THE NEW ZEALAND OFFICIAL YEAR-BOOK, 1941


Table of Contents

List of Tables

PREFACE.

OWING to difficulties in regard to paper supplies, the 1941 edition of the New Zealand Official Year-Book (the forty-ninth number of the volume) has been somewhat reduced in size. Further savings have been effected by a substantial reduction in the printing order.

The book follows the same lines as its immediate predecessors, and it is hoped that the cutting-down of material has been effected without impairing the value of the statistical and other information annually presented in the Year-Book. All information has been brought up to date as far as possible.

Pressure of work and delay in obtaining necessary material have resulted in the Year-Book again appearing some weeks later than usual. The Editorial Branch of the Department has done excellent work in very difficult circumstances, and to the officers concerned, and to other officers of the Census and Statistics Department and of other Government Departments who have assisted by revising material, I offer my grateful thanks.

J. W. BUTCHER, Government Statistician.

Census and Statistics Department, Wellington C. 1, New Zealand, 28th February, 1941.

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. 34-57):—

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

 As at 30th September,
 1939.1940.
Males828,836817,229
Females803,999817,271
Totals1,632,8351,634,500
MIGRATION (pp. 39-45) —1st April to 31st December,
 1939.1940.
Passenger arrivals*26,45810,925
Passenger departures*21,41810,514
VITAL STATISTICS (pp. 58-116):—Twelve Months ended 31st December,
Numbers—1939.1940.
Births28,83332,771
Deaths14,15814,282
Marriages17,11517,450
Infant deaths898990
Rates—  
Births (per 1,000 mean population)18.7321.19
Deaths (per 1,000 mean population)9.209.24
Marriages (per 1,000 mean population)11.1211.28
Infant mortality (per 1,000 live births)31.1430.21
TOTAL TRADE (pp. 191-199):—1939.1940.
* Excluding through passengers
Commodity exports—££
Twelve months ended 31st December58,049,31673,741,133
Commodity imports—  
Twelve months ended 31st December49,387,18348,997,669
Excess of exports—  
Twelve months ended 31st December8,662,13324,743,464

PRINCIPAL EXPORTS, NEW ZEALAND PRODUCE (pp. 200-221).

Twelve Months ended 31st December,
1939.1940.
Quantity.Value.Quantity.Value.
  £ £
Butter (cwt.)2,443,29716,111,2072,637,68318,228,026
Cheese (cwt.)1,677,2575,869,8902,033,5068,233,486
Frozen and chilled meats—    
  Beef (cwt.)997,4391,761,1361,328,9602,595,598
  Lamb (cwt.)2,777,8699,151,7903,121,40311,018,867
  Mutton (cwt.)1,234,6821,966,8051,553,3522,878,660
  Pork (cwt.)466,5021,564,876538,5261,936,245
Fresh apples (lb.)37,980,567520,17023,708,272225,993
Rabbit-skins (number)11,190,294262,90410,412,150401,716
Sheep-skins (number)15,156,5361,460,07213,096,4601,931,827
Wool (bales)822,50811,065,909890,73816,875,045
Tallow (tons)29,137456,52734,088707,721
Timber (sup. ft.)13,135,118154,11615,655,452164,046

IMPORTS—PRINCIPAL ITEMS (pp. 222-241).

Twelve months ended 31st December,
1939.1940.
 ££
Sugar853,6381,378,317
Tea880,4581,003,657
Tobacco, cigars, and cigarettes1,035,590696,991
Hosiery241,88378,806
Miscellaneous apparel and ready-made clothing823,163185,639
Miscellaneous drapery300,793164,089
Floor-coverings531,850576,197
Footwear394,758128,570
Cotton, linen, silk, and artificial silk, piece-goods2,755,5583,879,936
Woollen piece-goods755,9471,064,515
Yarns374,754661,669
Iron and steel: Bar, bolt, and rod397,131339,581
  Galvanized plate and sheet571,158382,812
  Plate and sheet, tinned425,251708,731
  Tubes, pipes, and fittings592,758757,810
Railway and tramway plant1,155,280307,337
Electrical machinery (including wireless apparatus)2,797,8222,515,673
Timber641,598296,884
Printing-paper710,272858,569
Other paper391,639751,292
Motor-vehicles and motor-cycles4,237,5531,008,607
Motor-spirits2,029,9592,145,047
Rubber tires for motor-vehicles and motorcycles836,967757,627
AGRICULTURE (pp. 372-388):—1939-40.1940-41.
Areas sown (p. 374)—Acres.(Estimates.) Acres.
Wheat260,779244,000
Oats268,541297,000
Barley31,72840,200
Potatoes20,03318,000

FACTORY PRODUCTION (pp. 440-467).

Production Year.
1938-39.1939-40.
Number of establishmentsNo.6,1466,342
Persons engagedNo.102,535108,722
Salaries and wages paid£22,270,01024,460,549
Cost of materials used£75,344,18184,941,407
Other expenses of manufacture£10,292,52611,345,533
Value of output£114,447,426129,061,826
Added value£39,103,24544,120,419

FACTORY PRODUCTION—CERTAIN PRINCIPAL INDUSTRIES (pp. 460-467).

Industry.Production Year.
1938-39.1939-40.

* Excluding establishments exclusively engaged in malting.

* Including operations of motor-assembly works.

Meat freezing and preserving—   
 Total persons engagedNo.7,8978,282
 Salaries and wages paid£2,379,7482,637,914
 Value of output£20,653,07423,803,916
 Added value£3,815,9474,733,649
Ham and bacon curing—   
 Total persons engagedNo.498515
 Salaries and wages paid£132,099134,489
 Value of output£1,335,9691,387,001
 Added value£291,376302,865
Butter, cheese, and condensed-milk factories—   
 Total persons engagedNo.3,9443,859
 Salaries and wages paid£1,065,3291,074,138
 Value of output£27,334,58429,840,837
 Added value£2,424,4132,508,699
Grain-mills—   
 Total persons engagedNo.738707
 Salaries and wages paid£188,757188,268
 Value of output£2,383,1032,437,060
 Added value£451,763493,534
Biscuit, confectionery, and sugar-boiling works—   
 Total persons engagedNo.3,1903,496
 Salaries and wages paid£465,506542,772
 Value of output£2,028,8222,327,862
 Added value£910,8621,088,662
Breweries and malthouses*   
 Total persons engagedNo.1,1681,147
 Salaries and wages paid£325,895336,147
 Value of output (including beer duty)..2,844,8893,356,177
 Added value£946,880977,657
Soap and candle works—   
 Total persons engagedNo.520567
 Salaries and wages paid£112,041120,914
 Value of output£542,188566,201
 Added value£273,825257,525
Sawmills—   
 Total persons engagedNo.7,9178,487
 Salaries and wages paid£1,948,8492,174,719
 Value of output£5,074,7035,730,594
 Added value£3,373,7163,780,100
Gasworks—   
 Total persons engagedNo.1,9421,889
 Salaries and wages paid£526,229538,737
 Total revenue£1,527,2751,612,058
 Quantity of gas soldcub. ft. (000)3,591,3523,765,997
Electric current—   
 Total persons engagedNo.5,0265,375
 Salaries and wages paid£1,370,2311,485,882
 Total revenue£6,312,2327,126,052
 Units generatedunits (000)1,413,5181,631,332
Lime and cement works—   
 Total persons engagedNo.1,1231,195
 Salaries and wages paid£298,969317,777
 Value of output£1,103,9001,139,610
 Added value£852,255909,204
Engineering, iron and brass works—   
 Total persons engagedNo.5,0015,354
 Salaries and wages paid£1,168,7941,292,309
 Value of output£3,113,2103,355,998
 Added value£1,891,3402,101,999
Paint and varnish works—   
 Total persons engagedNo.332422
 Salaries and wages paid£78,452108,959
 Value of output£578,941917,130
 Added value£199,369380,430
Coachbuilding and motor and cycle engineering*   
 Total persons engagedNo.10,2899,092
 Salaries and wages paid£2,278,8512,038,322
 Value of output£5,943,4135,283,957
 Added value£3,872,0843,376,795
Tanning—   
 Total persons engagedNo.459547
 Salaries and wages paid£109,680136,876
 Value of output£491,209630,675
 Added value£199,311247,269
Superphosphates and chemical fertilizers—   
 Total persons engagedNo.9321,084
 Salaries and wages paid£249,208305,607
 Value of output£1,822,8572,246,049
 Added value£664,278862,042
Boot and shoe manufacturing—   
Total persons engagedNo.3,0753,731
Salaries and wages paid£486,649641,331
Value of output£1,355,3981,864,320
Added value£624,501903,819
Woollen mills—   
Total persons engagedNo.2,4062,980
Salaries and wages paid£392,393521,060
Value of output£951,6361,461,753
Added value£573,651852,397
Hosiery factories—   
Total persons engagedNo.1,2591,614
Salaries and wages paid£182,956255,582
Value of output£574,237964,476
Added value£272,503469,162
Clothing-manufacture—   
Total persons engagedNo.12,27013,201
Salaries and wages paid£1,568,8861,818,497
Value of output£3,809,0934,618,534
Added value£1,963,0652,449,927
  1938-39.1939-40.
  £m.£m.

* Including road motor and other subsidiary services.

As at 31st December.

Total since commencement.

Value of production (pp. 820-822) 134.8143.5
Value of goods available for use in New Zealand (pp. 783-785) 135.7126.4
TRANSPORT (pp. 262-308):— Twelve Months ended December,
  Shipping (pp. 262-268)— 1939.1940.
    Overseas, inwardsNumber644591
 Tonnage2,974,8332,801,685
    Overseas, outwardsNumber664601
 Tonnage3,032,9812,824,167
  Railways (pp. 269-278)—   
    Net ton-miles runNumber593,000,000638,000,000
    Passenger journeysNumber23,759,65426,074,323
    Revenue—   
      Railway operation£8,593,8339,603,819
      Total*£10,024,32511,056,982
    Expenditure—   
      Railway operation£7,823,1088,292,673
      Total*£8,884,7779,328,631
  Road (pp. 286-299)—   
    Motor-vehicles licensed..307,914305,034
CIVIL AVIATION (pp. 300-306):—   
  Internal services—   
    Miles flown..3,575,5071,075,365
    Passengers carried..69,28645,832
  Overseas services   
    Miles flown....313,552
    Passengers carried....1,218
  Nine Months ended 31st December,
 ..1939.1940.
CONSOLIDATED FUND (pp. 495-498):— ££
  Receipts..22,308,83521,930,254
  Payments..25,665,37923,660,699

OTHER PRINCIPAL STATISTICAL SERIES.

Item.1939.1940.
Prices index numbers (pp. 697-717):—   
  Retail— Month of December.
    Food (1926-30 = 1000) 11051084
    All-groups (1926-30 = 1000) 10191053
  Wholesale—All groups (1926-30 = 1000) 11151268
  Export—All groups (1909-13 = 1000) 14031492
  Share prices—   
    Industrial (1926 = 1000) 957931
    All-groups (1926 = 1000) 916903
Mortgages registered (pp. 652-655)£1,456,7061,361,823
Mortgages discharged (pp. 652-655)£1,251,2001,173,059
Land transfers registered (pp. 319-321)£1,808,8352,062,653
Social Security benefits (pp. 540-551):—   
  Age—   
    Number 91,83096,878
    Annual value£6,930,8697,125,377
  Widows'— 
    Number 10,01410,506
    Annual value£818,226865,804
  Invalidity— 
    Number..11,63711,988
    Annual value£1,042,9661,020,179
  Family—   
    Number..10,71516,457
    Annual value£304,842495,767
  Universal superannuation—   
    Number ..35,225
    Annual value£..352,250
Pensions (pp. 550-555):—   
  War—   
    Number..23,98723,619
    Annual value£1,606,4291,659,038
  Boer War—   
    Number..5348
    Annual value£1,8621,812
  War Veterans' allowances—   
    Number..2,0722,079
    Annual value£175,162211,131
Banking (pp. 585-615):—   
  Trading banks—   
    Debits, weekly average (excluding Government) (p. 597)£20,753,69421,797,624
    Ratio of advances to deposits (p. 595)Per cent.71.6061.45
  Reserve Bank— 30th December.
    Net reserve ratio (p. 588)Per cent.32.2032.64
    Reserve—   
      Gold (p. 588)£2,801,8392,801,859
      Exchange (p. 588)£8,717,73512,500,598
  Net note circulation (pp. 598-599)£15,626,49517,441,288
  Net overseas funds of banks (p. 600)£15,811,15323,404,569
  31st December.
Radio licenses (p. 799) 337,067352,020

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).
   s.d.d.
New Zealand Official Year-Book1941May, 1941767
Annual Statistical Reports—     
  Population and Buildings1939-40Mar., 1941261
  Vital Statistics1939Mar., 1941503
  Justice1939Jan., 1941261
  Trade and Shipping (Part I)1939Feb., 19411003
  Trade and Shipping (Part II)1938June, 1940362
  Agricultural and Pastoral Production1939-40Feb., 1941261
  Factory and Building Production1938-39June, 1940362
  Insurance1938April, 1940201
  Miscellaneous (Prices, Wage-rates and Hours of Labour, Unemployment, Industrial Accidents, Tramways, Cinematograph Theatres, Banking, Building Societies, Bankruptcy, Commercial Afforestation, Incomes and Income-tax, Statistical Summary)1938Sept., 1940502
Local Authorities Handbook of New Zealand (published annually)1938-39Nov., 1940765
Pocket Compendium of New Zealand Statistics (published annually)1940Oct., 1940101
Monthly Abstract of Statistics....26*1
Volumes of 1936 Census Results—     
  Increase and Location of Population1936Sept., 1937462
  Dependencies1936Sept., 1937161
  Poultry1936Sept., 1937161
  War Service1936June, 1938161
  Maori Census1936April, 1940301
  Ages and Marital Status1936April, 1940402
  Census of Libraries1936May, 1940161
  Religious Professions1936June, 1940261
  Orphan Children and Dependent Children1936June, 1940261
      (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, 103,416 square miles):—

 Square Miles.
North Island and adjacent islets44,281
South Island and adjacent islets58,093
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)—

Nine (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 103,935 square miles. Elsewhere in this issue (viz., in the section on land tenure, settlement, &c.) the aggregate area of the Dominion appears as 66,390,546 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-LINE.

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-westerly-north-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 clown by the rivers being spread along the coast by ocean currents. The mountainous nature of the country makes the haulage of goods to and from the better-equipped natural harbours both costly and difficult, and the construction and maintenance 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.

As 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 cast 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 the 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..
Waihola1⅛3⅛2,200..(Tidal)52
Ellesmere1610107½745..(Tidal)45

GEOLOGY.

An article on the geology of New Zealand prepared by Dr. J. Henderson, M.A., F.R.S.N.Z., Director of the Geological Survey, is contained in the 1940 and earlier editions of the Year-Book. For more detailed information the reader is referred to the treatises of Professors Park and Marshall, 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 cast 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.††

* 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.

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..

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 1939 inclusive, were as follows:—

Year.Number of Earthquakes reported felt.Maximum Intensity of Heaviest Shock, R.F. Scale.
1921918
19221,1878
1923766
1924707
1925768
19261738
19271078
1928808
192967810
19307488
193143210
19323139
19331087
19342309
19351507
19361236
19371796-7
19381328
19391577

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 clue 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.

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

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

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 nine 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 non-instrumental reporting-stations are located chiefly at post-offices and lighthouses.

EARTHQUAKES IN 1939.

Seismic activity, on the average, showed a decline during the first six months of 1939. A slight increase occurred from July to November, after which a decline was again indicated. The only outstanding feature was the comparatively frequent activity in the south-western portion of the South Island, especially at the beginning of the year.

The number of separate shocks reported felt in 1939 was greater than in the previous year, but the maximum intensity recorded was only R.-F. 7, as compared with R.-F. 8 in 1938. The following is a monthly summary of earthquakes reported felt during 1939:—

Month.Number of Earthquakes reported felt.Maximum Intensity (R.-F.).Locality of Maximum.
North Island.South Island.Both Islands.Whole of New Zealand.
1939.      
January1791255Gisborne, Brothers Lighthouse, Puysegur Point.
February650117Southern Hawke's Bay.
March640104New Plymouth, Farewell Spit, Otago, and Southland.
April1061155Brothers Lighthouse, Kahurangi Point.
May1821196Wanganui.
June51065Whakatane.
July981166Opotiki, Hanmer Springs.
August71086Cromwell.
September40044Wanganui.
October1241156Naseby.
November1441175Wanganui, Cape Jackson.
December942115Wanganui.
Totals117488157....

CLIMATE.

The following article on the climate of New Zealand was supplied by Dr. M. A. F. Harnett, M.Sc., Ph.D., F. Inst. P., Director of Meteorological Services:—

THE METEOROLOGICAL OFFICE.

The New Zealand Meteorological Office is situated at Kelburn, Wellington, but aviation-service stations are established at Auckland, and at the aerodromes at Ohakea, Woodbourne, and Wigram. 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 supplied 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 by the National Broadcasting Service from Station 2YA, to which is linked 4YA, at 6.50 a.m., 10 a.m. and 1 p.m. District forecasts are broadcast by the chief radio-stations several times a day. In the late afternoon a special general forecast for farmers is issued from the main YA stations, and in ‘the evening the Dominion forecast is broadcast once or twice from the four main centres. The first evening issue from 2YA, just prior to the news session which commences at 7 p.m., gives, in addition, weather reports from a selection of observing-stations distributed over the Dominion and the surrounding area.

Rainfall data from about six hundred stations in New Zealand itself, as well as from twelve in the Pacific Islands, are published monthly in the New Zealand Gazette. Observations of temperature, pressure, sunshine, wind, &c., from over sixty 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 3 appearing in the following pages relate to varying, but usually lengthy, periods. In Table 4 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 well 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 those 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 regime 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, IS 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 Masterton3.142.963.583.675.454.985.594.783.714.363.563.0148.79
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
Dunedin3.422.712.942.743.113.103.013.092.753.123.253.5430.84
Invercargill3.903.113.894.144.343.633.283.253.274.504.414.0745.85

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
Christchurch9.77.79.29.611.712.612.211.310.09.710.39.8124.8
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 at Wellington and more approximately at several other places.

In Table 3, therefore, the temperatures are reduced to sea-level and mean of day, and are expressed 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.
Waipoua63.163.862.259.254.851.549.750.352.855.358.260.756.8
Auckland66.366.664.661.056.353.051.251.954.156.759.863.258.7
Rotorua66.265.362.957.952.848.947.548.852.456.259.763.456.8
New Plymouth62.362.661.157.653.550.348.749.251.753.956.660.155.6
Napier64.864.261.957.752.548.547.348.151.555.758.862.556.1
Taihape64.264.261.857.952.148.647.548.251.155.257.361.455.8
Masterton62.862.259.655.250.246.845.646.650.053.756.160.554.1
Wellington60.961.059.155.752.048.947.247.750.452.955.258.754.2
Nelson61.561.359.154.950.046.345.046.049.452.856.059.353.5
Hokitika59.059.357.253.548.845.544.045.348.751.453.557.052.0
Christchurch60.360.157.553.247.543.542.543.048.352.855.458.652.0
Ophir62.362.458.251.543.238.136.941.948.153.556.561.151.1
Dunedin58.657.855.150.444.840.239.542.647.450.853.056.549.7
Invercargill57.056.954.550.745.942.341.443.747.350.752.355.349.8

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.

Tables setting out information about maximum and minimum temperatures at certain stations are to be found in the 1940 and earlier editions of the Year-Book.

SUNSHINE.

In Table 4 is listed for each month and the year the average number of hours of sunshine at a selection of places from which sufficiently long records are 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 4. BRIGHT SUNSHINE (HOURS).

Station.Number of Years.Jan.Feb.Mar.April.May.June.July.Aug.Sept.Oct.Nov.Dec.Year.
Auckland30227.6190.4182.8148.8134.9118.7122.5152.6156.1175.4193.0220.32,023.1
Tauranga7-8258.5198.3212.2173.3169.1152.2150.9176.1191.6220.7207.0260.62,370.3
Rotorua27-30238.7191.5183.5146.0137.2119.3125.8144.6154.2180.9200.7220.42,042.8
New Plymouth22-24254.0215.5218.6165.1164.1129.1140.2167.5170.3179.4210.0239.62,253.4
Napier30-32260.1206.6209.7184.3155.2147.7142.4179.5203.9226.3237.1261.22,414.0
Palmerston N.12203.2179.6172.2139.4130.1103.3106.1134.1133.5154.6177.7203.01,836.8
Wellington33231.6206.8189.9153.9130.4105.5108.2141.6163.3183.2206.5227.52,048.4
Nelson18265.1224.9225.9184.0175.3154.0170.5185.8204.7220.3244.2254.42,509.1
Blenheim25-26247.2208.8199.8162.7163.3139.8148.1176.9189.3208.3232.8218.52,295.5
Hokitika27210.2183.6179.2136.2132.9113.4132.9145.1152.7161.4176.4199.21,923.2
Christchurch11-12211.9185.7163.6130.3139.298.3120.5142.8163.6189.0204.3202.11,951.3
Lake Tekapo13-15270.4230.0233.6178.2161.3123.9136.2162.0192.3227.2239.9259.62,414.6
Oamaru11-12181.6168.4160.8123.1134.9109.6121.9136.8152.6171.3177.6157.01,795.6
Dunedin19-22188.8164.9148.5123.2106.490.4100.2122.3147.9168.4169.9170.81,701.7
Invercargill18-22197.0158.3130.0100.687.880.491.6117.0140.8161.3172.1180.01,610.9

OTHER CLIMATOLOGICAL FACTORS.

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 1939.

During the early weeks of the year there were some very heavy rains in the Auckland Provincial District, while January was very cold generally, with severe gales. Dry conditions prevailed, however, in most parts and, winds accentuating the drought, caused a cessation of grass-growth, so that before summer ended there was a rapid decline in the milk-yield. Fogs were unusually numerous and widespread during February.

The autumn season was very mild, with little rain, so that small crops did poorly and sowings were impossible in many places. Autumn weather with unusually mild temperatures was prolonged into June; the winter, on the other hand, was short but exceptionally cold, and remarkable for the amount of snow. During July cold southerly winds prevailed with frequent and widespread hail and snow, even in the North Island. At this period heavy snowfalls in Dunedin resulted in serious disorganizations of city traffic, while deep drifts in Southland and parts of Otago covered sheep for many days, and pastures lay hidden for weeks. Day temperatures were particularly low, one or two inland stations experiencing “ice-days"—i.e., days on which the maximum air temperature failed to rise above freezing-point. In August a record low value for any New Zealand Climatological Station was established when the minimum temperature at Manorburn Dam fell to — 1.5° F. The winter was fairly wet, especially so during August, heavy rains on the 16th and 17th being followed by serious flooding in the Manawatu district.

The spring quarter was normal as regards temperature, with abundant sunshine. Dry conditions persisted in the first months, but by the end of November soaking rains became fairly general. Wheat crops, which, in Canterbury especially, had suffered considerably, responded satisfactorily to the rain and warmth, while other crops and pastures generally made an outstanding recovery. These rains, however, resulted in flooding in parts of the Marlborough, Nelson, and Westland Provincial Districts.

December, like November, had high humidities. For the country as a whole good pasture-growth was maintained, and, in the North Island, excellent hay and ensilage crops were harvested. Conditions were rather dry for many of She cereal crops, although some of the rains came at an opportune time to help fill the wheat. Two exceptionally wet days were experienced in Wellington—on the 11th December a fall of 6 in. was recorded at Kelburn and severe flooding occurred in the Hutt Valley, and on the 26th torrential rain fell along the southern coast of the province.

For the year as a whole temperatures averaged somewhat less than normal, the coolness being more marked along the west coast. The warmer areas included the Rotorua district, South Canterbury, and Central Otago.

After January, when they were strong generally, winds tended to be lighter than usual, except in Canterbury, where velocities were in excess of the average.

The outstanding feature of 1939 was the dryness over most of the Dominion, several small areas only proving an exception in this respect. The lightness of the rainfall was most pronounced at many South Canterbury stations, where the year's total constituted a new low record. The figures were comparable with those of 1915, when, however, severe drought conditions were common to a far more extensive area. Also, 1915 followed a dry year, but 1939 succeeded an unusually wet one.

The dry autumn, coming as it did after a poor summer season, proved an anxious time for farmers. Pastures made little growth, and the reserves of supplementary fodder were very poor. Spring growth was retarded by the severe winter, especially in the south. In the north conditions became too wet at times, but grass made a good start, so that a satisfactory dairy season with plentiful hay reserves was assured. Apart from losses in the high country due to snow and latent ill-effects of the cold upon ewes, sheep bad a good year. It was, on the whole, a very healthy year for all stock.

SUMMARY OF METEOROLOGICAL OBSERVATIONS FOR 1939.

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

Station.Temperatures in Shade, Degrees Fahrenheit.Hours of Fright Sunshine.Rainfall.
Mean Dally Maximum.Mean DallyApprox. Mean TemperatureExtremes for 1939.Absolute Maximum.Absolute Minimum.Total Fall (Inches).Number of Wet Days.
Maximum and Month.Minimum and Month.
To Paki. Te Hapua65.451.658.576.0 Mar.30.0 July....2,175.461.31150
Auckland64.453.058.777.8 Feb.35.0 July86.533.22,259.949.30165
Tauranga65.847.956.885.0 Feb.29.5 July87.022.52,419.350.69138
Hamilton East65.044.654.883.6 Feb.24.0 July94.422.02,128.543.56134
Rotorua66.545.756.185.6 Feb.23.9 July98.021.02,214.644.56146
Gisborne65.546.055.888.0 Jan.28.3 July....2,161.329.60127
Onepoto, Lake Waikaremoana57.544.551.077.8 Feb.27.1 Aug.......64.25178
New Plymouth.61.748.655.279.6 Feb.29.4 July89.027.02,175.648.12163
Napier64.648.156.388.0 Feb.27.5 July94.027.52,459.122.00107
Taihape57.942.750.376.4 Feb.23.0 July87.820.4..29.78160
Wanganui62.848.655.776.8 Feb.30.7 July....2,239.331.79150
Massey College. Palmerston North62.146.654.479.5 Feb.26.0 July87.021.21,851.534.90151
Masterton64.943.053.989.2 Feb.24.1 July95.420.02,288.228.63162
Wellington60.048.154.175.7 Mar.32.8 July88.028.62,081.146.45144
Nelson62.846.054.481.4 Feb.25.4 July92.025.02,524.134.91113
Blenheim65.443.954.688.5 Dec.23.0 July93.523.02,485.018.08106
Hanmer Springs62.038.850.490.3 Feb.14.5 Aug.97. 08.22,046.934.97133
Hokitika59.544.952.275.0 Mar.25.0 July84.525.01,695.098.44191
Lake Coleridge61.140.250.686.0 Feb.11.5 Aug.93.011.5..24.88119
Christchurch60.044.352.284.5 Dec.25.6 Aug.95.721.32,015.924.97108
Jackson's Bay57.945.451.674.4 Apr.

Dec.

29.0 July......192.37187
Timaru60.542.951.784.8 Feb.25.0 July99.020.41,973.413.6391
Queenstown59.141.150.183.2 Dec.22.6 Aug.90.220.02,040.526.49122
Alexandra61.440.751.189.0 Dec.18.8 July91.212.22,264.710.70100
Dunedin59.144.051.680.5 Feb.27.4 July94.023.01,822.532.68162
Invercargill57.942.250.082.0 Dec.23.0 July90.019.01,621.645.64216

For 1939 the mean sea-level pressure at 09.00 hrs., in millibars, was: Auckland, 1,014.7; Rotorua, 1,014.8; Wellington, 1,012.9; Nelson, 1,013.1; Hokitika, 1,013.0; Christchurch, 1,011.3; Dunedin, 1,010.3.

THE PLANTS OF NEW ZEALAND.

Those desiring information on the flora and plant covering of New Zealand are referred to the article by Dr. W. R. B. Oliver, D.Sc., F.R.S.N.Z., which appeared in the 1940 and previous issues of the Year-Hook, while a brief reference to the geographical distribution of the forest trees is made in the section of this Year-Book dealing with Forestry (Section XIX). For more detailed information the following works may also be consulted: “Plants of New Zealand,” by R. M. Laing and E. W. Blackwell, ed. 4, 1940; “Manual of the New Zealand Flora,” by T. F. Cheeseman, ed. 2, 1925; “The Trees of New Zealand,” by L. Cockayne and K. 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. Bobbie, 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 Royal Society of New Zealand.

THE FAUNA.

A brief article on the fauna of New Zealand, originally prepared by the late Mr. James Drummond, F.L.S., F.Z.S., and revised by him in 1935, is contained in the 1940 and earlier editions of the Year-Book.

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 Fresno (1772), Captains Vancouver and Broughton (1791), Captain Raven (1792-93), Alejandro Malaspina and José do 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 Bay, 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.

The refrigerated trade had been successfully established in 1882, and its development had made the policy of closer settlement possible, 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 led to a change in administrative policy, greater attention being devoted to social problems. Further amendments were also made to the depression emergency legislation; certain restrictive measures were removed, while other adjustments of a temporary nature were put on a permanent footing. Another feature of Labour administration was a resumption and expansion of public works, which had been seriously curtailed during the previous period of financial stringency. At a later stage a recession in overseas funds, at a time when overseas loans were maturing, necessitated the inauguration of import control, and in addition re-emphasized the desirability of a more self-contained national economy.

The outbreak of war in September, 1939, resulted in New Zealand aligning herself with Great Britain, and, in addition to the despatch of an expeditionary force, the country has placed its export surplus at the disposal of the United Kingdom Government.

Of the constitutional events in later 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, 1940) the statute has not been adopted by the New Zealand Parliament.

The year 1940 marked the centenary of the Proclamation of British sovereignty in New Zealand. The historical significance of the event was accorded country-wide recognition, though the war situation necessitated modification, in some instances, of the original programme. The principal celebration was the Centennial Exhibition held in Wellington from 8th November, 1939, to 4th May, 1940. This project, which was promoted by a public company, received material support from the Government. In addition to direct financial assistance, numerous Government Departments provided displays which participated in a general scheme portraying the development and economic resources of the Dominion. Displays were also undertaken by a number of other Empire countries, and the exhibition provided the usual recognized facilities for education and amusement.

By passing the New Zealand Centennial Act, 1938, the Government took the responsibility for co-ordinating and controlling celebratory activities throughout the Dominion; thus overlapping was avoided, and, as recommended by the important Historical Committee, individual historical events were given appropriate observance. Through the provision of subsidies for approved provincial and local centennial memorials the Government exercised a large measure of financial control, a condition of the subsidies being that, where possible, memorials should be in the form of public amenities. Of the many Governmental undertakings in connection with the centenary the more important, in addition to those mentioned, were the production of historical publications, the issuing of special stamps and coins and the sponsoring of literary competitions and music festivals.

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.

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.

With the formation of a War Cabinet on the 16th July, 1940, two additional members were appointed to the Executive Council.

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, a further 10 per cent. in 1931, and a further reduction of 15 per cent. in 1932. Restoration to the 1930 level was effected from the 1st July, 1936, and payment is still made at this rate—at £1,800 per annum for the Prime Minister, and £1,170 for other Ministers. In addition Ministers of the Crown occupy a Ministerial residence, or receive house allowance at the rate of £200 per annum.

