington0.20990303
2YH, Napier5.00760395
2YN, Nelson0.03920327
3YA, Christchurch10.00720416
3YL, Christchurch0.301,200250
3ZR, Greymouth0.10940319
4YA, Dunedin10.00790380
4YO, Dunedin0.151,140263
4YZ, Invercargill5.00680441

The four “YA” stations are the principal stations of the National Broadcasting Service, stations 1YX (Auckland), 2YC (Wellington), 3YL (Christchurch), and 4YO (Dunedin) ranking as alternative or auxiliary stations.

In order to give the best service possible for listeners throughout the entire Dominion, further services are provided by two other classes of stations: Government-owned stations operated under contract, and privately owned stations. These are—

2YB, New Plymouth.2ZM, Gisborne.
2ZJ, Gisborne.4ZD, Dunedin.

The aggregate transmission-time in respect of the National Broadcasting Service stations in operation at 31st March, 1939, is at the rate of 48,139 hours annually. During the twelve months ended 31st March, 1939, transmission-time of stations in operation aggregated 38,653 hours, of which 17 hours 15 minutes were lost owing to technical faults and power failures. The main stations transmit almost continuously on week-days from 7 a.m. to 11 p.m., and on Sundays from 9 a.m. to 12.15 p.m., 1 p.m. to 4.30 p.m., and 6 p.m. to 10 p.m.; while the alternative stations transmit from 5 p.m. to 6 p.m. and 7 p.m. to 10.30 p.m. on week-days and from 6 p.m. to 10 p.m. on Sundays.

The programme analysis in respect of the National Broadcasting Service stations for the year ended 31st March, 1939, shows that, of the total transmitting-time, 72.58 per cent. was devoted to music; 6.27 per cent. to news, reports, and announcements, &c.; 3.82 per cent. to educative and general talks; 4.46 per cent. to children's sessions; 6.34 per cent. to plays and sketches; 2.75 per cent. to church and devotional services; and 2.18 per cent. to sporting commentaries and sporting talks.

As occasion has permitted, many notable artists have been engaged, while many distinguished visitors from overseas have given talks, &c. In order to supplement the relay lines available, and also to make it possible to broadcast descriptions of events and happenings at places not served by relay-lines, each of the four main stations is now equipped with a portable short-wave transmitter with a range of approximately ten miles.

Disk-recording equipment is now being used, and many important events occurring at times unsuitable for broadcasting are being recorded and transmitted at an hour suitable to the majority of listeners. A library of special recordings of noteworthy events and talks by prominent people is also being built up, not only for use in future programmes but also with the object of preserving a permanent national record. Several recorded programmes have been purchased from the British Broadcasting Corporation, and these have given New Zealand listeners the opportunity of hearing some of the best British artists.

The proceedings in the House of Representatives are broadcast from station 2YA in order to acquaint the public with the provisions contained in the various Bills, and the views of the various representative?.

Time signals from the Dominion Observatory are broadcast through the national station at Wellington (2YA) four times each day, with the exception of Sunday, when only the morning and afternoon signals are broadcast. The signals take the form of a series of six “dots” at intervals of one second, the last “dot” being the exact minute. These series are broadcast at 28, 29, and 30; and 58, 59, and 60 minutes of the hour.

The time signals are broadcast daily at—

  1. 10.28, 10.29, and 10.30 a.m.

  2. 3.28, 3.29, and 3.30 p.m.

  3. 7.28, 7.29, and 7.30 p.m.

  4. 10.28, 10,29, and 10.30 p.m. except Sundays.

In the event of the failure of any of the above time signals, the signals are broadcast half an hour later.

Fuller details of this time service may be obtained from the article on mean time and time service published in the Miscellaneous Section of this Year-Book (post).

Weather forecasts issued by the New Zealand Meteorological Office are broadcast from the four principal national stations (see page 15), while the stations also broadcast reports for the benefit of aircraft and of farmers and fruitgrowers.

SHORT-WAVE BROADCASTS.

The Empire Short-wave Station in Daventry, England, broadcasts programmes for this part of the southern hemisphere, and important events and speeches broadcast from this station are rebroadcast by the New Zealand national stations.

ELIMINATION OF INTERFERENCE.

From the inception of radio-broadcasting in New Zealand, the Post and Telegraph Department has been very active in the detection and elimination where possible of all sources of interference. In the earlier years the Department endeavoured to attain this end by prohibiting circuits which would in any way cause undue interference with other radio receiving or transmitting apparatus.

The increasing use of electric power and appliances for commercial and domestic purposes has increased the number of potential sources of radio interference, while power leakages and irregularities due to faults on electric lines and apparatus keep the Department busy in applying remedial measures.

With the advent of the higher-powered broadcasting-stations and technical improvements in receiving-apparatus many of the causes of interference have been eliminated.

STATISTICS OF RADIO LICENSES.

The growth in the number of radio-receiving licenses is apparent from the following table. The movement in the figures over the period shows very clearly the increases following the provision of better broadcasting services. The license-fee for a receiving-station is (since April, 1935) £1 5s. per annum.

As at 31st March,Auckland.Wellington.Canterbury.Otago.Dominion.Licenses per Hundred of Population.
* Figures for individual districts not available.
1924****2,8300.21
1925****4,7020.34
1926****3,5880.25
1927****18,1621.26
192813,93115,1137,9312,34039,3152.70
192915,09318,0538,5283,13644,8103.05
193017,20121,9689,3714,86753,4073.59
193119,01626,02310,5437,13162,7134.15
193222,47531,05511,9639,48774,9804.92
193327,24138,49215,72712,02993,4896.08
193435,05446,35421,02815,650118,0867.62
193546,77657,18027,85021,002152,8089.79
193660,37871,15534,54126,191192,26512.22
193777,23486,79744,19833,068241,29715.20
193892,236101,71752,49338,549284,99517.76
1939101,721114,02058,52443,244317,50919.54
(30th September, 1939)107,288118,82161,82745,403333,33920.42

An indication of the increased popularity of radio entertainment may be gained from the fact that at 31st March, 1939, approximately 80 per cent. of the households in New Zealand were in possession of licensed radio-receiving sets.

A summary of all radio licenses issued in New Zealand as at the 31st March, 1939, follows:—

District.Receiving-stations.Transmitting Stations.Radio-dealers.Total Licenses.
Auckland101,721300446102,467
Wellington114,020454430114,904
Canterbury58,52421521358,952
Otago43,24414217043,556
Dominion317,5091,1111,259319,879

Licenses are issued free of charge to institutions for the blind and also to any blind person who is the recognized head of a household. In addition, commencing on 1st September, 1936, public hospitals, benevolent and orphan institutions, and other charitable institutions were granted free license privileges, provided that the sets were being used for the benefit of patients or inmates. Free license privileges were also extended to the operation of receiving-sets in schools, where such sets are used for educational broadcast purposes. The number of free licenses as at the 31st March of the last five years was: 1935, 319; 1936, 411; 1937, 564; 1938, 811; and 1939, 966.

A penalty is attached to the operating of unlicensed radio apparatus, and convictions for this offence during the last five years numbered: 1934, 1,047; 1935, 932; 1936, 983; 1937, 1,076; and 1938, 903.

A comparison of the density of radio licenses as at the 31st December, 1938, in the five leading countries where licenses are issued is as follows:—

Country.Percentage of Licenses to Population.
Denmark20.58
Sweden19.47
New Zealand19.43
Great Britain19.30
Australia16.05

FINANCIAL STATISTICS.

The distribution of the total revenue derived from the issue of radio licenses during the four financial years ended 31st March, 1936, was as follows:—

Year ended 31st March,New Zealand Broadcasting Board.Post and Telegraph Department.Amalgamated Wireless (Australasia), Ltd. (Royalty).Total.
 ££££
1933105,26317,34412,339134,946
1934132,94820,15415,817168,919
1935175,93940,2014,624220,764
1936202,84027,374..230,214

On the 1st April, 1935, the amount of the radio-receiving-station license fee was reduced from £1 10s. to £1 5s. The reduction was made possible by the termination of the agreement under which 3s. out of every license fee was paid to Amalgamated Wireless (Australasia). Ltd., in respect of patent rights controlled by that company, and by the acceptance by the Broadcasting Board of £1 3s. instead of £1 5s. in respect of each license. Regulations passed in 1937 provide for the retention in the Post Office Account of two twenty-fifths of the moneys paid into the Broadcasting Account in respect of the issue of receiving-station licenses.

During the four calendar years 1932 to 1935 the income of the (now abolished) Broadcasting Board amounted to £98,129, £125,629, £166,535, and £197,135 respectively, and during the six months ended June, 1936, to £114,182. An analysis of expenditure during each of these years and during the six months ended June, 1936, is given in the following table:—

1932.1933.1934.1935.Six mouths ended June, 1936.
* Not comparable, as no allocation is made to reserves until the end of the financial year.
 £££££
Programmes33,60539,45046,16861,59733,735
Maintenance of plant, power, &c.6,8947,79711,79814,0258,450
General expenses12,84510,87612,74914,5807,338
Administration salaries and expenses5,3156,0376,0177,4633,925
Subsidies to private “B” stations1,0982,6202,5182,6221,281
Depreciation of assets20,71417,88923,34819,34511,820
Appropriation to reserves. &c.14,00038,00060,00075,000*
Other expenses1,301567......
    Total expenditure95,772123,236162,598194,63266,549
    Excess of income over expenditure2,3572,3933,9372,503*

The Broadcasting Board was abolished as from 1st July, 1936, and the following table shows the expenditure of the National Broadcasting Service for the nine months ended 31st March, 1937, and for the years ended 31st March, 1938, and 1939:—

 Nine Months ended 31st March, 1937.Twelve Months ended 31st March, 1938.Twelve Months ended 31st March, 1939.
 £££
Programmes56,029109,526122,427
Maintenance of plant15,78534,45838,307
General administrative and running   
expenses17,42728,54929,965
Subsidies to private “B” stations1,9221,334541
Depreciation of assets14,94534,76646,585
Other expenses6413,8025,869
Total expenditure£106,749£212,435£243,694

Income during the nine months ended 31st March, 1937, amounted to £201,268, the excess of income over expenditure being £94,519. Income during the years ended 31st March, 1938, and 1939, amounted to £311,817 and £359,599, and the excess of income over expenditure to £99,382 and £115,905 respectively.

COMMERCIAL BROADCASTING.

The Broadcasting Act, 1936, authorizes the Minister of Broadcasting to establish and operate commercial broadcasting-stations from which advertising matter may be broadcast. For every locality that is served by a commercial station the Minister is required to provide an alternative service from at least one non-commercial station. Advertising over the air is forbidden except from the commercial stations authorized under the Act.

The Broadcasting Amendment Act, 1937, made legislative provision for the establishment of a National Commercial Broadcasting Service and provided for the appointment of a Controller, who, under the direction of the Minister, is in charge of the Commercial Service.

Following the coming into operation of the Broadcasting Act, 1936, the State purchased Station 1ZB, Auckland, which had previously operated as a “B” station, and commenced the broadcasting of programmes which included advertising-matter. A chain of commercial stations has since been opened at Wellington (2ZB), Christchurch (3ZB), Dunedin (4ZB), and Palmerston North (2ZA). During the year 1938-39 a novel broadcasting-station was designed and built by the Service in co-operation with the Railways Department. This complete broadcasting-station, known as the 5ZB mobile station, is built into a railway unit, and is designed for the purpose of obtaining additional technical and programme data for the main provincial centres of the North Island. The stations in the four main centres operate for eighteen hours daily, while Station 2ZA, Palmerston North, operates for four hours each evening. All stations are on the air for seven days a week, and maintain full programmes on days on which advertising is not accepted (Sundays, Christmas Day, Good Friday, and Anzac Day).

Particulars of aerial energy, frequency, and wave-length of each commercial station are as follows:—

Station.Aerial Energy.Frequency.Wave-length.
 Kilowatts.Kilocycles.Metres.
1ZB11,070280.4
2ZB11,130265.5
3ZB11,430209.7
4ZB11,280234.4
2ZA  ¼1,400214.3
5ZB (mobile)  ¼1,360220.6

During the year 1938-39 a total of 31,100 hours of entertainment was broadcast, as compared with 18,456 hours during the year 1937-38.

Advertising constitutes the only source of revenue of the Commercial Broadcasting Service, no portion of the radio-receiving license fees being allocated to this Service. For the year 1938-39 income totalled £161,179 and expenditure £150,581, leaving a surplus of income over expenditure of £10,598. During the first two years of operation 1936-37 (part only), and 1937-38 preliminary organization (including staff appointments and training in advanced of the opening of stations) lead to a disproportion between expenditure and income resulting in a loss for the two years of £11,954.

At the 31st March, 1939, the total staff of all branches of the Service totalled 265 officers, practically all of whom have been trained in commercial broadcasting work since joining the Service.

The programmes of the commercial stations contain a high percentage of entertainment, as compared with commercial announcements or direct advertising. An analysis of the heaviest advertising month for the year 1937-38 (March) discloses that 93.46 per cent. of the total broadcasting-time of the four main stations operating at that time was devoted to entertainment, the remaining 6.54 per cent. of the time being occupied with commercial announcements. To a large extent feature programmes are selected by advertisers, who are constantly seeking for novelty and variety in entertainment to produce better sales results. It is estimated that during 1938-39 New Zealand advertisers spent over £40,000 in feature programmes from the studios of England, Australia, the United States, and New Zealand. A further £16,200 was spent by the Service in the provision of programmes, including £5,549 paid in fees to artists.

An endeavour is made to provide entertainment and information for all classes of listeners, and relays of important events or from places of interest are prominent in the programmes. Many overseas celebrities and artists who visit the Dominion are introduced to listeners through the medium of the microphone, and broadcasts covering a wide variety of topical subjects, prominent among which are sporting and theatrical events, are made. Special sessions are broadcast for hospital patients, Boy Scouts, returned soldiers, motorists, children, housewives, and many other sections of the community.

One of the most important phases of the activities of the Service has been the assistance given to various organizations concerned with community service and welfare. A comprehensive service has been rendered to the community in these sessions, announcements and programmes including broadcasts in connection with sickness and accident, blood-transfusion services, safety-first propaganda, and direct assistance in the raising of funds for ambulance services and public welfare societies generally. Radios have been installed in hospitals throughout the Dominion, trips and outings have been organized for orphans, and over £6,000 raised to assist various charitable and welfare organizations. Free time on the air is also made available to organizations rendering national and community service.

Another policy feature has been the employment of Maori announcers and the development of Maori sessions not alone as entertainment, but with the object of contributing something of real and permanent value to the Maori race and to the nation. Much research has been undertaken in this connection, with the result that recordings have been mode of chants and songs which were in danger of becoming lost.

Chapter 45. SECTION XLV.—ELECTRIC POWER.

STATE DEVELOPMENT OF WATER-POWER.

NEW ZEALAND is fortunately well served with a plentiful supply of water-power for the development of hydro-electricity, and since 1900 extensive use has been made of this agency in the generation of electrical energy. Prior to 1900 comparatively little development had taken place, but in 1903 water-power to the extent of 9,911 horse-power was actually available. During the next decade this amount rose to 34,956 horse-power, and by 1923 to 54,244 horse-power. This figure was increased fivefold during the following ten years, the horse-power available at 31st March, 1933, being 328,708. Since then, and up to 31st March, 1939, a further advance of 40 per cent. has been recorded, the total horse-power of hydro-electric generators at the latter date being 460,340.

The Public Works Act vests in the Crown the sole right to use the water-power of the Dominion, subject to any existing rights, and gives the Government the right to develop such power, or to delegate the right to any local authority, or, outside a mining district, to any person or company, subject to certain conditions.

The regulations covering the delegation of this right, which were amended in June, 1934, make it essential for persons desiring to obtain a license to generate power by this means to obtain permission from the Minister of Public Works. The regulations provide for an annual rental to be paid to the Crown by the licensee, such rental to be paid, except in special cases, at the rate of £1 per kVA. of maximum demand per annum, and to be not less than £10. A number of local authorities and private concerns have taken advantage of this provision of the Act.

Persistent demands were made for some years that the Government should itself develop the power resources of the Dominion for the benefit of the people generally, and in 1910 the Aid to Water-power Works Act was passed, and the Lake Coleridge scheme for the supply of electricity to Christchurch City and Canterbury Provincial District was selected for development. Operations were commenced on these works in 1911 and completed in 1915, with a capacity of 5,300 kVA., which was extended to 26,495 kVA. in 1926, and further extended to 40,640 kVA. in 1930. After the successful inauguration of the Lake Coleridge scheme a complete system was drawn up of interconnected power systems in both the North and South Islands.

The following table gives the present and ultimate installed capacity of each Government generating-station, together with the static head.

Name of Station.Present Installed Capacity.Ultimate Installed Capacity.Static Head (feet).
kW.kVA.kW.kVA.

* Additional 20,000 kW. unit now on site and nearing completion.

† Waikaremoana Scheme is being developed in three stages, the respective static heads being: Upper station, 440 ft.; middle (present) station, 675 ft.; lower station, 370 ft.

‡Two additional units, each of 15,000 kW., now on order.

Arapuni103,500118,950146,700167,000175
Horahora10,30012,86010,30012,86027
Mangahao19,20024,00019,20024,000895
Tuai (Waikaremoana)*32,000*40,000132,000151,000675
Arnold River (Kaimata)3,0603,6003,0603,60042
Lake Coleridge34,50040,64034,50040,640486
Waitaki30,00033,33375,00083,33370
Lake Monowai6,0007,0506,0007,050154

In November, 1919, the Waihi Gold-mining Co.'s electric-power plant of 7,860 kVA. at Horahora was acquired by the State. Considerable extension, to 12,860 kVA., was made in 1925. The requirements of the whole of the Auckland District were in time to be supplied from Arapuni and a commencement with this huge development was made in 1925. The first unit of 17,650 kVA. was brought into operation in June, 1929, and the station linked up with Horahora. Two further units were in use by March, 1930, but, unfortunately, in June of that year an earth movement occurred, necessitating the, temporary closing down of the station. Remedial measures to recondition the headworks were undertaken, and the station resumed operation in 1932. The fourth unit (18,000 kVA.) came into commission in the same year. August, 1937, and February, 1938, saw the coming into operation of two more units, each of 24,000 kVA.

A commencement with another major generating-station in the North Island was made at Mangahao in 1922, the full development of 24,000 kVA. being undertaken. This station was completed in 1925.

The next step was the commencement of the first stage (40,000 kVA.) of the development of the Waikaremoana station, and power was turned on to this capacity in November, 1929. At the present time the installation of a further unit of 22,200 kVA. is nearing completion.

These four stations in the North Island—viz., Horahora, Arapuni, Mangahao, and Waikaremoana—have been linked up and are operated as one system.

In the South Island, after the completion of the Lake Coleridge scheme, the Waitaki River was selected as the next source of power, the scheme established there commencing operations at the end of 1934.

In October, 1936, the Government took over the Southland Electric-power Board's system, including its generating-station at Lake Monowai, and in February, 1938, acquired the Grey Electric-power Board's generating plant at Kaimata, on the Arnold River. Transmission-lines to link both these stations with the Lake Coleridge-Waitaki scheme, already interconnected, were put in hand and were completed in 1939—that over Arthur Pass to Kaimata in March, and that to Lake Monowai in May. The Dunedin City Council's hydro-station at Waipori is also connected to the system, enabling power to be supplied to or drawn from this station if required.

The following table for the last five years covers those State systems in actual operation in each year:—

1934-35.1935-36.1936-37.1937-38.1938-39.
* Amount very email (see units); precise data lacking.
 £££££
Capital outlay13,027,33713,240,36015,661,23016,399,11217,255,484
Total revenue940,8641,040,6491,217,5291,468,6991,697,117
Power purchased*306....46,235
Working and management expenses151,518197,968225,305300,235350,540
Interest511,834585,268629,799589,645602,244
Sinking fund....10,169164,553626,042
Depreciation229,07297,341329,204173,61596,912
Total costs930,111918,7251,194,4771,279,9681,722,864
 Number.Number.Number.Number.Number.
Units generated729,266,587792,864,909946,928,8511,070,666,4751,239,363,184
Units purchased62,712236,134....22,186,837
Totals729,329,299793,101,043946,928,8511,070,666,4751,261,550,021
Units sold656,465,321713,371,996856,018,126947,612,9001,117,652,748

ELECTRIC-POWER BOARDS.

The policy of the Government generally is to supply power in bulk, leaving the reticulation and retail supply in the hands of the local authorities. Formerly the only local authorities available were the cities, boroughs, counties, and town districts, but with the extension of electric supply into the country areas a wider organization became necessary, and this was first provided under the Electric-power Boards Act of 1918. This Act provided for several local districts to combine for the purpose of electric-power distribution, and to set up a special Electric-power Board to carry out the work, with rating-powers over the district concerned. The legislation was consolidated and amended in the Electric-power Boards Act, 1925, amendments to which were enacted in 1927 and 1928. An Act of 1930 established an Association of Electric-power Boards and municipal electric-lighting authorities.

So far only one of the four main cities—viz., Auckland—has been included in the reticulation area of a power district, but of the secondary centres the City of Wanganui, and the boroughs of Gisborne, Napier, Hastings, Masterton, Lower Hutt, Petone, Blenheim, Greymouth, and Oamaru are included.

Thirty-one Boards—viz., North Auckland, Waitemata, Auckland, Franklin, Cambridge, Central Waikato, Te Awamutu, tomo, Thames Valley, Bay of Plenty, Poverty Bay, Wairoa, Hawke's Bay, Central Hawke's Bay, Dannevirke, South Taranaki, Opunake, Wanganui-Rangitikei, Manawatu-Oroua, Horowhenua, Tararua, Wairarapa, Hutt Valley, Grey, North Canterbury, Malvern, Banks Peninsula, Springs-Ellesmere, Ashburton, South Canterbury, and Waitaki—have carried out fairly complete reticulation of their areas, and are distributing power taken in bulk from the Government generating-stations. Of the aforementioned Boards, six (South Taranaki, Opunake, Wairarapa, Banks Peninsula, South Canterbury, and Waitaki) have hydro-stations, which generate small quantities of power. Seven Boards—viz., Wairere, Taranaki, Marlborough, Waimea, Golden Bay, Teviot and Otago Central—have local water-power stations in operation. The Southland station now operates under Government control (since 13th October, 1936). The Westland Board has delegated its license to a private company for a term of years. The Tauranga and Otago Boards have arranged to purchase power in bulk from other authorities. The Bay of Islands Electric-power Board, although engaged in reticulation of its area, was not actually distributing power during the year, while the other three—viz., Lake Wakatipu, Buller, and Reefton—were not actively functioning during 1938-39.

The following is a summary of actively functioning Electric-power Boards:—

Year ended 31st March,Capital Outlay as at End of Year.Revenue.Expenditure.
Sale of Electricity (Gross).Sale of Material (Profit).Totals.*Capital Charges.Power.Totals.*
* Includes other items.
 £££££££
193012,920,1502,030,23912,1502,092,169859,262786,1471,887,500
193113,637,1772,157,22810,9762,223,879905,479667,5272,044,457
193213,847,7602,129,1924,5552,203,485944,868908,1162,076,822
193314,026,3202,120,6975,2092,248,6631,095,826896,3282,199,841
193414,226,2592,098,0884,5622,154,188981,196884,4602,066,683
193514,657,5142,198,4935,7232,252,187937,814937,0932,122,139
193614,319,4202,281,4877,8342,338,2211,003,6601,018,2722,275,941
193713,097,7272,361,67813,0812,411,878966,2551,098,4702,348,274
193813,722,2362,531,49618,5352,580,724904,7821,260,9592,490,311
193914,380,0812,759,26822,5442,846,052915,4141,469,5022,708,997

Revenue in the foregoing table is exclusive of moneys derived from rates. Rates, inclusive of arrears, brought in £4,417 in 1938-39. Capital charges are inclusive of interest, sinking-fund, and depreciation payments, while power charges include wages, stores, fuel, distribution, and street-lighting expenses.

ALL STATIONS.

In addition to the Government undertakings controlled by the Public Works Department, the Tourist Department's undertaking at Rotorua, the Health Department's plant at Hanmer Springs, and those undertakings operated by Electric-power Boards, there are forty-nine establishments which are operated by other organizations, seven of which represent private enterprise, the rest being local authorities of various classes. A general summary covering all stations in operation for the last three years is given hereunder:—

Year ended 31st March,
1937.1938.1939.
Stations No.989899
Persons engaged (both sexes No.3,2523,4273,739
Salaries and wages £826,598929,6861,032,043
Consumers No.371,096388,719407,463
Number of—   
  Ranges53,40263,93078,702
  Milking-machines20,45122,58724,850
  Water-heaters67,04977,01991,711
Generators (capacity)—   
  Main kVA.288,669337,573338,845
  Standby kVA.94,536118,508119,370
Route-miles of lines Miles23,32224,40725,982
Revenue—   
  Current—   
  Retail £3,825,6814,186,4954,537,094
  Bulk £1,197,2221,382,8081,650,267
  Other (including rates) £115,533122,638124,871
      Total revenue £5,138,4365,691,9416,312,232
Expenditure—   
  Working expenses £2,380,0972,799,9663,242,419
  Capital charges £2,287,1922,137,9232,550,605
      Total expenditure £4,667,2894,937,8895,793,024
Appropriations £316,479422,328373,811
Capital outlay—   
  Total expenditure £35,347,41736,985,70238,672,797
  Depreciation £4,996,4095,474,7545,599,477
  Net value at 31st March £30,351,00831,510,94833,073,320
Units—   
  Generated (000)1,141,9581,252,5621,413,518
  Per head of mean population Units723786877
  Sold (retail) (000)856,396975,5041,108,857
  Bulk sales (000)871,033957,5511,152,961

The figures given in respect of employees refer only to those whose salaries and wages are met out of revenue from the sale of energy.

CLASSIFICATION OF STATIONS.

Prior to the 1935 issue of the Year-Book electric-supply stations were classified in two groups, one being termed generating stations and the other distributing stations. Stations which were solely engaged in generating or which generated more units than they purchased were classified as generating, while those which purchased all their energy or purchased more than they generated were classed as distributing stations.

The classification now adopted is as follows:—

  1. Generating stations:—

    1. Generating solely.

    2. Generating and purchasing, but generating bulk of supplies of power.

  2. Distributing stations:—

    • Generating and purchasing, but purchasing bulk of supplies of power.

    • Purchasing solely.

The following table sets out the main particulars of all stations classified in this manner for the year ended 31st March, 1939:—

Generating only.Both Generating and Purchasing.Purchasing only.Totals.
Mainly Generating.Mainly Purchasing.
Stations No.2512194399
Capital outlay to date £12,037,2809,211,7515,933,91111,489,85538,672,797
Present net value £10,438,2277,898,3925,334,2889,402,41333,073,320
Revenue £1,146,3381,170,6431,401,8812,593,3706,312,232
Working-expenses £267,677390,148894,1481,690,4463,242,419
Capital charges and appropriations £876,759799,533471,778776,3462,924,416
Units generated (000)836,100542,80234,616..1,413,518
Units purchased (000)..61,514345,086748,8521,155,452
Units sold—     
  Bulk sales (000)665,449404,70645,16937,6371,152,961
  Retail sales (000)76,539119,042289,292623,9841,108,857

EMPLOYEES AND WAGES.

The following summary, covering all stations, shows for the year ended 31st March, 1939, the principal details for employees and for salaries and wages paid:—

Class of Employment.Persons engaged.Salaries and Wages paid.
Males.Females.Totals.To Males.To Females.Totals.
(a) Salaries or Wage paid out of Revenue from Sale of Energy.
    £££
Secretaries, managers, engineers2941295138,025104138,129
Clerical staff545335880136,19845,470181,668
Wage-earning employees2,548162,564711,0101,236712,246
Totals3,3873523,739985,23346,8101,032,043
(b) Salaries or Wages not paid directly out of Revenue from Sale of Energy.
    £££
House-wiring16616636,836..36,836 
Trading departments7011..18,9911,95620,947
New construction-works1,0401,610,405..280,405 
Totals1,276111,287336,2321,956338,188
Grand totals4,6833635,0261,321,46548,7661,370,231

CAPITAL OUTLAY.

Of the substantial expenditure on capital account of £1,825,000 during 1938-39, over £1,250,000 was accounted for by extensions to transmission and distribution lines, substations, &c. What the major part of this represented additions and extensions to the reticulation systems of distributing authorities, the expenditure by the Government of £408,000 under the heading of “Main transmission lines and substations” was important. In the North Island some £186,000 was spent on extension of supply to new areas and duplication of existing lines, and in the South Island the construction of the lines to link the West Coast and Southland areas with the Lake Coleridge-Waitaki system accounted for the major part of £222,000. An expenditure of £96,000 on power-house buildings on the Mangahao-Waikaremoana section of the Government North Island system was largely accounted for by work in connection with the installation of the new unit at Waikaremoana. An extensive staff-accommodation programme and surveys in connection with proposed new stations and lines in the North Island system accounted for a Government expenditure of £122,000 under the heading of “Miscellaneous.”

It should be noted that the capital-outlay figures no longer include the outlay in stocks of materials and capital invested in trading departments.

Details of capital expenditure during 1938-39 and of the aggregate capital expenditure to 31st March, 1939, are as follows:—

Class of Expenditure.Expenditure during Year ended 31st March, 1939.Total Expenditure to 31st March, 1939.
 ££
Land in connection with power-house, headworks, cottages, &c.4,271355,601
Power-house buildings, cottages, &c.127,5362,151,950
Generating plant, headworks, &c.59,8858,316,301
Special standby plant26,3571,639,688
Main transmission-line and main substations667,1286,487,349
Distribution system, substations, land, cottages, &c.698,51312,584,832
Public (street) lighting14,476466,024
Office and store buildings, workshops, garages, houses and service buildings,30,362848,574
Loose tools, meters, instruments, furniture, trucks, motor-cars, and equipment143,9721,365,318
Interest during construction23,3101,956,926
Loan conversion premiumsCr. 9,180118,059
Miscellaneous (cost of raising loans, law-costs, &c., and other capital expenditure)138,3742,382,175
      Totals1,825,00438,672,797

ASSETS AND LIABILITIES.

The following statement of assets and liabilities summarizes the financial position of the industry as at 31st March, 1939, in addition to setting out the state of reserves and invested funds:—

Assets.Liabilities
££££
Capital expenditure38,672,797Capital raised31,614,802
Less amounts written off, &c.1,234,284Less repaid1,509,042
 37,438,513Balance owing30,105,760
Stocks and trading department capital Reserve funds accrued (invested out-side the undertakings)—1,102,488Other liabilities (including sundry creditors)1,131,154
  Reserves— 
Sinking funds2,280,586Sinking fund reserve3,325,717
Depreciation funds805,105Depreciation reserve4,365,193
Renewal and other funds532,818Renewal fund reserve467,905
Cash in hand and bank, sundry debtors, &c.2,821,874Accident fund reserve62,334
  Other special reserves2,782,835
  General reserve814,392
  Credit balance, Revenue Account1,426,094
 £44,481,384 £44,481,384

POWER PLANT.

Particulars relating to the power plant in use during the year ended 31st March, 1939, are set out hereunder:—

Source of Power.Main Plant.Standby Plant.Totals.
 No.B.H.P.No.B.H.P.No.B.H.P.
Steam-engines11,25030102,00231103,252
Water-turbines103446,812174,084120450,896
Gas-engines....61,81961,819
Oil-engines95314627,9125528,443

UNITS.

The following table sets out the number of units generated and their disposal. It should be noted that the figures are inclusive of bulk sales.

Year ended 31st March,Units (000 omitted).
Generated.Purchased.Totals.Sold.Lost in Transmission, &c.
1,935916,302672,9401,589,2421,390,977198,265
1,9361,031,699731,6021,763,3011,548,956214,345
1,9371,141,958815,7051,957,6631,727,429230,234
1,9381,252,562954,2852,206,8471,933,055273,792
1,9391,413,5181,155,4522,568,9702,261,818307,152

REVENUE.

Revenue is derived chiefly from the sale of energy, and in 1938-39 this source was responsible for 98 per cent. of the total. The amount of revenue derived from rates has shown a steady decrease, and during 1938-39 represented only 0.1 per cent. of the total. The following table sets out the revenue of all stations:—

Year ended 31st March,Sale of Energy.Profits, Sale of Apparatus.Miscellaneous.Interest.Rates.Totals.
 ££££££
1,9354,490,2239,67363,16120,61856,7874,640,462
1,9364,726,97012,53666,30017,72144,6334,868,160
1,9375,022,90819,75062,80716,84216,1345,138,436
1,9385,569,30334,97760,63517,1489,8785,691,941
1,9396,187,36147,28660,38010,1387,0676,312,232

EXPENDITURE.

A study of the expenditure figures reveals that overhead costs, comprising management expenses and capital charges, are slightly greater than prime costs, which may be taken as the operating-expenses. During the year ended 31st March, 1939, of the total expenditure recorded (£5,793,024), 53 per cent. represented overhead expenses, while operating-expenses or prime costs stood at 47 per cent.

The table following gives an analysis of expenditure:—

EXPENDITURE.

Item.Year ended 31st March,
1935.1936.1937.1938.1939.
Operating Expenditure.
 £££££
Cost of power985,6961,056,9061,155,6181,382,0141,657,827
Cost of generation90,32580,94985,66490,52292,390
Fuel10,42311,54010,34612,6349,397
Stores3,6134,4002,8835,3613,863
Repairs32,54443,98334,59944,00844,683
Standby plant19,35437,93350,32074,011100,555
Cost of transmission74,62681,61872,92472,404101,327
Cost of distribution402,047463,316521,787600,469685,879
Public (street) lighting30,54724,72625,43429,81129,009
    Totals1,649,1751,805,3711,959,5752,311,2342,724,930
Item.Year ended 31st March,
1935.1936.1937.1938.1939.
Miscellaneous Expenditure.
 £££££
Cost of management271,124308,640331,276403,195442,127
Insurance19,33718,89721,46822,99327,026
Losses from trading1,5685,2902,8504,3985,387
Other expenditure110,52161,61664,92858,14642,949
    Totals402,550394,443420,522488,732517,489
Capital Charges.
Interest1,325,2231,372,1151,357,0951,263,5971,276,243
Sinking fund284,711235,071227,912391,450876,029
Depreciation reserve401,359411,413521,900322,818254,716
Loan repayment47,85873,01393,51998,323106,757
Exchange16,46662,01986,76661,73536,860
    Totals2,075,6172,153,6312,287,1922,137,9232,550,605
Grand totals4,127,3424,353,4454,667,2894,937,8895,793,024

The distribution of the expenditure per unit sold is given hereunder:—

Year ended 31st March,
1935.1936.1937.1938.1939.
 d.d.d.d.d.
Operating-expenses0.280.280.270.290.29
Capital charges and miscellaneous expenses0.430.390.380.320.33
    Totals0.710.670.650.610.62

APPROPRIATION OF SURPLUS .

The following table shows the appropriations of net surplus for years ended 31st March:—

1935.1936.1937.1938.1939.
 £££££
Renewal Fund48,19518,78244,25433,500100,007
Reserve Fund90,05915,09912,90215,96723,155
Other203,396225,624259,323372,861250,649
    Totals341,650259,505316,479422,328373,811

HYDRO-ELECTRIC POWER IN USE.

The following table shows the hydro-electric horse-power actually in use in the various districts at the 31st March in each of the last five years. The figures cover all hydro-plants exceeding one horse-power, whether main or standby, with the exception of plants not exceeding six horse-power used exclusively for farming purposes:—

District.1935.1936.1937.1938.1939.
 H.P.H.P.H.P.H.P.H.P.
Auckland North3,1883,1263,1263,1463,097
Auckland
Auckland South118,445118,445118,445182,877183,831
Gisborne46,27956,27956,27956,27956,039
Hawke's Bay
Taranaki North10,43912,79612,87912,87915,057
Taranaki1,4951,4951,4951,4951,495
Wellington North43,07133,070½33,037½33,037½33,037½
Wellington1,5401,5304,5634,6044,559
Nelson and Marlborough2,8272,777
Westland8,9979,3969,3559,2109,400
Canterbury49,33859,80359,83359,81859,818
Canterbury South
Otago88,166½81,766½81,407½79,60480,782½
Southland12,493½13,401½13,821½13,223½13,223½
Totals386,279393,885½394,241½456,173460,339½

The following table gives an analysis of the purposes for which plants were generating power as at the 31st March, 1939:—

District.Mining.Electric Supply.Flax-mills.Sawmills.Flour-mills.Dairying.Construction Works.Freezing-works.Paper-mills.Miscellaneous.Totals.
 H.P.H.P.H.P.H.P.H.P.H.P.H.P.H.P.H.P.H.P.H.P.
Auckland N.1372,920..........4..363,097
Auckland           
Auckland South876182,943..............12183,831
Gisborne           
Hawke's Bay..56,027..............1256,039
Taranaki North..14,600......417..20..2015,057
Taranaki..1,415..............801,495
Wellington N...33,020......8......33,037½
Wellington           
Nelson..4,434..36..30......594,559
Marlborough           
Westland..5008,500..400..........9,400
Canterbury           
Canterbury S...59,62426..119........4959,818
Otago66578,635..761........1,414½80,782½
Southland60010,015½8........1,2001,400..13,223½
  Totals2,778452,133½34443180455..1,2241,4001,692460,339½

The figures shown in the above table do not, of course, indicate the purposes for which hydro-electric power was used, since by far the greatest proportion of the total horse-power used in industry would be drawn from the electric-supply stations and not generated in separate plants.

Chapter 46. SECTION XLVI.—MISCELLANEOUS.

PUBLIC TRUST OFFICE.

THE Public Trust Office is designed mainly to afford, at low rates of commission,. a secure and convenient recourse in any case where a person residing either in New Zealand or abroad desires to draw a will, form a trust, or appoint an executor, trustee, agent, or attorney in the Dominion. The Office aims also to relieve those who for various reasons may be unable or unwilling to commence or continue the administration of trust property to which they may have been appointed. Statutory provisions also allow the Public Trust Office to apply to the Supreme Court for the administration of intestate estates, and unless a better claim to administration is made by a suitable person such application will be granted. The Office can also “elect to administer,” in lieu of taking out letters of administration, estates of less value than £400, whether testate or intestate.

The Public Trust Office commenced operations in 1873, at the end of which year 257 estates, of a total value of £17,500, were being administered by the Office. Since then there has been a practically continuous increase in both the number and the value of estates administered, the records at 31st March, 1939, showing 19,244 estates of a value of £61,715,713.

At 31st March,Total Value of Estates in Office, including Unrealized Assets.Funds at Credit of Estates and Accounts.
 ££
193053,049,43734,049,290
193157,527,26336,488,434
193259,132,51236,859,518
193359,757,44936,815,941
193460,760,49337,155,883
193560,706,01636,666,196
193660,660,31036,500,511
193760,770,81436,553,648
193860,815,30636,890,407
193961,715,71337,631,649

New estates which came into the Office during the year ended 31st March, 1939, numbered 3,089, and represented a value of £6,314,532. The classification of these and of the estates under administration at 31st March, 1939, is as follows:—

New Estates during 1938-39.Estates under Administration at 31st March, 1939.
Number.Value.Number.Value.
  £ £
Wills estates1,5063,536,2407,40320,066,164
Trust estates293696,2512,5947,889,769
Intestate estates563344,5972,5041,599,175
Mental patients' estates480462,4932,4042,747,250
Miscellaneous estates2471,274,9514,31929,413,355
    Totals3,0896,314,53219,22461,715,713

Testators and other clients appointing the Public Trustee their executor or trustee may direct investment of their funds either in the Common Fund of the Office or outside the Common Fund. In the former case the investments are not ear-marked to the estate, but are guaranteed by the State. Interest, which is at such rate as is fixed from time to time by the Governor-General in Council, accrues from the date the moneys reach the Office, and is free of all commission and other charges.

In the case of special investment outside the Common Fund, the investments belong to the estate, but there is no State guarantee, and (subject to the Public Trustee's ordinary liability as a trustee) any loss falls on the estate. Commission is charged on the interest collected.

In general, investment in the Common Fund is preferred by clients, the safety of such investment being an important consideration. The Common Fund at 31st March, 1939, held moneys to the total of £23,984,572. The total amount invested by the Public Trust Office as at 31st March, 1939, on behalf of the estates and funds under administration was £37,654,613.

During the year ended 31st March, 1939, 4,919 wills were deposited with the Public Trustee, and 2,241 were withdrawn on account of the death of the testator or for other reasons, the net increase for the year being 2,678. The number of wills on deposit at the 31st March, 1919, was 24,237; by 1929 it had increased to 62,841; while at 31st March, 1939, it had risen to 93,152.

In addition to preparing wills in the first instance, the Office affords its clients special facilities for the revision of existing wills to provide for changes desired by them. During 1938-39 wills to the number of 3,991 held on behalf of testators were so revised.

JOINT-STOCK COMPANIES.

For thirty years following the enactment of the Companies Act of 1903, no comprehensive revision of statute law relating to companies was made in New Zealand, and the essential provisions of company law remained substantially unaltered. In 1930 the Attorney-General appointed an advisory committee, including representatives of the business community, and of the professions of law and accountancy, to act with the Law Draftsman in framing a new measure, which, in the form of the Companies Act, 1933, came into force on 1st April, 1934. In great part the measure is an adaptation of the Imperial Act of 1929 to suit the special conditions of New Zealand.

A noteworthy step in the history of company legislation was taken by the Companies (Bondholders Incorporation) Act, 1934-35, which provided machinery for the incorporation of the holders of bonds issued by certain afforestation and other companies.

The position of certain investment companies in 1934 led to the appointment of a Commission of Inquiry and the passing of a novel series of legislative enactments designed to investigate their affairs and to protect the investors. The Acts passed comprised the Companies (Special Investigations) Act, 1934; the Companies (Special Liquidations) Act, 1934-35; and the Companies (Temporary Receivership) Act, 1935.

A company, to acquire legal entity, must be incorporated, and under the Companies Act, 1933, incorporation is granted after the registration of the memorandum of association with the Registrar of Companies. A company incorporated overseas is not required to re-register in New Zealand, but must deliver to the Registrar of Companies for registration a certified copy of its instrument of constitution, as well as a list of its directors and the name of its authorized representative in New Zealand.

During the year ended 31st December, 1938, 749 private and 64 public companies were registered, and 11 overseas companies filed documents. In the following table these companies are classified according to the amount of their nominal capital.

Amount.Private Companies.Public Companies.Overseas Companies.
Number.Aggregate Nominal Capital.Number.Aggregate Nominal Capital.Number.Aggregate Nominal Capital.
  £ £ £
Under £1,000250107,92541,760....
£1,000 and under £2,000204242,41611,000....
£2,000 £3,00087186,41036,600....
£3,000 £4,00058183,21526,000....
£4,000 £5,00035146,55014,000....
£5,000 £6,00032161,600525,000....
£6,000 £7,0001060,28516,000....
£7,000 £8,0001072,725322,500....
£8,000 £9,0001081,000216,307....
£9,000 £10,000545,200........
£10,000 £15,00027289,70015158,000222,000
£15,000 £20,000582,000575,000....
£20,000 £50,00011271,60016470,000490,000
£50,000 and over5495,82661,380,00051,865,000
    Totals7492,426,452642,172,167111,977,000

In comparing one year with another, as in the following table, it should not be overlooked that re-registrations on account of reconstruction of companies or for other reasons are included. Such re-registrations may have a considerable effect on the year's total, where large companies are concerned.

Year.Number.Aggregate Nominal Capital.Year.Number.Aggregate Nominal Capital.
* See letterpress.
  £  £
19193285,942,6051,92990312,472,057
19205019,563,9331,9308936,702,675
19213373,498,2081,9317958,283,581
192241713,125,4941,9328126,865,769
192350213,006,0851,9338307,300,999
192456521,367,3101,934933200,739,139*
192562114,760,3981,93581024,238,018
192665510,748,2311,9369429,934,903
19276988,701,8081,9378886,113,476
192873610,984,9071,9388246,575,619

Overseas companies which filed documents, as required by Part XII of the Companies Act, 1933, are included in the above table. The extraordinarily high figure for 1934 is due to the inclusion of overseas companies (numbering 187 and with an aggregate nominal capital of £193,023,363) which previous to 1934 had established places of business in New Zealand and which were required to deliver documents to the Registrar of Companies before 1st October, 1934.

TOTAL COMPANIES CARRYING ON BUSINESS.

Statistics of companies carrying on business in New Zealand were first compiled for the year 1926, and a further tabulation on the same basis—i.e., classification according to the size of the capital—was made for 1932. For the third compilation, covering all companies functioning at the 31st December, 1938, an additional classification has been made according to the type of business. A strictly accurate classification under this heading has not been possible, as a company is frequently empowered by its memorandum of association to carry out a great diversity of objects. In such circumstances a company has been classified according to what has been thought to be its principal activity. To determine this, considerable use has been made of the local knowledge of the district officers of the Registrar of Companies, who supplied all material for the statistics.

As illustrative of the difficulties militating against a precise classification, it might be mentioned that quite a number of companies are described as “wholesalers and retailers,” but as in all probability the majority of these are mainly engaged in the wholesale trade, they have been placed within that group. Again, a number of manufacturers specify themselves, in addition to manufacturers, as wholesalers or retailers, or as wholesalers and retailers; these have been treated as manufacturers. Stock and station agents sometimes give farming as one of their objects, but as this is merely one of their incidental activities it has been disregarded in the classification. In these and similar cases it has not been practicable to apportion, even approximately, a company's capital among its various activities, and the main object only has been considered in determining the classification.

In the following tables public companies and private companies functioning at 31st December, 1938, are classified separately according to the size of the nominal capital. For purposes of comparison, totals for 1926 and 1932 are also given.

PUBLIC COMPANIES.

Amount of Nominal Capital.Number.Nominal Capital.Subscribed Capital.Paid-up Capital.Amount owing under Charges.
  ££££
Under £1,0007429,95623,03421,05149,510
£1,000 and under £2,0007389,42866,58456,68838,725
£2,000 £3,000109232,902169,509141,36391,020
£3,000 and under £4,00064199,261142,232123,83079,930
£4,000 and under £5,00045184,951137,730120,98590,229
£5,000 and under £6,000106532,000335,832291,254188,006
£6,000 and under £7,00041252,342200,871171,191176,894
£7,000 and under £8,00038274,660202,890173,30042,325
£8,000 and under £9,00041331,882267,883252,331143,393
£9,000 and under £10,0001199,50082,55371,64379,458
£10,000 and under £15,0002172,363,3741,670,9791,441,958656,850
£15,000 and under £20,000941,463,4831,137,157992,958431,819
£20,000 and under £50,0003289,111,9706,910,1976,132,5122,461,733
£50,000 and under £100,00017410,556,8828,020,4837,217,8243,422,090
£100,000 and over21174,450,38753,802,47747,723,5589,526,957
Totals, 31st December, 19381,626100,172,97873,170,41164,932,44617,477,939
Totals, 31st December, 19321,73297,553,57871,021,73659,106,90215,453,164
Totals, 31st December, 19261,63089,544,85858,807,51949,982,59316,181,126

The apparent decrease in the number of companies between 1932 and 1938 is probably due to the fact that the figure for the earlier year includes a number of companies in liquidation or otherwise in a more or less moribund state, while the number for 1938 refers only to companies actively functioning. Nevertheless, the effective capital employed (paid-up capital plus charges owing) shows an increase in 1938 of £7,850,000 over the 1932 amount and of £16,250,000 over the 1926 figure. These increases do not necessarily represent new money invested in industry or other activities, as increases due to the conversion of previously existing organizations into companies are also included.

PRIVATE COMPANIES.

Amount of Nominal Capital.Number.Nominal Capital.Paid-up Capital.Amount owing under Charges.
* Not available.
  £££
Under £1,0001,720736,786622,9881,071,138
£1,000 and under £2,0001,4431,744,9551,478,2981,065,834
£2,000 and under £3,0009262,017,8791,715,319924,565
£3,000 and under £4,0005691,792,7231,508,369809,098
£4,000 and under £5,0003531,470,8931,222,770605,098
£5,000 and under £6,0004692,369,5691,984,1551,127,977
£6,000 and under £7,0002361,449,5241,255,555598,812
£7,000 and under £8,0001581,142,2351,008,062419,899
£8,000 and under £9,0001401,136,5631,029,622443,948
£9,000 and under £10,00073663,388595,671376,880
£10,000 and under £15,0005405,868,7144,989,2592,955,645
£15,000 and under £20,0001983,157,6352,828,4111,309,488
£20,000 and under £50,00041711,256,52110,060,3604,385,950
£50,000 and under £100,000905,437,8314,949,2501,714,912
£100,000 and over6715,548,40514,022,4552,650,822
  Totals, 31st December, 19387,39955,793,62149,270,54420,460,066
  Totals, 31st December, 19326,08348,363,106**
  Totals, 31st December, 19263,43936,060,343**

The number of private companies has more than doubled during the twelve years 1926 to 1938, while the nominal capital has increased by just under £20,000,000. The effective capital employed at the end of 1938 was approximately £69,750,000, which, added to that of public companies, gives a total of £152,000,000. This amount, of course, is exclusive of company reserves employed in business.

As stated earlier, a classification according to the type of business was made for the first time in 1938. The statistics in the following tables should be interpreted with a regard to the limitations already mentioned. The classification has been made only for companies having a nominal capital of £5,000 or more.

PUBLIC COMPANIES.

Type of Business.Number.Nominal Capital.Subscribed Capital.Paid-up Capital.Amount owing under Charges.
  ££££
Farming5137,11475,56470,43520,990
Dairy factories1944,896,1043,760,8383,178,5871,224,549
Freezing-works174,340,8853,898,8423,667,6421,003,277
Stock and station agents255,784,3144,768,1703,752,0633,149,015
Miscellaneous primary or allied industries1728,856,7786,632,8585,751,389680,762
Timber291,776,1691,552,6171,374,174270,072
Afforestation1612,540,0705,220,5695,108,919294,300
Woollen-mills81,395,0001,225,382778,555287,131
Miscellaneous manufacturing industries32423,554,99618,737,30117,814,1803,927,873
Wholesale merchants685,373,3654,478,9244,275,4211,020,441
Retailers525,887,1734,780,5424,563,3751,149,548
Shipping96,012,5004,927,4074,720,46412,237
Other transport21768,969631,557608,543295,168
Finance1099,456,6635,639,5952,913,873700,510
Miscellaneous2128,633,7756,286,7885,876,1583,083,046
Not classified (mainly companies with a nominal capital of less than £5,000)365759,103553,457478,668359,020
    Totals1,626100,172,97873,170,41164,932,44617,477,939

Twenty-six per cent. of the specified effective capital relates to miscellaneous manufacturing industries, distribution (wholesalers and retailers) coming next with 13 per cent. Next follow the miscellaneous group, 11 per cent.; stock and station agents, 8 per cent.; miscellaneous primary industries, 8 per cent.; afforestation, 7 per cent.; and shipping, 6 per cent.

PRIVATE COMPANIES.

Type of Business.Number.Nominal Capital.Paid-up Capital.Amount owing under Charges.
  £££
Farming1191,871,0221,558,1111,301,646
Dairy factories765,00048,89010,161
Freezing-works81,177,0001,098,559417,910
Stock and station agents10859,000836,546185,645
Miscellaneous primary or allied industries701,860,7001,376,764394,020
Timber991,623,1061,539,415471,908
Afforestation681,75042,43227,890
Woollen-mills3212,500162,500218,221
Miscellaneous manufacturing industries64313,830,35512,660,1733,130,890
Wholesale merchants3859,726,5818,879,2322,613,993
Retailers4386,511,2616,102,2082,229,492
Shipping18378,400356,90022,474
Other transport51550,596517,790213,573
Finance1263,376,9232,559,8321,484,989
Miscellaneous3855,737,7634,917,0543,207,038
Not stated (mainly companies with a nominal capital of less than £5,000)5,0317,931,6646,614,1384,530,216
Total7,39955,793,62149,270,54420,460,066

Distribution is the principal field of activity for private companies, the wholesalers and retailers claiming 34 per cent. of the specified effective capital; then follow miscellaneous manufacturing, 27 per cent.; miscellaneous, 14 per cent.; and finance, 7 per cent.

Combining the capitals of public and private companies, the miscellaneous manufacturing industries have 26½ per cent. and distribution 22 per cent. of the total.

In the following tables public and private companies are shown according to the district of registration.

PUBLIC COMPANIES.

District.Number.Nominal Capital.Subscribed Capital.Paid-up Capital.Amount owing under Charges.
  ££££
Auckland43939,250,03526,516,53824,844,2454,503,738
Gisborne151,008,402829,132713,248468,506
Hawke's Bay522,191,4371,767,2121,296,238446,511
Taranaki902,150,9901,840,2161,597,603795,724
Wellington36225,968,95520,161,50918,392,0994,589,822
Marlborough1258,50040,98833,32420,352
Nelson391,090,050807,049677,491245,535
Westland521,322,6871,143,5121,072,467199,399
Canterbury24513,192,1089,853,3818,148,2814,253,183
Otago20912,068,0099,030,6997,131,3401,669,688
Southland1111,871,8051,180,1751,026,110285,481
    Totals1,626100,172,97873,170,41164,932,44617,477,939

PRIVATE COMPANIES.

District.Number.Nominal CapitalPaid-up Capital.Amount owing under Charges
  £££
Auckland2,35914,587,13912,973,9455,375,211
Gisborne124676,177624,509756,124
Hawke's Bay4252,789,8892,613,4351,397,821
Taranaki2361,282,7641,144,024471,036
Wellington2,18319,436,48516,545,4166,884,136
Marlborough35234,015233,65597,177
Nelson102612,964585,885274,821
Westland99539,879502,054151,444
Canterbury8987,355,7126,633,0702,463,653
Otago6696,431,9345,753,4132,008,487
Southland2691,846,6631,661,138580,156
    Totals7,39955,793,62149,270,54420,460,066

In addition to the public and private companies for which statistics have been shown, there were 212 overseas companies operating in New Zealand at the 31st December, 1938. These had a total nominal capital of £195,934,469, but there is no information showing the amount of capital employed in New Zealand, which obviously must be only a very small proportion of the amount shown. Nevertheless, a classification according to the type of business is given as being of possible interest. Particulars of nominal capital only are available.

OVERSEAS COMPANIES.

Type of Business.Number.Nominal Capital.
  £
Farming23,100,000
Freezing-works145,000
Stock and station agents311,000,000
Miscellaneous primary or allied industries193,765,000
Timber2760,000
Afforestation7225,100
Miscellaneous manufacturing industries1524,179,444
Wholesale merchants10258,363,745
Shipping66,611,385
Finance4287,217,514
Miscellaneous13667,281
  Totals, 31st December, 1938212195,934,469
  Totals, 31st December, 1932203143,800,000
  Totals, 31st December, 1926205145,300,000

In addition to the public, private, and overseas companies for which information has been given there were, at the end of 1938, 29 companies limited by guarantee, 14 unlimited companies, 27 rural intermediate credit associations, and 5 companies of a miscellaneous character.

PATENTS, DESIGNS, AND TRADE-MARKS.

There were 1,960 applications for letters patent during 1938, 675 of these being filed with provisional specifications, and 1,285 with complete specifications. Patent fees for the year amounted to £10,771.

The total number of applications received up to the 31st December, 1938, was 81,033, and the patents in force in New Zealand at that date numbered 7,830. The number of patent agents on the register was 16.

In the following table are shown the countries of residence of persons who applied for patents in New Zealand during the last three years. Owing to applications being received from joint applicants resident in different countries, also from applicants giving two addresses, the figures usually total more than the actual number of applications received.

Country.1936.1937.1938.Country.1936.1937.1938.
New Zealand781719688Sweden4610
Great Britain440435533Franco26238
Australia216264278Denmark447
United States158158148Belgium546
Germany143173141Switzerland264
Netherlands2819113Union of South Africa343
Canada13718Italy433

A large number of the applications for patents deal with telephony and telegraphy, the figures for 1938 and 1937 being 578 and 520 respectively. These show a considerable increase on the average yearly number for the quinquennium 1932-36 (327).

The total number of applications during 1938 in respect of trade-marks was 860, and the fees received totalled £3,772. Of the total applications (remarks above regarding joint applicants are applicable here also), 326 were made by residents of New Zealand, 230 came from Great Britain, 114 from Australia, 76 from the United States, 52 from Germany, and 24 from Canada.

The number of applications for registration of designs totalled 160, and the fees received for the year were £140.

The following table shows the number of applications for patents and for the registration of trade-marks and designs in each of the last ten years:—

Year.Patents.Trademarks.Designs.Year.Patents.Trademarks.Designs.
19292,2511,3591251,9341,766915146
19302,1031,2651691,9351,730943185
19312,0659991511,9361,8361,096124
19321,8459251641,9371,832889193
19331,7618141431,9381,960860160

For the year 1938 the total receipts of the Patent Office were £14,754 and the payments £6,790, leaving a surplus of £7,964 as compared with £7,784 in 1937.

INSPECTION OF MACHINERY.

The Inspection of Machinery Act is designed to promote the safety of life and limb in the operation of steam boilers, digesters, other steam-pressure vessels, and air-receivers; hydraulic, electric, and other lifts; all types of power-driven cranes and power-driven machinery on land; and machinery used on vessels afloat that are not self-propelled. Nothing in the Act applies to any machinery driven by manual or animal power, or to any machinery the motive power of which does not exceed one horse-power. Machinery which is used exclusively for farming purposes and does not exceed six horse-power is exempt from annual inspection.

Boilers, pressure-vessels, air-receivers, lifts, and cranes are required to be of approved design and workmanship, and the moving parts of machinery to be adequately guarded.

All boilers and machinery are inspected and certificated once per year and lifts twice per year. It is illegal to work a boiler or other pressure-vessel or any machinery, including cranes or lifts, which do not carry current certificates of inspection issued by the Marino Department.

Inspections of boilers and machinery during the year ended 31st March, 1939, numbered 98,994, made up as follows:—

Boiler inspections—

Stationary, portable, and traction boilers4,855
Steam-pressure vessels3,889
Air-receivers941
Total boilers9,685

Machinery inspections—

Lifts3,318
Cranes460
Hoists1,516
Machines driven by steam power11,391
Machines not driven by steam power72,123
Electric-power supply station units134
Tractors367
    Total machinery89,309
    Grand total98,994

The Act provides that where loss of life or serious bodily injury to any person occurs by reason of the explosion of a boiler or as a result of an accident caused by machinery, the explosion or accident must be reported by the owner, and the cause investigated by an Inspector of Machinery. There were no boiler explosions during the year 1938-39. The number of accidents reported as caused by machinery were: Fatal, 5; non-fatal, 152; total, 157.

In 1938-39 new boilers to the number of 666, representing an aggregate of 2,459 horse-power, were inspected and tested before being used. Of these, 331, of a total horse-power of 1,575, were made in New Zealand.

Revenue and expenditure in connection with inspection of machinery for the last five years have been as follows:—

1934-35.1935-36.1936-37.1937-38.1938-39.
Revenue—£££££
  Inspection fees, &c.19,33219,56620,08220,87221,562
  Examination fees, &c.359423593604618
    Totals19,69119,98920,67521,47622,180
Expenditure17,56518,34920,89222,04521,747

The Act also provides for the issue of certificates to those who pass the prescribed examinations for land engineers and engine-drivers in charge of boilers and machinery, for winding-engine drivers for mining purposes, for drivers employed on locomotives working on railway-lines not under the control of the Government Railways Department, and for the drivers of traction-engines on roads. Certificates are also issued to electric-tram drivers, as provided by the Tramways Amendment Act, 1910. The issue of these certificates is controlled by a Board of Examiners sot up by the Act, the Chairman being the Chief Inspector of Machinery.

The total number of candidates examined during the year was 619. Of this number, 474 were successful and 145 failed in their examinations. Five hundred and forty-four certificates were issued, 474 to successful candidates, the remainder being replacements, &c.

VALUE OF PRODUCTION.

Complete statistics covering all phases of production are not available; and, in compiling the following statistics of value of production, estimates of production have been made in several cases where direct data are not available. Since statistical information as to production in each of the major productive activities is collected by the Census and Statistics Department, the items for which estimates must be made are, with the exception of one group of commodities, relatively unimportant. Although the value of products made in the home—e.g., home-made clothing, jams, kitchen-garden products, &c.—must, in the aggregate, account for a considerable annual value, it is quite impossible to estimate with any reasonable degree of accuracy the value of such production; which is, on this account, omitted from the statistics of the value of production.

The general principle followed in assessing values has been to value products as near as possible to the actual point of production. For example, live-stock is valued at saleyard prices, while values at the factory are used in the case of factory products. In some cases, however, reliable data as to values at or near the point of production cannot be obtained; and in those cases export valuations or wholesale price quotations have been used in assessing values. Although absolute uniformity of treatment in the basis of valuation as between different commodities has not been possible, the method of valuation of each individual item has been the same for each year throughout the period covered. The statistics thus afford a fairly accurate measure of fluctuations in the value of production from year to year, although the absolute figures for any individual year must be regarded as approximate only.

Since the basis of valuation is (as far as possible) at the point of production, transport costs are only partly represented in the values shown, while the accretions to the value of commodities caused by the services of retailers and other distributors of finished products are not included in the statistics.

In classifying the value of production into the principal groups care has been taken to avoid duplication, products of one group which constitute the raw material of another group being excluded from the statistics. For example, the gross value of agricultural products in 1937-38 is estimated at £28.7 million; but, as the major part of this was utilized for the purpose of adding value to live-stock, the net value only (£8.6 million) is classified under the heading “Agricultural”; since live-stock and live-stock products are included in either the “Pastoral” or “Dairying,” &c., group.

Products have been classified into the groups to which they most logically belong from a production point of view; butter and cheese, for example being classified under “Dairying, Poultry, and Bees,” and not as factory products. The figure shown under the heading “Factory Production” is the aggregate value added to materials by the process of manufacture, excluding industries which are already included in other groups (e.g., butter and cheese-making, meat-freezing, fish-curing, and sawmilling). The total output of factory industries is included in cases where the materials are produced in New Zealand and are not already included as production in some other group.

The series of annual estimates of value of production have been revised back to the year 1900-01. It should be understood that all values are in terms of New Zealand currency, which since the latter portion of 1929-30 has been at a discount in terms of sterling.

VALUE OF PRODUCTION.

Year.Agricultural.Pastoral.Dairying, Poultry, and Bees.Mining.Fisheries.Forestry.Factory.Building and Miscellaneous.Totals.
 £m.£m.£m.£m.£m.£m.£m.£m.£m.
1900-014.112.23.72.90.12.05.43.533.9
1905-064.317.35.34.00.12.66.85.245.6
1910-114.020.57.44.00.22.88.15.852.8
1915-167.631.211.53.70.31.99.75.371.2
1916-176.331.412.73.30.22.410.65.272.1
1917-187.332.913.82.80.22.611.55.376.4
1918-198.037.614.83.80.32.612.65.985.6
1919-208.837.218.04.10.43.115.16.493.1
1920-218.830.226.23.00.44.618.67.699.4
1921-229.528.821.83.20.54.517.28.293.7
1922-238.131.425.23.10.44.518.09.7100.4
1923-247.133.224.63.40.54.719.211.4104.1
1924-258.144.126.23.50.54.820.811.9119.9
1925-268.432.925.23.60.64.722.313.1110.8
1926-278.832.724.73.90.54.023.013.9111.5
1927-289.639.327.24.10.53.522.813.1120.1
1928-299.943.129.34.00.53.424.012.4126.6
1929-309.136.128.44.10.63.625.613.4120.9
1930-318.824.622.24.00.52.923.311.397.6
1931-328.019.321.93.70.41.718.610.083.6
1932-338.920.421.23.50.41.717.710.083.8
1933-348.732.122.53.60.42.018.610.998.8
1934-357.928.323.03.80.42.620.710.397.0
1935-369.234.528.84.00.43.023.211.1114.2
1936-378.847.132.74.30.53.626.712.4136.1
1937-388.640.733.84.60.64.130.013.2135.6

The total value of production for the year 1937-38 has been computed at £135,600,000. This figure represents a decrease of £500,000 as compared with the record high level established in 1936-37 (£136,100,000). This decrease is accounted for by the substantial fall in the value of wool, which offset increases in other products.

Agricultural production in 1937-38 declined by £200,000, or by 2.3 per cent. in comparison with the year 1936-37, due chiefly to a smaller harvest of wheat and oats than in the previous year.

Pastoral production totalled £40,700,000, a decrease of £6,400,000 (13.6 per cent.), as compared with 1936-37 (£47,100,000), a sharp decline in wool-prices from the exceptionally high values ruling in 1936-37 being principally responsible.

Although the physical volume of dairy production receded during 1937-38 improved prices for dairy products under the guaranteed-price scheme have enabled this group to show an increase of £1,100,000, or 3.4 per cent., over the 1936-37 figure.

Mining and fisheries production moved up by £300,000 and £100,000 respectively, while the increased activity in the building trade accounts to a large extent for the rise of £500,000, or of 13.9 per cent., in forestry production.

Factory production—i.e., value created by factory processes—as well as attaining a now high level, is £3,300,000, or 12.4 per cent., greater than in the previous year. It should be borne in mind that the amount shown as factory production in the value of production statistics does not include the value of production in the industries processing primary products. Production in such cases is credited to the appropriate primary-production group (dairying, pastoral, forestry, &c.).

From the figures of total value of production it is possible, by taking into account the increase of population and the movement of prices, to compile a series of index numbers showing the relative volume of production. The index number of producers' prices used in this compilation is obtained by combining the index number of wholesale prices of locally produced commodities with the index number of export prices. The figures are given in detail in the next table.

VALUE AND VOLUME OF PRODUCTION.

Year.Mean Population, Year ended 30th June.Value of Production.Index Numbers of Value of Production (1928-29 = 1000).Index Number of Producers' Prices (1928-29 = 1000).Index Numbers of Volume of Production (1928-29 = 1000).
Total.Per Head.Total.Per Head.Total.Per Head.
  £m.£     
1900-01812,01033.941.72684834655761,039
1905-06929,06645.649.1360568602598944
1910-111,050,01452.850.3417582601694968
1915-161,150,37271.261.9562716823683870
1916-171,148,57872.162.8570727909627800
1917-181,151,23576.466.4603769979616786
1918-191,174,62885.672.96768441,027658822
1919-201,217,15093.176.57358851,088676813
1920-211,258,31399.479.07859141,105710827
1921-221,291,37693.772.6740840997742843
1922-231,317,154100.476.2793882948836930
1923-241,339,786104.177.78228991,029799874
1924-251,367,978119.987.69471,0141,111852913
1925-261,399,583110.879.28759171,016861903
1926-271,427,569111.578.1881904951926951
1927-281,447,657120.183.0949961987961974
1928-291,464,582126.686.41,0001,0001,0001,0001,000
1929-301,482,805120.981.59559439071,0531,040
1930-311,504,02297.664.97717517631,010984
1931-321,521,22883.655.0660637690957923
1932-331,533,25283.854.76626336541,012968
1933-341,545,62898.863.97807407261,0741,019
1934-351,556,92397.062.37667217391,037976
1935-361,568,434114.272.89028438091,1151,042
1936-371,582,243136.186.01,0759958891,2091,119
1937-381,598,540135.684.81,0719819061,1821,083

INDUSTRIAL EFFICIENCY.

With the growth of economic nationalism abroad, the necessity of planning industrial activity in such a manner as to achieve a more balanced economy has become increasingly apparent, and, to further this end, a Bureau of Industry was established early in 1936 under the provisions of the Board of Trade Act, 1919, as an advisory body to the Minister of Industries and Commerce.

The Industrial Efficiency Act passed in October, 1936, legally constitutes the Bureau of Industry, and the general purpose of the legislation as described in the long title to the Act is “to promote the economic welfare of New Zealand by providing for the promotion of new industries in the most economic form, and by so regulating the general organization, development, and operation of industries that a greater measure of industrial efficiency will be secured.” “Industry” in this Act includes not only manufacturing, but also any trade, occupation, business, works, or service of any kind whatsoever.

The Bureau of Industry is comprised of special and ordinary members, all of whom are appointed by the Minister of Industries and Commerce. The ordinary members are persons employed in the service of the Government who, in the opinion of the Minister, are possessed of some special knowledge or qualifications that are of advantage to the Bureau in the performance of its functions, and who are appointed so to act. The special members are nominees of manufacturing and agricultural industries, and power is given to the Minister, if he thinks fit, to appoint further special members to represent other industries or the workers employed in any industry. The Bureau, which meets at regular intervals, acts as an advisory body to the Minister of Industries and Commerce in matters pertaining to the establishment and development of new industries; the rendering of any Government assistance to industries; the raising of the quality of products; the adoption of uniform methods of accounting and costing; the preparation of statistics; standardization of materials, processes, or products; the training and supply of workers; and the marketing and distribution of products.

The Act gives authority to the Minister of Industries and Commerce to require that any industry specified by him shall be carried on only pursuant to a license issued under the Industrial Efficiency Act, and the Bureau of Industry is the licensing authority in this connection. The Minister is the appeal authority against any such decision of the Bureau in respect to licensing.

In considering an application by any person for a license, the Bureau is directed to have regard to a large number of matters which are enumerated in the Act, many of such matters being only those facts which any prudent person should take into account before commencing a business. Others are designed to protect those already engaged in industry from uneconomic competition after due regard has been given to the furtherance of the public interest and the efficiency of industry generally. The Bureau may attach such conditions as it thinks fit to a license, and may revoke any license upon grounds stated in the Act after giving requisite notice.

A further duty of the Bureau closely allied to licensing is the preparation of industrial plans for industries with a view to securing greater efficiency in such industries. The Minister may, on the advice of the Bureau, arrange to have any such plan applied to the industry concerned, although any such plan must, before adoption, be approved by the majority of those engaged in the industry affected.

Industrial plans have already been brought into operation with a view to regulating the flax and the pharmacy industries, and two committees known as the Flax Plan Industrial Committee and the Pharmacy Plan Industrial Committee respectively have been appointed by the Minister of Industries and Commerce to supervise the carrying-out of the provisions of the plans as approved by the members of the industries concerned. Plans for a number of other industries are at present being formulated in conjunction with representatives of those industries.

Regulations under the Act may be made for a wide range of purposes, including the registration of persons carrying on specified industries; the records and returns to be prepared by licensees; the imposition of license fees, or of levies to meet the expenses of a plan; the appointment of Industrial Committees; the fixation of prices, royalties, discounts, &c.; the control of production and marketing; the standardization and simplification of processes or products; and the imposition of penalties.

The Bureau is also directed to maintain a continuous survey of industries and industrial methods; to arrange for the collection, publication, and distribution of statistics relating to output, costs, prices, markets, working-conditions, and other related matters; to collaborate with any research organizations; to arrange for the publication and distribution of appropriate information among persons or organizations concerned; and to facilitate collaboration between Departments of State with respect to matters affecting industry.

The following twenty-five industries are at present subject to licensing under the Industrial Efficiency Act:—

  • Manufacture for sale of apple-juice. (15th June, 1939.)

  • Manufacture of products consisting of a combination of asbestos and cement. (10th December, 1936.)

  • Manufacture of batteries or cells, commonly known as dry cells. (8th January, 1937.)

  • Manufacture and/or assembly of secondary or storage cells and batteries, commonly known as wet batteries, or any part or parts thereof. (19th May, 1938.)

  • Manufacture of cement: Portland and other structural or building cement. (10th December, 1936.)

  • The business of any chemist or druggist carried on by the keeping of any open shop or place for the compounding or dispensing of prescriptions. (10th December, 1936.)

  • Manufacture of cigarette-papers. (15th December, 1938.)

  • Manufacture of colloidal sulphur. (18th July, 1939.)

  • Taking of fish for purposes of sale (not salmon, trout, whitebait, or oysters). (15th April, 1937.)

  • Export of fish, whether fresh or preserved (not salmon, trout, whitebait, or oysters). (15th April, 1937.)

  • Manufacture of footwear. (7th September, 1939.)

  • Importation and/or wholesale distribution of motor-spirits. (10th December, 1936.)

  • Retail sale and distribution of motor-spirits. (10th December, 1936.)

  • The manufacture of nails. (5th April, 1939.)

  • Taking of oysters from oyster-beds. (4th February, 1937.)

  • Manufacture of pumps or the assembly of parts thereof for the distribution of motor-spirits. (10th December, 1936.)

  • Manufacture for sale of radio receiving-sets. (15th June, 1939.)

  • Manufacture of electric ranges, including the assembly of parts thereof. (10th December, 1936.)

  • Manufacture of rennet. (10th December, 1936.)

  • Manufacture of bituminous roofing materials. (21st June, 1939.)

  • Manufacture of rope and twine. (6th July, 1939.)

  • Manufacture of rubber tires and tubes for all types of vehicles. (10th December, 1936.)

  • Manufacture for sale of soap and soap powder. (15th June, 1939.)

  • Manufacture for sale of waxed paper. (18th July, 1939.)

  • Manufacture of wooden heels for footwear. (10th May, 1937.)

The descriptions in many of the above cases merely serve to indicate in a general way the respective industries subject to licensing. The relevant Gazette notices may be consulted for further details.

GENERAL ELECTIONS.

The 1938 general election of parliamentary representatives was held in October of that year—for Maori electorates on the 14th, and for European electorates on the 15th. Dealing with the latter only, it is found that out of a total roll number of 995,173 some 924,057 (92.85 per cent.) exercised their votes. A summary for the general elections of 1931, 1935, and 1938 is as follows:—

 1931.1935.1938.
Number of votes recorded for candidates elected382,562442,716550,121
Number of votes recorded for candidates defeated310,510385,079367,563
Number of informal votes4,9556,8876,373
Total number of electors who voted at the election698,027834,682924,057
Percentage of votes recorded for candidates elected to total valid votes recorded55.2053.4859.95
Total number of electors on roll (where contest)838,344919,798995,173
Number of districts where no contest4....
Percentage of electors on roll who voted83.2690.7592.85
Percentage of votes recorded for candidates elected to total number of electors on roll45.6348.1355.28
Number of seamen's rights exercised8371,2291,146
Number of electors voting as absent voters31,16038,77641,633
Number of electors exercising postal votes6,9569,79617,324

The relative interest in the poll evinced by men and women may be measured by the percentage of votes recorded to the number on the roll—viz., men 93.43 per cent. and women 92.27 per cent. in 1938, the 1935 figures being 92.02 and 89.46 respectively.

A statement of the voting in individual electorates in 1938 is now given:—

RESULTS OF GENERAL ELECTION, 1938.

Electoral District and Names of Candidates.Number of Votes recorded.Number of Electors on Roll.Population at Census, 1936.Electoral District and Names of Candidates.Number of Votes recorded.Number of Electors on Roll.Population at Census, 1936.
Auckland Central   Christchurch East   
Dodd3,970  Armour3,382  
Parry10,151  Armstrong10,561  
Informal153  Informal73  
 14,27416,32021,874 14,01615,33022,059
Auckland East   Christchurch North   
Merritt6,261  Holland7,748  
Schramm8,887  Macfarlane7,256  
Informal109  Informal69  
 15,25717,29121,537 15,07316,20722,081
Auckland Suburbs   Christchurch South   
Allen238  Howard9,885  
Mason8,164  Ward3,890  
Walker3,302  Informal170  
Informal86      
 11,79012,76320,102 13,94515,14322,179
    Clutha   
Auckland West   Edie4,549  
Kealy3,584  Roy5,263  
Savage11,591  Informal54  
Informal100      
 15,27517,01722,018 9,86610,55816,799
    Dunedin Central   
Avon   Meade5,280  
Hunter3,700  Neilson9,094  
Sullivan9,879  Informal108  
Informal79      
 13,65814,78421,834 14,48215,51821,921
    Dunedin North   
Awarua   Falconer5,315  
Beck4,564  Munro8,872  
Hardest5,224  Informal83  
Informal75      
 9,86310,37918,039 14,27015,22221,910
    Dunedin South   
Bay of Islands   Aderman4,673  
Boswell4,556  Jones8,987  
Guy4,393  Informal69  
Informal252      
 9,2019,83616,763 13,72914,70521,622
    Dunedin West   
Bay of Plenty   McMillan8,452  
Hultquist4,964  Sidey5,813  
Sullivan4,795  Informal69  
Informal65      
 9,82410,61616,466 14,33415,48822,122
    Eden   
Buller   Anderton8,969  
Maddison1,832  Pool6,636  
Webb7,976  Robinson155  
Informal90  Informal132  
 9,89810,86017,540 15,89217,36821,688
Central Otago   Egmont   
Bodkin5,646  Trask3,661  
MacKay4,415  Wilkinson5,063  
Informal41  Informal82  
 10,10210,85317,697 8,8069,24916,928
Franklin   Manawatu   
Massey5,542  Cobbe6,245  
Piggott3,485  Hunter4,601  
Sexton1,564  Informal70  
Informal37      
     10,91611,81718,873
 10,62811,22317,790    
    Marlborough   
Gisborne  Healy5,054   
Coleman8,158  Meachen6,579  
Jones4,518  Informal79  
Informal71      
     11,71212,23218,563
 12,74713,79719,629    
    Marsden   
Grey Lynn   Barclay6,157  
Govan2,977  Murdoch5,600  
Lee11,584  Informal43  
Informal272      
     11,80012,41019,043
 14,83316,00522,138    
    Masterton   
Hamilton   Irving5,195  
Barrell7,722  Robertson5,385  
Grant5,862  Informal84  
Informal83      
     10,66411,30418,145
 13,67214,65320,527    
Hauraki   Mataura   
Allen5,291  Macdonald5,898  
Coulter4,103  McDougall4,383  
Informal97  Informal45  
 9,49110,35216,988 10,32610,95613,349
Hawke's Bay   Mid-Canterbury   
Cullen7,572  Grigg5,504  
Maddison4,914  Herring5,430  
Informal58  Informa34  
 12,54413,42219,667 10,96811,52918,490
Hurunui   Motueka   
Denton5,144  Holyoake4,272  
Forbes5,679  Skinner5,112  
Informa49  Informa80  
 10,87211,47918,547 9,49410,09917,757
Hutt   Napier   
Andrews3,873  Barnard8,097  
Nash10,687  Ormond4,160  
Informal111  Informa134  
 14,67115,29222,10112,39113,02119,752 
Invercargill   Nelson   
Denham8,094  Atmore6,092  
Dorman174  Kerr5,206  
Hall-Jones5,938  Informal46  
Informal54      
 14,26014,86022,729 11,34411,97619,068
    New Plymouth   
Kaiapoi   Frost6,958  
Warren4,813  Smith6,089  
Williams6,348  Informal69  
Informal168      
 11,32912,39319,387 13,11613,66821,045
Kaipara   Oamaru   
Coates5,414  Cooney5,213  
Scott-Davidson257  Nordmeyer5,971  
Stewart3,725  Informal66  
Informal65      
 9,46110,19017,394 11,25011,80119,508
Lyttelton   Onehunga   
McCombs8,041  Osborne9,412  
Wilson5,057  Park5,098  
Informal53  Informal73  
 13,15114,12021,154 14,58315,71821,969
Otahuhu   Stratford   
Petrie7,020  McMillan4,163  
Tennent4,753  Polson5,264  
Informal151  Informal60  
 11,92412,71718,246 9,48710,16317,529
Otaki   Tauranga   
Lowry5,926  Barker78  
Monk4,559  Burnett4,777  
Informal36  Doidge5,915  
    Informal76  
 10,52111,17718,578 10,84611,63517,240
Pahiatua   Temuka   
Hansen4,505  Burnett5,494  
Ransom5,436  Kearton4,245  
Informal46  Informal28  
 9,98710,56617,271 9,76710,14116,749
Palmerston North   Thames   
Hodgens8,093  Clark4,670  
Nash5,975  Thorn6,965  
Informal63  Informal100  
 14,13115,19622,110 11,73512,64820,211
Patea   Timaru   
Dickie5,510  Carr7,296  
Duggan4,701  Hall5,100  
Informal76  Informal78  
 10,28710,70517,957 12,47413,10520,730
    Waikato   
Raglan   Goosman6,944  
Gallichan115  Neate4,016  
Martin5,062  Informal136  
Sutherland4,458      
Informal95   11,09611,90418,800
 9,73010,53016,636Waimarino   
    Boles3,673  
    Langstone6,613  
Rangitikei   Informal65  
Gordon5,548      
Wilson5,237   10,35111,05318,951
Informal118      
    Waipawa   
 10,90311,67817,922Christie4,624  
    Jull5,070  
    Informal82  
Remuera       
Dreaver6,744  9,77610,30016,613 
Endean9,605      
Informal132  Wairarapa   
    Roberts5,293  
 16,48117,86622,104Thompson4,516  
    Informal44  
Riccarton    9,85310,56217,136
Kyle6,502      
Langford6,415  Waitaki   
Informal65  Barnes4,643  
    Kidd4,657  
 12,98213,87921,072Informal69  
     9,3699,75117,177
Roskill       
Bailey6,131  Waitemata   
Richards8,272  Close5,545  
Informal106  Lyon7,806  
    Informal118  
 14,50915,66721,445 13,46914,29920,130
Rotorua   Waitomo   
Moncur6,211  Broadfoot4,858  
Nixon4,563  Jones4,529  
Informal73  Informal43  
 10,84711,83217,496 9,4309,99017,036
Wallace   Wellington South   
Hamilton5,353  Howlett3,736  
Lynch4,509  McKeen10,151  
Informal50  Informal80  
 9,91210,69218,089 13,96715,74821,945
Wanganui       
Cotterill8,630      
Veitch4,710  Wellington Suburbs   
Informal62  Combs8,887  
    Mazengarb5,724  
 13,40214,14522,012Informal51  
Wellington Central    14,66215,76321,690
Appleton5,539      
Fraser9,376      
Informal89      
 15,00417,29721,855Wellington West   
    Stewart8,089  
Wellington East   Wright7,133  
Barker4,882  Informal64  
Semple9,618      
Informal51   15,28617,11922,146
 14,55115,94021,691    
Wellington North       
Chapman9,522  Westland   
Gilmer6,244  O'Brien,7,631  
Simpson80  Taylor3,902  
Informal110  Informal51  
 15,95618,70921,752 11,58412,57219,373

MAORI REPRESENTATIVES.

The votes polled for each candidate in the four Maori Electoral Districts at the general election of 1938 were as follows:—

Electoral District and Names of Candidates.Number of Votes. Recorded.Electoral District and Names of Candidates.Number of Votes Recorded.
Eastern Maori Southern Maori 
  Apirana Turupa Ngata4,113Eruera Tihema Tirikatene715
  Harry Delamere Dansey343Peter Hohua MacDonald87
  Matu Rangi334Thomas Kaiporohu Bragg230
  Reweti Tuhorouta Kohere3,049Informal8
  Tiaka Omana2,126  
  Informal359    Total1,040
    Total10,324Western Maori 
  Haami Tokouru Ratana6,460
Northern Maori Pei te Hurinui Jones2,193
  Hoori Taretana115Taite te Tomo1,369
  Mare Tawhai79Te Rangiatea Hopa169
  Paraire Karaka Paikea4,669Informal241
  Tau Henare2,658  
  Informal62    Total10,432
    Total7,583  

BY-ELECTION.

Due to the death of the late Mr. E. J. Howard, a by-election was necessary in the Christchurch South Electorate. The result of the voting, which took place on 3rd June, 1939, was as follows:—

Names of Candidates.Number of Votes Recorded.
Lyons4,005
Macfarlane7,900
Informal51
    Total11,956

The number of electors on the roll was 15,645.

LICENSING.

According to a return compiled by the Department of Justice, the following are the licenses for the sale of intoxicating liquors:—

Publican's licenses1,032
Accommodation licenses192
Wholesale licenses145
Packet licenses19
New Zealand wine licenses4
    Total1,392

The date of the return is nominally 1st September, 1929, but the numbers quoted cannot be increased, and the figures may be accepted as correct at the present time. A further 412 conditional licenses (temporary licenses for race meetings, agricultural shows, &c.) were granted during 1929-30, the last year for which figures are available. In addition, there were (November, 1939) 46 club charters and (September, 1939) 149 wine-makers' licenses.

Due to the restriction in the number of licenses, the proportion of licensed houses to population is steadily declining. The average number of persons to each licensed (i.e., publican's or accommodation license) house at the present time is approximately 1,330, as compared with 1,182 in 1925, 911 in 1915, and 583 in 1905.

The annual fees payable for licenses are,—

(1) For a publican's license—£
  (a) Within the limits of a borough or town district40
  (b) Outside the aforesaid limits25
(2) For a New Zealand wine license1
(3) For an accommodation license, a sum to be determined by the Licensing Committee, not exceeding20
(4) For a packet license— 
  (a) For a vessel exceeding 50 tons register10
  (b) For a vessel not exceeding 50 tons register5
(5) For a wholesale license20
(6) For a conditional license according to duration of license, a sum not exceeding30

Fees form part of the revenue of the local authority of the district in which the license was issued.

NATIONAL LICENSING POLLS.

The licensing poll of 15th October, 1938, held in conjunction with the parliamentary elections, was the sixth at which the three issues—national continuance, State purchase and control, and national prohibition (without compensation)—were submitted to the electors. Official figures of the 1938 poll, together with those of the four preceding polls, are as follows:—

 1922.1925.1928.1935.1938.
For national continuance282,669299,590373,692521,167546,995
For State purchase and control35,72756,03764,27657,49996,131
For national prohibition300,791319,450294,453243,091263,208

The voting results in each electorate in 1938 were as follows:—

District.For National Continuance.For State Purchase and Control.For National Prohibition.District.For National Continuance.For State Purchase and Control.For National Prohibition.
Auckland Central8,0223,1542,796Napier7,9159503,325
Auckland East8,4282,9533,555Nelson7,2356453,306
Auckland Suburbs6,0541,9653,491New Plymouth7,4751,3994,034
Auckland West8,1333,4503,395Oamaru5,7106164,678
Avon8,3381,3733,678Onehunga7,2222,7634,324
Awarua5,4855253,684Otahuhu6,0552,0623,542
Bay of Islands5,0171,3622,534Otaki6,5448372,918
Bay of Plenty6,1979432,537Pahiatua6,5844432,793
Buller6,6711,0901,916Palmerston North8,5721,0044,306
Central Otago6,7654412,761Patea6,7085642,823
Christchurch East9,1271,3913,197Raglan5,4311,4752,662
Christchurch North9,3361,1144,342Rangitikei7,3836532,692
Christchurch South8,7421,3643,576Remuera8,8762,1295,228
Clutha5,3174443,895Riccarton8,2328883,633
Dunedin Central8,5261,0674,644Roskill6,6842,2685,239
Dunedin North7,8591,0095,123Rotorua5,5792,9292,175
Dunedin South8,0368464,596Stratford6,2494622,601
Dunedin West8,7549064,381Tauranga6,2081,2063,296
Eden7,6302,4195,518Temuka5,9554303,208
Egmont5,9223602,364Thames6,5841,6363,319
Franklin5,5519723,900Timaru7,6776133,930
Gisborne7,8811,4093,239Waikato6,7098723,254
Grey Lynn7,3403,2443,817Waimarino7,2251,1591,752
Hamilton7,2902,0204,174Waipawa6,5826552,417
Hauraki5,3991,0222,880Wairarapa6,3916232,650
Hawke's Bay8,1458003,423Waitaki5,6644193,127
Hurunui7,3135092,852Waitemata6,7502,5493,935
Hutt8,7541,9773,609Waitomo6,0399902,219
Invercargill7,6731,0025,257Wallace6,1334593,142
Kaiapoi6,9027833,401Wanganui8,1121,0733,978
Kaipara5,3559213,098Wellington Central9,4031,7953,471
Lyttelton8,2691,1933,451Wellington East8,5031,7674,000
Manawatu6,6195473,540Wellington North10,8921,9822,788
Marlborough7,9677132,881Wellington South8,1151,8043,608
Marsden6,3051,8373,417Wellington Suburbs8,6101,9543,857
Masterton6,0955443,727Wellington West8,6691,8134,475
Mataura5,6754813,918Westland8,0538962,411
Mid-Canterbury6,7295123,513........
Motueka6,6416872,012Totals546,99596,131263,208

LOCAL OPTION.

In the no-license districts an additional issue is submitted—viz., local restoration—three-fifths of the valid votes cast being required for the carrying of the proposal. The voting figures for each of the twelve districts are shown for 1938.

District.That License be restored.That License be not restored.District.That License be restored.That License be not restored.
Auckland Suburbs5,5375,925Oamaru5,3255,640
Clutha5,0914,545Roskill4,9169,088
Eden5,9059,311Wellington East6,1237,934
Grey Lynn6,9417,351Wellington South7,0406,387
Invercargill8,1465,929Wellington West6,8047,927
Masterton5,6684,823......
Mataura5,8994,216Totals73,39579,076

LOTTERIES.

Under section 42 of the Gaming Act, 1908, the Minister of Internal Affairs may grant permission (subject to such conditions as he thinks fit) for the disposing by raffle or chance of any painting, drawing, sculpture, or other work of art, or literature, or mineral specimen, or mechanical model. By the Stamp Duties Amendment Act, 1931, any such licenses granted for the raffling for mineral specimens in excess of £100 value are subject to a lottery duty of 10 per cent. of the nominal value of all tickets represented in the drawing of the lottery, whether such tickets have been disposed of by way of sale or otherwise. Information as to receipts from this source will be found in Section XXIVB—Taxation.

The Gaming Act permits sweepstakes and art-unions (as defined) under certain specified conditions.

During the year ended 31st March, 1939, 686 licenses were issued under the authority of section 42 (above), of which 381 were for works of art, 296 for small amounts of alluvial gold, and 9 for larger amounts of alluvial gold (£5,000 each).

The following is a summary of large alluvial-gold lotteries subject to lottery duty during the last five years:—

1934-35.1935-36.1936-37.1937-38.1938-39.
Number of lotteries10911109
Gross sales £177,788157,762224,657207,464182,109
Commission on sales £26,36223,66433,69931,12027,316
Expenses £28,76326,07632,53729,23726,365
Prizes £39,50045,00055,00050,00045,000
Net proceeds £83,16363,022103,42197,10783,428
Lottery duty £17,77915,77622,46520,74618,211
Net profit £65,38447,21680,95676,36165,217

Of the net profits, £45,000 was distributed to the various mayoral or other recognized central funds established for the relief of distress, and the balance allocated to charitable and philanthropic organizations.

LIBRARIES.

CENSUS OF LIBRARIES, 1938.

From 1874 until 1936 a census of libraries was taken as an ancillary inquiry associated with the population census. In 1936, however, it was decided to conduct the census of libraries separately and at a different date from the population census. A library census was taken in 1938, the relevant date in most cases being 31st March, although in some cases data refer to a later month.

The library censuses of 1921 and 1926 covered public libraries only. The 1938 census endeavoured to cover also libraries of professional societies, Government Departments, University colleges, and secondary schools. Many of these classes of library could not supply the required information, and the coverage in their case is incomplete. The following summary covers public libraries for 1921-38; for 1906-1916 certain semi-public libraries are included:—

Year.Libraries.Members or Subscribers.Volumes in Stock.Population other than Maori.
1,90631322,770567,841886,000
1,91135831,221863,8781,005,589
1,91640433,024967,4651,096,228
1,92142160,4411,132,0791,214,677
1,92643563,4031,266,8921,344,469
1,938401114,1801,940,6511,517,712

The increase in the number of libraries is understated, as, owing to the amalgamation of adjoining boroughs or town districts, formerly independent libraries became merely branches of central libraries. During the recent depression some small rural libraries went out of existence; possibly the development of radio broadcasting and the new proprietary book-clubs were not without some effect. Probably the number of volumes in relation to population is the better index of the development of library facilities, and here the growth is definitely marked.

The size of public libraries is illustrated by the following table:—

Volumes in Stock.Public Libraries under control of a Local Governing Authority.Public Libraries not under the control of a Local Governing Authority.
Libraries.Total Volumes.Libraries.Total Volumes.
Under 1,00075,0867447,272
1,000-2,5001935,238140228,558
2,500-5,0002897,02362202,904
5,000-10,00031215,5751487,351
10,000-20,000899,799448,500
20,000 or over11758,7773114,568
Totals1041,211,498297729,153

In addition, 26 libraries of professional societies or Government Departments possessed 166,279 volumes, and 121 educational institutions 372,274 volumes.

Public libraries contained 435,622 reference and 1,398,147 lending volumes, as well as 106,882 volumes in junior divisions. Omitting junior volumes, they may be reclassified as—fiction, 1,120,190; non-fiction, 713,579. The proportion of non-fiction is higher in the larger libraries than in the smaller. Libraries of professional societies, Government Departments, and educational institutions are mainly reference and non-fiction.

Issues from public libraries during 1937-38 comprised: Fiction, 4,391,413; non-fiction, 985,720; junior, 604,637: total, 6,356,573 (inclusive of cases where only total issues wore known). The number of issues is understated, as a number of libraries (chiefly among the smaller) could not furnish even a reasonably accurate estimate. While this disability applies also to much of the data herein it is more pronounced in the case of issues.

Income and expenditure of public libraries during 1937-38 is given, subject to certain omissions in cases where information was not available:—

Income.£Expenditure.£
* Including binding and repairs.
From Government9,293Books*40,304
From controlling local authority46,393Periodicals4,685
From other local authorities3,365Salaries and wages47,207
Bequest or gift2,778Other items21,453
Subscriptions35,625....
Other sources15,255....
Total£112,709Total£113,649

LIBRARY FACILITIES.

The following brief note on the more important library facilities has been prepared by Mr. C. R. H. Taylor, M.A., Librarian of the Alexander Turnbull Library:—

This account aims to do no more than indicate briefly the principal reference libraries of the country, and mention something of their importance.

Most public libraries, in the larger towns and cities at any rate, are able to handle general reference problems, but few are of use to the student in any specialized subject. Nevertheless, the Auckland Public Library has in the Grey Collection an excellent accumulation of important early New Zealand books and manuscripts. Paralleling this is the McNab Collection in the Dunedin Public Library. Both are important to the historical student.

Of special libraries, however, the Royal Society of New Zealand is notable for its extensive resources in Wellington. This is probably the finest scientific library in New Zealand. The Auckland Institute has a surprisingly strong collection of great value to the scholar in specialized fields. The Universities are, as one might expect, reasonably well equipped in such departments, but the two agricultural colleges at Palmerston North and Lincoln are important, the former having claims to superiority. Cawthron Institute, a private endowment mainly for botanical and agricultural research, has also a fine library, and the Department of Agriculture at Wellington has a working collection of about ten thousand volumes. Apart from the libraries of some of the theological colleges, the Victoria College Library has a scholarly collection in the realm of theology.

For the student of the humanities, the collections of the General Assembly and the Alexander Turnbull Libraries in Wellington an; strong fields, the. former being especially sound in social sciences and the latter in English literature. The General Assembly Library is well equipped in many directions, and is, in addition, the repository of copyright books produced in New Zealand.

New Zealand history is best studied in these two institutions, and in the Hocken Library of Dunedin, which, as with the Alexander Turnbull Library, is especially strong in early manuscript material. The newspaper collections of the General Assembly Library are an especially valuable feature. For the study of the Maori and his Polynesian kin the city museums have basic collections, but the Alexander Turnbull Library and that of the Polynesian Society in Wellington have remarkable holdings.

To the student of antiquities among books, the Grey and Shaw Collections at Auckland Public Library will prove most attractive, as will the small but choice library of the British and Foreign Bible Society in Wellington. Again, the versatile Alexander Turnbull Library has superb collections of such books, including notable incunabulæ, manuscripts, and many first editions important in English literature.

TIME-SERVICE ARRANGEMENTS.

The following article on the New Zealand time-service arrangements was prepared by Mr. R. C. Hayes, Acting Director of the Dominion Observatory.

One uniform time is kept throughout New Zealand, called “New Zealand Mean Time” (N.Z.M.T.).

The following extract from the New Zealand Gazette of 31st October, 1868, contains the Government announcement regarding the standardizing of mean time for New Zealand:—

"Colonial Secretary's Office,

"Wellington, 30th October, 1868.

"In accordance with a resolution of the House of Representatives to the effect that New Zealand Mean Time be adopted throughout the colony, it is hereby notified for public information that the time corresponding to the longitude 172° 30′ east of Greenwich—which is exactly 11½ hours in advance of Greenwich time—has been adopted as the mean time for the colony; and that from and after the second day of November the public offices of the General Government will be opened and closed in accordance therewith.

"E. W. STAFFORD.”

The meridian 172° 30′ east is the approximate mean longitude of the Islands of New Zealand, and corresponds to a time 11 hours 30 minutes fast on Greenwich Mean Time (G.M.T.).

The use of Summer Time in New Zealand is governed by the Summer Time Act, 1929, and its amendment of 1933. For general purposes in New Zealand the clock is advanced thirty minutes during the period beginning at 2h., New Zealand Mean Time, on the last Sunday in September in any year, and ending at 2h., New Zealand Mean Time, on the last Sunday in April in the following year. Nothing in the Summer Time Act shall affect the use of New Zealand Mean Time for purposes of astronomy, meteorology, or navigation, or affect the construction of any document mentioning or referring to a point of time in connection with any of those purposes. The times in this article are N.Z.M.T., unless otherwise stated.

The time throughout New Zealand is controlled by the Dominion Observatory, Wellington. The Observatory signal clock is kept as correct as possible by means of astronomical observations, and by comparison with radio time-signals from observatories in other parts of the world.

The Observatory provides the following time-service:—

(1) RADIO TIME-SIGNALS TRANSMITTED THROUGH STATION ZLW ON A WAVE-LENGTH OF 500 Kc/s (600 METRES) I.C.W.

These signals are transmitted between 10h. 25m. and 10h. 30m. a.m. daily, and are in accordance with the modified ONOGO system. The procedure is as follows:—

  • At 10h. 25m. 30s., the “Attention” call ($), followed by the Observatory call sign ZMO ().

  • From 10h. 28m. 05s. to 10h. 26m. 50s., the letter 0 (***), repeated every ten seconds, except that the third series from 25s. to 30s. consists of a single dash prolonged for five seconds.

  • From 10h. 27m. 00s. to 10h. 27m. 49s. the letter X (***), repeated every five seconds.

  • From 10h. 27m. 55s. to 10h. 28m. 00s., First Time Signal, consisting of six dots at intervals of one second.

  • From 10h. 28m. 08s. to 10h. 28m. 50s., the letter N (***), repeated every ten seconds.

  • From 10h. 28m. 55s. to 10h. 29m. 00s., Second Time Signal, consisting of six dots at intervals of one second.

  • From 10h. 29m. 06s. to 10h. 29m. 50s., the letter G (***), repeated every ten seconds.

  • From 10h. 29m. 55s. to 10h. 30m. 00s., Third Time Signal, consisting of six dots at intervals of one second.

  • The series of six dots which constitute the actual time-signals are transmitted directly from the Dominion Observatory signal clock, which is seldom more than a quarter of a second in error The remaining signals are for tuning and identification purposes only, and should not be used as precise time-signals. Corrections to the time-signals can be obtained on application to the Dominion Observatory.

(2) RADIO TIME-SIGNALS TRANSMITTED THROUGH THE NATIONAL BROADCASTING SERVICE STATION 2YA.

Time-signals are supplied to the National Broadcasting Service for transmission through station 2YA. The signals consist of six dots, separated by intervals of one second, the last dot being the exact minute. Each transmission consists of a group of three signals at consecutive minutes, the scheduled times of transmission being as follows:—

  1. 10h. 28m.; 10h. 29m.; 10h. 30m. a.m. (daily).

  2. 3h. 28m.; 3h. 29m.; 3h. 30m. p.m. (daily).

  3. 7h. 28m.; 7h. 29m.; 7h. 30m. p.m. (daily, except Sundays).

  4. 10h. 28m.; 10h. 29m.; 10h. 30m. p.m. (daily, except Sundays).

NOTE.—These are civil times—that is, they are summer time during the period when this is in use, but New Zealand mean time during the remainder of the year.

In all cases the time-signals are superimposed on the station programmes, but in the event of failure or suppression of signals at scheduled times, they are transmitted thirty minutes later if circumstances permit.

(3) TIME-SIGNALS BY TELEGRAPH.

The Observatory sends time-signals by telegraph to the General Post Office and the Railways Department, Wellington, at 9h. a.m. daily. This signal is transmitted to all telegraph-offices in New Zealand and to all railway-stations in the North Island.

(4) PUBLIC CLOCKS.

The Government Buildings clock (Wellington) is checked at 9h. a.m. daily by means of a special circuit between the clock and the Observatory. The error of this clock is usually less than 15 seconds.

The Wellington General Post Office clock is also checked at 9b. a.m. by observing the first stroke of the hour as broadcast by station 2YA. The chimes of this clock are broadcast several times daily by the National Broadcasting Service stations in the various centres, and the first stroke of the hour may be used as a time-signal where high accuracy is not required. The clock is kept within a few seconds of the correct time.

An electric synchronous clock, installed at the Observatory, is checked twice daily, and the error reported to Mangahao Power-station. Observations show that the variation of the electric clocks running off the Mangahao power-supply amounts to a few seconds only.

TOURIST ATTRACTIONS.

From the point of view of the visitor New Zealand is an undeniably attractive country. The country is not large, but, nevertheless, it possesses a remarkably wide range of scenery. Marked changes of landscape within short distances are extremely typical, and this, together with the comparative smallness of the country, accounts for the proximity of the tourist resorts to one another. Where the time factor is important this is distinctly advantageous, to say nothing of eliminating the monotony of excessive travelling.

Climatically New Zealand is also favoured. Reference to the section dealing with “Climate” in the initial chapter of this book will illustrate this characteristic; but, in passing, it may be mentioned that a high sunshine average and a lack of extremes in temperatures make the country a pleasant one to live in and an ideal one to visit.

To reach New Zealand is not difficult as direct passenger services are maintained with the west coast of the United States and Canada, with England via Panama, with Australia, and with the Netherlands East Indies. Judged by trans-Atlantic standards, the vessels are moderate in size, yet they are up to date and extremely comfortable. To other travel facilities within the country the same remarks are applicable, for at present the extent of the tourist traffic does not warrant the provision of super-luxury accommodation. On the other hand, however, there is no question of makeshift nor hardship, for in the cities and the main tourist resorts hotels are both modern and adequately serviced. The railway system is efficient, though hampered somewhat in speed by a narrow gauge and the prevalence of steep gradients. In proportion to the population roading is remarkably well developed.

Items of interest will vary with individual tastes; some may devote attention to the country's flora, others to its economy, while many will wish to investigate its social legislation; but all, including the most seasoned traveller, will find charm in its scenery. For its appeal New Zealand scenery owes as much to its variety as to its beauty, and of its beauty it might be said that it can hardly be emphasized too greatly.

SCENIC RESORTS.

North Auckland.—Undoubtedly the superiority of kauri timber for ships' spars was responsible for the North Auckland peninsula being the scene of the first European settlement. Early in the last century whaling-vessels began to frequent the sheltered bays of this coast for timber and water, so that within a short time trading relations wore established with the Maoris. Of the numerous trading settlements that sprang up, the most favoured was Kororareka (now Russell), on the Bay of Islands, which achieved the distinction of being New Zealand's first township, and, for a short period, its capital. The Bay of Islands may be termed the cradle of New Zealand history, for the Treaty of Waitangi, whereby the Maori chieftains acknowledged British sovereignty, was signed here in 1840, while at Oihi Samuel Marsden preached the first Christian sermon. Besides its historical associations this locality possesses considerable attractions as the headquarters of big-game fishing. The sport obtainable here is not only well catered for, but is also of a very high order, several world-record catches having been made.

With its deep indentations this coast forms an ideal cruising-ground for yachts and motor-boats, especially in the summer months, when the vivid red pohutukawa blooms colour the shore-line. The kauri-pine was confined almost entirely to the North Auckland peninsula, where remnants of these forests are still to be seen. The majority of these are now under State control for purposes of conservation, as is explained in the section of this volume dealing with forestry. Peculiar to this area is the industry of kauri-gum digging, a form of prospecting carried out where kauri forests formerly existed.

Rotorua.—As the most famous and most popular of New Zealand resorts, Rotorua enjoys an international reputation. By reason of its situation on an extensive volcanic plateau it is the centre from which the geysers, mud pools, and other thermal activities of the district can be visited. Apart from being spectacular, the thermal waters and muds possess curative properties of an outstanding order, and, as is explained under the heading of “Mineral Waters and Spas “ (post), all the amenities of a modern spa are available for those desiring treatment.

When viewing the numerous surrounding lakes, either by launch or motor, visitors cannot but notice how the fiendish intensity of the thermal activity contrasts strongly with the peacefulness and beauty of the lakeside scenery. This is even more noticeable when within short distances can be found the desolation of the thermal outcrops and the luxuriance of the semi-tropical native forest. Roads through several well-preserved areas of the latter give ample opportunities of seeing the variety and luxuriance of growth for which New Zealand bush is notable.

Due to the very successful acclimatization of rainbow and brown trout in the lakes and streams, the superiority of the angling has made the district nearly as renowned for its fishing as for its scenery. In particular, the exceptional size of the fish is a matter of surprise and delight to anglers.

By reason of the few opportunities elsewhere for observing the Maori mode of living, the Native villages in the vicinity of Rotorua always command attention. Especially interesting is the ingenious utilization of the boiling springs for purposes of cooking.

Waitomo Caves.—Over a lengthy period the Waitomo Caves have been one of New Zealand's major tourist attractions, and, apart from the interest of the caves themselves, case of access and the proximity of comfortable accommodation has greatly added to their popularity. Of recent years the judicious arrangement of electric lighting has made it possible for the limestone formations to be seen under conditions that greatly enhance their beauty. The caves at Waitomo compare favourably with those in other countries both in their extent and in the variety of their formations, but in the grandeur of the glow-worm cavern they eclipse all others. This underground river-grotto, as viewed in darkness from a punt, with myriads of glow-worms studding its ceiling, is both unique and incomparably beautiful.

Tongariro National Park.—Situated in the centre of the North Island this reserve includes the three large volcanoes—Ruapehu, Tongariro, and Ngauruhoe. Ngauruhoe is an active volcano, and thermal activity is present throughout the area, the hot lake in the crater of Ruapehu being a notable example. On account of its height this Park attracts each winter large numbers to take part in the winter sports, especially ski-ing. Some hundred miles to the west, and near the coast, is the lone volcanic cone of Mount Egmont (extinct) which bears a strong resemblance to Japan's Fuji-yama. Its slopes are also favoured for winter sports.

Lake Taupo.—From the mountains of the National Park and its vicinity streams flow north into Lake Taupo, New Zealand's largest lake. Of these streams, the Tongariro River has acquired an international reputation among anglers on account of its superior fly-fishing, while the lake itself provides excellent trolling. With towering cliffs on its western shores, and the three volcanoes along the southern horizon, the setting of the lake is most impressive, and more especially in winter when snow adds to the majesty of the peaks.

West Coast of the South Island.—Though visitors have numerous opportunities for studying New Zealand forest scenery while travelling through the country, it will be found that conditions are unrivalled on the west coast of the South Island. Here, owing to the heavy rainfall, tree-ferns are in profusion and the forest-growth is of a density and luxuriance unequalled elsewhere. As may be expected, timber-milling is extensive. Also of interest in this district are coal-mining and gold-mining, the latter being both of quartz and alluvial types with a substantial increase in dredging in recent years. From the scenic viewpoint the major attractions are the Franz Josef and Fox glaciers. On account of the extremely low altitudes to which these two largo glaciers descend, they are easily accessible. Apart from the case with which they may be reached, they form a convenient starting-point for alpine expeditions.

The Southern Alps.—For both the alpinist and the tourist the snow-clad peaks of the Southern Alps exert a strong fascination. This range extends along the greater part of the South Island, and among its peaks may be found climbing-conditions that compare more than favourably with those of the Swiss Alps. Huts, situated at strategic points, materially assist climbing, while those huts in the neighbourhood of the extensive snowfields form headquarters for ski-ing enthusiasts.

The Southern Lakes.—Set at high altitudes among offshoots of the Southern Alps are a series of alpine lakes of great beauty. Long, narrow, and of exceptional depth, their glacial formation, besides being geologically interesting, gives them a majesty and a seclusion of unrivalled scenic appeal. A noticeable feature of the area to the east of the Southern Alps is its tendency towards a continental configuration, so that the landscapes possess a vastness not found in other parts of the country.

The early history of the country in the vicinity of the southern lakes and the rivers draining them is that of the search for gold. In 1861 the first gold-rush occurred, followed by others within the next few years as the rapid exploration of large areas, including even remote mountain valleys, took place. With varying success the quest has been continued up to the present day, the most profitable method now being the operation of large-scale dredges on the larger rivers and old river-beds.

West Coast Sounds.—Where the mountain system reaches the coast in the south-west corner of the South Island New Zealand possesses a series of magnificent sounds. Those drowned glacial valleys, with their immense depth and over-towering mountains, rival the Norwegian fiords. Favoured by cruising liners, approach by land is as yet only possible by alpine tracks, but a tunnel now being constructed will enable motor-vehicles to reach Milford Sound, the best-known of the West Coast sounds.

The foregoing is not to be considered as an exhaustive description of the country's scenic attractions, but rather as an indication of the more accessible and popular of these. Little mention has been made, for instance, of the river scenery which is encountered throughout the country. While all the rivers add to the charm and variety of the country, some, such as the Wanganui and the Waikato, are renowned, the former for its deep gorges and the latter for its falls and rapids.

It will be found in touring through the country that many districts and towns, though lacking spectacular sights, possess appeals of their own. In many places road and railway follow the coast-line, so that travelling is frequently enlivened by sketches of coastal scenery. The several types of farming, the major industry of the country, are always of interest, and, in particular, the distribution of the various types according to the class of country and climatic differences.

Apart from the scenic excellence, visitors cannot but observe, and find interest in, the country's economy and social customs. It is not proposed here to attempt an analysis of these nor to trace the extent to which they interlock, but; merely to mention a few of their more striking manifestations. The most noticeable feature of the economic structure is the high per caput export trade, with a resulting economic dependence on other countries, especially the United Kingdom. Though it will be noticed that, in the main, British customs have been transplanted in New Zealand, it will also be apparent that certain adaptations and evolutions have taken place to meet the needs of a new country. Of the more individual characteristics frequently commented upon are the comparative lack of class distinctions and the high standard of living. Though a high level of education exists, the charge is frequently made that the country is culturally backward since there has been no emergence, as yet, of a distinctive national literature or art. Another source of comment is the paucity of the more sophisticated types of entertainment such as cater for night-life in older countries. This may be ascribed to the lack of patronage, due to the small population and the non-existence of a resident leisured class. For similar reasons sustained musical entertainment, other than broadcasting, is not available; but visits are received periodically from eminent overseas artists. As in other British countries, sport is a predominant interest. Of the numerous kinds available, Rugby football and horse-racing have the largest following, while angling is a great attraction to visitors. Red deer, which have become established in some districts to the detriment of the forest-growth, give opportunities for excellent stalking.

As it is generally considered that Native administration in New Zealand, with its equality of education and franchise, is one of the most enlightened, the status of the Native population attracts attention. Those Natives living in more remote districts tend to retain more of their original culture and habits. It can be fairly claimed, however, that the Maori race not only has succeeded in adapting itself to European conditions, but that during the last two or three decades has shown definite signs of regeneration. It is interesting to note that in recent years the Maori birth-rate has risen appreciably, in contrast to the previous fall and also to the downward tendency of the non-Maori birth-rate.

MINERAL WATERS AND SPAS.

The hot springs of the North Island form one of the most remarkable physical features of New Zealand. They are found over a large area, extending from Tongariro, south of Lake Taupo, to Ohaeawai, in the extreme north—a distance of some three hundred miles; but the principal seat of hydrothermal action appears to be in the neighbourhood of Lake Rotorua, about forty miles north-north-east from Lake Taupo. By the destruction of the famed Pink and White Terraces at Lake Rotomahana during the eruption of Mount Tarawera on the 10th June, 1886, the neighbourhood was deprived of attractions unique in character and of unrivalled beauty; but the numerous lakes, geysers, and hot springs still present numerous scenic attractions. The importance of conserving this region as a sanatorium was recognized by the Government, and legislation was enacted for that purpose.

There are also several small hot springs in the South Island, the best known being those at Hanmer. In addition to the major spas of Rotorua and Te Aroha, which are controlled by the Department of Industries and Commerce, Tourist and Publicity, and of Hanmer, administered by the Department of Health, there are numerous smaller resorts which have been developed by private or municipal enterprise. In many other instances the springs are wholly or mainly undeveloped.

In his book “The Hot Springs of New Zealand,” Dr. A. S. Herbert, O.B.E., M.D., gives the following grouping of the better-known waters, corresponding roughly to their mineral-water classification:—

  • Sulphur waters: Rotorua, Hanmer, Taupo, Wairakei, Waiotapu.

  • Alkaline waters: Te Aroha.

  • Saline waters: Helensville, Waiwera, Tarawera.

  • Iodine waters: Morere, Te Puia.

  • Calcium carbonated waters: Kamo.

  • Simple thermal waters: Okoroire and the Waikato springs.

The following article, dealing with the waters at Rotorua and Te Aroha, is by the Government Balneologist, Dr. J. D. C. Duncan, M.B., Ch.B. (Edin.), Member of the International Society of Medical Hydrology, Fellow of the Royal Society of Medicine, and Fellow of the Royal Geographical Society:—

INTRODUCTORY.

It has been acknowledged by the leading hydrologists in Europe that New Zealand possesses the most valuable mineral waters in existence. Not only are these mineral waters interesting from a tourist's point of view, but they are, because of their medicinal value, of great therapeutic importance, and, as a Dominion asset, worthy of the deepest scientific consideration.

From the spectacular aspect only a brief mention need be made in this article, as a full description of springs, geysers, and mud-pools has been given in Dr. Herbert's book, “The Hot Springs of New Zealand “—a book that presents a comprehensive and vivid picture of the main manifestations of thermal activity in New Zealand.

Since and as the result of experience gained during the 1914-18 war, the subject of hydrotherapy has been re-created on modern scientific lines, and the actions of thermal mineral waters have been investigated, both chemically and physiologically, in determining their therapeutic value in the treatment of disease.

ROTORUA SPA.

Treatment Establishments.

The principal treatment establishments are the Main Bathhouse and the Ward Baths.

In the Main Bathhouse are a series of private bathrooms, slipper and step-down, each with its dressing-room attached, and a couch for packing purposes. The baths are arranged for either “Priest” or “Rachel” waters, with undercurrent douches and showers. There are, also, deep “Priest” pools at suitable temperatures for the treatment of chronic cases.

Off the main hall are treatment-rooms where massage and every variety of physiotherapeutic treatment can be given, and, in either wing of the building, a complete establishment for Aix-Vichy douche massage.

The Ward Bathhouse is a handsome new block of buildings which has replaced the old Pavilion Bathhouse. This building, divided into convenient sections for service and control, consists of a large main hall, swimming-pools, hot “Rachel” pools, “Old Priest” and “Radium” baths, and a block of private “Rachel” baths.

At the back of these buildings is an attractive sunken courtyard, with fountain and formal garden, surrounded on three sides by verandas, and on the fourth by an open pergola facing the lake. In this courtyard-garden patients and visitors can bask in the sunshine, protected from prevailing winds.

The swimming-pools, open to the air, are spacious baths lined with white tiles and having douches, showers, and convenient dressing-cubicles. These pools provide recreational facilities for patients and visitors.

The “Radium” and “Priest” baths, built on the pumice bed of the soil, contain some of the most important therapeutic waters in existence, and are invaluable in the treatment of heart conditions and cases of nervous debility. In connection with these baths are comfortable rest-rooms and convenient massage establishments.

The private baths are of the porcelain, slipper variety, and step-down tiled baths—the latter designed for helpless or crippled patients.

The swimming-pools of the new Blue Bath afford one of the most attractive playgrounds for visitors to Rotorua. There are two pools, set in T form with a colonnade between. The larger pool, 100 ft. by 40 ft., with a depth of 4 ft. 6 in. to 9 ft., has unique diving-platforms. This pool is lighted under the water by twenty are lamps, which give a beautiful luminous effect to the water. The smaller pool, 70 ft. by 36 ft., is a safe and enjoyable playground for children of any age. Both pools are lined with white tiles. Convenient dressing and shower rooms surround the pools. At the entrance a luxurious lounge provides a resting-place for bathers, and above this an attractive tea-room serves refreshments to its patrons.

Mineral Waters.

The mineral waters which have been harnessed for therapeutic use at the Rotorua Spa are of two main varieties — viz., the “Rachel,” which is an alkaline, sulphuretted water, emollient to the skin, and sedative in reaction; and the “Priest,” or free-acid water, which, due to the presence of free sulphuric acid, is mainly stimulating and tonic in reaction. There is, in addition to the foregoing, a valuable silicious mud similar to that found in Pistany, in Czechoslovakia, which, in its own sphere in hydrotherapy, exerts its influence as a curative agent.

However, it is in the “Priest” waters that one finds one's most valuable ally in the treatment of arthritis, fibrositis (the so-called rheumatic affections), and cases of nervous debility. The “Rachel” and mud baths are used mostly in those cases of fibrositis where the condition requires a softening effect; and in the types where pain is a manifest symptom these baths are invaluable as soothing and sedative agents.

Reactions in the Bath.

In these natural acid baths the reactions are mainly stimulating, with increased hyperæmia in the parts submerged, and marked lessening of pain and swelling in the affected joints and tissues. Those waters containing free carbonic-acid gas are used for the cases of fibrositis in which the circulation requires the stimulating action of gaseous baths.

The “New Priest” waters, containing approximately 16.80 grains per gallon of free sulphuric acid, are utilized in the form of open pools, deep stop-down baths, and slipper baths. They are prescribed at a suitable temperature for the individual case.

The “Old Priest” waters, containing a much lower degree of free acid (3.77 grains to the gallon), and of varying temperatures (from 84° F. to 102° F.), are used for treatment at their source. The waters, percolating through their pumice-bed, are confined in pools, and contain free carbonic-acid gas bubbling through the water.

The very strong “Postmaster” waters are also confined within pools on the natural pumice-bed, and by a primitive arrangement of wooden sluice-valves, are maintained at three ranges of temperature — viz., 104°, 106°, and 108° F. They contain 22.29 grains of free sulphuric acid to the gallon, and are strongly counter-irritant in their reactions.

Indications and Technique.

In such a brief account as this one can deal only in generalizations, and the forms of treatment mentioned must necessarily be subject to wide variations. In any form of hydro-therapeutic treatment the régime must be adapted to the individual manifestations of the disease, and no routine rules or regulations can be laid down in spa operations.