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.

The Finance Act, 1940, authorized the payment to every member of the Executive Council who is a member of the War Cabinet, and does not hold any of the Ministerial offices, a salary at the rate of £1,170 per annum. Two appointments on the 16th July, 1940, were made under this heading.

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 only one appointment has been made in this connection (this appointment has since been terminated). 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 (September, 1940) is 37.

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 1s., 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 33⅓ 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 throe 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, but for Maori electors a Proclamation is necessary before registration becomes operative. Up to the present this Proclamation has not been made.

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, 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 that date the fragmentary and inchoate statistical works found 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.

From 1848 to 1876 New Zealand was divided into provinces. In the first decade of this period some of the provinces were active in the statistical field, carrying out regular and frequent censuses and publishing for general information data obtained from the censuses and from other sources. Unfortunately, much of value was lost through lack of uniformity in date, in periodicity, in method, and in scope. No comprehensive picture of the colony as a whole was possible.

One of the first remedial measures was the Census Ordinance of 1851, which provided for a census of the colony in the first, fourth, and seventh years of every decade. No distinctive organization was created, use being made of the Resilient Magistrates. The first general census was taken in 1851, but the next census was left to provincial administration and proved a failure; it was, in fact, omitted in some provinces.

This failure threw emphasis upon the necessity for centralized action and for the constitution of a permanent executive in the statistical field. The first positive legislation was the Census Act of 3rd July, 1858. This was a permanent census authority, administered by the Colonial Secretary, with the Registrar-General as permanent executive.

The 1858 Act was not restricted to population and the characteristics of population, but extended, inter cilia, to crops, live-stock, banks, friendly societies, building societies, hospitals, libraries, factories, mines, and quarries. These additional matters were authorized only for years in which a general census was taken. The Census Acts Amendment Act of 1867 altered the position by providing for an annual and more detailed census of land holdings, crops, and live-stock.

The Act of 1858 was amended in 1860, 1867, 1873, and 1876, and was 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 responsibility for the annual collection of agricultural and pastoral statistics was transferred to the Department of Agriculture by the passing of the Agricultural and Pastoral Statistics 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. Owing to circumstances arising out of the war situation, power is given in the Finance Act, 1940, to postpone the census which would ordinarily have been taken in 1941 to a date to be decided upon, but not later than the year 1945.

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:—

  • (a) 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.

  • (b) 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, virile 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, Cinematograph Theatres, 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.

A list of regular departmental reports presented to Parliament appeared in the 1940 and previous issues of the Year-Book. Special reports of statistical interest presented during the last three years are as follows:—

 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.
 1940.
H.-19AActivities of Defence Forces of New Zealand in relation to the War.
H.-19BUtilization of the Man-power of the Dominion.
H.-22BPreparation of Emergency Precautions Schemes.
H.-30BFood and other Supplies to the United Kingdom during the War.
H.-38Activities of the Ministry of Supply in relation to the War.

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 pastoral 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.
GeneralStatistical 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 (Union) 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)1st April, 1940781,723768,1981,549,921
Maoris1st April, 194047,24843,73290,980
Totals, New Zealand proper1st April, 1940828,971811,9301,640,901
Kermadec Islands1st April, 194020..20
Cook Islands and NiueCensus, 19368,3677,98316,350
Tokelau IslandsCensus, 1938-395656261,191
Mandated Territory of Western Samoa1st April, 194031,21929,71160,930
Totals..869,142850,2501,719,392

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 distance of the Dominion from other countries, combined with the fact that overseas migration 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......
December, 185859,41332,70612.24612.14
December, 1861*97,90438,49164.7918.26
December, 1864171,00973,10574.6720.74
December, 1867217,43646,42727.158.20
February, 1871254,92837,49217.245.11
March, 1874297,65442,72616.765.29
March, 1878412,465114,81138.578.49
April, 1881487,88975,42418.295.60
March, 1886576,52488,63518.173.41
April, 1891624,45547,9318.311.60
April, 1896701,09476,63912.272.33
March, 1901770,30469,2109.871.91
April, 1906885,995115,69115.022.79
April, 19111,005,585119,59013.502.60
October, 19161,096,22890,6439.011.57
April, 19211,214,677118,44910.812.31
April, 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 three years since 1936-37 have all 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 1920-1929 was nearly 26,000, while for the next ten years the average per annum was 15,500. Apart from the war years 1914-18, which were affected by movements of troops, the year 1934 showed the lowest absolute increase since 1891, and the lowest relative increase ever recorded. Much improvement, however, has been recorded during the last five years due to both natural increase and migration increase, with the result that the increase in population date 1939 is the highest recorded since 1926.

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 1929 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.MalesFemales.Both Sexes.Males.Females.Both Sexes.

* Decrease.

† Departure and return of members of armed forces 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
1876-8030,11332,80862,95131,67022,91754,78762,01355,725117,738
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
1896-190028,09731,43759,5317,3203,31810,63835,41734,75570,172
1901-0532,51530,22368,73831,22314,22345,44663,73850,446114,184
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
1921-2541,87644,86886,74426,73223,25649,98868,60868,124136,732
1926-3036,88640,45677,34214,7589,80924,62751,64450,325101,969
1931-3530,71533,23763,952-5,256*-4,662*-9,918*25,45928,57554,034
19365,4586,32311,781972-245*7276,4306,07812,508
19375,7306,62612,3561,8415402,3817,5717,16614,737
19385,6816,81412,4951,8184082,2267,4997,22214,721
19396,8197,85614,6753,3323,1426,47410,15110,99821,149
Totals, 1861-1939173,267524,869998,136306,616203,369509,985779,883728,2381,508,121

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.

While year by year the population of New Zealand has been growing, the rate of increase has been declining substantially. Immigration now contributes relatively small increments to the population; indeed, in the five depression years 1931-35 there was a net exodus from New Zealand of nearly 10,000. With the passing of the depression the net inward flow resumed, but did not reach significant figures until 1939. Since the outbreak of war the check on migration and the movement of troops have introduced abnormal conditions.

In recent years natural increase (excess of births over deaths) has reached a critical position. The natural increase rate (per 1,000 of mean population) reached a low point of 7.89 in 1936. It is obvious that this means that the population was still increasing at a moderate rate, but owing to the time-lag it is less obvious that a rate as low as this means, in the near future, a stationary or, more probably, a declining population. In other words, the population was failing to reproduce itself in sufficient numbers for growth and, probably, even the maintenance of a stationary population.

One method of measuring the status of a population is that of the net reproduction index which is based on children born and surviving. An index of over unity (in normal conditions) indicates a growing population, while one below unity indicates a declining population. Using the Vital Statistics of 1936 and the New Zealand Life Table of 1934-38, the net reproduction index for 1936 was 0.970, an indication of slight decline. As the depression receded there was some improvement in the birth-rate (though accompanied by higher death-rates), and the birth-rate for 1939 (18.73), though lower than in any pre-depression year, is yet well above the low point (16.17) reached in 1936. The net reproduction index for 1939 was 1.073, indicating a slowly growing population. These indexes are not, and cannot be, exact measures, but they do afford close and reliable approximations. In their use it is necessary to remember, inter alia, that the probability of survival of the children born is calculated on the mortality experience of the five years 1934-38. It is readily conceivable that war or other abnormal conditions may result in higher mortality; if such conditions occurred the index for 1939, for example, would prove to have been overstated. A more favourable mortality would mean the contrary, but here there is relatively little scope for movement. The present margin of increase, if indeed there proves to be any margin, is precariously low.

The foregoing observations necessarily omit any forecast of the trend of external migration; also they do not take into account the Maori section of the population, which is definitely increasing.

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.

Census Year.Males.Females.Females to 1,000 Males.
186160,43537,469620
1871149,600105,328704
1881268,553219,336817
1891331,744292,711882
1901404,799365,505903
1911530,433475,152896
1916550,262545,966992
1921621,136593,541956
1926686,384658,085959
1936756,226735,258972

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.

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 1921-39 the gain through external migration provided 11,900 more males than females; and in the same period natural increase was responsible for 13,000 more females than males.

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 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.
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
1940781,723768,1981,549,92113,6570.891,543,748

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

Year ended 31st December,Population (excluding Maoris) at End of Year.Increase during Year.Mean Population for Year.
Males.Females.Totals.Numerical.Per Cent.
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
1939785,946765,3881,551,33420,9681.371,539,420

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.
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
1940828,971811,9301,640,9011,633,447
Years ended 30th June.
1931771,538741,8811,513,4191,504,022
1932776,736749,1491,525,8851,521,228
1933782,461756,0111,538,4721,533,252
1934787,896762,3001,550,1961,545,628
1935792,566767,7761,560,3421,556,923
1936798,407774,3521,572,7591,568,432
1937805,973781,4201,587,3931,582,244
1938814,678789,8071,604,4851,598,570
1939826,135800,3701,626,5051,616,650
1940821,910814,1041,636,0141,636,68
Years ended 31st December.
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
1939832,841808,7981,641,6391,628,512

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, 90,348 persons from overseas arrived in New Zealand during the year ended 31st March, 1940, which, compared with 1938-39 shows a decrease of 19,332. During the same period 84,412 persons departed. This figure, compared with the corresponding one for 1938-39, shows a decrease of 20,197. For the first few months of the year the migration figures showed little variation from the previous year, but, since the outbreak of war restrictions on migration, diversion of ships, &c., have resulted in a considerable decrease.

In addition to the above, there were also 11,885 “through” passengers who called at a port of New Zealand en route to their destination, and 559 “tourists on cruising liners.”

Migration in 1939-40, for the third time since 1930-31, recorded an excess of arrivals over departures (5,936) as compared with an excess of 5,071 during 1938-39.

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, Males.Arrivals.Departures.Excess of Arrivals over Departures.
Males.Females.Totals.Males.Females.Totals.
* Excess of departures.
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*
193716,04115,62931,67015,54716,47032,023-353*
193819,29219,44638,73817,87018,48236,3522,386
193921,56921,07942,64818,21519,47037,6854,963
194015,86815,56431,43213,07012,33425,4046,028

The excess of “crew” arrivals over “crew” departures, neither of which is included above, provided an average annual increment of 400 to the population of New Zealand during the last ten years.

CLASSES OF ARRIVALS AND DEPARTURES.

The following table gives an analysis of all classes of passenger arrivals during the last five years, and therefore includes “through” passengers and tourists on cruising liners.

1935-36.1936-37.1937-38.1938-39.1939-40.
Immigrants intending permanent residence1,9152,8074,3416,4937,315
Permanent residents returning12,19414,02717,67219,25914,093
Visitors—     
  Tourists.9,92711,34812,88013,0546,890
  Tourists on cruising liners4,3575,9496,6548,708559
  On business1,2671,3951,5531,8051,316
  Theatrical, entertaining, &c.552569872730562
  Others, officials, &c.305566404328336
  In transit755908938906836
Not stated2150787384
Through passengers10,8219,86112,20413,80111,885
Total42,11447,48057,59665,15743,876

New immigrants in 1939-40 showed an increase of 13 per cent. on the previous year's figure, but New Zealand residents returning and temporary visitors show large decreases on the figures for 1938-39.

The succeeding table, which gives an analysis of passenger departures, reveals substantial decreases in 1939-40 for all classes.

1935-36.1936-37.1937-38.1938-39.1939-40.
Permanent residents departing—     
  Permanently4,3313,9723,9973,8383,129
  Temporarily11,63014,14816,38317,54410,205
  Not stated43495888169
Temporary residents departing12,04613,85415,91416,21511,901
Tourists on cruising liners4,3575,9496,6548,708559
Through passengers10,8219,86112,20413,80111,885
Totals43,22847,83355,21060,19437,848

AGES.

The following table gives the age-distribution of immigrants and emigrants for the twelve months ended 31st March, 1940:—

Age, in Years.Permanent Arrivals.Permanent Departures.Excess of Arrivals over Departures.
Males.Females.Totals.Males.Females.Totals.
* Excess of departures over arrivals.
0-147376531,390206185391999
15-249216431,564442280722842
25-341,3199392,2584824289101,348
35-446485541,202243227470732
45-59363316679214210424255
60 and over8211519781125200-9*
Unspecified13122524619
Totals4,0833,2327,3151,6701,4593,1294,186

ORIGIN AND DESTINATION.

Of the 7,315 new immigrants during the year 1939-40 intending to settle in the Dominion, the vast majority (5,861 or 80 per cent.) came from British countries, mainly from the British Isles, Australia. Canada, India, Hong Kong, and Fiji. The majority of immigrants from foreign countries came from China, Germany, Yugoslavia, Czechoslovakia, the United States of America, and Switzerland.

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.1935-36.1936-37.1937-38.1938-39.1939-40.
British Isles6538921,5132,0202,098
India73103107139122
Union of South Africa1024283226
Canada7189158257277
Australia7851,1821,7873,0213,040
Other British countries128178204273298
Poland108261311
Germany (including Austria)94172221304
Switzerland5671159
Italy1912203735
Czechoslovakia1....169
Hungary....4630
Yugoslavia368313117887
China4076118145644
United States of America2549526463
Other foreign countries and unspecified446410875152
Totals1,9152,8074,3416,4937,315

Of the New Zealand residents who left the Dominion permanently, the great majority (93 per cent.) went to British countries. Foreign countries, other than the United States of America and China, recorded only very small figures.

NATIONALITIES.

The outstanding feature of the external migration for 1939-40 has been the arrival of relatively large numbers of immigrants of foreign nationality who intend permanent residence in the Dominion. The unsettled state of Europe and the treatment of certain racial minorities has resulted in the emigration of numbers of these to countries where they are not subject to the same restrictions. A considerable number of these refugees have arrived in New Zealand during recent years, but it is impossible to distinguish them from other immigrants. The following summary shows the principal nationalities concerned during the two years subsequent to the annexation of Austria by Germany (March, 1938) as compared with the annual average in the previous five and a quarter years:—

Country of Nationality.Yearly Average, Period 1st January, 1933, to 31st March. 1938.Year ended 31st March, 1939.Year ended 31st March, 1940.
European—   
  Norway374
  Denmark4823
  Poland152729
  Czechoslovakia13102
  Switzerland4839
  Hungary11145
  Yugoslavia5817385
  Netherlands61416
  Belgium....1
  France7510
  Germany35251423
  Austria2
  Italy162916
  Other232333
Other—   
  United States of America294338
  Japan296
  China41127680
  Syria5....
  Other..89
    Total2527461,559

In addition to the large increase in numbers from European countries, Chinese nationals arriving in 1939-40 showed an increase of 553, or 435 per cent., on the previous years's total. Further information regarding these is given below on a racial basis.

Prior to 1938-39 new foreign immigrants showed a large preponderance of males, but in 1938-39 the female percentage rose to 44 per cent. of the arrivals and in 1939-40 it reached 51 per cent. Of the numerically larger countries represented above. Germany. Yugoslavia, and China all recorded more females than males.

The number of foreign nationals among New Zealand residents departing permanently during the year ended 31st March, 1940, was 151 (113 males and 38 females) or 4.6 per cent. of the total.

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 1939-40 comprised 88 Indians, 684 Chinese, and 52 of other races. The great majority of the Chinese were persons arriving on temporary permits for a stay of one year or over, and by Chinese residents of New Zealand returning after an absence of more than a year. For statistical purposes both these classes of people are treated as immigrants intending permanent residence. Departures were 97 Indians, 50 Chinese, and 26 of other races. In the last ten years permanent arrivals have aggregated 1,046 Chinese, 519 Indians, and 319 others; and the permanent departures 569 Chinese. 289 Indians, and 200 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.
1931375162247784542157255954
1932327117133577461140142743
193324081148469340112150602
193422210715248134992132573
1935273130140543228104153485
1936309158283750218109256583
1937343178298819218111258587
19384731723791,024265171317753
19393112554561,022160199330689
19407801583361,274127231291649

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.
19301,405
1931489
193277
19339
19341
1935Nil
19369
193711
193811
19398

The total to 31st December, 1939, was 226,268, 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
1935-3984,4401,892

PASSPORTS.

PERMISSION TO ENTER NEW ZEALAND.

With certain specified exceptions, no person of sixteen years of age or over 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.

With certain exceptions, all aliens require to have their passports viséd by a British Diplomatic or Consular Officer.

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 crow of the vessel in which he arrives, or to a British subject arriving from the Commonwealth of Australia.

DEPARTURE FROM NEW ZEALAND.

All persons sixteen years of age or over travelling to places beyond the seas require a permit from the Minister or Under-Secretary of Internal Affairs.

British subjects travelling between New Zealand and Australia do not require passports, but permits are necessary.

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 came 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 20th March, 1935. This Act docs two things: in the first place, it brings the New Zealand law into conformity with the law of the United Kingdom relative to the nationality of married women (see p. 70 of 1940 Year-Book). In the second place, the New Zealand Act allows 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 1939, 31 women took advantage of section 3 of the Act and made the necessary declaration. The nationalities of the husbands were as follows: German, 10; Danish, Swedish, Yugoslav, Italian, and Chinese, 2 each; Norwegian, Hungarian, Greek, and Japanese, 1 each. In addition, one woman was returned as “No nationality, formerly Austrian.”

During the year 1939 certificates of naturalization in New Zealand were granted to 141 persons of the undermentioned birthplaces, as compared with 386 in the previous year. In addition, 33 children were included in the certificates of their parents.

Country of Birth.Males.Females.Totals.Children.*
* Children Included in certificate of parent; additional to preceding figures.
England1..1..
Norway9..9..
Sweden13114..
Denmark7..7..
Russia2..22
Finland2..2..
Latvia2..2..
Poland5..5..
Germany527..
Belgium2..2..
France112..
Switzerland10..10..
Italy26..2611
Czechoslovakia112..
Yugoslavia3313410
Greece2..2..
Syria3..3..
Palestine1..1..
Japan1..1..
Netherlands East Indies2..2..
U.S.A2..2..
Society Islands1..1..
Western Samoa3..37
Tonga..113
Total134714133

There were also 76 cases in which declarations were made by wives of naturalized British subjects who desired to acquire British nationality.

In the ten years 1930-39, 1,443 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.
Yugoslavia417
Italy166
Denmark134
Germany (including Austria)111
Sweden92
Norway82
Poland51
Russia43
United States40
Greece40
Finland34
Switzerland32
France31
Syria29
Netherlands14
Latvia14
Western Samoa13
Belgium12
Hungary7
Other countries81
Total1,443

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.
* Includes Maori half-castes living as Europeans.
1881191,534296,355487,88939.2660.74
1886248,909327,615576,52443.1756.83
1891279,642344,813624,45544.7855.22
1896338,739362,355701,09448.3251.68
1901388,626381,678770,30450.4549.55
1906474,605411,390885,99553.5746.43
1911561,281444,3041,005,58555.8244.18
1916648,439447,7891,096,22859.1540.85
1921741,255*477,658*1,218,913*60.8139.19
1926831,813512,6561,344,46961.8738.13
1936938,939552,5451,491,48462.9537.05

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.
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
1939-40203,968202,8241,144

The whole of the 203,968 passengers from the South Island in 1939-40 landed at Wellington, including 159,015 from Lyttelton, 24,430 from Nelson, and 20,522 from Picton.

The 202,824 passengers who landed in the South Island for the same period included 156,912 at Lyttelton, 24,636 at Nelson, and 21,276 at Picton, 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, 1940, the arrivals in the North Island were 14,383 and in the South Island 13,824. The corresponding figures for the year ended 31st March, 1939, were 13,710 and 13,020 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, 1940.
1901.1921.1926.1936.
* Including 196 Maori wives of Europeans, provincial district not specified.
Auckland25,400204,899406,899469,458546,970581,945
Hawke's Bay4,26039,60465,08070,35376,96879,500
Taranaki3,75040,46565,24471,84877,65279,900
Wellington10,870146,326254,695281,020316,446338,200
Marlborough4,22013,74618,28918,79319,14920,100
Nelson10,87038,06747,73450,87859,48158,700
Westland4,88014,56614,25315,26018,67619,100
Canterbury13,940144,195199,969215,079234,399239,656
Otago—      
  Otago portion14,050125,782137,062149,921151,213150,700
  Southland portion11,17048,01662,43965,52972,85673,100
    Totals103,410815,862*1,271,6641,408,1391,573,8101,640,901

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

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
1916*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 and over214,098254,138302,913349,271401,710472,603531,588
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 and 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 55 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, 1940, was as follows:—

URBAN AREAS.—ESTIMATED POPULATION (INCLUDING MAORIS), 1ST APRIL, 1940.

Urban Area.Population (including Maoris).
* Excludes a small area which, though part of the borough, is not within the urban area.
Auckland. 
Auckland City106,600
  Birkenhead Borough3,470
  Northcote Borough2,400
  Takapuna Borough7,620
  Devonport Borough9,000
  New Lynn Borough3,680
  Mount Albert Borough20,900
  Mount Eden Borough19,300
  Newmarket Borough3,010
  Ellerslie Borough2,790
  One Tree Hill Borough8,870
  Onehunga Borough11,450
  Otahuhu Borough6,010
  Remainder of urban area16,900
Total222,900
Wellington. 
Wellington City123,200
  Lower Hutt Borough20,100
  Petone Borough11,250
  Eastbourne Borough2,410
  Johnsonville Town District1,980
  Remainder of urban area3,860
Total162,800
Christchurch. 
Christchurch City94,600
  Riccarton Borough5,770
  New Brighton Borough5,320
  Sumner Borough3,290
  Lyttelton Borough*3,110
  Remainder of urban area23,410
Total135,500
Dunedin. 
Dunedin City65,500
  Port Chalmers Borough2,050
  West Harbour Borough1,840
  St. Kilda Borough7,750
  Green Island Borough*2,340
  Remainder of urban area3,220
Total82,700
Hamilton. 
Hamilton Borough17,950
  Remainder of urban area2,950
Total20,900
Gisborne. 
Gisborne Borough13,950
  Remainder of urban area2,350
Total16,300
Napier. 
Napier Borough16,050
  Taradale Town District1,240
  Remainder of urban area2,210
Total19,500
Hastings. 
Hastings Borough13,650
  Havelock North Town District1,220
  Remainder of urban area4,130
Total19,000
New Plymouth. 
New Plymouth Borough17,500
  Remainder of urban area1,900
Total19,400
Wanganui. 
Wanganui City23,500
  Remainder of urban area2,600
Total26,100
Palmerston North. 
Palmerston North City23,600
  Remainder of urban area1,900
Total25,500
Nelson. 
Nelson City11,500
  Tahunanui Town District890
  Remainder of urban area1,510
Total13,900
Timaru. 
Timaru Borough17,900
  Remainder of urban area1,400
Total19,300
Invercargill. 
Invercargill City22,700
  South Invercargill Borough1,160
  Remainder of urban area2,640
Total26,500

COUNTIES.—ESTIMATED POPULATION (INCLUDING MAORIS) AND AREA, 1ST APRIL, 1940.

(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—  
Mangonui8,510900
Whangaroa2,690240
Hokianga9,200613
Bay of Islands10,770820
Whangarei12,0201,046
Hobson6,730746
Otamatea5,370421
Rodney5,160477
Waitemata14,400607
Eden11,45014
Great Barrier Island420110
Manukau10,300240
Franklin14,350551
Raglan10,600930
Waikato13,130648
Waipa12,980435
Otorohanga5,800600
Kawhia2,370330
Waitomo7,9901,137
Taumarunui3,810878
Coromandel2,720439
Thames2,880419
Hauraki Plains5,050233
Ohinemuri3,490237
Piako10,800444
Matamata9,750930
Tauranga10,250609
Rotorua6,070989
Taupo4,2103,272
Whakatane10,9001,677
Opotiki4,8001,537
Matakaoa1,970295
Waiapu6,700793
Uawa1,800256
Waikohu3,350947
Cook8,190791
Wairoa7,8501,373
Hawke's Bay16,3501,673
Waipawa3,570524
Waipukurau1,010121
Patangata2,720658
Dannevirke4,930426
Woodville1,920156
Weber350118
Ohura2,150416
Whangamomona1,280447
Clifton2,910444
Taranaki6,530229
Inglewood3,400187
Egmont4,700239
Stratford5,300419
Eltham3,010207
Waimate West2,80083
Hawera5,930191
Patea3,950591
Kaitieke3,320550
Waimarino3,170883
Waitotara3,730468
Wanganui3,920460
Rangitikei9,5001,675
Kiwitea2,450359
Pohangina1,380259
Oroua3,950190
Manawatu5,450264
Kairanga5,470184
Horowhenua7,550544
Hutt9,870462
Makara4,600117
Pahiatua2,860288
Akitio1,160321
Castlepoint620203
Eketahuna2,030311
Mauriceville770115
Masterton3,440586
Wairarapa South2,990440
Featherston3,990953
Totals424,64043,811
   
South Island—  
Sounds1,060505
Marlborough7,0001,920
Awatere1,7801,243
Kaikoura2,960705
Amuri2,4502,256
Cheviot1,400327
Waimea12,2001,539
Takaka2,030456
Collingwood1,510562
Buller6,3501,950
Murchison1,8001,412
Inangahua3,900949
Grey5,6901,579
Westland5,7004,410
Waipara2,680937
Kowai2,040157
Ashley700309
Rangiora3,27096
Eyre1,800175
Oxford1,660318
Tawera850941
Malvern3,000250
Paparua5,730136
Waimairi14,75048
Heathcote5,88020
Halswell2,10040
Mount Herbert44066
Akaroa1,610169
Chatham Islands720372
Wairewa1,010170
Springs1,82091
Ellesmere3,270230
Selwyn1,540954
Ashburton11,6502,459
Geraldine5,900690
Levels4,950263
Mackenzie3,1002,739
Waimate7,1101,383
Waitaki10,1502,392
Waihemo1,250338
Waikouaiti4,510312
Peninsula2,82040
Taieri5,920903
Bruce4,260520
Clutha7,240990
Tuapeka4,7701,388
Maniototo2,9101,340
Vincent4,7002,922
Lake2,2703,872
Southland26,2203,736
Wallace9,9803,727
Fiord403,035
Stewart Island510670
Totals.231,74059,011
Grand totals656,380102,822

BOROUGHS.—ESTIMATED POPULATION (INCLUDING MAORIS) AND AREA, 1ST APRIL, 1940.

Borough.Population (Including Maoris).Approximate Area, in Acres.
North Island—  
Whangarei7,6103,354
Dargaville2,3002,800
Birkenhead3,4703,084
Northcote2,4001,190
Takapuna7,6202,780
Devonport9,9001,100
New Lynn3,6801,392
Auckland (City)106,60018,253
Mount Albert20,9002,430
Mount Eden19,3001,476
Newmarket3,010182
Ellerslie2,790745
One Tree Hill8,8702,430
Onehunga11,4501,876
Otahuhu6,0101,345
Manurewa1,5801,960
Papakura1,9002,010
Pukekohe2,6903,470
Huntly2,090801
Ngaruawahia1,4801,112
Hamilton17,9503,740
Cambridge2,3301,280
Te Awamutu2,5801,162
Te Kuiti2,6201,668
Taumarunui2,7801,925
Thames4,2802,712
Paeroa2,2801,419
Waihi4,0004,094
Te Aroha2,4702,783
Morrinsville2,000950
Matamata1,480934
Tauranga3,910998
Te Puke1,0301,047
Rotorua6,5303,288
Whakatane1,9601,507
Opotiki1,520772
Gisborne13,9503,378
Wairoa2,6201,603
Napier16,0502,024
Hastings13,6502,612
Waipawa1,1601,710
Waipukurau2,1201,040
Dannevirke4,4701,300
Woodville1,0501,054
Waitara2,0601,587
New Plymouth17,5004,070
Inglewood1,280703
Opunake1,100676
Stratford3,9202,016
Eltham1,9001,599
Hawera4,790897
Patea1,4701,420
Ohakune1,4002,079
Raetihi1,190958
Wanganui (City)23,5005,726
Taihape2,2101,923
Marton2,8401,415
Feilding4,7402,031
Foxton1,5701,271
Palmerston N. (City)23,6004,851
Shannon920844
Levin2,7901,332
Otaki1,8301,390
Upper Hutt4,3302,165
Lower Hutt20,1003,706
Petone11,2501,132
Eastbourne2,4101,546
Wellington (City)123,20016,289
Pahiatua1,760720
Eketahuna740948
Masterton9,5202,973
Carterton1,9501,265
Greytown1,1901,927
Featherston1,040760
Martinborough9501,070
Totals619,490170,079
   
South Island—  
Picton1,4101,052
Blenheim5,1201,640
Nelson (City)11,5004,966
Richmond1,1502,600
Motueka1,7502,523
Westport4,290760
Runanga1,6801,186
Greymouth8,5002,522
Brunner1,0005,700
Kumara430842
Hokitika2,750674
Ross4304,196
Rangiora2,260877
Kaiapoi1,610877
Riccarton5,770728
Christchurch (City)94,60010,404
New Brighton5,3201,651
Sumner3,2903,797
Lyttelton3,1602,540
Akaroa460233
Ashburton7,1801,830
Geraldine940566
Temuka1,920795
Timaru17,9002,780
Waimate2,320715
Oamaru7,6001,375
Hampden290630
Palmerston790900
Waikouaiti5901,958
Port Chalmers2,050500
West Harbour1,8402,020
Dunedin (City)65,50015,227
St. Kilda7,750462
Green Island2,350875
Mosgiel2,160965
Milton1,370315
Kaitangata1,2901,280
Balclutha1,710639
Tapanui300129
Lawrence640615
Roxburgh460515
Naseby200112
Alexandra880815
Cromwell730806
Arrowtown240457
Queenstown930270
Gore4,7701,940
Mataura1,5401,272
Winton880505
Invercargill (City)22,7005,914
South Invercargill1,1602,257
Bluff2,0802,111
Riverton910718
Totals320,450102,036
Grand totals939,940272,115

TOWN DISTRICTS.—ESTIMATED POPULATION (INCLUDING MAORIS) AND AREA, 1ST APRIL, 1940.

Town District.Population (including Maoris).Approximate Area, in Acres.
* Parent county shown in parentheses.
(a) Town Districts not forming Ports of Counties.
North Island—  
Kaitaia8701,123
Kaikohe7701,167
Hikurangi1,010960
Kamo460852
Warkworth6501,420
Helensville9601,300
Henderson1,2001,265
Glen Eden1,3401,267
Howick9301,091
Papatoetoe2,6201,267
Waiuku8901,275
Tuakau7301,265
Leamington5401,330
Otorohanga790314
Manunui7801,251
Putaruru850975
Mount Maunganui690935
Taradale1,2401,380
Havelock North1,220835
Ohura470815
Manaia620510
Waverley690484
Mangaweka390955
Hunterville580791
Bull's520677
Johnsonville1,980842
Totals23,79026,346
South Island—  
Tahunanui890520
Leeston550391
Tinwald6801,525
Pleasant Point550730
Wyndham540680
Lumsden5201,264
Nightcaps600285
Otautau580954
Totals4,9106,349
Grand totals28,70032,695
(b) Town Districts forming Parts of Counties.*
North Island—  
Kohukohu (Hokianga)3701,020
Rawene (Hokianga)340280
Russell (Bay of Islands)4001,066
Kawakawa (Bay of Islands)540280
Onerahi (Whangarei)420990
Mercer (Franklin)3001,000
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)2701,255
Kaponga (Eltham)410558
Normanby (Hawera)350260
Totals5,29012,250
South Island—  
Havelock (Marlborough)260210
Takaka (Takaka)470585
Southbridge (Ellesmere)400531
Outram (Taieri)380886
Clinton (Clutha)430930
Edendale (Southland)420696
Totals2,3603,838
Grand totals7,65016,088

AGE DISTRIBUTION.