The “New Priest” waters are, for the most part, prescribed for patients suffering from subacute or chronic fibrositis, subacute or chronic gout, and the various forms of arthritis. Except in cases of marked debility, those patients are given graduated baths, at temperatures ranging from 102° to 104° F., from ten to fifteen minutes daily. Most of the baths are fitted with a subaqueous douche having a pressure of 25 lb. to the square inch, which is directed under water on the affected tissues. The bath is usually followed by a fight or hot pack, according to the needs of the case.

The subthermal “Old Priest” waters (temperature 84° F.), containing a high degree of free carbonic-acid gas, are particularly valuable in the treatment of functional nervous disease, and the methods of administration are similar to those obtaining at Nauheim (Germany). The reactions are markedly stimulating through the sympathetic nervous system, and bring about, by reflex action, a tonic effect on the heart.

The “Postmaster” baths are used in the treatment of the more chronic forms of fibrositis, arthritis deformans, and gout, requiring a more or loss heroic type of procedure. They are usually prescribed in combination—i.e., a certain time in each pool, commencing with the lowest temperature. The hyperæmic reaction is most marked, and in many of the cases where pain is a predominant symptom there is a temporary paralysis of the surface nerves, as well as a strong reflex excitation of the heart. For this reason these baths are not given to patients suffering from cardiac weakness.

The mud baths, being highly impregnated with silica, which has a bland, sedative effect on the tissues, are particularly indicated in cases of acute or subacute neuritis, gout, and certain skin conditions. The action of these baths is to induce an active hyperæmia in the patient with an actual absorption of free sulphur, which is present in considerable quantity. Also the radio-activity of this medium (0.185 per c.c.) is, possibly an active factor in the therapeutic action of these baths. In some of the cases undergoing mud-bath treatment the effect has been almost miraculous—instant relief from pain; reduction of swelling caused by inflammatory exudates—and such patients have been able to discard crutches or other adventitious aids and to walk with more or less normal comfort.

Perhaps, of more recent date, the most efficacious effects of mud treatments have been manifested in cases of skin conditions—notably psoriasis: cases which have resisted all forms of drug treatment have cleared up in an almost magical manner; and so frequently have such cures been effected that one believes that the silicious mud of Rotorua has some markedly specific action as a therapeutic agent.

The treatment of gout depends entirely on the individual manifestations. In certain subacute and chronic types fairly high temperatures (104° to 106° F., with hot packs) of “Priest” water are employed, in order to hasten the absorption of exudates and the elimination of uric acid. In cases of acute gout more sedative measures are pursued, such as “Rachel” baths at neutral temperatures, local mud packs, and rest. As soon as the conditions permit, these patients are changed over to acid water baths. Cases of chronic gout exhibiting metabolic stagnation sometimes receive considerable benefit from the counter-irritant effects of the strongly acid “Postmaster” waters.

Accessory Treatments.

Separate establishments, containing the most modern apparatus of sprays, douches, hot steam, &c., are available for wet massage and treatments of the Aix-Vichy type.

The massage-rooms are fitted with the latest installations of electrical equipment —Bristowe tables, diathermy, high frequency, Bergonie chair, X-ray, Schnée baths, Greville hot air, and other apparatus for carrying out the most up-to-date methods of electrical-therapeutic treatments.

The baths are administered by a trained staff of attendants, and the massage, electrical-therapy, and douches carried out by a staff of qualified operators.

In every respect the hydrotherapy treatments aim at a restoration of function and the measures employed are, for the most part, re-educative.

Sanatorium and General Statistics.

In connection with the Rotorua Spa is a sanatorium of seventy beds, where patients whoso finances are restricted can receive treatment at an exceedingly moderate cost. The institution consists of cubicles and open wards. Thermal baths and massage-rooms in the building provide for the more helpless type of invalid.

From sixty thousand to eighty thousand baths are given annually, and about thirty thousand special treatments—massage, electrical therapy, &c.—are administered each year at the Rotorua Spa. The usual course of treatment lasts from four to six weeks, and the high percentage of cures and improvements testifies to the value of the thermal mineral waters and the hydro-therapeutic treatments obtaining in this Dominion.

TE AROHA SPA.

The waters of the more Important Te Aroha springs give the following analyses:—

Hot Sodium Bicarbonate Waters.

 Grains per Gallon.
 SpringSpring
 No. 8.No. 15.
Sodium chloride59.159.5
Sodium bicarbonate648.0657.4
Sodium sulphate39.240.1
Potassium chloride10.011.0
Calcium bicarbonate8.96.8
Magnesium bicarbonate2.52.5
Silica8.07.0
  Total solids775.7784.3
Carbonic acid (free)55.037.4
Temperature (F.) 135°.  

GASES ARISING FROM THE SPRINGS.

 Per Cent.
Carbonic acid96.00
Methane1.63
Nitrogen2.37
 100.00
Cold Magnesium Waters.Grains per Gallon. Spring No. 21.
Sodium chloride23.9
Sodium bicarbonate258.1
Sodium sulphate9.3
Potassium chloride4.1
Calcium bicarbonate31.5
Magnesium bicarbonate13.3
Ferrous bicarbonate0.7
Lithium chloride0.0
Silica13.5
  Total solids354.4
Free carbonic acid103.4
Temperature, cold...
Cold Chalybeate Waters.Grains per Gallon. Spring No. 1.
Sodium bicarbonate2.17
Magnesium chloride1.33
Magnesium sulphate2.31
Calcium bicarbonate15.40
Magnesium bicarbonate0.49
Ferrous bicarbonate4.55
Alumina1.89
Sodium silicate5.11
  Total solids33.25
Free carbonic acid76.93

Te Aroha, which has over twenty springs of mineral waters, possesses absolutely unrivalled drinking-waters of the Vichy type. The springs vary in quantity, temperature, and chemical content, but are all, in their several spheres, valuable from a pharmacological point of view in treatment. The largest springs, No. 8 and No. 15, are of the true Vichy type, containing considerable quantities of sodium bicarbonate and sodium chloride. There are some cold springs, containing a fair amount of ferrous bicarbonate and free carbonic acid, and others containing magnesium bicarbonate, but not in any large quantity.

It is, however, the hot sodium bicarbonate waters from springs No. 8 and No. 15 which are chiefly used, and for which Te Aroha is justly celebrated.

Though the Te Aroha Spa is important for its drinking-waters, there are certain cases which benefit considerably from taking the baths.

Cases suitable for Treatment.

  1. Gastric catarrh and hyperacidity.

  2. Gout, in sthenic cases.

  3. Gouty glycosuria.

  4. Biliary calculus.

  5. Uric acid calculus.

  6. Chronic catarrh of the respiratory organs.

  7. Mild cases of anæmia and general debility.

Because of the nature of the Te Aroha waters, they are more valuable from a pharmacological standpoint than as a bathing medium, and it is in “drinking the waters” that their most potent value is obtained.

The type of water, and the quantity to be taken, is a matter for the medical adviser's prescription, but there are certain rules which are essential in partaking of the waters:—

  1. The waters must be taken “on an empty stomach”—i.e., two hours before or after a meal, or, preferably, in the morning, at least an hour before breakfasting.

  2. To obtain the correct reactions and proper ingestion of the waters, they should be sipped quite slowly, with a five-minute pause between tumblers.

  3. Not more than three tumblersful—i.e., a pint and a half—should be taken at one time.

Baths.

These are in the form of pools, at their source, or in the Cadman Bath House, where the water is led into slipper baths, and arranged at suitable temperatures according to the needs of the case. In the pools the water is clear and sparkling, due to the presence of free carbonic acid gas.

The baths, suitably prescribed, are, in collaboration with drinking the waters, of potent value in treating the foregoing cases, but there are certain types of rheumatism and neuritis which benefit considerably from baths combined with massage and electrical treatment.

Electric Baths: By passing a controlled electrical current through the water, valuable tonic effects can be induced whereby the circulation and the nervous system are “toned” up.

Greville Hot Air: This form of apparatus arranged for dry heat or “baking” of the limbs is particularly valuable for treatment of synovitis, certain conditions of gout, and painful swellings around the joints. By this means high temperatures (200°-300° F.) can be brought about, intense sweating is induced, with consequent reduction of the swelling and relief of the pain.

Dry and Farado Massage: In conjunction with the bath treatment, massage is a valuable ally in the treatment of rheumatic diseases, subacute and chronic gout, and various forms of neuritis and nervous debility. The massage is prescribed according to the needs of the case, and, in some conditions, is augmented by a mild, faradic current which, passing through the operator's body, is conveyed to the patient in the form of a tonic stimulation.

Ionization: In rheumatic conditions, where fibrous tissue is often the cause of pain and stiffness, ionization is used alternatively with massage. Using the various salts of sodium, lithium, iodine, &c., an electric current is used as a catalyser, and the ions of the salts are conveyed through the skin into the actual tissues of the body.

X-rays: The most up-to-date X-ray apparatus has been installed at the Cadman Bath House.

REVIEW OF LEGISLATION, 1939.

Acts passed to date of adjournment: Public Acts, 43; Local Acts, 12; Private Acts, 1.

The following is a brief synopsis of the more important public Acts passed by the General Assembly during the 1939-40 session up to the adjournment on 7th October, 1939:—

The Industrial Conciliation and Arbitration Amendment Act, 1939, provides that in the event of a discontinuance of employment being caused by any industrial union of workers or of employers, the registration of the union may be cancelled, or any award or agreement relating to the union may be cancelled.

The Finance Act, 1939, in Part I, authorizes certain prescribed borrowing by the Government and validates certain payments made out of public moneys. Part II, which relates to land-tax and income-tax, reduces the amount of income exempt from income-tax, and provides for the payment of income-tax and social security contributions by persons about to leave New Zealand. Part III revises the scales of estate duties, succession duties, and gift duties.

The Property Law Amendment Act, 1939, restricts the right of a mortgagee to exercise a power of sale or entry into possession unless notice of default is given to the mortgagor. It also gives power to a mortgagee to deal separately with minerals and land when exercising a power of sale. Certain rights are conferred on mortgagees when default has been made.

The Land Transfer Amendment Act, 1939, makes miscellaneous amendments to the Land Transfer Act. The more important sections are those which provide for a lease being extended by memorandum, for the variation of the priority of mortgages by memorandum signed by the parties concerned, and for the removal of fencing covenants from titles in certain circumstances. Restriction is placed on the licensing of land-brokers.

The Emergency Regulations Act, 1939, authorizes the Governor-General to make regulations for the purpose of safeguarding the interests of the community during a period of national emergency. The regulations may extend to ships or aircraft registered in New Zealand.

The Transport Law Amendment Act, 1939, in Part I relates to motor-vehicles, and provides for heavier penalties in respect of the offence of driving a motor-vehicle while intoxicated. Part II relates to transport licensing and makes miscellaneous amendments to the Transport Licensing Act, 1931.

The Adhesive Stumps Act, 1939, transfers the control of the custody, creation, and disposition of adhesive postage stamps from the Stamp Duties Department to the Post and Telegraph Department.

The Summary Penalties Act, 1939, revises the law relating to the enforcement of penalties imposed by Justices. It provides for the supervision of defendants under the age of twenty-one years, and restricts the imprisonment of defendants failing to pay fines.

The Legitimation Act, 1939, provides that every child shall be legitimated by the marriage of his parents, and that every child that has been legitimated shall have the same status as a child born in wedlock. Provision is made for the registration of legitimated children.

The Domestic Proceedings Act, 1939, restricts publicity in respect of matrimonial disputes, and provides methods whereby a conciliation may be attempted by prescribed officers in cases where separation proceedings have been taken.

The Hire-purchase Agreements Act, 1939, aims at giving relief to purchasers of goods under a hire-purchase agreement when the goods have been repossessed by the vendor. In that event the purchaser shall be entitled to recover from the vendor the total amount of the moneys paid and the value of any other consideration provided by the purchaser, less the difference between the purchase-price of the goods and the value of the goods at the time when the vendor takes possession. Provision is made for the reopening of harsh and unconscionable hire-purchase transactions. In certain circumstances a workman may have a lien for work done on goods the subject of a hire-purchase agreement.

The Hutt Road Act, 1939, abolishes the Wellington City and Suburban Highways Board of Control, which formerly administered the Hutt Road, and vests the control of that road in the appropriate authorities.

The Meat Act, 1939, is a reconstruction of the legislation dealing with the establishment of municipal abattoirs, the licensing of meat-export and other slaughterhouses, the slaughter of stock, the inspection of meat intended for human consumption, and the export of meat from New Zealand.

The Nurses and Midwives Registration Amendment Act, 1939, provides for the registration and training as “nursing aids” of persons who, not being qualified to be registered as nurses, have sufficient training to undertake nursing duties. The Act also provides that nurses must obtain annual practising certificates, and that the registration of nurses may be suspended on the ground of misconduct.

The Small Farms Amendment Act, 1939, amends the Small Farms (Relief of Unemployment) Act, 1932-33, and alters the title of that Act. It provides that Crown land subject to the principal Act may be disposed of under renewable lease to persons not in regular employment and without sufficient capital to acquire land for themselves.

The Local Legislation Act, 1939, confers specific powers on named public bodies and validates various transactions entered into by local authorities.

The Patents, Designs, and Trade-marks Amendment Act, 1939, brings New Zealand law relating to patents, designs, and trade-marks into conformity with Imperial law. The Act adopts the provisions of the Patents and Designs Act, 1932 (Imp.), and the Trade-marks Act, 1938 (Imp.).

The Wages Protection and Contractors' Liens Act, 1939, is a consolidation of the legislation relating to the payment of wages to workers and to the protection of contractors in respect of the payment for work done by them.

The Native Purposes Act, 1939, adjusts certain claims and disputes in relation to Native land and confers added jurisdiction on the Native Land Court.

The War Expenses Act, 1939, establishes a War Expenses Account which is to be used as a depository for all moneys appropriated for war purposes, including moneys raised by war taxation and any sums borrowed for war purposes.

The Customs Acts Amendment Act, 1939, increases the Customs duties on specified goods, and the excise duties on beer, tobacco, and gold. Certain of the revenue to be raised from the increases is to be paid into the War Expenses Account.

The Social Security Amendment Act, 1939, deals principally with maternity benefits. It provides for the fixation of fees payable for medical services afforded in relation to maternity benefits, and that, except in certain prescribed circumstances, every medical practitioner who renders medical services in respect of obstetric treatment shall be entitled to receive fees from the Social Security Fund for such services. Special provisions are also made for the payment of fees to obstetric specialists. The remainder of the Act consists of verbal amendments to the principal Act found necessary in the administration of that Act.

The Rural Housing Act, 1939, authorizes County Councils to advance moneys to farmers for the purpose of erecting dwellings, and to provide for the repayment of such advances.

The Pharmacy Act, 1939, is a consolidation of the legislation relating to pharmaceutical chemists. A pharmaceutical society is constituted, the membership of which consists of all registered chemists. The affairs of the society are managed by a Pharmacy Board, and provision is made for the establishment of a disciplinary committee. The Act restricts the sale of specified drugs by any person except a registered chemist.

The Land and Income Tax Amendment Act, 1939, makes miscellaneous amendments to land- and income-tax legislation. It exempts soldiers' pay from income-tax; provides for the aggregation of the income of a husband and of a wife for tax purposes; makes income derived from the use or occupation of land liable for tax; lays down that a non-assessable income from other British Dominions is to be taken into account when assessing income-tax; provides that, in certain cases, the income from a proprietary company shall be assessable as the income of the shareholders of the company; and provides for an arbitrary assessment of tax where a business controlled by non-residents appears to produce insufficient taxable income.

The Visiting Forces Act, 1939, makes provision for the command and discipline of Forces from other parts of the British Commonwealth visiting New Zealand, and reciprocates similar legislation in force in England, Australia, and Canada.

The Industrial Conciliation and Arbitration Amendment Act (No. 2), 1939, deals with industrial disputes. It provides for the place of hearing of disputes affecting two or more districts, and provides that where a dispute is settled before a Council of Conciliation the terms of the settlement may be embodied in an award without a Court hearing. It also enlarges the power of the Arbitration Court to delegate its functions.

The Finance Act (No 2), 1939, in Part I relates to public revenues and loans, and authorizes certain public expenditure and the raising of certain loans. Part II relates to war pensions, and makes provision for pensions in the event of the death or disablement of members of New Zealand forces. Part III makes miscellaneous amendments to the National Provident Fund Act, 1926.

The Marketing Amendment Act, 1939, changes the name of the Primary Products Marketing Department, and extends the functions of the Department so that it may deal with any specified goods (instead of with primary products only). Authority is given for the opening of special accounts in the Reserve Bank for the purposes of the Act.

The Reserve Bank of New Zealand Amendment Act, 1939, provides that the Governor and the Board of the Reserve Bank shall have regard to representations conveyed to the Governor in writing by the Minister of Finance. It modifies legislative restrictions on the conduct of business by the bank, and provides that the Minister may vary or suspend the requirements in regard to the maintenance of a minimum reserve. Provision is also made that the gold coin and bullion owned by the bank may be valued by the Minister of Finance, and any increase in value credited to a special reserve to be held on behalf of the Crown.

The Legal Aid Act, 1939, confers cm the Governor-General power to make regulations providing for legal aid to poor persons.

The Fair Rents Amendment Act, 1939, extends the operations of the Fair Rents Act, 1936, for a further year, applies the provisions of that Act to certain flats, and confers power to make regulations in respect of charges for residential accommodation.

Chapter 47. SECTION XLVII.—DEPENDENCIES.

INTRODUCTORY.

ON pages 1 and 2 of this Year-Book the islands comprising the Dominion of New Zealand are divided into three groups, viz.:

Islands forming the Dominion proper.

Outlying islands included within the geographical boundaries of New Zealand as proclaimed in 1847.

Annexed islands.

In the preceding sections statistical attention has been paid to the first of these groups only. In the present section it is proposed to deal briefly with the second and third groups, and also with the mandated territories of Western Samoa and Nauru, the Ross Dependency, and the Tokelau or Union Group.

Stewart Island and the Chatham Islands, although coming within the first group for general purposes, are given brief mention.

STEWART ISLAND, which, with its small adjacent islands, has an area of some 670 square miles, is separated from the South Island by Foveaux Strait. It was thought by Captain Cook in 1770 to be a peninsula, and this impression persisted for a number of years. The earliest record of its known existence as an island is shown in a map drawn in 1804 by O. F. Smith, an American sealer. The island was named after another sealer, William Stewart, who was connected with its early history. Stewart Island has several good harbours, is well wooded, and mountainous, the highest peak being the extinct volcano, Mount Anglem (3,200 ft.). The principal industry is sea-fishing, and the island is also a noted holiday resort. Stewart Island is a county, and statistically is treated as part of the South Island. The estimated population at 1st April, 1939, was 500, including 120 Maoris.

The CHATHAM ISLANDS consist of two inhabited islands and several unimportant islets of a total area of some 372 square miles. The islands were discovered by Lieutenant Broughton on 29th November, 1791, and named after the Earl of Chatham. They contain no high country, and the larger island has a central lagoon of about 72 square miles. The chief industries are sheep-farming and sea-fishing. Although about 450 miles eastward of Banks Peninsula, the group was constituted a county in 1901, and is not classed with the outlying islands. Before 1922 the islands were not included in any electoral district, and thus had no parliamentary representation, but from 1922 have been included in the Lyttelton Electoral District, and in the Western Maori Electoral District for the election of Maori representatives. In view of the special circumstances of the Chathams, certain laws are modified in their case. For instance, petrol taxation for roading purposes is not imposed, while formerly the Employment Promotion Act did not apply, although the Social Security Act now does. By the Chatham Islands County Act, 1936, the County Council's power of levying rates under the Counties Act was abrogated as from 1st April, 1937, and funds are now obtained by the imposition of import dues.

The Chatham Islands are for most purposes grouped with the South Island, and are also treated for statistical purposes as part of Canterbury Provincial District, although the latter is not strictly correct in point of law. The islands are included within the Wellington Deeds, Land Transfer, and Land Districts, but within the North Canterbury Hospital District and the Canterbury-Kaikoura Sheep District. The estimated population at 1st April, 1939, was 730, including 330 Maoris.

OUTLYING ISLANDS.

The outlying islands (total area, 307 square miles) included within the geographical boundaries as proclaimed in 1847 are—

Three Kings Islands.Bounty Islands.
Auckland Islands.Snares Islands.
Campbell Island.Solander Island.
Antipodes Islands...

The THREE KINGS ISLANDS (so named by Tasman on account of his having discovered them on the anniversary of the Feast of the Epiphany) are a group of uninhabited islets (area, about three square miles) extending about seven miles in an east-north-east direction, and situated about thirty-eight miles west-north-west of Cape Maria van Diemen, at the northern extremity of the North Island.

The AUCKLAND ISLANDS were discovered on the 18th August, 1806, by Captain Abraham Bristow, in the ship “Ocean.” They lie about 290 miles south of Bluff Harbour, their accepted position being given as latitude 50° 32′ south and longitude 166° 13′ east. They have several good harbours. The largest of the islands is about twenty-seven miles by about fifteen miles, and is very mountainous, the highest part being about 2,000 ft. above the sea. The total area is about 234 square miles.

CAMPBELL ISLAND, which lies about 150 miles south-east of the Auckland Islands, was discovered in 1810 by Frederick Hazelburgh, master of the brig “Perseverance,” owned by Mr. Robert Campbell, of Sydney. It is mountainous, and of a circumference of about thirty miles. There are several good harbours. The area is approximately forty-four square miles.

The ANTIPODES ISLANDS are an isolated group, consisting of several detached rocky islands (aggregating about twenty-four square miles) tying nearly north and south over a space of four to five miles; accepted position, 49° 41′ 15“ south, and longitude 178° 43′ east. They were discovered in 1800 by Captain Waterhouse of the “Reliance.”

The BOUNTY ISLANDS, a little cluster of islets, thirteen in number, and without verdure, were discovered in 1788 by Captain Bligh, R.N., of H.M.S. “Bounty”; position verified by observation, 47° 43′ south, longitude 179° 0½′ east. The total area is probably less than one square mile.

The SNARES ISLANDS, discovered on 23rd November, 1791, by Lieutenant Broughton, are situated about fifty-six miles to the south-west of Stewart Island, and comprise six islets of a total area of about 600 acres.

SOLANDER ISLAND, which lies about forty miles to the north-west of Stewart Island, was discovered by Captain Cook in 1770. It is a bare rock, one mile in length and approximately half a square mile in area.

None of the outlying islands is at present inhabited.

KERMADEC ISLANDS.

The KERMADEC ISLANDS, four in number, with some outlying islets, rank as “annexed islands,” having been annexed to New Zealand by Proclamation dated the 21st July, 1887. The islands are situated between the parallels of 29° 10′ and 31° 30′ south latitude, and between the meridians of 177° 45′ and 179° west longitude. The principal island, Sunday, is 600 miles distant from Auckland, and lies a little more than half-way to Tonga, but 100 miles to the eastward of the direct route to that place. It is 300 miles eastward of the route to Fiji, and 150 miles westward of that from Auckland to Rarotonga. Macaulay Island and Curtis Islands were discovered in May, 1788, by Lieutenant Watts in the “Penrhyn,” a transport ship. The remainder of the group was discovered in 1793 by Rear-Admiral do Bruni, Chevalier d'Entrecasteaux, who gave the name of Kermadec to the whole group after the name of one of his captains.

The islands are volcanic, and in two of them signs of activity are still to be seen. The rainfall is plentiful but not excessive. The climate is mild and equable, and slightly warmer than that of the north of New Zealand. The following are the areas of the islands and islets of the group: Sunday Island, 7,200 acres; Herald group of isles, 85 acres; Macaulay Island, 764 acres; Curtis Islands, 128 acres and 19 acres; L'Espérance, 12 acres: total, 8,208 acres. Sunday Island is twenty miles in circumference, roughly triangular in shape, and at the highest point 1,723 ft. above the sea-level. It is rugged and broken over a very large extent of its surface, and, except in a few places, covered by forest. The great luxuriance and richness of the vegetation beat witness to the excellence of the soil, which has been formed by the decomposition of a dark-coloured pumiceous tuff and a black andesitic lava, with which is mixed a fine vegetable mould. Want of water is one of the drawbacks. Three of the four lakes on the island are fresh, but are so difficult of approach as to be practically useless.

Several attempts have been made to settle on the islands, the latest being in 1935, when a small party took up residence on Sunday Island. In anticipation of the inauguration of the trans-oceanic air service a meteorological station has been established on this island. With the official staff, the population in April, 1939, was five.

COOK ISLANDS.

HISTORY.

The well-founded history of the Cook Islands can be traced back to the time of the general migratory movements of the Polynesians from the Eastern Pacific. That is to say, subsequent to the fourteenth century, when the migrations ceased and the population became more settled, we have a fairly accurate account of the activities and fortunes of the various tribes on the numerous islands. Native legends relating to earlier periods, partly owing to the great lapse of time, are not so reliable, but, in spite of small discrepancies, show remarkable resemblance to similar narratives of kindred peoples in other parts of the Pacific. In particular, these legends, together with the common racial characteristics, language, and civilized state, confirm the close kinship of the Natives with the Maoris of New Zealand. From the time of their arrival in the islands until the advent of Europeans the Natives maintained their stage of advanced neolithic civilization, showing a marked tendency for indulgence in tribal warfare.

The initial European discovery of an island of the territory was made in 1765 by Commodore Byron, when he found Pukapuka; but to Captain James Cook, after whom the lower group was named, goes the honour of discovering six of the sixteen islands. From time to time during the next sixty years explorers, missionaries, and whalers of various nationalities discovered the remaining islands. Cook's first discovery was Manuae, which, with the adjacent islet of Te Au-o-Tu, he found in 1773, and gave to them the name of Hervey Islands after one of the then Lords of the Admiralty. In 1774 he discovered Palmerston Island, and in 1777 Mangaia, Atiu, and Takutea, but he missed the important island of Rarotonga. Some thirty years later whalers commenced to visit the islands for trading purposes, while in 1821 John Williams, of the London Missionary Society, introduced Christianity by leaving native Tahitian missionaries at Aitutaki. Considerable success was achieved in the conversion of the Natives by adopting the procedure of landing Native converts on the various islands of the lower group, to be followed later by European missionaries. In 1823 Williams, after much searching, discovered Rarotonga. Christianity was not introduced to the northern islands until 1849, when, following appeals from the Natives, missions were established.

With the introduction of Christianity a system of laws, obviously inspired by the missionaries, superseded the traditional tribal customs, but administration remained in the hands of the chiefs. Trading vessels frequented the islands, bartering European goods for copra, fruits, and other tropical products. At a later stage the recognized medium of exchange, as throughout the other South Seas islands, was the Chilean dollar, and within the area it was not displaced by British currency until a Proclamation of 1902. In the early “sixties” Peruvian vessels appeared among the islands, recruiting male labour for the working of phosphate deposits on the South American coast. Though holding out promises of good pay and repatriation, these vessels were conducting a disguised form of slave-raiding, and in some of the smaller islands caused a serious depletion of population. Further and more disastrous reductions in population were due to the epidemics of European diseases, such as measles and influenza, which swept through the group, and against which the Native population possessed no inherent resistance.

In October, 1888, following representations from Native chiefs, the Cook Islands were declared to be under British protection by Captain Bourke of H.M.S. “Hyacinth,” and in June, 1889, Manuae, Te Au-o-Tu, and Takutea, which at that time were known as the Hervey Group, were also declared to be a British protectorate. From 1890 to 1901 the protectorates were administered by a Resident Agent appointed by the New Zealand Government; and from 11th June. 1901, under the provisions of the Colonial Boundaries Act, 1895, and by resolution of the New Zealand Parliament, the Cook and adjacent islands were included within the boundaries of New Zealand.

ADMINISTRATION.

In the administration of the proclaimed area the primary responsibility rests with the Minister for the Cook Islands, who, by the provisions of the Cook Islands Act, 1915, and its amendments, is answerable to the Government of New Zealand. Acting under Ministerial direction, the Secretary of the Cook Islands Department exercises executive control, while for purposes of local administration a Resident Commissioner is stationed at Rarotonga, with Resident Agents, answerable to the Resident Commissioner, in charge of the remaining inhabited islands of the area. The only exception is Niue, which possesses no direct sea communication with the remainder of the territory (see letterpress post).

In the control of each island the Commissioner and Agents are assisted by Island Councils, consisting of ex officio, elected, and/or nominated members. European officials and Arikis (Native chiefs) may be declared councillors ex officio, and nominated members hold office during the pleasure of the Governor-General of New Zealand. In the Governor-General is also vested the power of making and amending the regulations for elective membership. By the Cook Islands Amendment Act, 1921, provision was made for the election of European members to Island Councils as representatives of the European population. At the present time there is one such member for Rarotonga.

Subject to certain statutory limitations, each Council is empowered to make laws for the good government of the island. Such laws must not be repugnant to Acts of the New Zealand Parliament, or regulations made thereunder, while no Ordinance has effect until it has received the assent of the Resident Commissioner or the Governor-General, the latter having power to disallow within one year any Ordinance receiving the Commissioner's assent. The maximum penalties imposed by an Ordinance of an Island Council must not exceed three mouths' imprisonment or a fine of £50. No Council has power to deal with Customs duties, to borrow money, to establish Courts of Justice, nor to appropriate expenditure of revenue other than that raised under authority of its Ordinances.

Legislation is enforced through the High Court, which has all jurisdiction, civil or criminal, necessary for the administration of justice, and is presided over by a Chief Judge resident at Rarotonga. At the present time the Chief Judge also carries out the duties of Resident Commissioner, and it is provided that a Commissioner may, with some exceptions, exercise the full powers and functions of a Judge. A judgment obtained in a civil proceeding in the High Court may be enforced in the Supreme Court of New Zealand, while from any decision in the High Court an appeal lies to the Supreme Court in the Dominion. For the purpose of settling land-ownership disputes a Native Land Court, presided over by a Chief Judge, was constituted under the provisions of the Cook Islands Act, 1915.

GEOGRAPHICAL AND DESCRIPTIVE.

Reference to page 2 of this Year-Book will give the boundaries of the proclaimed area, which, roughly speaking, lies over 1,500 miles from New Zealand in a north-north-east direction. Being wholly within the tropics it experiences a warm, humid climate characterized, where the soil is fertile, by luxuriant flora. The majority of the islands are subject to hurricanes, which occur between January and March, the last serious visitation having been in February, 1935.

In considering the islands within the territory a distinction can be made between the scattered islands in the north, and the islands towards the south forming the Cook group proper. The majority of the northern islands are typical coral atolls of no great height or size, while in the southern cluster volcanic action has been responsible for islands of greater area and fertility. As a consequence the southern islands support the greater population. With one exception, none of the islands possesses a good harbour, so that throughout the territory the ever-present coral reefs greatly hinder transport and commerce.

Following is a brief description of the individual islands:—

Lower Group.

Rarotonga (16,500 acres), the most fertile and valuable island of the territory, rises to a height of 2,100 ft. It is clothed to the tops of the mountains with splendid vegetation, and has abundant streams, considerable tracts of sloping land, and rich alluvial valleys. The town of Avarua is the centre of the local administration and is 1,634 miles from Auckland.

Mangaia (17,500 acres, 110 miles from Rarotonga) is the south-easternmost of the Group. Mangaia is not so fertile as Rarotonga, but produces large quantities of coconuts, bananas, oranges, limes, citrons, and other fruits. The most remarkable feature of Mangaia is the “makatea,” or raised coral wall, rising a few hundred yards inland from the beach, which surrounds and shuts off the whole interior of the island. Honey-combed with caverns, and its surface a mass of spear-like points, this wall is supposedly due to the original reef being raised by volcanic action. The island's greatest height is 656 ft.

Atiu (6,950 acres, 120 miles from Rarotonga) resembles Mangaia in formation. It is a raised mass of coral, steep and rugged, except where there are small sandy beaches and some clefts. On the highest point of the central ridge coconuts, bananas, oranges, and coffee grow with the utmost luxuriance; and the kumara, one of the most valuable of South Sea vegetables, yields large crops.

Mauke (4,600 acres, 151 miles from Rarotonga) is a low circular island about two miles across, lying to the north-cast of Rarotonga. Like Mangaia and Atiu, it is surrounded by an unbroken fringing reef. Mauke is very fertile.

Aitutaki (3,900 acres, 140 miles from Rarotonga) is about eighteen miles in circuit and one of the most fertile of the islands forming the Lower Group. It is capable of exporting large quantities of tropical fruits and vegetables, but exports are restricted owing to the irregular and infrequent shipping calls. The island was discovered by Captain Bligh of the “Bounty” in 1789 a few days before the outbreak of the famous mutiny. The Natives have the reputation of being the best sailors of the Group.

Mitiaro (2,500 acres, 142 miles from Rarotonga) is a good example of an elevated coral reef, thinly coated with sand and gravel of the same material. The greater part of the surface is not more than 6 ft. above high-water mark.

Manuae (1,524 acres, 128 miles from Rarotonga), and its neighbouring islet. Te Au-o-Tu, were Cook's original discoveries, to which he gave the name of Hervey Islands. They are surrounded by a reef, which is about 10½ miles in circumference.

Takutea (302 acres, 120 miles from Rarotonga) is a small coral island, moderately fertile.

Northern Islands.

Penrhyn (4,000 acres, 740 miles from Rarotonga) is also known as Tongareva. It is one of the most famous pearl-islands in the Pacific, but of recent years, owing to changes in world fashions and in the success of pearl-culture, exports of pearl-shell and pearls have fallen to low proportions. The large lagoon with its two entrances affords the only land-locked shelter within the proclaimed area for vessels other than fishing-boats, and it is the refuge of trading schooners during the hurricane season. As drought conditions sometimes exist, large concrete tanks have been built for the conservation of rain-water.

Manihiki (1,250 acres, 650 miles from Rarotonga) is an atoll about thirty miles in circumference, valuable for the extent of its coconut groves. It also suffers on occasions from droughts, and is equipped with concrete water-tanks.

Pukapuka (1,250 acres, 720 miles from Rarotonga) is a small solitary atoll, also known as Danger Island.

Rakahanga (1,250 acres, 670 miles from Rarotonga) is also an atoll, and shares its Resident Agent with Manihiki, from which it is only twenty miles distant.

Palmerston (1,000 acres, 277 miles from Rarotonga) consists of eight islets threaded along a reef. These are inhabited by the descendants of William Marsters, an English sailor who settled there in 1862 with his native wife and two other native women. By these three women there were separate families, each family now having its own headman.

Suwarrow (600 acres, 525 miles from Rarotonga) is a coral atoll of triangular form possessing a land-locked lagoon eight miles by six, which is capable of being made into an excellent harbour. The island, which is uninhabited, is a sanctuary for sea birds, and part of it is a naval reserve.

Nassau (300 acres, 670 miles from Rarotonga) is a small island well planted with coconuts.

REVENUE AND EXPENDITURE.

Revenue is derived principally from Customs duties, which, with minor exceptions, follow the New Zealand Customs tariff; from Court fees and fines, dog-tax, motor fees, road and water rates, stamp sales and duties, trading licenses, &c. The Rarotongan Treasury finds all revenue for ordinary expenditure, but the New Zealand Government subsidizes that Treasury for medical and educational purposes. Including grants from the New Zealand Government, the revenue of the Cook Islands for the year 1938-39 was £48,967 and the expenditure £58,016.

HEALTH.

Under the provisions of the Cook Islands Act, 1915, all Natives are provided gratuitously with medical and surgical aid. As a result of this policy the population is particularly free from most of the usual tropical diseases. Those diseases consistently prevalent, however, and calling for constant medical service are leprosy and pulmonary tuberculosis. Of recent years particular attention has been directed towards child-welfare, resulting in a marked lowering of the infant death-rate.

The manufacture or importation of intoxicating liquor is prohibited absolutely, excepting for medicinal, sacramental, or industrial purposes.

POPULATION AND VITAL STATISTICS.

A census of the Cook Islands taken as for 30th April, 1936, showed an increase in population of 21.46 per cent. on the preceding census of 1926. The increase was restricted to the Native population, which numbered 11,991 (males 6,235, females 5,756) in 1936. The population other than Natives—255, comprising 141 males and 114 females—showed a decline of 26 in the ten years since 1926.

Island.Population, 1926 Census.Population, 1936 Census.Island.Population, 1926 Census.Population, 1936 Census.
* Uninhabited at census.
Aitutaki1,4311,719Pukapuka526651
Atiu9331,086Rakahanga327290
Mangaia1,2491,459Rarotonga3,9365,054
Manihiki416487Suwarrow**
Manuae238Takutea**
Mauke511652Nassau*18
Mitiaro238265......
Palmerston9790Totals10,08212,246
Penrhyn395467......

Each of the seven censuses taken since the annexation of the islands in 1901 has shown an increase of population. A system of compulsory registration of births, deaths, and marriages is in force in the islands; but, in view of the irregularity and infrequency of communication with some of the islands, precise figures cannot be stated for a given period. In the report of the Cook Islands Administration for 1939 the estimated population was given as 13,107. During the year ended 31st March, 1939, registered births for the island of Rarotonga numbered 217 (males 116, females 101); deaths, 105 (males 63, females 42); and marriages, 36.

EDUCATION.

Twelve Government schools are established on the inhabited islands of the Lower Group and at Pukapuka, and the Administration subsidizes the London Missionary Society for its six schools established in the Northern Cook Islands. In addition, six Roman Catholic Mission schools are established on various islands within the Group.

The aim of the Administration is to educate the children up to the equivalent of Standard IV of the New Zealand school syllabus, with facilities at Rarotonga for advanced children to attain a level comparable to Standard VI in New Zealand. A limited number of scholarships are granted, which enable pupils of outstanding ability to enter Maori colleges in New Zealand in order to fit them for positions in the Cook Islands Public Service. A system whereby the schools are staffed entirely by Native teachers is being gradually introduced. During the year 1938, 3,144 children wore being educated in the Cook Islands schools, and the average attendance was 93.4 per cent.

COMMUNICATION.

For trading connections with other countries the islands are mainly dependent on a four-weekly steamer service to and from New Zealand. By this service regular calls are made at Rarotonga, and occasional calls, for purposes of loading cargo, at the larger and more productive of the southern islands. Transportation between the islands is mainly undertaken by schooners.

Radio communication has largely destroyed the former isolation of the islands, there being at 31st March, 1939, only two permanently inhabited islands, Mitiaro and Palmerston, without radio-stations. The chief station is Rarotonga Radio, which maintains direct communication with the substations and with Wellington, Apia, and Suva. For the year 1938-39, 6,911 paid telegrams were despatched from the Rarotonga station.

FRUIT REGULATIONS.

In order to stabilize the fruit-export industry, regulations were brought into operation in 1937, placing the control of fruit for export under the Minister for the Cook Islands. By these regulations the Minister is given power to fix the maximum amount of fruit that may be supplied by any individual or district for export in any particular shipment or season; to fix prices below which fruit for export cannot be sold in the Cook Islands; and to control the export, distribution, and sale of fruit, such control including packing, grading, storing, &c. The Resident Commissioner, as executive officer of the Minister, is assisted by an Advisory Council elected by both Native and European growers. To enable growers to establish or extend plantations, provision is made for advances to be made of trees, implements, food-supplies, or money. Power is also given for a levy to be made on fruit exported in order to provide funds for the operation of the regulations.

TRADE.

The figures of exports and imports for each of the last ten years are—

Year.Exports to New Zealand.Total Exports.Imports from New Zealand.Total Imports.
 ££££
1,92993,066124,48673,565106,835
1,93085,965109,43869,976103,468
1,93166,93279,94549,22369,260
1,93259,88073,40948,26363,585
1,93359,26273,98354,02276,716
1,93453,75659,30746,21461,449
1,93540,47253,59943,56661,676
1,93660,18267,55653,91372,576
1,93757,99686,33360,56386,534
1,93866,11073,18457,22774,789

Apart from copra exports (£6,865 in 1938), the bulk of the trade is with New Zealand. In 1938 other countries to which exports were sent were the United States, £4,833; and the United Kingdom, £2,236. Imports in 1938, exclusive of imports from New Zealand, came chiefly from the United Kingdom, £7,421; Australia, £4,327; and the United States, £2,528.

Experts of principal commodities during 1938 were—Quantity.Value.
Oranges93,837 cases37,594
Bananas45,209 cases18,540
Tomatoes15,442 boxes7,179
Copra909 tons6,865
Orange-juice5,172 gallons1,738
Coconuts1,534 sacks575

NIUE.

HISTORICAL.

Though the Niue-Islanders are undoubtedly of Polynesian origin they differ in many respects from other branches of the race. Unlike most Polynesian peoples, they have been little concerned with genealogies, so that the date of their arrival in Niue is one of some conjecture. External evidence points to its having been at the time of the earliest migratory movements from Indonesia, and long before the dispersion from Eastern Polynesia.

In physical appearance the Niueans show traces of a considerable admixture of Melanesian blood, while in temperament they display a marked reserve in their dealings with strangers. It was doubtless the latter tendency of the Islanders, together with their hostile appearance, that caused Captain Cook to give the island the unfortunate name of Savage Island when he discovered it in 1774. Later, a sustained hostility was shown towards missionaries, various attempts at conversion to Christianity meeting with poor response until after 1862. When trading schooners began to frequent the island bartering was freely entered into, but traders were given little encouragement to settle. At the same time the Natives revealed themselves to be of a roving and energetic disposition, which led to their recruitment as sailors and as labourers for other islands. In particular large numbers were employed on the copra plantations of German Samoa and the phosphate workings of Maiden Island. Prior to that the island had suffered from the raids of Peruvian slavers.

By the Proclamation of 1901 the island was included in the boundaries of the Cook Islands, and administration passed from the Native King to a Resident Agent, answerable to the Resident Commissioner at Rarotonga. Owing to its remoteness from the other islands considerable inconvenience in administration was experienced; and in accordance with the provisions of an amending Act of 1903 the Resident Agent, who had been responsible to the Resident Commissioner at Rarotonga, was replaced by a Resident Commissioner directly answerable to the Minister for the Cook Islands. This form of administration was retained until 1932, when it was considered that in view of the fact that regular steamer communication with Niue is maintained by the service with Western Samoa, greater administrative efficiency could be achieved by transferring control to the Minister of External Affairs, who is responsible for the mandate of Western Samoa. No change was made, however, in the constitution or laws, which remain the same as those of the Cook Islands, nor were the powers of the Resident Commissioner, who also acts as Judge, altered.

GEOGRAPHICAL.

Situated on the extreme western boundary of the proclaimed territory, Niue is 600 miles distant from the main islands of the Cook Group. In construction the island is a raised coral island of no great height, and has an area of 64,028 acres. Being formed of extremely porous soil it is deficient in streams, and as a consequence is of moderate fertility only. For trading purposes it is further handicapped by the lack of a harbour and the position of the coral reef—the latter, owing to the extreme steepness of the sea-bed, being very close inshore, and affording no protection from heavy seas.

POPULATION.

Returns for the census taken on 30th April, 1936, disclose the population as 4,104. Totals for the six preceding censuses taken since the annexation of Niue by New Zealand (11th June, 1901) are as follows:—

1,9024,0791,9163,880
1,9063,8221,9213,750
1,9113,9431,9263,795

The following comparison with the census taken on 20th April, 1926, shows an increase of 309 (8.14 per cent.) in the ten years:—

Native population—Census, 1926.Census, 1936.
Males1,7631,980
Females2,0002,102
European population—  
Males1812
Females1410
Total population3,7954,104

The Native population was estimated by the Niue Island Administration to be 4,276 at 31st December, 1938.

EDUCATION.

There are two Government schools, where agriculture, handicraft, domestic art, and woodwork form part of the curriculum. The average roll number of these two schools was 388 in 1938, with an average attendance of 88 per cent. In addition, there are ten schools under the control of the London Missionary Society, which are subsidized by the Administration. The average roll number for these schools during 1938 was 522, and the average attendance 89.5 per cent.

HEALTH AND VITAL STATISTICS.

A Government hospital is established in Niue, the staff consisting of a European matron and a number of Native nurses. The medical work of the island is under the control of a European medical officer, assisted by several Native trainees. Medical and surgical aid and attendance are given free of charge to all Natives.

During 1938 births registered in Niue numbered 152; deaths, 89.

REVENUE AND EXPENDITURE.

Revenue of the Niue Island Administration for the year ended 31st March, 1939, was £14,468. No grants were received from the New Zealand Government. Customs duties brought in £2,824, copra export duty £295, and stamp sales £2,017. Expenditure aggregated £20,197.

COMMUNICATIONS.

As previously mentioned, Niue lies 600 miles west of Rarotonga, and as a consequence there is no regular intercommunication between the Cook Group and Niue. Great difficulty was experienced in the past in providing a satisfactory subsidized service with New Zealand, but since 1925 a regular service has been maintained by a Government steamer. At the present time a four-weekly service maintained by the “Maui Pomare” from Lyttelton, Wellington, and Apia, meets the requirements of the island.

Radio communication is maintained by regular services with New Zealand and Western Samoa.

TRADE.

Exports and imports for the last ten years are given below. The greater part of the trade is with New Zealand.

Year.Exports to New Zealand.Total Exports.Imports from New Zealand.Total Imports.
 ££££
1,92913,44922,20614,68819,107
1,93013,32315,87714,86318,630
1,9315,1867,1918,95811,507
1,93210,82013,98711,56814,756
1,93310,22511,54210,40013,123
1,93411,34212,34111,88813,372
1,93510,01012,07613,38015,288
1,93615,91522,99222,28024,662
1,93712,46923,32126,14229,309
1,93811,47915,04514,08016,380

The principal export commodities are bananas and copra. Other items include fancy baskets, hats, and kumaras. With a view to improving the marketing of bananas in New Zealand, grading and packing for export are now done under the control and supervision of the Resident Commissioner and his inspectors. The export of fruit from Niue was hampered until 1925 by the difficulty and irregularity of steamer communication with New Zealand.

Exports of principal commodities during 1938 were—

 Quantity.Value. £
Bananas18,656 cases6,503
Copra395 tons3,500
Kumaras318 tons3,371
Hats1,043 dozen483
Fancy baskets436 dozen400

WESTERN SAMOA.

HISTORICAL.

Polynesian civilization in Samoa was noteworthy for its development of a distinct social system largely founded on elaborate ceremonial forms and sustained by a numerous titled class. The maintenance of ceremonial lay for the most part in the hands of the large and powerful orator group, which was elective rather than hereditary. Unlike other Polynesian peoples, the Samoans consider themselves to be autochthonous, and have no traditions of the later migrations. This fact is advanced in favour of the theory that Samoa was one of the cradles of the race. As individuals the Samoans are noted for their remarkably fine physique and extreme courteousness.

The first known visit of Europeans to the islands was that of a Dutch expedition, under Jacob Roggeveen, in its voyage around the world in 1721-22. In 1768 De Bougainville called at the islands, and in 1787 La Pérouse, who named them “Navigators' Islands,” a name which the French retain. The first British vessel to pay a visit was H.M.S. “Pandora,” in 1790. Missionaries, who were to play an important part in the development of the country, made their advent in 1830, when two members of the London Missionary Society arrived at Savai'i.

The first formal recognition of “whites” took place some eight years later, when Captain Bethune, of the British Navy, concluded a commercial treaty with the Native chiefs, by which harbour dues were to be paid and security to European interests guaranteed in return. Next year (1839) Lieutenant Charles Wilkes, in command of a United States exploring expedition, completed a similar treaty.

Three nations were to have control of the destinies of the Samoans. Great Britain appointed a Consular Agent in 1847, the United States a Commercial Agent in 1853, and Germany her first representative in 1861. In 1869 one of the frequent internecine wars of the Natives broke out—a war that was to have far-reaching consequences, for the foreign authorities took for the first time direct measures to ensure peace. The trouble arose over rival claimants to the Native chieftainship, and continued, despite several patched-up truces, for some years.

At a conference in Berlin in 1889, an Act (the Final Act of the Berlin Conference on Samoan Affairs) was signed by the representatives of Great Britain, the United States, and Germany declaring the neutrality and independence of the islands, providing for equal rights therein of the nationals of the three signatory Powers and other matters affecting the government of the islands. This arrangement was never free from trouble, and when, on the death of King Malietoa Laupepa in 1898, disturbances again arose over the succession, the kingship was abolished, in accordance with the recommendation of a joint Commission. By the Anglo-German agreement of the 14th December, 1899, accepted by the United States in January, 1900, Great Britain renounced in favour of Germany all rights over Western Samoa, and similarly in favour of the United States all rights over Tutuila and the other islands of Eastern Samoa.

The civil administration maintained by Germany was not without Native dissatisfaction; a revolt in 1909, similar in origin to the former Native kingship disputes, necessitated the summoning of naval reinforcements and the banishment of the leaders. No marked changes in commercial development occurred during German occupation, copra export continuing as the chief activity. One innovation was the indenture of Chinese labourers in 1902 to replace the Melanesian labourers on the copra plantations, the latter having first been introduced in 1867.

On the outbreak of war in 1914 between the United Kingdom and Germany a New Zealand Expeditionary Force took possession of Western Samoa, landing unopposed at Apia on 29th August, and remained in occupation until the establishment of Civil Government under the ægis of the Dominion in May, 1920. Except for the tragedy of the influenza epidemic of 1918, military occupation was uneventful, but that tragedy was a major one and resulted in the deaths of over a fifth of the Native population. Though the Treaty of Versailles was signed in June, 1919, it was not until December, 1920, that the formal granting of the mandate of Western Samoa to New Zealand was made by the League of Nations.

In accordance with the terms of the mandate the aim of the administration has been to improve the social conditions and standards of living of the Native population. As a consequence, emphasis has boon placed on the extension of self-government and the provision of improved health and educational facilities, while Native customs that were considered to be of an impoverishing or retrogressive nature have been discouraged. Difficulties were experienced over a period of years with an influential native organization known as the Mau. These have now disappeared, and the Administration is functioning with complete normality and goodwill.

ADMINISTRATION.

As previously mentioned, Western Samoa is administered by New Zealand under a mandate from the League of Nations. An Administrator appointed by the Governor-General, and responsible to the Minister of External Affairs, has the assistance of a Legislative Council in his control of the Territory. At the present time the Council consists of six official members (excluding the Administrator), two unofficial members elected by the taxable male adult European population, and four nominated Native members. The Administrator, acting with the advice and consent of this Council, is empowered to make Ordinances for the peace, order, and good government of the Territory, subject to disallowance by the Governor-General. A High Court is established, and the Supreme Court of New Zealand is given jurisdiction over Western Samoa—that is to say, there is the right of appeal from the High Court to the Supreme Court.

In addition to being represented on the Legislative Council the Samoans, through the fautua and faipule, possess further channels for bringing their wishes to the notice of the administration. Neither the fautua nor the faipule possess any executive powers, but in matters affecting the Natives act as advisers to the Administrator. The two fautua are nominated as representatives of the two leading, and formerly rival, family lines in Samoa, while the thirty-nine faipule, who comprise the Fono, or Native Advisory Council, are nominated by the Samoans as representatives of local districts. By the appointment of Native village officials, who have been nominated by the villages, a further measure of autonomy is achieved, and at the same time assistance is given to the Administration in the dissemination of official instructions.

GEOGRAPHICAL.

Western Samoa includes the Islands of Upolu, Savai'i, Apolima, and Manono, together with several small islets, lying between the 13th and 15th degrees of south latitude and the 171st and 173rd degrees of longitude west of Greenwich.

The principal islands are Savai'i and Upolu. Savai'i is the larger of the two with a length of 48 miles, a breadth of 25 miles, and a total area of 703 square miles. The island is mountainous, rising to a height of over 6,000 ft. Upolu, which extends some 45 miles in length and 13 in breadth, measures about 430 square miles in area, and rises to a height of over 3,600 ft. Of the two, Upolu is the more fertile and populous, and contains the port and capital of Apia. The climate of the group is mild and equable, with an average temperature in the vicinity of 80° F., and an average rainfall of about 120 in.

POPULATION.

A census of population was taken by the Administration on the night of 4th November, 1936. The following table shows the summarized results, together with corresponding figures for the 1926 census:—

1926.1936.
Europeans and European-Samoans2,2703,075
Native Samoans (including other island races)36,88052,266
Chinese—  
Contract labourers862502
Others6220
Melanesian or Polynesian contract labourers15583
    Totals40,22955,946

Following are statistics of the age-constitution of the Native Samoan population as disclosed by the 1936 census:—

Matai (heads of families ranking as chiefs or orators, usually over thirty-five years of age)3,100
Taulele'a (untitled men, of any age over fourteen years)10,149
Tamaiti (boys, two to fourteen years)11,534
Tama meamea (infant boys, under two years)1,685
Total, males26,468
Fafine (all women who have been married, and all other women over twenty-five years of age)11,273
Teine muli (unmarried females, fifteen to twenty-five years)2,707
Teineiti (girls, two to fourteen years)10,457
Teine meamea (infant girls, under two years)1,361
Total, females25,798
Total of Samoan population, 4th November, 193652,266

Statistics of total (European and Samoan) population on 31st March, 1939, compiled by the Administration are as follows: Males, 30,416; females, 28,890; total, 59,306.

HEALTH AND HOSPITALS.

The Samoa Health Ordinance, 1921, is on the lines of the New Zealand Health Act, 1920, but remodelled to suit local conditions. A Government hospital is maintained at Apia, district hospitals have been established at Tuasivi (Savai'i) and Aleipata (Upolu), and there are five dispensaries in out-districts and at mission-stations. The health service staff at 31st March, 1939, consisted of 19 Europeans, three of whom were Medical Officers, and 106 Samoans, the latter including ten medical practitioners.

Of the more important tropical diseases, only three are prevalent in Western Samoa—viz., ankylostomiasis (or hookworm), frambœsia (yaws), and filariasis (elephantiasis). Every effort has been made to stamp out these diseases, particularly hookworm and yaws, and systematic campaigns to this end have been in progress since 1923, resulting in a marked improvement in the general health of the Natives. Emphasis has also been laid on infant-welfare, and success in this field is shown by the decline in the infant death-rate. In 1937 a dental clinic was established at Apia, its initial work being the training of Native cadets and the encouragement of preventive dentistry. When the original trainees have qualified an expansion of activities will be possible.

Under the mandate administration the sanitation of Apia has been considerably improved, and the reticulation with a high-pressure water-supply system completed. Water has been piped into several villages from springs in the hills, while in other villages where this is not possible large reinforced-concrete tanks have been erected to receive the rain-water from church buildings.

EDUCATION.

Originally education in Samoa was conducted solely by the missions, and, except where pupils were being trained as pastors, instruction was of a somewhat elementary nature. After the establishment of the mandate the Administration schools undertook more advanced teaching, involving the partial use of the English language. At the same time several of the mission schools made available parallel facilities for pupils other than trainees.

As the education system now operates, three grades of schools are recognized. In Grade I are village schools conducted solely by the missions, and generally under the charge of Native pastors. In Grade II schools more advanced instruction is given, the arrangement being in most instances that the missions supply the buildings and the Administration pays, trains, and supplies the teachers, who are Samoans. In Grade III schools the standard that can be reached is equal to that of a completed primary course, and from the outstanding pupils of these schools the teachers of Grade II schools are recruited. A level of education comparable to Grade III can also be attained in the European primary school, in the resident mission colleges (where pastors are trained), and in one mission day school. For the training of teachers for Grade II schools there is a training-school at Apia, and in 1938 a post-primary school was opened for the purpose of providing secondary education suitable for Samoans who intend to reside in Samoa. Thorough inspection of Administration schools is carried out by the Superintendent of Schools, assisted by five Native Inspectors in Grade II schools. Shorter visits are periodically paid to mission schools.

For the year 1938 there were 311 pastor or Grade I schools operated by the several missions, which, together with 36 other mission schools and colleges, had an attendance of 17,820, these pupils being taught by 43 European teachers, 87 Native teachers, and 295 pastor teachers.

For Administration schools the figures wore as follows:—

School.Number.School Population.Teaching Staff.
Grade II809,238201
Grade III41,22943
Teachers' Training-school1501
European school150016
Post-primary school1261

REVENUE AND EXPENDITURE.

The revenue for the financial year ended on 31st March, 1939, was £123,803, as compared with £139,450 in 1937-38. Following are the principal sources of revenue:—

 1937-38.1938-39.
 ££
Import duties59,15640,835
Export duties (less refunds)26,98323,333
Taxes8,7139,704
Hospital fees, &c.12,22412,750
Postal and radio receipts9,7588,267
Public works receipts5,4055,890
Other revenue17,21123,024
    Total revenue139,450123,803

The figures of revenue and expenditure for each of the last five years are—

Year ended 31st March,Revenue.Expenditure.
 ££
1,93578,80876,505
1,936111,867100,736
1,937117,909116,613
1,938139,450139,070
1,939123,803119,233

The public debt of the Territory at 31st March, 1939, was £107,340. The money has been provided by the New Zealand Government, a further £25,000 having been donated as a gift.

The staff employed by the Administration at 31st March, 1939, numbered 638, of whom 63 were Europeans, 87 of part Samoan blood, and 488 Native Samoans, the great majority of the Native Samoans being employed in the education and health services. There were, in addition to the foregoing. 236 Native Samoan district and village officials.

TRADE

The exports and imports of Western Samoa for each of the last ten years are—

Year.Exports.Imports.Year.Exports.Imports.
 ££ ££
1,929293,938288,8491,934128,11792,784
1,930284,515275,3551,935189,298137,757
1,931194,447164,9501,936263,255167,020
1,932183,028150,9021,937352,436267,868
1,933173,837150,8561,938248,605196,272

The principal item of export is copra, exports of which in 1938 totalled 11,241 tons, of a value of £103,529. Cocoa-beans of a value of £59,699, representing 1,647 tons; bananas, £77,143 (205,715 cases); and rubber, £3,293 (49 tons); constitute the only other items of any importance.

Of the exports in 1938, £244,760 was the produce of Western Samoa, the remaining £3,845 being re-exports. Total exports in 1938 included £84,021 to New Zealand. £85,647 to the United Kingdom, £25,326 to the United States, and £42,792 to the Continent of Europe (exact destination unknown). The imports in 1938 came principally from New Zealand (£58,815), the United Kingdom (£29,897), Australia (£28,141), the United States (£19,480), Canada (£16,432), Japan (£14,647), Netherlands East Indies (£6,029), Burma (£4,811), Fiji (£4,628), and India (£4,524).

The trade turnover for 1938 shows a total of £444,877, as compared with £620,304 for the previous calendar year, a decrease of 28 per cent. The substantial gain made in total trade during 1937 was not maintained in 1938, though the 1938 figure, due to higher imports, remained in excess of that for 1936. Lowered prices for copra and cocoa were responsible for the decline in exports, there being a drop from 1937 of £96,218 in the value of copra and of £11,439 in cocoa. In both quantity and value exports of bananas established a new record.

In addition to a scale of import duties, there are export duties, of which the chief are: Copra (£1 10s. per ton), cocoa-beans (£2 per ton), and bananas (2s. 6d. per “Fiji” case, or 2s. per “citrus” case). The, net port duty collected in 1938 was £43,797, export duties collected totalling £21,533 (£47,288 gross, less refunds £25,755).

Vessels entered inwards at the Port of Apia during 1938 numbered 105, and represented an aggregate tonnage of 126,940. The tonnage of cargo brought by these vessels was 14,709, while cargo entered outwards totalled 29,726 tons.

TOKELAU OR UNION GROUP.

HISTORY AND ADMINISTRATION*.

Possessing neither legends of their origin nor hereditary chieftainships the history of the Tokelauans is somewhat obscure, but their physical characteristics and their language leave no doubt as to their Polynesian source. European discovery of the Islands was made by Commodore Byron in 1765, and the conversion of the Natives to Christianity took place in 1859. The population of the Group suffered severely from the depredations of the Peruvian slavers in the “sixties,” while European diseases subsequently took further toll. In June, 1889, the islands were declared a British protectorate, and, following representations from the Native inhabitants, the islands were ceded by the Native chiefs to Great Britain in 1916, from which year up to 1925 they formed part of the Gilbert and Ellice Islands Colony. They were transferred to the jurisdiction of New Zealand as from the 11th February, 1926, and are now administered by the Administrator of Western Samoa on behalf of the New Zealand Government. The Secretary of Native Affairs in Western Samoa is District Officer for the Tokelau Islands, the latter place having no local European officials or residents. Jurisdiction is exercised by the local chiefs with the assistance of Native Councils, while education is administered by the missions, which maintain Native teachers on the islands.

GEOGRAPHICAL.

Situated between 8° and 10° of south latitude and between 170° and 173° of west longitude, the Group consists of three typical coral atolls—Atafu, Nukunono, and Fakaofo—the formation in each case being a string of islets enclosing a reef-bound lagoon. The maximum width of any of the islets does not exceed 300 yards, while the total area of all the islets is 2,550 acres.

GENERAL.

A census of population in the Group was taken by the Western Samoan Administration on the night of 4th November, 1936. The total population was 1,170, as compared with 1,033 at the 1926 census. Figures for the three islands are as follows (1926 totals in parentheses): Fakaofo, 508 (444); Atafu, 378 (360); Nukunono, 284 (229). In 1939 the population was 1,191.

The only exportable product of the islands is copra. The total amount of copra available for export in a normal year is estimated to be 365 tons—viz., 65 from Atafu, 210 from Nukunono, and 90 from Fakaofo. Since 1923 Apia, Samoa, which is 270 miles distant, has been the port of entry for the Group.

There is a wireless station on each of the three islands.

NAURU.

For much of the information contained in the following paragraphs the Census and Statistics Department is indebted to “Ocean Island and Nauru,” by Sir A. F. Ellis, Kt., C.M.G., F.R.G.S.

HISTORICAL.

Since 1899 the history of Nauru, or Pleasant Island, has been that of its rich phosphate deposits. Discovered by Captain Fern of the American whaling-ship “Hunter” in 1789, it was, until annexed by the Germans in 1888, the haunt of beachcombers. In 1899 an accidental discovery was made in Sydney, from a geological specimen, of the presence of phosphatic rock on the island. This discovery, made by an official of the Pacific Islands Company (later the Pacific Phosphate Company), led to a prospecting party being sent to Nauru in May of the following year, with the result that extensive deposits were discovered.

From 1900 to 1906 the company, whilst working the deposits of the neighbouring Ocean Island, negotiated with German interests for the working of the Nauru deposits. In June, 1906, it was able to commence operations with a mixed staff of British and Germans. During 1907, 11,630 tons of phosphate were quarried and during the period 1909-13 the output was 630,656 tons, an average of 126,131 tons per annum.

Shortly after the outbreak of war in 1914 the island passed into British hands. It was surrendered to H.M.A.S. “Melbourne” on the 9th September, 1914, and was included with the German New Guinea possessions in the capitulation of Herbertshohe. The island was garrisoned with Australian troops on the 6th November. 1914, and a Civil administration was established on the 1st January, 1915. A mandate for the administration of the island was conferred by the Allied and Associated Powers upon the British Empire, to come into operation at the same date as the Treaty of Peace with Germany, and this mandate is held jointly by the Imperial Government, the Government of Australia, and the New Zealand Government. An agreement between the three parties to the mandate was drawn up and completed on the 2nd July, 1919. The administrative control of the island is vested in an Administrator, whoso term of appointment is five years, the four successive administrators to date having been appointed by the Commonwealth Government.

GEOGRAPHICAL.

Nauru Island is barely 1/3 of a degree below the equator and lies 166° 56′ east of Greenwich. It is an elevated island about three miles and a half long and two miles and a half wide, with a circumference of twelve miles and an area of 5,396 acres. With the exception of a narrow coastal belt favourable for the growth of coconuts, and of a brackish lagoon, the island consists of phosphate deposits overlying a bed of coralliferous limestone. The island is completely surrounded by a coral reef, and beyond the reef the sea-bed slopes sharply downwards at an angle of 45°. These two latter factors, together with the presence of the strong equatorial current of two knots, materially affect the shipping facilities of the island. The fact that the island lies in the latitude of the easterly trade winds, which blow from nine to ten months of the year, is also significant, since it explains the comparative absence of rainfall, a condition necessary for the existence of phosphate deposits.

The origin of the deposits on Nauru Island, as well as those on Ocean Island, is a matter of conjecture. The deposits do not appear to be simple guano, and some authorities consider them to be of a marine sedimentary origin raised from the sea-bed and subjected to weathering.

From the point of view of phosphate manufacture the deposits are of a very high grade, exports averaging 85.4 per cent. tricalcic phosphate and 3.4 per cent. calcium carbonate. Owing to the uneven nature of the outcrops of coralliferous limestone the extent of the deposits cannot be measured accurately, but it is estimated that there are between fifty and ninety million tons of phosphatic rock available.

DEVELOPMENT.

For £3,500,000 the Governments of Great Britain, Australia, and New Zealand purchased from the Pacific Phosphate Company both the concession for working the Nauru deposits and the company's interests in Ocean Island. The rights under the concession, which had been obtained by the company from the German interests, were vested in the British Phosphate Commission, and in accordance with the Nauru agreement of 2nd July, 1919, the Commission succeeded the company on 30th June, 1920.

The agreement provides for the allocation of the annual output of phosphate among the three Governments in the following proportions, which coincide with the proportion of capital supplied by each towards the undertaking: Great Britain, 42 per cent.; Australia, 42 per cent.; and New Zealand, 16 per cent. Any portion of its share not required by any Government may be disposed of either to the other Governments pro rata, or (if they do not require it) to other countries. The partner countries receive interest at 6 per cent. on their capital invested, and redemption of capital within fifty years is provided for by a sinking fund. The Natives are paid £40 per acre (prior to 1st July, 1927, this was £20) for all phosphate-bearing lands, with an annual rental of £3 per acre for all non-phosphate lands leased, and are compensated for trees destroyed. A royalty of 7⅞d. (prior to 1st July, 1932, 7½d.) per ton of phosphate shipped is paid, 4⅜d. going to the Native landowner, 1½d. being used by the Administrator solely for the benefit of the Nauruan people, and the remaining 2d. held in trust by the Administrator for the benefit of the landowner.

Nauru, in conjunction with Ocean Island, presents a novel example of large-scale extractive processing in isolated tropical conditions. Complete mechanization of all stages of production enables the phosphate to be handled with the maximum speed and minimum cost. From quarrying to loading, through the crushing and drying processes, it is carried by cableways, railways, and electric belt-conveyors. The method of loading vessels at Nauru is unique and has been evolved to suit the local conditions. Owing to the geophysical structure of the sea-bed the construction of either a harbour or a dock was found impracticable; so, in 1930, a cantilever conveyor was built. On the outer edge of the coral reef massive pillars were constructed to which were fixed two large swinging cantilever arms. With a length of 172 ft. these arms are able to reach out to ships moored beyond the reef, and with electric belt-conveyors running out on both arms the plant is able to load both the fore and after holds of a vessel simultaneously at the rate of 1,000 tons per hour. Owing to the great depth of the sea-bed and the proximity of the reef the mooring system for vessels using the cantilever is both elaborate and expensive. Unfortunately, the method of loading is only a fine weather one, and in uncertain weather conditions lightering has to be reverted to.

Besides controlling the extensive mechanized plant, comprising electric-power stations, refrigeration, water-condensers, reservoirs, foundries, electric dust-precipitators, &c., the Commission also owns and operates four vessels especially built for the carrying of phosphate, and fitted with special apparatus for the servicing of the mooring buoys and equipment. Shipment operations are also greatly expedited by a radio-telephone system enabling prompt consultations with Ocean Island as well as with the Commission's vessels. This service operates in addition to the radio-telegraph station under the control of the Administration.

The shipments of phosphate from both Nauru and Ocean Islands, with deliveries to New Zealand, during each of the five years ended June, 1939, have been as follows:—

Year ended 30th June,Exports.Shipments to New Zealand.
Nauru Island.Ocean Island.Total Shipments.Quantity.Per Cent. of Total.
 Tons.Tons.Tons.Tons. 
1,935457,900237,982695,882214,62130.8
1,936506,600319,779826,379192,87923.3
1,937577,600429,0001,006,600243,40024.2
1,938836,250329,8501,166,100290,30024.9
1,939924,250300,2671,224,517293,04723.9

At the present time Australia and New Zealand absorb nearly the whole output, leaving very little for export to other countries. The distribution during 1938-39 was as follows: Australia, 818,020 tons; New Zealand, 293,047 tons; United Kingdom, 61,500 tons; and other countries, 51,590 tons.

The New Zealand Government receives from the British Phosphate Commission an annual contribution of £35,849 towards interest on and amortization of loan-money raised to meet the Dominion's share of the purchase-money of the Pacific Phosphate Company's rights. The indebtedness of the New Zealand Government on account of Nauru and Ocean Islands, originally £600,000, had been reduced to £317,850 at 31st March, 1939.

At the 1st April, 1939, there were 1,651 Native inhabitants, who speak a language akin to that of the Gilbert Islanders. In addition there were 29 Natives of other Pacific Islands, and 1,516 Chinese, who have been introduced for the working of the phosphate-deposits. Europeans numbered 187, the total population being thus 3,383.

Revenue and expenditure and trade of the Nauru Administration for each of the last five years were—

Year.Revenue.
£
Expenditure.
£
Exports.Imports.
£
1,93419,79819,758470,87298,085
1,93523,48720,666474,393157,247
1,93624,90623,989469,607154,940
1,93753,34329,311513,989144,454
1,93829,42830,827546,683272,256

Imports consist almost entirely of food-supplies, and of machinery for the working of the phosphate.

THE ROSS DEPENDENCY.

By Imperial Order in Council of 30th July, 1923, the coasts of the Ross Sea, with the adjacent islands and territories between the 160th degree of east longitude and the 150th degree of west longitude, and south of the 60th degree of south latitude, were proclaimed a British settlement, within the meaning of the British Settlements Act, 1887, under the name of the Ross Dependency, and the dependency was placed under the jurisdiction of the Governor-General of New Zealand.

It is estimated that the mainland area is about 175,000 square miles; but, being completely ice-covered, it is uninhabited. On various occasions bases have been established on the mainland by Antarctic expeditions, which have made extensive explorations within the territory and on contiguous portions of the continent. As yet no economic wealth has been won from the mainland, but the territorial waters, with their large numbers of whales, have been the scene of operations for numerous factory whaling-ships. There has been, however, no New Zealand capital invested in these enterprises.

An article on the Ross Dependency, written by Mr. M. J. S. Nestor, of the Lands and Survey Department, will be found in the 1938 number of the Year-Book (pp. 900-903).

WHALING.

Regulations dated the 24th October, 1929, which supersede those of 1st November, 1926, prohibit whaling operations within the boundaries of the Ross Dependency without a license, for which the annual fee payable is £200, and in addition to which the Government requires a royalty of 2s. 6d. per barrel (40 gallons). The owner or master of a vessel engaged in whaling or used as a floating whale-factory is liable to a line not exceeding £1,000 for each day on which operations are carried on without a license. A penalty not exceeding £100 per day is provided for in cases of non-compliance with the terms of the license granted in respect of any vessel used for whaling or as a floating factory, and a similar penalty for failure to equip a floating factory in accordance with the requirements of the regulations, or for failure to convert a whale into commercial products within forty-eight hours after delivery at the factory. Provision is made for the arrest on warrant of any vessel in respect of which an offence against the regulations is committed.

The regulations apply, of course, only to territorial waters, and operations are carried on outside territorial waters by unlicensed expeditions. The great majority of whales are taken outside territorial waters.

Receipts from whaling-industry license fees, &c., have been as follows:—

 ££ 
1926-272,9211933-341,000
1927-287,1771934-35600
1928-2913,9621935-36500
1929-307,8711936-37100
1930-31Dr. 701937-38Nil
1931-326141938-39Nil
1932-33Nil....

The Whaling Industry Act, 1935, gives legislative effect, so far as New Zealand is concerned, to the International Whaling Convention signed at Geneva in 1931. The general principles of the Convention are in the direction of conservation of whales and regulation of the industry.

INTERNATIONAL WHALING STATISTICS.

The reports on International Whaling Statistics—edited by the committee for whaling statistics appointed by the Norwegian Government—give statistics of whaling in various geographical areas of the world.

The total catch of whales during the five years 1933-34 to 1937-38 was as follows:—

Year.Antarctic.Arctic.Africa.North Pacific.Japan.Other Areas.Total.
1933-3426,0875832,3921,0191,77531132,167
1934-3531,8085683,0048552,27474539,254
1935-3630,9917053,7688572,3416,12044,782
1936-3734,5791,8433,9667302,4847,65451,256
1937-3846,0396563,0444831,9702,47254,664

The next table shows the production of whale-oil in the last five years.

Year.Antarctic.Arctic.Africa.Other Whaling Grounds.Total.
 Barrels.Barrels.Barrels.Barrels.Barrels.
1933-342,395,54416,03882,35979,2142,573,155
1934-352,453,99915,341117,950103,9932,691,283
1935-362,436,33821,570135,081278,1282,871,117
1936-372,658,10866,978116,272369,3133,210,671
1937-383,340,33019,25054,352221,0783,635,010

NOTE.—Six barrels of oil are equivalent to 1 ton.

Of the 54,664 whales caught in 1937-38, 15,034 were of the blue species, 29,590 were fin, 5,049 were humpback, 928 were sei, 3,305 were sperm, and 758 were of other or unspecified species.

The whaling expeditions operating during the year consisted of 33 shore stations, 35 floating factories, and 350 catchers.

Norwegian and British whaling operations are by far the most important. Records from 1919 onwards show that Norwegian production was greater until 1931-32. Since then the whaling output from these countries has been approximately upon a level. Oil production during 1937-38 was—Norwegian, 1,169,069 barrels; British, 1,305,624 barrels; other countries, 1,160,317 barrels.

Chapter 48. SECTION XLVIII.—STATISTICAL SUMMARY.

STATISTICAL SUMMARY FOR NEW ZEALAND.

POPULATION AND EXTERNAL MIGRATION (INCLUDING MAORIS).

Year.Population.Mean Population.Year ended 31st March.
At 31st December.At 31st March.Year 31st December.Year ended 31st March.Overseas Passenger Arrivals.*Overseas Passenger Departures.*
* Excluding “through” passengers, and tourists on cruising liners.
1888649,349646,914647,340641,13112,77614,549
1889658,021652,128653,685649,52113,89921,706
1890667,477664,853662,749658,49116,29116,291
1891676,051668,594671,776666,72414,00516,750
1892692,426679,465684,239674,04215,03116,174
1893714,258698,182703,342688,82422,33515,237
1894728,121718,740721,190708,46125,68816,508
1895740,699731,468734,410725,10424,44923,398
1896754,016743,376746,288737,42219,50619,210
1897768,910757,503761,463749,37017,52115,231
1898783,317771,568776,114764,53618,57916,528
1899796,359786,530789,838779,04918,99615,898
1900808,132798,471802,246792,50118,43517,531
1901830,800815,862821,111808,81119,46315,714
1902851,072833,139840,936824,50125,58121,048
1903875,648857,993863,360845,56632,62519,994
1904900,682882,100888,165870,04730,48520,163
1905925,605908,116913,144895,10833,52422,582
1906956,457933,114943,325920,61533,25323,973
1907977,215961,598966,836949,65039,81228,877
19081,008,373985,320992,794973,45937,61829,853
19091,030,6571,016,0631,019,5151,000,69245,37431,226
19101,050,4101,035,2121,040,5341,025,63834,71532,854
19111,075,2501,056,1991,063,8871,045,70637,04934,375
19121,102,4711,081,3441,088,8611,069,82843,09737,205
19131,134,5061,111,5891,118,4881,096,46746,89234,935
19141,145,8381,139,6681,140,1721,125,62841,67231,517
19151,152,6381,150,3861,149,2381,145,02733,37727,254
19161,150,3391,150,2501,149,2251,150,31825,40722,808
19171,147,4481,150,9381,148,8931,149,22520,47020,047
19181,158,1491,154,5591,152,7981,152,74813,71812,214
19191,227,1811,178,4061,192,6651,166,48211,97811,473
19201,257,6111,236,9151,242,3961,207,66026,90023,990
19211,292,8921,267,4981,274,9171,252,20646,09031,908
19221,318,8841,301,2511,305,1261,283,54641,12830,396
19231,343,0211,325,3011,328,1931,311,38234,10828,581
19241,370,4031,347,8531,352,6181,334,02936,25430,487
19251,401,2301,379,4871,384,4281,359,99542,21129,913
19261,429,6691,409,8121,413,7431,392,07342,44930,714
19271,450,3561,438,1321,439,0041,420,83845,68234,018
19281,467,3701,453,8211,456,0751,443,55135,83737,072
19291,486,1341,471,1101,473,4191,460,36334,79934,088
19301,506,8091,489,2031,493,0191,478,02733,83931,454
19311,522,7621,511,7001,514,2151,498,41630,74125,632
19321,534,7351,525,5451,527,0621,517,94017,89121,063
19331,547,1241,538,028*1,539,5901,530,11918,71321,308
19341,558,3731,550,1251,551,5321,542,65119,68722,022
19351,569,6891,560,9921,562,2331,554,29724,90128,051
19361,584,6171,573,9271,575,2311,565,26326,93628,050
19371,601,7581,587,2111,589,9721,578,75731,67032,023
19381,618,3131,604,4791,606,7631,594,27538,73836,352
1939..1,624,714..1,611,36242,64837,684

VITAL STATISTICS.

Year.Numbers.Rates per 1,000 of Mean Population.Deaths under 1 Year per 1,000 Live Births.
Live Births.Marriages.Deaths.Deaths under 1 Year.Live Births.Marriages.Deaths.
188818,9023,6175,7081,33631.225.979.4370.68
188918,4573,6325,7721,45630.175.949.4478.89
189018,2783,7975,9941,43829.446.129.6678.67
189118,2733,8056,5181,66729.016.0410.3591.23
189217,8764,0026,4591,59427.836.2310.0689.17
189318,1874,1156,7671,60027.506.2210.2387.97
189418,5284,1786,9181,50727.286.1510.1981.34
189518,5464,1106,8631,63726.785.949.9188.27
189618,6124,8436,4321,43926.336.859.1077.32
189718,7374,9286,5951,35425.966.839.1472.26
189818,9555,0917,2441,51025.746.919.8479.66
189918,8355,4617,6801,80625.127.2810.2495.89
190019,5465,8607,2001,46925.607.679.4375.16
190120,4916,0957,6341,46326.347.839.8171.40
190220,6556,3948,3751,71225.898.0110.5082.89
190321,8296,7488,5281,77026.618.2310.4081.08
190422,7666,9838,0871,61626.948.269.5770.98
190523,6827,2008,0611,59927.228.289.2767.52
190624,2527,5928,3391,50627.088.489.3162.10
190725,0948,19210,0662,22827.308.9110.9588.79
190825,9408,3399,0431,76127.458.829.5767.89
190926,5248,0948,9591,63427.298.339.2261.60
191025,9848,2369,6391,76026.178.309.7167.73
191126,3548,8259,5341,48425.978.709.3956.31
191227,5089,1499,2141,40926.488.818.8751.22
191327,9358,81310,1191,65326.148.259.4759.17
191428,3389,28010,1481,45625.998.519.3151.38
191527,85010,0289,9651,39425.339.129.0650.05
191628,5098,21310,5961,44625.947.479.6450.72
191728,2396,41710,5281,36025.695.849.5848.16
191825,8606,22716,3641,25223.445.6514.8448.41
191924,4839,51910,8081,10821.428.339.4645.26
192029,92112,17512,1091,51325.0910.2110.1550.57
192128,56710,63510,6821,36623.368.698.7347.82
192229,0069,55610,9771,21523.187.648.7741.89
192327,96710,07011,5111,22521.967.919.0443.80
192428,01410,25910,7671,12721.607.918.3040.23
192528,15310,41911,0261,12521.207.858.3039.96
192628,47310,68011,8191,13221.067.908.7439.76
192727,88110,47811,6131,08020.297.638.4538.74
192827,20010,53711,81198419.577.588.5036.18
192926,74710,96712,31491219.037.808.7634.10
193026,79711,07512,19992418.837.788.5734.48
193126,6229,81712,04785618.456.818.3532.15
193224,8849,89611,68377717.126.818.0431.22
193324,33410,51011,70177016.637.187.9931.64
193424,32211,25612,52778116.517.648.5032.11
193523,96512,18712,21777316.178.238.2532.26
193624,83713,80813,05676916.649.258.7530.96
193726,01414,36413,65881217.299.559.0831.21
193827,24915,32814,75497117.9310.099.7135.63

EDUCATION.

Year.Number of Scholars receivingUniversity Students (excluding affiliated Agricultural Colleges).
Primary Education atSecondary Education at
Public Schools.Registered Private Schools.Native Village Schools.Secondary* (Including Endowed) Schools.District High Schools.Technical* Schools.Registered Private Schools.
* Combined secondary and technical high schools, Instituted in 1931, included with secondary schools.
1888112,68513,8932,5122,120......662
1889115,45613,5162,4622,147......588
1890117,91213,6912,2592,117......596
1891119,52314,1762,2312,205......705
1892122,62014,4672,1332,262......695
1893124,69014,9312,1342,251......680
1894127,30014,6492,4182,454......680
1895129,85614,7042,6752,525......742
1896131,03713,9792,8622,614......677
1897132,19714,5242,8642,709......653
1898131,62114,8572,9722,706......667
1899131,31515,3803,0652,723......766
1900130,72415,6023,1092,792......805
1901131,35115,3973,2732,899662....783
1902132,26215,6673,7423,0721,479....864
1903133,56815,6873,6933,7222,096....862
1904135,47516,4453,7544,0382,330....971
1905137,62316,7383,8634,0602,872....1,153
1906139,30217,2174,1744,2702,594....1,332
1907141,21618,1744,1834,1962,452....1,325
1908147,57516,2444,2174,3272,142699..1,634
1909152,60517,9894,1214,8561,891846..1,846
1910156,59419,0524,2805,1761,9161,253..1,862
1911161,90419,9674,5575,4651,7771,3418311,900
1912166,55320,3504,6945,8311,8151,5268832,228
1913172,51921,2514,6476,1541,8371,6645452,318
1914178,87122,2475,0726,4181,8961,8398502,257
1915183,63122,4775,1916,4882,1021,9559922,039
1916186,35023,6355,1327,0522,1152,1051,0041,985
1917188,75425,6855,1737,5902,1802,3471,2061,977
1918193,34526,3715,0648,3842,2832,7471,3662,226
1919194,58620,9775,1989,0682,1592,9261,4973,060
1920198,46022,1935,5089,1962,1572,7661,4393,822
1921205,95523,9245,82210,0302,1763,3491,6344,123
1922211,08124,8616,16110,7362,6064,2021,9983,958
1923212,46026,0106,18611,6192,8185,0542,1344,202
1924213,76826,3026,31012,0102,9005,3692,4734,236
1925215,06325,9336,38612,5143,1365,1322,5114,442
1926219,01726,7786,59113,6513,2995,7002,7944,653
1927221,15727,3586,62014,1903,5815,7032,9324,878
1928219,95026,5966,67115,0383,8806,0613,4304,802
1929219,16626,9776,97915,4984,0006,1143,6984,623
1930219,23526,4517,07016,1494,2406,9533,8254,801
1931218,68926,7267,50316,3444,9447,3973,6734,869
1932207,48926,4107,31315,9484,4867,1063,5264,912
1933200,81926,4287,34015,7154,5117,1493,5864,806
1934199,91326,6367,58715,9014,3657,1833,6514,721
1935197,52626,8697,87616,1624,5937,3233,9684,818
1936210,38627,7099,17516,5564,0707,4224,2414,967
1937207,87927,9319,64216,8114,3897,8334,6135,010
1938206,22027,6319,83217,7644,9058,1494,6625,219

JUSTICE.

Year.Summary Convictions in Magistrates' Courts.*Total Convictions or Sentences in Superior Courts.Total Distinct Persons sentenced in Superior Courts.Prisoners in Gaol at End of Year (undergoing Sentence).
Number.Rate per 1,000 of Mean Population.Number.Rate per 1,000 of Mean Population.Number.Rate per 1,000 of Mean Population.Number.Rate per 1,000 of Population.
* Excluding Children's Court cases from your 1914 onwards.
188814,47222.363080.482650.416050.93
188914,08221.542760.422280.356110.93
189014,12821.322700.412270.345170.78
189113,34919.872830.422210.334940.73
189213,58319.852410.351950.294330.63
189313,71019.493040.432720.394630.65
189412,93417.933710.513240.454830.66
189513,38318.224070.553590.495310.72
189614,48119.403550.483110.424930.65
189715,32520.133660.483150.416230.81
189816,99121.893910.503860.505330.68
189917,58622.274050.513830.485080.64
190019,24223.994270.533910.495270.65
190120,72425.243610.443540.436610.84
190222,45526.703490.423390.406020.75
190325,18629.173980.463800.446880.83
190425,67223.905270.595190.587010.78
190525,37127.784490.494330.477600.82
190627,67029.334450.474330.468330.87
190730,90131.964900.514810.507910.81
190830,85231.085430.555320.548150.81
190931,15130.555520.545440.538770.85
191032,43531.174950.484940.478430.80
191133,02931.054530.434270.408020.75
191236,19133.244800.444280.398210.75
191339,68535.484460.404090.378340.74
191440,67335.675220.464830.429810.86
191538,44633.455090.444410.389410.82
191634,32429.874480.394010.358340.73
191733,30228.996230.543770.339540.83
191828,42124.656320.553550.311,0050.87
191931,76626.638080.684610.398520.69
192034,74027.961,0110.814590.379960.79
192136,49228.581,4751.166160.481,0440.81
192233,99526.051,4171.096010.461,0520.83
192336,70129.141,6631.256250.471,1410.85
192438,98228.821,3881.035550.411,1970.87
192543,40731.351,4651.065110.371,2840.92
192644,88731.751,5621.105690.401,3880.97
192744,54030.951,7391.215690.401,4831.02
192843,41929.821,3680.944780.331,4350.98
192944,31130.071,3450.914730.321,3420.90
193045,54430.501,5241.025380.361,5231.01
193140,37426.661,6241.076000.401,6141.06
193240,59126.581,7101.126360.421,5220.99
193336,04323.411,5130.985310.341,4100.91
193435,75223.041,2130.784900.321,1990.77
193536,23023.191,1480.734720.301,1120.71
193639,51725.091,1780.754620.299150.58
193742,72626.871,3180.835070.327900.49
193849,65130.901,3220.824880.307770.48

AGRICULTURE.

Season.Wheat for Threshing.Oats for Threshing.
Area.Yield.Yield per Acre.Area.Yield.Yield per Acre.
* Yield probably overstated for these four seasons, due to total being obtained by applying ascertained averages to areas returned by farmers as sown for threshing. Areas returned in these years as intended for threshing would appear, in many cases, to have been eventually utilized for other purposes.
 Acres.Bushels.Bushels.Acres.Bushels.Bushels.
1888-89362,1538,770,24624.22367,22510,977,06529.89
1889-90335,8618,448,50625.15426,07113,673,58432.10
1890-91301,4605,723,61018.99346,2249,947,03628.73
1891-92402,27310,257,73825.50323,50811,009,02034.03
1892-93381,2458,378,21721.98326,5319,893,98930.30
1893-94242,7374,891,69520.15376,64612,753,06832.27
1894-95148,5753,613,03724.32351,85210,221,39329.05
1895-96245,4416,843,76827.88364,78812,263,54033.62
1896-97258,6085,926,52322.92372,59711,232,80330.15
1897-98315,8015,670,01717.95354,8199,738,39127.44
1898-99399,03413,073,41632.76417,32016,511,38839.56
1899-1900269,7498,581,89831.81398,24316,325,83240.99
1900-01206,4656,527,15431.61449,53419,085,83742.45
1901-02163,4624,046,58924.76405,92415,045,23337.06
1902-03194,3557,457,91538.37483,65921,766,70845.00
1903-04230,3467,891,65434.26409,39015,107,23738.57
1904-05258,0159,123,67335.36342,18914,553,61142.53
1905-06222,1836,798,93430.60354,29112,707,98235.86
1906-07206,1855,605,25227.18351,92911,201,78931.83
1907-08193,0315,567,13928.84386,88515,021,86138.82
1908-09252,3918,772,79034.75406,90818,906,78846.46
1909-10311,0008,661,10028.00377,00013,804,00037.00
1910-11322,1678,290,22125.73302,82710,118,91733.41
1911-12215,5287,261,13833.69403,66819,662,668*48.71
1912-13189,8695,179,62627.28386,78613,583,924*35.12
1913-14166,7745,231,70031.37361,74114,740,946*40.75
1914-15229,6006,644,33628.94287,56111,436,301*39.77
1915-16329,2077,108,36021.59212,6887,653,20835.98
1916-17217,7435,051,22723.19177,5245,371,43630.29
1917-18280,9786,807,53624.23156,2024,942,75931.64
1918-19208,0306.567,62931.57172,6806,884,60939.87
1919-20139,6114,559,93432.66179,8006,967,86238.75
1920-21219,9856,872,26231.24147,5595,225,11535.41
1921-22352,91810,565,27529.94170,6556,752,66339.56
1922-23275,7758,395,02330.44143,0905,688,15739.75
1923-24173,8644,174,53724.0163,8421,964,51130.77
1924-25166,9645,447,75832.62147,3875,707,17438.72
1925-26151,6734,617,04130.44102,4854,115,60640.14
1926-27220,0837,952,44236.13117,3264,997,53542.58
1927-28260,9879,541,44436.5688,2233,852,68743.66
1928-29255,3128,832,86434.6073,1013,065,11341.93
1929-30235,9427,239,55630.6867,7223,002,28844.33
1930-31249,0147,579,15330.4487,1523,376,60938.74
1931-32268,7566,582,69824.4968,6902,818,15241.03
1932-33302,53111,054,97236.54116,2065,132,18344.16
1933-34286,2719,036,01731.5678,3433,242,50041.39
1934-35225,3895,933,24526.3252,5161,890,14535.99
1935-36248,6398,859,22335.6377,5023,302,64242.61
1936-37221,7907,168,96332.3274,7723,525,43047.15
1937-38185,9496,042,98132.5057,9172,640,91545.60
1938-39189,2815,564,13629.4054,4222,604,81747.86

LIVE-STOCK.

Year.Horses.Total Cattle.Dairy Cows.Sheep.Pigs.Goats.
* Not enumerated.
1889**189,21415,423,328**
1890***16,116,113**
1891211,040788,919206,90617,865,423222,5539,055
1892***18,570,752**
1893***19,380,369**
1894*885,305*20,230,829**
1895*964,034257,14019,826,604**
1896237,4181,047,901276,21719,138,493239,778*
1897249,8131,138,667300,21919,687,954209,834*
1898252,8341,209,165324,48519,673,725186,027*
1899258,1151,203,024333,53619,348,506193,512*
1900261,9311,222,139355,25619,355,195249,751*
1901266,2451,256,680372,41620,233,099250,975*
1902279,6721,361,784381,49220,342,727224,024*
1903286,9551,460,663428,77318,954,553193,740*
1904298,7141,593,547468,12518,280,806226,591*
1905314,3221,736,850498,24119,130,875255,320*
1906326,5371,810,936517,72020,108,471249,727*
1907342,6081,851,750543,92720,983,772242,273*
1908352,8321,816,299541,36322,449,053241,128*
1909363,2591,773,326536,62923,480,707245,092*
1910***24,269,620**
1911404,2842,020,171633,73323,996,126348,754*
1912***23,750,153**
1913***24,191,810**
1914***24,798,763**
1915***24,901,421**
1916371,3312,417,491750,32324,788,150297,50117,601
1917373,6002,575,230777,43925,270,386283,77018,235
1918378,0502,869,465793,21226,538,302258,69417,730
1919363,1883,035,478826,13525,828,554235,34716,924
1920346,4073,101,945893,45423,919,970266,82914,534
1921337,2593,139,2231,004,66623,285,031349,89217,367
1922332,1053,323,2231,137,05522,222,259384,33317,480
1923330,8183,480,6941,248,64323,081,439400,88917,071
1924330,4303,563,4971,312,58823,775,776414,27118,196
1925326,8303,503,7441,323,43224,547,955440,11518,975
1926314,8673,452,4861,303,85624,904,993472,53421,761
1927303,7133,257,7291,303,22525,649,016520,14326,099
1928307,1603,273,7691,352,39827,133,810586,89824,251
1929298,9863,445,7901,371,06329,051,382556,73234,226
1930297,1953,770,2231,441,41030,841,287487,79339,127
1931295,7434,080,5251,601,63329,792,516476,194*
1932280,9944,072,3831,702,07028,691,788513,416*
1933276,8974,192,0231,845,97227,755,966591,582*
1934273,9064,301,1281,932,51128,649,038660,393*
1935272,9864,293,4991,952,09429,076,754762,755*
1936276,1704,254,0781,951,50730,113,704808,463*
1937277,7994,389,1011,935,52431,305,818802,419*
1938278,1674,506,0821,872,79732,378,774756,466*
1939274,8034,564,9481,853,71331,897,091683,463*

TRADE.

Year.Excluding Specie.*Specie.
Exports.Imports.Exports.Import*.
Total.Per Head.Total.Per Head.

* Figures are in terms of New Zealand currency.

† Specie exports and imports represent face value.

 ££s.d.££s.d.££
18887,403,20611895,430,050879364,119511,850
18899,183,95414105,980,583930157,910328,280
18909,569,31614895,928,89581811242,404331,630
18919,560,85914486,431,10191165,53872,748
18929,490,920131756,742,544917143,931200,512
18938,680,845126106,494,279948304,519417,236
18949,221,550121595,990,1778619,497797,843
18958,518,119111206,115,95386732,105284,176
18969,299,90712937,035,37998721,198101,941
18979,741,2221215107,994,20110100275,77161,022
189810,449,83813938,211,4091011768,11719,191
189911,923,422151118,613,6561018114,913125,977
190013,223,258169810,207,3261214622,903438,770
190112,869,8101513611,353,4161316611,614464,499
190213,635,459164410,958,03813079,518368,685
190314,971,9261761012,075,9591319938,452712,716
190414,738,75016111112,900,030141069,598391,664
190515,642,069172712,481,1781313413,878347,679
190617,992,480191614,303,1701533102,657908,233
190720,061,641205016,539,70717227,316763,154
190816,075,2051631017,247,1621775242,289224,122
190919,636,151195214,817,4621410825,845857,257
191022,152,4732151016,748,2231611127,736303,360
191118,980,18517161018,782,6081713148,305763,271
191221,511,6261915120,576,579181711258,955399,995
191322,810,3632071121,653,6321972176,359634,670
191426,253,925230621,144,2271810117,522711,869
191531,430,822277020,658,72017196318,0901,070,114
191633,281,0572819025,045,4032115105,8801,293,880
191731,517,072278820,742,130181170,475177,135
191828,480,5782414124,131,7922018835,610102,215
191953,907,925454030,309,167258362,150362,531
192046,405,366377061,553,85349101136,58041,975
192144,828,460352342,744,1223398367198,321
192242,725,9493214934,826,07426138300186,487
192345,939,7933411943,363,9833213027,37214,510
192452,509,2233816548,527,60335176103,488..
192555,243,0473918152,425,7573717419,22530,650
192645,268,924320649,811,76335486,65177,800
192748,496,3543314044,782,6663125..280
192855,570,381383344,844,10230160618,10042,164
192954,930,063375748,734,4723316649,00063,505
193044,940,517302044,339,65429140175363,087
193134,950,698231826,498,15117100202,33056,155
193235,609,919236524,646,006162101,355,86155,310
193341,005,9192612825,581,36616124296,032424,704
193447,342,8473010331,339,55220402,283,9001,242,000
193546,538,3812915936,317,26723411521,000381,821
193656,751,940360744,258,8862811145,24536,601
193766,713,3794119256,160,69535653,500318,510
193858,376,283366855,422,1893491031,80531,274
Year.Exports of New Zealand Produce.
Wool.Frozen Meat.*Tallow.
Quantity.Value.Quantity.Value.Quantity.Value.
* Includes exports of chilled beef.
 Lb.£Cwt.£Cwt.£
188883,225,7333,115,008552,298628,800136,460124,950
1889102,227,3543,976,375656,822783,374159,020159,460
1890102,817,0774,150,599898,8941,087,617173,300162,471
1891106,187,1144,129,6861,000,3071,194,724175,580173,257
1892118,180,9124,313,307869,6001,033,377165,220165,513
1893109,719,6843,774,738903,8361,085,167170,060183,588
1894144,295,1544,827,0161,025,2431,194,545199,400204,499
1895116,015,1703,662,1311,134,0971,262,711263,560260,999
1896129,151,6244,391,8481,103,3621,251,993222,540208,821
1897135,835,1174,443,1441,407,9211,566,286310,200259,964
1898149,385,8154,645,8041,551,7731,698,750347,160302,141
1899147,169,4974,324,6271,865,8272,088,856338,620311,649
1900140,706,4864,749,1961,844,8312,123,881367,780368,473
1901146,820,0793,699,1031,857,5472,253,262335,360351,710
1902160,419,0233,354,5632,138,5572,718,763424,060550,131
1903155,128,3814,041,2742,378,6503,197,043396,940517,871
1904144,647,3764,673,8261,912,9792,793,599322,480357,974
1905139,912,7375,381,3331,690,6842,694,432318,942347,888
1906154,384,5686,765,6552,025,5072,877,031378,400455,026
1907171,635,5957,657,2782,354,8083,420,664414,880560,965
1903162,518,4815,332,7812,120,3033,188,515372,520481,335
1909189,683,7036,305,8882,572,6043,601,093484,160648,452
1910204,368,9578,308,4102,654,1963,850,777520,180756,841
1911169,424,8116,491,7072,250,5653,503,400413,120607,257
1912188,361,7907,105,4832,573,2383,909,569470,900684,739
1913186,533,0368,057,6202,578,6934,449,933454,860663,088
1914220,472,8989,318,1143,229,9695,863,062490,300694,348
1915196,570,11410,387,8753,591,2607,794,395535,260780,828
1916185,506,85912,386,0743,326,0457,271,318449,440785,339
1917178,274,48612,175,3662,446,9455,982,404251,980553,016
1918108,724,5757,527,2662,036,9044,957,576328,420847,618
1919274,246,61319,559,5373,822,6839,628,292937,4802,680,006
1920162,327,17611,863,8274,629,28211,673,696540,8201,748,773
1921158,714,8285,221,4794,322,75411,164,345554,240867,298
1922321,525,56211,882,4633,518,0048,387,461529,900750,574
1923217,566,09110,904,6583,043,9109,012,627504,860785,668
1924206,189,91115,267,5443,213,5749,499,877479,760799,230
1925205,726,85617,739,7363,414,20511,174,567500,760895,061
1926213,154,39911,830,1903,034,3568,656,213422,560741,045
1927220,500,72012,961,7443,364,9659,104,621477,500714,441
1928226,804,54416,679,0983,793,82810,309,662514,960804,271
1929234,955,97815,359,2063,336,2009,883,277416,640693,614
1930197,239,6147,664,3624,036,63910,937,382492,560683,571
1931211,718,8685,515,3764,138,8068,892,555465,280413,080
1932238,179,0625,742,8214,645,4808,436,306507,540462,081
1933286,307,4417,422,2665,203,1139,845,627560,400516,063
1934255,796,78312,516,4254,969,44711,886,955553,240480,354
1935222,661,4037,097,1335,206,51412,768,968505,540630,638
1936314,409,40213,293,7065,119,80413,239,414521,900628,310
1937282,339,14819,070,2405,410,91214,689,616518,800647,969
1938271,283,23312,185,4835,373,30815,092,059592,260524,775
Year.Exports of New Zealand Produce.
Butter.Cheese.Gold.
Quantity.Value.Quantity.Value.Quantity.Value.
 Cwt.£Cwt.£Oz.£
188829,995118,25236,68278,918229,608914,309
188937,955146,84026,55867,105197,492785,490
189034,816122,70140,45184,986187,641751,360
189139,430150,25839,77086,675251,1611,007,172
189253,930227,16241,49391,042237,393951,963
189358,149254,64546,20199,626227,502915,921
189460,771251,28055,655115,203221,614887,865
189557,964227,60176,743150,909293,4931,162,181
189671,353281,71671,372130,166263,6941,041,428
189799,002402,60577,683150,517251,647980,204
189896,801403,69068,711135,776280,1751,080,691
1899136,086571,79969,440141,818389,5701,513,180
1900172,583740,620102,849229,111373,6141,439,602
1901201,591882,406104,294238,685455,5581,753,784
1902253,9981,205,80274,746163,539507,8521,951,426
1903285,1061,318,06774,780194,998533,3142,037,832
1904314,3601,380,46084,526185,486520,3231,987,501
1905305,7221,408,55788,562205,171520,4852,093,936
1906320,2251,560,235131,206341,002563,8432,270,904
1907328,4411,615,345236,833662,355508,2102,027,490
1908229,9711,171,182280,798783,419506,3812,004,799
1909321,1081,639,380400,6071,105,390506,3712,006,900
1910356,5351,811,975451,9151,195,373478,2861,896,318
1911302,3871,576,917439,1741,192,057454,8371,815,251
1912378,1172,088,809577,0701,680,393343,1631,345,131
1913372,2582,061,651611,6631,770,297376,1611,459,499
1914434,0672,338,576863,7762,564,125227,954895,367
1915420,1442,700,625817,2582,730,211422,8251,694,553
1916358,6322,632,293949,4163,514,310292,6201,199,212
1917254,3972,031,551885,7433,949,251218,624903,888
1918431,0233,402,223883,4304,087,27811,98742,391
1919345,8183,080,1281,572,3117,790,990320,2071,334,405
1920312,0093,022,3351,222,0506,160,840212,973883,748
1921898,47811,169,5301,368,7868,199,183149,595612,168
19221,120,2009,041,5541,161,1964,686,850131,848540,182
19231,250,14010,689,2001,441,4606,870,397169,512698,583
19241,269,45511,641,6681,594,4867,023,297133,631551,788
19251,245,32410,240,1321,376,7545,800,808114,696472,364
19261,168,0408,695,1881,461,5485,939,359125,777516,207
19271,455,53910,915,2331,492,7925,582,596130,171534,652
19281,449,57011,302,6671,567,2726,693,951118,722489,584
19291,653,80713,228,0271,779,0937,017,463116,848480,212
19301,884,23711,854,0561,812,9816,438,438133,749550,678
19311,988,56610,649,5271,636,3474,461,293140,970581,032
19322,185,54510,639,0531,790,4314,951,268200,6481,092,288
19332,635,24711,648,6991,982,9424,766,351177,2411,281,612
19342,614,51910,042,7761,984,4964,694,459162,4901,320,690
19352,789,29813,616,7401,727,5524,376,512171,2831,441,790
19362,796,14515,317,5761,658,2065,122,438168,0731,398,656
19372,976,08516,986,4771,647,1605,371,878172,3171,435,216
19382,614,54916,520,2261,610,5235,935,061152,4871,296,839
Year.Exports of New Zealand Produce.
Kauri-gum.Phormium Fibre.Timber (sawn and hewn).
Quantity.Value.Quantity.Value.Quantity.Value.
 Tons.£Tons.£Sup. ft.£
18888,482380,9334,04275,26943,474,434177,877
18897,519329,59017,084361,18242,568,600176,608
18907,438378,56321,158381,78942,098,863181,689
18918,388437,05615,809281,51442,824,365182,431
18928,705517,67812,793214,64222,860,55187,581
18938,317510,77512,587219,37526,718,046101,082
18948,338404,5674,67766,25631,901,415116,116
18957,425418,7661,80621,04038,297,905141,892
18967,126431,3232,96832,98534,984,414133,511
18976,641398,0102,76930,67439,326,396154,169
18989,905586,7674,85074,55640,721,632164,723
189911,116607,91910,371184,41150,425,741196,749
190010,159622,29315,906332,18257,517,085232,174
19017,541446,11410,171195,72871,822,369294,699
19027,430450,22320,852534,03149,251,549208,005
19039,357631,10222,652595,68457,097,990240,713
19049,203501,81726,936710,28160,326,992254,021
190510,883561,44427,877696,46775,370,136318,895
19069,154522,48627,779776,10675,528,899304,941
19078,708579,88828,547832,06872,154,417311,862
19085,530372,79817,403396,28884,554,414375,235
19098,250552,69814,318306,97371,599,318337,740
19108,693465,04420,645448,41481,940,062407,658
19117,587395,70717,366300,20986,309,570439,353
19127,908401,30518,641376,26494,454,491490,508
19138,780549,10628,092721,92463,469,105319,055
19148,473497,44419,702455,21483,342,949422,864
19154,575279,13323,220571,62176,797,161383,883
19165,456339,88227,6741,001,72571,503,154381,488
19174,594291,91723,5161,197,39671,338,174408,121
19182,419157,31325,1671,387,76374,932,815556,309
19194,128255,81222,347866,93049,726,670439,935
19206,481556,75618,949647,54569,664,014697,608
19213,901367,1979,643293,77545,902,627503,785
19226,391563,2709,727265,08044,186,848479,447
19236,598596,22210,612284,89747,570,490473,752
19245,261443,57612,982388,88742,928,726472,120
19255,370414,90116,408516,46649,204,676573,882
19264,877332,76517,238526,31140,465,221475,627
19274,674278,63216,189473,22137,147,798425,453
19284,394240,13912,932352,15234,970,773376,967
19294,937267,61012,317340,58839,102,831439,342
19303,818189,6358,009198,21326,676,131300,582
19313,058128,0951,78430,93017,532,304172,633
19322,06862,1373,37542,48827,286,884253,883
19333,08977,9733,82842,77025,829,404237,503
19343,20986,9173,59147,50134,530,279320,527
19352,87279,1133,66153,96839,585,198364,359
19363,23796,1615,707106,94026,993,334265,108
19373,226151,5895,193127,28417,656,988200,855
19382,304103,7774,40980,47214,534,253177,831

INDEBTEDNESS OF GENERAL GOVERNMENT.*

As at 31st March,Amount of Debentures and Stock in Circulation.Gross Indebtedness per Head of Population.Amount of Sinking Funds accrued.Net Indebtedness.Net Indebtedness per Head of Population.
 ££s.d.£££s.d.

* In the debt tables the whole debt is shown (in pounds) at its nominal amount, no adjustment having been made on account of the fact that New Zealand currency is at present at a, discount on sterling and at a slight premium on Australian currency.

† In 1925-26 the sinking funds accrued were, with certain exceptions, transferred to the Public Debt Redemption Fund.

‡ Increase due mainly to floating debt under Banks Indemnity (Exchange) Act, 1932-33, which was paid off in 1934-35.

188938,375,0505816111,390,91536,984,13556143
189038,667,95058321,386,18637,281,7645616
189138,830,35058171,487,04237,343,30855171
189238,713,068561961,037,86237,675,2065590
189339,257,84056471,113,77038,144,07054128
189439,826,4155583951,92438,874,4915419
189540,386,9645543751,93239,635,0325439
189643,050,78057183778,89142,271,88956174
189744,366,61858115814,29443,552,32457911
189844,963,4245856881,90344,081,5215728
189946,938,00659137857,27946,080,72758119
190047,874,45259192944,37546,930,07758156
190149,591,245601581,033,49448,557,75159104
190252,966,447631161,128,81651,837,6316245
190355,899,01965301,357,73954,541,28063114
190457,522,21565431,500,68756,021,52863102
190559,912,000651971,650,71858,261,2826433
190662,191,040661301,661,51960,529,52164174
190764,179,0406614102,042,06862,136,97264124
190866,453,897678111,268,36165,185,5366632
190970,938,534691641,479,22469,459,3106873
191074,890,645726101,503,22573,387,420701710
191181,078,122761531,754,48679,323,6367520
191284,353,91378032,160,60382,193,3107603
191390,060,76381052,603,64287,457,12178137
191499,730,427871023,063,99291,689,8358091
1915100,059,910861973,178,05596,644,4558403
1916109,637,39795643,679,964105,957,4339224
1917129,836,1051121624,263,590125,572,51510921
1918150,840,05513012114,971,605145,868,450126610
1919176,076,260149855,951,056170,125,20414475
1920201,170,7551621297,257,564193,913,191156155
1921206,324,3191621578,763,072197,561,222155174
1922219,054,38516861010,655,394208,241,12116008
1923218,953,3241654211,879,256207,024,04815642
1924221,616,3611648512,974,028208,595,743154153
1925227,814,64716521113,462,839214,287,12815569
1926238,855,478169862,274,262236,581,216167163
1927245,850,8891701902,443,540243,407,34916951
1928251,396,2521721852,635,766248,740,736171111
1929264,191,9831791192,156,561256,652,37117493
1930267,383,3431791102,331,423265,051,920177198
1931276,033,3581821202,313,673273,715,71018114
1932281,942,8001841632,435,117279,507,68318344
1933282,622,9581831522,509,545280,113,41318226
1934302,791,996195682,647,985300,144,011193126
1935280,581,21717914112,657,832277,923,385178010
1936282,561,0981791062,592,458279,968,640177177
1937287,670,2001814102,715,960284,952,179179107
1938290,201,342180175364,668289,833,4881801210
1939303,970,272187110389,166303,579,999186170

REVENUE AND EXPENDITURE OF GENERAL GOVERNMENT.

Year ended 31st March,Consolidated Fund.Public Works Fund.
Receipts.Payments.Receipts.Payments.
From Taxation.From other Sources.Totals.Totals.
 ££££££
18892,031,6582,341,3574,373,0154,226,1121,503,000613,939
18902,090,4052,176,7144,267,1194,256,92183,142482,464
18912,173,9852,322,0434,496,0284,369,5664,262334,756
18922,179,7392,248,7914,428,5304,417,843216,533391,501
18932,339,5112,330,0404,669,5514,324,990215,765462,506
18942,353,2502,339,2134,692,4634,455,116418,323406,797
18952,300,3502,147,5494,447,8994,352,185353,000504,486
18962,335,7602,220,2554,556,0154,370,481162,272575,087
18972,521,9112,276,7974,798,7084,509,981540,275601,343
18982,678,5762,400,6545,079,2304,602,372759,673865,543
18992,707,0992,551,1295,258,2284,858,511935,691916,327
19002,891,1262,808,4925,699,6185,140,1271,062,116993,223
19013,042,8902,864,0265,906,9165,479,7041,401,7881,309,021
19023,113,0793,039,7606,152,8395,914,9152,364,7962,143,252
19033,277,9643,169,4716,447,4356,214,0191,398,9501,514,445
19043,649,6013,480,5167,130,1176,434,2811,875,6141,796,841
19053,754,3793,592,8187,347,1976,635,9021,908,6831,354,158
19063,841,5963,808,5027,650,0987,122,3401,555,7681,811,819
19074,264,5554,214,4018,478,9567,774,9261,918,0812,168,894
19084,645,7544,418,2359,063,9898,213,9651,846,0542,109,882
19094,377,7614,623,4249,001,1858,785,5133,628,2703,363,895
19104,180,5165,058,4019,238,9178,990,9222,093,6972,216,397
19114,837,3225,459,95110,297,2739,343,1063,396,6482,058,691
19125,296,5905,764,57111,061,16110,340,3681,256,4562,340,380
19135,606,8296,127,44211,734,27111,082,0383,300,7292,548,918
19145,918,0346,311,62712,229,66111,825,8643,478,7512,760,798
19155,880,8116,571,13412,451,94512,379,8032,224,4912,737,364
19167,266,9667,240,56414,507,53012,943,1073,187,1542,583,212
191710,549,6547,805,54018,355,19114,058,7701,105,8371,775,513
191812,340,8537,865,36920,206,22215,120,2881,091,1951,401,837
191913,801,6438,550,72922,352,37218,673,5991,240,6801,387,661
192016,251,7699,829,57126,081,34023,781,5242,243,3892,232,815
192122,184,41412,076,54734,260,96128,068,7305,012,1563,658,240
192216,370,51611,756,49128,127,00728,466,8389,792,9166,875,636
192315,594,28811,985,15527,579,44326,263,7603,968,5654,729,679
192416,416,87011,543,50027,960,37026,148,0054,275,9144,658,272
192516,172,30612,470,69428,643,00027,399,2004,833,2805,482,069
192616,978,4967,747,26624,725,76223,570,0835,956,8785,874,313
192716,899,5568,043,55124,943,10724,355,9655,931,1705,505,897
192816,848,7548,275,22625,123,98024,944,9055,464,2255,212,032
192917,832,0335,767,64323,599,67624,176,9289,028,9945,696,161
193019,471,1315,878,73025,349,86125,200,8822,339,3586,237,585
193118,597,4564,471,47523,068,93124,708,0427,356,0506,547,883
193216,188,1716,531,56222,719,73324,860,5525,179,8984,895,861
193315,604,0416,964,48022,568,52122,528,3791,958,3862,277,336
193417,057,6066,435,14323,492,74924,202,0272,363,7752,572,415
193520,176,3455,949,74926,126,09424,499,5953,000,3722,714,210
193621,554,3974,617,97126,172,36825,890,5683,458,1252,863,643
193726,939,3384,207,84931,147,18730,675,1586,743,0406,601,091
193831,662,5064,396,93736,059,44335,248,6215,602,5027,647,246
193932,303,7094,278,33736,582,04635,772,67811,372,55511,145,029

NOTE.—Commencing with 1925-26, railway revenue and expenditure, and with 1928-29, post and telegraph revenue and expenditure, were removed from the transactions of the Consolidated Fund. Revenue of the Consolidated Fund, however, now includes interest In respect of railway and post and telegraph capital liability, while the expenditure for the years 1925-26 to 1928-29 covers payment to the Working Railways Account in respect of losses on non-paying branch lines and Isolated sections. From 1931-32, also, post and telegraph net profits are paid into the Consolidated Fund. Employment promotion taxation receipts (1930-31 to 1933-39) were not paid into the Consolidated Fund.

LOCAL AUTHORITIES.*

Year ended 31st March,Receipts.Payments.Total Gross Indebtedness.
Revenue.Other Receipts.Totals.
From Rates.From other Sources.
* Exclusive of Hospital Boards.
 ££££££
1888433,832795,067511,5941,740,4931,819,7876,015,354
1889445,929676,428316,1391,438,4961,560,6056,164,901
1890460,303707,725206,6881,374,7161,476,5406,316,716
1891463,581662,765236,9021,363,2481,381,3206,427,473
1892488,824693,296214,1241,396,2441,400,4676,550,183
1893508,157709,676340,5381,558,3711,482,5486,750,698
1894551,412681,831623,0381,856,2811,589,1247,253,072
1895581,868683,857328,7981,594,5231,584,5187,422,306
1896592,903738,146269,1451,600,1941,627,0797,547,511
1897598,526765,047246,9191,610,4921,636,7167,675,814
1898644,552790,602304,6451,739,7991,733,0167,783,445
1899685,769820,727385,3681,891,8641,778,5747,995,400
1900714,151848,032372,0281,934,2111,960,0738,149,272
1901734,023919,831825,0392,478,8932,250,5728,785,303
1902800,4711,019,024775,4322,594,9272,528,0929,245,364
1903846,7161,053,582966,0872,866,3852,867,5069,886,676
1904950,1501,206,0691,142,5953,298,8143,230,71210,756,062
19051,019,4311,255,2221,350,6313,625,2843,497,32112,056,736
19061,151,2191,392,1481,326,5973,869,9643,601,50612,873,165
19071,233,0491,579,3911,227,4734,039,9133,897,51513,903,153
19081,356,2571,750,6651,410,9944,517,9164,491,11314,931,351
19091,390,6981,934,1221,440,7464,765,5664,800,71115,920,757
19101,526,3171,934,0342,362,1715,822,5224,898,48217,809,917
19111,592,6012,171,7251,776,9585,541,2845,360,26119,104,571
19121,677,8772,298,9342,425,2586,402,0696,074,37220,763,486
19131,799,2992,531,6862,383,1236,714,1086,537,76922,183,427
19142,005,6382,719,1122,411,5757,136,3256,796,31423,773,429
19152,140,0862,861,2972,595,7067,597,0896,806,56724,538,721
19162,355,1552,967,6452,469,2757,792,0756,920,73626,045,312
19172,534,5393,243,9421,411,4227,189,9036,758,59326,799,586
19182,674,5413,283,7491,250,0477,208,3377,103,07327,653,681
19192,939,6063,452,071942,7807,334,4577,320,27728,074,950
19203,144,2134,486,5823,329,00310,959,79810,883,58630,187,942
19213,549,5905,336,3743,429,66212,315,62612,761,69032,104,957
19223,779,8956,074,7825,486,91215,341,58915,091,87536,745,089
19234,277,7816,243,9517,399,67417,921,40615,695,50743,191,184
19244,445,6276,704,1445,685,10716,834,87816,520,95046,537,833
19254,668,8847,512,0807,613,39919,794,36319,422,83353,353,466
19265,039,6458,333,9217,505,70220,879,26820,915,64559,419,754
19275,311,2608,954,6856,680,17620,946,12121,747,55764,012,247
19285,615,6729,786,2715,867,65121,069,59422,423,16766,404,172
19295,844,4959,583,5766,042,00721,470,07821,300,02469,294,619
19306,010,98710,746,7315,495,42722,253,11522,061,08871,207,539
19315,637,25410,627,3914,432,95620,697,60122,174,52472,686,036
19325,511,8189,682,2514,374,25119,568,32020,087,38172,402,282
19335,237,6888,913,2854,433,29418,584,26718,885,17372,476,056
19345,541,2558,688,4123,821,77918,051,44617,737,79271,969,387
19355,511,4429,167,2873,943,48818,622,21718,744,89171,245,458
19365,585,8559,552,5484,348,53419,486,93719,337,24270,400,176
19375,994,3539,979,4374,252,80320,226,59320,222,71568,559,750
19386,541,35411,005,2934,389,62021,936,26722,051,14768,060,951

LOCAL AUTHORITIES.*—LOAN INDEBTEDNESS. (Exclusive of Inscribed Debt.)