The following table shows the age distribution of the population at 1st April, 1940. The figures are based on the 1936 Census data and brought up to date from statistics of births, ages of persons dying, and ages of persons arriving in or departing from New Zealand.

Age-group,Excluding Maoris.Maoris.
Males.Females.Totals.Males.Females.Totals.
Under 564,22362,298126,5217,9237,65715,580
5-961,60058,700120,3006,9506,70013,650
10-1466,80064,000130,8005,9755,80011,775
15-1970,10067,000137,1004,8754,5509,425
20-2464,20064,700128,9004,0253,8257,850
25-2966,10065,300131,4003,7753,5007,275
30-3462,00059,900121,9003,0752,7255,800
35-3955,20053,100108,3002,1751,9504,125
40-4447,90049,90097,8002,0501,8003,850
45-4943,40046,70090,1001,5501,2252,775
50-5445,40045,40090,8001,4501,0752,525
55-5943,20040,80084,0001,0257751,800
60-6435,30033,40068,7008507001,550
65-6925,00024,40049,4006005751,175
70-7416,10016,40032,5005254751,000
75-798,8009,50018,300225200425
80 and over6,4006,70013,100200200400
Total under 14178,900171,800350,70019,70019,10038,800
Total under 16206,400198,200404,60021,90021,20043,100
Total under 21275,500264,600540,10026,50025,50052,000
Totals 21 and over506,223503,5981,009,82120,74818,23238,980
Grand total781,723768,1981,549,92147,24843,73290,980

DENSITY OF POPULATION.

The total area of the Dominion of New Zealand is approximately 103,935 square miles. Omitting the annexed islands and certain uninhabited outlying islands, the area of the land-mass remaining is 103,416 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 1940 may be quoted as 15.87 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 exorcise 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 POPULATION.

A record of early statistics of Maoris is given in Vol. III of the 1936 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 1939-40 the net increase of the Maori population was 2.86 per cent., which compares with 0.89 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
190145,549
190650,309
191152,723
191652,997
192156,987
192663,670
193682,326

Of the 90,980 Maoris at the 1st April, 1940, 87,562 were in the North Island. Auckland Provincial District contains the bulk (66,000), particularly in the Auckland Peninsula and Poverty Bay regions. Hawke's Bay contains 6,800; Taranaki, 4,600; and Wellington, 10,400. 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
Totals63,67082,326
   
Counted in the non-Maori population—
 1926.1936.
Maori-European quarter caste6,05311,508
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).

* Including Austria and Sudetenland.

†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 Wales41,215193825
Scotland5,00619393
Northern Ireland1,28519380.S
Eire2,93719382
India (including Native States)362,0001938221
Burma15,797193810
Ceylon5,78019384
Union of Sth.Africa10,16019396
Canada11,20919387
Newfoundland29519380.2
Australia7,01519404
  New South Wales2,77019402
  Victoria1,89719401
  Queensland1,01819400.6
  South Australia59719400.4
  Western Australia46719400.3
  Tasmania24019400.1
New Zealand1,64119401
Belgium8,38619395
Bulgaria6,37119394
Denmark3,80519392
Estonia1,13419390.7
Finland3,83519382
France41,980193826
Germany*79,577193948
Greece7,10719394
Hungary11,13819397
Italy43,509193927
Latvia1,99519391
Lithuania2,87919402
Netherlands8,72719395
Norway2,93719402
Poland34,776193921
Portugal7,46019395
Rumania19,934193912
Russia (Soviet Union)170,4671939104
Spain25,241193915
Sweden6,31019394
Switzerland4,20019393
Yugoslavia15,703194010
China466,8001936284
French Indo-China23,854..15
Iran15,00019389
Japan72,223193844
Netherlands East Indies60,727193037
Philippine Commonwealth15,984193910
Thailand14,97619389
Turkey17,829193811
Algeria7,23519364
Egypt16,129193810
Cuba4,22819383
Mexico19,479193812
United States of America130,215193879
Argentina12,95819398
Bolivia3,30019382
Brazil44,116193927
Chile4,64419393
Colombia8,70219385
Ecuador3,20019382
Peru7,85919405
Uruguay2,12019391
Venezuela3,53019382

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.

* But see p. 68.

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 69 and 70.

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.
192029,92125.09
192128,56723.36
192229,00623.18
192327,96721.96
192428,01421.60
192528,15321.20
192628,47321.06
192727,88120.29
192827,20019.57
192926,74719.03
193026,79718.83
193126,62218.45
193224,88417.12
193324,33416.63
193424,32216.51
193523,96516.17
193624,83716.64
193726,01417.29
193827,24917.93
193928,83318.73

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 that year was more than maintained during the subsequent three years, the number of births registered in 1939 being the highest recorded since 1922, and is the third highest figure ever attained in New Zealand, while the birth-rate is the highest since 1930. 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 6.36 per 1,000 of population between 1920 and 1939 is equivalent to a decline of 25 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 tinder 45.Number of Births.Birth-rate per 1,000 Women 15 and under 45.
Married.Total.Legitimate.Total.Legitimate.*Total.
* Per thousand married women.
187850,99980,31317,34117,770340.0221.3
188157,46196,14418,19818,732315.0194.8
188662,709117,89518,69719,299298.2163.7
189163,172131,27117,63518,273279.2139.2
189669,816158,21417,77818,612254.6117.6
190179,420183,38719,55420,491246.2111.7
190698,249212,59823,12024,252235.3114.1
1911119,390240,71425,27626,354211.7109.5
1916141,322267,30027,36328,509193.6106.7
1921150,400288,47727,30928,567181.699.0
1926161,739313,36327,00028,473166.990.9
1936173,557344,12423,71124,818136.672.1

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 9.53 in 1939. 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
1936-193917.659.188.47

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.

Palestine1935-3941.925.6
Egypt1934-3843.015.6
Union of S. Africa1935-3924.815.0
Greece1934-3828.013.3
Yugoslavia1934-3829.012.7
Japan1934-3829.712.3
Argentina1935-3924.312.2
Netherlands1935-3920.311.6
Poland1934-3825.511.5
Portugal1935-3927.411.3
Ceylon1935-3935.611.0
Rumania1935-3930.210.6
Canada1935-3920.210.4
Bulgaria1935-3924.210.3
Uruguay1934-3820.19.9
Chile1935-3934.29.5
Lithuania1935-3922.99.4
Italy1935-3923.19.3
New Zealand1935-3917.48.4
Australia1935-3917.27.7
Germany1935-3919.37.4
Denmark1935-3917.97.3
Finland1934-3819.86.7
United States*1935-3917.16.1
Hungary1935-3920.25.9
Northern Ireland1935-3919.85.5
Eire1935-3919.45.1
Norway1935-3915.25.0
Scotland1935-3917.74.5
Czechoslovakia1934-3817.44.3
Latvia1935-3918.14.1
Switzerland1935-3915.43.8
England & Wales1935-3915.03.0
Sweden1935-3914.52.8
Belgium1934-3815.52.7
Estonia1935-3916.11.1
France1935-3914.9−0.7†

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.
193013,71313,0841,048
193113,76612,8561,071
193212,82412,0601,063
193312,41911,9151,042
193412,55411,7681,067
193512,31611,6491,057
193612,60812,2291,031
193713,24512,7691,037
193813,92913,3201,046
193914,70514,1281,041

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 1930-39 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.

First-born.Second-born.Third-born.Fourth-born.Number of Cases.
MaleMaleMaleMale1,270
MaleMaleMaleFemale1,205
MaleMaleFemaleMale1,136
MaleMaleFemaleFemale1,084
MaleFemaleMaleMale1,046
MaleFemaleMaleFemale1,004
MaleFemaleFemaleMale1,057
MaleFemaleFemaleFemale978
FemaleFemaleFemaleFemale1,029
FemaleFemaleFemaleMale1,117
FemaleFemaleMaleFemale1,001
FemaleFemaleMaleMale1,068
FemaleMaleFemaleFemale973
FemaleMaleFemaleMale1,045
FemaleMaleMaleFemale1,057
FemaleMaleMaleMale994

Of the 17,064 families covered, in 8,780 the first child was a male and in 8,284 a female, the number of males per 1,000 females being thus 1,060. The proportion is reduced for subsequent births. The figures are as follows:—

Child.Males.Females.Males per 1,000 Females.
First8,7808,2841,060
Second8,7648,3001,056
Third8,6458,4191,027
Fourth8,7338,3311,048

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 1930-39 was 1,054 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 five 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.
193523,96523,6852752*11.70
193624,83724,60822529.22
193726,01425,735277110.80
193827,24926,949296211.06
193928,83328,528299310.50

Counting only cases where both children were born alive, there were 299 cases of twin births (598 children) registered in 1939. There were also three cases of triplets.

The number of accouchements resulting in living births was 28,528, and on the average one mother in every 94 gave birth to twins (or triplets).

When still-births are taken into account, however, the total number of accouchements for the year 1939 is increased to 29,397, and the number of cases of multiple births to 333. On this basis the proportion of mothers giving birth to twins or triplets is increased to one in 88.

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

Year.Total Cases.Both Males.Both Females.Opposite Sexes.
19352758390102
1936225827172
19372779381103
193829610189106
19392999698105

During the ten years 1930-39 there were nineteen cases of triplets. In four cases all three children were males, in five cases all were females, in four cases there were two males and one female, and in six cases two of the three children were females.

AGES OF PARENTS.

Information as to the relative ages of parents of legitimate living children whose births were registered in 1939 is shown 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-two cases where plural births would have been registered had not one child been still-horn.

† Including three cases of triplets.

Single Births.
Under 21153804578171451241....1,768
21 and under 25521,3493,0111,21830856241076,035..
25 and under 3094083,7443,4671,1462468247179,166..
30 and under 351346862,7511,904545177832946,214
35 and under 40..7633951,1687583351097482,917
40 and under 45....426126349241124576933
45 and over........310372610..86
Totals2152,6028,0868,0284,7001,9769004001941827,119*
Multiple Births.
Under 21..63..............9
21 and under 25..72510311......47
25 and under 30..639331231......94
30 and under 35....113424652....82
35 and under 40......6221031....42
40 and under 45......134312..14
45 and over................1..1
Totals..19788464241343..289
Grand totals2152,6218,1648,1124,7642,0009134041971827,408

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 and (2) duration of marriage. The table under the first heading for the year 1939 is here summarized.

Age of Mother.Number of Previous Issue.Totals.
0.1.2.3.4.5.6 and under 10.10 and under 15.15 and over.
* This number represents 27,110 single cases and 289 multiple cases.
Under 211,43929939............1,777
21 and under 253,7551,6115291433941....6,082
25 and under 304,0062,8731,3506042729659....9,260
30 and under 351,5831,8261,29172039923223510..6,296
35 and under 4044759157445230819634546..2,959
40 and under 4511110813912313385201441945
45 and over677109102413389
Totals11,3477,3153,9292,0521,160623865113427,408*

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 1939 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 211,7772,1631.22
21-246,0829,4101.55
25-299,26018,6852.34
30-346,29617,3942.76
35-392,95911,2223.79
40-449454,5994.87
45 and over896016.75
Totals27,40864,0742.33

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 1939) 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: 1935, 2.64; 1936, 2.55; 1937. 2.47; 1938, 2.41; and 1939, 2.33. 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.

FIRST BIRTHS.

Of a total of 123,879 accouchements resulting in legitimate births during the five years 1935-39, the issue of no fewer than 48,678, or 39 per cent., were firstborn children, and in 20,872, or 43 per cent. of these cases, the birth occurred within twelve months, and in 35,196, or 72 per cent., within two years after the marriage of the parents. In the remaining 28 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 1935 to 1939, it is not surprising to find the proportion of first births for these years 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 1939 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 four 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.
193522,6508,07035.633,70945.965,93673.56
193623,4868,93338.043,98144.576,52673.05
193724,5409,78339.874,31344.097,07472.31
193825,79510,54540.884,38941.627,62072.26
193927,40811,34741.404,48039.488,04070.86
Totals for five years123,87948,67839.2920,87242.8835,19672.30

During the five years there were 8,892 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 5,626 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.Illegitimate Cases.Legitimate Cases within Seven Months after Marriage.Proportion of (c) to (a).Proportion of (b) + (c) to Total of (a) + (b).
(a)(b)(c)(d)(e)
    Per Cent.Per Cent.
19358,0701,0351,67420.7429.75
19368,9331,1221,76819.7928.74
19379,7831,1951,78918.2927.18
193810,5451,1541,82917.3424.64
193911,3471,1201,83216.1523.68
Totals for five years48,6785,6268,89218.2726.73

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.
1914.1924.1934.1939.
Under 1 year52.9550.0646.2539.48
1 and under 2 years28.6226.6426.7931.38
2 and under 3 years9.0210.4310.2414.09
3 and under 4 years3.435.516.166.22
4 and under 5 years1.883.033.963.02
5 and under 10 years3.263.365.494.78
10 years and over0.840.971.111.03
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 1939, 1.87 years.

An item of interest extracted from the 1939 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.
1914.1924.1934.1939.
Under 206.737.558.907.87
20 and under 2535.8938.1640.3937.91
25 and under 3035.0132.5932.7935.30
30 and under 3515.6114.6813.1013.95
35 and under 405.525.333.793.94
40 and under 451.161.590.990.98
45 and over0.080.100.040.05
Totals100.00100.00100.00100.00

The figures of average ages of mothers at the birth of their first children are as follows for the above years: 1914, 26.55; 1924,26.39; 1934, 25.90; and 1939, 26.99.

ILLEGITIMACY.

The births of 1,133 children (603 males, 530 females) registered in 1939 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.
19301,3715.12
19311,3154.94
19321,2625.07
19331,1194.60
19341,1614.77
19351,0464.36
19361,1264.53
19371,2104.65
19381,1644.27
19391,1333.93

The illegitimacy rate for the last quinquennium is lower than for the preceding five-yearly period, the average proportion for 1935-39 being 4.35 as against an average of 4.90 for the period 1930-34. 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.
189168,9906389.25
189689,7228349.30
1901105,4209378.89
1906116,5061,1329.72
1911116,7261,0789.24
1916125,4611,1599.24
1921136,5391,2589.21
1926150,2651,4739.80
1936156,7761,1267.18

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

Included in the total of 1,133 illegitimate births in 1939 were thirteen cases of twins, the number of accouchements being thus 1,120. From the following table it will be seen that of the 1,120 mothers 362, or 32 per cent., were under twenty-one years of age.

ILLEGITIMATE BIRTHS, 1939.—AGES OF MOTHERS.

Age.Cases.
Years. 
121
131
141
159
1624
1746
1885
19108
2087
2188
2285
2384
2478
2544
2649
2742
2830
2926
3027
3117
3222
3323
3427
3517
3613
3718
3817
3920
408
414
426
436
445
452
Total1,120

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:—

Year.Number of Children legitimized.
Previously registered.Not previously registered.Total.
1930234111345
193129292384
193223695331
193330995404
193428494378
193527663339
193632785412
1937322114436
193835697453
193934957406
Totals from 1894 to 19396,7842,9979,781

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 1939 the registration of 530 adopted children (263 males and 267 females) was effected, as compared with 570 in 1938, 444 in 1937, 413 in 1936, and 340 in 1935. 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 postwar 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 Still-births per 1,000 Female Still-births.Percentage of Still-births to
Living Births.All Births.
19304703958651,1903.233.13
19314303798091,1353.042.95
19324303167461,3613.002.91
19334173057221,3672.972.88
19343873006871,2902.822.75
19353933457381,1393.082.99
19364243087321,3772.952.86
19374273347611,2782.932.84
19384093347431,2252.732.65
19394954059001,2223.123.03

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 1,258 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 1939 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 4.78, and among infants born alive, 3.93.

Of the living legitimate births registered in 1939, 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 1935-39, 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 6.6 per cent. for all births and over 8.0 per cent. for first births.

LEGITIMATE BIRTHS, 1935-39.—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 204,380963,782872.192.30
20 and under 2530,48965018,7094782.132.55
25 and under 3041,3271,08316,9446142.623.62
30 and under 3528,1688436,7873272.994.82
35 and under 4014,3496201,9961534.327.67
40 and over5,166343460376.648.04
Totals123,8793,63548,6781,6962.933.48

The next table shows the percentage of still-births to living births according to nativity order of legitimate births registered in the five years 1935-39. The figures of mothers of all ages show 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, 1935-39.—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.
First48,6781,9961,6961533.487.67
Second31,7372,467587951.853.85
Third18,3922,719596993.243.64
Fourth10,2592,250313763.053.38
Fifth5,8861,610205613.483.79
Sixth3,4001,094123443.624.02
Seventh2,15981984243.892.93
Eighth1,29855655214.243.78
Ninth80935248205.935.68
Tenth54023336126.675.15

It will be observed that the rates shown in the column for mothers aged 35-40 are, up to the sixth child, materially higher than the rates for all mothers. From the seventh child onwards the reverse holds. 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 1939 was 4,050 (2,122 males, 1,928 females). In addition, 66 births (35 males and 31 females) recorded as of Maori race were registered under the main Act, making a total of 4,116 Maori births for the year. This number represents an increase of 423 as compared with the previous year (with a consequent rise in the birth-rate from 42.37 to 46.20 per 1,000 of Maori population). The Maori birth-rate in 1939 was nearly two and a half times the non-Maori birth-rate (18.73 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.
19351,7591,4923,25140.36
19361,8121,8183,63043.79
19372,0601,9113,97146.64
19381,9391,7543,69342.37
19392,1571,9594,11646.20

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 celebrated 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 celebrated 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 with which the marriage is to be celebrated. 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 celebrated, and as the returns come in they are checked off with the entries in the Registrar's 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 the marriage has taken place.

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. 60. The numbers and rates of marriages during each of the last twenty years are here given:—

Year.Number.Rate per 1,000 of Population.
192012,17510.21
192110,6358.69
19229,5567.64
192310,0707.91
192410,2597.91
192510,4197.85
192610,6807.90
192710,4787.63
192810,5377.58
192910,9677.80
193011,0757.78
19319,8176.81
19329,8966.81
193310,5107.18
193411,2567.64
193512,1878.23
193613,8089.25
193714,3649.55
193815,32810.09
193917,11511.12

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 subsequent years the marriage-rate showed a continuous increase, culminating in a record high rate in 1939, when the figure attained was 11.12 per 1,000 of population. The number of marriages during 1939 also created a new record for the Dominion and represented an increase of 12 per cent. over the previous year. The high total recorded for 1939 was influenced to a certain extent by the impetus given to the marriage-rate consequent upon the outbreak of war.

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.)
TotalUnmarried Female Population 15 and over.Total Population.Unmarried Female Population 15 and over.
Crude.Standardized.Crude.Standardized.
18816.673.980.776125137
18866.055.160.46993102
18916.048.350.3698285
18966.847.348.0788081
19017.850.249.0908583
19068.555.653.7989491
19118.759.159.1100100100
19167.550.754.3868692
19218.759.763.9100101108
19267.953.162.69190106
19369.360.569.8107102118

The index numbers of the three classes of rates over the series of years enable the effect of standardization to be seen 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 and 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 crude 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.
Union of S. Africa1934-3810.89
United States of America1933-3710.23
Germany1934-389.66
New Zealand1935-399.64
Palestine*1935-389.37
Denmark1934-389.23
Rumania1934-389.08
Australia1935-398.82
England and Wales1934-388.63
Hungary1934-388.60
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
Canada1934-387.39
Yugoslavia1933-377.37
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 1930-39 give marriages as follows: March quarter, 2,824; June quarter, 3,492; September quarter, 2,684; December quarter, 3,536.

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 1939, commencing with January, were as follows: 1,049, 1,091, 1,144, 2,116, 1,003, 1,466, 1,084, 1,025, 1,736, 1,615, 1,279, 2,507: total for year, 17,115.

The 1939 proportions per cent. of the total marriages for the various days of the week were: Sunday, 0.3; Monday, 8.7; Tuesday, 8.7; Wednesday, 18.4; Thursday, 10.5; Friday, 8.4; Saturday, 45.0.

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 1928 and 1938 the proportion of marriages celebrated on that day increased from 13.4 per cent. to 39.7 per cent., and in 1939 the proportion of Saturday marriages rose to 45.0 per cent. Wednesday marriages, on the other hand, have declined from 41.2 per cent. to 18.4 per cent. over the last ten years.

CONJUGAL CONDITION.

The total number of persons married during the year 1939 was 34,230, of whom 31,541 were single, 1,285 widowed, and 1,404 divorced. The figures for each of the last five 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.
193511,04411,27672046442344724,374
193612,57912,82878845744152327,616
193713,05413,29776349154757628,728
193813,77614,10385354569968030,656
193915,70815,83375852764975534,230

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.
193590.625.913.4792.523.813.67
193691.105.713.1992.903.313.79
193790.885.313.8192.573.424.01
193889.875.574.5692.013.554.44
193991.784.433.7992.513.084.41

During the last ten years the number of divorced persons remarrying has increased from 29 per 1,000 persons married to 41, an appreciable advance. On the other hand the number of widowed persons remarrying has fallen from 54 per 1,000 persons married to 38 per 1,000 over the same period.

The relative conjugal condition of bridegrooms and brides for each of the last five 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.
193510,551219274442195832835090
193612,032193354477218933194676
193712,4452333764592059939353101
193813,11722343648524812050174124
193914,94724152043221211445474121

Taking the whole period covered by the foregoing table, it is found that, while 2,751 divorced men remarried, the corresponding number for women was 2,977. In the case of widowed persons, however, in spite of the fact that widows greatly exceed widowers in the population, only 2,487 widows remarried, as compared with 3,869 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 1939 were twenty-three 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 267, comprising 99 men and 168 women.

AGES OF PERSONS MARRIED.

Of the 34,230 persons married in 1939, 3,425, or 10 per cent., were under twenty-one years of age; 11,352, or 33 per cent., were returned as twenty-one and under twenty-five; 10,922, or 32 per cent., as twenty-five and under thirty; 5,976, or 17 per cent., as thirty and under forty; and 2,555, or 8 per cent., as forty years of age or over. The following table relates to the year 1939:—

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 213021081721....430
21 and under 251,4282,5196707172..4,697
25 and under 309802,9852,15037043816,537
30 and under 352257941,0445291202622,740
35 and under 405218533828617454201,109
40 and under 45546971401229541546
45 and over31869971651895151,056
Total brides2,9956,6554,3851,49563237457917,115

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 1939:—

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
1935-392.6825.9138.2616.466.753.226.72100.00
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
1935-3917.1038.2626.308.863.912.023.55100.00

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 1935-39 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. The figures for each of the last ten years are given.

MEAN AGE AT MARRIAGE (IN YEARS).

year.Bridegrooms.Brides.
193028.4726.13
193129.8326.02
193229.7126.04
193329.7225.83
193429.8626.15
193529.9426.27
193629.9726.32
193729.9326.26
193830.0326.37
193929.6426.17

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 persona. 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.
193528.1840.0550.2825.0836.5845.35
193628.2941.3050.4725.2035.7946.86
193728.2440.9050.9825.0836.4846.13
193828.2040.7650.7925.1136.3146.60
193928.0641.6852.0425.0135.8847.01

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 1939 without alteration, but in the case of bridegrooms the most popular age has varied, and for 1939 stands at 25.

MARRIAGES OF MINORS.

Of every 1,000 men married in 1939, 25 were under twenty-one years of age, while 175 in every 1,000 brides were under twenty-one.

In 301 marriages in 1939 both parties were given as under twenty-one years of age, in 2,689 marriages the bride was returned as a minor and the bridegroom as an adult, and in 127 marriages the bridegroom was a minor and the bride an adult.

Year.Age in Years.Totals.
16.17.18.19.20Number.Rate per 100 Marriages.
Bridegrooms.
1935..735992063472.85
1936..4431182053702.68
193716481142273962.76
1938..13441222193982.60
193926391412424302.51
Brides.
1935862034095837952,07617.03
1936871994396928622,27916.51
19371002264857259742,51017.47
1938932605347349812,60216.98
1939903135779591,0562,99517.50

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 has shown a material increase since 1936, but the rate per 100 marriages, however, has fluctuated during the last five years.

MARRIAGES BY MINISTERS OF VARIOUS DENOMINATIONS.

Of the 17,115 marriages registered in 1939, Church of England clergymen officiated at 4,646, Presbyterians at 4,341, Methodists at 1,790, and Roman Catholics at 2,155, while 2,973 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.
1930.1931.1932.19331934.1935.1936.1937.1938.1939.
Church of England26.9325.8225.5425.4725.5226.0726.1026.5226.9327.16
Presbyterian26.4725.7126.6326.7326.5826.7926.9426.8626.4625.37
Methodist9.899.5910.2710.5210.5010.4310.5510.7410.7310.41
Roman Catholic11.0610.7310.8111.0611.5011.4011.6511.7411.5312.60
Other denominations5.165.535.846.287.928.397.617.277.187.08
Before Registrars20.4922.6220.9119.9417.9816.9217.1516.8717.1217.38
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, 1940) 2,248, and the denominations to which they belong are shown hereunder:—

Denomination.Number.
Church of England488
Presbyterian Church of New Zealand415
Roman Catholic Church405
Methodist Church of New Zealand307
Salvation Army125
Baptist83
Associated Churches of Christ32
Congregational Independent29
Brethren26
Seventh-day Adventist38
Latter-day Saints25
Lutheran Church2
Evangelical Lutheran Concordia Conference4
Apostolic Church9
Commonwealth Covenant12
Church of Christ5
Hebrew Congregation4
Liberal Catholic Church6
Unitarian3
Assemblies of God16
Spiritualist Churches of New Zealand15
Ratana Church of New Zealand139
Ringatu Church36
Church of the Seven Rules of Jehovah1
Pentecostal2
Others21
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 676 marriages in which both parties were of the Native race were received during the year 1939. The figures for each of the last five years are as follows:—

Year.Under Native Land Act.Under Marriage Act.Totals.
193548968557
1936514126640
1937498111609
1938505126631
1939510166676

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 Conjugal Rights.
Petitions filed.Decrees Nisi.Decrees Absolute.Petitions filed.Decrees for Separation.Petitions filed.Decrees for Restitution.
19308397246201..9679
19317666835915110894
1932785653612518875
19338046836481..11877
1934839762683..19789
19358677426531..9480
19361,09993384951133104
19371,1541,0089174..138107
19381,1781,0631,05051145119
19391,2431,0921,03242161123

In 1,161 of the 1,243 cases covered by divorce petitions filed during 1939 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 1939.

Grounds.Petitions filed.Decrees Nisi granted.Decrees Absolute granted.
Husbands' Petitions.Wives' Petitions.Husbands' Petitions.Wives' Petitions.Husbands' Petitions.Wives' Petitions.
Bigamy221212
Adultery14684100769467
Desertion105105101979296
Drunkenness, with cruelty, failure to maintain, &c.1515..7
Insanity947361
Consanguinity..1..1..1
Non-compliance with order for restitution of conjugal rights803175288534
Separation for not less than three years244419197394188355
Non-consummation11..1..1
False declaration1..1..1..
Not stated..2..2..1
Totals589654483609467565

The figures shown for decrees nisi include cases whore 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 1939 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 1939.

In 409 of the 1,243 cases where petitions for dissolution were filed during 1939 there was no living issue of the marriage. The number of living issue was 1 in 362 cases, 2 in 237 cases, 3 in 103 cases, and 4 or more in 129 cases.

The table which follows shows the duration of marriage in all cases for which petitions for dissolution were filed in the five years 1935 to 1939:—

Duration of Marriage, in Years.Husbands' Petitions.Wives' Petitions.
1935.1936.1937.1938.1939.1935.1936.1937.1938.1939.
Under 5507369561004554544763
 5 and under 10123159158136156143197157176181
10 and under 1586122118128119109129166166171
15 and under 2062789793918187101115117
20 and under 30527380938975811089388
30 and over30312436341115223634
Not stated......2........1..
Totals403536546544589464563608634654

The number of children affected by the divorce petitions of their parents during each of the last five years was as follows: 1935, 1,286; 1936. 1,667; 1937, 1,725; 1938, 1,706; and 1939, 1,775.

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 also 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.
192012,10910.15
192110,6828.73
192210,9778.77
192311,5119.04
192410,7678.30
192511,0268.30
192611,8198.74
192711,6138.45
192811,8118.50
192912,3148.76
193012,1998.57
193112,0478.35
193211,6838.04
193311,7017.99
193412,5278.50
193512,2178.25
193613,0568.75
193713,6589.08
193814,7549.71
193914,1589.20

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 rose 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 much greater prevalence of pneumonia, and an epidemic of measles were largely responsible for the exceptionally high death-rate in 1938. In 1939 the rate dropped appreciably to 9.20, but even this figure represents a rise above the average rate experienced in recent years.

A long-range review of the death-rate is afforded by the graph on p. 60.

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, inter alia, in 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 9.20 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 1939, standardized on the age constitution of 1911, was 7.00 per 1,000, as compared with the crude rate (reflecting the 1939 age constitution of the people) of 9.20 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 Index Number of Female Rate (= 100).
Males.Females.Totals.
19309.427.698.57127122
19319.087.598.35124120
19328.597.478.04119115
19338.747.237.99123121
19349.267.738.50124120
19358.957.528.25122119
19369.458.038.75121118
19379.858.289.08122119
193810.718.689.71127123
193910.108.269.20126122

DISTRIBUTION OF DEATHS OVER THE YEAR.

An examination of the total number of deaths registered in each quarter of the decade 1930-39 gives the following annual averages: March quarter, 2,810; June quarter, 3,123; September quarter, 3,675; and December quarter, 3,186.

A classification according to month of death shows that in 1939 the months during which the greatest number of deaths occurred were July, May, August, and June, with totals of 1,390, 1,300, 1,365, and 1,231 respectively. Excluding December, a proportion of deaths occurring in that month not being registered till January, February had the least number of deaths (917), followed by March and January, with 1,017 and 1,057 respectively.

The least number of deaths on any one day, again excluding December, was 21, this number occurring on the 13th February. The greatest number (66) occurred on the 5th August.

AGES AT DEATH.