As at 31st March,Counties.Boroughs.Harbour Boards.Electric-power Districts.Other.Totals.
* Exclusive of Hospital Boards.
 ££££££
188814,2822,527,3533,006,900..264,2685,812,803
188923,5232,534,5563,057,118..276,8535,892,050
18908,5052,541,4533,155,600..272,5015,978,059
18918,0102,540,3903,226,000..268,2936,042,693
18929,6602,539,4453,276,300..256,5296,081,934
189311,6602,567,0953,369,410..255,7046,203,869
189411,0102,738,1843,610,450..255,1806,614,824
189510,5102,757,3953,652,350..265,2556,685,510
189610,5102,777,4953,686,959..262,6146,737,578
189710,5102,817,3783,703,561..261,9496,793,398
189811,7102,834,3063,723,380..264,9656,834,361
189910,5002,881,5673,804,187..267,0006,963,254
19006,9002,939,0253,845,881..265,5447,057,350
19016,7143,251,8174,035,331..269,2077,563,069
19026,7143,435,8844,123,631..273,4667,839,695
19036,6143,655,4364,256,481..298,6658,217,196
19046,2144,226,8004,308,851..357,0458,898,910
19057,8004,863,9864,382,551..763,90510,018,242
190615,2285,314,1734,554,151..834,49910,718,051
190731,6785,920,3054,676,551..987,51411,616,048
190837,1386,540,0714,877,676..1,077,44912,532,334
190956,5347,016,9265,052,845..1,177,31713,303,622
191076,8777,687,2095,788,400..1,385,19914,937,685
1911185,6318,399,3276,002,400..1,544,41816,131,776
1912404,0789,148,7716,271,717..1,952,92217,777,488
1913605,3539,981,9746,431,827..2,175,97519,195,129
1914800,51511,061,3436,696,029..2,373,39220,931,279
19151,025,60111,352,8026,990,573..2,389,25321,758,229
19161,162,17012,364,0567,135,895..2,655,01723,317,138
19171,260,30712,918,9907,271,594..2,658,28324,109,174
19181,476,41213,461,9197,387,125..2,697,98125,023,437
19191,653,61913,679,6587,417,488..2,769,78425,520,549
19202,032,96015,295,9587,495,641..2,892,19227,716,751
19212,525,84516,041,3687,650,479147,7503,313,89229,679,334
19223,006,58218,060,3228,250,2721,480,0003,566,12334,363,299
19233,803,33421,596,4658,588,9783,052,3003,808,44040,849,517
19243,997,00922,075,0039,173,4844,740,8654,237,16844,223,529
19254,616,68825,882,8659,750,6606,514,7574,315,89851,080,868
19265,390,00328,025,7009,993,2598,745,7555,025,42057,180,137
19275,992,37530,044,39410,257,78110,113,4005,414,67061,822,620
19286,205,46831,599,32410,476,88310,175,3645,817,39064,274,429
19296,350,94232,244,48110,774,13911,986,7075,860,26267,216,531
19306,533,32231,521,14910,460,69212,636,3518,028,55569,180,069
19316,641,05732,139,38910,509,20713,011,5298,415,82770,717,009
19326,685,90531,683,23810,549,49313,121,9608,437,12170,477,717
19336,614,05631,791,67510,620,44213,031,9308,550,25170,608,354
19346,557,84931,358,64710,496,53313,213,0798,522,06970,148,177
19356,402,88930,992,12910,524,78813,399,0538,185,80069,504,659
19366,228,61430,773,34210,218,67213,484,9888,040,46368,746,079
19376,124,76630,505,61210,152,12812,026,6878,141,18566,950,378
19386,082,79430,542,4319,894,11511,890,0318,077,64266,487,013

TRADING BANKS (AVERAGE OF FOUR QUARTERS).

Year.Assets.Liabilities.
AdvancesCoin and Bullion.Totals (all Assets).Notes in Circulation.Deposits.Totals (all Liabilities).

* Gold coin and bullion, and note-issuing functions, taken over by Reserve Bank (August, 1934).

† As at end of December.

‡ The Reserve Bank assumed the liability for the outstanding notes of the trading banks as from 1st August, 1936. Statistics of the note issue of the Reserve Bank and of net note circulation will be found in the Banking and Currency section of this Year-Book.

 ££££££
188815,041,8972,319,32518,709,444873,04511,155,77812,108,353
188914,272,4812,217,83317,652,915879,44011,528,42412,486,717
189013,996,0862,536,52917,735,259903,01012,368,61013,356,598
189111,448,7452,405,09916,814,518937,30912,796,09813,820,458
189212,128,0652,450,71217,558,168959,94313,587,06214,623,335
189312,688,3032,627,36718,255,534973,89414,433,77715,489,633
189411,897,7402,896,56217,746,421901,52613,927,21714,930,791
189511,600,0803,310,94318,159,781897,91913,544,41514,491,627
189610,972,2263,308,39216,900,199946,36614,490,82715,520,431
189710,020,6403,093,29517,276,7711,009,03814,290,51215,380,248
189810,564,2662,791,08117,013,4041,070,13314,143,22915,299,058
189910,954,4352,675,36117,190,4331,163,75914,591,22315,834,858
190011,343,4112,739,19717,314,5351,299,82515,570,61016,964,582
190112,148,3352,996,34518,422,2741,361,35516,034,84817,490,035
190212,747,7733,201,82418,999,1801,375,78817,231,76818,701,063
190313,435,9933,608,94119,913,5461,450,26719,011,11420,563,879
190414,651,1983,896,19520,893,0961,468,16119,074,96020,643,359
190515,496,3954,006,10821,770,5251,468,97720,545,60122,144,166
190616,649,3294,593,95423,829,9331,574,25422,422,24324,143,008
190718,514,0454,836,71820,584,2391,644,64523,517,11125,334,348
190821,172,8084,840,94229,098,5671,615,10921,821,75323,611,903
190919,078,0324,947,09626,937,2651,577,55821,996,62123,728,326
191018,439,9995,035,76426,398,9271,626,09424,968,76126,742,081
191121,259,7275,195,33329,433,6141,677,84226,765,12228,625,803
191222,907,6565,338,29531,196,4001,714,66725,622,08327,508,348
191322,902,2985,204,26630,708,9321,674,33325,733,18727,591,099
191424,250,2465,712,75132,502,3121,998,38827,640,50729,808,349
191523,638,9706,781,00633,209,4832,846,27531,433,65334,448,270
191624,911,7067,393,91737,015,4864,049,52937,507,91741,977,619
191728,847,7498,072,27944,979,6155,410,95742,930,71348,541,961
191831,711,3508,085,96148,570,1266,266,76845,562,93952,048,732
191931,717,7208,017,15948,615,2097,087,64550,489,44457,861,393
192038,241,9327,728,94256,111,4337,890,41859,405,34167,818,469
192150,607,5417,660,53268,701,2827,569,31949,397,41158,808,439
192244,768,1787,822,56261,779,5707,019,22045,913,39453,868,834
192343,322,2427,900,59459,641,2356,593,06849,039,48256,204,292
192444,537,1617,816,14561,325,8656,587,54649,502,49957,131,235
192545,298,9557,722,91762,128,8086,775,47052,207,20260,219,697
192649,149,2607,797,31965,765,2976,730,42150,135,11458,008,161
192756,032,2037,874,97166,626,6766,510,01848,294,09656,321,397
192846,179,4637,511,83362,819,4856,374,04353,799,22161,850,695
192949,278,1947,051,39165,475,5296,433,91157,609,74665,232,866
193053,657,3976,798,55669,748,0716,255,71756,425,01463,984,419
193152,419,5276,917,89768,557,1205,782,35453,645,01861,463,034
193250,255,6745,957,94469,015,2095,958,26852,851,73660,649,208
193345,705,0445,105,84669,656,7006,205,42957,620,23365,281,375
193441,389,4573,477,248*73,509,1774,844,826*63,417,29969,269,271
193544,666,541767,589*83,008,626765,343*61,474,51165,981,411
193645,918,432720,317*83,865,50165,153,97265,939,649
193749,199,592742,500*85,822,90266,842,69267,842,240
193855,650,065875,825*85,072,32965,038,69066,820,736

POST OFFICE SAVINGS-BANK.

Year.Number of Depositors at End of Year.Total Amount of Deposits during Year.Total Amount of Withdrawals during Year.Excess of Deposits over Withdrawals.Interest Credited to Depositors.Total Amount to Credit of Depositors at End of Year.

* Fifteen months, 1st January, 1920, to 31st March, 1921.

† Excess of withdrawals over deposits.

  £££££
188884,4881,544,7471,387,471157,27678,0802,048,442
188990,7451,515,2821,457,08158,20184,8102,191,452
189097,2081,658,5431,500,437158,10692,3192,441,876
1891104,4671,842,9881,693,515149,473104,0992,695,448
1892112,5281,878,2701,821,34956,921111,3022,863,671
1893122,6842,386,0902,122,522263,568114,7603,241,998
1894129,4232,252,8622,268,624-15,762114,6433,340,880
1895137,6832,794,5072,369,333425,174129,4903,895,543
1896147,7582,881,1532,591,559289,594126,4984,311,635
1897159,3313,187,2192,891,169296,050137,2404,744,925
1898169,9683,279,6113,194,89484,717128,1294,957,771
1899183,0463,644,9803,417,299227,681134,9185,320,371
1900197,4084,170,4293,827,416343,013146,1695,809,552
1901212,4364,611,4564,230,193381,263159,1986,350,013
1902227,4655,069,6194,708,772360,847172,9266,883,787
1903243,6755,661,5935,343,828317,765187,1307,388,682
1904259,1645,836,5405,664,770171,770200,9307,761,382
1905276,0666,625,7445,984,185641,559259,0818,662,023
1906298,7467,907,1556,907,1041,000,051291,1929,953,266
1907319,7739,351,6648,125,1231,226,541343,42411,523,231
1908342,0779,674,0759,417,820256,255379,80812,159,294
1909359,7149,611,1209,499,320111,800395,80412,666,898
1910380,58510,708,9399,695,5151,013,424424,66814,104,990
1911405,56611,627,36810,662,046965,322472,87515,543,187
1912432,19911,725,18311,449,711275,472511,59916,330,257
1913458,59411,286,70211,041,454245,248555,90817,131,414
1914483,26211,904,32310,603,0181,301,305615,31019,048,029
1915509,08513,706,05711,294,9732,411,084707,25222,166,365
1916538,07215,576,40812,957,4202,618,988817,85625,603,209
1917566,35117,106,52914,461,1692,645,360947,82129,196,390
1918590,20518,101,10514,938,8423,162,2631,059,47233,418,125
1919630,78329,758,44725,962,3773,796,0701,178,93538,393,130
1920-21*664,81944,302,85241,162,4863,140,3661,818,53543,352,031
1921-22678,93029,125,99730,236,231-1,110,2341,599,90743,841,704
1922-23690,79026,682,42727,769,263-1,086,8361,605,52544,360,393
1923-24710,15729,598,37229,510,32188,0511,649,97646,098,421
1924-25735,14829,582,89730,413,609- 830,7121,680,92046,948,628
1925-26758,15531,833,62232,602,506- 768,8841,731,57847,911,322
1926-27783,82729,456,38330,149,629- 693,2461,767,42648,985,502
1927-28804,72527,611,06630,584,998-2,973,9321,747,15647,758,726
1928-29828,29627,252,38128,111,940— 859,5591,745,05048,644,217
1929-30852,75728,561,85429,575,994-1,014,1401,806,41449,436,491
1930-31878,04324,531,56928,063,338-3,531,7691,763,82547,668,547
1931-32877,09019,463,98525,488,081-6,024,0961,611,04843,255,499
1932-33797,09716,933,17619,635,928-2,702,7521,475,87442,028,621
1933-34798,26219,428,85317,818,1721,610,6811,231,08944,870,391
1934-35817,61724,179,53720,946,5623,232,9751,320,34849,423,714
1935-36840,67125,619,77523,533,5962,086,1791,406,45952,916,352
1936-37880,85730,676,96927,042,0033,634,9661,514,22058,065,538
1937-38920,80533,041,08229,629,0743,412,0081,669,38463,146,930
1938-39946,82230,434,29134,597,708-4,163,4171,726,57460,710,087

POSTAL.

Year.Letters and Letter-cards posted and delivered.Newspapers posted and delivered.Money-orders issued.Postal Notes Issued.Postal Revenue.
Number.Amount.Number.Amount.

* Received and despatched.

† Counted once only.

‡ Year ended 31st March following.

    £ ££
188840,398,020*16,202,849*162,387555,996149,87955,785212,247
188942,301,233*16,721,016*172,076589,545175,02364,244222,978
189043,917,200*17,912,734*176,427602,077189,91568,395229,867
189147,612,864*18,501,912*195,239651,990220,68377,808245,395
189250,610,742*18,557,565*199,438694,847247,90286,176252,494
189352,085,449*19,556,030*210,957750,929285,38999,073253,457
189452,168,336*19,271,590*222,678776,783319,368110,142254,800
189529,586,94912,675,973243,497812,604349,627120,957242,615
189630,442,05313,216,521269,566902,160376,796126,448262,482
189733,030,09514,261,345293,659970,831409,866131,643272,163
189835,654,94715,095,487318,3701,029,241431,449137,085304,947
189938,484,37115,717,388344,6641,118,808461,447144,631325,301
190039,898,47917,045,715369,8341,214,853490,506151,180316,858
190152,567,56018,973,632405,9671,286,508556,316169,527281,097
190257,714,63118,517,276367,2071,277,059616,264187,709302,604
190361,687,45719,696,434396,3121,416,225707,044215,275343,207
190466,501,43421,500,744407,7831,476,887785,347244,719383,243
190571,116,26123,626,362417,4411,541,712875,324270,300410,967
190679,084,56623,716,431439,0201,686,231981,642307,323438,729
1907159,680,65438,862,863441,4871,773,5911,092,631340,436478,388
1908175,440,11141,358,913488,0842,050,6841,222,280383,472544,642
1909186,926,33742,561,641538,7402,307,5931,414,752441,099566,990
1910196,768,96842,305,554569,6572,457,5231,666,959517,315603,150
1911205,450,62743,801,719607,7642,759,3931,821,566566,650613,252
1912214,184,11943,460,016666,4253,231,3501,970,643627,443644,637
1913223,961,20043,572,759690,7453,357,7742,238,842711,518695,136
1914233,901,32043,779,983691,5183,427,5052,314,327714,683698,898
1915242,547,85941,311,535664,8603,471,8182,370,079712,753858,583
1916242,121,36141,807,999669,3553,607,0872,286,463685,708964,793
1917245,796,94540,366,792642,6833,476,6452,166,597628,920976,027
1918242,527,36935,476,212638,5003,649,3712,091,051610,591983,585
1919247,143,18335,498,263690,2914,604,0592,197,520646,4111,068,489
1920259,743,23437,859,247699,6745,276,7762,280,219691,2011,352,677
1921253,767,13138,680,982669,3834,850,8202,377,622723,2541,499,304
1922239,997,08135,635,219659,9434,278,5292,434,506730,2321,378,421
1923252,021,95938,138,697684,9794,390,1592,652,777786,1461,146,588
1924272,311,92541,602,497731,5114,692,9292,846,333840,5591,257,942
1925294,630,76044,717,406766,6894,977,2303,040,722902,1191,320,277
1926298,617,08945,364,274793,1105,033,1273,329,638965,2701,400,886
1927297,478,2447,089,652803,5354,995,0903,614,2171,015,2131,439,587
1928298,548,36448,257,194807,8854,977,5223,575,9841,057,6241,426,936
1929309,162,10348,658,470835,3585,187,5533,816,6351,123,4461,498,684
1930313,148,05847,644,098833,5055,069,6293,907,2881,128,8071,582,550
1931263,633,95239,454,971714,4783,993,0352,884,654952,4441,744,553
1932246,395,13033,410,372648,9513,335,5522,686,648958,3731,393,655
1933261,979,31233,775,389635,6743,112,7292,883,0701,061,9461,294,757
1934275,063,94333,485,832654,6213,209,7133,325,5611,140,6951,384,265
1935288,645,48434,547,494673,0573,374,0293,827,4171,293,9551,466,857
1936292,098,76133,341,059733,9663,794,6483,833,2881,378,3871,628,868
1937302,170,02734,072,279784,4954,312,6293,746,5601,454,7931,822,308
1938316,309,34144,123,5351848,0504,802,2933,835,4001,485,4262,033,488

GOVERNMENT RAILWAYS.

Year ended 31st March.Miles. Open for Traffic.Capital Cost of Open Lines.Train-mileage.Passengers carried, excluding Season-ticket Holders.Goods and Live-stock.*Revenue.Expenditure.

* Equivalent tonnage of live-stock.

† From 1925-28, figures relate to railway operation only.

‡ Capital cost written down by £10,400,000.

  £  Tons.££
18891,77713,472,8372,796,0073,132,8031,954,126997,615647,045
18901,80913,899,9552,868,2033,376,4592,112,7341,095,569682,787
18911,84214,278,5862,894,7763,433,6292,134,0231,121,701700,703
18921,86914,656,6913,010,4893,555,7642,122,9871,115,432706,517
18931,88614,733,1203,002,1743,759,0442,258,2351,181,522732,142
18941,94815,137,0363,113,2313,972,7012,128,7091,172,792735,359
18951,99315,352,6133,221,6203,905,5782,123,3431,150,851732,160
18962,01415,425,5323,307,2264,162,4262,175,9431,183,041751,368
18972,01815,577,3923,409,2184,439,3872,461,127,1,286,158789,054
18982,05515,993,9033,666,4834,672,2642,628,7461,376,008857,191
18992,09016,404,0763,968,7084,955,5532,744,4411,469,665929,737
19002,10416,703,8874,187,8935,468,2843,251,7161,623,8911,052,358
19012,21217,207,3284,620,9716,243,5933,461,3311,727,2361,127,848
19022,23518,170,7225,066,3607,356,1363,667,0391,874,5861,252,237
19032,29119,081,7355,443,3337,575,3903,918,2611,974,0381,343,415
19042,32820,692,9115,685,3998,306,3834,259,2172,180,6411,438,724
19052,37421,701,5726,107,0798,514,1124,185,4672,209,2311,492,900
19062,40722,498,9726,413,5738,826,3824,415,1662,349,7041,621,239
19072,45823,504,2726,755,4549,600,7864,824,5632,624,6001,812,482
19082,47424,365,6477,051,2749,756,7165,070,1762,761,9381,949,759
19092,67427,762,5927,458,23610,457,1445,135,4082,929,5262,114,815
19102,71728,513,4767,889,16611,141,1425,490,0183,249,7902,169,474
19112,75329,606,5468,141,07511,200,6135,863,6743,494,1822,303,272
19122,79830,506,0898,371,68711,891,1345,887,9083,676,5092,465,896
19132,85131,611,2209,016,22413,123,8796,246,1283,971,0022,705,609
19142,85432,355,0879,319,26813,355,8936,019,6334,043,3282,880,323
19152,94534,133,8259,383,42013,565,7726,453,4724,105,4572,920,455
19162,96034,857,8829,356,52214,201,5066,370,9454,548,3562,910,883
19172,96035,378,6649,146,33114,173,1156,239,1734,800,8102,926,864
19182,98336,001,4327,468,64611,408,1565,742,9684,687,7003,042,907
19192,98336,167,6817,477,58311,374,5215,611,7384,988,6323,308,575
19202,99636,390,1157,408,60812,760,8146,000,2795,752,4874,105,067
19213,00937,235,2549,303,39215,315,6406,487,2796,908,5315,636,601
19223,02139,309,0978,717,26514,262,4406,321,3516,643,5916,237,727
19233,02840,275,1618,346,73114,256,6106,618,5886,727,8025,502,497
19243,05341,399,4279,024,50313,817,3786,918,3496,984,2115,403,766
19253,08544,570,7469,083,62312,397,0797,025,3167,112,5245,545,416
19263,13847,608,67610,319,40711,787,7237,246,6927,589,2746,164,570
19273,16449,183,91610,723,86410,274,8787,299,7527,423,4726,158,283
19283,18051,187,37610,838,5949,272,5477,358,3887,343,8456,302,119
19293,28756,568,59811,113,4829,046,9817,613,4457,524,8646,374,579
19303,28757,787,67112,022,0438,466,7797,788,9737,473,9936,848,026
19313,32260,545,15411,281,8987,265,9126,957,7096,781,3886,406,143
19323,31551,424,88310,168,7206,503,5665,824,8115,788,9655,301,653
19333,31551,480,9499,828,8536,870,5705,490,6865,339,0754,833,754
19343,32053,909,34710,163,4747,511,3465,642,1995,628,8354,877,146
19353,32054,089,19010,626,4007,809,0356,023,9605,908,0645,138,588
19363,32054,253,05911,050,3767,963,8246,188,8056,243,5195,523,193
19373,32054,696,43711,868,0838,284,9566,813,2406,903,6046,338,385
19383,32356,065,18712,777,8528,069,0187,516,0497,591,8257,291,785
19393,31958,676,60813,072,6157,813,4367,539,0128,005,0597,663,632

BANKRUPTCY.

Year.Number of Bankruptcies.Debtors' Statements of Assets, excluding Amounts secured to Creditors.Amount realized by Official Assignees.Amount of Debts proved.Amount paid In Dividends and Preferential Claims.
  ££££
1888881252,32298,213571,74179,843
1889724441,874187,048755,16595,032
1890652262,733112,951381,124122,276
1891605141,97184,341302,71272,572
1892507122,05066,497238,95343,662
1893484111,48368,844464,27437,721
1894626187,78585,538310,07870,889
1895485133,60388,684239,56270,018
1896412115,45571,712256,87037,492
189741973,46640,942133,34545,015
189840790,06845,474285,15530,994
189938959,43534,269158,93230,084
190030477,68953,415141,80037,411
190122258,65849,78184,45230,358
190220561,60439,386110,99529,406
190320446,76723,76188,01917,618
190425786,09443,514125,39228,103
1905304100,81347,798146,33228,150
1906347106,37650,761192,92735,448
190735077,69859,849158,66342,459
1908406200,44767,018199,06947,800
1909471204,18771,351259,01744,110
1910393127,63479,100176,00147,796
191134488,59240,009133,51728,757
191231264,39839,965120,32526,825
1913343155,58242,735228,82925,813
1914391174,41064,153199,25133,910
191529492,87663,310153,92642,374
1916304123,44156,416172,77429,223
1917265138,69663,645178,24427,405
191816450,35667,72988,60733,176
191914143,62754,66259,76724,980
192014544,02647,89777,75245,227
1921336362,60178,271558,50438,646
1922690344,861126,145834,35663,009
1923674368,673124,641668,92565,667
1924670279,602118,641703,99574,878
1925653235,37798,648471,02880,187
1926752236,915102,899585,68771,515
1927867331,363108,850679,47372,388
1928806236,264116,613767,32768,763
1929687233,65591,180502,11254,759
1930780471,50283,308827,34568,611
1931848401,649108,8091,042,18763,185
1932661252,34875,657624,89255,940
1933450114,81761,723489,89547,884
193432672,57244,533258,92033,788
193525768,21641,037225,50823,142
193626040,55732,983169,86621,520
193722259,10055,970171,70626,700
1938267118,69864,511230,46330,793

Chapter 49. SECTION XLIX.—OFFICIAL.

GOVERNOR-GENERAL OF NEW ZEALAND.

His Excellency the Right Honourable Viscount Galway, P.O., G.C.M.G., D.S.O., O.B.E.

Official Secretary—D. E. Fouhy, Esq.

Aide-de-Camp—Captain Lord Dormer.

Assistant Secretary—J. H. L. James, Esq.

Honorary Aides-de-Camp—Naval: Captain H. M. Barnes, R.N.; Commander A. B. Fanshawe, R.N. Military: Colonel S. C. P. Nicholls, C.B.E., D.S.O.; Colonel L. M. Inglis, M.C., V.D.; Colonel P. H. Bell, D.S.O.; Colonel O. H. Mead, D.S.O.; Lieut.-Colonel S. G. Scoular. Air: Group-Captain T. M. Wilkes, C.B.E., M.C.; Group-Captain L. M. Isitt.

Honorary Physician—Colonel F. T. Bowerbank, O.B.E., M.D., F.R.C.P. (Edin.).

Honorary Surgeon—Lieut.-Colonel C. T. H. Newton, D.S.O., M.D., F.R.C.S. (Edin.).

His Excellency assumed office on the 12th April, 1935.

A complete list of previous vice-regal representatives will be found in the 1931 issue (pp. 59-60) of the Year-Book.

SUCCESSIVE MINISTRIES AND PREMIERS.

SINCE THE ESTABLISHMENT OF RESPONSIBLE GOVERNMENT IN NEW ZEALAND IN 1856.

Name of Ministry.Name of Premier.Assumed Office.Retired.
1. Bell-SewellHenry Sewell7 May, 185620 May, 1856.
2. FoxWilliam Fox20 May, 18562 June, 1856.
3. StaffordEdward William Stafford2 June, 185612 July, 1861.
4. FoxWilliam Fox12 July, 18616 Aug., 1862.
5. DomettAlfred Domett6 Aug., 186230 Oct., 1863.
6. Whitaker-FoxFrederick Whitaker30 Oct., 186324 Nov., 1864.
7. WeldFrederick Aloysius Weld24 Nov., 186416 Oct., 1865.
8. StaffordEdward William Stafford16 Oct., 136528 June, 1869.
9. FoxWilliam Fox28 June, 186910 Sept., 1872.
10. StaffordEdward William Stafford10 Sept., 187211 Oct., 1872.
11. WaterhouseGeorge Marsden Waterhouse11 Oct., 18723 Mar., 1873.
12. FoxWilliam Fox3 Mar., 18738 April, 1873.
13. VogelJulius Vogel, C.M.G.8 April, 18736 July, 1875.
14. PollenDaniel Pollen, M.L.C.6 July, 187515 Feb., 1876.
15. VogelSir Julius Vogel, K.C.M.G.15 Feb., 18761 Sept., 1876.
16. AtkinsonHarry Albert Atkinson1 Sept., 187613 Sept., 1876.
17. Atkinson (reconstituted)Harry Albert Atkinson13 Sept., 187613 Oct., 1877.
18. GreySir George Grey, K.C.B.15 Oct., 18778 Oct., 1879.
19. HallJohn Hall8 Oct., 187921 April, 1882.
20. WhitakerFrederick Whitaker, M.L.C.21 April, 188225 Sept., 1883.
21. AtkinsonHarry Albert Atkinson25 Sept., 188316 Aug., 1884.
22. Stout-VogelRobert Stout16 Aug., 188428 Aug., 1884.
23. AtkinsonHarry Albert Atkinson28 Aug., 18843 Sept., 1884.
24. Stout-VogelSir Robert Stout, K.C.M.G.3 Sept., 18848 Oct., 1887.
25. AtkinsonSir Harry Albert Atkinson, K.C.M.G.8 Oct., 188724 Jan., 1891.
26. BallanceJohn Ballance24 Jan., 18911 May, 1893.
27. SeddonRt. Hon. Richard John Seddon, P.C.1 May, 189321 June, 1906.
28. Hall-JonesWilliam Hall-Jones21 June, 19066 Aug., 1906.
29. WardRt. Hon. Sir Joseph George Ward, Bart., P.C., K.C.M.G.6 Aug., 190628 Mar., 1912.
30. MackenzieThomas Mackenzie28 Mar., 191210 July, 1912.
31. MasseyRt. Hon. William Ferguson Massey, P.C.10 July, 191212 Aug., 1915.
32. NationalRt. Hon. William Ferguson Massey, P.C.12 Aug., 191525 Aug., 1919.
33. MasseyRt. Hon. William Ferguson Massey, P.C.25 Aug., 191914 May, 1925.
34. BellHon. Sir Francis Henry Dillon Bell, G.C.M.G., K.C.14 May, 192530 May, 1925.
35. CoatesRt. Hon. Joseph Gordon Coates, P.C., M.C.30 May, 192510 Dec, 1928.
36. WardRt. Hon. Sir Joseph George Ward, Bart., P.C., G.C.M.G.10 Dec., 192828 May, 1930.
37. ForbesRt. Hon. George William Forbes, P.C.28 May, 193022 Sept., 1931.
38. CoalitionRt. Hon. George William Forbes, P.C.22 Sept., 19316 Dec., 1935.
39. LabourRt. Hon. Michael Joseph Savage, P.C.6 Dec., 1935..

EXECUTIVE COUNCIL, 1939.

His Excellency the GOVERNOR-GENERAL.

Right Hon. M. J. SAVAGE, P.C., Prime Minister, Minister of External Affairs, Native Minister, Minister for the Cook Islands, and Minister in Charge of Broadcasting, Native Trust, Legislative, Electoral, Audit, and High Commissioner's Departments.

Hon. P. FRASER, Minister of Education, Minister of Health, Minister of Marine, and Minister in Charge of Mental Hospitals and Police Departments, and Inspection of Machinery.

Hon. W. NASH, Minister of Finance, Minister of Customs, Minister of Stamp Duties, Minister of Marketing, Minister of Social Security, and Minister in Charge of Land and Income Tax, Public Service Superannuation, Government Life Insurance, State Fire Insurance, and Census and Statistics Departments.

Hon. D. G. SULLIVAN, Minister of Industries and Commerce, Minister of Railways, Minister of Supply, and Minister in Charge of Scientific and Industrial Research Department.

Hon. H. G. R. MASON, Attorney-General, Minister of Justice, and Minister in Charge of Prisons and Registrar-General's Departments, Public Trust Office, and Patents, Designs, Trade-marks, and Copyright Office.

Hon. H. T. ARMSTRONG, Minister of Immigration, and Minister in Charge of Housing and State Advances.

Hon. R. SEMPLE, Minister of Public Works, Minister of Transport, and Minister in Charge of Roads and Public Buildings.

Hon. W. E. PARRY, Minister of Internal Affairs, and Minister in Charge of National Art Gallery and Dominion Museum, and Government Advertising.

Hon. P. C. WEBB, Minister of Labour, Minister of Mines, and Minister in Charge of Printing and Stationery Department.

Hon. F. JONES, Postmaster-General and Minister of Telegraphs, Minister of Defence, and Minister in Charge of War Pensions.

Hon. W. LEE MARTIN, Minister of Agriculture, and Minister in Charge of Friendly Societies and National Provident Fund Departments.

Hon. F. LANGSTONE, Minister of Lands, Commissioner of State Forests, and Minister in Charge of Valuation Department, Land for Settlements, Scenery Preservation, Discharged Soldiers' Settlement, and Tourist and Health Resorts.

Hon. D. WILSON, M.L.C., Member of the Executive Council without portfolio. Clerk of the Executive Council—C. A. Jeffery, C.M.G.

LABOUR MINISTRY.

(Assumed Office, 6th December, 1935.)

Name and Office.From

* Resigned portfolio, 13th December, 1938.

† Resigned (on election as Speaker of Legislative Council), 18th July, 1939.

Right Hon. Michael Joseph Savage, P.C.— 
Prime Minister6th December, 1935.
Minister of External Affairs6th December, 1935.
Native Minister6th December, 1935.
Minister for the Cook Islands6th December, 1935.
Peter Fraser— 
Minister of Education6th December, 1935.
Minister of Health6th December, 1935.
Minister of Marine6th December, 1935.
Walter Nash— 
Minister of Finance6th December, 1935.
Minister of Customs6th December, 1935.
Minister of Stamp Duties6th December, 1935.
Minister of Marketing25th May, 1936.
Daniel Giles Sullivan— 
Minister of Industries and Commerce6th December, 1935.
Minister of Railways6th December, 1935.
Minister of Supply4th September, 1939.
Henry Greathead Rex Mason— 
Attorney-General6th December, 1935.
Minister of Justice6th December, 1935.
Hubert Thomas Armstrong— 
Minister of Labour6th December, 1935.*
Minister of Immigration6th December, 1935.
Robert Semple— 
Minister of Public Works6th December, 1935.
Minister of Transport6th December, 1935.
William Edward Parry— 
Minister of Internal Affairs6th December, 1935.
Patrick Charles Webb— 
Minister of Mines6th December, 1935.
Minister of Labour13th December, 1938.
Frederick Jones— 
Postmaster-General and Minister of Telegraphs6th December, 1935.
Minister of Defence6th December, 1935.
William Lee Martin— 
Minister of Agriculture6th December, 1935.
Frank Langstone— 
Minister of Lands6th December, 1935.
Commissioner of State Forests6th December, 1935.
Mark Fagan, M.L.C.— 
Member of Executive Council without portfolio6th December, 1935.
David Wilson, M.L.C.— 
Member of Executive Council without portfolio8th November, 1939.

JUDICIARY.

Judges of the Supreme Court and Court of Appeal, December, 1939. — Chief Justice: Right Hon. Sir Michael Myers, P.C., G.C.M.G. Puisne Judges: Hon. Sir H. H. Ostler, Kt.; Hon. A. W. Blair; Hon. D. S. Smith; Hon. Robert Kennedy; Hon. H. F. Johnston; Hon. A. Fair; Hon. J. B. Callan; Hon. E. H. Northcroft.

Judge of Court of Review (Mortgagors and Lessees Rehabilitation Act).—Hon. H. F. Johnston.

Judge of the Arbitration Court.—Hon. P. J. O'Regan.

HONOURS.

Since the preceding issue of the Year-Book the following honours have been conferred by His Majesty the King for services rendered in connection with New Zealand:—

[(a) Signifies conferred in January, 1939; (b) in June, 1939.]

CIVIL DIVISION.

Knight Commander of the British Empire: Professor W. B. Benham (b), Professor T. A. Hunter (b). Knight Bachelor: the Hon. H. H. Ostler (a), C. M. Luke (a). Companion of St. Michael and St. George: A. T. Donnelly (a), T. D. H. Hall (a), H. T. Mitchell (b), A. Tyndall (b). Commander of the British Empire: T. R. Aickin (a), N. E. Hutchings (b), A. W. Mulligan (a). Officer of the British Empire: Miss J. R. Barr (b). Mother Mary Gonzaga (b), S. J. Harrison (a), Colonel W. D. Holgate (b), Dr. A. W. Horsley (a), S. Saltzman (a). Member of the British Empire: Miss T. Butler (b), Miss B. A. Campbell (a), Miss B. E. Carnachan (b), Miss I. M. Corkill (a), Miss N. P. Fitzgibbon (a), Mrs. M. F. Gaby (a), Miss M. B. Law (b), Miss C. McKenny (a), Miss M. J. Martin (a), Miss J. A. Moore (a), F. Reed (b).

MILITARY DIVISION.

Commander of the British Empire: Group-Captain the Hon. R. A. Cochrane (a). Officer of the British Empire: Major S. H. Crump (a), Flight Lieutenant C. E. Kay (b). Member of the British Empire: A. J. Lee (b), Staff Sergeant-Major G. F. MacCulloch (a), Captain D. Nicol (b). Medal of the British Empire (Military Division): Chief Petty Officer Writer A. V. Styles (a).

PARLIAMENTARY SESSIONS.

[For earlier Parliaments and sessions refer to pp. 59-60 of the 1930 edition of the Year-Book. On some occasions there have been long adjournments during sessions, without Parliament being prorogued.]

Parliament.Dates of Opening of Sessions.Dates of Prorogation.Dates of Dissolution.
* Adjourned 6th October, 1939.
Nineteenth24 June, 191515 Oct., 191527 Nov., 1919.
9 May, 19169 Aug., 1916
28 June, 19172 Nov., 1917
9 April, 191817 April, 1918
24 Oct., 191812 Dec., 1918
28 Aug., 19197 Nov., 1919
Twentieth24 June, 192012 Nov., 192015 Nov., 1922.
10 Mar., 1921.24 Mar., 1921
22 Sept., 192113 Feb., 1922
28 June, 19221 Nov., 1922
Twenty-first8 Feb., 192319 Feb., 192314 Oct., 1925.
14 June, 192330 Aug., 1923
26 June, 19247 Nov., 1924
25 June, 19253 Oct., 1925
Twenty-second16 June, 192614 Sept., 192618 Oct., 1928.
23 June, 19277 Dec., 1927
28 June, 192811 Oct., 1928
Twenty-third4 Dec., 192819 Dec., 192812 Nov., 1931.
27 June, 192911 Nov., 1929
26 June, 19305 Nov., 1930
11 Mar., 19317 May, 1931
25 June, 193111 Nov., 1931
Twenty-fourth23 Feb., 193211 May, 19321 Nov., 1935.
22 Sept., 193221 Mar., 1933
21 Sept., 193322 Dec, 1933
28 June, 193416 April, 1935
29 Aug., 193529 Oct., 1935
Twenty-fifth25 Mar., 193631 Oct., 193620 Sept., 1938.
9 Sept., 193716 Mar., 1938
28 June, 193819 Sept., 1938
Twenty-sixth27 June, 1939*

LEGISLATIVE COUNCIL.

ROLL OF MEMBERS OF THE LEGISLATIVE COUNCIL OF NEW ZEALAND, DECEMBER, 1939.

Speaker—Hon. M. FAGAN. Chairman of Committees—Hon. B. MARTIN. Clerk of the Legislative Council—C. M. BOTHAMLEY.

Name.Provincial District.Date of Appointment.
Alexander, Hon. John, C.M.G.Auckland22 June, 1934.
Allen, Colonel the Hon. Sir James, G.C.M.G., K.C.B.Otago1 June, 1934.
Archer, Hon. John KendrickCanterbury22 Sept., 1937.
Bloodworth, Hon. ThomasAuckland22 June, 1934.
Briggs, Hon. MarkWellington8 Mar., 1936.
Brindle, Hon. ThomasWellington9 Mar., 1936.
Burns, Hon. ArchibaldAuckland22 June, 1934.
Campbell, Hon. ArchibaldOtago15 Dec., 1939.
Carncross, Hon. Sir Walter Charles Frederick, Kt.Taranaki17 Mar., 1938.
Carrington, Hon. Carey JohnAuckland17 June, 1933.
Connelly, Hon. MichaelOtago9 Mar., 1936.
Cotter, Hon. James.Auckland9 Mar., 1936.
Davis, Hon. Eliot RypinskiAuckland22 June, 1934.
Doyle, Hon. Thomas FrancisSouthland9 Mar., 1936.
Duncan, Hon. John EdwardAuckland22 Sept., 1937.
Dye, Hon. EdwardAuckland9 Mar., 1936.
Fagan, Hon. MarkWellington11 June, 1937.
Goodall, Hon. JamesWestland9 Mar., 1936.
Hanan, Hon. Josiah AlfredOtago17 June, 1933.
Hayward, Hon. WilliamCanterbury22 June, 1934.
Hunter, Hon. George RobertCanterbury9 Mar., 1936.
Lark, Hon. Frank EdwinAuckland9 Mar., 1936.
McCullough, Hon. John AlexanderCanterbury9 Mar., 1936.
McIntyre, Hon. William HendersonNelson3 Sept., 1935.
McLeod, Hon. JamesTaranaki22 June, 1934.
Martin, Hon. BernardAuckland9 Mar., 1936.
Mawhete, Hon. RangiWellington9 Mar., 1936.
O'Byrne, Hon. Thomas FrancisSouthland22 June, 1934.
O'Flynn, Hon. Francis EdwardCanterbury22 Sept., 1937.
Perry, Hon. WilliamWellington22 June, 1934.
Rhodes, Hon. Sir Robert Heaton, K.C.V.O., K.B.E.Canterbury.22 June, 1934.
Robbins, Hon. Benjamin ConradAuckland9 Mar., 1936.
Statham, Hon. Sir Charles Ernest, Kt.Wellington9 Mar., 1936.
Waite, Hon. FredOtago22 June, 1934.
Ward, Hon. Vincent AubreyWellington22 June, 1934.
Wilson, Hon. DavidWellington22 Sept., 1937.

HOUSE OF REPRESENTATIVES.

ROLL OF MEMBERS OF THE HOUSE OF REPRESENTATIVES, DECEMBER, 1939.

Speaker—Hon. W. E. BARNARD. Chairman of Committees—R. MC K EEN. Clerk of the House: T. D. H. HALL, C.M.G., LL.B.

Name.Electoral District.Name.Electoral District.
For European Electorates. For European Electorates 
Allen, John ManchesterHauraki.  
Anderton. William TheophilusEden.Macdonald, Thomas LachlanMataura,
Armstrong, Hon. HubertChristchurchMacfarlane, Robert MafekingChristchurch
ThomasEast...South.
Atmore, HarryNelson.McKeen, RobertWellington
Barclay. James GillispieMarsden...South.
Barnard, Hon. William EdwardNapier.McMillan, Dr. David GervanDunedin West.
Barrell, Charles AbrahamHamilton.Martin, Hon. William LeeRaglan.
Bodkin, William AlexanderCentral Otago.Mason, Hon. Henry Great-head RexAuckland
Boswell, Charles WallaceBay of Islands...Suburbs.
Broadfoot, Walter JamesWaitomo.Massey, John NormanFranklin.
Burnett, Thomas David.Temuka.Meachen, Edwin PurcellMarlborough.
Carr, Rev. Clyde LeonardTimaru.Moncur, Alexander FrancisRotorua.
Chapman, Charles HenryWellingtonMunro, James WrightDunedin
..North...North
Coates, Right Hon. JosephKaipara.Nash, Hon. WalterHutt.
Gordon, P.C., M.C. Neilson, PeterDunedin
Cobbe, Hon. John GeorgeManawatu. Central.
Coleman, David WilliamGisborne.Nordmeyer, Rev. Arnold HenryOamaru.
Combs, Harry ErnestWellington  
 Suburbs.O'Brien, JamesWestland.
Cotterill, Joseph BernardWanganui.Osborne, Arthur George.Onehunga.
Francis Parry, Hon. William EdwardAuckland
Cullen, Edward LutterellHawke's Bay. Central.
Denham, William Mortimer ClarenceInvercargill.Petrie, Charles RobertOtahuhu.
  Poison, William JohnStratford.
Dickie, Harold GaltPatea.Ransom, Hon. Sir EthelbertPahiatua.
Doidge, Frederick WiddowsonTauranga.Alfred, K.C.M.G. 
  Richards, Arthur ShaptonRoskill.
Endean, William PhillipsRemuera.Roberts, BenjaminWairarapa.
Forbes, Right Hon. GeorgeHurunui.Robertson, JohnMasterton.
William, P.C. Roy, James Alexander McLeanClutha.
Fraser, Hon. PeterWellington  
 Central.Savage, Right Hon.Auckland
Frost, Rev. Frederick LedgerNew Plymouth.Michael Joseph, P.C.West.
  Schramm, Frederick WilliamAuckland
Goosman, William StanleyWaikato. East.
Gordon, Edward Brice KillenRangitikei.Semple, Hon. RobertWellington East.
Grigg, Arthur NattleMid-Canterbury.Skinner, Clarence FarringdonMotueka.
Hamilton, Hon. AdamWallace.Stewart, Mrs. Catherine Campbell SwordWellington
Hargest, Colonel JamesAwarua. West.
Hodgens, JosephPalmerston North.Sullivan, Hon. Daniel GilesAvon.
  Thorn, JamesThames.
Holland, Sidney GeorgeChristchurch North.Webb, Hon. Patrick CharlesBuller.
Hultquist, Axel Gordon.Bay of Plenty.Wilkinson, Charles AndersonEgmont.
Jones, Hon. FrederickDunedin South.  
Jull, Albert EdwardWaipawa.Williams, Charles MorganKaiapoi.
Kidd, David CampbellWaitaki.  
Kyle, Herbert Seton StewartRiccarton.For Maori Electorates. 
  Ngata, Hon. Sir Apirana Turupa, Kt.Eastern Maori.
Langstone, Hon. FrankWaimarino.  
Lee, John AlexanderGrey Lynn.Paikea, Paraire KarakaNorthern
Lowry, Leonard GeorgeOtaki. Maori.
Lyon, William JohnWaitemata.Ratana, Haami TokoumWestern Maori.
McCombs, Terence HendersonLyttelton.Tirikatene, Eruera TihemaSouthern
   Maori.

GOVERNMENT DEPARTMENTS.

LIST OF DEPARTMENTS OF THE NEW ZEALAND GOVERNMENT, WITH TITLES AND NAMES OF PERMANENT HEADS, DECEMBER, 1939.

Department.Permanent Head.
Title.Name.
AgricultureDirector-GeneralA. H. Cockayne, I.S.O.
AirChief of Air Staff and First Air Force Member of the Air BoardGroup-Captain H. W. L. Saunders, M.C., D.F.C., M.M., R.A.F.
 Air SecretaryT. A. Barrow.
ArmyChief of the General StaffMajor-General J. E. Duigan C.B., D.S.O.
 Army SecretaryH. Turner.
AuditController and Auditor-GeneralC. G. Collins.
BroadcastingDirectorJ. Shelley. M.A. (Camb.).
Census and StatisticsGovernment StatisticianJ. W. Butcher.
Crown LawSolicitor-GeneralH. H. Cornish, K.C., M.A., LL.M.
CustomsComptrollerE. D. Good.
EducationDirectorN. T. Lambourne, I.S.O., M.A.
External Affairs and Cook IslandsSecretaryC. A. Berendsen, C.M.G., LL.M.
Government Life InsuranceCommissionerW. E. Arnold.
HealthDirector-GeneralM. H. Watt, C.B.E., M.D., D.P.H.
Industries and Commerce, Tourist and PublicitySecretary for Industries and Commerce, and General Manager for Tourist and PublicityL. J. Schmitt.
Internal AffairsUnder-Secretary and Clerk of WritsJ. W. A. Heenan, C.B.E., LL.B.
Iron and Steel IndustryActing-CommissionerG. A. Pascoe.
 Acting Executive OfficerW. Bromley.
Justice and PrisonsUnder-Secretary of Justice, Controller-General of Prisons, Chief Probation Officer, and Registrar-General of Births, Deaths, and MarriagesB. L. Dallard.
ElectoralChief Electoral OfficerG. G. Hodgkins.
LabourSecretaryH. E. Moston.
Land and Deeds and Stamp DutiesSecretary for Land and Deeds and Commissioner of Stamp DutiesP. G. Pearce.
Land and Income TaxCommissioner of TaxesJ. M. Park.
Lands and SurveyUnder-Secretary and Land Purchase ControllerR. G. Macmorran.
Law DraftingLaw DraftsmanH. D. C. Adams.
 Counsel to Law Drafting OfficeJ. Christie, C.M.G., LL.M.
LegislativeClerk of Parliaments and Clerk of the Legislative CouncilC. M. Bothamley.
 Clerk of House of RepresentativesT. D. H. Hall, C.M.G., LL.B.
MarketingDirector, Export DivisionG. A. Duncan.
 Director, Internal Marketing DivisionF. R. Picot.
MarineSecretaryL. B. Campbell, A.M.I.C.E.
Mental HospitalsDirector-GeneralT. G. Gray, C.M.G., M.B Ch.B. (Aberd.), M.P.C.
MinesUnder-SecretaryA. Tyndall, C.M.G., A.M.I.C.E.
National Art Gallery and Dominion MuseumDirectorW. R. B. Oliver, D.Sc.
National Commercial Broadcasting ServiceControllerC. G. Scrimgeour.
National Provident, and Friendly SocietiesRegistrar and SuperintendentR. Sinel.
NativeUnder-Secretary and Native TrusteeO. N. Campbell.
NavyChief of the Naval Staff and First Naval MemberCommodore H. E. Horan, D.S.C.
 Naval SecretaryPaymaster-Captain N. T. P. Cooper, R.N.
PoliceCommissionerD. J. Cummings.
Post and TelegraphDirector-GeneralJ. G. Young.
Prime Minister'sPermanent HeadC. A. Berendsen, C.M.G., LL.M.
 Chief Private Secretary, Secretary to Cabinet, and Clerk of the Executive CouncilC. A. Jeffery, C.M.G.
Printing and StationeryGovernment PrinterE. V. Paul.
Public Service SuperannuationSecretaryR. S. Wogan.
Public TrustPublic TrusteeE. O. Hales.
Public WorksEngineer-in-Chief and Under-SecretaryJ. Wood, C.M.G., M.I.C.E.
RailwaysGeneral ManagerG. H. Mackley, C.M.G.
Scientific and Industrial ResearchSecretaryE. Marsden, C.B.E., D.Sc.
Dominion LaboratoryDirectorW. Donovan, M.Sc., F.I.C.
Geological SurveyDirectorJ. Henderson, M.A., D.Sc., B.E., A.O.S.M.
MeteorologicalDirectorM. A. F. Barnett, Ph.D.
Social SecurityChairman, Social Security CommissionJ. H. Boyes.
State Advances CorporationJoint Managing Directors.A.D. Park, C.M.G. T. N. Smallwood.
 ManagerG. E. Miller.
Housing Construction BranchDirectorA. Tyndall. C.M.G., A.M.I.C.E.
State Fire and Accident InsuranceGeneral ManagerJ. H. Jerram, I.S.O.
State ForestDirector and SecretaryA. R. Entrican, A.M.I.C.E.
TransportCommissionerG. L. Laurenson, A.M.I.C.E.
TreasurySecretaryB. C. Ashwin, M.Com.
Government Actuary's BranchGovernment ActuaryS. Beckingsale, F.I.A.
ValuationValuer-GeneralW. Stewart.

THE PUBLIC SERVICE.

The Public Service of New Zealand was placed under the Commissioner system of control by the Public Service Act, 1912. The Public Service Commissioner is appointed by the Governor-General, and is responsible only to Parliament.

Except in the case of the Post and Telegraph Department, the Railway Service, the uniformed branches of the Police, Air, Navy, and Army Departments, the Legislative Department, the Judiciary, and the Magistracy, and in a few other instances, public servants are under Commissioner control.

GRADING OF OFFICERS.

The Public Service Act provides for the classification of officers in the following divisions:—

  1. Administrative.—To include such positions as the Governor-General, by notification in the New Zealand Gazette, may declare to belong to this Division. Officers in this division are paid such emoluments as may be provided in the annual appropriations authorized by Parliament.

  2. Professional.—To include all officers whose duties involve special skill or technical knowledge usually acquired only in some profession, and whose offices the Commissioner directs to be included in this Division.

The schedule of salaries payable is as under:—

Class.Subdivision.
1st.2nd.3rd.4th.5th.6th.7th.8th.9th.10th.
* With efficiency bar at £205.
 ££££££££££
Special A765..................
Special B715..................
Special C665..................
I540565590615............
II490515................
III445470................
IV400425................
V355380................
VI280305320335............
VII8095115155180205*230255280305

Subject to good and diligent conduct, an officer in Class VII receives the amounts shown for that class year by year. Promotion beyond Class VII depends upon vacancies occurring in the higher grades, or on the growth in importance of the position held by the officer. In special cases salaries in excess of the maximum of the Division may be paid with the approval of the Commissioner, but in such cases provision must be made in the annual estimates of expenditure and the amount of increase must be appropriated by Parliament.

(c) Clerical.—To include all such officers as the Commissioner may from time to time direct to be included in this Division. Payment of salaries follows the scale as sot out for the Professional Division.

(d) Educational.—To include all officers under the control of the Public Service Commissioner engaged in the Education Service as defined by the Public Service Superannuation Act, 1927. In this division officers are paid salaries in accordance with a fixed amount or scale determined by the Commissioner.

(e) General.—To include all officers not included in the other divisions. The salary rates are on the basis of a fixed amount or on a scale determined by the Commissioner.

The Commissioner is required to grade officers in the above divisions according to fitness and the character and importance of the duties performed by such officers. The Act provides for a general regrading of the whole of the Service every five years.

PROMOTION OF OFFICERS.

The determining factors as regards the promotion of officers are efficiency and suitability. Only where it is not possible to separate officers on these grounds is recourse made to seniority. Relative efficiency of officers is determined by reference to special qualifications and aptitude for the discharge of duties of the office to be filled, together with merit, diligence, and good conduct.

APPOINTMENT OF OFFICERS.

Only natural-born or naturalized British subjects are eligible for appointment to the New Zealand Public Service. All admissions are, in the first instance, on probation, the usual probationary period being two years. An employee may be dispensed with at any time during this period. Entry to cadetships in the Clerical and Professional Divisions is determined by competitive examinations. Vacancies in the other divisions, and in the classes of the Professional and Clerical Divisions above the lowest grade, are advertised in the Public Service Official Circular (a publication circulating throughout all Government Departments), and, where necessary, in the newspapers of the Dominion. The competitive examination for entry to the Clerical and Professional Divisions is now the Public Service Entrance, but where applicants are available with higher qualifications—e.g., University Entrance, School-leaving Certificate, &c.—they are given preference.

PUBLIC SERVICE BOARD OF APPEAL.

Officers have the right of appeal concerning—

  1. The gradings allotted by the Commissioner at the five-yearly regrading of the Service;

  2. Promotions approved by the Commissioner if the appellant had applied for the position and his appointment thereto would have involved his promotion; and

  3. Determinations and penalties imposed by the Commissioner in respect of charges made against officers.

The constitution of the Board of Appeal is as under:—

  1. Two persons, of whom at least one shall be an officer of the Public Service, to be appointed by the Governor-General.

  2. Two persons, being officers of the Public Service, to be elected by officers of the Public Service.

One of the members appointed by the Governor-General is selected by him as Chairman. Only one of the elected members is entitled to sit at the hearing of any appeal.

Decisions of the Board of Appeal are final, and no writ of mandamus, prohibition, or certiorari lies in respect therof to any Court.

The present Public Service Commissioner is Mr. T. Mark.

NUMBER OF PUBLIC SERVANTS.

In Departments under the control of the Public Service Commissioner the number of permanent officers (excluding administrative officers and Native-school teachers) at 31st March, 1938, was 9,917, and the aggregate of annual salaries as at that date was £2,921,778. The numerical strength of the permanent staff at 1st April, 1939, was 10,659. The number of temporary employees, other than workmen, &c., in these Departments as at 1st April, 1939, was 6,587, of whom 1,544 were shorthand-typists or machinists.

Staffs of the Railways, Post and Telegraph, Police, and Defence (military personnel—civil personnel are included above) Departments will be found in appropriate sections elsewhere in this volume, as will also the number of schoolteachers. The number of workmen in the employ of the Public Works Department will be found in the section on Employment and Unemployment, and of miners &c., in State coal-mines in the Mining section. While not exhaustive, the above-mentioned staffs cover substantially the whole of the employees of the State.

HIGH COMMISSIONER'S OFFICE, LONDON.

High Commissioner for New Zealand—W. J. Jordan.

Secretary, and Loan and Stock Agent—F. T. Sandford.

Economic Adviser—R. M. Campbell, M.A., LL.B., Ph.D.

Publicity and Exhibition Officer—H. T. B. Drew.

Stores, Indent, and Trade Officer—S. C. Manhire.

Finance Officer, Accountant, and Loan and Stock Agent—R. M. Sunley.

Audit Officer—R. J. Miller.

Customs Department Representative—F. W. Lawrence.

Dairy Produce Officer—F. H. Taylor.

Liaison Officer, Department of Scientific and Industrial Research—N. L. Wright, F.I.C., D.I.C.

London Representative, Tourist Department—G. D. Lishman.

Offices—New Zealand Government Offices, 415 Strand, London, W.C. 2. Code address—Deputy, Rand, London.

OFFICIAL REPRESENTATIVES IN DOMINIONS AND FOREIGN COUNTRIES.

AUSTRALIA.

New Zealand Tourist and Trade Commissioner in Commonwealth of Australia—14 Martin Place (G.P.O. Box 395F), Sydney; code address—Zealandia, Sydney. District Manager—New Zealand Government Offices, Colonial Mutual Life Building, Collins and Elizabeth Streets (P.O. Box 2136), Melbourne; code address—Aotearoa, Melbourne.

Honorary New Zealand Tourist Agents, Brisbane—Messrs. Dewar and Jones, King's Building, 79 Queen Street, Brisbane.

Honorary New Zealand Tourist Agents, Adelaide—South Australian Intelligence and Tourist Bureau (P.O. Box 664G), Adelaide.

Honorary New Zealand Tourist Agents, Perth—Western Australian Government Tourist Bureau. 62 Barrack Street, Perth. Code address—Tourist.

EUROPE.

New Zealand Trade and Tourist Commissioner in Europe—Shell Buildings, Canters-teen 47, Brussels, Belgium. Code address—Newzeal.

CANADA AND UNITED STATES OF AMERICA

New Zealand Trade and Tourist Commissioner, Toronto—Canada Permanent Building,

320 Bay Street, Toronto, 2. Code address—Maoriland.

New Zealand Tourist and Publicity Representative, Los Angeles—Hollingsworth Buildings, 606 South Hill Street, Los Angeles, California. Code address—Newzeal.

New Zealand Government Agent, Vancouver, B.C.—E. E. Auckland, (P.O. Box 16), Vancouver, B.C.

Official Representative of Customs Department in Canada and United States—T. O. W. Brebner, 44 Whitehall Street, New York. Code address—Depcustoms.

ASIA.

Honorary New Zealand Tourist Agent in India—New Zealand Insurance Co., Ltd., 26 Dalhousie Square West, Calcutta. Code address—Newzico. Also at Rangoon and Bombay.

Honorary New Zealand Government Agent, Colombo—A. R. Hughes, Hong Kong Bank Buildings (P.O. Box 328), Colombo.

Acting Honorary New Zealand Government Agent, North China—C. G. Davis, care of Messrs. Hatch, Carter, and Co., 131 Devonport Road, Tientsin, North China.

Honorary New Zealand Government Agent, Hong Kong—S. T. Williamson, P. and O. Building (P.O. Box 615), Hong Kong. Code address—Williamson, Hong Kong.

Honorary New Zealand Tourist Agent, Singapore—American Express Company, Singapore.

SOUTH AFRICA.

Honorary New Zealand Government Agent, Johannesburg—H. J. Constable (P.O. Box 1909), Johannesburg.

New Zealand Tourist Agent in Africa—Parry, Leon, and Hayhoe, Johannesburg, and at all principal centres in South Africa and Portuguese East Africa.

Honorary New Zealand Government Agent, Durban—H. Middlebrook, 3 Natal Bank Buildings, West Street (P.O. Box 1822), Durban. Code address—Midstream.

PACIFIC ISLANDS.

Honorary New Zealand Tourist Agent, Hawaii: G. T. Armitage, Executive Secretary, Hawaii Tourist Bureau, Honolulu.

Honorary New Zealand Government Agents, Fiji: W. R. Carpenter and Co. (Fiji), Ltd., Suva.

OFFICIAL REPRESENTATIVES OF BRITISH COUNTRIES IN NEW ZEALAND.

United Kingdom.—High Commissioner in New Zealand: Sir H. F. Batterbee, Wellington. H. M. Trade Commissioner: R. Boulter, C.M.G., T. and G. Buildings, Grey Street (P.O. Box 369), Wellington.

Australia.—Trade Commissioner: C. E. Critchley, M.B.E., D.I.C. Building, Wellington.

Canada.—Trade Commissioner: W. F. Bull, Yorkshire House, Shortland Street, Auckland.

FOREIGN CONSULS.

CONSULS OF FOREIGN COUNTRIES RESIDING IN, OR WITH JURISDICTION OVER, NEW ZEALAND, DECEMBER, 1939.

Belgium.—Consul (with jurisdiction over New Zealand): Armand Nihotte, Wellington. Consul: A. M. Ferguson, Auckland. Hon. Consul: Sir C. R. J. Ward, Bart., Christchurch. Vice-Consuls: A. H. Allen (acting Hon. Consul), Dunedin: Sir R. A. Anderson, Kt., C.M.G., Invercargill.

Brazil.—Consul: C. A. L. Treadwell, O.B.E., Wellington. Consular Agent: H. Mitchell, Wellington.

Chile.—Consul-General for Australia and New Zealand: R. Dundas Smith, Sydney.

Consuls: J. M. Wilson, Auckland; William Taylor, Dunedin.

China.—Consul-General: Wang Feng, Wellington. Vice-Consuls: Yue H. Jackson, Wellington; Cheng Fu Pan, Western Samoa.

Czechoslovakia.—Honorary Consuls: Professor R. M. Algie, Auckland; E. J. Hyams, Wellington; D. J. Shea, Christchurch.

Denmark.—Consul-General for Australia and New Zealand: Georg Lyngbye Host, Sydney. Consul for South Island: H. D. Acland, Christchurch. Honorary Consul: Stronach Patorson, Wellington. Vice-Consul: W. Perry, Hokitika. Honorary Vice-Consul: C. G. Macindoe, Auckland.

Finland.—Consul (with jurisdiction over New Zealand): Paavo Simelius, Sydney. Vice-Consuls (honorary): C. E. Tudebope, Auckland; H. J. Buck, Wellington; Vaino Sarelius, Christchurch.

France.—Consul for New Zealand and Western Samoa: G. M. A. Pouquet, Wellington. Consular Agents: G. E. F. Kingscote, Christchurch; S. E. D. Neill, Dunedin; G. W. Hutchison, C.M.G., Auckland.

Greece.—Honorary Consul-General for New Zealand: T. E. Y. Seddon, Wellington. Deputy Consul-General: S. Garland.

Italy.—Consul-General for Australia, New Zealand, Fiji, and New Guinea: Commendatore Nob. A. Grossardi, Melbourne. Consul: B. d'Acunzo, Wellington.

Consular Agents: P. P. J. Amodeo (acting), Christchurch; J. A. Roberts, Dunedin; Adamo Vigna, Runanga (in charge).

Japan.—Consul-General: K. Gunji, Wellington. Honorary Consul: Hon. E. R. Davis, M.L.C., Auckland.

Latvia.—Consul-General (with jurisdiction over New Zealand—including Western Samoa—and its Dependencies): C. Zarine, London. Honorary Consul: N. E. Heath, Auckland.

Netherlands.—Consul-General for Australia and New Zealand: T. Elink Schuurman, Sidney. Vice-Consul (de carriere): M. F. Vigeveno, Wellington. Honorary Consul: C. H. Weston, K.C., D.S.O., Wellington. Honorary Vice-Consuls: George Ritchie, Dunedin; H. H. F. Bauer, Auckland.

Nicaragua.—Consul-General (with jurisdiction in New Zealand): Senor Don Rafael Medina, Sydney.

Norway.—Consul-General for Australia and New Zealand: F. S. Platou, Sydney. Consul (with jurisdiction over Western Samoa also): J. Halligan, Wellington. Vice-Consuls: D. Millar, Auckland (honorary); V. E. Hamilton, Christchurch (honorary); E. E. Broad, Invercargill (honorary); J. H. Enright, Westport; W. F. Edmond, Dunedin (honorary).

Panama.—Honorary Consul: Simon Quiros y Quiros, Auckland.

Peru.—Consul-General for Australia and New Zealand: J. M. Paxton, Sydney. Consul: G. H. Baker, Auckland.

Poland.—Consul-General (with jurisdiction over New Zealand and Western Samoa): Dr. Karol Poznanski, London. Honorary Consul-General: W. Noskowski, Sydney.

Portugal.—Consul: David L. Nathan, Auckland, W. S. Wheeler, Wellington. Honorary Vice-Consul: Alfred Nathan, Auckland. Vice-Consul: J. Elvidge, Dunedin.

Spain.—Consul-General (with jurisdiction over New Zealand and Western Samoa): Senor Don Ricardo Baeza Duran, Sydney. Honorary Vice-Consul: A. K. S. Mackenzie, Wellington.

Sweden.—Consul-General for Australia, New Zealand, and Fiji: C. O. D. von Dardel, Sydney. Vice-Consul (de carriere): M. J. H. Pripp, Wellington. Consul: J. T. Martin, Wellington. Vice-Consuls: J. T. F. Mitchell, Auckland; W. Machin, Christchurch; J. S. Ross, C.M.G., Dunedin.

Switzerland.—Vice-Consul: Dr. W. Schmid, Wellington.

Turkey.—Consul-General for New Zealand and Dependencies and Western Samoa: Inayetullah Cemal Oskaya, London. Honorary Consul: E. G. Cowell, Auckland.

United Stales of America.—Consul-General: Lowell C. Pinkerton, Wellington. Consuls: J. G. Groeninger, Auckland; G. B. Lane, Wellington. Vice-Consuls: L. A. Bachelder (honorary), Auckland; Glion Curtis, jun., Wellington. Consular Agents: H. P. Bridge, Christchurch; H. Reeves, Dunedin.

Uruguay.—Honorary Consul: Senor Roberto Mané Nin, Wellington.

Yugoslavia.—Honorary Consul: John Totich, Auckland.

Appendix A. APPENDICES.

(a) RELIGIOUS PROFESSIONS.

EXCLUDING MAORIS.

Religious Profession.Adherents.
1926 Census.1936 Census.
Church of England553,993600,786
Presbyterian330,731367,855
Roman Catholic (including Catholic undefined)173,364195,261
Methodist121,212121,012
Baptist21,95524,703
Brethren12,92417,086
Salvation Army12,24112,608
Church of Christ7,98411,197
Congregational7,2827,179
Christian Scientist1,3824,617
Seventh Day Adventist2,8733,825
Hebrew2,5912,653
Lutheran2,4832,537
Rationalist5572,066
Agnostic8041,499
Christadelphian1,0791,303
Spiritualist1,2711,201
Freethinker818925
Confucian1,194778
Latter-day Saints (Mormon)599745
British-Israelite4704
Unitarian1,024669
Other16,54624,268
Object to state62,58571,302
Not specified6,97314,705
Totals1,344,4691,491,484

(b) PRINCIPAL EVENTS.

CHRONOLOGICAL LIST OF SOME NOTEWORTHY EVENTS IN THE HISTORY OF NEW ZEALAND.

1642. Discovery of New Zealand by Tasman.

1765. Discovery of Pukapuka Island, in Cook Islands Territory.

1769. Captain Cook's first visit to New Zealand.

1773. Captain Cook discovered Island of Manuae, in Cook Group.

1788. Discovery of Macaulay and Curtis Islands (Kermadec Group), and of Bounty Islands.

1791. Discovery of Snares and Chatham Islands.

1792. First sealing gang left on New Zealand coast.

1793. Discovery of Raoul or Sunday Island (Kermadec Group). Visit of Lieutenant-Governor King, of Norfolk Island, to Doubtless Bay.

1800. Discovery of Antipodes Islands.

1806. Discovery of Auckland Islands.

1807. Defeat of Hongi and the Ngapuhi Tribe.

1810. Discovery of Campbell Island.

1814. Arrival of Rev. Samuel Marsden, and introduction of Christianity. Horses, cattle, sheep, and poultry first brought to New Zealand.

1818. Hongi's and Te Morenga's great expedition to East Cape.

1819-20. Raid on Taranaki and Port Nicholson by Patuone, Nene, and Te Rauparaha.

1820. Hongi's visit to England. First vessel entered Auckland Harbour.

1821. Hongi's capture of Mauinaina and To Totara Pas. Ngati-Toa migration from Kawhia to Otaki.

1822. Fall of Matakitaki Pa, Waikato, to Hongi.

1823. Fall of Mokoia Pa, Rotorua, to Hongi.

1823-28. Jurisdiction of Courts of Justice in New South Wales extended to British subjects in New Zealand.

1824. Fall of Te Whetumatarau Pa to Pomare.

1825. First attempt at colonization, by an expedition under Captain Herd. Great defeat of Ngati-Whatau by Hongi.

1827. Hongi's forces destroyed mission station at Whangaroa.

1828. Death of Hongi.

1829. Brig “ Hawes “ captured by Maoris.

1830. Battles of Taumata-wiwi and Kororareka. Fall of Kaiapohia Pa, Canterbury, to Te Rauparaha.

1831. Tory Channel whaling-station established. Application of thirteen chiefs for the protection of King William IV. Capture of Pukerangiora Pa. Waitara, by Waikato.

1832. Repulse of Waikato at Nga-motu Pa.

1833. Mr. Busby appointed British Resident at Bay of Islands.

1834. Battle near Otaki. Waimate Pa shelled and captured by British—first occasion on which H.M. troops employed in New Zealand.

1835. Declaration of independence of the whole of New Zealand as one nation, with title of “ United Tribes of New Zealand.” Ngati-Awa tribes migrated to and conquered Chatham Islands.

1836. Battles between Waikato and Te Arawa.

1838. Pelorus Sound discovered. Arrival of Roman Catholic mission under Bishop Pompallier.

1839. Governor of New South Wales authorized to include within the limits of that colony any territory that might be acquired in sovereignty by Her Majesty in New Zealand. Preliminary expedition of New Zealand Company under Colonel Wakefield arrived at Port Nicholson.

1840. Arrival of New Zealand Company's settlers at Port Nicholson. Treaty of Waitangi signed. British sovereignty proclaimed. Captain Hobson appointed Lieutenant-Governor, with residence at Auckland. Settlements formed at Petre (Wanganui) and Akaroa.

1841. Issue of charter of incorporation of New Zealand Company. New Zealand proclaimed independent of New South Wales. Arrival of New Plymouth settlers.

1842. Settlement founded at Nelson.

1843. Affray with Natives at the Wairau.

1844. Royal flagstaff at Kororareka cut down by Heke.

1845. Destruction of Kororareka by Heke.

1846. Arrival of first steam vessel (H.M.S. “Driver”) in New Zealand waters. Capture of pa at Ruapekapeka and termination of Heke's war. Native hostilities near Wellington. Te Rauparaha captured and detained as a prisoner. New Zealand divided into two provinces, New Munster and New Ulster, and representative institutions conferred.

1847. Attack by Maoris on Wanganui.

1848. Suspension of that part of New Zealand Government Act which had conferred representative institutions. Severe earthquake at Wellington. Otago founded.

1850. Surrender of New Zealand Company's charter, all its interests reverting to the Imperial Government. Canterbury founded.

1852. Discovery of gold at Coromandel. Constitution Act passed, granting representative institutions to New Zealand, and dividing country into six provinces.

1854. Opening at Auckland of first session of the General Assembly.

1855. First members elected to the House of Representatives under system of responsible Government. Very severe earthquake on both sides of Cook Strait.

1856. Appointment of first Ministry under system of responsible Government.

1857. Goldfield opened at Collingwood.

1858. New Provinces Act passed. Hawke's Bay Province constituted.

1859. Establishment of Marlborough Province.

1860. Hostilities in Waitara district.

1861. Truce arranged with Waitara Maoris. Bank of New Zealand incorporated. Southland Province established. Gold discovered at Gabriel's Gully, Otago.

1862. Coromandel proclaimed a goldfield. Wreck of s.s. “ White Swan,” with loss of many public records. First electric-telegraph line opened—Christchurch to Lyttelton.

1863. Wreck of H.M.S. “ Orpheus “ on Manukau bar, with loss of 181 lives. Control of Native affairs transferred to Colonial Government. Commencement of Waikato War. Defeat of Maoris at Rangiriri, and occupation of Ngarua-wahia. First railway in New Zealand opened.

1864. Severe fighting in Waikato and elsewhere, including Battles of Rangiaohia, Orakau, Gate Pa, and Te Ranga. Gold discovered on west coast of South Island.

1865. Seat of Government transferred to Wellington. Further fighting, followed by proclamation of peace. Activities of Hauhau fanatics, including murders of Europeans. Rebel Natives defeated at Wairoa.

1866. Further defeats of rebel Natives. Commencement of Panama steam mail-service. Cook Strait submarine telegraph-cable laid.

1867. Opening of Thames Goldfield. Lyttelton Tunnel completed. Admission of four Maori members to House of Representatives as direct representatives of Maori people.

1868. Maori prisoners, under leadership of To Kooti, seized schooner “Rifleman” and escaped from Chatham Islands to mainland, where they massacred Europeans. Considerable fighting with these and other rebel Natives.

1869. Continuation of fighting with rebels and of pursuit after Te Kooti. Termination of Panama mail-service. Visit of H.R.H. the Duke of Edinburgh. Government Life Insurance Office established.

1870. Further fighting with Te Kooti. Last of Imperial troops left New Zealand. Commencement of San Francisco mail-service. Bounty Island taken possession of. Inauguration of Vogel public-works policy. Act passed to establish the New Zealand University. Southland Province reunited with Otago.

1871. Commencement of railway-construction under public-works policy.

1872. Resumption of friendly relations with Waitara Maoris. Appointment of Maori chiefs (two) to Legislative Council. Public Trust Office created.

1873. Establishment of New Zealand Shipping Company.

1874. In pursuance of immigration and public-works policy, 31,774 assisted immigrants, introduced. Westland Province established.

1875. Resumption of amicable relations with Maori King. Establishment of Union Steam Ship Company. Abolition of Provinces Act passed.

1876. New Zealand connected by cable with Australia. Abolition of Provinces Act came into operation, provincial institutions being abolished and the country divided into counties and boroughs.

1877. Education Act passed, providing for free and compulsory education.

1878. Completion of the Christchurch-Invercargill railway.

1879. Trouble with Parihaka Natives, under Te Whiti, and imprisonment of 180 of these. Triennial Parliaments Act passed. Adult male suffrage introduced. Kaitangata coal-mine explosion, whereby thirty-four lives lost.

1880. Release of Parihaka prisoners.

1881. Wreck of s.s. “ Tararua,” with loss of 130 lives. Severe earthquakes in Wellington. Arrest of Te Whiti and Tohu.

1882. First shipment of frozen meat from New Zealand.

1883. Amnesty to Maori political offenders proclaimed. Te Whiti and Tohu released. Direct steam communication inaugurated between New Zealand and England.

1885. New Zealand Industrial Exhibition at Wellington.

1886. Tarawera eruption, involving loss of 101 lives and destruction of Pink and White Terraces.

1887. Annexation of Kermadec Islands. Members of House of Representatives reduced to seventy-four, including four Maoris.

1888. British protectorate over Cook Islands proclaimed.

1889. South Seas Exhibition at Dunedin.

1890. Great maritime strike. First election of House of Representatives under one-man-one-vote principle.

1891. Inauguration of Liberal regime under Hon. John Ballance, succeeded on his death in 1893 by Mr. Seddon. This and following years marked by passage of industrial and social legislation.

1892. Introduction of lease-in-perpetuity system of land-tenure.

1893. Franchise extended to women. Special licensing poll introduced.

1894. Industrial Conciliation and Arbitration Act passed. Government Advances to Settlers Act passed. Wreck of s.s. “Wairarapa,” with loss of 135 lives.

1895. Government assumed management of Midland Railway.

1896. Brunner Mine explosion, causing sixty-seven deaths. Abolition of non-residential or property qualification to vote. Government Valuation of Land Act passed.

1898. Old-age Pensions Act passed.

1899. Labour Day instituted. New Zealand Contingent (the first of ten) sent to South Africa.

1900. Number of European representatives in Lower House increased to seventy-six.

1901. T.R.H. the Duke and Duchess of York visited New Zealand. Penny postage adopted by New Zealand. Cook and other Pacific islands annexed.

1902. Pacific cable opened. Wreck of s.s. “Elingamite” with loss of forty-three lives. Conference of colonial Premiers in London.

1903. Empire Day proclaimed. State Fire Insurance Act passed.

1905. Workers' Dwellings Act passed. Title of New Zealand's representative in London altered to “High Commissioner.”

1906. Death of Rt. Hon. R. J. Seddon, Premier since 1893. Advances to Workers Act passed. New Zealand International Exhibition at Christchurch.

1907. New Zealand constituted a Dominion. Lease-in-perpetuity system of land-tenure abolished. Parliament Buildings destroyed by fire.

1908. Through railway communication established between Wellington and Auckland. Wellington-Manawatu Railway purchased by Government. Second Ballot Act passed.

1909. S.s. “Penguin” wrecked in Cook Strait, with loss of seventy-five lives. Battle-cruiser presented by New Zealand to Imperial Government. System of compulsory military training introduced.

1910. Field-Marshal Lord Kitchener reported and advised on New Zealand defences. Public Debt Extinction Act and National Provident Fund Act passed.

1911. Wireless telegraphy installed in New Zealand. Widows' Pensions Act passed. First poll on national prohibition taken.

1912. Foundation-stone of new Parliament Buildings laid. Public Service placed under Commissioner control.

1913. Visit of Dominions Royal Commission. Visit of gift ship H.M.S. “New Zealand” to Dominion. Extensive strikes. Second Ballot Act repealed.

1914. Western Samoa occupied by New Zealand Advance Expeditionary Force. Main Expeditionary Force left for Egypt. Huntly coal-mine disaster, whereby forty-three lives lost.

1915. New Zealand Expeditionary Force engaged in operations on Gallipoli Peninsula. National Cabinet formed. National register of men compiled.

1916. New Zealand Division transferred to western front, Mounted Brigade being retained in Egypt. Compulsory enrolment of men for war service introduced. Lake Coleridge electric-supply scheme opened.

1918. S.s. “Wimmera” sunk by enemy mine off New Zealand coast, with loss of 26 lives. Otira Tunnel pierced. Great influenza epidemic, causing over five thousand deaths.

1919. Women made eligible for seats in Parliament. New Zealand represented at Peace Conference by Right Hon. W. F. Massey, P.C., Prime Minister.

1920. Visit of H.R.H. the Prince of Wales. Railway strike. First aeroplane flight over Cook Strait. League of Nations gave New Zealand mandate to administer Western Samoa. Anzac Day constituted.

1921. Samoa Act passed, making provision for government in terms of mandate. New Zealand represented at Disarmament Conference, Washington, by Hon. Sir John Salmond.

1922. Meat-export trade placed under control of a Board.

1923. Opening of Otira Tunnel. Ross Dependency proclaimed and placed under jurisdiction of Governor-General. Dairy-produce Export Control Act passed, and adopted by dairy producers.

1924. Railway strike. Direct two-way radio communication effected with England. Motor-vehicles Act provided for registration and annual licensing of motor-vehicles. Land Transfer (Compulsory Registration of Titles) Act passed.

1925. Repayment of the Public Debt Act passed. New Zealand and South Seas International Exhibition at Dunedin. Death of Right Hon. W. F. Massey.

1926. Administration of Tokelau (Union) Islands transferred to New Zealand. Absolute control adopted by Dairy-produce Control Board. Family Allowances Act passed.

1927. Visit of T.R.H. the Duke and Duchess of York. Summer Time Act passed. Limited control substituted for absolute control by Dairy-produce Control Board. Petrol-tax imposed.

1928. Kingsford Smith and party made first successful flight across Tasman. Compulsory insurance of motor-vehicles provided for by Motor-vehicles Insurance (Third-party Risks) Act.

1929. Severe earthquake in Murchison-Karamea district caused seventeen deaths. Daylight-saving (half-hour) permanently adopted for summer months. Fatal clash between police and Mau at Apia.

1930. Legislation providing for relief of unemployment first passed. Deaths of Sir Joseph Ward, Sir Robert Stout, and Sir Thomas Mackenzie, ex-Premiers.

1931. Worst earthquake in history of New Zealand occurred in Hawke's Bay, resulting in the loss of 255 lives. General reduction of 10 per cent. in wages and salaries. Parliament approved draft Statute of Westminster. Mortgagors' relief legislation passed.

1932. Industrial Conciliation and Arbitration Amendment Act made important changes in industrial legislation. National Expenditure Adjustment Act made reductions in old-age and other pensions, in salaries of State employees, and in rent, interest rates, and other fixed charges. The historic Waitangi Estate presented to the nation by Their Excellencies Lord and Lady Bledisloe. New Zealand represented at Ottawa Conference.

1933. Exchange raised at instance of Government to £125 N.Z. for £100 London (telegraphic transfers). Sales tax of 5 per cent. on wholesale sales instituted. Interest reduced on public internal debt, and provision made for local authorities' interest reduction and loans conversion. Successful experimental shipments of chilled beef to England. First New Zealand silver coins in circulation.

1934. First official trans-Tasman air-mail. Reserve Bank incorporated and commenced business. H.R.H. the Duke of Gloucester arrived on an official visit. First licensed air-transport service commenced operations.

1935. Bank-notes of trading banks ceased to be legal tender. Rural Mortgagors Final Adjustment Act passed and Court of Review established. National Government defeated at general election, and Labour Government assumed office.

1936. Inauguration of inter-Island trunk air services. Reserve Bank nationalized. System of guaranteed prices for butter and cheese introduced. Forty-hour week became operative. Rail-car services inaugurated. New Zealand elected to seat on League of Nations Council.

1937. Coronation attended by many New-Zealanders, including Right Hon. M. J. Savage (Prime Minister) Hon W. Nash (Minister of Finance), Hon. H. T. Armstrong (Minister of Labour), and Mr. W. J. Jordan (High Commissioner), the last-mentioned carrying the New Zealand Standard in the Abbey procession. New Zealand represented at Imperial Conference by Right Hon. M. J. Savage, Hon. W. Nash, and Mr. W. J. Jordan. Hon. H. T. Armstrong. Minister of Labour, attended International Labour Office Conference at Geneva. Death of Lord Rutherford of Nelson.

1938. Death of Dr. Sir F. Truby King. Governor-General Viscount Galway and Lady Galway visited Australia for Commonwealth sesqui-centenary celebrations, at which New Zealand Government represented by Hon. W. E. Parry. Flying-Officer A. E. Clouston and Mr. Victor Ricketts made flight from England to New Zealand and return in 10 days 20 hours. Country library service inaugurated. “All-up” letter air-mail service to British countries brought into operation. Johnsonville—Wellington railway-line electrified. Mr. W. J. Jordan, New Zealand's representative on League of Nations, elected President of the League Assembly. Appointment of Sir H. Batterbee as first British High Commissioner in New Zealand. Social Security Act passed. General election: Labour Government returned for second term. Reserve Bank re-discount rate increased to 4 per cent. Introduction of export licenses regulations and import control regulations. Suspension of obligation of Reserve Bank to give sterling in exchange for Reserve Bank notes.

1939. United Kingdom reduced import quotas of mutton and lamb. Partly completed Social Security Building destroyed by lire. Visit to New Zealand of British Air Mission to discuss defence problems. New Zealand represented at International Labour Conference at Geneva by Hon. F. Langstone. Visit paid to London by Hon. W. Nash in connection with loan conversions. Commencement of benefits under the Social Security Act, 1938. Internal loan of £4,500,000 at 4 per cent. oversubscribed. Price Tribunal appointed. Death of Sir Thomas Wilford, former High Commissioner for New Zealand in Great Britain. By-election at Christchurch South due to death of Mr. E. J. Howard, Chairman of Committees. Amendment to Industrial Conciliation and Arbitration Act, permitting cancellation of registration of industrial unions in the event of prolonged strikes. North Island East Coast Railway opened for passenger traffic as far as Wairoa. Tour of the Cook and adjacent islands made by Their Excellencies the Governor-General and Lady Galway. Retirement of Sir Walter Carncross after twenty-one years as Speaker of the Legislative Council. Arrival of flying-boat “Aotea-roa” for purposes of establishing trans-Tasman air service. Declaration of war with Germany. Emergency war legislation passed and Ministry of Supply established. Reduction in the Reserve Bank re-discount rate to 3 per cent. Recruitment for 2nd New Zealand Expeditionary Force. Reserve Bank Amendment Act passed, giving greater control to Minister of Finance. Death of Maori religious leader, Ratana. Mine disaster at Huntly, eleven fatalities. Reduction in schedules of air passenger-services. Imposition of petrol restrictions. Fishing-launch “Dolphin” accidentally sunk by gunfire. Visit of Hon. P. Fraser to London in connection with Empire war effort. Arrangement for purchase of primary products by Imperial Government. Opening of Ngahauranga Gorge and Paekakariki coastal roads. Opening of New Zealand Centennial Exhibition at Wellington. Appointment of Major-General Freyberg, V.C., as Commander of New Zealand Forces overseas. Issue of New Zealand bronze coinage. Naval engagement off River Plate, South America, in which H.M.S. “Achilles,” largely manned by New Zealand ratings, in action.

(c) GENERAL BIBLIOGRAPHY.

The following list, compiled originally by Mr. Johannes C. Andersen, M.B.E., F.R.S.N.Z. (ex-Librarian of the Alexander Turnbull Library, Wellington), and revised and rearranged by Mr. C. R. H. Taylor, M.A. (present Librarian), contains the names of some of the principal works dealing with New Zealand, Samoa, and the Cook Islands.

Considerations of space preclude the inclusion of a complete list, and make it necessary in this issue to omit works which have not been published or republished since 1912. Earlier works are listed in the 1932 issue of the Year-Book.

ANDERSEN, Johannes Carl (editor): Annals of New Zealand Literature. Wellington. Authors' Week Committee. 1936.

—– The Lure of New Zealand Book-collecting. Wellington. Whitcombe & Tombs. 1936.

CHAPPLE, Leonard James Bancroft: A Bibliographical Brochure … of New Zealand Literature. Dunedin. Reed. 1938.

JOHNSTONE, A. H.: Supplement to Hocken's Bibliography of New Zealand Literature. Christchurch. Whitcombe & Tombs. 1927.

MULES, Mary, and Arthur Gordon Butchers: Bibliography of New Zealand Education. Wellington. New Zealand Council for Educational Research. 1936.

MUNN, Ralph, and John Barr: New Zealand Libraries—survey of conditions and suggestions for their improvement. Christchurch. Libraries Association of New Zealand. 1934.

SERLE, Percival: Bibliography of Australasian Poetry and Verse. Melbourne. University Press. 1925.

WILLIAMS, Herbert William: Bibliography of Printed Maori to 1900. (Dominion Museum monograph no. 7.) Wellington. Government Printer. 1924. Supplement, 1928.

RELIGION AND MYTHOLOGY.

ANDERSEN, Johannes Carl: Myths and Legends of the Polynesians. London. Harrap. 1928.

BEST, Elsdon: Maori Religion and Mythology. Dominion Museum bulletin no. 10. Wellington. Government Printer. 1924.

POMARE, Sir Maui, and James Cowan: Legends of the Maori. 2 vols. Wellington. H. H. Tombs. 1930. (Vol. 2 in 1934.)

WILSON, Charles A.: Legends and Mysteries of the Maori, London. Harrap. 1932.

ECONOMICS.

BELSHAW, Horace: Recovery Measures in New Zealand: a comparison with the New Deal in the United States. Wellington. New Zealand Institute of Pacific Relations. 1936.

COAD, Nellie Euphemia: Dominion Civics. Wellington. Whitcombe & Tombs. 1924.

HUTCHISON, Robert H.: The “Socialism” of New Zealand. New York. New Review Publishing Association. 1916.

LEE, John Alexander: Socialism in New Zealand. London. T. Werner Laurie. 1938.

NEALE, Edward Percy: Guide to New Zealand Official Statistics. Auckland. Whitcombe & Tombs. 1938.

POWLES, G. R., and others (editors): Contemporary New Zealand. Wellington. New Zealand Institute of International Affairs. 1938.

SUTCH, William Ball: Recent Economic Changes in New Zealand. Auckland. Whitcombe & Tombs. 1936.

—– Price fixing in New Zealand. New York. Columbia University Press. 1932.

WILSON, Ethel Wilson: Land Problems of the Forties. Dunedin. Reed. 1936.

SOCIAL STUDIES.

BUTCHERS, Arthur Gordon: Young New Zealand. Dunedin. Coulls, Somerville, Wilkie. 1929.

HARROP, Angus John: England and New Zealand. London. Methuen. 1926.

HETHERINGTON, Jessie Isabel: New Zealand: its political connection with Great Britain. Dunedin. Coulls, Somerville, Wilkie. 1926. (Vol. 2, 1927.)

LUSK, Hugh Hart: Social Welfare in New Zealand. London. Heinemann. 1913.

MARAIS, Johannes Stephanus: Colonization of New Zealand. Oxford University Press. 1927.

LAW.

ANDERSON, Harry Evelyn, and Douglas James Dalgleish: The Law relating to Companies in New Zealand. “Wellington. H. H. Tombs. 1934.

FODEN, Norman Arthur: The Constitutional Development of New Zealand, 1839-1849. Wellington. Butterworth. 1938.

HIGHT, James, and H. D. Bamford: The Constitutional History and Law of New Zealand. Christchurch. Whitcombe & Tombs. 1914.

JOURDAIN, William Robert: Land Legislation and Settlement in New Zealand. Wellington. Lands and Survey Department. 1925.

MACDONALD, John William: Macdonald's Law relating to Workers' Compensation in New Zealand. 2nd edition. Wellington. Butterworth. 1934.

MINING Laws of the British Empire: Vol. 10. New Zealand. London. Imperial Institute. 1931.

TREADWELL, Charles Archibald Lawrence: Notable New Zealand Trials. New Plymouth. Avery. 1936.

WADDY, Percival R.: Mercantile Law of New Zealand, revised by J. D. Willis. 5th edition. Wellington. Whitcombe & Tombs. 1939.

EDUCATION.

BEAGLEHOLE, John Cawte: A School of Political Studies. Wellington. Council for Educational Research. 1938.

—– The University of New Zealand: an historical study. Wellington. Whitcombe & Tombs. 1937.

BEEBY, Clarence Edward: The Education of the Adolescent. Wellington. Council for Educational Research. 1937.

—– Intermediate Schools of New Zealand. Wellington. Council for Educational Research. 1938.

CAMPBELL, Arnold Everitt, and Colin Lennie Bailey (editors): Modern Trends in Education. New Education Fellowship Conference. Wellington. Whitcombe & Tombs. 1938.

JACKSON, Patrick (editor): The Maori and Education. (A collection of essays by Elsdon Best, Bishop Williams, Professor Sutherland, and others.) Wellington. Ferguson & Osborn. 1931.

JENKINS, David Ross: Social Attitudes in the New Zealand School Journal. Wellington. Council for Educational Research. 1939.

KANDEL, Isaac Leon: Impressions of Education in New Zealand, and Inverted Snobbery and the Problem of Education. Wellington. Council for Educational Research. 1937.

—– Types of Administration, with Particular Reference to the Educational Systems of New Zealand and Australia. Wellington. Council for Educational Research. 1938.

LECKIE, Frank Maxwell: Early History of Wellington College. Wellington. Whitcombe & Tombs. 1934.

SOMERSET, Hugh Crawford Dixon: Littledene: a New Zealand rural community Wellington. Council for Educational Research. 1938.

THOMAS, W., and others: Entrance to the University, in 3 parts. Wellington. Council for Educational Research. 1939.

WEBB, Leicester Chisholm: Control of Education in New Zealand. Wellington. Council for Educational Research. 1937.

WILD, Leonard John: An Experiment in Self-government. Wellington. Council for Educational Research. 1938.

COMMUNICATION: PHILATELY.

BRETT, Henry: White Wings (early shipping). Auckland. Brett. 1924. (Vol. 2, 1928.)

EADDY, Percy Allen: Neath Swaying Spars. Wellington. Whitcombe & Tombs. 1939.

GARDINER, Hugh: Skyways of Maoriland. Wellington, McKenzie, Thornton. & Cooper. 1934.

PHILATELIO Society of New Zealand: The Postage Stamps of New Zealand. Wellington. Philatelic Society. 1939.

VERNE, Collins & Co.: Illustrated and priced catalogue of the Stamps of New Zealand. Christchurch, Simpson & Williams. 1931.

LANGUAGE.

NGATA, Sir Apirana Turupa: Maori Grammar. 1938.

WILLIAMS, Herbert William: A Dictionary of the Maori Language. Wellington. Government Printer. 1917.

ZOOLOGY.

ANDERSEN, Johannes Carl: Bird-song and New Zealand Song-birds. Christchurch. Whitcombe & Tombs. 1926.

BUICK, Thomas Lindsay: The Mystery of the Moa. New Plymouth. Avery. 1931.

GUTHRIE-SMITH, William Herbert: Bird Life on Island and Shore. Edinburgh. Black-wood. 1925.

—– Mutton-birds and Other Birds. Christchurch. Whitcombe & Tombs. 1914.

—– Sorrow and Joys of a New Zealand Naturalist. Dunedin. Reed. 1936.

HUDSON, George Vernon: Beetles of New Zealand. Wellington. Ferguson & Osborn. 1934.

—– The Butterflies and Moths of New Zealand. Wellington. Ferguson & Osborn. 1928.

HUTTON, Frederick Wollarton, and James Drummond: The Animals of New Zealand. 4th edition. Christchurch. Whitcombe & Tombs. 1923.

MARTIN, William: The New Zealand Nature Book. Fauna and flora. 2 vols. Christchurch. Whitcombe & Tombs. 1929.

MONCRIEFF, Perrine: New Zealand Birds and how to identify them. Auckland. Whitcombe & Tombs. 1925.

OLIVER, Walter Reginald Brook: New Zealand Birds. Wellington. Fine Arts. 1930.

SPEIGHT, Robert, and others (editors): Natural History of Canterbury. Issued by the Philosophical Institute of Canterbury. Christchurch. Simpson & Williams. 1927.

STEAD, Edgar F.: The Life Histories of New Zealand Birds. London. Search Publishing Co. 1932.

THOMSON, George Malcolm: The Naturalization of Animals and Plants in New Zealand. Cambridge University Press. 1922.

THOMSON, Robert P.: A Natural History of Australia, New Zealand, and the Adjacent Islands. London. Routledge. 1917.

TILLYARD, Robin John: The Insects of Australia and New Zealand. Sydney. Angus & Robertson. 1926.

BOTANY.

ALLAN, Harry Howard Barton: New Zealand Trees and Shrubs. Auckland. Whitcombe & Tombs. 1928.

ATKINSON, Esmond H.: Phormium Tenax. Wellington. Government Printer. 1922.

CHEESEMAN, Thomas F.: Manual of New Zealand Flora. 2nd edition, edited by W. R. B. Oliver. Wellington. Government Printer. 1925.

COCKAYNE, Leonard: The Cultivation of New Zealand Plants. Auckland. Whitcombe & Tombs. 1923.

—– New Zealand Plants and their Story. 3rd edition. Wellington. Government Printer. 1927.

—– The Vegetation of New Zealand. 2nd edition. Leipzig. Engelmann. 1928.

DOBBIE, Herbert 13.: New Zealand Ferns. 3rd edition. Wellington. Whitcombe & Tombs. 1931.

LAING, Robert ML, and Ellen W. Blackwell: Plants of New Zealand. 3rd edition, revised and enlarged. Christchurch. Whitcombe & Tombs. 1927.

OLIVER, Walter Reginald Brook: The Genus Coprosma. Honolulu. Bishop Museum. 1935.

SIMMONDS, Joseph Henry: Trees from other Lands for Shelter and Timber in New Zealand—Eucalypts. Auckland. Brett. 1927.

GEOLOGY.

COTTON, Charles Andrew: The Geomorphology of New Zealand. Wellington. Government Printer. 1922.

MARSHALL, Patrick: The Geology of New Zealand. Wellington. Government Printer. 1912.

REPORT of the Hawke's Bay Earthquake. New Zealand Department of Scientific and Industrial Research bulletin no. 43. Wellington. Government Printer. 1933.

ANTHROPOLOGY.

ANDERSEN, Johannes Carl: Maori Music with its Polynesian Background. Wellington. Polynesian Society. 1934.

—– Maori String Figures. Board of Maori Ethnological Research memoir, vol. 2. Wellington. Ferguson & Osborn. 1927.

BEST, Elsdon: Fishing Methods and Devices of the Maori. Dominion Museum bulletin no. 12. Wellington. Government Printer. 1929.

—– Games and Pastimes of the Maori. Dominion Museum bulletin no. 8. 1925.

—– The Maori. 2 vols. Wellington. Polynesian Society. 1924.

—– The Maori As He Was. Wellington. Government Printer. 1925.

—– The Maori Canoe. Dominion Museum bulletin no. 7. Wellington. Government Printer. 1925.

—– Maori Storehouses and Kindred Structures. Dominion Museum bulletin no. 5. Wellington. Government Printer. 1916.

—– Maori Myth and Religion. Spiritual and Mental Concepts of the Maori. Astronomical Knowledge of the Maori. Maori Division of Time. (Dominion Museum monographs nos. 1-4.) Wellington. Government Printer. 1922.

—– Maori Mythology and Religion. Dominion Museum bulletin no. 10. Wellington. Government Printer. 1922.

—– The Maori System of Agriculture. Dominion Museum bulletin no. 9. Wellington. Government Printer. 1925.

—– The Pa Maori. Dominion Museum bulletin no. 6. Wellington. Government Printer. 1927.

—– Polynesian Voyagers. Maori Schools of Learning. (Dominion Museum monographs nos. 5 and 6.) Wellington. Government Printer. 1923.

—– Tuhoe, the Children of the Mist. 2 vols. Wellington. Polynesian Society. 1925.

—– The Whare Kohanga (the “nest house”) and Its Lore. Dominion Museum bulletin no. 13. Wellington. Government Printer. 1929.

BROWN, John Macmillan: Peoples and Problems of the Pacific. London. Fisher Unwin. 1927.

BUCK, Peter Henry: The Evolution of Maori Clothing. Board of Maori Ethnological Research. New Plymouth. Avery. 1927.

—– Vikings of the Sunrise. New York. Stokes. 1938.

BUICK, Thomas Lindsay: The Discovery of Dinornis. New Plymouth. Avery. 1936.

—– The Moa Hunters. New Plymouth. Avery. 1937.

COWAN, James: The Maori Yesterday and To-day. Christchurch. Whitcombe & Tombs. 1930.

FIRTH, Raymond: Primitive Economics of the New Zealand Maori. London. Routledge. 1929.

KEESING, Felix Maxwell: The Changing Maori. Board of Maori Ethnological Research memoir, vol. 4. New Plymouth. Avery. 1928.

PAPAKURA, Maggie (Makereta): The Old-time Maori. London. Victor Gollancez. 1938.

ROWE, W. Page: Maori Artistry. Board of Maori Ethnological Research memoir, vol. 3. New Plymouth. Avery. 1928.

SMITH, Stephenson Percy: Hawaiki: the Whence of the Maori. Christchurch. Whitcombe & Tombs. 1921.

—– Lore of the Whare Wananga. (Memoir of the Polynesian Society, vols. 3 and 4.) 2 vols. Now Plymouth. Avery. 1913-15.

SUTHERLAND, I van Lorren George: The Maori Situation. Wellington. H. H. Tombs. 1935.

MEDICINE.

BRYSON, Elizabeth: Learning to Live. Wellington. Reed. 1938.

SMITH, George McCall: Notes from a Backblock Hospital. Christchurch. Caxton Press. 1938.

AGRICULTURE, INDUSTRY, AND FORESTRY.

BELSHAW, Horace, and others: Agricultural Organization in New Zealand. (Institute of Pacific Relations, Melbourne.) University Press. 1936.

CONNELL, J. A.: The Breeding of Live Stock. New Plymouth. Avery. 1931.

CUNNINGHAM, Gordon Herriott: Fungous Diseases of Fruit-trees in New Zealand. Auckland. New Zealand Fruitgrowers' Federation. 1925.

DUNCAN, George Andrew: The New Zealand Dairy Industry. Palmerston North. Young. 1933.

HILGENDORF, Frederick William: Pasture Plants and Pastures of New Zealand. Christchurch. Whitcombe & Tombs. 1932.

—– Wheat in New Zealand. Christchurch. Whitcombe & Tombs. 1939.

LESLIE, Allan. Diseases of Breeding Ewes. Wellington. Whitcombe & Tombs. 1938.

PHILPOTT, Harold G.: A History of the New Zealand Dairy Industry. Wellington. Government Printer. 1937.

ROWLEY, Fortescue William: The Industrial Situation in New Zealand. Wellington. H. H. Tombs. 1931.

SMITH, W. Millar: The Marketing of Australian and New Zealand Primary Products. London. Pitman. 1936.

STATE Forest Service: Pulping and Paper-making Properties of Selected New Zealand Woods. Wellington. Government Printer. (Parliamentary Paper.) 1928.

RECREATION AND ART.

COSTON, H. E. Towner: Speckled Nomads: a tale of trout in two rivers. London. Faber and Faber. 1938.

DONNE, Thomas Edward: Rod-fishing in New Zealand Waters. London. Seeley, Service. 1927.

GREY, Zane: Tales of the Angler's Eldorado, New Zealand. London. Hodder & Stoughton. 1920.

HINTZ, O. S.: The New Zealanders in England. London. Dent. 1931.

REESE, Thomas W.: New Zealand Cricket, 1914-1933. Christchurch. Whitcombe & Tombs. 1936.

ART in New Zealand: A quarterly periodical issued since September, 1928. H. H. Tombs. Wellington.

LITERATURE.

Poetry.

ALEXANDER, William Frederick and Archibald Ernest Currie: Treasury of New Zealand Verse: new edition. Auckland. Whitcombe & Tombs. 1926.

MARRIS, Charles A. (editor): New Zealand Best Poems of (1932). An annual publication. Wellington. H. H. Tombs.

POPE, C. Quentin (editor): Kowhai Gold. An anthology of contemporary New Zealand verse. London. Dent. 1930.

RHODES, H. Winston, and Denis Glover (editors): Verse Alive. Christchurch. Caxton Press. 1936.

—– Verse Alive No. 2. Christchurch. Caxton Press. 1937.

ANDERSEN, Johannes Carl: The Elfin Dell. Wellington. Reed. 1934.

BROOKFIELD, Helen: The Fugitives. Poems. Auckland. Whitcombe & Tombs. 1939.

CHAMBERLIN, Thomas Chamberlin: Songs of the Forests of Tane. Wellington. Fine Arts. 1931.

DUGGAN, Eileen: Poems. London. Allen and Unwin. 1937.

FAIRBURN, Arthur Rex Dugard: Dominion. Christchurch. Caxton Press. 1938.

MACKAY, Jessie. Vigil. Christchurch. Whitcombe & Tombs. 1935.

MULGAN, Alan Edward: Aldebaran and Other Verses. Christchurch. Caxton Press. 1937.

PERRY, Charles Stuart: The Litany of Beauty. Wellington. Ferguson & Osborn. 1934.

STEWART, Douglas: The White Cry. London. Dent. 1939.

WALL, Arnold: Theme and Variations. Auckland. Whitcombe & Tombs. 1937.

Fiction.

ALLEN, Charles Richards (editor): Tales by New Zealanders. London. British Authors' Press. 1938.

ALLEN, Charles Richards: The Poor Scholar. Dunedin. Reed. 1936.

ACHESON, Frank Oswald Victor: Plume of the Arawas. Dunedin. Reed. 1938.

(BRODIE, John): The Little Country, by John Guthrie (pseud.). London. Nelson. 1935.

—– So They Began, by John Guthrie (pseud.). London. Nelson. 1936.

COWAN, James: Hero Stories of New Zealand. Wellington. H. H. Tombs. 1935.

—– Tales of the Maori Bush. Wellington. Reed. 1934.

—– Tales of the Maori Coast. New Plymouth. Avery. 1930.

—– Tales of the New Zealand Coast. New Plymouth. Avery. 1934.

GILLESPIE, Oliver Noel (editor): New Zealand Short Stories. London. Dent. 1932.

(LEE, John Alexander): Children of the Poor. London. T. Werner Laurie. 1934.

LEE, John Alexander: Civilian into Soldier. London. T. Werner Laurie. 1937.

—– The Hunted. London. T. Werner Laurie. 1936.

(LYTTELTON, Edith): Promenade, by G. B. Lancaster (pseud.). Sydney. Angus & Robertson. 1938.

MANDER, Jane: The Story of a New Zealand River. 2nd edition. Wellington. Whitcombe & Tombs. 1938.

RAWLINSON, Gloria: Music in the Listening Place. London. Cassell. 1938.

SATCHELL, William B.: The Greenstone Door. 2nd edition. Wellington. Whitcombe & Tombs. 1935.

SOANLAN, Nelle M.: Pencarrow, London. Jarrolds. 1935.

—– Tides of Youth. London. Jarrolds. 1935.

—– Winds of Heaven. London. Jarrolds. 1935.

WEST, Joyce M.: Sheep Kings. Wellington. H. H. Tombs. 1937.

(WILKINSON, Iris Guiver): Cheek to Your King, by Robin Hyde (pseud.). London. Hurst & Blackett. (A life of Charles, Baron de Thierry, in the form of a novel.) 1936.

—– The Godwits Fly, by Robin Hyde (pseud.). London. Hurst & Blackett. 1939.

—– Nor the Years Condemn, by Robin Hyde (pseud.). London. Hurst & Blackett. 1938.

Essays.

BUICK, Thomas Lindsay (editor): Ideals of Nationhood. A selection of addresses delivered in New Zealand by the Right Hon. Lord Bledisloe. New Plymouth. Avery. 1935. 2nd edition, 1939.

COMBS, Frank Livingstone: The Harrowed Toad. London. Dent. 1939.

MULGAN, Alan Edward: First with the Sun. London. Dent. 1939.

SCHRODER, John Henry Erle: Remembering Things. Christchurch. Whitcombe & Tombs. London. Dent. 1938.

SEWELL, Arthur: Katherine Mansfield—a critical essay. Auckland. Unicorn Press. 1936.

Drama.

BRADWELL, Eric: Four One-act Plays. London. Allen & Unwin. 1935.

LLOYD, Victor Stanton (editor): Seven One-act Plays. 1933. Seven One-act Plays. 1934. Six One-act Plays. 1935. Six Further One-act Plays. 1935. Wellington. Radio Publishing Co.

MULGAN, Alan Edward: Three Plays of New Zealand. Auckland. Whitcombe & Tombs. 1922.

DESCRIPTION AND TRAVEL.

ANDERSEN, Johannes Carl: Place. Names in New Zealand. New Plymouth. Avery. (New Zealand Geographic Board publication.) 1934.

—– Place Names of Banks Peninsula. Wellington. Government Printer. 1927.

BEAGLEHOLE, John Cawte: Exploration of the Pacific. Oxford University Press. 1935.

COAD, Nellie Euphemia: Geography of the Pacific. Wellington. N.Z. Book Depot. 1926.

COWAN, James. Travel in New Zealand. 2 vols. Christchurch. Whitcombe & Tombs. 1926.

COWIE, Donald: New Zealand from Within. Wellington. Whitcombe & Tombs. 1937.

GUTHRIE-SMITH, William Herbert: Tutira: the story of a New Zealand sheep-station. London. Blackwood. 1921.

HARROP, Angus John: Touring in New Zealand. London. Allen & Unwin. 1935.

HERBERT, Arthur Stanley: The Hot Springs of New Zealand. London. H. K. Lewis. 1921.

MANING, Frederick Edward: Old New Zealand, by a Pakeha Maori. Christchurch. Whitcombe & Tombs. (Reprint.) 1930.

MULGAN, Alan Edward: A Pilgrim's Way in New Zealand. Oxford University Press. 1935.

NEW ZEALAND Index of every Place in New Zealand. Dunedin. Wise. 1936.

ODELL, Robert Sydney: Handbook of Arthur Pass National Park. Wellington. Whitcombe & Tombs. 1935.

OXFORD Survey of the British Empire: Australasian Territories. (Vol. 5.) London. Oxford University Press. 1914.

PASCOE, John Dobree: Unclimbed New Zealand. London. Allen & Unwin. 1939.

PLAYNE, Somerset, and others: New Zealand: its History, Commerce, and Industrial Resources. London. Foreign and Colonial Compiling and Publishing Co. 1913.

POSPISIL, Bohumil: Wandering on the Islands of Wonders. Dunedin. Coulls, Somerville, Wilkie. 1935.

REES, Rosemary: New Zealand Holiday. London. Chapman & Hall. 1933.

REEVES, William Pember: The Long White Cloud (Aotearoa). 3rd edition, augmented by C. J. Wray. London. Allen & Unwin. 1924.

—– New Zealand. Illustrations by F. and W. Wright. 2nd edition. London. Black. 1927.

REISCHEK, Andreas: Yesterdays in Maoriland: New Zealand in the Eighties. Translated and edited by H. E. L. Priday. London. Cape. 1930.

BIOGRAPHY.

Collective.

BOLITHO, Henry Hector, and John Alan Edward Mulgan: The Emigrants. London. Selwyn & Blount. 1939.

COWAN, James: Pictures of Old New Zealand: the Partridge collection of Maori paintings by Gottfried Lindauer. Christchurch. Whitcombe & Tombs. 1930.

ELDER, John Rawson: The Pioneer Explorers of New Zealand. London. Blackie. 1929.

SCHOLEFIELD, Guy Hardy: Who's Who in New Zealand and the Western Pacific. 3rd edition. Wellington. Rangatira Press. 1932.

SRINNER, William Henry, and H. B. Leatham: Pioneer Medical Men of Taranaki, 1834-1880. New Plymouth. Avery. 1933.

(WILKINSON, Iris Guiver): Journalese, by Robin Hyde (pseud.). Auckland. National Printing Co. 1934.

General.

ALPERS, Oscar Thorwald Johan: Cheerful Yesterdays. London. John Murray. 1928.

(AYSON, William S.): Thomas … (the life of the late Thomas Ayson) by “Genus” (pseud.). Sydney. Halstead Press. 1937.

BATTEN, Jean: My Life. London. Harrap. 1938.

STEWART, William Downie: The Right Hon. Sir Francis Bell: his life and times. Wellington. Butterworth. 1937.

BROWN, Anne Earncliff: The Farmer's Wife: a country woman's calendar. Auckland. Whitcombe & Tombs. 1939.

MERRINGTON, Ernest Northeroft: A Great Colonizer: the Rev. Dr. Thomas Burns. Dunedin. Otago Daily Times. 1929.

BUTLER, John: Earliest New Zealand: the journals and correspondence of the Rev. John Butler. Compiled by R. J. Barton. Masterton. Palamontain and Petherick. 1927.

DON, Alexander: Memories of the Golden Road: a history of the Presbyterian Church in Central Otago. Dunedin. Reed. 1936.

ELLIOT, Sir James: Firth of Wellington. Wellington. Whitcombe & Tombs. 1937.

FULTON, Robert Valpy: Medical Practice in Otago and Southland in the Early Days. Dunedin. Otago Daily Times. 1922.

GODLEY, Charlotte: Letters from Early New Zealand. (For private circulation only, but available in the Turnbull and other large libraries of New Zealand.) Printed in England. 1936.

GRACE, Thomas Samuel: A Pioneer Missionary among the Maoris, 1850-1879, being letters and journals of Thomas Samuel Grace, ed. by S. J. Brittan, G. F., C. W., and A. V. Grace. Palmerston North. Bennett. 1928.

SCHOLEFIELD, Guy Hardy: The Life of William Hobson. Oxford University Press. 1934.

KENWAY, Philip T.: Pioneering in Poverty Bay (New Zealand). London. Murray. 1928.

LAWLOR, Pat: Confessions of a Journalist. Christchurch. Whitcombe & Tombs. 1935.

MACDONALD, Sheila: The Member for Mount Ida (Seobie Mackenzie). Wellington. Ferguson & Osborn. 1938.

ELDER, John Rawson: Samuel Marsden and his Lieutenants. Dunedin. Reed. 1934.

JOHNSTONE, Samuel Martin: Samuel Marsden. Sydney. Angus & Robertson. 1932.

MARSDEN, Samuel: Letters and Journals, ed. by J. R. Elder. Dunedin. Coulls, Somerville, Wilkie. 1932.

REED, Alfred Hamish: Marsden of Maoriland. Dunedin. Reed. 1938.

WILY, Henry Evan R. L. & Herbert Maunsell: Robert Maunsell, a New Zealand pioneer. Dunedin. Reed. 1938.

MEREDITH, George Llewellyn: Adventuring in Maoriland in the Seventies. Sydney. Angus & Robertson. 1931.

HALL, Thomas Donald Horn: Captain Joseph Nias and the Treaty of Waitangi. Wellington. Watkins. 1938.

WOODHOUSE, Airini Elizabeth: George Rhodes of the Levels and his Brothers. Christchurch. Whitcombe & Tombs. 1937.

ROBERTS, Vernon: Kohi Kohinga: reminiscences and reflections of “Ropata.” Wellington. Whitcombe & Tombs. 1929.

EVANS, Ivor: Man of Power: life of Baron Rutherford of Nelson. London. Stanley Paul. 1939.

FOCKEN, Charles M.: Lord Rutherford of Nelson. Auckland. Whitcombe & Tombs. 1937.

REED, Alfred Hamish (editor): Early Maoriland Adventures of J. W. Stack. Dunedin. Reed. 1935.

—– More Maoriland Adventures of J. W. Stack. Dunedin. Reed. 1936.

FODEN, Norman Arthur: James Stephen, Architect of Empire. Wellington. New Zealand Historical Bulletin no. 1. 1938.

HARROP, Angus John: The Amazing Career of Edward Gibbon Wakefield. London. Allen & Unwin. 1928.

O'CONNOR, Irma: Edward Gibbon Wakefield. London. Selwyn & Blount. 1929.

WARBRICK, Alfred: Adventures in Geyserland. Dunedin. Reed. 1934.

EUROPEAN WAR, 1914-1918.

BURTON, Ormond Edward: The Silent Division. Sydney. Angus & Robertson. 1935.

ROBERTSON, John: With the Cameliers in Palestine. Dunedin. Reed. 1938.

SMITH, Stephen John: The Samoa (New Zealand) Expeditionary Force, 1914-1915. Wellington. Ferguson & Osborn. 1924.

WAITE, Fred., and others: New Zealand Official History of the War. 4 vols. Wellington. Whitcombe & Tombs. 1919-23.

HISTORY.

General.

BEAGLEHOLE, John Cawte: New Zealand—a short history. London. Allen & Unwin. 1936.

CONDLIFFE, John Bell: Short History of New Zealand. Christchurch. Isitt. 1925.

—– New Zealand in the Making. London. Allen & Unwin. 1930.

COWAN, James: The New Zealand Wars: a history of the Maori campaigns and the pioneering period. Vol. 1, 1845-64. 1922. Vol. 2 (issued 1923), 1864-72. Wellington. Government Printer.

MORRELL, William Parker: The Provincial System of Government in New Zealand. London. Longmans. 1932.

SHRIMPTON, Arnold Wilfred, and Alan Edward Mulgan: Maori and Pakeha: a history of New Zealand. Christchurch. Whitcombe & Tombs. 1921.

Special.

ANDERSEN, Johannes Carl: Jubilee History of South Canterbury. Christchurch. Whitcombe & Tombs. 1916.

BEAGLEHOLE, John Cawte: Captain Hobson and the New Zealand Company: a study in colonial administration. Northampton, Mass. Smith College Studies in History. 1928.

BUICK, Thomas Lindsay: The French at Akaroa. Wellington. Government Printer. 1928.

—– New Zealand's First War. Wellington. Board of Maori Ethnological Research. 1926.

—– The Treaty of Waitangi. 3rd edition. New Plymouth. Avery. 1936.

—– Waitangi Ninety-four Years After. New Plymouth. Avery. 1934.

BURDON, Randall M.: High Country: the evolution of a New Zealand sheep-station. Auckland. Whitcombe & Tombs. 1938.

CAMBRIDGE History of the British Empire. Vol. 7. Part 2, New Zealand. Cambridge University Press. 1933.

COAD, Nellie Euphemia: New Zealand from Tasman to Massey. Wellington. H. H. Tombs. 1934.

FEATON, John: The Waikato War, together with some account of Te Kooti Rikirangi. Auckland. Brett. 1923.

GERARD, E. Stephen: Strait of Adventure. Wellington. Reed. 1938.

GILKISON, Robert: Early Days in Central Otago. Dunedin. Otago Daily Times. 1930.

—– Early Days in Dunedin. Auckland. Whitcombe & Tombs. 1938.

GRAY, Arthur James: An Ulster Plantation: the story of Kati Kati settlement. Dunedin. Reed. 1938.

HARROP, Angus John: England and the Maori Wars. London. New Zealand News. 1937.

LOVELL-SMITH, Edgar Macleod: Old Coaching Days in Otago and Southland. Christchurch. Lovell-Smith & Venner. 1931.

MAC DONALD, Colin A.: Pages from the Past. Blheim. Duckworth. 1933.

MC DONALD, Rod: Te Hekenga: early days in Horohenua. Compiled by E. O'Donnell. Palmerston North. Bennett. 1929.

MC KENZIE, Norman R.: The Gael Fares Forth. Wellington. Whitcombe & Tombs. 1935.

MORRELL, William Parker: New Zealand. London. Benn. 1935.

PRATT, Major Albert Rugby: Pioneering Days of Southern Maoriland. London. Sharp. 1932.

WARD, Louis E.: Early Wellington. Wellington. Whitcombe & Tombs. 1929.

WILSON, Sir James Glenny: Early Rangitikei. Christchurch. Whitcombe & Tombs. 1914.

SAMOA.

(BUCK, Peter Henry): Material Culture of Samoa, by Te Rangi Hiroa (Buck). Honolulu. Bishop Museum. 1931.

CHURCHWARD, Spencer: A New Samoan Grammar. Melbourne. Spectator Publishing Company. 1926.

HANDBOOK of Western Samoa: New Zealand External Affairs Department. Wellington. Government Printer. 1925.

KEESING, Felix M.: Modern Samoa: its government and changing life. London. Allen & Unwin. 1934.

MASTERMAN, Sylvia: The Origins of International Rivalry in Samoa, 1845-84. London. Allen & Unwin. 1934.

MEAD, Margaret: Coming of Ago in Samoa. New York. William Morrow. 1928.

NEFFGEN, H.: Grammar and Vocabulary of the Samoan Language. London. Kegan, Paul, Trench, Trubner, and Co. 1918.

NEW ZEALAND Institute of International Affairs: Western Samoa, Mandate or German Colony? Wellington. Tolan Print. 1937.

ROWE, N. A.: Samoa under the Sailing Gods. London. Putnam. 1930.

WATSON, Robert Mackenzie: History of Samoa. Wellington. Whitcombe & Tombs. 1918.

WESTBROOK, George Egerton Leigh: Gods who Die. New York. Macmillan. 1925.

COOK ISLANDS.

(BUCK, Peter Henry): Material Culture of the Cook Islands, by Te Rangi Hiroa (Buck). Memoirs of the Board of Maori Ethnological Research. Vol. 2. New Plymouth. Avery. 1927.

COWAN, James: Suwarrow Gold. London. Jonathan Cape. 1936.

GILL, William Wyatt: Rarotongan Records. (From the Journal of the Polynesian Society.) New Plymouth. 1916.

NAURU ISLAND.

ELLIS, Albert Fuller: Ocean Island and Nauru. Sydney. Angus & Robertson. 1935.

ROSS DEPENDENCY.

No book has been written dealing exclusively with the Ross Dependency, but a list of books dealing with this region incidentally may be found in the 1929 number of the Year-Book. A good deal of information regarding the area is contained in “ Antarctica—a Treatise on the Southern Continent.” by J. Gordon Hayes, London. The Richards Press. 1928.

(d) LIST OF ARTICLES ON SPECIAL SUBJECTS APPEARING IN PREVIOUS ISSUES OF THE YEAR-BOOK.