The deaths registered during the year 1939 are tabulated below according to age:—

Ages.Males.Females.Totals.
Under 1 month376254630
1-2 months553691
3-5 months564298
6-11 months453479
1 year534699
2 years272754
3 years191534
4 years151227
5-9 years6653119
10-14 years5547102
15-19 years8866154
20-24 years157119276
25-29 years141163304
30-34 years131133264
35-39 years178158336
40-44 years194190384
45-49 years270262532
50-54 years461328789
55-59 years7484711,219
60-64 years8345841,418
65-69 years9606191,579
70-74 years9067081,614
75-79 years8597401,599
80-84 years6375981,235
85-89 years424392816
90-94 years110135245
95-99 years193857
100 years112
102 years1..1
105 years..11
Totals7,8866,27214,158

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.
1889.1899.1909.1919.1939.1889.1899.1909.1919.1939.
Under 11,4561,8061,6341,10889825.2323.5218.2410.256.34
 1 and under 54975324764652148.616.935.314.301.51
 5 and under 102242031942441193.882.642.172.260.84
10 and under 151541581281661022.672.061.431.540.72
15 and under 202122082132181543.672.712.382.021.09
20 and under 252453023192472764.243.933.562.291.95
25 and under 302142993943473043.713.894.403.212.15
30 and under 352382533964112644.123.294.423.801.87
35 and under 402442634294883364.233.434.794.522.37
40 and under 452742663464633844.753.463.864.282.71
45 and under 503042923495175325.273.803.904.783.76
50 and under 553283554005507895.684.624.465.095.57
55 and under 603044504495511,2195.275.865.015.108.61
60 and under 652834964737281,4184.906.465.286.7410.02
65 and under 702355667228501,5794.077.378.067.8611.15
70 and under 752154647409081,6143.736.048.268.4011.40
75 and under 801593766781,0911,5992.754.907.5710.0911.29
80 and over1833916191,4562,3573.175.096.9013.4716.05
Unspecified3........0.05........
Totals5,7727,6808,95910,80814,158100.00100.00100.00100.00100.00

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, 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 lifespan 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 1939 figures reveal increases in the rates for some of the groups of early childhood and for the groups beyond middle age.

The table is of further 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.
190178.606.811.893.523.976.1611.9423.1250.59126.26280.00
191163.485.361.912.423.876.2711.0220.8353.22116.21281.21
192153.104.781.852.443.565.559.6119.9646.17102.84257.70
193138.212.831.352.282.774.648.6918.2544.18111.00269.13
193936.182.370.941.792.113.668.2120.4746.30115.08277.50
Females.
190163.875.501.643.584.726.7010.6219.4443.32107.02285.30
191148.745.371.482.764.344.928.3817.8940.44104.84221.90
192142.314.491.312.343.384.468.0014.8836.8194.42230.05
193125.672.470.971.853.203.816.8415.3636.8398.31270.44
193925.902.150.811.412.403.426.4614.4933.5198.38257.73
Both Sexes.
190171.406.171.773.554.336.4011.3721.6347.87117.97282.52
191156.315.361.702.584.095.649.8219.5547.74111.73251.81
192147.824.641.582.393.475.108.8517.5941.9099.00245.21
193132.152.651.172.072.984.227.8016.8840.56105.02269.75
193931.142.260.881.612.253.547.3317.5739.96106.54267.14

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.
193054.2354.47
193154.1455.48
193255.7956.05
193356.1756.45
193456.9957.75
193556.9557.79
193657.1257.70
193757.7058.82
193856.1358.10
193958.7759.14

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.

A new life-table has been constructed from 1936 Census data and the mortality experience of the quinquennium 1934-38. Complete results, accompanied by a brief account of the methods employed in the construction of the table, will be found in the General Report on the Census of 1936. As popular interest attaches rather to expectation of life (average after-lifetime) than to other values, publication herein has been limited to the following table showing the (complete) expectation of life for various ages.

Age.Males.Females.
 065.4668.45
 166.9269.46
 266.2368.76
 365.4467.91
 464.5967.01
 563.7066.10
1059.1161.45
1554.4256.69
2049.8952.02
2545.4347.48
3040.9442.98
3536.4238.51
4032.0334.05
4527.7829.70
5023.6425.47
5519.7221.38
6016.0617.49
6512.7613.91
709.8210.73
757.368.02
805.355.85
853.864.30

Expectation of life at age 0 is apparently still increasing in New Zealand. A brief comparison is 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
193165.0467.88
1934-3865.4668.45

DEATH-RATES OF VARIOUS COUNTRIES.

Country.Quinquennium.Average Rate per 1,000.
* Registration area.
Netherlands1935-398.7
New Zealand1935-399.0
Australia1935-399.6
Canada1935-399.8
Union of South Africa1935-399.8
Uruguay1934-3810.2
Norway1935-3910.2
Denmark1935-3910.6
United States*1935-3911.0
Switzerland1935-3911.6
Sweden1935-3911.7
Germany1935-3911.9
England and Wales1935-3912.0
Argentina1935-3912.1
Belgium1934-3812.8
Finland1934-3813.1
Czechoslovakia1934-3813.1
Scotland1935-3913.2
Lithuania1935-3913.5
Italy1935-3913.8
Bulgaria1935-3913.9
Latvia1935-3914.0
Poland1934-3814.0
Eire1935-3914.3
Northern Ireland1935-3914.3
Hungary1935-3914.3
Greece1934-3814.7
Estonia1935-3915.0
France1935-3915.6
Portugal1935-3916.1
Yugoslavia1934-3816.3
Palestine1935-3916.3
Spain1934-3816.6
Japan1934-3817.4
Rumania1935-3919.6
Ceylon1935-3924.6
Chile1935-3924.7
Egypt1934-3827.4

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 of 1911 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 1939:—

Year.Recorded Rates.Standardized Rates.
Males.Females.Totals.Males.Females.Totals.
187516.5615.0715.9219.0315.3617.30
188012.0510.7311.4613.8111.4712.70
188511.519.6710.6713.3810.0612.36
189010.518.689.6612.2610.1111.25
189510.818.899.9112.2610.0711.22
190010.338.439.4311.049.2910.21
190510.188.249.2710.498.619.60
191010.678.639.7110.678.469.62
191510.197.879.0610.197.879.09
192011.119.1510.1510.838.849.89
19259.107.488.308.686.787.78
19309.427.698.578.666.487.63
19358.957.528.257.685.786.78
193910.108.269.208.055.837.00

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.
190110.808.719.8111.8111.2111.6411.51
191110.468.219.3910.799.7410.4010.26
19219.757.668.739.658.639.239.14
19269.677.788.749.528.669.189.09
19319.087.598.358.587.858.268.21
19369.458.038.758.297.638.017.96
19379.858.289.088.417.568.037.91
193810.718.689.719.117.848.538.47
193910.108.269.208.317.267.837.78

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 1934 to 1938:—

Year.Countries.
New Zealand.England and Wales.Canada.Northern Ireland.Union of South Africa.Scotland.
* Not available.
19347.19.38.710.99.610.9
19356.89.09.011.710.310.8
19367.19.29.011.29.510.9
19377.19.39.511.49.711.1
19387.68.6*10.5*10.0

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.

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.

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 1930-39, the information being given according to age of father and of issue.

Number of Issue left by Fathers, aged—
Under 80.30 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 55091,3121,10147514223..3,562
 5 and under 10971,5152,2341,41736177105,711
 10 and under 1527632,9823,1491,078213408,227
 15 and under 2111392,9336,1503,69386717313,956
 21 and over1..1,13412,56231,78944,84738,324128,657
Unspecified....422....8
Totals6103,72910,38823,75537,06546,02738,547160,121
Married men or widowers who died—
 Leaving issue3641,5873,3406,8129,63310,4597,78139,976
 Without leaving issue2214017481,4021,8451,7609867,363
Totals5851,9884,0888,21411,47812,2198,76747,339

During the period under review 39,976 fathers left issue to the number of 100,121, an average of 4.01. For the preceding decennial period, 1920-29, the average issue left was 4.43.

Taking all deaths of married men or widowers, whether leaving issue or not, it is found that the average living issue is 3.38, as compared with 3.77 for the period 1920-29.

Average numbers of issue left by married men or widowers during the decade 1930-39 were: Under age 30, 1.04; aged 30-39, 1.88; 40-49, 2.54; 50-59, 2.89: 60-69, 3.23; 70-79, 3.77; 80 or over. 4.31. Averages are all lower than in the preceding decade.

The following table shows the average issue for various age-groups in different periods since 1905:—

Age-group (in Years) of Fathers.Total Number of Issue left.Average Number of Issue left.
1905-09.1910-19.1920-29.1930-39.1905-09.1910-19.1920-29.1930-39.
Under 302989146496101.061.141.101.04
30 and under 401,9046,6674,8053,7292.072.082.031.88
40 and under 503,99110,99111,96510,3883.412.972.762.54
50 and under 607,32216,87218,71523,7554.443.873.192.89
60 and under 7013,74227,98129,57237,0655.004.603.763.23
70 and under 8014,59540,40141,94546,0274.634.854.553.77
80 and over6,10223,07533,92038,5474.514.564.634.31
Totals47,954126,901141,571160,1214.254.023.773.38

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 in recent years. The remaining averages shed further light on the declining birth-rate and the dwindling in the average size of families in modern times.

Of the 830 cases where issue under 16 years of age was left by married men or widowers during 1939, a widow was also left in 766 cases, the aggregate children under 16 in these 766 cases being 1,623, and the average per widow 2.12. By the deaths of their fathers, children under 16 to the number of 122 were left without either parent, and for 6 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 1939 or the decade 1930-39. Similar information is also available for families of which the mother died during the year 1939. Altogether 4,814 married women or widows died during 1939, leaving a total issue of 16,272, or an average living issue of 3.38. Considering only those mothers who left issue, the average issue left was 3.98.

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 1939 are of considerable interest:—

(a) AGES OF ISSUE UNDER SIXTEEN LEFT BY THE DEATH OF EITHER PARENT, 1939.

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 Widowers.
035..60..3560..
150242..52422
265555..70555
368372171734
475368..78683
563577..68775
673482177835
775464279666
811497231237512
91125844117889
10122107951328415
1112178331288610
121321198514310316
1317313107718611420
1416819107918711628
151752299919710831
Totals—
 Under 161,6211221,249491,7431,298171
 16 and over10,8855,1885,9968,97816,07314,97414,166
Grand totals12,5065,3107,2459,02717,81616,27214,337

(b) NUMBER OF ISSUE UNDER SIXTEEN LEFT BY THE DEATH OF EITHER PARENT, 1939.

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.
1358282832638630954
219516146721115323
31038921111939
452443..56434
529116..30161
621112122132
7516..661
82..4..24..
96......6....
Totals771596023583063794

From section (a) of the above table it will be seen that during 1939 no fewer than 1,621 children under 16 years of age were left fatherless, although their mother was still alive at the time of the father's death; 1,249 were left without a mother, but with their father living: thus a total of 2,870 were left with only one parent. By the death of their father 122 children, and by the death of their mother 49 children, were left without either parent, making a total of 171 true orphans under 16 years of age during 1939. In this total, of course, there might possibly be a few cases where both the father and the mother died during 1939, 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 94 families there were 171 children under 16 years of age left as true orphans during 1939, equivalent to an average of 1.74 per family. The average number of children under 16 years of age left fatherless per family was 2.12; and the average number left motherless was 2.07. These averages, of course, relate only to those families in which there were any children under 16 years of age.

WIDOWS AND ORPHANS.

Of 47,339 married men or widowers whose deaths were registered during the ten years 1930-39, 12,178 were shown to have been widowers and 34,613 to have left widows, while in the remaining 548 cases there was no information on the point. Of the married men leaving widows, 29,475 had living issue also at time of death, and 5,138 had no living issue. In 10,270 cases widowers left issue, and in 1,908 cases no issue. In 230 of the 548 cases where no information was given as to whether a widow was left, there was living issue, and in 317 cases there was no living issue. In 1 case there was no information regarding 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 Zealand1935-3932
Netherlands1934-3839
Australia1935-3939
Norway1933-3743
Sweden1934-3845
Switzerland1934-3846
Iceland1933-3748
United States*1934-3856
England and Wales1934-3857
Union of S. Africa1934-3858
Germany1934-3865
France1934-3867
Denmark1934-3867
Eire1934-3869
Finland1933-3770
Canada1934-3870
Northern Ireland1934-3877
Scotland1934-3877
Belgium1934-3877
Latvia1934-3881
Estonia1933-3791
Uruguay1932-3696
Italy1934-38102
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 Live Births.
Males.Females.Totals.Males.Females.Totals.
193052539992438.2830.5034.48
193152633085638.2125.6732.15
193242635177733.2229.1031.22
193345531577036.6426.4431.64
193445632578136.3227.6232.11
193544432977336.0528.2432.26
193641535476932.9228.9530.96
193746135181234.8127.4931.21
193857040197140.9230.1135.63
193953236689836.1825.9031.14

The number of infant deaths recorded for 1938 was unusually high, even in consideration of the rising birth-rate of the last few years. This abnormal trend, however, was not sustained in 1939, when the number of infant deaths dropped considerably, while the rate per 1,000 live births declined to the second lowest ever recorded.

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
Year 19392142311910

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 years 1930 and 1939 constitute exceptions.

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.
1935773536.864.36
1936769506.504.53
1937812415.054.65
1938971585.974.27
1939898343.793.93

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.
193524.284.712.924.1419.662.403.262.92
193624.513.331.823.2620.032.542.543.84
193724.012.573.624.6120.362.272.042.82
193828.504.023.524.8819.603.083.683.75
193925.573.743.813.0617.982.552.972.40

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 1930-39 is found to be 131; between one and three months, 156; between three and six months, 107; between six and twelve months, 120; and for the whole of the first year, 130.

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.
193522.033.593.093.5532.26
193622.312.942.183.5330.96
193722.222.422.843.7331.21
193824.153.553.604.3335.63
193921.853.153.402.7431.14

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 next table shows that, whereas in the period 1936-39 the death rate for children under one month of age was 24 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 1936-39 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 MonthBetween 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
1936-193932.2322.649.599.79

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.
19358.183.006.7217.902.251.460.4222.03
19369.143.105.7217.962.621.050.6822.31
19379.382.386.8118.572.271.000.3822.22
19388.153.118.1519.412.611.250.8824.15
19399.432.406.2418.072.221.040.5221.85

More than one-third (272) of the 630 deaths under one month in 1939 occurred within twenty-four hours of birth, and five-sixths (521) 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.
19351204093271632533363021444
19361234084401572814232120415
193712827107341572311483031461
1938120501434625133422494127570
193916536103412293520562619532
Females.
19357632682719720838259329
193610437582511101516312423354
19371163570251131514262214351
19381023579259112516492525401
1939107337723862115421816366
Both Sexes.
1935196721615435104541745530773
1936227771426526174330544543769
1937244621775926103825745245812
1938222852227134245938986652971
1939272691806430155635984435898

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 periods given—1872-76 and 1937-39—it is found that the general infant mortality rate shows a decline of 70 per cent., while even greater decreases are recorded for tuberculosis (96 per cent.), convulsions (98 per cent.), gastric and intestinal diseases (95 per cent.), epidemic diseases (93 per cent.), and respiratory diseases (74 per cent.). The rate for diseases of early infancy shows a decrease of only 29 per cent. in 1937-39 as compared with 1872-76. but of 32 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
1937-19391.00.20.23.41.25.917.83.032.7

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 infant 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 neo-natal mortality (deaths of infants under one month of age) 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.

STILL-BIRTHS AND DEATHS OF INFANTS UNDER ONE MONTH PER 1,000 TOTAL BIRTHS.

Year.Still-births.Neo-natal Deaths.Neo-natal Deaths plus Still-births.
Number.Rate.Number.Rate.Number.Rate.
193573829.8752821.371,26651.24
193673228.6355421.671,28650.30
193776128.4257821.591,33950.01
193874326.5465823.511,40150.05
193990030.2763021.191,53051.46

The respective mortality rates of still-births and neo-natal deaths appear to be compensatory, so that the combined rate is maintained at a fairly consistent level throughout the period. This balancing of the two rates is particularly noticeable in a comparison between the 1937 and 1938 figures.

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

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 following table shows 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 (Fourth Revision, 1929).

PRINCIPAL CAUSES OF DEATH.

Cause of Death.Numbers.Rates per 10,000.
1935.1936.1937.1938.1939.1935.1936.1937.1938.1939.
Typhoid and paratyphoid fever1089840.070.050.060.050.03
Measles13416380.010.020.031.070.05
Scarlet fever886220.050.050.040.010.01
Whooping-cough4247132120.280.320.090.140.01
Diphtheria33202431240.220.130.160.200.16
Influenza1101401101331700.740.940.730.881.11
Tuberculosis of the respiratory system4715404954825223.183.623.293.173.39
Other forms of tuberculosis10514095115910.710.940.630.760.59
Syphilis44456754520.300.300.440.350.34
Malaria2..1..10.01..0.01..0.01
Other infectious and parasitic diseases578910898760.380.600.720.640.49
Cancer and other malignant tumours1,6561,7621,7781,7871,81511.1811.8111.8211.7611.79
Tumours, non-malignant86788383780.580.520.550.550.51
Chronic rheumatism and gout23182130210.160.120.140.200.14
Diabetes mellitus2262382752853441.531.601.831.882.24
Alcoholism5748110.030.050.030.050.07
Other general diseases and chronic poisonings2512672772843111.691.791.841.872.02
Progressive locomotor ataxia and general paralysis of the insane38494327410.260.330.290.180.27
Cerebral hæmorrhage, embolism, and thrombosis7217608088528884.875.095.375.615.77
Other diseases of the nervous system and organs of special sense2842412613062681.921.621.732.011.74
Diseases of the heart3,4593,6463,9504,1704,27923.3524.4326.2527.4427.80
Other diseases of the circulatory system4804755805995973.243.183.853.943.88
Bronchitis1992021722002101.341.351.141.321.36
Pneumonia4816427669676193.254.305.096.364.02
Other diseases of the respiratory system1831992172472221.241.331.441.621.44
Diarrhœa and enteritis81604997700.550.400.320.640.45
Appendicitis1071191171171060.720.800.780.770.69
Diseases of the liver and biliary passages1241241381461250.840.830.920.960.81
Other diseases of the digestive system2993163263243452.022.122.172.132.24
Nephritis5285915875815343.563.963.903.823.47
Other diseases of the genitourinary system2112182222452161.421.461.471.611.40
Puerperal septicæmia31233851360.210.160.250.340.23
Other diseases of the puerperal state70695660690.470.460.370.400.45
Diseases of the skin and cellular tissue, and of the bones and organs of locomotion60545066590.400.360.330.430.38
Congenital debility, malformations, premature birth, and other diseases of early infancy5716046377087113.854.054.234.664.62
Senility3543813554013332.392.552.362.642.16
Suicide1491491671881801.001.001.111.241.17
Homicide81781250.050.110.050.080.03
Accidental deaths6226987287996964.204.684.845.264.52
Cause of death not specified or ill-defined279137170.180.066.090.050.11
Totals12,21713,05613,65814,75414,15882.4587.4990.7697.0991.97

TUBERCULOSIS.

The death-rate from tuberculosis of the respiratory system has been decreasing gradually during recent years, with occasional upward fluctuations. The rate for 1939 was 3.39 per 10,000 of population, and represented a slight increase over the previous year.

A graph on the succeeding page illustrates the decline in the tuberculosis death-rate since 1875.

Of the 522 persons who died from tuberculosis of the respiratory system in 1939, 394, or 75 per cent., were known to have been born in the Dominion. In thirteen cases the country of birth was not known or not stated, and in the remaining 115 cases the deceased person had been born outside New Zealand. Seven of the last-mentioned had been in New Zealand less than five years.

In addition to the 522 deaths from tuberculosis of the respiratory system during 1939, there were 91 deaths from other forms of tuberculosis, including—

Tuberculosis of meninges and central nervous system34
Tuberculosis of intestines and peritoneum12
Tuberculosis of vertebral column7
Tuberculosis of bones and joints2
Tuberculosis of the lymphatic system1
Tuberculosis of genito-urinary system7
Tuberculosis of other organs3
Disseminated tuberculosis25

Tuberculosis claims its victims at a comparatively early age. Of those dying from this cause in 1939, persons under the age of 20 years formed 11 per cent., and those under 45 years 62 per cent.

AGES OF PERSONS WHO DIED FROM TUBERCULAR DISEASES, 1939.

Age, in Years.Males.Females.Totals.
Under 513922
5 and under 10257
10 and under 156713
15 and under 2072027
20 and under 25173552
25 and under 30325082
30 and under 35333265
35 and under 40362359
40 and under 45321850
45 and under 50271946
50 and under 55311344
55 and under 60421658
60 and under 65271138
65 and under 7024630
70 and under 7511213
75 and under 80314
80 and over33..
Totals343270613

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 Africa1934-383.8
New Zealand1935-394.1
Australia1934-384.1
Denmark1934-384.8
Netherlands1933-375.3
United States*1934-385.4
Canada1934-385.9
Ceylon1930-346.4
England and Wales1934-387.0
Germany1932-367.2
Scotland1934-387.3
Belgium1932-367.6
Italy1933-379.1
Switzerland1934-389.2
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
Portugal1933-3716.2
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.

Decennium.Average Death-rates per 10,000 of Population.
Tuberculosis.Cancer.
1880-8912.353.42
1890-9910.625.44
1900-099.106.79
1910-196.998.22
1920-295.699.30
1930-394.1711.17

The relative movements in the death-rates from cancer and tuberculosis are further illustrated in the following diagram.

In 1939 there were 1,815 deaths from cancer in the Dominion, a proportion of 11.79 per 10,000 of population. The standardized cancer death-rate for 1939 shows a decrease of 0.06, while the recorded death-rate shows an increase of 0.03 per 10,000.

Year.Number of Deaths from Cancer.Recorded Death-rate.Standardized Death-rate.*
* On basis of age distribution in 1911.
19301,45210.208.17
19311,49310.358.16
19321,47210.137.79
19331,62411.108.36
19341,69911.538.51
19351,65611.188.12
19361,76211.818.26
19371,77811.828.02
19381,78711.767.93
19391,81511.797.87

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 Population.
* Registration areas.
Ceylon1930-340.9
Rumania1933-374.2
Lithuania1932-364.4
Greece1932-364.5
Portugal1933-374.8
Spain1931-356.8
Chile1932-366.9
Japan1932-367.0
Italy1933-378.2
Uruguay1931-358.2
Finland1932-368.4
France1932-369.6
Union of South Africa1934-3810.0
Canada1934-3810.4
Belgium1932-3610.6
Estonia1933-3710.8
United States*1934-3811.0
Australia1934-3811.1
Hungary1933-3711.1
New Zealand1935-3911.7
Eire1933-3711.9
Czechoslovakia1933-3712.3
Netherlands1933-3712.7
Northern Ireland1934-3812.9
Norway1932-3612.9
Sweden1931-3513.0
Germany1932-3614.1
Denmark1934-3814.7
Switzerland1934-3815.5
Scotland1934-3815.9
England and Wales1934-3816.1

The following summary shows the types of cancer returned in the death entries in New Zealand for the year 1939:—

Type.Deaths.
Males.FemalesTotals.
Carcinoma8007381,538
Adeno-carcinoma223557
Sarcoma181634
Lympho-sarcoma131225
Melanotic sarcoma145
Fibro-sarcoma358
Osteo-sarcoma527
Myxo-sarcoma..11
Lipo-sarcoma1..1
Epithelioma201333
Hypernephroma10313
Seminoma..33
Scirrhus carcinoma11213
Rodent ulcer9413
Endothelioma1..1
Myeloma2..2
Malignant teratoma1..1
Malignant melanoma437
Malignant ulcer2..2
Malignant tumour9615
Malignant papilloma7..7
Malignant disease6612
Cancer (undefined)10717
Totals9488671,815

Full details of the location of the disease are published in the “Annual Report on Vital Statistics,” but a summary of deaths from cancer during 1939 is as follows:—

Seat of Disease.Numbers.Rates per 10,000 of Population.
Males.Females.Totals.Males.Females.Totals.
Buccal cavity and pharynx5315680.680.200.44
Digestive tract and peritoneum5713909617.325.146.24
Respiratory organs6624900.850.320.58
Uterus..109109..1.430.71
Other female genital organs..6767..0.880.44
Breast..180180..2.371.17
Urinary organs and male genital organs169221912.160.291.24
Skin1916350.240.210.23
Other or unspecified organs70441140.900.580.74
Totals9488671,81512.1511.4211.79

Ninety-two per cent. of the deaths from cancer during 1939 were at ages 45 years and upwards, and 51 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, 1939.

Age, in Years.Males.Females.Totals.
Under 5314
5 and under 102..2
10 and under 15......
15 and under 20314
20 and under 258311
25 and under 305914
30 and under 3571623
35 and under 40132033
40 and under 45154358
45 and under 502971100
50 and under 556672138
55 and under 60115118233
60 and under 65129140269
65 and under 7016496260
70 and under 75160106266
75 and under 8012784211
80 and over10287189
Totals9488671,815

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.
19206.48
19215.08
19225.14
19235.11
19245.00
19254.65
19264.25
19274.91
19284.93
19294.82
19305.08
19314.77
19324.06
19334.44
19344.85
19354.21
19363.70
19373.61
19384.07
19393.64

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.

The number of women who lost their lives through some cause connected with pregnancy or childbirth fell from 111 in 1938 to 105 in 1939. The death-rate from these causes also decreased slightly. 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 105 deaths from puerperal causes during 1939 included 22 from abortion, of which 20 became septic cases. Including these 20 deaths from septic abortion there were 36 deaths from puerperal septicæmia in 1939.

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.
1935.1936.1937.1938.1939.1935.1936.1937.1938.1939.
Abortion with septic conditions23142430200.960.560.921.100.69
Abortion without septic conditions specified896220.330.360.230.070.07
Ectopic gestation45310.170.210.110.04....
Other accidents of pregnancy6....0.25............
Puerperal hæmorrhage919611210.380.760.230.400.73
Puerperal septiæmia891421160.330.360.540.770.55
Puerperal albuminuria and eclampsia21181612160.880.720.620.440.55
Other toxæmias of pregnancy1312191780.540.480.730.630.28
Puerperal phlegmasia alba dolens, embolus, sudden death311990.120.040.040.330.31
Other accidents of childbirth6559120.250.210.190.330.42
Other conditions of the puerperal state....................
Totals10192941111054.213.703.614.073.64

Septic abortion claims a comparatively high total of deaths in New Zealand, and the drop of 10 in the number of deaths from this cause recorded in 1939 is a welcome one. The highest total ever reached in one year in this country was 42, recorded in 1934.

The death-rate for puerperal septicæmia (other than septic abortion) also shows a decrease for 1939. Probably the most encouraging aspect of the table, however, is the movement in the combined death-rate from puerperal albuminuria and eclampsia and other toxæmias of pregnancy. This rate has dropped from 1.42 in 1935 to 0.83 in 1939, in spite of fluctuations in the component causes contained in the group. With the exception of a rise in 1937, the fall has been a steady one, and has amounted over the period to a total decline of 42 per cent.

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.
1924.1929.1934.1939.1924.1929.1934.1939.
Homicide11920586133
Accidental causes—
Poisoning613895956
Conflagration8197461452
Burns and scalds3635262128251814
Died under anæsthetic, asphyxia, &c.30101614237119
Drowning169126121117130908276
Firearms111926208141813
Palls618010110348576867
In mines and quarries1317181810121212
Crushing198306245303152217166197
Injuries by animals114558333
Fractures (causes not specified)2589819665
Other5388607442624148
Totals632734662701487522448455

The number of deaths recorded from all accidental causes in 1939 was 696, corresponding to a rate of 4.52 per 10,000 of population. Although this represents, by comparison with 1924, an increase of 75 in the number of deaths, the death-rate has decreased by 0.27 per 10,000 of population. Noticeable decreases are shown for drowning and fractures (causes not specified). Part of the large increase between 1924 and 1939 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 daring 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.
1930638220446155
1931409169286110
1932279159196109
193331712021582
1934315152213103
1935217166145112
19364110202277135
19374110195277130
1938527230345151
1939396216253140

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. An appreciable drop however, was experienced in 1939. 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, these, as stated above, being assigned to the heavier vehicle. For 1939 there were 14 deaths from such accidents, bringing the total number of deaths in cases where a motor-vehicle was an agent up to 230. The corresponding figure for 1938 was 244. 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 1939 numbered 180—males 135, females 45—the death-rate per 10,000 of mean population being 1.17.

Year.Number of Suicidal Deaths.Rate per 10,000 of Population.
Males.Females.Totals.Males.Females.Totals.
1935114351491.520.481.00
1936114351491.510.481.00
1937109581671.430.781.11
1938150381881.950.511.24
1939135451801.730.591.17

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
1935-391.630.571.10

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.
19357506971,44717.9018.0317.96
19368477551,60219.6418.9919.33
19378317261,55718.7817.7518.29
19381,1071,0132,12024.4624.1824.32
19399678081,77520.8918.8719.92

As indicated on p. 71, 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 an epidemic of measles, which 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 some years (e.g., 1935).

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 1939 were as follows:—

Age, in Years.Males.FemalesTotals.
Under 1288184472
1 and under 5142127269
5 and under 10534396
10 and under 15323769
15 and under 20214869
20 and under 25344175
25 and under 30262551
30 and under 35172643
35 and under 40272249
40 and under 45211839
45 and under 50252550
50 and under 55313061
55 and under 60343064
60 and under 65432972
65 and under 70482977
70 and under 75291140
75 and under 80342155
80 and under 85262652
85 and under 9014620
90 and under 95101121
95 and under 1004812
100 and over279
Unspecified6410
Totals9678081,775

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 infections 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 rate 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.
1935.1936.1937.1938.1939.1935.1936.1937.1938.1939.
Typhoid fever19272024162.303.262.352.751.79
Measles112212390.120.120.2424.324.38
Whooping-cough575681637.086.760.941.840.34
Diphtheria522640.620.240.240.690.45
Influenza41383460645.094.583.996.887.18
Dysentery126415151.490.720.471.721.68
Pulmonary tuberculosis24324323629130030.1729.3227.7233.3933.67
Other forms of tuberculosis59866876927.3210.377.998.7210.33
Cancer46433757435.715.194.356.544.83
Cerebral hæmorrhage21201811282.612.412.111.263.14
Convulsions (under five years)15141119161.861.691.202.181.79
Heart-diseases8410313215113810.4312.4315.5017.3315.49
Bronchitis25512746533.106.153.175.285.95
Broncho-pneumonia11214816319613213.9017.8619.1422.4914.82
Pneumonia16917018624020120.9820.5121.8427.5422.56
Diarrhæa and enteritis575848108637.087.005.6412.397.07
Nephritis16283020141.993.383.522.301.57
Senility878894836110.3010.6211.049.526.85
Violence—
Suicide61381080.741.570.941.150.90
Accident76807466899.439.658.607.579.99
Homicide1130.120.120.34........
Cold, cough, chest trouble, &c.43420.500.360.470.22....
Stomach trouble, Internal trouble, &c...2....0.23..........
Ill-defined or not specified34283958354.223.384.586.653.93
Other causes25729630935535631.9035.7136.2940.7339.96
Totals1,4471,6021,5572,1201,775179.62193.28182.86243.24199.23

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 1939 the number so certified was 1,305 out of 1,775 registrations, equivalent to 74 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 1930-39, 105 per 1,000 births in the case of Maoris, as compared with 32 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.
193018888.5192434.48
193122195.5985632.15
193226295.4577731.22
193327392.6177031.64
193427993.5978132.11
1935355109.2077332.26
1936399109.9276930.96
193736692.1781231.21
1938566153.2697135.63
1939473114.9289831.14

The next table shows for the year 1939 the 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 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.
Measles..............137314
Whooping-cough..................112
Diphtheria....................11
Influenza........111335620
Dysentry..............13116
Tuberculosis............1152817
Infantile convulsions..........1..133513
Bronchitis..........11343618
Broncho-pneumonia......2313819281377
Pneumonia........115315331472
Diarrhæa and enteritis............5213141044
Congenital malformations..624121333126
Congenital debility, &c...........2..541517
Injury at birth............7211112
Premature birth..251110752211..64
Other causes peculiar to early infancy........835..11119
Accident............3722115
Other defined causes......22321114631
Totals..........1......225
Totals46162713151538249110781473

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 those 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 1939 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, fever292630366151545034382942480
Diphtheria643448437176642822212917517
Enteric fever986362354210361
Pulmonary tuberculosis889392457992749286859073989
Cerebro-spinal meningitis511121341..2122
Acute poliomyelitis322117941123449
Pneumonic influenza13121826923157....
Erysipelas513161414349516050424330552
Puerperal fever—             
  Ordinary151218837861623114131
  Following abortion15319786498161114120
Eclampsia5321713476106367
Tetanus313..1..1..1212....
Hydatids73125435422139
Trachoma....21......1..2....6
Ophthalmia neonatorum5..41..122121120
Lethargic encephalitis........1..............1
Food poisoning5122........433653..
Dysentery5111234..272239..
Undulant fever4242411151..126
Actinomycois....1........1..11..4
Beriberi....1..............1....
Lead poisoning....1323..211....13
Phosphorus poisoning................1......1
Totals3092253012303203212852842422612772053,260

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 1939: Diphtheria, 21; enteric fever, 63; tuberculosis, 283; puerperal fever, 16; trachoma. 17; bacillary dysentery, 14; hydatids, 5; ophthalmia neonatorum, 6; erysipelas, 14; other, 13; total, 452.

A quinquennial summary of notifications (exclusive of Maori notifications) of certain principal diseases is now given:—

Disease.1935.1936.1937.1938.1939.
Scarlet fever8631,152924662480
Diphtheria747513599786517
Enteric fever8761556461
Pulmonary tuberculosis8089349151,031989
Cerebro-spinal meningitis1012132422
Acute poliomyelitis8877652249
Erysipelas252291329522552
Puerperal fever and septic abortion257216298263251

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.
19301,440584.032,244160.7114974.70
19311,327554.141,304110.84161106.21
1932802404.9982960.72195115.64
1933963272.8078340.5110665.66
1934436265.9676281.055111.96
1935747334.4286380.93871011.49
1936513203.901,15280.6961813.11
1937599244.0192460.6555916.36
1938786313.9466220.3064812.50
1939517244.6448020.426146.56

In diseases of this nature, comparatively wide year to year fluctuations in the numbers affected are inevitable. In general, however, all three show reductions in incidence during the period covered by the table.

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 also have 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. Statistics of patients treated in private hospitals for hydatid disease or diseases of the thyroid gland have been compiled for the year 1939 and may be found in the Annual Report on the Vital Statistics of New Zealand, 1939.

During the year 1939 the total admissions to public hospitals in New Zealand numbered 106,834. There were 5,668 patients in hospital at the beginning of the year, the total cases dealt with during the year thus being 112,502, equal to 690 per 10,000 of mean population, including Maoris. In other words, the equivalent of one person out of every fourteen in the Dominion received some degree of treatment in public hospitals in 1939, 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.
193081,065543
193179,176523
193279,143518
193383,817544
193488,085568
193593,173596
193698,444625
193798,235618
1938107,323668
1939112,502690

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. Since 1929, the in-patient population of the hospitals has recorded some remarkable variations. Some of the fluctuations shown can be attributed to the vagaries in incidence of the common epidemic diseases, while other major contributing factors may have been changes in policy arid accommodation of the larger hospitals and phenomena arising directly or indirectly out of changing economic or political conditions.

As examples there may be quoted the facts that during the depression years the total of in-patients treated dropped considerably, but since 1933 there has been a continuous and substantial increase, with the one exception of 1937, when a small decrease of 200 patients was recorded.

Between 1937 and 1939 the total has increased by over 14,000. In 1938 the epidemic of measles with its accompaniments of ear troubles and respiratory diseases (chiefly broncho-pneumonia and pneumonia) accounted for nearly 6,000 of the 9,000 increase of that year. The further gain of 5,000 in 1939 cannot be attributed specifically to any disease or group of diseases, and it seems probable that some of this increase may have its origin in the introduction of the hospital benefit under the social security scheme. This benefit, particulars of which may be found in Section XXV, came into operation on 1st July, 1939.

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 350,000 weeks for the year 1939.

CONDITION ON DISCHARGE.

Of the 112,502 persons treated as in-patients in public hospitals in 1939, 67,869 were discharged as recovered, 28,813 as relieved, and 4,935 as unrelieved. Deaths in hospital numbered 5,568, and 5,817 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.
193588,48356,82123,3493,5624,49788,229
193693,50060,02424,1564,1504,95293,282
193793,07258,32125,2164,0485,27492,859
1938101,94763,98127,0064,7095,959101,655
1939106,83467,86928,3134,9355,568106,685

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.
193560.9825.063.824.835.31
193660.9724.544.225.035.24
193759.3725.674.125.375.47
193859.6225.164.395.565.27
193960.3325.174.394.955.16

SEXES OF PATIENTS.

For many years males considerably outnumbered females among hospital patients. In 1932, for the first time, and in each of the three following years, females were in the majority. Since 1935, however, the proportion of males has 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.
193039,55736,6871082,4711,5081646241
193137,86736,7551032,3131,5091536141
193237,09337,563992,3451,5371536341
193339,31739,888992,4321,6041526241
193441,38042,015982,6191,7641486342
193544,10644,1231002,6751,8221476141
193646,94146,3411012,9731,9791506343
193747,02545,8341033,2572,0171616944
193851,09150,5641043,5832,3761517047
193954,17252,5131033,3782,1901546342

AGES OF PATIENTS.

The ages of patients who were discharged from or who died in public hospitals during 1938 and 1939 were as shown in the following summary:—

Ages of Patients, in Years.1938.1939.
Males.Females.Totals.Males.Females.Totals.
Under 55,2713,9829,2535,3533,8399,192
5 and under 105,1664,2039,3695,2374,3189,555
10 and under 153,9863,1947,1803,9763,2537,229
15 and under 259,16012,21421,3749,66612,01921,685
25 and under 356,77710,65917,4367,85411,44219,296
35 and under 455,1926,02811,2205,5896,34311,932
45 and under 555,0934,0409,1335,3204,3829,702
55 and under 655,0683,1728,2405,5003,6269,126
65 and over5,2982,9918,2895,6183,2378,855
Unspecified80811615954113
Totals51,09150,564101,65554,17252,513106,685

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 1939:—

Class.Discharges.Deaths.Total Discharges and Deaths.
Recovered.Believed.Unrelieved.Males.Females.Males.Females.
I. Infectious and parasitic diseases6,5282,8096794122856,2014,512
II. Cancer and other tumours1,3771,3806034953151,8502,320
III. Rheumatic diseases, diseases of nutrition and of endocrine glands, and other general diseases1,3241,728205791401,2972,179
IV. Diseases of the blood and blood-forming organs98247334728249204
V. Chronic poisonings and intoxications319180259148252
VI. Diseases of the nervous system and of organs of special sense2,9552,7568703332803,8723,322
VII. Diseases of the circulatory system1,7032,2622057183783,1102,156
VIII. Diseases of the respiratory system5,2811,8461663901944,8363,041
IX. Diseases of the digestive system19,8004,18445126920113,08811,817
X. Diseases of the genito-urinary system4,8302,462392201922,7585,219
XI. Pregnancy, labour, and puerperal state8,943661271..74..9,949
XII. Diseases of the skin and cellular tissue3,334908431392,6611,646
XIII. Diseases of the bones and of the organs of locomotion1,5981,4931412082,1861,074
XIV. Congenital malformations134251714033266263
XV. Diseases of early infancy2174424429180156
XVI. Senility..110103511718299
XVII. Violence or accident8,0804,2561622561059,7923,067
XVIII. Ill-defined diseases1,348736513111,1621,437
Totals67,86928,3134,9353,3782,19054,17252,513

In the succeeding table the data are reduced to percentages, and, in addition, the ratio of deaths to total cases is given.

Class.DischargesDeaths.Total Discharges and Deaths.Percentage of Deaths to Total Discharges and Deaths.
Recovered.Relieved.Unrelieved.Males.Females.Males.Females.
I9.629.9213.7612.2013.0111.458.596.51
II2.034.8712.2214.6514.383.424.4219.42
III1.956.104.152.346.392.394.156.30
IV0.150.870.671.391.280.460.3916.56
V0.460.640.510.270.050.890.101.87
VI4.359.7317.639.8612.787.156.338.52
VII2.517.994.1521.2617.265.744.1020.81
VIII7.786.523.3611.558.868.935.797.41
IX29.1714.789.147.969.1824.1622.501.89
X7.128.707.945.954.205.099.943.66
XI13.182.335.49..3.38..18.940.74
XII4.913.210.870.380.414.913.130.51
XIII2.355.272.860.590.374.042.050.86
XIV0.200.891.441.181.510.490.5013.80
XV0.320.160.041.301.320.330.3021.73
XVI..0.392.091.510.780.340.1924.20
XVII11.9115.033.287.584.7918.075.842.81
XVIII1.992.6010.400.030.052.142.740.08
Totals100.00100.00100.00100.00100.00100.00100.005.22

PRINCIPAL DISEASES.

A summary is now given of the principal diseases treated in public hospitals during the year 1939. 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 over 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 1939.

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.
Typhoid and paratyphoid fever201351785.0012.59
Measles47250510.642.00
Scarlet fever23872100.000.52
Whooping-cough523120.004.35
Diphtheria285772589.294.33
Influenza2343,1876628.212.07
Erysipelas75109*1.17

SUMMARY OF PRINCIPAL DISEASES TREATED IN PUBLIC HOSPITALS DURING 1939—d.

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.
Acute poliomyelitis521......
Pulmonary tuberculosis8222,10236844.7817.13
Tuberculous meningitis77574963.6485.96
Other forms of tuberculosis1068616157.557.08
Venereal diseases567953460.714.28
Septicaemia (non-puerperal)288492589.292.94
Hydatids17123847.066.50
Cancer1,8582,60175240.4728.91
Non-malignant tumours791,5695873.413.70
Diabetes3521,04914340.6313.63
Exophthalmic goitre915692830.774.92
Leukaemia and Hodgkin's disease951064345.2640.57
Diseases of the spinal cord871641921.8411.59
Cerebral hæmorrhage, apoplexy91672643347.2759.64
Diseases of the heart4,4172,82797322.0334.42
Diseases of the arteries5402678315.3731.09
Bronchitis2631,7378231.184.72
Broncho-pneumonia4401,05716537.5015.61
Pneumonia5122,16622644.1410.43
Pleurisy606482643.334.01
Asthma325911546.883.84
Ulcer of the stomach and duodenum1491,3309261.746.92
Diarrhœa and enteritis1381,1504734.064.09
Appendicitis1195,1508168.071.57
Hernia, intestinal obstruction1122,0319584.824.68
Diseases of the liver (excluding hydatids)66833146.9737.35
Diseases of the gall-bladder and biliary passages641,4633960.942.67
Peritonitis2418830*15.96
Nephritis54840014426.2836.00
Urinary calculi15531960.001.69
Diseases of the bladder9619666.670.69
Diseases of the prostate1235888266.6713.95
Diseases of the female genital organs203,6571680.000.44
Septic abortion221791672.738.94
Puerperal septicæmia191591473.088.81
Other puerperal diseases and accidents839,6114453.010.46
Diseases of the skin314,3072270.970.51
Osteomyelitis355302262.864.15
Malformations2455297329.8013.80
Diseases of early infancy6103367311.9721.73
External causes98112,85936136.802.81
Other diseases1,32435,03155541.541.58
Totals15,933106,6855,56834.955.22

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 cemetries and crematoria, and has certain responsibilities in connection with the administration of the Pharmacy Act, reference to which is made at a later stage of this section.

A recent addition to the functions of the Department is the administration of that part of the Social Security Act, 1939, which deals with medical, hospital, and other related benefits. This matter is treated in detail in Section XXV.

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. A. Notifiable infectious diseases mentioned in Part I of First Schedule of Health Act, 1920:—

    Anthrax.

    Cerebro-spinal fever (cerebro-spinal meningitis).

    Cholera.

    Dengue.

    Diphtheria.

    Erysipelas.

    Enteric fever (typhoid fever, paratyphoid fever).

    Leprosy.

    Plague (bubonic or pneumonic).

    Puerperal fever (puerperal septicæmia and puerperal sapræmia).

    Scarlet fever (scarlatina).

    Smallpox (variola, including varioloid, alastrim, amaas, Cuban itch, and Philippine itch).

    Typhus.

    Yellow fever.

  2. B. Infectious diseases declared notifiable by Gazette notice:—

    Dysentery (amoebic and bacillary).

    Encephalitis lethargica.

    Fulminant influenza.

    Pneumonic influenza.

    Septicemic influenza.

    Ophthalmia neonatorum.

    Acute poliomyelitis (infantile paralysis).

    Trachoma (granular conjunctivitis, granular ophthalmia, granular eyelids).

    Tuberculosis (all forms).

    Septicæmia consequent on abortion or miscarriage.

    Syphilis.*

    Gonorrhœa.*

    Soft chancre.*

    Undulant fever.

    Puerperal fever, involving any form of puerperal sepsis other than or in addition to puerperal septicæmia and puerperal sapræmia.

    Any form of sepals or sapræmia following abortion or miscarriage.

  3. C. Notifiable diseases, other than infectious, mentioned in Second Schedule:—

    Actinomycosis.

    Ankylostomiasis (hookworm disease).

    Bilharziosis (endemic hæmaturia, Egyptian hæmaturia).

    Beriberi.

    Hydatids.

    Food poisoning (botulismus, ptomaine poisoning).

    Chronic lead poisoning.

    Phosphorus poisoning.

    Tetanus.

  4. D. 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. Particulars of the obligations and duties imposed by these regulations on persons affected and on medical practitioners and medical officers of hospitals in attendance on them are contained in the 1940 and previous issues of the Year-Book.

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.

* In certain circumstances. (See letterpress post.)

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, 1940, was 1,620. During 1939, the names of 18 practitioners were removed and 79 added, 64 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 number on the register at 31st May, 1940, was 825.

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, 1940, was 5,349, of whom 1,932 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 then be 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, 1940, was 1,849, and the number of registered maternity nurses 1,591. Of these totals, 556 midwives and 361 maternity nurses were non-active.

The Nurses and Midwives Registration Act, 1939, provides for the registration and training of “nursing aids.”

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, 1940, was 283.

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, 1940, was 620.

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 doing sanitary plumbing.

The total of names on the register at 31st March, 1940, was 2,792.

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 1939, 13,619 samples of milk were examined, resulting in 492 warnings and 87 prosecutions. The figures for the previous year were 11,805, 392, and 181 respectively. Other foodstuffs sampled—1938 figures in parentheses—numbered 1,445 (1,178), warnings being 95 (41), and prosecutions 28 (20).

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, 1939, consists of about 800 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. This Board consists of twelve members, one of whom is appointed by the Minister of Health, nine are elected on a district basis by members of the society, and two by persons (other than members of the society) employed in pharmacies. The main function of the Pharmacy Board is to adminster 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 examinations of a reciprocating country may be registered in any of the others on complying with prescribed formalities and on payment of the necessary fees.

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, and 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, Ltd., 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. There are 600 pharmacies at present open under license.

CEMETERIES.

The Cemeteries Act, 1908, which was amended in 1912, 1922, and 1926, constitutes the legislation governing burial and cremation in New Zealand. The Cemeteries Amendment Act, 1926, transferred the work of administration from the Minister of Internal Affairs to the Minister of Health, one of the objects being to utilize the services of Inspectors of Health in giving closer attention to matters for which a field staff is essential.

Widespread provision for cemeteries has been made in the past by the reservation of areas of Crown land for this purpose, but apart from this the Cemeteries Act makes it clear that local authorities are charged with ensuring that in their districts there exists adequate provision for the disposal of the dead.

In most rural areas and in the smaller centres the local authority either acts as trustee or else has been delegated the power of appointing individual trustees to carry out the provisions of the Act. For some cemeteries established on Crown reserves trustees are appointed by His Excellency the Governor-General. In the larger centres local bodies have acquired land for the establishment of cemeteries.

In regards to cremation, the law provides that this method of disposal may be carries out subject to the prior condition that the deceased was not known to have left any written direction to the contrary and also subject to the condition that the cremation is effected in conformity with the regulations. The latter impose stringent precautions against cremation being used for any criminal purpose. Crematoria have been established in Auckland, Wellington, Christchurch, and Dunedin.

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 thirteen School Medical Officers. In addition, four Medical Officers of Health act as part-time School Medical Officers, and further part-time School Medical Officers have been appointed. 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 104 at the present time.

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. Medical examinations of kindergarten schools are conducted, and secondary schools are inspected as staff and time permit.

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. At the present time some 223,000 children in 1,342 schools are receiving free bottled pasteurized milk, malted milk, or milk for cocoa. 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 is now available for this cause. The King George V Memorial Fund Act, 1938, makes provision for the control and administration of this fund for the establishment of children's health camps. For this purpose a Board has been established.

The School Medical Service also works in co-operation with the Education and the Mental Hospitals Departments in regard to children suspected of mental backwardness or defect. It also co-operates with the Medical Officers of Health in regard to the control of infectious diseases, and with the Child Welfare Branch of the Education Department concerning matters pertaining to destitute and neglected children.

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 1939 school dental clinics had been established at 311 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, 1939, there were 232 trained dental nurses in the service, and in addition there were 156 student dental nurses in training. Some 102,000 children, belonging to 1,749 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 1939: Fillings, 615,514; extractions, 75,993; other operations, 220,863.

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, to which a number of amendments have since been made.

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. Hospital Boards are also required to provide for the removal to hospital of these classes of persons.

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 maternity benefits and hospital benefits are payable from the Social Security Fund to Hospital Boards, which are required to accept the payments in full satisfaction of all claims in respect of services rendered to patients entitled to benefits. The former benefit came into operation on 15th May, and the latter on 1st July, 1939.

Full details in respect of the benefits appear under the section dealing with “Social Security, Pensions, Superannuation, &c.”

RECEIPTS AND PAYMENTS.

The following is a summary of the receipts and payments of Hospital Boards for the years ended 31st March, 1938 and 1939:—

1937-38.1938-39.
Receipts.££
Voluntary contributions and bequests54,43028,118
Levies821,815943,616
Subsidies826,467917,801
Patients' payments, and charitable-aid recoveries594,791634,935
Rent, interest, and dividends32,19131,679
Loans775,039183,797
Sale of capital assets42,0765,269
Miscellaneous receipts49,08959,885
Totals3,195,8982,805,100
Payments.  
Hospital maintenance1,491,3281,724,838
Charitable aid257,492266,818
Medical associations or medical men in outlying districts15,07018,138
District nursing16,18418,371
Administration95,592108,100
Amounts paid to other Boards or separate institutions98,351119,114
Rents, rates, and taxes2,4111,852
Interest57,61660,702
Contributions to National Provident Fund for superannuation of employees22,61422,796
Capital works314,355422,247
Loan-repayments or payments to sinking fund59,64069,610
Miscellaneous payments21,24223,398
Amounts invested on account of funds for special purposes44,4585,782
Totals2,496,3532,861,766

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 table, 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.

1937-33.1938-39.
Amount.Percentage of Total.Amount.Percentage of Total.
 £ £ 
Contributions by Government909,28038.61,092,14941.0
Levies on local authorities821,76534.8944,07035.5
Voluntary contributions52,7892.236,2181.4
Recoveries from those assisted507,53421.5530,27419.9
Rents, interest, and dividends32,3741.432,1281.2
Miscellaneous revenue35,2931.526,1701.0
..2,359,041100.02,661,009100.0
Cash in hank (other than loan-money)37,080..109,859..
Totals2,396,121..2,770,808..

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 1938-39 the sum of £825,109 (receipts and cash in hand from loans for capital purposes) should be added, making the aggregate £3,595,977.

The amount contributable by the Government consists of subsidies on maintenance levies, £828,521; subsidies on capital levies, £120,883; cost of maintaining Government institutions, £89,188; patients' fees paid to Boards or remitted in respect of Government institutions, £48,559; and special payments to Boards, £4,998; making a total of £1,092,149.

EXPENDITURE.

The maintenance expenditure for the last two financial years was made up as follows:—

1937-38.1938-39.
Amount.Percentage of Total.Amount.Percentage of Total.
 £ £ 
Hospital maintenance1,553,36775.81,801,17077.4
Charitable relief—    
  Indoor151,5687.4173,2027.5
  Outdoor103,3295.091,0613.9
Medical associations11,3910.612,1250.5
District nursing16,5270.821,3660.9
Ambulances11,0170.514,5970.6
Miscellaneous maintenance expenditure15,3540.811,1200.4
Administration105,4935.2117,2025.0
Interest on loans59,0452.963,8302.8
National Provident Fund21,1201.022,6101.0
Totals2,048,217100.02,328,283100.0

Capital expenditure for the year 1938-39 totalled £519,011, this amount including £78,710 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 £2,847,294.

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
1938-3940.520.956.4131.74.5254.0

CHARITABLE-AID EXPENDITURE.

Charitable-aid expenditure during the last live years has been as follows:—

Year.Indoor Relief.Outdoor Relief.Totals.
 £££
1934-35105,741176,894282,635
1935-36112,973187,267300,240
1936-37127,562160,244287,806
1937-38151,568103,329254,897
1938-39173,20291,061264,263

The sharp rise in outdoor relief which took place during 1930-31 and the succeeding year 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. The increase in rates of various existing pensions and the introduction of invalidity pensions in 1936 also relieved Hospital Boards of appreciable expenditure under this heading.

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. £
1926-27 to 1928-291,074,138
1927-28 to 1929-301,156,254
1928-29 to 1930-311,193,380
1929-30 to 1931-321,156,699
1930-31 to 1932-331,116,503
1931-32 to 1933-341,075,146
1932-33 to 1934-351,086,479
1933-34 to 1935-361,100,228
1934-35 to 1936-371,173,581
1935-36 to 1937-381,306,206
1936-37 to 1938-391,495,335
1937-38 to 1939-401,711,469

The following table shows the total cost to the public funds of hospitals and charitable aid for each of the last five years, 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.
1934-35601,715593,998118,1321,313,8451611
1935-36621,271621,308127,1061,369,685176
1936-37714,251745,049145,2371,604,537205
1937-38821,765817,324264,1001,003,189241
1938-39944,070949,404388,9342,282,408284

PATIENTS' PAYMENTS.

The amount of patients' fees received per occupied bed in Hospital Boards' hospitals in 1913-14 was £23.4; in 1938-39, exclusive of fees received from other Boards, it was £56.5. Receipts during the last five years have been as follows:—

 Totals.Amount per Occupied Bed.
 ££
1934-35257,10245.9
1935-36272,44946.7
1936-37304,71850.1
1937-38351,96755.5
1938-39372,49856.5

Included in these fees are amounts paid by the Government, which in 1938-39 amounted to £48,559.

LOANS.

During the year 1938-39 eight new loans aggregating £151,600 were authorized for terms ranging from ten to thirty years.

The amount of loans outstanding at the 31st March, 1939, was £1,955,047. This amount, however, is reduced by a sum of £98,349 standing to the credit of sinking funds, making the net amount of loan-money £1,856,698.

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 in-patients 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:—

YearIn-patients 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.
1934-3596,27661.95,8733.88,7465.6
1935-36100,59263.96,1013.98,8425.6
1936-37104,14166.06,3784.08,8765.6
1937-33107,05667.26,6404.29,0855.7
1938-39114,45171.26,8974.39,2345.7

The number of institutions coming under the heading of public hospitals at 31st March, 1939, was 129, comprising 70 general hospitals (2 of which were also old people's homes, and 2 special hospitals), 1 chronic hospital, 3 convalescent hospitals, 41 maternity hospitals, 5 tuberculosis sanatoria, 1 tuberculosis prevention institution, 2 chronic-tuberculosis hospitals, 2 tuberculosis dispensaries, and 4 infectious-diseases hospitals. A comparison of beds and patients for the last live years is as follows:—

 1934-35.1935-36.1936-37.1937-38.1938-39.
* In addition, dental cases treated during the year and attendances were: Auckland, 2,761, 11,923; Wellington, 14,190, 34,946; Christchurch, 3,838, 19,009; and Timaru, 1,139, 4,020.
Number of institutions129130130129129
Number of beds—     
General4,8514,9584,9855,1435,091
Children's cots1,0511,0941,1101,1651,236
Maternity597603606609638
Tuberculosis1,0981,0891,0831,0011,168
Infectious disease1,1491,0981,0921,0041,092
Totals8,7468,8428,8768,9829,225
Average number of occupied beds per diem5,8736,1016,3786,5466,897
In-patients treated during year96,276100,592104,141107,056114,451
Deaths during year4,3994,5674,9355,3845,845
Out-patients—     
Number109,382115,512119,822138,092151,601*
Attendances495,232492,671526,775547,902565,939*

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 298, of which 74 are medical and surgical hospitals, 35 medical, surgical, and maternity institutions, 155 maternity hospitals, and 34 medical and convalescent hospitals. These hospitals provide 1,515 beds for medical and surgical cases, 1,025 beds for maternity cases, and 262 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.

Particulars of maternity benefits provided under the Art will be found in section XXV, “Social Security, Pensions, Superannuation, &c.”

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 out-patient department attached to each hospital, which provides nursing services for patients not entering the institution.

The statistics given below for the year 1939 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 Stillbirths.Deaths of Mothers.Deaths of Infants in Hospital.
Auckland (1906)32728221838
Wellington (1905)26539162129
Christchurch (1907)1538114..1252
Invercargill (1918)1727791111
Totals901,92561433110

PUBLIC MATERNITY HOSPITALS.

There were at 31st March, 1939, 72 public maternity hospitals or maternity wards attached to public hospitals under control of Hospital Boards or Hospital Trustees. These maternity hospitals and wards had 565 beds available, and are open to all residents of their respective districts, irrespective of income. 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 eighty-two district nurses appointed for the purpose of attending the Maori population, part of their work being attendance on Maori women during confinement.

ANTE-NATAL SERVICES.

Fifty 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 1939 were 43,400. 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-six institutions classed under the heading of benevolent and orphan asylums furnished returns to the Census and Statistics Department for the year 1939. 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 ended 31st December, 1939.

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.Inmates during Year.
Hospital Boards251,5492,0403052,0494181,4273,894
Church of England16644302213291637967
Roman Catholic Church161,57995827931001,6462,539
Presbyterian Church17512145..15411492657
Methodist Church5221134..1028185355
Baptist Church14528..31..4273
Salvation Army291,0925,7111865,843261,1206,989
Brethren12913..21..2142
Undenominational associations, &c.165829364661,340146301,984
Totals1266,25310,26798010,7225786,20017,500

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, 1939, were as follows:—

Age-group.Males.Females.Totals.
Under 5 years307239546
5 and under 10 years5325051,037
10 and under 15 years6176251,242
15 and under 17 years95188283
17 and under 25 years48232280
25 and under 25 years73163236
35 and under 45 years97115212
45 and under 55 years16995264
55 and under 65 years302152454
65 years and over1,0385661,604
Unspecified142842
Totals3,2922,9086,200

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 Tinder the age of twenty-one who were admitted to the institutions during 1939.

Age, in Completed Years.LegitimateNo 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
02611......5785
12311..1..834
239..131....861
336417......562
4567132....482
5691172....493
6757203....7112
78661832..5120
886111611..1116
966121741..3103
10541426....1297
1139112132..884
1223624522668
13186182..2652
1417910121343
155641....420
162..1..1..26
172....1....25
18........1..12
19......1......1
20..1..........1
Not stated................
Totals723102238291361361,247

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.

Exclusive of Maoris, the number of children in the Dominion under sixteen years of age who were deprived of one or both parents by death during 1939 was 3,041. Of these, 1,621 lost their father, 1,240 their while 171 were completely orphaned during the.

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 1939 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.
Auckland7466011,347
Kingseat (Papakura)304297601
Tokanui326348674
Porirua8656421,507
Nelson454361815
Hokitika247285532
Christchurch7936121,405
Seacliff and Waitati6224131,035
Ashburn Hall (private mental hospital)122234
Totals4,3693,5817,950

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.
19354,2823,4057,68753.7444.0548.97
19364,3573,5037,86054.1744.8949.60
19374,3523,5457,89753.5244.9549.30
19384,2903,5017,79752.2843.9448.18
19394,3693,5817,95052.4644.2848.43
Average of five years4,3313,5077,83853.2344.4248.89

The total number of patients under oversight, care, or control during 1939 was 9,254 (5,042 males, 4,212 females), as against 9,095 in 1938. The average number resident in mental hospitals was 7,426 in 1939 and 7,416 in 1938.

ADMISSIONS.

The total admissions to mental hospitals during the year 1939 were 1,198 (603 males and 595 females), this number not including 259 transfers from one institution to another. The causes of insanity as assigned on admission were as follows:—

CAUSES OF INSANITY.

Heredity101
Congenital180
Previous attack192
Puberty and adolescence33
Climacteric16
Puerperal state16
Senility173
Involution67
Mental stress, prolonged124
Toxic11
Syphilis32
Constitutional130
Alcohol37
Encephalitis2
Epilepsy40
Organic brain-disease6
Arterio-sclerosis22
Traumatic5
Ill health11
Totals, excluding transfers (259)1,198

Of the 1,198 persons admitted to mental hospitals during 1939, those admitted for the first time to any mental hospital in New Zealand numbered 993 (511 males, 482 females), and those readmitted 205 (92 males, 113 females).

The figures for 1939 represent one first admission for every 1,640 persons of 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.
19355014109116.315.335.83
19364834659486.045.996.01
19374644659295.745.945.84
19384454889335.466.175.81
19395114829936.186.016.10
Average of five years4814629435.955.895.92

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 1939 there were 352 such patients on the books (183 males, 169 females), and during the year 369 (194 males, 175 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 1939, 26 (11 males, 15 females) were transferred from the voluntary to the ordinary register, and 16 males and 15 females died, while 287 (157 males, 130 females) were discharged, leaving 360 on the records at the end of the year (182 males, 178 females).

AGES OF INMATES.

A summary is given showing the ages of patients in mental hospitals at the end of 1939.

Age, in Years.Males.Females.Totals.
1 and under 5201636
5 and under 107048118
10 and under 1512978207
15 and under 20257156413
20 and under 306194201,039
30 and under 407315401,271
40 and under 507336881,421
50 and under 608617871,648
60 and under 705805281,108
70 and under 80279248527
80 and under 90523688
90 and over628
Unknown323466
Totals4,3693,5817,950

DISCHARGES AND DEATHS.

The next table gives the average number resident, those who were discharged as recovered, and those who died, during the period 1935-39.