Article onAppeared for the Last or Only Time in the Year-Book of
Year.Page.
Acclimatization1,894430
Agriculture in New Zealand (by M. Murphy, F.L.S.)1,912809
“Britomart,” Mission of, at Akaroa in August, 18401,9271,012
Building-stones1,892194
Cancer in New Zealand—a statistical study1,926889
Chatham Islands, the1,900531
Cheviot Estate, the1,895264
Christchurch to West Coast, journey from1,899548
Coal-deposits of New Zealand, the1,900479
Cook Islands, the laws of1,902573
Co-operative system of constructing public works1,894234
Dairy Farm Survey1,938429
Education system of New Zealand, the1,925816
Effect of nativity order on infant mortality1,925835
Exotic trees in Canterbury1,904569
External trade of New Zealand, the1,915858
Forest-trees and the timber industry1,899470
Frozen-meat trade, the1,894311
Gold-dredging industry, the1,899509
Government training-ship “Amokura”1,913942
Hanmer Thermal Springs1,905631
Hen p industry, the1,900477
H.M.S. “New Zealand”1,913932
Kauri-gum1,900489
Labour in New Zealand1,894362
Lakes of New Zealand1,93211
Land and income tax assessment1,913884
Laws of England and New Zealand, difference between1,896281
Live-stock production—A review based on standard values and units1,929990
Local Government in New Zealand1,925845
Maori, ancient, his amusements, games, &c.1,907707
Maori, ancient, his clothing1,908734
Maori, chant (tangi)1,907711
Maori, colour-sense of the1,905637
Maori, marriage customs1,906638
Maori, mythology1,900536
Maori, neolithic, the1,902578
Maori, place-names1,919936
Maori, religion1,901530
Maori, sociology1,903641
Maori, songs1,908739
Marlborough Sounds, the1,901517
Midland Railway, the1,894386
Mineral waters of New Zealand1,913896
Moa, heir of the1,899517
Mortality rates, New Zealand1,927995
Mount Cook, a night on1,900525
Mount Cook, district, the1,899554
Mount Cook, its glaciers, and the Hermitage1,898552
Mount Sefton, ascent of1,900519
New Zealand Contingents for South Africa1,900449
New Zealand International Exhibition1,907701
Otago lakes, the1,901523
Patents, designs, and trade-marks1,893350
Pumice-stone deposits of New Zealand1,900486
Railways in New Zealand, their history and progress1,894377
Rivers of New Zealand1,9326
Ross Dependency1,938900
Scenic wonderland, a1,898565
Sheep, crossbreeding of1,894308
Sheep-farming1,894302
Shipping companies—  
  New Zealand Shipping Company1,895392
  Shaw, Savill, and Albion Company1,895393
  Union Steam Ship Company of New Zealand1,895389
Southern Alps, the1,894474
State farms1,894243
Sydney Pageant, the1,901527
Terman intelligence tests in New Zealand schools1,925823
Thermal-springs district1,905614
Timber-trees of the world1,903605
Tokaanu to Raetihi1,899539
Topographical nomenclature of the Maori1,919936
Totalizator, the1,926838
Tree-planting1,906611
Tuhoeland1,899546
Varieties of soil1,892193
Wages and working-hours in New Zealand1,919860
Waihi Gold-mining Company1,897432
Waikato district and through to Wanganui1,899520
Waiouru to Mangaonoho1,899543
Wanganui River, up the, to Tokaanu1,900509
Wattle-growing in the Auckland Provincial District1,897430
Wellington-Manawatu Railway, the1,895381
Wellington Municipal Milk Supply1,925777
West Coast Sounds, the1,894482
White island, a day on1,906637

INDEX.

A.

Abattoirs, 398, 462-466.
Aborigines (see Maoris).
Accident Funds, 325, 328, 331, 332.
Accident Insurance, 717-722.
State, 721.
Accidents—
Aircraft, 360.
Automobile, 139, 205, 221-223, 347-349.
Causes of, 869.
Deaths from, 130, 131, 132, 139, 142, 149, 152, 205, 347, 360, 502, 916.
Frequency Rates, 866-868.
Industrial, 866-875, 916.
Mining, 502, 509. 866.
Railway, 139, 325, 866-875.
Time lost through, 872.
Traffic, 139, 347-349.
Tramway, 139.
Treated in Hospitals, 149, 152.
Acclimatization of Animal Life, 39.
Acclimatization of Fishes, 492-495.
Accommodation Licenses, 926.
Accounts, Public, 569-618.
Acreage and Yield of Crops, 428-445, 968.
Acreage of Holdings, 372.
Acts passed in 1939, 941-943.
Actuarial Valuation of Superannuation Funds, 641, 643, 644, 646.
Ad valorem Duties, 289.
Added Value in Manufacturing, 512, 513, 521-523.
Adjacent Islands, Population of, 80.
Adjustment of Farm Liabilities, 415-417.
Adjustment of Mortgages, 615, 745, 748.
Administration, 40-44, 46-49.
Adopted Children, 98.
Adult Education, 200.
Adult Suffrage, 48.
Adult Wage-rates, 807-812, 814-816.
Adulteration of Food, 158.
Advances—
Bank, 680, 684-688, 978.
Building Societies, 737-741.
By State (see State Advances and State Aid).
Advertising by Radio, 897.
Aerated-water Factories, 539.
Aero Clubs, 350, 357-359.
Aerodromes, 350, 357.
Aeronautical Radio Service, 368.
Afforestation, 470-473, 481-186, 912.
Bondholders, 909.
After-lifetime, Average, 116.
Age Benefits, 627, 635.
Age Distribution, 81.
Age, Mean—
At Death, 116.
At Marriage, 106.
33*
Agents, Overseas, 993.
Ages—
Of Cancer Decedents, 136.
Of Hospital Patients, 149.
Of Industries, 525.
Of Infants dying, 125-128, 143.
Of Injured Employees, 870.
Of Inmates of Charitable Institutions, 171, 172.
Of Inmates of Mental Hospitals, 174.
Of Issue left, 121, 123.
Of Maoris dying, 141.
Of Maoris in Prison, 214.
Of Migrants, 66.
Of Offenders probationed, 217.
Of Parents, 91, 92, 96, 97, 99, 121, 122.
Of Patients in Public Hospitals, 149.
Of Persons dying, 114-116, 141, 767.
Of Persons marrying, 105-107.
Of Population, 81.
Of Prisoners, 214.
Of Public-school Pupils, 185.
Of Traffic Accident Victims, 349.
Of Tubercular Decedents, 133.
Aggregate Private Income, 782, 878.
Aggregate Wealth, 767.
Aggregation of Land, 382.
Tax against, 585.
Agreement, Ottawa, 279, 288, 297.
Agricultural and Pastoral Production, 390-409, 918, 968.
Value of, 918.
Agricultural Bursaries, 198.
Agricultural Clubs, 191.
Agricultural Colleges, 181, 199.
Agricultural Machinery, 407, 542.
Agricultural Policy, Recent Developments in, 407-426.
Agricultural Produce—
Consumed locally, 404-406, 881-886.
Exported, 246-266, 404-406, 881.
Gross Farming Income, 400-406.
Price Index Numbers, 401, 402, 403, 798.
Restriction of Imports, 408.
Agricultural Workers Act, 831-833.
Agriculture, 396-469, 968.
Department of, 398.
(Emergency Powers) Act, 419, 422.
Executive Commission of, 424.
Research in, 398, 425.
Aides-de-Camp, 983.
Air Bases, 351.
Air Fatalities, 360.
Air Force, 235, 350, 351.
Air Mails, 353-355, 360-362.
Air Transport and Aviation, 350-362.
Aircraft, 350-362.
Aircraft Construction, 351.
Aircraft Licensing and Control, 352-359.
Aitutaki Island, 2, 948.
Alcoholic Liquors—
Consumption of, 888.
Duty on, 290, 291, 294, 583.
Sale of, 926.
Ale brewed, 534, 538.
Alienation of Land, 373, 381, 384, 386.
Aliens—
Migrants, 67.
Naturalization, 70.
Race Aliens, 67.
Allowances, Family, 623, 624.
Allowances, Sustenance, 581. 853, 854, 855.
Alluvial-gold Mining, 498, 499.
Alps, 3, 4, 934.
Amalgamation of Local Authorities, 654.
Amortization of Debt, 576, 578, 600, 606, 662, 664, 666, 668.
Amusements-tax, 583, 591, 593.
Analysis of Radio Programmes, 893, 898.
Anchorage (Suwarrow) Island, 2, 949.
Angling, 495.
Animal Life, 36-39.
Annexed Islands, 2, 945-954.
Annual Value Rating-system, 656.
Annuities, 711, 715.
Ante-natal Services, 170.
Anthracite, 502.
Anti-dumping Duty, 294.
Antimony-ore, 498.
Antipodes Islands, 1, 945.
Apiculture, 469.
Apolima Island, 955.
Appeal Court (see Courts).
Apples, 441.
Consumption of, 885.
Duty on, 409.
Exported, 246-266.
Purchase by State, 426.
Apprentices, 841.
Appropriations, Expenditure under, 576.
Arbitration Act, 807, 819, 833-835, 838-841, 941.
Unions registered under, 848-851.
Arbitration Court, 43, 807, 821, 833, 838, 935.
Award Wage-rates, 813-817.
Architectural Bursaries, 198.
Area—
Commanded by Irrigation Schemes, 419.
Of Cook and other Islands, 2, 948.
Of Forests, 471.
Of Lakes, 7.
Of Land Holdings, 371, 372, 769.
Of New Zealand, 1, 2, 371.
Of Orchards, 440, 441.
Of Provincial Districts, 73.
Of State Exotic Forests, 481-483.
Top-dressed, 438.
Under Crops, 428-445, 968.
Under Cultivation, 373, 428-445.
Army, 226-231.
Arrivals, 64-70, 964.
Articles on Special Subjects in Previous Issues, 1013.
Artillery, Permanent, 228.
Art-unions, 591, 928.
Asbestos, 502.
Asiatics, 67.
Asses, 446.
Assessable Income, 770-781.
Assessment Court, 671.
Assessment of Income-tax, 588, 779.
Assets—
Of Afforestation Companies, 484.
Of Bankrupts, 758, 759, 761, 982.
Of Banks, 680, 684, 978.
Of Building Societies, 741.
Of Electric-power Undertakings, 904.
Of Fire-insurance Companies, 724.
Of Friendly Societies, 734.
Of Life-assurance Companies, 715, 716.
Of Local Authorities, 663, 764.
Of Manufacturing Industries, 523, 524.
Of Reserve Bank, 680.
State, 763.
Assigned Estates, 757-762.
Assisted Immigration, 68.
Association for Country Education, 201.
Associations, Industrial, 851.
Assurance, Life, 708-716.
Asylums, 173-176.
Benevolent and Orphan, 170-172.
Atafu Island, 3, 959.
Atiu Island, 2, 948.
Atlantic Salmon, 494.
Auckland—
Bankruptcies, 759.
Broadcasting Stations, 893, 897.
Building Values, 555.
Dwelling Construction Costs, 568.
Dwellings, 551, 556.
Fires, 728.
Population, 75, 76, 78.
Rainfall, 17, 18, 27.
Retail Prices, 789-795.
Shipping, 308, 311-313.
Sunshine, 22, 27.
Temperature, 19, 20, 27.
Trade of Port, 303-307, 311.
Tramways, 327, 329-332.
Transport District, 651.
Valuation of Land, 675.
Wind, 23.
Auckland Islands, 1, 945.
Audit of Expenditure, 570.
Auriferous Mining, 498-500.
Australia—
New Zealand Tourist and Trade Commissioner in, 993.
Railways, 321.
Reciprocal Trade with New Zealand, 300.
Trade Commissioner in New Zealand, 994.
Authority, Statistical, 51.
Automatic Telephones, 366.
Automobiles (see Motor-vehicles).
Autonomy, Local (see Local Authorities).
Avarau (Palmerston) Island, 2, 949.
Aviation and Air Transport, 350-362.
Royal New Zealand Air Force, 235, 350, 351.
Avifauna, 37.
Award Rates of Wages, 813-817.

B.

“Bachelor Tax,” 586.
Bachelors marrying, 104, 105, 107.
Backward Children, 194.
Bacon and Ham, Consumption of, 883.
Bacon produced, 537, 883.
Balance of Overseas Payments, 241-243.
Balance of Trade, 236-244.
Balances of Public Accounts, 570.
Balance-sheet, State, 763.
Banking and Currency, 677-704, 978, 979.
Bank-notes, 678, 680, 683, 684, 690, 702-704, 978.
In Circulation, 683, 690, 978.
Tax on, 583, 591.
Bankruptcy, 757-762, 982.
Banks Indemnity (Exchange) Act, 598, 706.
Banks, Overseas Funds of, 243, 692.
Banks. Savings—
Post Office, 692-694, 979.
School, 694.
Trustee, 695.
Barley, 425, 429, 430, 433.
Barren Land, 371, 373.
Basic Wage, 813, 833-835.
Baths, Medicinal, 935-941.
Beans, 429, 430.
Beds, Hospital, 167, 169.
Beef, Chilled, 262, 263, 421, 453, 464, 533.
Beef, Consumption of, 882.
Beef exported, 255, 262, 263, 266, 453, 464.
Beer, Consumption of, 888.
Beer Duty, 290, 291, 294, 583.
Beer produced, 534, 538.
Bees, 469.
Beet, Sugar, 422.
Belgium, Trade Agreement with, 301.
Benefit Societies, 733-736.
Benefits, Social Security, 168, 626-635.
Benevolent Asylums, 170-172.
Benevolent Societies, 733-736.
Bibliography—
General, 1002-1012.
Statistical, 50-57.
Big-game Fishing, 491.
Bills, Treasury, 598, 601, 603, 687.
Birds, Introduced, 39.
Birds, Native, 37.
Birthday Honours, 986.
Birthplaces of Persons naturalized, 71.
Births, 84-100, 965.
In Cook Islands, 950.
In Niue, 953.
In State Maternity Hospitals, 169.
Biscuit-factories, 538.
Bitumen-surfaced Roads, 334.
Bituminous coal, 502.
Blind, Pensions for the, 623, 630.
Blind, School for the, 194.
“Blue-books,” 50.
Blue Cod, Fixed Price for, 787.
Board of School-children, 191.
Boat-building Works, 544.
Boats, Fishing, 489.
Bobby Calves, 412, 424.
Boer War Pensions, 624, 639.
Boilers, Inspection of, 915-917.
Bond-issuing Companies, 484, 909.
Boot and Shoe Factories, 535, 540.
Boots and Shoes, Consumption of, 888.
Boroughs, 649, 653-669.
Bridges in, 334.
Capital and Unimproved Values, 673, 675.
Debts, 666, 977.
Employees of, 858.
Housing, 555, 556, 658.
Mileage of Streets, 334.
Population of, 78.
Borrowers from Building Societies, 739.
Borrowing-powers of Local Authorities, 655.
Borstal Institutions, 212, 215.
Boundaries of New Zealand, 1-3.
Bounty Islands, 1, 945.
Brass-foundries, 542.
Bread, Consumption of, 884.
Bread, Fixed Price for, 786, 787.
Bread, Law re Sale of, 158.
Breeding-ewes, 447, 448.
Breeds of Cattle, 453, 454.
Breeds of Sheep, 448.
Breweries, 534, 538.
Bricks, Consumption of, 546.
Brickworks, 541.
Brides and Grooms, 101-109.
Bridges, 334.
Bridle-tracks, 334.
Brigades, Fire, 732.
Briquetting and Carbonizing of Coal, 503.
British Nationality, 70.
British Phosphates Commission, 960.
British Preference, 279, 288-291, 297-301.
British Sovereignty, 2, 41.
British Trade Representatives, 994.
Broadcasting, 891-898, 931.
Commercial, 897.
For Schools, 196.
Time Signals, 894, 931.
Weather Forecast, 15, 356, 894.
Brown-top, 437.
Budgets, Household, 788, 796.
Building and Construction, 545-568.
Building Costs, 561, 565, 567, 568.
Building Materials, 546, 565.
Building permits, 553-559.
Building Societies, 737-741.
Buildings, 545-568.
Building-stones, 505.
Bullion, Exports of, 245-266, 498, 972.
Bullion Production, 498.
Bureau of Industry, 511, 919-921.
Bursaries, 198.
Bush (see also Flora), 374, 475.
Bushel Units, Weights of, 428.
Business Failures, 757-762, 982.
Business Premises erected, 566.
Butter (see Dairy-produce).
Butter-fat Yields, 457.
Butterflies, 39.
By-election, 926.

C.

Cabinet, 46.
Members of, 984.
Cabinetmaking, 544.
Cable Tramways, 333.
Cables, Ocean, 368.
Cadastral Maps, 394.
Cadets, 226, 229.
Call, Deposits at, 683, 685-687, 741.
Campbell Island, 1, 945.
Camps, Health, 161.
Canada, Reciprocity with, 301.
Canadian Trade Commissioner, 994.
Cancer, 121, 130, 131, 132, 134-136, 142, 149, 151.
Candle-factories, 539.
Capital—
Expenditure of Government, 575.
Invested in Electric-power Undertakings, 900-906.
Invested in Factories, 524.
Invested in Railways, 318, 981.
Invested in Tramways, 328, 331.
National, 767.
Of Banks, 677, 680, 682.
Of Joint-stock Companies, 909-914.
Capital Value of Land, 671-676.
Rating on, 656.
Carbonizing and Briquetting of Coal, 503.
Cargo handled at Ports, 303-307.
Car-miles run by Trams, 329.
Carrots, 436.
Carry-over of Wool, 450, 451.
Casein (see Dairy Produce).
Cassiterite, 501.
Casualties in the War (1914-18), 230.
Casualties. Shipping, 315.
Cattle, 446, 453, 464, 969.
Causes of Accidents, 869.
Causes of Death, 120, 130-143.
Causes of Fires, 730.
Causes of Industrial Disputes, 862.
Causes of Insanity, 173.
Cawthron Institute, 425.
Cement-concrete Roads, 334.
Cement-works, 541.
Cemeteries, 160.
Census, 58-63, 72-75, 80, 81, 851, 996.
Income Statistics, 782.
Of Dwellings, 547.
Of Libraries, 928.
Of Poultry, 468.
Ordinance, 50.
Unemployment Statistics, 852.
Centennial Celebrations, 44.
Centennial Coinage, 701.
Central Reserve Bank, 243, 677-680, 690-692, 697, 702-707, 943.
Cereals, 429-434.
Consumption of, 884.
Certificated Teachers, 195.
Certificates, Engine-drivers', 916.
Certificates, Land Titles, 376.
Certificates, Marine Officers', 313.
Chaff, 432.
Charitable Aid, 162, 163, 164, 165.
Charitable Institutions, 162, 179.
Chatham Islands, 1, 944.
Flora, 29.
Schools, 181.
Cheese (see Dairy-produce).
Chemical Fertilizer Works, 536, 544.
Chemists, Registration of, 159.
Cheque-paying Banks, 677-692.
Chewings Fescue, 437.
Chief Justice, 985.
Child Welfare, 182, 192-194. 217-219.
Childbirth, Deaths in, 136-138, 149, 152, 169.
Children adopted, 98.
Children born, Sexes of, 88-90, 98, 100.
Children left by Parents dying, 121-124.
Children, Offences by, 193, 217-219.
Children under One, Deaths of, 124-130, 142, 965.
Children's Courts, 192, 217-219.
Children's Homes, 170-172, 193.
Chilled Beef, 262, 263, 421, 453, 464, 533.
Chinese, 67.
In Nauru, 962.
In Western Samoa, 956.
Chou Moellier, 436.
Christchurch—
Bankruptcies, 759.
Broadcasting Stations, 893, 897.
Building Values, 555.
Dwelling Construction Costs, 568.
Dwellings, 551, 556.
Fires, 728.
Population, 75, 76, 79.
Rainfall, 17, 18, 27.
Retail Prices, 789-795.
Sunshine, 22, 27.
Temperature, 19, 21, 27.
Tramways, 327, 329-332, 651.
Valuation of Land, 675.
Chronological List of Events, 996-1001.
Cinematograph Film-hire Tax, 583, 593.
Cinnabar, 501.
Cities, Population of, 76, 78, 79.
Citrus Fruits, 422, 424, 440-443.
Consumption of, 885.
City and Town Maps, 394.
Civic Planning, 658.
Civil Aviation, 352-362.
Civil Law Cases, 204.
Civil List, 46.
Civil Marriages, 101, 108.
Civil Service (see Public Service).
Claims, Insurance, 708-732.
Classification of Industries, 526-528.
Classification of Public Debt, 599.
Clearings, Bank, 688.
Clergy of each Denomination, 108.
Marriages by, 108.
Climate, 15-27.
Clinics, Ante-natal, 170.
Clinics, School Dental, 161.
Clocks, Public, 932.
Clothing, Consumption of, 888.
Clothing-factories, 534, 539.
Clothing-prices, 795, 796.
Clover-seed (see Grass-seed).
Club Charters, 926.
Clubs, Aero, 350, 357-359.
Clubs, Rifle, 229.
Clubs, Working-men's, 733.
Coachbuilding-works, 543.
Coal, Consumption of, 502, 519, 889.
Coal exported, 246, 248, 249, 250, 262, 263, 306, 498.
Coal Production, 497, 502.
Coal used in Factories, 519.
Coal-miners' Relief Fund, 509, 830.
Coal-mining, 502-504.
Coal-resources, 502, 503, 507.
Coastal Shipping, 309, 312.
Coastal Trade, Tonnage, 304, 305, 307.
Coastal Vessels registered, 309.
Coast-line, 3.
Cocksfoot, 437.
Coin held by Banks, 678, 680, 681, 684, 978.
Coin imported and exported, 244, 247, 248, 251, 271, 272, 970.
Coinage, 699-702.
Coin-in-slot Telephones, 366.
College of Pharmacy, 159.
Colleges, Training, 194.
Colleges, University, 180, 181, 197-199.
Collieries, 502-504.
Collieries, State, 503.
Colonization, 41.
Combined Schools, 181, 187, 188.
Commerce, Overseas, 236-307, 309-313, 970-973.
Commercial Afforestation, 484-486.
Commercial Air Transport, 352-362.
Commercial Aircraft, Licensing and Control, 352.
Commercial Broadcasting, 897.
Commercial Failures, 757-762, 982.
Commissions, Mortgagors' Liabilities Adjustment, 416, 743-748.
Commodities, Consumption of, 876-890.
Community Centre, 202.
Companies, Bond-issuing, 484, 909.
Companies, Co-operative Dairy, 455.
Companies, Income of, 771-781, 784.
Companies, Joint-stock, 909-914.
In Manufacturing Industries, 526.
Companies, Private, 909-914.
Companies, Share Price Indexes, 804-806.
Companies. Taxation of, 588, 591, 625, 771-781, 784.
Comparisons with Other Countries—
Birth-rates, 88.
Cancer Death-rates, 135.
Cattle, Number of, 454.
Consumption of Primary Products, 883.
Dairy Cows, Number of, 462.
Dairy Produce, Production of, 459.
Death-rates, 117, 120.
Friendly Societies, 736.
Health Insurance, 822.
Imports of British and Foreign Origin, 278-280.
Imports of United Kingdom Origin, 278-280.
Infant-mortality Rates, 124.
Comparisons with Other Countries—contd.
Live-stock (see Cattle, Sheep, &c.).
Dairy Produce, 459.
Wool, 449, 451.
Puerperal Septicæmia, 138.
Septic Abortion, 138.
Marriage-rates, 103.
Dairy Produce, 459.
Wool, 449, 451.
Puerperal Septicæmia, 138.
Septic Abortion, 138.
Maternal Mortality (see Puerperal Death-rates).
Dairy Produce, 459.
Wool, 449, 451.
Puerperal Septicæmia, 138.
Septic Abortion, 138.
Natural-increase Rates, 88.
Dairy Produce, 459.
Wool, 449, 451.
Puerperal Septicæmia, 138.
Septic Abortion, 138.
Pigs, Number of, 462.
Dairy Produce, 459.
Wool, 449, 451.
Puerperal Septicæmia, 138.
Septic Abortion, 138.
Population, 83.
Dairy Produce, 459.
Wool, 449, 451.
Puerperal Septicæmia, 138.
Septic Abortion, 138.
Production—
Dairy Produce, 459.
Wool, 449, 451.
Puerperal Septicæmia, 138.
Septic Abortion, 138.
Puerperal Death-rates, 138.
Puerperal Septicæmia, 138.
Septic Abortion, 138.
Radio Licenses, 896.
Railways, 321.
Share Prices, 806.
Sheep, Number of, 449.
Suicidal Death-rates, 140.
Telephones to Population, 365.
Tuberculosis Death-rates, 134.
Vital Statistics (see Births, Deaths, &c.).
Wool, 450, 451, 452.
Compensation, Workers', 717, 718, 721, 843-845, 867, 868.
Compulsory Education, 177.
Compulsory Military Service, 226.
Conciliation Councils, 838-840.
Concrete-surfaced Roads, 334.
Condensed-milk Factories, 533, 537.
Conditional Licenses, 926.
Confectionery-factories, 538.
Confinement—
Deaths in, 136-138, 149, 169.
Maternity Hospital Cases, 169.
Conflagrations, 728.
Conjugal Condition of Persons marrying, 104.
Conjugal Rights, Restitution of, 110.
Consent to Marriage, 101.
Conservation of Forests, 471-473.
Consolidated Fund, 574-576, 975.
Constitution, 46.
Of Cook Islands, 947.
Of Local Districts, 648-653.
Of Western Samoa, 955.
Construction and Building, 545-568.
Construction of Railways, Cost of, 317, 981.
Construction of Roads, 334-341.
Consuls, Foreign, 994.
Consumers' Goods—Imports of, 273, 274.
Consumption of—
Building Materials, 546.
Butter in United Kingdom, 460.
Coal, 502, 519, 889.
Commodities, 876-890.
Electricity, 332, 518, 889.
Farm-produce, 404-406, 881-886.
Margarine, in United Kingdom, 460.
Meat, 882-884.
Timber, 479, 546.
Wheat and Flour, 432, 884.
Wool, 450, 543.
Contagious Diseases, 144, 149, 150, 153, 160.
Contribution, Social Security, 625.
Control Survey, 390.
Conversion of Debt, 601, 668.
Conveyance of Children to School, 190.
Convictions in Magistrates' Courts, 208, 209, 967.
Convictions in Supreme Court, 210, 967.
Convictions, Summary, 208, 209, 967.
For Drunkenness, 208, 220.
For Traffic Offences, 208, 221-223.
Of Juveniles, 217-219.
Of Maoris, 220.
Of Women, 219.
Cook and other Pacific Islands, 2, 946-954.
Bibliography, 1012.
Exports to, 267.
Imports from, 287.
Population, 58, 950, 952.
Ràdio-stations, 950.
Trade, 951, 953.
Cook's Visits to New Zealand, 41.
Co-operative Dairy Companies, 455.
Co-operative Pig Marketing, 420.
Co-operative Public Works, 822, 847.
Copper, 501.
Cordial-factories, 539.
Corn Crops, Acreage and Yield of, 429-434, 968.
Coroners' Inquests, 205.
Correspondence Classes, 181, 191.
Cost of Living, 785-806.
Cost of Railway Construction, 317, 981.
Costs—
Building, 561, 565, 567, 568.
Dairy-farm, 414.
Dwelling, 567, 568.
Farm, 403, 415-418, 423, 424.
Roading, 340.
Council, Executive, 46.
Members of, 984.
Council, Legislative, 42, 46.
Members of, 987.
Council of Primary Production, 425.
Counties, 648, 653-669.
Bridges in, 334.
Capital and Unimproved Values, 672-674.
Debt, 666, 977.
Employees of, 858.
Housing, 557.
Mileage of Roads, 334.
Population of, 77.
Country Education, 201.
Country Lands, Mortgages on, 751, 755.
Country Library Service, 201.
Country Quota, 47.
County Maps, 394.
Courts—
Appeal, 212.
Arbitration, 43, 897, 821, 833, 838, 985.
Assessment, 671.
Bankruptcy, 757.
Children's, 192, 217-219.
Divorce, 109.
Judges of, 985.
Magistrates', 204, 207-209, 219, 967.
Native Appellate, 385.
Native Land, 385.
Of Review, 416, 745.
Supreme, 109, 204, 209-211, 748, 967, 985.
Cover, Fire, 725.
Cow-testing, 398, 453.
Crayfish, 490.
Creameries, 456.
Cream-separators on Farms, 407.
Credit, Rural Intermediate, 616.
Creditors' Petitions, 758.
Credits-in-aid, 570-572.
Crematoria, 160.
Crested Dogstail, 437.
Crime, Law and, 204-225.
Criminals, Habitual, 215.
Crops, 372, 373, 427-145, 968.
Crown Lands, 371, 378-383.
Crown Tenants, 381.
Advances to, 379-383.
Cultivation, Area in, 373, 428-445.
Currency and Banking, 677-704, 978, 979.
Curriculum, School, 183, 188.
Curtis Islands, 945.
Customary Land, 384.
“Customs Aerodromes,” 353.
Customs Tariff and Revenue, 288-302, 408.
Customs Taxation, 288 302, 583, 584.
Cycle-works, 543.

D.

Dairy Cows, 446, 453, 969.
Dairy Industry, 400-406, 412-415, 455-462, 533, 537.
Dairying Machinery, 407, 542.
Dairy-produce, 455-462.
Consumption of, 404-406, 882-884.
Export of, 246-266, 456-461, 972.
Export Price Indexes, 801-803.
Factories, 423, 456, 533, 537, 912.
Fixation of Prices, 413, 787.
Grading of, 455.
Gross Farming Income, 400.
Guaranteed Prices of, 413.
Imports into United Kingdom, 460.
Local Consumption of, 404-406, 882-884.
Marketing of, 412-415, 458.
Processing of, 533, 537.
Production of, 456, 533, 537, 918.
Purchase for War Purposes, 426.
Retail Prices Index, 791, 792, 794, 796.
Danger (Pukapuka) Island, 2, 949.
Dangerous Drugs and Poisons, 159.
Dates of Maturity of Public Debt, 602, 603, 669.
Dates of Principal Events, 996-1001.
Daylight Saving, 931.
Dead-births, 98-100, 129, 169.
Deaf, School for the, 182, 193, 191.
Dealing in Coin, Restriction on, 702.
Death Duties, 583, 589-591.
Estates certified for, 766.
Deaths, 86, 112-143, 965.
Accidental (see Accidents).
Distribution over Year, 114.
Due to Earthquakes, 12.
From Air Accidents, 360.
From Infantile Paralysis, 146, 151.
From Puerperal Causes, 136-138, 149, 152, 169.
From Violence, 130, 131, 132, 139, 142, 149, 152, 205, 347.
In Coal-mining Accidents, 502.
In Hospitals, 148-152.
In Mental Hospitals, 175.
Of Friendly Society Members, 734.
Of Infants, 124-130, 142, 965.
Of Insured Persons, 710, 712, 714.
Of Maoris, 85, 141-143.
Debentures, General and Local Government, 588, 597, 655, 664.
Debenture-tax, 588.
Debits, Bank, 688.
Debt, Conversion of, 601, 668.
Debt of Local Authorities, 166, 609, 663-669 976, 977.
Debt, Public, 597-609, 974.
Debtors' Petitions, 758.
Deceased Persons, Estates of, 766.
Decrees in Divorce, 110.
Deeds Registration, 375.
Defective Children, 182, 194.
Defectives, Mental, 173-176.
Defence, 226-235.
Expenditure on, 235, 600.
Pensions, 639.
Deferred-payment Lands, 378, 379, 381.
Deficits, 574.
Degrees, University, 155, 182, 197, 198.
Demography, 58-83.
Denominational Schools, 181, 186.
Density of Population, 81.
Dental Nurses, 161.
Dental Treatment of School-children, 161.
Dentists, Registration of, 156.
Departments, Government, 989.
Reports of, 55-57.
Departures, 64-68, 964.
Dependencies, 1, 944-963.
Dependent Children, Care of, 182, 192-194, 217-219.
Dependants of Soldiers, 636.
Deposits, 680, 683, 685-687, 692-696, 697-699, 741, 978, 979.
By Insurance Companies, 708, 723.
Interest-rates, 697-699, 741.
With Building Societies, 696, 699, 741.
With Local Authorities, 699.
With Savings-banks, 692-696, 698, 979.
With Trading Companies, 696, 699.
Depreciation Allowance, 588.
Depreciation of New Zealand Currency, 423, 704-707.
Designs, Registration of, 915.
Destination—
Of Emigrants, 67.
Of Exports, 248, 251-264.
Of Shipping, 310.
Detention, Reformative, 193, 213, 215.
Development of Lands, 379, 387.
Diagrams (see Graphs).
Diphtheria, 120, 131, 132, 142, 143, 144, 145, 150, 153.
Diplomas, 155, 182.
Disabilities from Industrial Accidents, 873-875.
Discharged Mortgages, 749, 751.
Discharged Soldiers (see Soldiers).
Discharged Soldiers Settlement, 380, 383, 580, 615.
Discount Rates, 697.
Discovery of New Zealand, 40.
Diseases, Notification of, 144, 153.
Diseases, Principal, Deaths from, 131, 132, 142, 143, 150-152.
Diseases treated in Hospitals, 149-152.
Disputes, Industrial, 838-841, 859-865.
Dissolution of Marriage, 109-111.
Dissolution of Parliament, Dates of, 983.
Distribution of Marriages, 104.
Distribution of Population, 72-81.
District High Schools, 181, 187, 966.
District Nurses, 170.
Districts, Electoral, 47, 922-926.
Districts, Local, 647-653.
Diversification of Farm Production, 420-422.
Dividend (Totalizator) Duty, 592.
Dividends, Bank, 682.
Dividends, Bankruptcy, 758, 759, 982.
Divorce, 109-111.
Divorced Persons remarrying, 104.
Domains, Public, 374.
Domestic-science Bursaries, 198.
Domicile of Debt, 597, 602, 667.
Dominion of New Zealand, 1, 43, 944.
Draft Wool Allowance, 425.
Drainage Districts, 650, 653-669, 858.
Dredging, Gold, 499.
Drilling for Oil, 504.
Drills, Prospecting, 508.
Drivers' Licenses, 341.
Drowning Accidents, 139, 205.
Drugs, 158, 159.
Drunkenness, 208, 220, 222, 223.
Ducks, 468.
Dunedin—
Bankruptcies, 759.
Broadcasting Stations, 893, 897.
Building Values, 555.
Dwelling Construction Costs, 568.
Dwellings, 551, 556.
Fires, 728.
Population, 75, 76, 79.
Rainfall, 17, 18, 27.
Retail Prices, 789-795.
Shipping, 308, 311-313.
Sunshine, 22, 27.
Temperature, 19, 21, 27.
Trade of Port, 303-307, 311.
Tramways, 327, 329-332.
Valuation of Land, 675.
Wind, 23.
Duration of Incapacity, 872.
Duration of Marriage, 94, 111.
Duration of Strikes, 860.
Dutiable Imports, 288-292, 295.
Duties—
Customs and Excise, 288-302, 583, 584.
Death, 583, 589-591.
Excise, 291, 294, 584.
Export, 292, 583, 958.
On Interest Receipts, 583, 591, 594, 601.
On Lottery Tickets, 591, 928.
On Overseas Passenger-tickets, 591.
Stamp, 591.
Dwellings—
Advances for, 388, 610-618, 737-741.
Census Enumerations, 547, 551.
Costs, 567, 568.
Erected, 554-559, 566-568.
Maori, 388.
Private, 547, 549, 551, 554-559, 566-568.
Rents, 552, 748, 792-794, 796, 837.
State, 552.
Untenanted, 551.
Workers' 552, 612-615, 617, 836.

E.

Early History, 40-42.
Early Statistical Records, 50.
Earned Income, 775.
Reduced Tax on, 586.
Earthquakes, 10-15.
Deaths due to, 12.
Economic Pensions, 637.
Eczema, Facial, 425.
Education, 177-203, 966.
Education Boards, 177-179.
Education Department, 177-181, 182.
Examinations, 182, 189.
Education Endowments, 182, 379.
Education, Expenditure on, 182, 191.
Education Gazette, 196.
Educational Associations, Workers', 200.
Educational Research, 199.
Effective Wage-rates, 809.
Eggs, 412, 421, 424, 885.
Elections, General, 921-925.
Electoral Districts, 47, 922-926, 927.
Electoral Qualifications, 48, 653.
Electors, Compulsory Registration of, 48.
Electric—
Current, 518, 541, 899-907.
Power Boards, 651, 653-669, 900, 977.
Power in Factories, 518.
Power on Farms, 407.
Railways, 316, 317.
Tramways, 327-332.
Electricity, Consumption of, 889.
By Tramways, 332.
Electricity Generation and Supply, 541, 899-907.
Emergency Benefits (Social Security), 633, 635.
Emergency Employment Charge, 581, 593, 625.
Emergency Regulations Act, 841, 941.
Emigration, 64-68, 69, 964.
Employees—
Afforestation Companies, 485.
Building and Construction, 548, 549, 561-564.
Electric-supply, 903.
Factory, 512, 513-518, 526-528.
Fishing Industry, 489.
Hospital Boards', 858.
Legislation affecting, 820-847.
Local Authority, 858.
Mining, 498, 502, 504, 506.
Postal, 370.
Public Service, 992.
Public Works, 857.
Railway, 324.
Tramway, 328, 333.
Unions of, 807, 820, 848-851.
Wage-rates of, 517, 563, 807-817, 825-829, 832.
Employers' Liability, 717, 718, 721, 843-845, 867, 868.
Insurance, 718.
Employers' Unions, 848.
Employment and Unemployment, 852-858.
Employment Bureaux, 852, 855.
Employment Placement Scheme, 855.
Employment Promotion, 852-858.
Fund, 581, 625, 853.
Taxation, 581, 583, 593.
Employment, Seasonal Fluctuations in, 528, 858.
Enactments affecting Labour, 820-847.
Enactments of 1939, 941-943.
Endowments, Education, 182, 379.
Endowments, National, 379, 470.
Engine-drivers' Certificates, 916.
Engineering Bursaries, 198.
Engineering-works, 542.
Engines—
Employed in Factories, 518.
Employed on Farms, 407.
Inspection of, 915.
Railway, 318.
Ensilage, 427, 429, 436, 438.
Entertainments-tax, 583, 591, 593.
Entrepôt Trade, 251, 254, 263.
Entry, Ports of, 303.
Epidemic Pensions, 623, 624.
Estate Duty, 589.
Estates—
Acquired for Settlement, 382.
Administered by Public Trust Office, 908.
Assigned, 757-762.
Passed for Death Duty, 766.
European Settlement in New Zealand, 41.
Examinations—
Education Department, 182, 189.
Electric-tram Drivers', 916.
Engine-drivers', 916.
Marine Officers', 313.
Medical, of School Children, 160.
Medical Practitioners', 155.
Mining, 509.
Of Motor-vehicles, 341.
University, 155, 182.
Excess-profits Tax, 586.
Exchange, Currency, 423, 678, 704-707.
Banks Indemnity (Exchange) Act, 598, 706.
Effect On Trade Statistics, 236-240.
Exchange Pool, 706.
Expenditure on, 576, 707.
New Zealand—London, 705.
Reserve, 680.
Exchanges, Telephone, 366.
Excise Duties, 291, 294, 584.
Taxation by Means of, 294.
Executive Council, 46.
Members of, 984.
Exemptions from Taxation—
Income-tax, 585-587, 588, 777.
Land-tax, 586, 587, 768.
Exhibition, Centennial, 45.
Ex-nuptial Births, 94, 96.
Exotic Trees, Planting of, 481-486.
Expectation of Life, 116.
Expeditionary Forces, 230, 1001.
Expenditure, Audit of, 570.
Expenditure, Broadcasting, 896, 898.
Expenditure, Local Authority, 164, 337, 662, 856, 976.
Expenditure on Defence, 235, 600.
Expenditure on Education, 182.
Expenditure on Naval Defence, 235.
Expenditure, Public, 569-582, 975.
Explorers, 40.
Export Control—
Dairy-produce, 412, 458.
Export Licenses, 243, 706.
Fruit, 441.
Honey, 469.
Kauri-gum, 505.
Meat, 466.
Export Duties, 292, 583, 958.
Export Licenses, 243, 706.
Export Prices, 264-266, 800-802, 803, 804.
Export Surplus, 237-243.
Exports, 236-267, 303, 970-973.
Commandeer of, 43, 425.
Excess of Imports over, 237, 238, 240.
Minerals, 246-266, 498.
Of Ports, 303-307.
Specie, 244, 247, 248, 251, 271, 272, 970.
Timber, 246-266, 480, 973.
Valuation of, 239, 245.
Value in British Currency, 236-243.
Value on Gold Basis, 238.
Values, Index Numbers, 238.
Volume, Index Numbers, 238, 264.
External Migration, 59, 64-70, 964.
External Trade, 236-287, 970-973.
Extra-marital Conceptions, 94.

F.

Facial Eczema, 425.
Factories, 510-544.
Accidents in, 866-875.
Act, 825.
Classification of, 526-528.
Dairy, 423, 456, 533, 537, 912.
Employees, 512, 513-518, 526, 527.
Expenses of Operation, 512-523.
Growth of Production, 512.
Prices of Materials, 530-533.
Prices of Products, 530-533.
Promotion of, 510-511.
Size of, 515.
Fair Rents Act, 793, 824, 837, 943.
Fakaofu Island, 3, 959.
Fallow Land, 429.
Family Allowances, 623, 624.
Family Benefits, 629, 635.
Family Budgets, 788, 796.
Fares, Air-taxi, 355.
Farm Costs, Reduction of, 415-417, 418.
Farm Economy, Some Aspects of, 398-426.
Farm Employees, Wages of, 815, 831-833.
Farm Expenditure Indexes, 403, 804.
Farm Finance, Provision of, 417.
Farm Holdings, 371, 372, 755, 768.
Farm Implements, 407.
Manufacture of, 542.
Farm Liabilities, Adjustment of, 415-417.
Farm Machinery, 407.
Farm Produce, Consumption of, 404-406, 881-886.
Farm Produce, Export of, 246-266, 404-406, 971-973.
Farm Produce, Marketing of, 410-415, 426, 458, 943.
Farm Produce, Purchase for War Purposes, 426.
Farm Producers' Prices Indexes, 402, 403.
Farmers—
Advice for, 398.
Financial Assistance to, 380, 383, 417, 610-617.
Mutual Fire Insurance, 731.
Taxation of, 586-588.
Farming, 396-469.
Farming Income, Gross, 398-406.
Farming Industry, Subsidies to, 418, 855.
Farming Lands, Mortgages on, 751, 755.
Fathers—
Ages of, 91, 121, 122.
Duration of Marriage of, 94.
Occupations of, 93, 95.
Fauna, 36-39.
Feeble-minded, Schools for, 194.
Fellmongering-works, 543.
Female Suffrage, 43, 48.
Female Wage-rates, 812, 816, 817.
Fern Lands, 374.
Fertilizer Factories, Chemical, 536, 544.
Fertilizer used, 438.
Fertilizers, Prices of, 424, 787.
Fibre, Phormium (see Phormium).
Fidelity-guarantee Insurance, 717.
Field Crops, 429-438.
Film-hire Tax, 583, 593.
Finance, Farm, 417.
Finance of Local Authorities, 163-166, 659-669, 976, 977.
Hospital Boards, 163-166.
Finance, Public, 569-618, 974, 975.
Fire Brigades, 732.
Fire Districts, 475, 652, 653-669.
Fire Inquests, 205.
Fire Insurance, 723-732.
State, 731.
Fire Losses, 725-732.
Fireblight, 442.
Fire-prevention in Forests, 475.
Fires on Vessels, 315.
First Births, 89, 93-96.
First Offenders' Probation, 216.
Fish, 38, 487-496, 921.
Consumption of, 887.
Exported, 248-263, 489.
Fisheries, 487-496.
Fish-hatcheries, 491.
Fishing, Big-game, 491.
Fishing-boats, 489.
Five-day Week on Public Works, 846.
Fixation of Prices, 413, 421, 422, 424, 785-787.
Fixed Deposits, 680-686, 741.
Flax (see Phormium).
Flax Lands, 374.
Flax, Linen, 422.
Flax Plan, 920.
Floating Debt, 598.
Flocks—
Fowls, 468.
Sheep, 448.
Floods, 23-26.
Flora, 28-36.
Flotation of Loans, 597.
Flour—
Consumption of, 432, 884.
Fixed Price for, 785, 787.
Importation of, 408.
Flour-mills, 534, 538.
Flying, 350-362.
Flying Clubs, 350, 357-359.
Flying Maps, 395.
Fodder Crops, 429, 436.
Fog, 22.
Signals, 314.
Food and Drugs, Sale of, 158.
Food, Retail Prices of, 787-792, 794, 796.
Foodstuffs, Consumption of, 881-887.
Footwear, Consumption of, 888.
Footwear Factories, 535, 540.
Forecasts of Weather, 15, 356, 894.
Foreign Consuls, 994.
Foreign Immigrants, 67.
Foreign Vessels entered and cleared, 309.
Foreigners naturalized, 70.
Forest Fire-prevention, 475.
Forest Trees, 475-479 (see also Flora).
Forest Produce consumed locally, 480, 881.
Forest Produce exported, 246-266, 480, 973.
Forestation Companies, 484-486.
Forestry, 374, 470-486.
Value of Production, 918.
Forty-hour Week, 819, 826, 846.
Foster-homes for Children, 193.
Foundries, 542.
Foveaux Strait Oysters, 490.
Fowls, 468.
Fowl-wheat, 432.
Fractions, Totalizator, 592.
Franchise, General Government, 48.
Franchise, Local Government, 653.
Free and Dutiable Imports, 288-291, 295.
Free Education, 177, 179-180, 183, 187, 197.
Freehold, Crown Land made, 380.
Freehold Land, 371, 380.
Freezing-works, 533, 536, 912.
Freight—
Carried by Air-transport, 353-355.
Carried by Motor-transport, 347.
Carried by Shipping, 304-307.
Carried by Trains, 322-324, 981.
Train-mileage, 321, 322, 324.
Frequency Rates of Accidents, 866-868.
Fresh-water Fisheries, 492-496.
Friendly Societies, 733-736.
Frosts, 20.
Frozen Meat exported, 246-266, 306, 463-467, 971.
Fruit, Export of, 246-266, 423.
Fruit Industry, 422, 423, 426, 440-443.
Fruit Marketing, 422, 426, 440-443.
Fruit-export Control, 423, 441.
Fruit-preserving Factories, 538.
Fruits, Consumption of, 885-887.
Fruits, Production of, 441.
Fuel and Light, Retail Prices of, 795, 796.
Fuel and Lighting, Consumption of, 889.
Fuels and Lubricants, Imports, 273, 274.
Funded Debt, 607.
Funds of Public Account, 569-570.
Funds, Sinking, 607.
Superannuation, 640-646.
Funeral Funds, 735.
Fungus exported, 249, 250.
Furniture-making Works, 544.

G.

Gales, 23.
Gaols, Prisoners in, 212-216, 967.
Gardens, Acreage in, 372, 439.
Gas, Consumption of, 889.
Gas-lighting District, 653, 659-669, 858.
Gasworks, 541.
Gauge, Railway, 317, 651.
Geese, 468.
General Assembly, 42, 987, 988.
General Elections, 921-925.
Generating Stations, 899.
Geodetic Survey, 392.
Geographic Board, 394.
Geographical Features, 3-7.
Geological Survey, 507.
Geology, 7-10.
Germany, Trade Agreement with, 302.
Geysers, 3, 933.
Gift Duty, 589, 591.
Gilbert and Ellice Islands, 3.
Glaciers, 5, 934.
Goats, 446, 969.
Gold Coin, Export of, 244, 702, 970.
Gold, Discovery of, 42.
Gold exported, 246-266, 498, 972.
Duty on, 292, 583.
Gold Production, World's, 500.
Gold Reserves, 680.
Goldfields, Subsidized Roads on, 508.
Gold-mining, 498-500.
Gonorrhœa, 154.
Goods carried on Railways, 322-324, 981.
Goods, Consumption of, 876-890.
Goods-service Licenses, 347.
Government Agents abroad, 993.
Government Departments, 989.
Reports of, 55-57.
Government Insurance, 715, 721, 731.
Government Railways, 316-325, 981.
Superannuation Fund, 643.
Government Roads, 334-336.
Government, System of, 41.
Government Valuations, 670-676.
Governor-General, 983.
Powers, Duties, &c., 46.
Grading—
Of Dairy-produce, 398, 455.
Of Fruit, 442.
Of Honey, 398, 469.
Of Phormium Fibre, 398.
Of School-teachers, 178.
Graduated Land-tax, 585-587.
Grain Crops, 429-434, 968.
Grain-mills, 534, 538.
Granite, 505.
Grape-fruit, 422.
Grapes, 428, 439, 442.
Graphs—
Births, Deaths, Natural Increase, and Marriages, 86.
Cattle, Dairy-cows, and Pigs, 461.
Exports as affected by Prices, 265.
Imports, 278.
Infant Death-rates, 127.
Retail Prices Indexes, 797.
Sheep and Breeding-ewes, 448.
Tuberculosis and Cancer Death-rates, 134.
Value of Merchandise Imports, 278.
Wholesale Prices Indexes, 799.
Grass Lands, 373, 374, 429, 436-438.
Grass-seed, 429, 437.
Certification of, 398, 425.
Exported, 246-266.
Green Fodder, 429, 436.
Greenstone, 505.
Greenwich Mean Time, 930.
Groceries, Retail Prices of, 789, 792, 794, 796.
Gross Farming Income, 398-406.
From Exports, 404-406.
From New Zealand Consumption, 404-406.
Indexes, 401, 403.
Gross Indebtedness, 598, 664-666, 974, 976.
Mortgage Indebtedness, 755.
Of Local Authorities, 664-666, 976.
Grounds for Divorce, 109.
Growth of Population, 59-65, 86, 87, 964.
Guarantee Fund: Fruit Export, 423.
Guaranteed Prices, 413-415, 421.
Gum, Kauri, 504.
Exported, 246-266, 498, 973.

H.

Habitual Criminals, 215.
Habitual Drunkards, 221.
Hail, 22.
Half-castes, 59, 82.
Ham and Bacon, Consumption of, 883.
Ham and Bacon Curing, 537.
Harbour Boards, 651, 653-669, 858, 977.
Harbours, 3 (see also Ports).
Hardwood Trees, 478.
Harvests, 430-445, 968.
Hatcheries, Fish, 491.
Hawaiki, 40.
Hay, 427, 429, 436, 438.
Heads of Government Departments, 989.
Health Camps, 161.
Health Insurance, 630, 633-635, 821.
Health, Public, 153-176.
Heavy-traffic Fees, 341, 343.
Herald Islets, 946.
Herd-book Societies, 453.
Hervey Islands, 2, 949.
Hides and Skins exported, 246-266.
High Commissioner for United Kingdom, 994.
High Commissioner's Office, 993.
High Schools, 181, 187, 188, 966.
Technical, 181, 187, 188, 966.
Higher Education, 197, 966.
Highway Districts, 336.
Highways, 335-341.
Taxation, 340, 584.
Hire-purchase Agreements Act, 942.
History, 40, 996-1001.
Hobson's Proclamation, 41.
Holdings (see Land Holdings).
Homes, Benevolent, 171.
Homes, Children's, 171, 193.
Home-science Bursaries, 198.
Homicide, 139, 205, 210.
Honey, 412, 424, 469.
Export Control, 469.
Exported, 246-263.
Honours conferred, 986.
Hops, 412, 424, 445.
Horse-racing Taxation, 583, 591, 592.
Horses, 446, 467, 969.
Horticultural Station, 398.
Horticulture, 440-443.
Hosiery-factories, 540.
Hospital Benefits, 633, 634, 635.
Hospital Boards, 162-166, 652, 662.
Employees of, 858.
Finances of, 163-166, 765.
Hospital Districts, 652.
Hospitals, 146-152, 162-176.
Maternity, 169, 634.
Mental, 173-176.
Private, 167.
Private Mental, 176, 634.
Public, 146-152, 166.
St. Helens, 169, 634.
Hot Springs, 3, 935-941.
Hotels, Licensed, 926.
Hours of Labour, 818.
In Factories, 528.
House of Representatives, 42, 47.
Members of, 988.
Household Budgets, 788, 796.
Houses (see Dwellings).
Housing, 547, 549-553, 554-559, 566-568, 611-618, 658, 836.
Of Maoris, 388.
State, 552, 555-557, 617, 836.
Survey, 549, 658, 837.
Humphrey (Manihiki) Island, 2, 949.
Husbands' Petitions in Divorce, 110.
Hydatid Prevention, 155.
Hydraulic Sluicing, 499.
Hydro-electric Power, 5, 6, 420, 899-907.
Used for Industrial Purposes, 907.
Hydrotherapeutical Treatment, 935-941.
Hygiene, 153.
Dental, 161.
Social, 154.

I.

Ice-cream, 887.
Igneous Rocks, 9.
Illegitimate Infants—
Births of, 94, 96-98, 99.
Deaths of, 126.
In Benevolent Institutions, 172.
Legitimation of, 97, 941.
Protection of, 193.
Immigration, 60, 64-70, 964.
Assisted, 68.
Early, 41.
Restriction on, 69, 846.
Imperial Airways, 356.
Imperial Government—
Produce purchased by, 426.
Implements, Farm, 407.
Manufacture of, 542.
Import Control Regulations, 243, 268-270.
Import Licenses, 243, 268-270.
Import Prices Indexes, 802-804.
Imported Commodities, Prices Indexes, 803.
Imports, 236-244, 268-287, 303, 890.
Diversion of, 275, 278-280.
Excess of Exports over, 237, 238, 240.
Free and Dutiable, 288-291, 295.
Of Ports, 303-307.
Purpose or Use of, 273.
Restrictions on, 243, 268-270, 291, 408.
Specie, 244, 271, 272, 970.
Value in British Currency, 236, 237, 238.
Value of, Index Numbers, 238.
Value on Gold Basis, 238.
Volume of, Index Numbers, 238.
Improved-farm Settlements, 379, 382.
Improvements, Value of, 672-676.
Incapacity from Industrial Accidents, 866-875.
Income, Aggregate Private, 782, 878.
Income, Gross Farming, 398-406.
Incomes, 770-784.
Income-tax, 583, 585-587, 588, 770-784, 943.
Increase in Population, 59-65, 86, 87, 964.
Indebtedness, Mortgage, 754-756.
Indebtedness of Local Authorities, 166, 609, 664-669, 976, 977.
Indebtedness, Public, 597-609, 974.
Index Numbers—
Deaths, Sex-ratio, 114.
Export Prices, 800-802, 803, 804.
Farm Expenditure, 403, 804.
Farm Producers' Prices, 401, 402, 403.
Farm Production Volume, 402, 403, 406.
Goods Available for Consumption, 876-880.
Gross Farming Income, 401, 403.
Hours of Labour, 818, 819.
House-rent, 792, 793, 794, 796.
Import Prices, 802-804.
Population, 83.
Prices of Consumers' Goods, 799.
Prices of Factory Materials, 530-533.
Prices of Factory Products, 530-533.
Prices of Imported Commodities, 799.
Prices of Locally-produced Commodities, 799.
Producers' Prices, 919.
Farm, 401, 402, 403.
Production, 918.
Farm, Volume of, 402, 403, 406.
Ratio of Customs Revenue to Imports, 295.
Retail Prices, 403, 789-796, 803, 804, 809.
Share Prices, 804-806.
Value of Exports, 238.
Value of Imports, 238.
Value of Production, 401, 403, 531, 532, 919.
Volume of Exports, 238, 264.
Volume of Goods Available for Use, 879, 880.
Volume of Imports, 238.
Volume of Production, 402, 403, 406, 919.
Volume of Total Trade, 238.
Wage-rates, 808, 809, 810, 811, 812, 813.
Wholesale Prices, 797-800, 803, 804.
Indians, 67, 68.
Indigenous Forest, 28-36, 475-479.
Individualization of Native Land, 384.
Industrial Accidents, 866-875, 916.
Industrial Associations, 851.
Industrial Classification, Companies, 912.
Industrial Conciliation and Arbitration, 807, 819, 833-835, 838-841, 941.
Industrial Disputes, 838-841, 859-865.
Industrial Efficiency, 160, 511, 919-921.
Industrial Life Assurance, 708, 711-713, 714.
Industrial Planning, 920.
Industrial Unions, 807, 820, 848-851.
Industries, Classification of, 526-528.
Industries, Important, 533-544.
Industries, Licensing of, 920.
Industries, Manufacturing, 510-544.
Industry, Bureau of, 511, 919-921.
Industry, Organization of, 525.
Inebriates, 208, 220, 222, 223.
Infancy, Diseases of, 129, 143.
Infant Mortality, 124-130, 965.
Maori, 142.
Infantile Paralysis, 144, 145, 146, 151, 154.
Infant-life Protection, 124, 170, 192.
Infectious Diseases—
Control of, in Schools, 160.
Hospital Cases, 149, 150.
Notification of, 144, 153.
Injuries (see Accidents).
Inland Air Mails, 360.
Inland Fisheries, 492.
Inmates—
Of Charitable Institutions, 171.
Of Gaols, 212-216, 967.
Of Hospitals, 146-152, 167.
Of Mental Hospitals, 173-176.
Inquests, 205.
Insanity, 173-176.
Insolvency, 757-762, 982.
Inspection, Medical, of Schools, 160.
Inspection of Dairies and Dairy Factories, 398, 455.
Inspection of Machinery, 915-917.
Instruments, Duty on, 591.
Instruments, Registration of, 375.
Insurance, 708-732.
State, 715, 721, 731.
Intercensal Population, 58, 63, 64.
Interest—
Credited by Savings-banks, 693, 694, 695, 979.
On Local Authorities' Debt, 662, 667.
On Mortgages, 753.
On Public Debt, 604.
Payments Overseas, 241, 604, 668.
Rates (see Rates of Interest).
Recouped to Consolidated Fund, 575.
Reduction of, 423, 594, 610, 668, 748.
Tax on, 583, 591, 594, 601.
Interference, Radio, 894.
Inter-Island Passengers, 72.
Intermediate Credit, 616.
Intermediate Schools, 181, 186.
Internal Marketing, 412, 421, 422, 423, 426.
Internal Migration, 72.
International Comparisons (see Comparisons).
International Payments, 241, 604, 668.
International Standardized Death-rates, 119-121.
International Whaling Statistics, 963.
Intestate Estates, 908.
Intoxicating Liquor—
Consumption of, 888.
Sale of, 926.
Invalidity Pensions, 623, 624.
Invalids' Benefits, 630, 635.
Investment Certificates, 597.
Investment Societies, 737-741.
Investments, State, 600, 763.
Investments, Totalizator, 592.
Invisible Imports and Exports, 242.
Iron and Steel Industry Act, 500.
Iron, Consumption of, 546.
Iron-foundries, 542.
Iron-ores, 497, 500.
Irrigation and Water-supply, 419.
Islands—
Adjacent, Population of, 80.
Administered on Mandate, 2, 954-963.
Annexed, 2, 945-954.
Outlying, 1, 945.
Issue of Bank-notes, 678, 680, 690, 702-704.
Issue of Deceased Parents, 121-124.
Issue, Previous, of Parents, 91-93.

J.

Jam-factories, 538.
Joint-stock Banks, 681-689.
Joint-stock Companies, 909-914.
In Manufacturing Industries, 525.
Journal of Agriculture, 398.
Journal, School, 196.
Judicial Separation, 110.
Judiciary, Members of, 985.
Junior High Schools, 181, 186.
Justice, 204-225, 967.
Juvenile Offenders, 193, 217-219.
Juvenile Wage-rates, 812, 816, 817.

K.

Kauri-gum, 504.
Exported, 246-266, 498, 973.
Kermadec Islands, 2, 58, 945.
Kindergarten Schools, 183.

L.