Year.Average Number President.Discharged as recovered.Died.
Number.Per Cent. of Number admitted.Number.Per Cent. of Average Number Resident.
19357,11425323.674356.11
19367,28827024.344656.38
19377,38435931.944976.73
19387,41638034.485477.38
19397,42632827.384606.20
Average of five years7,32631828.364816.57

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 1939. Of those discharged as recovered, 59.45 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 month3927666..6
1 month and under 3 months161834191938
3 months and under 6 months171633274168
6 months and under 9 months101828163147
9 months and under 12 months31215152136
1 year and under 2 years191332334275
2 years and under 3 years15163191322
3 years and under 5 years14163015621
5 years and under 7 years161228268
7 years and under 10 years131124426
10 years and under 12 years11617......
12 years and under 15 years12618......
15 years and over5632881..1
Died during absence10616......
Totals251209460147181328

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 1939 are as follows:—

DEATHS OF MENTAL HOSPITAL PATIENTS.

Tuberculosis14
Cancer16
Other general diseases20
General paralysis of the insane17
Epilepsy16
Other diseases of the nervous system44
Diseases of the circulatory system119
Diseases of the respiratory system63
Diseases of the digestive system7
Diseases of the genito-urinary system12
Old age110
External causes6
Died during absence16
Total460

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 1939.

Males.Females.Totals.
* Includes a small number of patients discharged whose condition was not improved.
Discharged—Per Cent.Per Cent.Per Cent.
Recovered34.1739.2536.38
Relieved *10.5912.3311.35
Died37.9129.9934.46
Remaining at end of 193917.3318.4317.81
Total admissions 1876-1939100.00100.00100.00

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.
1935109436
1936114241
193785539
193878236
193999234

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.
1935126187543118
19361816348259141
19371616327869147
19381514298162143
19391621378264146

The above figures are also included in the tables covering all inmates of mental hospitals.

The number of Maoris remaining in mental hospitals at the end of 1939 represented a rate of only 16.17 per 10,000 of the Maori population, as compared with a rate of 50.31 in the case of the non-Maori population.

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.
 £££
1935-36462,318182,735279,583
1936-37524,310189,847331,463
1937-38608,327213,873394,454
1938-39641,053223,573417,483
1939-40658,290354,537303,753

The figures of receipts and net expenditure for 1939-40 are not comparable with those of previous years. 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 now recoverable from the Social Security Fund, the amount so recovered during 1939-40 being £166,000. In addition, a sum of £122,581, representing accounts outstanding at 31st March, 1939, was received during the year. The gross average cost per patient in 1939-40 was £84 11s. 2d., as compared with £83 5s. 9d, in 1938-39.

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 Committees 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.

* Every child between the aces 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.

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 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 primary-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.

* 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.

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 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 available to him. 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 undertake a University course 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 may be enrolled in the Correspondence School for both primary and postprimary 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 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.

* Established under the Native Schools Act, 1867, and administered by the Education Department since 1880.

† Except for Maori “Government pupils” in the denominational secondary schools.

‡ Education Amendment Act, 1921-22.

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.1935.1936.1937.1938.1939.

* Exclusive of children in kindergartens (1,849 in 1939).

† There were also 363 students taking part-time courses. In previous years these part-time students have been included in the secondary roll.

Primary Education.     
Public (State) schools197,326210,172207,653206,002205,066
Intermediate schools and departments
Native village schools7,8769,1759,6429,83210,403
Native Mission schools570638632755722
Registered private primary schools26,86927,70927,93127,63127,558
Lower departments of secondary schools200214226218200
Correspondence classes (primary)1,4441,6581,8031,7441,688
Chatham islands schools163166157155149
Totals, primary*234,448249,732248,044246,337245,786
Post-primary Education.     
Secondary schools13,64814,00214,10114,41814,743
Combined schools1,9741,9862,1132,7222,808
Secondary departments of district high schools4,5934,0704,3894,9055,401
Technical high schools7,3237,4227,8338,1498,481
Maori secondary (boarding) schools373408501457431
Registered private and endowed secondary schools4,5084,8095,2105,2865,573
Correspondence classes (secondary)519758818894628
Totals, post-primary32,93833,45534,96536,83138,065
Technical Classes (excluding Technical High Schools and Technical Day Schools).     
Conducted by Education, Secondary School, or High School Boards2,5553,1853,1724,6215,414
Conducted by Technical School Boards7,9928,9929,98210,61511,480
Conducted by University colleges286304276316334
Totals, technical10,83312,48113,43015,55217,228
University Education.     
University colleges4,1094,3774,4624,6465,020
Lincoln Agricultural College674144105105
Massey Agricultural College220210184383225
Students exempt from lectures709590548573629
Totals, University5,1055,2185,2385,7075,979
Totals, scholars and students*283,324300,886301,677304,427307,058

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.1935.1936.1937.1938.1939.

* The Intermediate examination was discontinued in 1938.

† The Training College Entrance Examination was discontinued in 1939.

Intermediate9961,0121,092**
Public Service Entrance....1,0951,5471,874
Teachers' C and B1028710393171
Training College Entrance Examination684845893167
School Certificate4,3074,4024,5654,5594,804
London University Examinations22433
Handicraft Teachers' Certificate1316111012
Technological Examinations676963123176
Naval Cadetships12431
Aircraft Apprenticeships3214..
Totals6,1756,4377,8316,5097,041

The University of New Zealand conducted examinations in 1939 in the faculties of arts, science, medicine, public health, dentistry, home science, law, engineering, commerce, agriculture, and music; for diplomas in journalism, in banking, and in fine arts; and for admission to the legal and accountancy professions. There were 9,372 entrants for the degree examinations in 1939 compared with 9,672 in 1938. The number of candidates for the University Entrance Examination in the last five years has been: 1935, 4,602; 1936, 4,774; 1937, 4,860; 1938, 4,925; 1939, 5,437.

PUBLIC EXPENDITURE ON EDUCATION.

Out of public funds £5,563,326 was spent on education for the financial year ended 31st March, 1940. 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 1939-40 from reserves vested in them amounted to £44,637. The following shows the expenditure from public funds for each branch or service of education for each of the last five years:—

Service.1935-36.1936-37.1937-38.1938-39.1939-40.
* Includes £1,734 capital expenditure on kindergartens.
 £££££
General administration35,88237,33642,90745,24448,312
Elementary education2,011,6102,458,3062,798,0733,075,1843,433,818*
Secondary education and technical instruction682,917802,777952,2341,023,3581,055,502
Training colleges, &c.55,359154,894171,655212,322226,056
Higher education71,89590,252152,396195,488178,996
Native schools100,077126,886155,025181,358236,180
Physical instruction1,4252,6803,1233,0724,061
School for the deaf5,5316,36511,40715,71811,654
Education of the blind1,4141,5874,2326,1965,174
Schools for the mentally backward14,47618,63022,54623,24638,405
Child welfare105,128104,734124,805141,415161,956
Material and storesCr. 64439Cr. 792Cr. 711Cr. 547
Country library service......7,5977,178
Miscellaneous services171,020170,839181,523170,036156,581
Totals3,256,6703,975,7254,619,1345,099,5235,563,326

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.
19314,102549
19323,4104411
19332,8163610
19342,741356
19352,8713611
19363,257417
19373,976504
19384,6195711
19395,100634
19405,563681

PRIMARY SCHOOLS.

The primary-school system consisted in 1939 of 2,230 public schools (including district high schools and intermediate schools or departments), 145 Native village and 11 mission schools for Maoris, 304 registered private primary schools, and 6 lower departments of secondary schools. There were also 38 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 1939 the total number of pupils in the six departments mentioned in the preceding paragraph was 200 (98 boys, 102 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 1939 three women advisers to infant departments and kindergartens were appointed.

At the end of 1939 there were 1,849 children on the rolls of thirty-eight free kindergartens. As yet the system is far from universal.

PUBLIC (STATE) SCHOOLS.

The figures tabulated below refer to pupils in public schools—i.e., all pupils in primary schools and intermediate schools and departments. Pupils in the secondary departments of district high schools are not included.

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.
19351,487,9052,502197,326192,466178,08692.5
19361,500,6582,460210,172203,631187,66092.2
19371,515,3962,394207,653202,635187,06192.3
19381,530,3662,290206,002200,164177,73388.8
19391,551,3342,230205,066199,133180,77690.8

Of the 2,230 schools shown above for 1939, 1,604 had rolls of not more than seventy, and of these 848 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, 1939, 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 1939.Pupils at End of—
1935.1936.1937.1938.1939.
Auckland68062,77467,28567,34367,51068,021
Hawke's Bay14114,55015,37615,24415,11211,065
Taranaki18310,98011,61711,21311,16114,976
Wanganui17914,72415,69915,31915,22015,092
Wellington21525,87127,41427,13126,89426,616
Nelson1266,3086,7716,7096,5996,570
Canterbury33532,95634,99934,44933,77433,353
Otago21318,13319,19718,64918,32018,026
Southland15811,03011,81411,59611,41211,347
Totals2,230197,326210,172207,653206,002205,066

In each of the education districts are located Inspectors of Primary Schools, who form part of the staff of the Department of Education. The total number of Primary-school Inspectors on the 31st March, 1939, was 38, allocated as follows: Auckland, 11; Hawke's Bay, 3; Taranaki, 2; Wanganui, 3; Wellington, 4; Nelson, 2; Canterbury, 6; Otago, 4; Southland, 3.

The following table relates to pupils on the rolls of the public primary schools and Forms I and II of intermediate schools and departments of the Dominion at the 1st July, 1939:—

Age.1939.Percentage of Total Pupils.
Boys.Girls.Totals.1935.1936.1937.1938.1939.
5 and under 6 years9,2248,72817,9521.48.68.68.79.1
6 and under 7 years10,83810,25421,09211.510.811.410.810.6
7 and under 8 years11,47610,65522,13112.411.311.311.711.2
8 and under 9 years12,16911,41223,58112.511.511.511.511.9
9 and under 10 years11,68611,23422,92012.611.911.711.511.6
10 and under 11 years11,75711,39123,14813.011.911.911.911.7
11 and under 12 years12,13511,34223,47712.412.111.811.811.9
12 and under 13 years11,71410,75822,47211.810.911.411.411.3
13 and under 14 years8,1236,68914,8128.57.57.37.57.5
14 and under 15 years3,3322,1185,4503.22.92.62.72.7
15 and under 16 years6153039180.60.50.50.50.5
16 years and over77261030.10.10.00.00.0
Totals103,14694,910198,056100.0100.0100.0100.0100.0

In 1939 19,591 pupils (10,207 boys and 9,384 girls) left public primary schools, as against 20,542 (10,536 boys and 10,006 girls) in 1938. Of those leaving in 1939, 16,374, or 84 per cent., had passed Form II (Standard 6), and 3,217, or 16 per cent., had not passed that standard. The corresponding percentages in 1938 were 83 and 17. Of those leaving public schools in 1939, 64.3 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 1939 there were 12,046 attending public schools out of a total of 22,037 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 145 Native village schools at the end of 1939 was 10,403 (including 1,103 non-Maori children), while the total roll number of the eleven Maori mission schools was 644. The total roll number of all the Native schools inspected by officers of the Education Department was 11,556.

The following table gives the principal statistics of Native village schools during the last five 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.
19351386,8989547,09890.8120218
19361407,9991,0998,14090.0126269
19371418,4371,0848,59490.1132273
19381438,7431,0258,47186.6141286
19391459,1641,0298,97088.2157293

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 1939, seventeen intermediate schools or departments had been established, of which seven are separate schools, six are attached to secondary schools, three 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 1939 numbered 4,542, or nearly 11 per cent. of all children in Forms I or II. The average attendance during the year was 4,339. The ages of pupils on the roll at 1st July, 1939, were—

Age, in Years.Boys.Girls.Totals.
Under 11142337
11 and under 12360332692
12 and under 139368471,783
13 and under 147896611,450
14 and under 15351217568
15 and under 167641117
16 and under 1710313
Totals2,5362,1244,660

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.
193531012,97113,89826,86923,930109866975
193630913,39814,31127,70924,714115877992
193730613,54814,38327,93125,1811319011,032
193830713,74314,64328,38624,4421389081,046
193930413,77614,50428,28025,2741409191,059

The majority of the schools included in the preceding table are Roman Catholic, the figures for Roman Catholic schools for 1939 being—Schools, 229; scholars on roll at end of year, 24,102 (11,833 males, 12,269 females); average yearly attendance, 21,517; teachers, 784 (67 males, 717 females).

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 1939. 64.3 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 1939, 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.
193538685211056216
19364068421856215
19374068621857218
19383978820857219
19393979520860229

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 three 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 number of pupils at the end of each of the last five years 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.
* There were also 363 students taking part-time courses. In previous years these part-time students have been included in the secondary roll.
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
193914,7432,8085,4018,4814315,573628 *38,065

At the end of 1939, of the total scholars attending secondary schools, 7,527 were boys and 7,216 girls; combined schools, 1,560 and 1,248; secondary departments of district high schools, 2,411 and 2,990; technical schools, 4,693 and 3,788; endowed and registered private schools, 2,528 and 3,045; and Maori secondary schools, 189 and 242.

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 sixty-one war bursaries were current in 1939.

TECHNICAL 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 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 schools in 1939. 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.1935.1936.1937.1938.1939.
Industrial2,5962,6722,9083,2163,517
Commercial and general4,1784,3444,4694,5824,669
Domestic1,3851,3021,3201,3831,236
Agricultural465429379403364
Art425416332381496
Totals9,0499,1639,4089,96510,282

TECHNICAL CLASSES.

The number of centres at which technical classes for part-time day and evening students are given increased from 132 in 1938 to 144 in 1939. 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 1939 was as follows:—

Classes conducted by Education or High School Boards5,414
Classes conducted by Technical School Boards or by Managers11,480
Classes conducted by University colleges334
Total17,228

Of the above number, 11,019 (7,747 males and 3,272 females) held free places.

EXAMINATIONS.

Technological examinations were conducted by the Department of Education in 1939 on behalf of the City and Guilds of London Institute at eleven centres. The total number of entries was 266, and the number of passes 121. The Department also held its own examinations in technological subjects in 1939: 170 candidates sat for examination, of whom 37 passed in the preliminary, 42 in the intermediate, and 15 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 1939, 392 Maori pupils were receiving secondary education at these schools, 219 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. The New Zealand Council for Educational Research has prepared a survey of vocational guidance facilities as they exist at the present time, and this will be published shortly.

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 1939 for the consolidation of 33 small schools on twenty-four 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 and manual-training centres.

The cost of the conveyance of pupils to schools is in certain circumstances also met either by way of conveyance or horseback allowance, and in other cases the Education Department provides school buses.

The following table gives the details of expenditure on conveyance of pupils for the last two years:—

1938-39.1939-40.
Rail.Other.Totals.Rail.Other.Totals.
 ££££££
Public primary0,267150,862157,1296,380194,047200,427
Private primary2,342..2,3422,505..2,505
Public post-primary9,51718,63328,15014,18026,07340,253
Native619,8779,9384713,23813,285
Private secondary836..8361,424..1,424
Totals19,023179,372198,39524,536233,358257,894

During the same years the expenditure on board of pupils attending schools was as follows:—

 1937-38.1938-39.1939-40.
 £££
Public primary4,9278,0107,878
Public post-primary22,91141,20740,004
Native1,1021,5561,774
Totals£28,940£50,773£49,656

Number of children conveyed to school and in receipt of boarding-allowance as at 1st July, 1939:—

Type of School.Number of Pupils on Roll.Total Pupils conveyed to School.Number receiving Boarding-allowance.
Public primary schools193,39619,100543
Intermediate schools and departments4,66042523
Secondary departments of district high schools6,1832,459300
Secondary schools15,9742,4461,402
Technical high schools10,2822,883621
Combined schools3,126513506
Native schools10,1932,220132
Chatham Islands schools1501815
Totals243,96430,1303,542

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. The work of the school has been greatly facilitated by the extension of the practice of visiting pupils in their homes. Vacation schools have been organized in various centres in order to give pupils the opportunity of doing practical work and of taking part in group activities.

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 also receive tuition as part-time pupils of the Correspondence School. An increasing amount of attention is paid to practical subjects, such as needlework, woodwork, and practical agriculture.

At the end of 1939 there were 2,679 pupils on the roll of the Correspondence School, 1,688 being in the primary department, 628 in the secondary, and 363 part-time students. The staff of the school consists of a headmaster, 36 secondary and 44 primary assistant teachers (7 of whom are engaged in the infant department), 7 specialists engaged exclusively in teaching needlework, and 4 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, and the teaching of agriculture is made a special feature in the rural schools. Projects have been undertaken by the boys' and girls' agricultural 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; in 1937-38, 15,188; and in 1938-39, 18,531.

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 postprimary schools at least one hour a week. During the summer month of February public schools suspend ordinary time-tables and concentrate 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 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.

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 (see also section (VIA) referred to above).

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. These investigations 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, 1,906 in 1939-40) indicate the numbers under control during each of the last five years. In addition there were (1939-40) 20 children at the New Zealand Institute for the Blind, for whom the Education Department made payment.

 1935-36.1936-37.1937-38.1938-39.1939-40.
Boarded out, institutions, receiving-homes, and in hospitals, or convalescent homes, &c.4,0223,9803,9854,0464,110
Under supervision8928639109731,041
Infant-life protection836830842695623
Deaf children116111113103103
Mentally backward children240253263268240
Totals6,1066,0376,1136,0856,117

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 1939-40 was 2,953 (2,801 in the previous year), and of these 812 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 509; but all these, with the exception of 181 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, 1940, the number of children boarded out was 2,617, as compared with 2,628 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-work, 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.

There are four training colleges available to students who desire to enter the teaching profession, and at the end of 1939 there were 1,584 students in training. Of these, 1,557 were “Division A" students and 27 “Division C" students. The minimum academic qualification for “Division A" is the University Entrance or School Certificate Examinations, while students of “Division C" must be University graduates.

The normal course of training for “Division A" students is a period of two years at a training college, followed by a further period of one year as a probationary assistant attached to a public school. For students of “Division C" the 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, the number undergoing this additional course in 1939 being 68.

The following table gives details of students in training at the end of 1939:—

Training College.Division A.Division C.All Students.
M.F.M.F.M.F.Totals.
Auckland—       
  First year13213026134136270
  Second year100175....100175275
  Specialist1912....191231
Wellington —       
  First year5983236186147
  Second year58113....58113171
  Specialist213....21315
Christchurch—       
  First year60993363102165
  Second year59109....59109168
  Specialist76....7613
Dunedin—       
  First year4982535485139
  Second year61120....61120181
  Specialist54....549
Totals61194612156239611,584

PUBLIC PRIMARY-SCHOOL TEACHERS.

Of the 6,332 teachers at the end of 1939, 89.7 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, 1939, but excludes 179 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.
Auckland197713375466932639312,01275.1
Taranaki402166138193915536173.6
Wanganui5735771011255720447673.7
Hawke's Bay573871920245220747871.9
Wellington47458922264911939479155.1
Nelson3838388710219425469.3
Christchurch858113824325613744199465.1
Otago7831831017358124658180.4
Southland602267713155115038598.5
Totals6593829661572003268202,8226,33271.7

If schools with fewer than twenty-five pupils are omitted, the ratio of men teachers to women teachers in 1939 was 100 to 159. The proportion of men to women in charge of schools with not more than twenty-four pupils was 100 to 61. If all public schools are taken, it is found that the ratio of men teachers to women teachers in 1939 was 100 to 139.

Information as to the Teachers' Superannuation Fund will be found in the section of this book dealing with Social Security, Pensions, Superannuation, &c. (section XXV).

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.
193534826812910025514958391,346
19363652891218426414858421,371
19373652891279327415159421,400
193835329214610228615477531,463
193935330516311029315880551,517

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 (1,106 in 1940, as compared with some 600 in 1938) and in the number of pupils receiving programme booklets (73,261 on 1st March, 1940, 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 1939 the number of copies printed was—Part I, 86,500; Part II, 75,000; Part III 66,500: total, 228,000.

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.

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 is attached jointly to the museum and the teachers' 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.

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 160).

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 1939 there were 5,350 students actually in attendance at the four University colleges and the two agricultural colleges. Of these, 377 were graduates, 4,278 undergraduates, and 695 unmatriculated students. In addition there were 629 students attached to the various University colleges, but exempt from lectures. Comparable figures for the last five years are given in the following table:—

YearStudents attending Lectures.Exempt Students.Totals.
Males.Females.Males.Females.
19353,0191,0905521574,818
19363,2291,1484901004,967
19373,3451,117460885,010
19383,9001,2344601135,707
19394,0651,2855141155,979

Professors attached to the various University colleges in 1939 numbered 71, of whom Auckland had 14; Victoria, 15; Canterbury, 15; Otago, 25; 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 1939 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 also have 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-six Rhodes Scholarships have been granted, of which sixteen 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, one by a student of Massey College, and one by a student of Canterbury Agricultural 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 1939 was 1,360. In order to assist qualified students to pursue special University courses, bursaries are available in agriculture, architecture, art, engineering, and domestic science. In 1939 the number of bursaries held was twenty-two in agriculture, twelve in engineering, two in architecture, and thirty-eight 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 nineteen bursaries current in 1939.

From the table given below will be seen the number of students who received free University education during each of the last five years:—

Year.Junior University, University National, and Taranaki Scholarships.Senior University Scholarships.University Bursaries.Training-college Studentships.Other.Totals.
193510821435258117939
1936109182926691171,205
1937105261,0936361612,021
1938111171,2497001992,276
1939107231,3607172082,415

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 1939 of two professors, ten lecturers, and ten assistant lecturers, while that of Canterbury was made up of a professor, director, assistant director, and fifteen lecturers. The total number of students at Massey College in 1939 was 227 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 1939. In addition, a sum of £35,000 was made available in 1939 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 1939 six bursars were in attendance at Canterbury Agricultural College, ten at Massey College, three at Auckland University College, and three at Victoria University College.

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 instalments, 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.

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.

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.

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.

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.

Books are made available to country districts in four ways: (a) Free loans of books on a liberal scale to libraries controlled by local authorities which in turn agree to make their libraries free, and maintain reasonable standards of library service; (b) loans of books to independent subscription public libraries at a small annual charge per one hundred books lent; (c) loans of books through travelling hamper collections to isolated groups of readers at a small annual charge; and (d) loans through the post of non-fiction books free of charge to readers requiring information. Further, all persons, whether served by the free public library or through the isolated group, may obtain loans of reference books by post from the headquarters of the Service.

By 31st December, 1939, books were on loan in 323 localities throughout the country, service being given through 21 free public libraries, 265 small subscription libraries, and 37 groups of readers. The postal service to individual borrowers was also becoming more widely used.

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 carried out in outlying areas. The centre serves not only as a meeting-place for existing adult-education organizations, but as a place where any individual may call for advice and guidance.

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.
  £ ££
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
193967,298894,86642,577555,503456,627

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 has been recorded in each of the last two years.

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.
     £
19301,45464392659260,870
19311,48174453706311,400
19321,26370422562215,697
19331,14754418493148,119
193490050346364200,805
193593188303383148,155
1936934128284386176,636
1937887144282334137,714
1938775138127245137,916
1939999130282312153,667

INQUESTS.

There were 1,651 inquests held during the year 1939 (including 125 Maoris), the number of male cases being 1,158, and female cases 493.

The following is a table of inquests held over the last ten years:—

Year.Males.Females.Totals.Maoris (Included in Totals).
19301,1914031,59483
19311,1223871,50992
19321,1074241,531103
19331,0233741,39774
19341,1404231,563110
19351,0644961,560134
19361,1754651,640142
19371,2285661,794147
19381,4306052,035156
19391,1584931,651125

Inquests held during 1939 are shown hereunder according to the type of verdict returned:—

Nature of Verdict.Males.Females.Totals.
Diseases and natural causes510307817
Accident478127605
Homicide538
Suicide12942171
Violent deaths of which nature (accident, homicide, suicide) unknown361450
Totals1,1584931,651

Of the accidental deaths the most common causes are injuries by motor-vehicles and drowning. The verdicts show that in 1939 202 deaths, or 33.4 per cent. of the total accidental deaths, were due to injuries by motor-vehicles, while 94 deaths were due to drowning, 48 to falls, 39 to suffocation, and 38 to accidents on railways.

The inquests on suicidal deaths for each of the last ten years have been—

 Inquests on Suicides.
Year.Males.Females.Totals.
193016335198
193119929228
193220050250
193316244206
193415035185
193511139150
193612830158
193710660166
193815847205
193912942171

Of the 171 suicides during 1939 only 6 were Maoris.

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. During the five years 1935-39, only 4 such inquests were held. In 1 case the verdict was arson, in 1 case accident, and in 2 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 Sub-enumerators of Agricultural and Pastoral Statistics.

RECRUITING.

Recruits for the Police Force must be between the ages of twenty-one and thirty years, be not less than 5 ft. 9 in. in height, 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 instruction 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.

In addition to the Commissioner, the strength of the Police Force on 31st March, 1940, was 1,457, an increase of 18 during the year. The total was made up as follows: 5 superintendents, 16 inspectors, 6 sub-inspectors, 37 senior sergeants, 112 sergeants, 1,098 constables, 93 temporary constables, 4 senior detectives, 34 detective-sergeants, and 52 detectives. There were also 15 police surgeons 7 matrons, 3 district constables, and 1 Native constable.

The proportion of police to population is 1 to every 1,126 persons, and the expenditure (exclusive of the cost of buildings) on the whole Police Force for the year ended the 31st March, 1940, was 7s. 8½d. 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.
193125120659591,1691 to 1,2936
193225123659441,1571 to 1,31955
193324121679831,1951 to 1,2875
193423124729921,2111 to 1,2805
193528127749901,2191 to 1,28157
193626123771,0001,2261 to 1,2845
193725127911,0121,2551 to 1,26563
193826145931,1641,4281 to 1,12376
193927148911,1731,4391 to 1,1297
194027149901,1911,4571 to 1,1267

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. Up to the present, no appointments have been made in this connection.

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 60,329 cases in 1939, 14,864 (males, 14,216; females, 648) were “arrest" and 45,465 (males 43,105, females 2,360) 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.
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
193957,3213,00860,32969.333.7537.05

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 1939—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.
1937.1938.1939.1939.
Dismissed or withdrawn for want of prosecution or of evidence4,4154,5824,4532,894
Dismissed on the merits1,9842,0091,9441,443
Admonished and discharged42423421
Committed for trial498414426290
Committed for sentence9189601,184345
Summarily convicted42,72649,65152,28844,208
Totals50,58357,65860,32949,201

The summary convictions (total cases) for the year 1939 represent a rate of 32.11 per 1,000 of mean population. The figures for the last ten years are as follows:—

Year.Number.Per 1,000 of Mean Population.
193045,54430.50
193140,37426.66
193240,59120.58
193336,04323.41
193435,75223.04
193536,23023.19
193639,5172.09
193742,72626.87
193849,65130.90
193952,28832.11

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 in the last two years for well over half of the total convictions. An analysis of traffic offences is given later in this section.

The following table gives the number of convictions in Magistrates' Courts during each of the last five years, classified according to some of the more common offences or groups of offences:—

1935.1936.1937.1938.1939.
Offences against the person482603581633703
Offences against property (including forgery)4,4584,1844,1914,3844,652
Drunkenness (including issue of prohibition orders)4,3185,7546,2587,0497,661
Offensive conduct or language, obstruction, &c., of police, and vagrancy1,3431,2091,1991,7061,754
Breaches of traffic regulations, &c.14,49015,54816,47323,20624,652
Other offences against good order1,4541,6561,7101,3621,492
Breaches of Licensing Act2,8343,2113,6393,3584,177
Breaches of Destitute Persons Act2,2412,4822,8383,0032,881
Breaches of Impounding Act561381503573674
Breaches of Arms Act383279273273239
Breaches of Employment Promotion Act6065611,221507108
Unlicensed wireless sets9329831,0769031,169
Other offences2,1282,6662,7642,6942,126
Totals36,23039,51742,72649,65152,288

PUNISHMENT ON SUMMARY CONVICTION.

A table showing punishments following summary convictions for the year 1939 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 Act3794957451,088
Convicted and discharged761,2182,5276284,449
Convicted and ordered to come up for sentence73459238148918
Committed to Borstal institution, Salvation Army Home, &c.11104917177
Fined36299730,3797,56239,300
Imprisonment in lieu of fine2155451120647
Peremptory imprisonment1278636221,0512,663
Bound over4..2..6
Order made211,2341,8033,040
Totals7034,65235,55911,37452,288

CRIMINAL CASES IN SUPREME COURT.

Criminal cases 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. As previously mentioned, Maoris are included.

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.    
19357814033825775101,113351,148
1936502292841187941,163151,178
19376792634112940251,281371,318
1938670163421096371,305171,322
19396012428271,181191,463261,489
   (b) Distinct Persons     
1935271171499307745616472
193620713139631434539462
19372441214883361548423507
1938260141578317647414488
19392331514864041355219571

Of the 248 distinct persons indicted during 1939, 154 were convicted and 75 acquitted. Of the remainder, no bill was returned or the prosecution was otherwise not proceeded with in 14 instances, 4 persons were found insane, and 1 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.
193521680395341,1481432773517472
193628779674211,1781772521914462
1937270824168561,3181782693228507
193830090484341,3221862672213488
1939332973126581,4892103143413571

The following were the principal offences for which persons were convicted or sentenced in the Supreme Court during 1939:—

I.—PERSON.

Murder1
Manslaughter3
Negligent driving causing death or bodily injury22
Failing to stop motor-vehicle after accident involving injury12
Assaults27
Unlawfully administering chloroform2
Sexual offences132
Procuring abortion and attempts2
Concealment of birth2
Bigamy7

II.—PROPERTY.

Robbery9
Burglary51
Breaking and entering138
Horse, cattle, or sheep stealing2
Embezzlement17
Theft and receiving55
Fraud and false pretences19
Arson and attempts10
Unlawful conversion of vehicle12
Other1

III.—FORGERY, ETC.

Forgery32
Forgery and uttering forged documents2

IV.—OTHER OFFENCES.

Indecent conduct or language1
Vagrancy1
Breach of probation3
False declarations4
Perjury1
Other3

Eighty-two Maoris were included in the 571 distinct offenders sentenced in the Supreme Court in 1939, and 388 others (including 15 women) were born in New Zealand. In 48 cases the birthplace was England or Wales, Scotland in 11, Ireland in 8, and Australia in 25 eases.

Particulars of sentences imposed in the Supreme Court during 1939 are as follows: Released under the Offenders Probation Act, 199; ordered to come up for sentence, 14; discharged, 9; fined, 16; imprisonment, 197; reformative detention, 103; detention in Borstal institution, 32; death, 1 (subsequently commuted to imprisonment for life). One of those sentenced to imprisonment received, in addition, a term of reformative detention, another was ordered to be flogged, while 9 others were declared habitual criminals.

Of the offenders, 100 were under twenty years of age, 143 between twenty and twenty-five, 108 between twenty-five and thirty, 122 between thirty and forty, 57 between forty and fifty, 28 between fifty and sixty, and 13 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 loss 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 now 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 14 Crown criminal cases were brought before the Appeal Court, and in 5 instances convictions were affirmed. There were 97 civil appeals, of which 52 were allowed, and also 33 cases removed to the Appeal Court, resulting in 23 judgments for plaintiff and 10 for defendants.

Particulars concerning applications during the last five years (1935 to 1939) for leave to appeal against sentences under the provisions of the Crimes Amendment Act, 1920, are: Applications filed, 208; granted, 60; refused, 148. In all cases except one 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 22 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, 1939, the various institutions had 808 persons under detention (males, 777; females, 31). During the year 5,007 were received (males, 4,846; females, 161) and 4,881 discharged or transferred (males, 4,727; females, 154). At the end of the year 934 (males, 896; females, 38) remained in confinement. The daily average number of persons in confinement during the year 1939 was 909 (males, 875; females, 34).

The 4,881 discharges during 1939 include 1,541 transfers of inmates to other prisons or to the police. Prisoners discharged on expiration of sentence numbered 2,383, 58 were released on bail, 395 were set free on the recommendation of the Prisons Board, and 176 released on special remission. Debtors discharged during the year numbered 138, and 25 lunatics were transferred to mental hospitals. One prisoner died during the year. The remaining 164 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 GaolProportion per 10,000 of Population.
Undergoing Sentence.On Remand and awaiting Trial, &c.Total.Undergoing Sentence.Total in Confinement.
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
1939895399345.455.69

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.
19356814237254292184381,150
1936831472927517414447962
1937721312833312614545835
1938621082803414414931808
1939781692872816416939934

The total number of new receptions—counting each person once every time received—in the various institutions during the year 1939 was 5,007 (males, 4,846; females, 161), as compared with 4,301 (males, 4,138; females, 163) in 1938. Thirty-one persons were in prison awaiting trial or sentence at the beginning of the year, thus bringing the gross total of receptions up to 5,038. When allowance is 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 1939 was 2,505 (males, 2,427; females, 78), an increase of 281 as compared with the previous year. Of the total of 2,505, 310 (males, 303; females, 7) were Maoris.

The number of distinct persona received into prison under sentence of imprisonment during the last ton 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.
19302,86419.18
19313,20321.15
19323,40122.27
19332,73117.74
19342,37615.31
19352,15813.81
19361,79011.36
19371,99112.52
19389,22413.84
19392,50515.38

Ages and offences of distinct persons received into prison under sentence during 1939 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.
15 and under 2057..1222735178
20 and under 25173041793024140424
25 and under 30152791624319138413
30 and under 40224141579724267612
40 and under 50111551038323175415
50 and under 608834110327123313
60 and over23118571551147
Not stated..1..1......3
Totals80132267834161399292,505
Maoris (included above12243122351995310

The final table of this category supplies statistics of ages and previous convictions of distinct persons received into prison under sentence during 1939.

Age, in Years.Number of Previous Convictions.Total previously convicted.Not previously convicted.Totals. Distinct Prisoners.*
One.Two.Three.Four.Over Four.
* Including 183 cases where no Information was given as to previous convictions (if any).
Under 2169261052013087241
21 and under 257725241557198135361
25 and under 35105584132212448221730
35 and under 4570452723204369123521
45 and under 553235141217326675367
55 and under 65251381011417038220
65 and over112239451462
Not stated11......213
Totals380204126998191,6286942,505

BORSTAL INSTITUTIONS.

Included among the 895 prisoners undergoing sentence at the 31st December, 1939, were 169 persons (154 males, 15 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 provide 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 1939, 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 Four Years.Four Years and over.
Reformative detention only67612..130
Declared habitual criminals only..........
Hard labour—     
  Under 1 year153....18
  1 year and under 2 years11215
2 years and under 3 years....145
  3 years and under 5 years1....23
5 years and over......22
Totals846559163

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 informed 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 Criminal.- 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.
193534548840776317231,359
193636747436783614111,322
19372832913156531218987
19382942553075421626954
193929827733758119391,029

Of the cases considered in 1939, recommendations were made for release on probation in 425 cases, and for discharge from prison in 21 cases. Thirty-four probationers under the Offenders Probation Act were ordered to be discharged, while two secured modification of the terms of their probation. In one case remission of the principal sentence was recommended. Twenty-two petitions were declined, while the remaining 524 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.
1930650
1931750
1932726
1933620
1934664
1935605
1936585
1937636
1938715
1939942

The following table gives the ages and terms of probation of offenders dealt with under the provisions of the Act during the year 1939:—

Age, in Years.6 Months or under.1 Year.18 Months.2 Years.3 Years.4 Years.5 Years.Totals.
Under 2051071511642....285
20 and under 2515111169927..3271
25 and under 30756115013..2139
30 and under 4085785882..141
40 and under 501274225..160
50 and under 60613..91....29
60 and over18..43..117
Totals43379543589927942

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.1935.1936.1937.1938.1939.
Dismissed or withdrawn for want of prosecution or evidence77110156145137
Dismissed on the merits92711089344
Admonished and discharged1,3091,3481,9861,6242,156
Committed for trial or sentence..2..1..
Released under Offenders Probation Act27681613
Ordered to come up for sentence298455820
Committed to care of Child Welfare Superintendent585586637739796
Placed under supervision of Child Welfare Officer1,1351,4041,1871,4531,546
Committed to an institution under Child Welfare Act5991473534
Committed to Borstal Institution, Salvation Army Home, &c.2517316776
Fined173194284301275
Whipped24......
Order made61212113
Totals3,5793,8534,5014,5435,100

Offences by juveniles are seldom of a very serious nature, and Magistrates frequently adopt the course of admonishing and discharging the offender. It is found that in only a few cases does the offender's future conduct render it necessary for him to be brought before the Court again.

The principal offences against the person in 1939 were indecent assault (24 cases) unlawful carnal knowledge (29 cases) and common assault (41 cases). The figures for 1938 were 33, 3, and 22 respectively.

Theft was again the principal offence against property, 2,014 charges being dealt with in 1939, compared with 1,650 in the previous year. These figures do not include burglary and breaking and entering, which was the offence in 487 cases (507 in 1938).

Wilful damage, trespass, &c., is also an important class of offence in juvenile cases, being responsible for 532 charges in 1939 (339 in 1938). In 400 cases the charge was unlawfully converting vehicle to own use. Minor traffic offences were responsible for 586 cases in Children's Courts during the year.

In the “Other" offences the effect of the introduction of the Child Welfare Act, 1925, is very noticeable, the number of cases for 1939 (668) being nearly eight times that recorded for 1925 (88). The great majority of the cases in this class are brought under the Child Welfare Act, the number of cases of children not under proper control or in indigent circumstances during 1939 being 549, as against 595 in 1938. 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 414 cases, while in 15 cases the children concerned were committed to an institution under the Child Welfare Act.

CHILDREN'S COURTS.—TOTAL CASES, 1939.

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 withdrawn4991662181
Admonished and discharged241,5594131602,156
Committed for trial or sentence..........
Released on probation112....13
Ordered to come up for sentence2162..20
Committed to care of Child Welfare Superintendent1943812327796
Placed under supervision of Child Welfare Officer651,33549971,546
Committed to an institution under Child Welfare Act..19..1534
Committed to Borstal Institution, Salvation Army Home, &c.2702276
Fined..182525275
Whipped..........
Order made..3....3
Total cases1173,5697466685,100

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 1939 numbered 2,995, of which 2,638 were against males and 357 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 1939.

Fourteen distinct persons (including one female) under seventeen years of age were received into Borstal institutions during 1939.

OFFENCES BY WOMEN.

Of the 52,288 summary convictions in Magistrates' Courts in 1939 only 2,667, or 5.10 per cent., were of females, the following being the commonest offences:—

Common assault11
Attempted suicide18
Theft397
Fraud and false pretences31
Drunkenness165
Vagrancy41
Breaches of traffic regulations1,128
Offensive conduct or language35
Breaches of by-laws, &c.63
Unlicensed wireless sets275
Application for prohibition order30
Breaches of prohibition orders25
Other breaches of Licensing Act135
Allowing horses, cattle, &c., to wander61

There were also 43 committals of females to the Supreme Court during 1939-24 for trial and 19 for sentence. The Supreme Court statistics show that 24 indictments against women were dealt with during the year, resulting in 7 convictions, representing 6 different persons. In addition, 13 women were sentenced after committal for sentence in respect of 19 offences.

The number of distinct females received into prison under sentence during 1939 was 78 (including 7 Maoris), the principal offences of these being—vagrancy, 16; and theft, 27. 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.

As previously mentioned, Maoris are included in the statistical tables presented elsewhere in this section, the data given here being for purposes of comparison. According to the Census of 1936, 3.92 per cent. of the total population of the Dominion aged fifteen and over were Maoris (i.e., full, three-quarter, or half-caste).

The number of summary convictions of Maoris brought before Magistrates' Courts for the last five years is shown in the next table.

Year.Class of Offence.Percentage of Total Convictions in Magistrates' Courts.
Against the Person.Against Property.Against Good Order.Other Offences.Totals.
Drunkenness.*Other.
* Excluding prohibition-order cases.
1935555621954563841,6524.31
19361196533697504522,3435.59
19371006234949296672,8136.25
19381264745021,1176512,8705.78
19391314985991,1497083,0855.90

The 3,085 convictions entered against Maoris during 1939 related to 2,393 distinct offenders.

The total number of Maoris convicted and sentenced in the Supreme Court during the last five years was 281, or 11.24 per cent. of the total of 2,500. The 82 Maoris convicted or sentenced during 1939 (14.4 per cent. of the total of 571) were made up as follows: 32 for offences against the person (including 11 for unlawful carnal knowledge), and 50 for property offences (including 35 for burglary and breaking and entering). Sixty-eight of these were sent up from the Magistrates' Courts for sentence, the remaining 14 having been tried and convicted in the Supreme Court.

The number of distinct Maoris received into prison under sentence during 1939 was 310 (12.38 per cent. of the total committals). Seven females are included in this figure. In 1938, 252 Maoris (243 males and 9 females) were sentenced to imprisonment.

DRUNKENNESS.

The extent to which convictions for drunkenness swell the total of convictions in Magistrates' Courts 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 1939 totalled 6,441 (males, 6274; females, 167). 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 1939 the proportion was 3.96.

The convictions for drunkenness in 1939 represent 12.32 per cent. of the total convictions during the year. In addition, there were 1,220 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:—

YearConvictions for Drunkenness.Per 1,000 of Mean Population. Year.
Males.Females.Totals.Males.Females.Totals.
19353,2491253,3744.100.162.16
19364,3831604,5435.480.212.88
19374,8751575,0326.040203.16
19385,5671795,7466.822.233.58
19396,2741676,4417.590.213.96

Of the total convictions for drunkenness during 1939, 6,284 (6,120 males and 164 females) were arrest cases, while 157 (154 males and 3 females) were cases brought before the Magistrate by summons.

Repeated charges against the same person are included in the totals shown in the preceding table.

During 1939, 859 associated charges were preferred against persons convicted at the same time of drunkenness, the principal of these being—

Offence.Number of Convictions.
Common assault39
Theft35
Wilful damage106
Indecent, riotous, or offensive conduct34
Obscene, threatening, or abusive language158
Casting offensive matter95
Assaulting, resisting, or obstructing police58
Vagrancy27
Breaches of regulations relating to motor-vehicles92
Breach of prohibition order140

In addition, there were 77 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 1939 being 8 (6 males and 2 females). 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 6,441 convictions for drunkenness during the year were: Fined, 4,140; imprisonment in lieu of fine, 391; peremptory imprisonment, 317; committed to Salvation Army Home or other such institution, 34; convicted and discharged, 1,510; released under Offenders Probation Act, 7; other sentences, 42.

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.

The number of traffic offences dealt with in the Magistrates' Courts during 1939 was 27,366, convictions being entered in 25,723 instances. Comparative figures for 1938 were 26,095 and 24,279 for cases and convictions respectively. The more serious cases involving death or injury are, as a rule, sent on to the Supreme Court for trial or sentence. Thirty-eight such cases were sent forward in 1939 as compared with 59 in 1938. During 1939, 34 persons were sentenced in the Supreme Court for offences of this type.

The number of cases of traffic offences has increased enormously in recent years, the contributing factors being the marked growth of motor traffic, and particularly from 1938 onwards a vigorous campaign against unroadworthy vehicles and breaches of traffic regulations generally. During the five years 1935-39, convictions for traffic offences increased by 11,485, or 80.7 per cent. The number of motor-vehicles licensed increased by 107,337, or 53.5 per cent., during the same period.

Traffic offences constitute a high proportion of cases dealt with in the Magistrates' Courts, no less than 49.2 per cent. of total convictions in 1939 being on this account.

The following table shows convictions in Magistrates' Courts for traffic offences during the last five years:—

Offence.1935.1936.1937.1938.1939.
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 use237259325372384
Drunk in charge of motor-vehicle327477573685670
Drunk in charge of other vehicle815151617
Excessive speed in motor-vehicle1,3521,6941,5872,8553,389
Negligent or dangerous driving of motor-vehicle2,8013,5173,7124,5234,624
Negligent or dangerous driving of other vehicle440382548426451
Breaches of regulations for the lighting of vehicles3,3373,2422,4382,3012,358
Offences relating to the registration, &c., of motor-vehicles4,2294,2944,2654,3172,307
Offences relating to driver's license........2,279
Breaches of parking regulations1,4951,3342,1613,5473,498
Other traffic offences8361,0851,7625,2375,746
Totals15,06216,30017,39024,27925,723
Convictions per 1,000 of mean population9.6410.3510.9415.1115.79

Most convictions in the lower Courts are for comparatively trivial offences, and are usually dealt with by fine. Unlawful conversions and intoxication in charge however, often incur the penalty of imprisonment.

In view of the general interest in problems of road transport the following table shows 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).

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 used.Number.Number.Per 1,000 Motor-vehicles licensed at 31st December.Per 1,000,000 Gallons of Motor-spirit used.
19304352.266.9217,50517,94093.3285.6
19314032.157.3014,52014,92379.7270.3
19323081.646.1815,00715,31581.5307.1
19332871.525.6013,62713,91473.6271.3
19342531.264.5213,98514,23871.0254.3
19353271.515.2114,73515,06269.4239.8
19364771.976.6215,82316,30067.4226.1
19375732.146.9816,81717,39065.1211.8
19386852.347.6723,59424,27982.8271.9
19396702.187.2925,05325,72383.5279.7

The number of convictions for drunkenness in charge of a motor-vehicle showed a steady increase, both absolutely and relatively to road-usage, from 1934 to 1938, but a slight improvement was recorded in 1939. On the other hand, the ratio of total offences to the number of vehicles in use and to the consumption of motor-spirit fell steadily from 1932 to 1937. The increase in the last two years is due in a large measure to a vigorous campaign against traffic offences generally. Taking this fact into account, the present position compares not unfavourably with that of previous years.

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 1935-39:—

Year.Number of Offences reported.Offences in which Arrests or Summonses resulted.
Number.Percentage of those reported.
193533,16830,60192.26
193635,44833,05293.24
193738,62936,07893.40
193844,30841,61893.93
193946,37843,16293.07

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, offences against the person, as might be expected, yielding a much higher proportion of arrests or summonses than offences against property, in which detection of the lawbreaker is relatively more difficult.

Of the 43,162 reported offences which resulted in arrest or summons, 2,043 cases were dismissed, 39,553 cases resulted in summary convictions, and 1,566 were committed for trial. Of those committed for trial, convictions were entered in 1,362 cases.

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.1936.1937.1938.1939.
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 attempts138987688
Manslaughter33335555
Negligent driving causing death or injury6767595873734948
Attempted suicide9494949491917777
Assaults, wounding, &c.647616678660770752845823
Sexual offences335315364351277262412391
Robbery, breaking and entering, theft and receiving7,8945,9797,5375,5847,8415,9878,9796,695
Forgery, embezzlement and fraud9769181,2531,1721,0249501,1841,054
Arson and attempts1916211617142320

Chapter 9. SECTION IX.—DEFENCE.

NEW ZEALAND MILITARY FORCES.

CONSTITUTION.

General.—In peace-time 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.

Since the outbreak of the present war an Expeditionary Force (designated Second New Zealand Expeditionary Force) has been formed for service within or beyond New Zealand, under the Expeditionary Force Emergency Regulations 1940.

LIABILITIES AND TERMS OF SERVICE.

Regular Force.

The engagement of personnel in the Regular Force is voluntary. The original period of engagement is for eight years, but at the end of live years' service a soldier may be re-engaged (his engagement to terminate on his reaching the age of fifty-five years), or he may transfer to the Reserve for the remainder of his original engagement of eight years. During the 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. To meet the exigencies of the war, the Regular Force has been augmented by appointing, on a temporary basis for the duration of the war, a number of officers and other ranks for staff and other duties.

Territorial Force, Cadets, and Militia.

Liability for 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 age, in the Reserve.

Training in Peace.—Since 1st October, 1930, the compulsory provisions of the Defence Act have been in abeyance. Until 22nd July, 1940, enlistment and training in the Territorial Force was purely voluntary. Recruits for the Territorial Force voluntarily engaged to serve for three years. Men were permitted to extend their service up to the age of thirty-two years, and W.O.'s, N.C.O.'s, and specially selected men for a further period of three years.

The only Cadets trained are those at secondary schools, practically every such school having a Cadet unit, service in which is entirely voluntary.

Liability for 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.

Special War Legislation.—The National Service Emergency Regulations 1940 provide for the calling-up of men for service in the armed forces. Under these regulations the formation of a General Reserve was authorized, every person resident in New Zealand over the age of sixteen years becoming automatically a member of that Reserve. The First Division of the Reserve consists of all male reservists who are natural-born British subjects and who for the time being are unmarried within the meaning of that term as prescribed and have attained the age of nineteen years but have not attained the age of forty-six years, with the following exceptions:—

  1. Members of any armed force who are liable as such members for service outside New Zealand.

  2. Men who have been discharged in consequence of disablement or ill-health from any armed force after service in that force outside New Zealand during the present war.

  3. Men undergoing a sentence of imprisonment for a term not less than one year, or in confinement as of unsound mind.

  4. Natives within the meaning of the Native Land Act, 1931.

  5. Men who have been called up for service with the armed forces and whose appeals have been allowed on the ground that they conscientiously object to serving with the armed forces.

  6. Men who have been declared by a Medical Board to be permanently medically unfit for service with the armed forces.

Consequent upon the coming into force of the National Service Emergency Regulations 1940, voluntary enlistment for the Territorial Force and Second New Zealand Expeditionary Force closed on the 22nd July, 1940, and from that date service was made compulsory. All men enlisted as the result of being called up by ballot under the National Service Emergency Regulations are required to serve for the duration of the war and twelve months thereafter, or until lawfully discharged.

Up to date (20th November, 1940) two ballots for the Territorial Force and one for the Second New Zealand Expeditionary Force have been taken. Those balloted for the Second New Zealand Expeditionary Force are personnel required for the Sixth Reinforcements, all previous requirements having been found by voluntary recruiting.

Application, of the Army Act.—Members of the Regular Force and officers of the Territorial Force are subject at all times to military law as established by the Army Act, except where it is inconsistent with the Defence Act, while other ranks of the Territorial Force in time of peace are so subject only when undergoing training. In time of war, however, all members of the Defence Forces are subject to military law at all times, with the limitations mentioned above. The members of the Second New Zealand Expeditionary Force overseas are subject to the Army Act, except that the death penalty may not be carried into effect without the concurrence of the Governor-General.

COMMAND AND ADMINISTRATION.

The War Cabinet is responsible for controlling the Dominion's war effort, and is constituted as follows:—

  • The Right Hon. P. Fraser, Prime Minister:

  • The Hon. W. Nash, Minister of Finance:

  • The Hon. F. Jones, Minister of Defence:

  • The Hon. A. Hamilton, Minister without portfolio:

  • The Right Hon. J. G. Coates, M.C., Minister without portfolio.

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-General (Second Military Member):

  • The Quartermaster-General (Third 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:

  • The Finance Branch:

  • The Branch of the Quartermaster-General.

The Military Districts.—New Zealand is divided into three military districts (Northern, Central, and Southern), with headquarters at Auckland, Wellington, and Christchurch respectively. Each military district is under the command of a Brigadier of the Regular Force, who is provided with a suitable staff. Each military district is divided into four Areas. In peace-time an officer of the Regular Force or Temporary Staff is in charge of each Area, and is responsible for the inspection, training, and administration of both Territorial and Cadet units within his Area and for general administration in connection with recruiting, &c.

COMPOSITION.

(a) 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.]

(b) 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.

(c) 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.

ID 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.—In peace-time 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.

As a war measure all Coast and Anti-Aircraft Artillery units have been mobilized, and other units have undergone or are about to undergo intensive training in camp for a continuous period of not less than three months. Following the intensive training, annual training will consist of a number of periodical whole-day parades and a short period in camp.

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 officers have not been called up since 1930. Other ranks do no training at all.

MILITARY ESTABLISHMENTS.

The Army School of Instruction.—In peace-time 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. Officers and specialists for the Second New Zealand Expeditionary Force are also being trained 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 Territoral Force are also provided. Officers and N.C.O.'s for the Second New Zealand Expeditionary Force are also being trained at District Schools.

[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 in peace-time is the Otago University Medical Company, which consists of medical and dental students. During the war an Officer Cadet Training unit has been established at the Army School to produce officers for the Second New Zealand Expeditionary Force.

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.

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 November, 1940, was 320 officers and 16,832 other ranks.

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 was voluntary. The Reserve was 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—

(a) To bring the Territorial Army to war establishment on mobilization.

(b) To furnish reinforcements after mobilization.

Class 2.—Returned soldiers and ex-Regulars between thirty-five and fifty-five years. These men are required—

(a) To augment Fortress Troops at main ports.

(b) To provide garrisons at secondary ports.

(c) To protect vital points.

(d) To fill training and administrative appointments on mobilization.

(e) 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:—

(a) As a reserve to Classes 1 and 2.

(b) To provide a General Reserve from which various units, such as Defence Works Construction Companies, &c., will be formed.

(c) 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 were not eligible to join the National Military Reserve.

A number of units and sub-units have been organized and equipped and have commenced training.

EXPEDITIONARY FORCES.

New Zealand supplied ten 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 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 convoying 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.

The Second New Zealand Expeditionary Force, which was formed shortly after the outbreak of the present war, is now serving overseas.

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 focussing 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, and served with the battle cruiser squadrons of the Grand Fleet throughout the war of 1914-18.

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 that 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, which was passed to give effect to this decision, 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, and H.M.S. “Philomel” was withdrawn for war service.

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 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 following year the first batch of New Zealand recruits joined H.M.S. “Philomel,” which had been presented to the New Zealand Government at the end of the war.

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. 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 Naval 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. In 1927, also, the Government announced that New Zealand would undertake responsibility for the maintenance of modern cruisers when the Singapore subsidy had lapsed.

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. As a temporary measure for the duration of the war the office of First Naval Member and Chief of the Naval Staff has been combined with the appointment of the Commodore Commanding New Zealand Squadron.

THE NAVAL STATION.

The base of the New Zealand Naval Forces is at Devonport, Auckland, and the repair yard is known as “H.M. Dockyard, Devonport.” 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.

It has been decided to replace H.M.S. “Philomel,” which, for many years, has acted as depot ship and instructional establishment, by buildings to be erected on shore within the precincts of H.M. Dockyard. These buildings will form the shore headquarters of the New Zealand Naval Forces, in which the officers and men will live during such periods as they are not serving on board sea-going ships. The transfer to a shore establishment will also facilitate the development of the instructional establishment, which has been planned to provide for courses to qualify men for non-substantive ratings.

In the year 1935 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 Dockyard 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 reconstruction and modernization programme referred to above has been supplemented by a reorganization of the controlling and supervisory staff of the Dockyard, with a result that it has now attained a very high standard of efficiency, and this has been exemplified in the very successful major refits of the cruisers carried out in the early part of 1940.

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. A further extension of the Naval Armament Depot has now been approved.

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 1940 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.

Regulations for the entry of officers in the New Zealand Naval Forces (N.Z.N.F. Booklet E.O.I) can be obtained on application to the Naval Secretary, Wellington.

The entry of New-Zealanders as medical officers has been approved, and the first entry was effected in August, 1940.

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; 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 8 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 Director of Recruiting, 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, 1940, the following numbers of New-Zealand-entered officers and ratings were borne on the active strength of the Division.

Officers12
Ratings801

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.

The strength of the Naval Reserve Forces at 31st March, 1940, was—

 Officers.Ratings.
Royal Naval Reserve20188
Royal Naval Volunteer Reserve83710

The New Zealand loyal Naval Reserve and the Royal Naval Reserve were mobilized by Proclamation 4th September, 1939. H.M. ships of the New Zealand Naval Forces have been brought up to war complement by the draft of reserve officers and ratings, and the various port services established and expanded by the same means. The officers and men of the Royal Naval Volunteer Reserve not required for service in New Zealand have been transferred for the duration of the war to the Royal Navy.

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 in each of the nine years 1930-31 to 1938-39:—

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.
1930-31543,837...277,79913,812835,4480112
1931-32444,674...183,089..627,763083
1932-33462,094...207,827..669,921089
1933-34497,384...264,724..762,1080911
1934-35537,840...321,563143,669..1,003,07201211
1935-36562,245...378,181173,944..1,114,3700143
1936-37632,062427,635132,382..1,192,0790151
1937-38760,529529,632313,65298,2651,702,078114
1938-39835,331706,753557,205368,7202,468,0091108

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.)
193044,940,51744,339,65448,411,81749,429,58446,969,21349,295,452
193134,950,69826,498,15139,527,00939,833,15736,943,77435,073,948
193235,609,91924,646,00633,942,61724,760,42134,668,40724,655,259
193341,005,91925,581,36637,510,16425,059,52037,470,65725,290,201
193447,342,84731,339,55246,042,57026,135,49649,141,91426,703,380
193546,538,38136,317,26744,918,18032,567,78542,953,69834,301,328
193656,751,94044,258,88649,675,99237,439,94453,659,96339,509,276
193766,713,37956,160,69560,234,51147,621,10464,621,47450,076,468
193858,376,28355,422,18965,007,94658,064,55961,919,91357,542,606
193958,049,31649,387,18357,867,27954,408,44757,891,91156,499,607
1940....59,683,93845,571,77465,858,63646,070,033
       
 £(Stg.)£(Stg.)£(Stg.)£(Stg.)£(Stg.)£(Stg.)
193131,852,00024,157,00037,198,00037,656,00034,321,00032,873,000
193232,373,00022,406,00030,857,00022,509,00031,517,00022,414,000
193332,805,00020,465,00032,677,00022,049,00031,516,00021,613,000
193437,874,00025,071,00036,834,00020,908,00039,314,00021,363,000
193537,380,00029,170,00035,985,00026,082,00034,450,00027,495,000
193645,584,00035,549,00039,900,00030,072,00043,101,00031,734,000
193753,585,00045,109,00048,381,00038,250,00051,905,00040,222,000
193846,889,00044,516,00052,215,00046,638,00049,735,00046,219,000
193946,439,00039,510,00046,415,00043,657,00046,381,00045,291,000
1940....47,747,00036,457,00052,687,00036,856,000

The total merchandise exports and imports are next given for each month from July, 1939, to June, 1940, 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.
1939.£(000)£(000)£(000)£(000)£(000)£(000)
July3,5572,8454,0803,263−523*−418*
August4,0993,2794,1743,339−75*−60*
September2,9972,3983,6832,947−686*−549*
October3,9073,1263,3302,664577462
November3,2292,5832,8812,305348278
December3,4,372,7503,0522,442385308
1940.
January6,3205,0563,9833,1862,3371,870
February8,1156,4923,3472,6774,7683,815
March7,2655,8122,7282,1834,5373,629
April8,4226,7384,3643,4924,0583,246
May5,0154,0125,5484,439−533*−427*
June9,4947,5954,8983,9194,5963,676
Twelve-monthly Totals.
1939.
July57,66546,18855,96844,8511,6971,337
August57,94146,39655,07944,1232,8622,273
September57,75546,23753,94243,1983,8133,039
October59,49747,62453,00242,4336,4955,191
November58,34046,68451,10040,8957,2405,789
December58,04946,43949,38739,5098,6626,930
1940.
January68,15846,52648,64738,9179,5117,609
February60,10148,08147,19937,75912,90210,322
March59,68447,74745,57236,45714,11211,290
April63,17350,53846,15836,92617,01513,612
May61,51049,20746,36937,09515,14112,112
June65,85952,68746,07036,85619,78915,831

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.Year.Exports.Imports.Total Trade.
 £s.d.£s.d.£s.d. £s.d.£s.d.£s.d.
19203770491011861711193030202914059160
192135233398681111193123181710040118
1922321492613859851932236516123977
192334119321306749193326128161244350
19243816535176741311193430103204050143
1925391813717477155193529159234115308
192632063548675219363607281116426
19273314031256416519374119235657757
192838333016068193193836683491070166
19293757331670711939351211306665195

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.ImportsExports.Imports.Exports.Imports.
1926100100100100100100100100100
192710790107901079010996102
1928123901239012390112100106
1929121981219812198116114115
1930958595859989119106112
19316545704877531206993
19325132724579491336698
193349287241915115066109
1934523184501056315183115
1935493583591037314797121
193661431017112589157118137
1937715511891147113157143149
1938625310489129111149143146
193956441037912899151126138

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.Year.Visible Excess of Exports.
* Excess of imports.
 £(N.Z.)£(Stg.) £(N.Z.)£(Stg.)
1920−15,148,487*−15,148,487*1930600,863677,000
19212,084,3382,084,33819318,452,5477,695,000
19227,899,8757,899,875193210,963,9139,967,000
19232,575,8102,575,810193315,424,55312,340,000
19243,981,6203,981,620193416,003,29512,803,000
19252,817,2902,817,290193510,221,1148,210,000
1926−4,542,839*−4,542,839*193612,493,05410,035,000
19273,713,6883,713,688193710,552,6848,476,000
192810,726,27910,726,27919382,954,0942,373,000
19296,195,5916,195,59119398,662,1336,930,000

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 pronounced fall in exports from the previous year's level was responsible for the import excess in 1926. and a similar movement accounted for the low excess of exports in 1930 and in 1938. The improvement in 1939 was effected by a reduction in imports under the policy of import selection and control which was inaugurated at the beginning of that year.

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 in normal times 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 recent 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 11 millions sterling over the twenty years ended 31st March, 1939, has been accompanied by an increase of some 65 millions sterling in Government and local-authority debt domiciled abroad.