Labour Department Employment Bureaux, 852, 855.
Labour Disputes, 838-841, 859-865.
Labour Disputes Investigation Act, 841.
Labour, Hours of, 818.
In Factories, 528.
Labour Laws and Allied Legislation, 820-847.
Labour Ministry, 985.
Labour Shares, 822.
Lake Wakatipu Steamer Service, 317, 318, 320.
Lakes, 6, 934.
Lamb—
Consumption of, 882, 883.
Exported, 262, 263, 266, 463.
Lambs, 446.
Lambs slaughtered, 463.
Land and Income Tax, 423, 583, 585-589, 768, 770-781, 784.
Land Boards, 378.
Maori, 385.
Land Development, 379, 387.
Land Districts, 378.
Land Drainage Districts, 650, 653-669, 858.
Land for Discharged Soldiers, 380, 383.
Land for Settlements, 382.
Land, Government Valuation of, 670-676.
Land Holdings, 372.
Mortgages on, 755.
Value of, 756, 768.
Land, Occupation of, 371-374.
Land Offices, 378.
Land, Purchase of, 378-383.
Land Tax, 423, 583, 585-587, 768.
Land Tenure and Settlement, 371-383.
Land Titles, Registration of, 375.
Land Transfer System, 375, 941.
Land, Valuation of, 670-676.
Landing-grounds, 350, 357.
Lands open for Selection, 380.
Land-settlement Accounts, 579.
Land-settlement Finance Associations, 383.
Lapsed Assurance Policies, 710, 712.
Latest Statistical Information [see Forefront of Book.]
Law and Crime, 204-225, 967.
Law, Mortgage, 742.
Laws affecting Labour, 820-847.
Laws enacted in 1939, 941-943.
League of Nations, 2.
Lease, Renewable, 378, 381.
Leasehold-landholdings, 371, 373, 381.
Legacy Duty, 590.
Legal Aid Act, 943.
Legal Education, 197.
Legal Roads, Unformed, 334.
Legal-tender, 699-704.
Legislation—
Labour and Allied, 820-847.
Passed in 1939, 941-943.
Statistical, 50.
Legislative Council, 42, 46.
Members of, 987.
Legitimation Act, 97, 941.
Lemons—
Consumption of, 885.
Fixed Price for, 787.
Marketing of, 422.
Length of Residence in Mental Hospitals, 175.
Letters Patent, 915.
Letters posted, 363, 980.
Letter-telegrams, 365.
Levies by Hospital Boards, 162-166, 662.
Levy, Fruit Inspection, 443.
Levy, Wool Research, 425.
Liabilities—
Farm, Adjustment of, 415-417.
Mortgage, Adjustment of, 615, 745-748.
Of Afforestation Companies, 484.
Of Bankrupts, 758, 759-761, 982.
Of Banks, 680, 683, 692, 978.
Of Building Societies, 741.
Of Electric-power Undertakings, 904.
Of Fire-insurance Companies, 724.
Of Friendly Societies, 734.
Of Life-assurance Companies, 714.
Of Local Authorities, 166, 663.
Of Reserve Bank, 680.
State, 763.
Libraries, 928-930.
Library Service, Country, 201.
Licensed Houses, 926.
Licenses—
Aerodromes, 359.
Air Pilots', 357-359.
Aircraft Navigators', 359.
Anglers, 495.
By Local Authorities, 596, 659-661, 926.
Commercial Aircraft, 352.
Companies, 591.
Export, 243, 706.
Ground Engineers', 359.
Imports, 243, 268-270.
Motor-vehicle, 341-347.
Radio, 895.
Ross Sea Whaling, 962.
Sharebrokers', 591.
Transport, 344-347.
Licensing, 926.
Of Industries, 511, 920.
Poll, 926.
Life Assurance, 708-716.
Death-rates, 714.
State, 715.
Life, Expectation of, 116.
Life Table, 117.
Lifts, Inspection of, 916.
Light and Fuel, Retail Prices of, 795, 796.
Lighthouses, 314.
Lignite, 502.
Lime and Cement Works, 541.
Lime for Top-dressing, 438.
Limestone, 506.
Limonite, 500.
Lincoln Agricultural College, 181, 197, 199, 425.
Linen Flax, 422.
Linseed, 429.
Liquidations of Companies, 909.
Liquor, Consumption of, 888.
Literature, New Zealand Works, 1002-1012.
Live-stock, 446-469, 969.
Carried on Railways, 323, 324, 981.
Slaughtering of, 462-460.
Loans—
Allocation of, 599, 600.
By Building Societies, 739.
Conversion of, 601, 668.
Dates of Maturity of, 603, 669.
Domicile of, 597, 602, 667.
Of Hospital Boards, 166.
Of Local Authorities, 166, 609, 655, 664-669, 977.
On Assurance Policies, 715.
Redemption of, 576, 578, 600, 601, 606, 655, 668.
Local Authorities, 647-669, 976, 977.
Advances to, 552, 659.
Amalgamation, 654.
Assets of, 663, 764.
Debt of, 166, 609, 655, 663-669, 976, 977.
Employees of, 858.
Expenditure of, 164, 337, 662, 976.
History of, 647-653.
Levies on, by Hospital Boards, 162-166, 662.
Liabilities of, 166, 663.
Receipts of, 163, 659-661, 976.
Subsidy from Main Highways Account, 338.
Superannuation, 644.
Taxation by, 596, 656, 659-661.
Local Consumption of Produce, 876-890.
Local Government (see Local Authorities).
Local Option, 927.
Local Railway District, 651, 659-669.
Local Taxation, 596, 656, 659-661.
Location of Debt, 597-603, 667, 669.
Location of New Zealand, 1.
Lockouts, 838, 841, 859-865.
Locomotives, 318.
Lodges, Friendly Societies, 733-736.
London, Exchange on (see Exchange).
London Prices of Gold, Average, 498.
London Prices of New Zealand Stock, 604.
Losses from Fires, 725-732.
In Forests, 475.
Lotteries, 928.
Duty on, 591, 928.
Lubricants and Fuels, Imports, 273, 274.
Lucerne, 429, 436.
Lunacy, 173-176.
Lupins, 430.

M.

Macaulay Island, 945, 946.
Machinery—
Accidents, 869, 916.
Factory, 518, 524, 527.
Farm, 407, 542.
Inspection of, 915-917.
Magistrates' Courts (see Courts).
Magistrates, Superannaution of, 644.
Mails, 363.
Air, 353-355, 360-362.
Main Highways, 335-341.
Account, 336, 582.
Construction and Maintenance, 337, 338.
Districts, 336.
Expenditure on, 337, 340, 582.
Finance, 336-338, 340.
Taxation, 336, 340, 582, 584.
Standards, 339.
Maize, 412, 429, 430, 437.
Malnutrition of School-children, 161.
Malthouses, 534, 538.
Malting Barley, 425.
Mammalia, 36.
Mandated Territories, 2, 954-963.
Mangaia Island, 2, 948.
Manganese-ore, 497, 501.
Mangolds, 429, 436.
Manihiki Island, 2, 949.
Manono Island, 955.
Manuae Island, 2, 949.
Manufacturing Production, 510-544.
Manures used for Top-dressing, 438.
Maori Dog, 36.
Maori Elections, 921, 925.
Maori Land Boards, 385.
Maori Rat, 36.
Maori Schools, 181, 185, 189.
Maori War Benefits, 631, 635.
Maori War Pensions, 622, 624.
Maori Wars, 42.
Maoris, 40.
Births of, 85, 100.
Children attending Schools, 181, 185, 188, 966.
Deaths of, 85, 141-143.
Half-castes, 59, 82.
In Mental Hospitals, 176.
In Prisons, 214, 220.
Infant Mortality of, 142.
Lands, 384-389.
Marriages of, 108.
Members of Parliament, 47, 988.
Offences by, 220.
Population, 58, 82.
Poultry kept by, 468.
Schools for, 181, 185, 189.
Map of New Zealand [End of Volume].
Maps, Sale of, 394.
Marble, New Zealand, 505.
Margarine, 460.
Marine Fish-hatchery, 491.
Marine Officers' Certificates, 313.
Market Gardens, 372, 439.
Marketing, Internal, 412, 421, 422, 423, 426.
Marketing of Dairy-produce, 412-415, 458.
Marketing of Farm-produce, 410-415, 423, 426, 943.
Marriages, 86, 93-95, 101-111, 965.
Masseurs, Registration of, 157.
Massey Agricultural College, 181, 197, 199, 425.
Materials, Prices of in Factories, 530-533.
Materials used in Factories, 520.
Maternal Mortality, 136-138, 169.
Maternity Allowances, 645, 646.
Maternity Benefits, 168, 634, 635.
Maternity Hospitals, 169, 634.
Maternity Nurses, 156, 169, 635.
Maternity Nurses, District, 170.
Maternity Services, 168-170.
Matured Assurance Policies, 710, 712.
Maturity of Loans, Dates of, 603, 669.
Mauke Island, 2, 948.
Mean Population, 63, 64, 964.
Mean Time, 930.
Measles, 132, 145.
Measures and Weights, 158, 390.
Meat—
Consumption of, 882-884.
Export Control, 466.
Export of, 246-266, 462-467, 971.
Freezing-works, 533, 536, 912.
Purchase for War Purposes, 426.
Retail Prices of, 791, 792, 794, 796.
Medical Benefits, 633, 635.
Medical Inspection of Schools, 160.
Medical Practitioners, 155, 633.
Medical Services in Cook Islands, 949.
Medical Services in Western Samoa, 956.
Medicinal Waters, 935-941.
Members of Lodges, 733, 736.
Members of Parliament, 46, 988.
Mental Hospitals, 173-176, 634.
Mercantile Marine, 309-314.
Merchandise, Exports of, 236-243, 245-267.
Merchandise, Imports of, 236-243, 268-287.
Mercury, 497, 498, 501.
Metal Reserves of Banks, 680, 684, 703, 978.
Meteorology, 15-27.
Midwives, 156, 169, 635.
Midwives, District, 170.
Migration, External, 59, 64-70, 964.
Migration, Internal, 72.
Mileage of—
Main Highways, 335, 338, 339.
Railways, 317, 321, 326, 981.
Roads, 334.
Telegraph Lines and Wire, 365.
Telephone Lines and Wire, 366.
Tramway Routes, 327, 333.
Mileage-tax, 336, 340, 583, 585.
Military Colleges, 229.
Military Districts, 228.
Military Forces, 226-231.
Military Pensions, 622, 624, 635-639.
Milk, Adulterated, 158.
Milk, Consumption of, 882-884.
Milk, Control of Prices of, 787.
Milk for School-children, 161, 192.
Milk used in Dairy Factories, 533, 537.
Milking-machines, 407.
Milk-products (see Dairy-produce).
Milk-testing, 388, 455.
Milling-wheat, 432.
Mills, 510-544.
Mineral Waters, 935-941.
Minerals, 497-509.
Miners' Benefits, 631, 635.
Miners' Pensions, 509, 622, 624.
Minimum Wage-rates, 807-817, 825-829, 832, 838.
Mining, 497-509.
Accidents, 502, 509.
Act, Examinations under, 509.
Advances, 508.
Produce consumed locally, 881, 889.
Produce exported, 246-266, 498.
Subsidized Prospecting, 507.
Value of Production, 497, 918.
Ministers of each Denomination, 108.
Marriages by, 108.
Ministries, Successive, 983.
Ministry, Labour, 985.
Minors, Marriages of, 101, 107.
Mission Schools, 181, 185, 950, 953, 957.
Missionaries, Arrival of, 41.
Mitiaro Island, 2, 948.
Moa, 38.
Monetary Benefits, Social Security, 626-635.
Money-orders issued and paid, 304, 980.
Morbidity, 144-152, 734.
Morioris, 40.
Mortality (see Deaths).
Mortgage Corporation, 611.
Mortgage Exemption, 587, 756, 768.
Mortgage Indebtedness, 754-756.
Mortgagee, Rights of, 743.
Mortgagees' Indemnity Insurance, 591, 719.
Mortgages, 415-417, 742-756, 768.
State Advances, 611-616.
Mortgagors and Lessees Rehabilitation Act, 415, 610, 615, 743-748, 757, 793.
Mortgagors Liabilities Adjustment Commissions, 416, 743-748.
Mortgagors' Relief, 415, 615, 743-748.
Mothers, Ages of, 91-100.
In Illegitimate Cases, 97.
In Still-born Cases, 99.
Moths, 39.
Motion-picture Film-tax, 583, 593.
Motive-power in Factories, 518.
Motor Traffic Offences, 221-223.
Motor Transport, 333, 336, 340, 341-347.
Motor-engineering Works, 543.
Motor-omnibus Traffic, 333, 330, 340, 341, 343-347.
Motor-spirits, Consumption of, 889.
Motor-spirits, Fixed Prices for, 786, 787.
Motor-spirits Taxation, 291, 294, 336, 340, 344, 585.
Motor-vehicles—
Accidents, 139, 205, 221-223, 347-349.
Country of Manufacture, 343.
Dormant Registrations, 342.
Drivers' Licenses, 340, 341,
Duty on, 291.
Examination of, 341.
Insurance, 718, 719-721, 723.
Licensed for Goods-services, 344-346, 347.
Licensed for Passenger-services, 344-346.
Operated by Tramway Authorities, 333.
Registration: Licenses, Fees, &c., 341-347, 585.
Registration of, 341-343.
Speed Limit, 341.
Taxation, 336, 340, 583, 585.
Motor-vessels registered, 308.
Motor-works, 543.
Mountains, 3.
Mules, 448.
Multiple Births, 90-92.
Municipal Tramways, 327-333.
Municipalities (see Boroughs).
Mutton, Consumption of, 882, 883.
Mutton exported, 262, 263, 266, 463.
Mutual Fire Insurance, 726, 731.

N.

Nassau Island, 2, 949.
National Broadcasting Services, 196, 891-899, 931.
National Bursaries, 198.
National Endowments, 379, 470.
National Expenditure Adjustment Act, 423, 594, 620, 621, 622, 623, 668, 748, 793, 837.
National Income, 782.
National Military Reserve, 227, 230.
National Parks, 374, 379, 934.
National Prohibition, 926.
National Provident Fund, 644-646.
National Scholarships, 197.
National Wealth, 767.
Nationality, 70.
Of Migrants, 67.
Of Naturalized Persons, 71.
Of Vessels, 309.
Native (see Maori).
Native Appellate Court, 385.
Native Bush, 374, 475-479 (see also Flora).
Native Constables, 206.
Native Fresh-water Fishes, 492.
Native Grasses, 374, 438.
Native Housing, 388.
Native Land Court, 385.
Native Lands, 371, 384-389.
Purchase of, 386.
Native Population, 58, 82.
Native Schools, 181, 185, 189, 966.
Native Succession Duty, 591.
Native Trust Office, 387.
Native-land Purchase, 386.
Nativity Order, 89, 99.
Natural Increase of Population, 60, 86.
Naturalization, 70.
Nauru Island, 2, 959-962.
Bibliography of, 1012.
Naval Board, 232.
Naval Defence, 231-235.
Expenditure on, 235.
Naval Reserve, 232, 235.
Naval Station, 232.
Navigators Islands (see Western Samoa).
Neo-natal Deaths, 126-128, 143.
Nephrite, 505.
Net State Indebtedness, 608, 974.
New Year Honours, 986.
New Zealand Coinage and Currency, 699-707.
New Zealand Mean Time, 931.
New Zealand Representatives Abroad, 993.
New Zealand University, 181, 182, 197-199, 966.
Newspapers—
Posted, 363, 980.
Registered, 364.
Night Letter-telegrams, 365.
Nisi Decrees in Divorce, 110.
Niue Island, 2, 58, 951-954.
No-license Issue, 927.
Nomination of Assisted Immigrants, 68.
Note-issue, 678, 680, 684, 690, 702-704.
Notes in Circulation, 683, 690, 978.
Denomination of, 691.
Tax on, 583, 591.
Notification of Births, 84.
Notification of Diseases, 144, 153.
Noxious Weeds Eradication, 855.
Nukunono Island, 3, 959.
Nullity of Marriage, 110.
Nurseries and Plantations, 373, 439, 481-486.
State, 481-483.
Nurses—
Dental, 161.
District, 170.
Maternity, 156, 169.
Plunket, 170.
Registration of, 156.
Retiring-allowances to, 645.
School, 160.

O.

Oats, 429, 430, 432, 968.
Duty on, 409.
Exported, 249, 250, 262, 263.
Varieties of, 433.
Observatory, Time Signals from, 894, 931.
Occupation of Land, 371-374.
Occupation with Right of Purchase, 379, 381.
Occupations—
Of Bankrupts, 760, 762.
Of Fathers, 93, 95.
Of Taxpayers, 772.
Ocean Cables, 368.
Ocean Island, 959-962.
Offences, 207-225.
By Maoris, 220.
By Women, 219.
Reported to Police, 224.
Offenders Probation Act, 216.
Officers Training Corps, 229.
Offices Act, Shops and, 827-829.
Official Assignees, 757-762.
Official Representatives Abroad, 993.
Officiating Ministers, 108.
Ohai Railway District, 651.
Oil-wells, 504.
Old-age Pensions, 43, 619, 624, 821.
Old-peoples Homes, 170.
Omnibus Traffic, 333, 336, 340, 341, 343-347.
Omnibuses licensed, 342.
Onekaka Iron-ore, 500.
Onions, 429, 435.
Consumption of, 884.
Duty on, 408.
Fixed price for, 787.
Opium, Prohibition of, 159.
Opossum-skins exported, 259, 262, 263.
Opticians, Registration of, 157.
Oranges, Fixed price for, 787.
Orchards, 373, 429, 440-443.
Orchard-tax, 442.
Ordinance, Census, 50.
Ordinary Life Assurance, 708-711, 714-716.
Organization of Industry, 525.
Organization, Statistical, 50-57.
Origin of Immigrants, 66.
Origin of Imports, 271, 275-287.
Ornamental Stones, 505.
Orphanages, 170-172.
Orphanhood, 121-124.
Orphans' Benefits, 629, 635.
Otekaike Special School, 194.
Ottawa Agreement, 279, 288, 297.
Outlying Islands 1, 945.
Out-patients, 167.
Maternity Hospitals, 169.
Output of Factories, 512, 513.
"Overcrowding" in Dwellings, 549-551.
Overdraft Authorities, 685.
Overdraft Rates, 697.
Overseas Air Services, 356.
Overseas Air-mails, 356, 361.
Overseas Companies, 909-914.
Overseas Funds of Banks, 243, 692.
Overseas Parcel-post, 364.
Overseas Payments 241-243, 604, 668.
Overseas Representatives, 993.
Overseas Shipping, 309-313.
Overseas Trade, 236-287, 970-973.
Overseas-passenger Duty, 591.
Overtime in Factories, 528.
Oyster-beds, 490.

P.

Pacific Cable, 369.
Pacific Islands, Annexed, 2, 945-954.
Packet Licenses, 926.
Palmerston Island, 2, 949.
Pan-American Airways, 356.
Papers, Parliamentary, 55-57.
Paralysis, Infantile, 144, 145, 146, 151, 154.
Parapara Iron-ore Deposit, 500.
Parcel-post, 363, 364.
Parents—
Ages of, 91, 92, 96, 97, 99, 121, 122.
Duration of Marriage of, 94, 111.
Issue left by, 121-124.
Previous Issue of, 91-93.
Parks, National, 374, 379, 934.
Parliament, 42-14, 46-49.
Members of, 987, 988.
Parliamentary Elections, 42, 921-926.
Parliamentary Papers, 55-57.
Parliamentary Under-Secretary, 46.
Parliaments, Successive, 986.
Parry (Mauke) Island, 2, 948.
Party-line Telephones, 366.
Passengers—
Aero Club, 358.
Commercial Aircraft, 353-355.
Inter-Island, 72.
Motor-vehicle, 333, 346.
Overseas, 64-66, 964.
Railway, 322, 981.
Tramway, 329, 333.
Passenger-mileage—
Motor-vehicles, 343.
Tramways, 328.
Passenger-service Licenses, 346.
Passenger-tickets, Duty on, 591.
Passion-fruit, 439.
Passports, 69.
Pastoral and Agricultural Production, 396-469, 968.
Value of, 918.
Pastoral Produce—
Consumed locally, 404-406, 881-886.
Export Prices Indexes, 801, 803, 804.
Exported, 246-266, 404-406.
Gross Farming Income, 400-406.
Prices Indexes, 401, 402, 403.
Pasture Grasses, 429, 438.
Patents, Designs, and Trade-marks, 915.
Patients in Mental Hospitals, 173-176.
Patients in Public Hospitals, 146-152, 167.
Payments by, 163, 164, 166.
Payments Overseas, Balance of, 241-243.
Peaches, 441, 885.
Peaks, Altitude of, 3, 4.
Pears, 426, 441, 885.
Peas, 429, 430.
Export of, 246-266.
“Pelorus Jack,” 37.
Pelts, Export of, 246-266, 306.
Penal Institutions, 212-215.
Penrhyn Island, 2, 949.
Pensions, 619-624, 635-646.
Permanent Building Societies, 737-741.
Permanent Heads of Departments, 989.
Permanent Military Forces, 226.
Permits and Passports, 69.
Permits, Building, 553-559.
Personal Accident Insurance, 718.
Petitions—
Bankruptcy, 758.
Divorce, 109-111.
Petrol, Consumption of, 889.
Petrol, Fixed Prices for, 786, 787.
Petroleum, 504.
Petrol-tax, 291, 294, 336, 340, 344, 585.
Pharmaceutical Benefits, 633.
Pharmacy, 159.
College of, 159.
Plan, 920.
Phormium, 372, 374, 428, 444.
Fibre exported, 246-266, 973.
Grading of Fibre, 398.
Mills, 540.
Phosphate Rock, 505.
From Nauru Island, 2, 959-962.
Phthisis, 120, 131, 132, 133, 134, 142, 144, 145, 151, 154.
Maori Deaths from, 142.
Miner's, 509, 622.
Physical Education, 182, 192.
Physiography, 1-7.
Pickle-factories, 539.
Pig Products, 420.
Pig-iron Production, 500.
Pig-meat, Consumption of, 882, 883.
Pig-recording, 420.
Pigs, 420, 446, 461, 969.
Pigs slaughtered, 465.
Pilots, Air, 351, 359.
Pisciculture, 491, 492-495.
Placement Service, 855.
Plant Research, 398, 425, 473.
Plantations, 373, 429, 439, 481-486.
State, 481.
Plants, New Zealand, 28-36.
Platinum, 497, 501.
Pleasant (Nauru) Island, 2, 959-962.
Plumbers, Registration of, 158.
Plunket System, 124, 170.
Plural Births, 90-92.
Poisons, 159.
Police Force, 205-207.
Offences Reported to, 224.
Superannuation, 640.
Policies, Insurance, 708-732.
Poliomyelitis, 144, 145, 146, 151, 154.
Polling—
At General Elections, 921-925.
At Licensing Polls, 926.
Population, 58-83, 964.
Age Distribution, 81.
Of Adjacent Islands, 58, 80.
Of Cook Islands, 58, 950.
Of Kermadec Islands, 58, 946.
Of Nauru Island, 962.
Of Niue Island, 58, 952.
Of Tokelau Islands, 58, 959.
Of Various Countries, 83.
Of Western Samoa, 58, 956.
Of World, 83.
Pork, Consumption of, 883.
Pork exported, 262, 263, 465.
Portfolios of Ministers, 984, 985.
Portobello Marine Fish-hatchery, 491.
Ports—
Of Entry, 303.
Of Registry, 308.
Shipping of, 310-313.
Trade of, 303-307.
Post Office Employees, 370.
Accidents to, 866-875.
Superannuation of, 640.
Post Office Investment Certificates, 597.
Post Office Savings-bank, 692-694, 696, 698, 979.
Postal and Telegraphic, 363-370, 980.
Postal Notes, 365, 980.
Post-primary Education, 181, 187-189, 966.
Post-war Changes, 43.
Potatoes, 429, 434.
Consumption of, 882, 884.
Duty on, 408.
Export of, 434.
Varieties of, 435.
Pottery-works, 541.
Poultry, 421, 468.
Poultry-runs Registration, 469.
Pounamu, 505.
Power Boards, 651, 653-669, 900, 977.
Power, Electric (see Electric).
Power used in Factories, 518.
Power used on Farms, 407.
Preferential Tariff, 288, 297-302.
Pregnancy, Diseases, &c., of, 130, 131, 132, 136-138, 144, 145, 149, 152, 169.
Premiers, Successive, 983.
Premium Income, 708-732.
Prevention of Crime Act, 215.
Prevention of Profiteering Act, 787.
Previous Issue of Parents, 91-93.
Price Investigation, 786.
Price Levels, Spread in, 403.
Prices, 785-806.
Effect on Exports, 237, 264-266.
Effect on Farm Expenditure, 403, 803.
Effect on Imports, 237.
Fixation of, 413, 421, 422, 424, 785-787.
Guaranteed, 413-415, 421.
Of Factory Materials, 530-533.
Of Factory Products, 530-533.
Of Fertilizers, 424.
Of Gold, 498.
Of New Zealand Stocks, 604.
Producers', 401, 919.
Primage Duty, 289, 294.
Primary Production, Council of, 425.
Primary Products—
Consumption of, 404-406, 881-886.
Marketing of, 410-415, 426, 458, 943.
Purchase for War Purposes, 426.
Primary Schools, 181, 185-187, 966.
Principal Events, 996-1001.
Printing Establishments, 535, 542.
Prisons and Prisoners, 212-215, 967.
Prisons Board, 213, 216.
Private Assignments, 760-762.
Private Companies, 909-914.
Private Dwellings, 547, 549, 551, 554-559, 566-568.
Private Hospitals, 167.
Private Income, Aggregate, 782, 878.
Private Mental Hospital, 176.
Private Radio-stations, 368.
Private Railways, 325.
Private Savings-banks, 695, 698.
Private Schools, 181, 186, 187, 966.
Private Wealth, 765-767.
Probation, 216.
Probationer Teachers, 194.
Proclamation of British Sovereignty, 2, 41.
Producers Equipment—Imports, 273, 274.
Producers Materials—Imports, 273, 274.
Production—
Agricultural and Pastoral, 396-469, 918, 968, 969.
Dairy, 456, 533, 537, 918.
Districts, Exports of, 303.
Diversification of Farm, 420-422.
Factory, 510-544, 918.
Gold, World's, 500.
Local Consumption of, 876-890.
Mineral, 497-508, 918.
Timber, 479, 918.
Value of, 783, 917-919.
Volume of, 401-406, 533, 919.
Wool, 449.
Professors, University, 197, 199.
Profiteering, Prevention of, 787.
Profit-sharing, 822.
Programmes, Radio, 893, 898.
Prohibited Immigrants, 69.
Prohibited Imports, 291.
Prohibition Issue, 926.
Prohibition Orders, 221.
Promotion of Industries, 511, 918-921.
Prorogation of Parliament, Dates of, 986.
Prospecting, State Aid to, 507.
Prospecting-drills, Government, 508.
Protection of Wages, 835.
Provident Fund, National; 644-646.
Provincial Districts, 647.
Area and Population of, 73.
Building and Construction in, 561.
Dairy Factories in, 456.
Factory Production in, 513.
Fire Losses in, 729.
Stone-quarries in, 506.
Provincial Governments, 43, 316. 647.
Provisional State Forests, 470.
Public Clocks, 932.
Public Companies, 909-914.
Public Debt, 597-609, 974.
Repayment of, 576, 578, 600, 606.
Public Domains, 374.
Public Finance, 569-618, 974, 975.
Public Health, 153-176.
Diplomas, 155.
Public Hospitals (see Hospitals).
Public Libraries, 928.
Public Reserves, 371, 374, 379.
Public Schools, 175-196, 966.
Public Service, 989-992.
Board of Appeal, 992.
Civil Service Act Pensions, 624, 639.
Employees, 992.
Entrance Examination, 182.
Superannuation, 640-642.
Public Trust Office, 908.
Public Wealth, 765.
Public Works—
Accidents, 866-875.
Employees, 857.
Five-day Week on, 846.
Fund, 577-579, 975.
Programme, 846.
Road Construction, 334.
Publicans' Licenses, 926.
Publications—
Census and Statistics Department [facing p. 1], 50-54.
Department of Agriculture, 398.
Education Department, 196.
General Bibliography, 1002-1012.
Lands and Survey Department, 394.
Mines Department, 508.
Statistical Bibliography, 50-57.
Publishing Works, 535, 542.
Puerperal Accidents, &c., 130, 131, 132, 136-138, 144, 145, 149, 152, 169.
Puisne Judges, 985.
Pukapuka Island, 2, 949.
Pulmonary Tuberculosis (see Phthisis).
Pulse Crops, 430.
Pumice, 497.
Pumpkins, 436.
Punishments by Courts, 207-225.
Pupils, School, 181-191, 966.
Purchase of Land for Settlement, 381-383.
Pure Food Laws, 158.
Purpose or Use of Imports, 273.

Q.

Quackery-prevention, 159.
Quadruplets born, 90.
Quarries, 505, 866.
Quartz-mining, 498, 499.
Quicksilver mining, 497, 498, 501.
Quinnat Salmon, 492-496.
Quinquennial Census, 58-63, 72-75, 80, 81, 851, 996.
Quorum—
Executive Council, 46.
House of Representatives, 48.
Quota, Country, 47.
Quotations, New Zealand Stock, 604.

R.

Rabbit Districts, 652, 653-669, 858.
Rabbit-skins exported, 246-266.
Race Aliens, 67.
Racing, Tax on, 583, 591, 592.
Radio Advertising, 897.
Radio Broadcasting, 368, 891-898.
Weather Forecasts, 15, 356.
Radio Communication, 367.
Radio Licenses, 895.
Radio Time-signals, 894, 931.
Radio-beacons, 314, 356, 368.
Raffle-tickets, Duty on, 591, 928.
Rail-cars, 318.
Railway Accidents, 139, 325, 347, 866-875.
Railway District, 651, 659-669, 858.
Railway Equipment—Imports, 273, 274.
Railway Fares, School-children's, 190.
Railways, 316-326, 981.
Private, 325.
Revenue and Expenditure, 319-322, 574, 580, 981.
Superannuation Fund, 643.
Rain Forests, 475.
Rainfall, 16-18, 23-27.
Rakahanga (Reirson) Island, 2, 949.
Rarotonga Island, 2, 948.
Rateable Value of Land, 673.
Rates collected by Local Authorities, 596, 659, 660, 901, 976.
Rates of Exchange, 423, 678, 704-707.
Rates of Interest—
On Building Societies' Deposits, 699, 741.
On Fixed Deposits, 697, 699.
On Friendly Societies' Funds, 735.
On Local Authorities' Debt, 667.
On Mortgages, 753.
On Public Debt, 601, 604.
Paid by Savings-banks, 698.
Reduction of, 423, 594, 668, 748.
Rates of Wages, 517, 563, 807-817, 825-829, 832.
Rates of War Pensions, 636.
Rating by Local Authorities, 656.
On Unimproved Value, 656.
On Urban Farm Lands, 656, 670.
"Real" or Effective Wage-rates, 809.
Rebate of Rates, 661.
Receiving-homes, 170-172.
Recent Developments in Agricultural Policy, 407-426.
Reciprocal Tariff and Trade, 297-302.
Records, Early Statistical, 50.
Recruiting—
Military, 226.
Naval, 233.
Police, 206.
Redemption of Loans, 576, 578, 600, 601, 606, 668.
Redemption of Mortgages, 742.
Reduction of Interest, 423, 594, 610, 668, 748.
Reduction of Mortgages, 615, 748.
Reduction of Public Debt, 598.
Reduction of Rent, 668, 748.
Reduction of Wages, 808, 834.
Re-exports, 251, 254, 263.
From United Kingdom, 254.
Reformative Detention, 193, 213, 215.
Refuge Homes, 170-172.
Refund of Rates, 661.
Refunds to Racing Clubs, 592.
Regional Planning, 658.
Registered Articles posted, 363.
Registered Companies, 908-914.
Registered Mortgages, 749-751, 752.
Registered Vessels, 308.
Registrars, Marriages before, 101, 108.
Registration—
Of Adopted Children, 98.
Of Apiaries, 469.
Of Applicants for Employment, 850.
Of Births, 84.
Of Chemists, 159.
Of Companies, 909.
Of Dairies, 455.
Of Dairy Companies, 456.
Of Deaths, 112.
Of Deeds, 375.
Of Dentists, 156.
Of Designs, 915.
Of Electors, 48.
Of Friendly Societies, 733.
Of Industrial Unions, 848.
Of Land Titles, 375.
Of Maori Births, 85.
Of Marriages, 101.
Of Masseurs, 157.
Of Maternity Nurses, 156, 942.
Of Medical Practitioners, 155.
Of Midwives, 156, 942.
Of Mortgages, 749-751, 752.
Of Motor-vehicles, 341-343.
Of Newspapers, 364.
Of Nurses, 156, 942.
Of Opticians, 157.
Of Orchards, 442.
Of Patents, 915.
Of Pharmaceutical Chemists, 159.
Of Plumbers, 158.
Of Poultry-runs, 469.
Of Private Schools, 186.
Of Still-births, 84, 98.
Of Surveyors, 390.
Of Trade-marks, 915.
Of Trade-unions, 848.
Of Unemployed, 852-856.
Of Vessels, 308.
Registry, Ports of, 308.
Regulation of Prices, 785-787.
Reirson (Rakahanga) Island, 2, 949.
Relief, Charitable, 162, 163, 164, 165.
Relief Fund, Coal-miners', 509.
Relief of Mortgagors, 415, 615, 743-748.
Relief of Unemployed, 507, 581, 593, 853-858.
Religious Denominations—
Marriages by Ministers of, 108.
Officiating Ministers, 108.
Religious Professions, 996.
Renewable Leases, 378, 380, 381.
Rent Reduction, 668, 748.
Rent Restriction, 837, 943.
Renters, Film, Taxation of, 583, 593.
Rents, House, 552, 792-794, 796, 837.
Of State Houses, 552,
Repatriation, 383.
Repayment of Public Debt, 576, 578, 600, 606.
Reports, Departmental, 54-57.
Special, 56.
Representatives abroad, 993.
Representatives, House of, 42, 47.
Members of, 988.
Reproduction Rate, 61.
Reptiles, 38.
Research, Agricultural, 398, 425.
Research, Coal, 507.
Research, Educational, 199.
Research Institute, Wheat, 425, 131.
Research Scholarships, 198.
Research, Silvicultural, 473.
Reserve Bank, 243, 677-680, 690-692, 697, 702-707, 943.
Reserves of Banks, 682.
Reserves, Public, 371, 374, 379.
Restitution of Conjugal Rights, 110.
Restoration, Salary and Wages, 809, 834.
Restriction, Immigration, 69.
Restrictions on Imports, 243, 268-270, 291, 408.
Retail Prices, 403, 787-797, 804, 809.
Retardate Children, 182, 194.
Revaluations, 671.
Revenue, Customs, 293-297.
Revenue, Local Authority, 164, 659-661, 976.
Revenue, Public, 569-582, 975.
Revenue, Railway, 319-321.
Revenue, Social Security Fund, 626.
Reverted Securities, 616.
Review, Court of, 416, 745.
Review of Legislation, 941-943.
Rhodes Scholarships, 198.
Richmond Special School, 194.
Rifle Clubs, 229.
River Districts, 650, 653-669, 858.
Rivers, 5.
Road Districts, 650, 653-669. 858.
Mileage of Roads, 334.
Road Transport, 333, 343-349.
Roading Costs, 340.
Roads, 334-349.
On Goldfields, Subsidized, 508.
Taxation, 336, 340, 582, 583, 585.
Rock Oysters, 490.
Rocks, Geological Account of, 7-10.
Rolling-stock—
Railway, 318.
Tramway, 327, 333.
Roman Catholic Schools, 187.
Root Crops, 429, 434, 436.
Ross Dependency, 2, 3, 962.
Bibliography, 1012.
Whaling, 962.
Rotorua Thermal Springs, 933, 936-939.
Rural Advances, 616.
Rural Housing, 552, 557, 659, 943.
Rural Intermediate Credit, 408, 616.
Rural Mail Deliveries, 363.
Rural Mortgages, 750, 755.
Rural Mortgagors Final Adjustment Act, 415, 743.
Rural Population, 74.
Country Quota, 47.
Rye-grass, 437.

S.

Sailing-vessels registered, 308.
St. Helens Hospitals, 169, 634.
Salaries of Members of—
Executive Council, 46.
House of Representatives, 48.
Legislative Council, 47.
Salary and Wage Cuts, 808, 834.
Salary and Wage Restoration, 809, 834.
Sale of Food and Drugs, 158.
Sales of State Timber, 480.
Sales Tax, 583, 595.
Salmon, Acclimatization of, 492-495.
Samoa (see Western Samoa).
Sanatoria, 146, 167, 939.
Sanitary Plumbing, 158.
Sanitation, 153-161.
Sash and Door Factories, 535, 540.
Sauce-factories, 539.
Sausage-casings, Export of, 246-266.
Savage (Niue) Island, 2, 58, 951-954.
Savai'i Island, 955.
Savings-banks, 692-696, 698, 979.
Sawmills, 479, 535, 540.
Scaffolding Accidents, 866-875.
Scenic Reserves, 374.
Scenic Resorts, 933-935.
Scheelite, 500.
Schemes, Unemployment Relief, 855.
Scholarships, 197, 508.
School Committees, 177-179.
School Journal, 196.
School Savings-banks, 694.
School System, 179-181.
School-children, 181-194, 966.
Board and Conveyance of, 190.
Dental Treatment of, 161.
Medical Inspection of, 160.
Schools, 181-194.
Dental Clinics, 161.
Of Agriculture, 199.
Of Mines, 197, 508.
School-teachers, 194-196.
Superannuation, 642.
Scrub Lands, 374.
Sea-fisheries, 487-492.
Seals, 37, 490.
Seamen Act, Shipping and, 830.
Season Tickets, Railway, 323.
Secondary Education, 181, 187-189, 966.
Second-growth Land, 374.
Secular System of Education, 177.
Securities, Mortgage, 750.
Seed-gardens, 372, 373, 439.
Seeds, Grass and Clover, 437.
Certification of, 398, 425.
Exported, 246-266.
Seismology, 10-15.
Selections of Lands, 380, 382.
Senior Cadets, 226, 229.
Sentences on Criminals, 208-225, 967.
Separate Rates, 656.
Separation, Judicial, 110.
Separators, Cream, 407.
Service, Public (see Public Service).
Service-car Licenses, 342, 344-346.
Services—
Air, 351.
Army and Navy, 226-235.
Sessions, Parliamentary, Successive, 986.
Settlement Accounts, 579.
Settlement and Colonization, 41.
Settlement Conditions, Selections under, 380.
Settlement of Industrial Disputes, 838, 863.
Settlement of Undeveloped Lands, 380.
Settlement, Small-farm, 382, 423, 942.
Settlements, Land for, 382.
Settlers, Advances to, 383, 610-618.
Sex Proportions, 62.
Sexes of Children Born, 88-90, 98, 100.
Sexes of Factory Employees, 514-518.
Share Prices, Index Numbers, 804-806.
Sharebrokers' Licenses, 591.
Shares in Building Societies, 738.
Shares, Labour, 822.
Shearers' Wage Rates, 835.
Shearing-machines on Farms, 407.
Sheep, 446-449, 463, 969.
Sheep and Lambs slaughtered, 463.
Sheep-farms, 372.
Sheep-skins and Pelts exported, 246-266.
Sheet-metal Works, 542.
Shipbuilding-works, 544.
Shipping, 308-315.
Shipping and Seamen Act, 830.
Ships (see Vessels).
Shoe-factories, 535, 540.
Shoes, Consumption of Boots and, 888.
Shops and Offices Act, 827-829.
Short-time in Factories, 528.
Shortwave Broadcasts, 894.
Sick Funds, 325, 509, 581, 735, 830.
Sickness 144-152, 623, 630, 632, 633-635, 734.
Signals, Time, 894, 931.
Silica Sand, 496.
Silver, 498, 500.
Coins, New Zealand, 700-702.
Exported, 498.
Silviculture, 473, 481, 486.
Singapore Naval Base, 232.
Sinking Funds, State, 607, 974.
Skins and Hides, Export of, 246-266.
Slaughter of Animals for Food, 462-466.
Slaughterhouses, 398, 462-466.
Slot Telephones, 366.
Sluicing, 499.
Small Farms Act, 382, 423, 942.
Snares Islands, 1, 945.
Snowfall, 22.
Soap-factories, 539.
Social Hygiene Regulations, 154.
Social Security, 163, 168, 594, 625-635, 942.
Social Welfare, 163, 164, 165.
Softwood Trees, 476.
Soil Surveys, 425.
Solander Island, 1, 945.
Soldiers, 226-231.
Acquisition of Land by, 383.
Financial Assistance to, 615.
Loan Indebtedness, 600.
Pensions, 622, 624, 635-639.
War Bursaries for Dependants, 188.
Source of Income, 772.
South Africa, Reciprocity with, 299.
South African War Pensions, 624, 639.
Southern Alps, 3, 4, 934.
Sown Grasses, Extent of, 373, 429, 436-438.
Spas, 935-941.
Special Articles in Previous Issues, 1013.
Special Parliamentary Reports, 56.
Special Rates, 656.
Special Schools, 192-194.
Specie, Movement of, 244, 970.
Specific Customs Duties, 290.
Speed Limit, 341.
Spinsters Marrying, 104, 105, 107.
Spirits, Consumption of, 888.
Spread in Price Levels, 403.
Springs, Hot, 935-941.
Staff Corps, 228.
Stakes, Tax on, 592.
Stamp Duties, 583, 591.
Estates certified for, 766.
Standard Surveys, 393.
Standardized Death-rates, 118-121.
For Cancer, 121, 136.
Standardized Marriage-rates, 102.
Standards, Administration of—
Length, 390.
Weights and Measures, 158.
Standards, Main Highway, 339.
State Accident Insurance, 721.
State Advances, 552, 600, 610-618, 836.
Corporation, 611.
Mortgagors in Arrears, 615.
Reverted Securities, 616.
State Afforestation, 470-473, 481-483.
State Aid to—
Aero Clubs, 357, 358.
Afforestation, 483.
Building, 552.
Crown Tenants, 379.
Discharged Soldiers, 383.
Farming Industry, 418, 855.
Fruit Industry, 441.
Housing, 552, 555-557, 610-615.
Immigrants, 68.
Kauri-gum Industry, 504.
Local Authorities, 661.
Manufacturing, 510.
Mining, 506-508.
Prospecting, 507.
Purchasers of Private Land, 383.
Settlers, 610-618.
Unemployed, 852-858.
Water-power Development, 899.
Wheat Growing, 408, 430.
Workers, 610-618.
State Assets and Liabilities, 762.
State Coal-mines, 503, 580.
State Employment Bureau, 852.
State Finance, 569-618, 974, 975.
State Fire Insurance, 731.
State Forests, 470, 481-483.
State Highways, 335.
State Housing, 552, 555-557.
State Indebtedness, 597-609, 974.
State Insurance—
Accident, 721.
Fire, 731.
Life, 715.
State Lands (see Crown Lands).
State Maternity Hospitals, 169, 634.
State Placement Service, 855.
State Railways, 316-325, 981.
State Schools, 177-203, 966.
State Water-power Supply, 899.
Stations, Radio, 893, 897.
Statistical Authority, 51.
Statistical Information, Latest [see Forefront of Book].
Statistical Legislation, 50.
Statistical Organization, 51-57.
Statistical Publications—
Bibliography, 50-57.
Census and Statistics Department [facing p. 1], 50-54.
Statistical Records, Early, 50.
Statistical Summary, 964-982.
Status of Aliens, 70.
Statute of Westminster, 44.
Statutes of 1939, 941-943.
Steam-vessels registered, 308.
Sterling Exchange—
Holdings of, 692.
Rates, 705.
Standard, 704.
Sterling Values of New Zealand Currency, 705.
Sterling Values of Trade, 236-243.
Stewart Island, 1, 944.
Oysters, 490.
Population, 78.
Still-births, 98-100, 129, 169.
Registration of, 84, 98.
Stipendiary Magistrates' Courts (see Courts).
Stock, Live (see Live-stock).
Stock, Quotations for, 604.
Stone-quarries, 506.
Stones, Building and Ornamental, 505.
Stranding of Vessels, 315.
Stratigraphy, 7-9.
Street-cars, 327-333.
Street-lighting, 901.
Streets and Roads, Length of, 334.
Strength of Timbers, 474.
Strikes, 838, 841, 859-865.
Stud Sheep, 447, 448.
Students, University, 197-199, 966.
Subdivision of Land, 382.
Submarine Cable, 368.
Subscribers, Telephone, 366.
Subsidies. Main Highways, 338, 582.
Subsidies on Rates, 661.
Subsidies to Aero Clubs, 357, 358.
Subsidies to Farming Industry, 418, 855.
Subsidies to Hospital Boards, 163-166.
Subsidized Employment, 855.
Subsidized Prospecting, 507.
Subsidized Roads on Goldfields, 508.
Succession Duty, 589, 590.
Suffrage, 43, 48, 653.
Sugar Beet, 422.
Sugar, Consumption of, 887.
Sugar, Duty on, 290.
Sugar, Fixed Price for, 787.
Suicide, 131, 132, 140, 205.
Sulphur, 502.
Summary Convictions, 209, 967.
Summer Time (Daylight Saving), 931.
Sumner School for Deaf, 194.
Sunday Island, 945.
Sunshine, 21, 27.
Superannuation, 640-046.
Superannuation, Social Security, 626.
Superphosphates and Fertilizer Factories, 536, 544.
Superphosphates, Fixed Prices for, 424, 787.
Supplementary Benefits (Social Security), 635.
Supreme Court (see Courts).
Surpluses, 574.
Surrenders, Life Assurance, 710, 712.
Surtax, 289, 294.
Preferential 289-298.
Surveys, 390-395.
Geological, 507.
Of Coal Resources, 502, 307.
Of Housing, 549, 658.
Of Ships, 314.
Of Traffic, 343.
Survey System, 390.
Sustenance Allowances, 581, 853, 854, 855.
Suwarrow Island, 2, 949.
“Sweating,” 820.
Sweepstakes, 928.
Swordfish, 491.
Sympathetic Strikes, 859-865.
Syphilis, 120, 131, 132, 154, 173.
Syrians, 67, 68.

T.

Table Mortgages, 612, 749, 754.
Takutea Island, 2, 949.
Tallow exported, 246-266, 971.
Tanneries, 543.
Taranaki Scholarships, 198.
Tariff Commission, 288.
Tariff, Customs, 288-302.
Tasman Empire Airways, 356.
Tasman's Discovery of New Zealand, 40.
Tax, Land and Income, 423, 583, 585-589, 768, 770-781, 784.
Taxation, 583-596, 975.
Customs, 288-297, 583, 584.
Employment Promotion, 581, 583, 593.
Local, 596, 656, 659-661.
Main Highways, 336, 340, 582, 584.
Motor-spirits, 291, 294, 336, 340, 344, 585.
Orchards, 442.
Racing, 583, 592.
Sales, 583, 595.
Social Security, 625.
War, 290-292.
Taxis, 342, 344.
Taxis, Air, 355, 358.
Taxpayers, Income, 770-781, 784.
Te Aroha Spa, 939-941.
Tea, Consumption of, 888.
Tea, Duty on, 290, 294.
Teachers' Superannuation Fund, 642.
Teachers' Training Colleges, 194.
Teaching Aids, 196.
Teaching Profession, 194-196.
Technical Education, 181, 187-189, 966.
Telegraph Services, 365, 367.
Telegraph, Time Signals by, 932.
Telephones, 365-368.
Temperature Records, 18-22, 27.
Tenants, Relief of, 743-748.
Tenure of Occupied Land, 373.
Tenures, Selection Lands, 378-383.
Terminating Building Societies, 737-741.
Terraces, Pink and White, 936.
Territorial Air Force, 351.
Territorial Forces, 226, 227, 228, 229.
Territorial Maps, 395.
Thermal Regions, 935-941.
Third-party Risks Insurance, 719-721, 723.
Three Kings Islands, 1, 945.
Thunder, 23.
Tidal Survey, 393.
Tile-making, 541.
Timber—
Carried on Railways, 323, 324.
Consumption of, 479, 546.
Export Duty on, 292.
Exports of, 246-266, 480, 973.
Import Duty on, 291.
Imports of, 480.
Output, 479.
Plantations, 373, 481-486, 429, 439.
Resources, 471.
Sales, 480, 481.
State Activity, 480-483.
Trees, 475-479.
Timbers, Strength of, 474.
Time lost—
In Factories, 528.
Through Industrial Accidents, 872.
Through Industrial Disputes, 859-865.
Time Service and Mean Time, 894, 930-932.
Tin, 501.
Tinline Scholarships, 198.
Tinware-works, 542.
Tire-tax, 291, 336, 340, 585.
Title, Certificates of, issued, 376.
Titles, Compulsory Registration of, 375.
Tobacco, 421, 429, 443.
Consumption of, 887.
Duty on, 290, 294.
Excise Duty on, 292, 294.
Exports of, 249, 250.
Fixed Price for, 787.
Imports of, 271, 272, 273, 274, 281.
Toheroa, 489.
Tokelau Islands, 3, 58, 959.
Toll Communications, 365.
Tongareva (Penrhyn) Island, 2, 949.
Tongariro National Park, 934.
Ton-miles—
Motor-vehicles, 343.
Railway, 324.
Tonnage handled at Ports, 303-307.
Tonnage of Registered Vessels, 308.
Tonnage of Shipping, 308-313.
Top-dressing, 438.
Topographical Maps, 395.
Topographical Surveys, 393, 419.
Total Returnable Income, 776.
Totalizator Investments, 592.
Totalizator, Taxation, 592.
Tourist Agents Abroad, 993.
Tourist Attractions, 932-935.
Tourists, 66.
Tourists' Rail Tickets issued, 323.
Town Districts, 649, 654-669.
Bridges in, 334.
Capital and Unimproved Values, 673, 676.
Debt, 666.
Mileage of Streets, 334.
Population, 79.
Town Land, Mortgages on, 751, 755.
Town-planning, 658.
Tractors on Farms, 407.
Trade, 236-287, 970-973.
Agreements, 297-302.
Balance of, 236-244.
Cook Islands, 951.
Nauru, 961.
Niue Island, 953.
Representatives, 993.
Volume of, 238.
Western Samoa, 958.
Trade-marks, 915.
Trade-unions, 807, 820, 848-851.
Trading Accounts, State, 580.
Trailing Banks, 681-689, 978.
Trading Companies' Deposits, 696, 699.
Traffic—
Accidents, 139, 347-349.
Motor, 343-349, 941.
Offences, 208, 221-223.
Railway, 322-324.
Survey, 343.
Tramway, 329, 333.
Training Farms, 193.
Training of Defence Forces, 228.
Training of Police Recruits, 206.
Training of Teachers, 194.
Train-miles run, 321, 322, 324, 981.
Tramway District, 651, 653-669.
Tramways, 327-333.
Accidents, 139, 347, 348.
Cable, 333.
Revenue and Expenditure, 328, 329-331, 333.
Transfer, Land, 375-377.
Transhipments of Cargo, 306.
Transit Trade, 263, 306
Trans-Pacific Air Service, 356.
Transport, 308-362, 941.
Co-ordination Board, 344.
District, Urban, 651, 653-669, 858.
Equipment, Imports, 273, 274.
Licensing Act, 344, 941.
Trans-Tasman Air Service, 356.
Travelling Scholarships, 198.
Trawlers, 489.
Treasury Bills, 598, 601, 603, 687.
Treaty of Waitangi, 41, 374, 384.
Tree-planting, 481-486.
Trees, Indigenous, 34, 470, 475-479.
Trend of Population, 61.
Triennial Parliaments, 47.
Triplets born, 90.
Tropical Diseases in Samoa, 956.
Trout, Acclimatization of, 492.
Trustee, Native, 387.
Trustee, Public, 908.
Trustee Savings-banks, 695, 698.
Tuberculosis, 120, 131, 132, 133, 134, 142, 144, 145, 151, 154.
Infant Mortality, Rate for, 129.
Maori Deaths from, 142.
Tung-oil Industry, 422, 439.
Tungsten-ore, 497, 498, 500.
Turkeys, 468.
Turnips, 429, 436.
Tussock Land, 374, 438.
Twins and Triplets born, 90.

U.

Unclaimed Moneys, 693.
Undergraduates, 197.
Undesirable Immigrants Exclusion, 69.
Undeveloped Land, Settlement of, 379.
Undischarged Bankrupts, 757.
Unemployment, 845, 852-856.
Benefits (Social Security), 632, 635.
Convictions under Employment Promotion Act, 208.
In Building Industry, 548.
Small Farms Scheme, 382, 423, 755.
Taxation, 581, 583, 593.
Unexercised Overdraft Authorities, 685.
Unimproved Occupied Land, 374.
Unimproved Value of Land, 670-676.
Holdings, 768.
Land-tax assessed on, 583, 587.
Rating on, 656.
Union (Tokelau) Islands, 2, 959.
Unions, Trade, 807, 820, 848-851.
United Kingdom, Sigh Commissioner for, 994.
University Education, 181, 197-199, 966.
University Examinations, 155, 182.
University Professors, 197, 199.
University Scholarships, 197.
Unproductive Land, 370, 374.
Untenanted Houses, 551.
Upolu Island, 955.
Urban Areas, 74-76.
Dwellings, 551.
Fire Losses, 728-729.
Population, 74, 76.
Urban Drainage Districts, 650, 654-669, 858.
Urban Drift, 75.
Urban Farm Lands, Rating on, 423, 656, 670.
Urban Population, 74.
Urban Security, Mortgages on, 750, 755.
Use or Purpose of Imports, 273.

V.

Valuation of Exports, 236, 245.
Valuation of Land, 670-676.
Value added in Manufacturing, 512, 513, 521-523.
Value, in Sterling, of Dominion Trade, 236-243.
Value of Currency, 704-707.
Value of Exports, Effect of Prices on, 264-266.
Value of Farm Production, 398-404.
Value of Land Holdings, 756, 768.
Value of Materials used in Factories, 512, 513, 520.
Value of Production, 783, 917-919.
Value of State Property, 763.
Veal Slaughtered and Exported, 466.
Vegetables, Consumption of, 884.
Vegetation, 28-36.
Vehicles—
Motor (see Motor-vehicles).
Railway, 318.
Tramway, 327, 333.
Venereal Diseases, 120, 131, 132, 151, 154, 173.
Vessels—
Employed in Fishing Industry, 489.
Entered and cleared, 310-313.
Nationality of, 309.
Registered, 308.
Survey of, 314.
War, 231-235.
Wrecked, 315.
Veterans' Allowances, War, 624, 638.
Village-settlements, Tenures, 378.
Vinegar-factories, 539.
Vineyards, 373, 439.
Violent Deaths, 130, 131, 132, 139, 142, 149, 152, 205, 347.
Virgin Bush, Area of, 374, 471.
Visible Trade-balance; 236-244.
Visitors to New Zealand, 64-66.
Vital Statistics, 84-152, 965.
Cook Islands, 950.
Niue Island, 953.
Viticulture, 373, 439.
Vocational Guidance, 190.
Volcanoes, 3, 9.
Volume of Exports, 238, 264.
Volume of Factory Production, 533.
Volume of Farm Production, 398-406.
Volume of Goods available for Use, 878-881.
Volume of Trade, 238.
Voluntary Contributions to Hospitals, 163, 164.
Voluntary Mental Patients, 174.
Volunteer Territorial Force, 226-230.
Voting—
At General Elections, 921-925.
At Licensing Polls, 926.
Qualifications, 48.
Vouchers, Audit of, 570.

W.

Wage, Basic, 813, 833-835.
Wage-rates, 517, 563, 807-817, 825-829, 832.
Wages—
And Working Conditions, 824-836.
Legislative Changes in, 833-835.
Lost through Industrial Accidents, 875.
Lost through Industrial Disputes, 859, 860, 862, 863, 864.
Of Afforestation Employees, 485.
Of Building Employees, 561-563.
Of Electric-supply Employees, 903.
Of Factory Employees, 512, 513-518.
Protection of, 835.
Reduction of, 808, 834.
Restoration of Cuts in, 809, 834.
Shearers' 835.
Waitangi, Treaty of, 41, 374, 384.
Waitangi Treaty Site, Gift of, 374, 483.
Waitomo Caves, 933.
Wakari Private Mental Hospital, 176.
War, 230.
Bursaries for Soldiers' Dependants, 188.
Expenditure, 600.
Indebtedness, 600.
Measures Affecting Farm Produce, 425.
Pensions, 622, 624, 635-639.
Taxation, 290-292, 585.
Veterans' Allowances, 624, 638.
War Expenses Act, 942.
Warships, 231-233.
Water Supply and Irrigation, 419.
Water-power, 420, 899-907.
Waters, Mineral, 935-941.
Water-supply Districts, 650, 653-669, 858.
Wealth, 763-769.
Weather, 15-27.
Weights and Measures, 158, 390.
Wellington—
Bankruptcies, 759.
Broadcasting Stations, 893, 897.
Building Values, 555.
Dwelling Construction Costs, 568.
Dwellings, 551, 556.
Fires, 728.
Population, 75, 76, 78.
Rainfall, 17, 18, 27.
Retail Prices, 789-795.
Shipping, 308, 311-313.
Sunshine, 22, 27.
Temperature, 19, 20, 27.
Trade of Port, 303-307, 311.
Tramways, 327, 329-332.
Valuation of Land, 675.
Wind, 23.
Weraroa Training-farm, 193.
Western Samoa, 2, 3, 954-958.
Bibliography of, 1011.
Naturalization, 71.
Population of, 58, 956.
Radio-communications, 367.
Westminster, Statute of, 44.
Whale-oil, 489, 490, 962.
World Production, 963.
Whales and Whaling, 37, 490, 962.
Wheat, 429-432, 968.
Consumption of, 432, 884.
Duty on, 408.
Export of, 249, 250, 262, 263.
Fixed Prices for, 785, 787.
Research Institute, 425, 431.
Restriction on Imports, 408.
Varieties of, 431.
Whey Butter, 456.
White Island Sulphur, 502.
Whitebait, 491.
Whole Milk, Consumption of, 883.
Wholesale Licenses, 926.
Wholesale Prices, 797-800, 803, 804.
Widowers, Remarriages of, 104.
Widows—
And Orphans, 124.
Benefits, 628, 635.
Pensions for, 621, 624.
Remarriages of, 104.
Wills administered by Public Trust Office, 908.
Wind, 16, 23.
Wine, Consumption of, 888.
Wine Licenses, 926.
Wine-makers' Licenses, 926.
Wire (Telegraph), Miles of, 365.
Wire (Telephone), Miles of, 366.
Wireless (see Radio).
Withdrawals from Savings-banks, 692-695, 979.
Wives' Petitions in Divorce, 110.
Women—
Deaths of, in Childbirth, 136-138, 149, 152, 169.
Offences by, 210, 214, 219.
Police, 207.
Suffrage for, 43, 48.
Wage-rates of, 517, 812, 816, 817.
Working-hours of, 818.
Wool, 449-452.
Draft Allowance, 425.
Export Price Index, 801.
Exported, 246-266, 449-451, 971.
Purchase for War Purposes, 426.
Purchases of, 426, 450.
Research, 425.
Stocks of, 451.
Used at Local Mills, 450, 543.
Woollen-mills, 535, 543, 912.
Woolpacks, Fixed Price for, 787.
Wool-scouring Works, 543.
Workers, Advances to, 610-618.
Workers' Compensation, 717, 718, 721, 843-845, 867, 868.
Insurance, 718.
Workers' Dwellings, 552, 612-615, 617, 837.
Workers' Educational Association, 200.
Workers' Unions, 807, 820, 848-851.
Workers' Weekly Railway Tickets, 323.
Working Conditions, Wages and, 820-836.
Working Railways Account, 319, 580.
Working-days lost through Industrial Disputes, 859-865.
Working-hours, 818.
Working-men's Clubs, 733.
World Comparisons (see Comparisons).
World's Gold-production, 500.
World's Population, 83.
World's Whale-catch, 963.
Wrecks, 315.

Y.

Yields of Crops, 430-445, 968.
Youths, Subsidized Employment of, 855.

Z.

Zoology, 36-39.

Appendix B.