The following table shows for the year 1939 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.)
 £(N.Z.)£(N.Z.)£(N.Z.)£(Stg.)
United Kingdom46,689,19823,277,004+ 23,412,194+ 18,729,000
Canada963,7104,360,362− 3,396,652− 2,717,000
India145,548699,059− 553,511− 443,000
Ceylon241821,609− 821,368− 657,000
Union of South Africa60,09576,575− 16,480− 13,000
Australia2,256,0076,738,988− 4,482,981− 3,586,000
Fiji143,09871,163+ 71,935+ 57,000
Nauru Island5,237201,244− 196,007− 157,000
Other British countries306,134842,179− 536,045− 428,000
Totals, British countries50,569,26837,088,183+ 13,481,085+ 10,785,000
Germany390,006824,089− 434,083− 347,000
France1,579,176213,974+ 1,365,202+ 1,092,000
Belgium874,620403,977+ 470,643+ 376,000
Italy1,565127,784− 126,219− 101,000
Sweden176,713316,543− 139,830− 112,000
Japan390,7831,032,623− 641,840− 513,000
Netherlands East Indies7,8232,434,543− 2,426,720− 1,941,000
United States of America2,847,1585,339,322− 2,492,164− 1,994,000
Other foreign countries812,7711,606,145− 793,374− 635,000
Totals, foreign countries7,080,61512,299,000− 5,218,385− 4,175,000
Ships' stores399,433..+ 399,433+ 320,000
Totals, all countries58,049,31649,387,183+ 8,662,133+ 6,930,000

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.)23,412,194—resulted from trade in merchandise with the United Kingdom in 1939; whereas an adverse balance is shown in the case of most other British countries. A credit balance of £13,481,085 emerged from commodity trade with British countries as a whole, while trade with foreign countries resulted in an adverse balance of £5,218,385.

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 209). 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 £5,218,385 with foreign countries in 1939 is reduced to about £3,000,000, while the credit balance with the United Kingdom reduces from £23,412,194 to approximately £21,000,000.

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 1938-39 are here given, all figures being expressed in terms of sterling:—

Year ended 31st March,Inward Balance on Account of
Visible Merchandise Trade (us 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.
1920+ 19.2+18.9+14.3+ 14.1+10.9−10.7
1921−19.2−19.3−24.1−21.0−29.6−26.5
1922+ 8.0+ 7.7+ 2.5+11.9+0.2+9.6
1923+ 8.7+ 8.6+ 3.0+ 8.5+0.7+6.2
1924+ 7.2+ 7.3+ 1.4+ 8.3− 1.3+5.6
1925+ 4.8+ 4.9− 1.3+9.5−4.1+6.7
1926− 4.3− 4.3−11.1− 2.2−13.3− 4.4
1927− 2.4− 2.5− 9.6− 2.2−10.5− 3.1
1928+ 10.6+ 10.5+ 3.0+ 10.6+1.7+ 9.3
1929+ 11.4+ 12.0+ 4.04−15.0+1.9−12.9
1930−1.1− 0.6− 8.9−11.3−10.7−13.1
1931− 0.5− 0.8− 9.2− 1.2−10.5− 2.5
1932+ 8.3+ 9.0+ 1.1+4.5+0.9+4.3
1933+ 10.6+ 12.3+ 5.2+4.0+3.5+2.3
1934+ 15.9+15.7+ 8.64− 6.4+6.3+4.1
1935+ 9.9+ 11.9+ 5.04− 2.7+3.9+1.6
1936+ 9.8+ 10.2+ 3.44− 0.3+1.9−1.2
1937+ 10.2+ 10.1+ 3.84− 0.9+1.7− 3.0
1938+ 5.6+ 5.4− 0.7− 1.2− 2.4− 2.9
1939+ 2.8+ 2.8− 3.3− 4.0− 4.7− 5.4
Aggregate of twenty years+ 115.5+ 119.8−12.94−51.8− 53.5+11.2

The first four columns are based wholly on ascertained figures, which relate to approximately 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 (£11.2m.) for all items over the twenty years, taken in conjunction with the factor just mentioned, 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.
 £m.£m.
Trade—  
  Merchandise909.0793.5
  Specie7.83.5
Government and local-authority debt—  
  Increase64.7..
  Interest..132.7
Other items (largely estimated)75.9110.5
    Totals1,057.41,046.2

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,
1935.1936.1937.1938.1939.
Inward or credit items—£(000)£(000)£(000)£(000)£(000)
  Merchandise exports (f.o.b.)35,98539,90048,38152,21546,415
  Specie exports2,93953711134
  Interest on inter-Governmental debts76644
  Other interest and dividend receipts16148465047
  Freights197236272357345
  Passage-money317400460475520
  Port receipts652700700855910
  Funds of immigrants81103151251379
  Expenditure by tourists6447969171,1151,306
  Consular, &c., expenditure30303035..
  Governmental sales of overseas long-term securities835302005..
  Governmental receipts n.e.i.297248139167155
    Total credit items42,14543,03451,31355,53050,165
      
Outward or debit items— 
  Merchandise imports (as recorded)26,08230,07238,25046,63843,657
  Additional allowance for freight, &c.245........
  Specie imports9011696023614
  Reductions in Government and local authority debts2,2933,0784,652533680
  Interest on Governmental debt6,0425,8235,3585,3305,323
  Interest on local authority debt936936914793764
  Interest, &c., on private debt and investments1,0001,0001,0001,0001,000
  Funds of emigrants368462428463448
  Tourist expenditure1,9462,0333,0322,8823,084
  Consular, &c., expenditure60606095102
  Governmental expenditure n.e.i.713599603486542
    Total debit items40,58644,23254,35758,45655,614

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. For some years prior to 1935-36, this 10-per-cent. allowance was 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 three following years.

It may be desirable to explain that freight and other charges on exports—estimated to have approximated £(stg.)6,000,000 annually over the period covered by the table—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 1938-39 is estimated at £(stg.)3,969,000—i.e., of £(stg.)43,657,000.

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 four 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 was 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, for which reasons also, but mainly the former, there was a much more substantial difference of £(stg.)8,739,000 in 1938-39.

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 had the effect of arresting the fall in the overseas funds, and, although there was little improvement during the next twelve months, a series of monthly increases commencing in November, 1939, raised the total to £27,382,104 by 24th June, 1940. A seasonal decline has since been in evidence, the amount held on 28th October, 1940, being £21,334,511.

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 an ordinary export of the Dominion, along with wool, frozen meat, dairy-produce, &c. 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 now risen to nearly 3 per cent.

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 (−).
 £££
1930363,087175+ 362,012
193156,155202,330−146,175
193255,3101,355,861−1,300,551
1933424,704296,032+ 128,672
19341,242,0002,283,900−1,041,900
1935381,821521,000− 139,179
193636,60145,245− 8,644
1937318,5103,500+ 315,010
193831,27431,805− 531
193925,3642,795+ 22,569

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, 1931-39, 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.
 ££££££
193031,670,69310,835,1461,494,255345,618588,80544,940,517
193125,724,1997,255,7491,107,610254,031609,10934,950,698
193225,794,1127,269,9461,093,495239,7731,212,59335,609,919
193328,437,1909,784,9251,141,632261,8231,380,34941,005,919
193429,210,95015,294,0361,121,438323,0691,393,34847,342,847
193533,315,23210,141,6511,209,680357,5611,514,25746,538,381
193636,398,20417,214,5821,234,704443,7321,460,71856,751,940
193739,836,45923,642,1721,317,848429,5141,487,38066,713,379
193840,317,72415,055,8351,237,322425,4841,339,91858,376,283
193940,017,41514,609,1931,233,955524,1821,664,57158,049,316

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 1935-39 this class accounted for 66.3 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 28.2 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 2.2 per cent., while bullion and the small miscellaneous class were responsible for the remaining 3.3 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 extent to which the Dominion relics 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 recovery was made during subsequent years, the record percentage of 94.4 being reached in 1937.

PROPORTIONS OF EXPORTS SUPPLIED BY THE MAIN INDUSTRIES.

Year.Exports (New Zealand Produce).Percentage of Total Exports.
PastoralAgriculturalForestMiningOtherPastoralAgriculturalForestMiningOther
 £££££Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
192041,560,170530,0561,262,8941,103,3441,135,82491.11.22.82.42.5
192140,698,807490,094884,279787,591754,62793.31.12.01.91.7
192238,182,793908,9141,066,054850,409630,88891.62.32.62.01.5
192342,128,295508,3561,080,326937,238657,69892.91.32.42.11.3
192448,914,828431,325937,178787,664819,83394.20.91.81.51.6
192551,370,479467,8971,000,453770,439911,76394.20.91.81.41.7
192640,763,348902,164820,947854,995997,72991.92.01.91.92.3
192744,207,037887,893725,047804,834946,42292.91.91.51.72.0
192851,509,520964,956626,696710,450848,74394.21.81.11.31.6
192950,780,1131,036,700717,088809,676832,43093.81.91.31.51.6
193041,368,145971,259503,170784,125582,70793.62.21.11.81.3
193132,112,634910,937311,666707,126276,89193.62.60.92.10.8
193232,102,2181,043,277321,9231,190,306318,66391.83.00.93.40.9
193337,102,5101,221,979318,8911,374,211391,16091.83.00.83.41.0
193443,336,9601,153,056411,5111,410,911452,85592.72.40.93.01.0
193542,509,666935,821448,6861,573,302524,19892.42.01.03.41.2
193652,671,9751,108,341366,3501,515,679601,46093.62.00.62.71.1
193762,533,5041,033,060358,6801,500,157716,05694.41.60.52.41.1
193854,285,4351,252,241285,6411,420,661556,64893.92.20.52.41.0
193953,725,4331,168,212271,9241,731,843550,61893.52.00.53.01.0

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. 204-206.

Of the principal commodities in 1939, increases in value as compared with 1938 were recorded as follows: Gold, £331,687 (26 per cent.); frozen meat, £298,742 (2 per cent.); skins, hides, and pelts, £157,454 (7 per cent.); dried and preserved milk. £69,903 (23 per cent.); grass and clover seeds, £51,142 (22 per cent.); peas, £28,822 (23 per cent.). Decreases were shown for: Wool, £519,574 (4 per cent.); butter, £409,019 (2 per cent.); apples, £199,358 (28 per cent.); tallow, £68,248 (13 per cent.); cheese, £65,171 (1 per cent.); phormium and tow £56,635 (7 per cent.); casein, £28,765 (29 per cent.); and timber, £22,179 (12 per cent.).

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 have frequently been 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 1939 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.Reexports.
  ££
IFoodstuffs of animal origin (excluding live animals)39,034,4821,410
IIFoodstuffs of vegetable origin, and common salt918,0125,121
IIIBeverages (non-alcoholic), and substances used in making up the same61220,516
IVSpirits and alcoholic liquors4,4794,070
VTobacco and preparations thereof4,2252,028
VIhive animals132,8854,029
VIIAnimal substances (mainly unmanufactured), not being foodstuffs14,211,475..
VIIIVegetable substances and non-manufactured fibres326,7602,504
IXAApparel4367,383
IXBTextiles5,72410,587
IXCManufactured fibres1,14010,353
XOils, fats, and waxes501,537307,872
XIPaints and varnishes4803,433
XIIStones and minerals used industrially184,2033
XIVAMetal (unmanufactured and partly manufactured) and ores1,690,2691,221
XIVBMetal manufactures other than machinery and machines3,98014,699
XVMachinery and machines48,86259,891
XVIARubber and manufactures thereof (not including tires)..1,610
XVIBLeather and manufactures thereof (including substitutes)3,9871,042
XVIIATimber155,6521,044
XVIIBWood, cane, and wicker manufactures925268
XVIIIEarthenware, china, glass, stoneware, cement, and cement materials1,6151,501
XIXAPaper226549
XIXBStationery15,5037,119
XXJewellery, timepieces, and fancy-goods1,8324,594
XXIOptical, surgical, and scientific instruments2,10031,553
XXIIADrugs, chemicals, and druggists' wares40,9326,730
XXIIBManures52,9497
XXIIIAVehicles5714,453
XXIIIBMiscellaneous45,10175,696
 Parcel-post57,590..
 Totals, merchandise57,448,030601,286
XIIISpecie (face value)..2,795

Exports during 1939 (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.
* Face value.
 £££ ££
Grain75,37976,5922,6814,445..159,097
Milled products..275..29..304
Fish2,261158,296304523,198164,237
Meat (including poultry and game)15,566,31987,43123,94637,43017615,715,302
Butter, cheese, and eggs21,634,179200,02811,548136,20810021,982,063
Fruits (fresh and dried)381,29335,421..158,210232575,156
Preserved fruit and vegetables, fruit-pulp, jams, &c.394319..603201,093
Live animals for food............
Sugar..11,542..2,1562,07215,770
Tea..17,707..8911,63520,233
Alcoholic beverages5236749057,1168,504
Tobacco43233..175,9606,253
Coal..77....59,89459,971
Ores, concentrates, and scrap14,4565,062..6,277..25,795
Iron and steel—      
  Pig, ingots, &c.............
  Bar, rod, plate, sheet, &c...592..78..670
  Other manufactures of iron and steel2,52511,7602393551,68916,568
Agricultural implements and machinery9222,98392....3,997
Electrical machinery and equipment2,10914,5361,5301,6511,17521,007
Other machinery7,19671,5531,24051724383,749
Motor-vehicles and parts (excluding motor-bicycles)1,8635,4914192,543..10,316
Other metals and metal manufactures1,5843,1835048041436,278
Raw cotton............
Flax, hemp, and raw jute (including tow)5,46517,578..2,169..25,212
Wool, raw6,687,352947,309629,8543,401,394..11,665,909
Yarns and thread979372..12..1,363
Cotton piece-goods2212,084..3881212,814
Woollen piece-goods7641,315....442,123
Other piece-goods931,879..367..2,339
Other textiles50217,4594746721,13320,240
Apparel1,8961,882172563894,602
Footwear1,0731,1703018..2,297
Chemicals, drugs, dyes, &c.39,51041,1541827,8772,908111,467
Fertilizers21,6343,96824,5772,777..52,956
Earthenware (including bricks, glass, &c.)1056145347901,548
Wood, timber, and manufactures thereof (including wood-pulp)3,641153,21917010854157,900
Newsprint..166......166
Paper and cardboard6294,735891731395,765
Seeds and nuts for expressing oil there from..2,352......2,352
Animal and vegetable oils, fats, greases, and waxes315,251127,1158,27849,79257500,493
Oil—Petroleum, crude, and refined..1,398..11306,280307,689
Hides, skins, and furs, undressed409,909374,6751,430,253319,672..2,540,509
Leather and manufactures thereof (excluding clothing and footwear)2,1422,462..425..5,029
Other794,465826,593397,49073,9963,0652,095,609
Total45,976,2063,232,9472,542,7214,233,438399,43356,384,745
Gold and silver bullion712,992647,123304,43719..1,664,571
Total exports (excluding specie)46,689,1983,880,0702,847,1584,233,457399,43358,049,316
Specie*..2,795......2,795

The principal items of export may again be regrouped into 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)...1935.1936.1937.1938.1939.
* Ounces of the fineness of 20 carats and upwards.
The mine— 
  Coal(ton)46,14644,87249,08955,71143,990
  Gold*(oz.)171,283168,073172,317152,487176,370
  Scheelite(cwt.)1,040815735971760
  Silver(oz.)389,203478,859439,554370,084315,526
  Other minerals(ton)161755
       
The fisheries— 
  Fish(cwt.)55,46361,76448,70347,22343,473
  Oysters(doz.)197,117136,19570,45833,70962,899
  Whale-oil(gal.)71,60171,76085,35043,605116,258
       
The forest—      
  Fungus(cwt.)1,418938925613517
  Kauri-gum(ton)2,8723,2373,2262,3042,316
  Timber, sawn and hewn(sup. ft.)39,585,19820,993,33417,656,98314,534,25313,172,312
       
Pastoral products—      
  Bacon and hams(cwt.)738987803842718
  Meats, salted and smoked(cwt.)7256641,025633351
  Butter(cwt.)2,789,2982,796,1452,976,0852,614,5492,443,297
  Casein(cwt.)65,16780,83677,53441,40338,513
  Cheese(cwt.)1,727,5521,658,2061,647,1601,610,5231,677,257
  Eggs in shell(doz.)354,580327,79874,686227,74112,538
  Hides and skins(number)1,999,4731,899,4301,814,9591,864,8621,769,377
  Honey(lb.)1,155,247739,956318,6211,853,215440,199
  Live-stock—      
    Cattle(number)5728865386
    Horses(number)257211229192154
    Sheep(number)2,2835,54514,09411,32914,758
    Pigs(number)3347252135
  Preserved meats(cwt.)74,25686,00669,84951,43571,617
  Meat extract(lb.)167,848303,812176,170106,905118,377
  Frozen meats(cwt.)5,206,5145,119,8045,410,9125,373,3085,906,251
  Milk, dried and preserved(lb.)20,783,08023,742,35424,713,64820,536,67824,545,704
  Sugar of milk(lb.)289,016527,520632,464421,956810,780
  Sausage-casings(cwt.)37,42939,42937,89536,46040,813
  Rabbit-skins(number)13,536,74516,928,93112,050,43810,268,01211,190,294
  Sheep-skins and pelts(number)14,170,54412,627,58112,503,04114,177,59215,156,536
  Tallow(cwt.)505,540521,900518,800592,260582,740
  Lard(cwt.)6,03714,75517,35219,57419,385
  Wool(lb.)222,661,403314,409,402232,339,148271,283,233277,391,713
       
Agricultural products—      
  Bran and pollard(ton)16582521..
  Flour..12823812
  Apples(lb.)37,790,81944,806,17330,081,75757,642,92737,980,567
  Pears(lb.)3,786,7904,530,3401,638,6364,203,9953,925,760
       
Grain and pulse—      
  Barley(cental)..131..16
  Beans(cental)8591,5461,375522763
  Peas(cental)147,110167,407144,096166,036163,755
  Oats(cental)38,1912,3252,2642,1023,875
  Wheat(cental)125146100289
  Hops(cwt.)3,9934,2651,2093,4641,023
  Oatmeal(ton)....122
  Onions(ton)1448803892045,042
  Potatoes(ton)1,0725,80320,8234,8851,166
  Seeds (grass and clover)(cwt.)71,64979,98258,10745,48445,829
  Tobacco, unmanufactured(lb.)66,419185,40575,222240,971..
       
Miscellaneous—      
  Ale, stout, and cider(gal.)35,70127,51917,33719,54819,029
  Phormium fibre and tow(ton)4,1016,2095,4734,5191,593
  Sugar(cwt.)22,26635,76326,97820,47219,701
  Metals, scrap (not precious)(cwt.)171,590238,534274,94515,86617,020
  Pumice—sand and stone(ton)3,3003,2422,9313,0463,681
  Blood and blood-and-bone manures(ton)2,1571,6642,7301,6951,930

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).1935.1936.1937.1938.1939.
* As recorded. Certain exports of ambergris by parcel- post are not available, but are included in “Miscellaneous—Other” at the end of the table.
The mine—£££££
  Coal62,91055,21773,48673,47759,971
  Gold1,441,7901,398,6561,435,2161,296,8391,628,526
  Scheelite7,0835,5638,41210,8047,728
  Silver61,31755,74548,18438,87335,159
  Other minerals262498859668459
    Totals1,573,3621,515,6791,566,1571,420,6611,731,843
      
The fisheries—     
  Fish140,683172,713172,756175,083162,430
  Oysters2,1361,441990532975
  Whale-oil5,0515,4928,1675,32812,990
  Ambergris*441,383..20937
  Other740648533349225
    Totals148,654181,677182,446181,501176,657
      
The forest—     
  Fungus5,1945,0206,0743,9813,607
  Kauri-gum79,11396,161151,589103,777112,650
  Timber, sawn and hewn364,359265,108200,855177,831155,652
  Other20611625215
    Totals448,686306,350358,680285,641271,924
      
Pastoral products—     
  Bacon and hams4,5305,8325,5075,7615,055
  Meats, salted and smoked1,5241,4242,5211,543905
  Butter13,616,74015,317,57616,986,47710,520,22616,111,207
  Casein161,700194,907247,78298,03069,265
  Cheese4,376,5125,122,4385,371,8785,935,0615,869,890
  Eggs in shell22,37822,6644,83313,708900
  Hides and skins740,274847,7251,070,837766,341817,533
  Honey33,78820,8449,09950,33012,376
  Live-stock— 
    Cattle2,9501,5503,0111,3902,279
    Horses64,03768,08275,15454,89664,817
    Sheep18,05840,10869,89162,28964,950
    Pigs178182159410365
    Other140108275275136
  Milk, dried and preserved370,890405,801364,676307,603377,506
  Sugar of milk7,75414,15817,29211,34624,413
  Preserved meats216,417273,201258,055231,369318,529
  Meat extract11,97317,32510,5836,4829,032
  Frozen meats12,768,96813,239,41414,689,61615,092,05915,390,801
  Sausage-casings787,261641,393760,264742,595698,317
  Rabbit-skins395,090763,961557,132247,390262,904
  Sheep skins and pelts1,275,4641,703,1302,246,0151,369,3241,460,072
  Tallow630,638628,310647,969524,775456,527
  Lard9,65030,23234,73226,85222,501
  Wool7,097,13313,293,70619,070,24012,185,48311,665,909
  Other20,44317,90429,50629,89719,244
    Totals42,634,49052,671,97562,533,50454,285,43553,725,433
      
Agricultural products—     
  Bran and pollard599591,1438..
  Food for animals16,84221,77935,00736,27940,782
  Flour12532533171208
  Fruits— 
    Apples467,422552,902452,335719,528520,170
    Pears57,07155,52820,40452,56854,534
    Other14416419411366
  Grain and pulse— 
    Barley..74..11
    Beans1,8844,1292,1071,0262,180
    Peas107,173121,743105,760125,758154,580
    Oats11,2201,1701,2731,2141,912
    Wheat667358178
    Other..1168171278
  Hops27,35928,4848,34721,0936,818
  Oatmeal915284539
  Onions1,2006,3233,9902,29574,132
  Potatoes8,49031,316172,18020,45112,214
  Seeds (grass and clover)215,738249,861205,988233,372284,514
  Seeds (various)8,66510,58510,0687,2428,290
  Tobacco, unmanufactured6,64218,4957,52724,096 
  Other5,2855,1656,0406,7947,476
    Totals9358211,108,3411,033,0601,252,2411,168,212
      
Miscellaneous (including manufactures)—     
  Ale, stout, and cider7,5755,8994,2394,6484,465
  Apparel (including hats, caps, hosiery, and millinery)1,3481,2651,512442382
  Dairying machinery10,22915,47820,42634,04235,334
  Blood- and blood-and- bone manures17,55714,55730,40420,27521,853
  Metals, scrap (not precious)35,19946,31999,82115,49818,042
  Cordage8568651,180484714
  Foods, infants' and invalids'12,50013,84615,81713,21018,253
  Leather5,0967,1896,6727,8283,530
  Phormium fibre and tow57,553111,528130,71581,64725,212
  Pumice, sand and stone8,7698,8818,0578,81111,172
  Soap10,9868,5137,5706,3195,533
  Sugar16,44820,04721,35816,07115,743
  Binder-twine17226725716170
  Woollen manufactures4,9041,9242,1741,812935
  Other121,528163,205184,008163,899212,723
    Totals310,720419,783534,210375,147373,901
      
Totals, New Zealand produce46,051,73356,263,80566,208,05757,800,62657,448,030
Re-exports of merchandise486,648488,135505,322575,657601,286
Total exports of merchandise46,538,38156,751,94066,713,37958,376,28358,049,316
Specie exports (face value)521,00045,2453,50031,8052,795

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 1915-17 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-five years since 1914, the aggregate value of merchandise exported from New Zealand amounted to £1,160,814,213, of which £949,008,877, 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 1939, in order of magnitude, were Belgium, Japan, The Netherlands, Sweden, India, Malaya, Poland, China, and Panama Canal Zone.

Year.United Kingdom.Canada.Australia.France.GermanyUnited States.Other Countries.*Total Merchandise Exports.
* Including ships' stores.
 ££££££££
192034,354,3001,357,7742,351,700203237,456,041885,22646,405,366
192138,716,593454,5972,070,01314,89346,1622,702,104824,69844,828,460
192236,154,174446,4572,208,28060,595218,3382,672,775965,33042,725,949
192337,324,605665,6962,614,394340,579190,6003,531,2721,272,14745,939,793
192441,969,691716,5432,474,879561,5691,166,3023,278,1352,342,10452,509,223
192544,066,981423,0682,489,230600,8141,614,0904,349,7581,699,10655,243,047
192635,102,087861,7173,048,282681,668364,6293,818,2321,392,30945,208,924
192736,877,8871,666,5983,065,9621,008,2911,139,6542,681,0911,456,87148,496,354
192840,510,0752,469,1502,902,6551,800,8971,290,0714,160,3152,437,21855,570,381
192940,417,0433,353,9752,338,4101,768,3991,220,5523,553,4272,278,25754,930,063
193036,015,1282,539,2121,562,281519,727401,0842,116,7521,780,33344,940,517
193130,739,976256,8901,167,403419,016309,847920,9311,136,63534,950,698
193231,344,670244,1601,444,860508,960280,917690,0151,087,33735,609,919
193335,275,909560,8751,393,311738,176376,8861,188,9721,471,79041,005,919
193438,629,240697,8651,882,5161,228,699944,3101,250,3642,709,85347,342,847
193538,921,568656,9841,781,811484,610165,3042,468,0662,060,03846,538,381
193645,492,9891,103,0081,843,4751,646,168272,4812,877,7523,510,06756,751,940
193750,705,5911,678,4031,824,1831,014,941919,1484,784,0995,787,01466,713,379
193848,897,9901,127,1242,189,4541,015,456890,9761,421,6302,833,65358,376,283
193946,689,198963,7102,256,0071,579,176390,0062,847,1583,324,06158,049,316

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, in normal times, 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. For these reasons it is probable that our exports to Continental countries are somewhat higher than the figures indicate; similarly 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. 1938, and 1939 ships' stores), taken by each of the principal countries trading with the Dominion.

Country.1930.1931.1932.1933.1934.1935.1936.1937.1938.1939.
Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
United Kingdom80.1487.9688.0286.0381.5983.6380.1676.3084.1780.99
India0.910.170.150.080.140.130.220.200.240.25
Union of South Africa0.040.020.030.030.060.060.040.050.030.10
Canada5.650.740.691.371.461.411.952.531.941.67
Australia3.483.344.063.403.983.833.252.753.773.91
Fiji0.240.250.250.210.180.190.180.140.170.25
Other British countries0.500.440.450.380.420.520.480.460.430.55
Totals, British countries90.9692.9293.6591.5087.8389.7786.2882.4390.7587.72
Belgium0.440.420.470.811.291.391.091.030.631.52
France1.151.201.431.802.601.042.901.531.752.74
Germany0.890.890.820.922.000.360.481.381.530.68
Japan0.340.760.670.861.810.932.744.711.020.68
United States of America4.712.661.942.912.645.305.077.202.454.94
Other foreign countries1.511.151.021.201.831.211.441.721.871.72
Totals, foreign countries9.047.086.358.5012.1710.2313.7217.579.2512.28

A little more than four-fifths of New Zealand's exports during 1939 went to the United Kingdom. The principal commodities, in order of magnitude, were as follows (1938 values being shown in parentheses for purposes of comparison): Butter, £15,767,950 (£15,979,086); frozen and chilled meat £15,318,788 (£15,047,446); wool. £6,687,352 (£7,911,127); cheese, £5,865,684 (£5,926,973); gold, £678,408 (£978,698); hides and skins, £409,909 (£714,537); apples, £340,002 (£489,093); tallow £298,082 (£375,625); dried and preserved milk and cream, £296,957 (£258,084); sausage-casings, £227,154 (£301,975).

After a very considerable fall from £4,784,099 in 1937 to £1,421,630 in 1938, exports to the United States recovered in 1939 to £2,847,158, thus restoring the United States to its former position as second to the United Kingdom among the Dominion's export customers. Wool increased from £168,212 to £629,854, and sheep-skins from £532,228 to £912,304. Other prominent items in 1939 were as follows (1938 figures in parentheses): Sausage-casings, £232,830 (£217,662); rabbit-skins, £224,570 (£203,300); calf-skins, £192,369 (£123,425): gold, £304,437 (nil); and tallow, £104,427 (£67,303).

Exports to Australia in 1939 were valued at £2,256,007, an increase of £66,553 over the 1938 total. Comparative figures of the principal items in 1939 and 1938 (the latter in parentheses) were as follows: Wool, £530,220 (£766,123): gold, £646,548 (£322,339); fish, £155,903 (£169,740); cattle-hides, £111,852 (£159,024); timber. £132,725 (£153,503); grass- and clover-seeds, £72,543 (£74,148); onions, £70,057 (£19).

Canada took £963.,710 of New Zealand's exports in 1939 as compared with £1,127,124 in 1938. Values of the principal items for the two years (1938 figures in parentheses) were as follows: Wool, £406,211 (£432,757); sausage-casings, £232,064 (£218,685); butter, £3,500 (£167,615); calf-skins, £44,408 (£117,151); cattle-hides. £99,441 (£35,618).

Exports to France increased from £1,014,941 in 1938 to £1,579,176 in 1939, while Germany's total fell from £890,976 to £390,006. Wool predominates in New Zealand's exports to these countries, and was chiefly responsible for the changes in the totals. Exports of this commodity to France in 1939 were valued at £1,423,177 (£879,384 in 1938), and to Germany £257,101 (£657,850 in 1938). Other items in 1939 were as follows (1938 figures in parentheses)—France: Sheep-skins, £83,902 (£80,066); apples, £28,556 (£20,467). Germany: Apples, £58,190 (£33,389): cattle-hides, £16,713 (£53,360); tallow, £24,437 (£8,305).

There has been a heavy decline in exports to Japan during the last two years. In 1939 the total was £390,783, as compared with £592,689 in 1938 and £3,131,986 in 1937. Exports of wool fell from £478,152 in 1938 to £326,749 and casein from £56,254 to £24,926. Exports of live sheep rose from £18,627 to £23,024.

Belgium took a total of £874,620 in 1939, compared with £363,078 in 1938, wool increasing from £288,355 to £721,659.

Exports on a smaller scale in 1939 were as follows (1939 figures shown first, with those for 1938 in parentheses):—

British Countries.—Hong Kong: Butter, £18,971 (£19,916); fungus £2,534 (£4,294). India: Tallow, £91,734 (£92,016); butter, £33,021 (£27,283); wool, £9,518 (£4,483). Malaya: Dried and preserved milk and cream, £60,004 (£25,444); butter, £42,294 (£32,341). Union of South Africa; Peas, £7,217 (£4,078); hops, £1,225 (£2,373). British West Indies: Butter, £51,063 (£33,759). Fiji: Tea, £17,480 (£13,651); tinned meats. £14,861 (£12,890); films, £12,846 (£15,067); potatoes, £9,376 (£4,928); bags and sacks, £9,003 (£7,880); ordnance stores, £9,427 (nil): tractors and parts, £7,748 (nil); bacon and hams, £3,885 (£3,963). Gilbert and Ellice Islands: Tinned meats, £4,844 (£4,657). Nauru Island: Sugar, £1,983 (£1,638); tinned meats £1,907 (£1,162). Papua: Mining machinery, £3,227 (£1,901); tinned meats, £2,139 (£2,348). Tonga: Tinned meats, £5,187 (£7,628); films, £3,014 (£7,176); timber, £2,745 (£1,159); sugar, £1,630 (£2,593). Western Samoa: Timber, £16,160 (£18,094); tinned meats, £11,621 (£9,450): films, £6,292 (£8,426); sugar, £7,034 (£7,485).

Foreign Countries.—Bulgaria: Greasy wool £14,572 (£14,331). Czechoslovakia: Greasy wool, £20,127 (£24,665). Denmark: Wool, £35,875 (£43,797); cattle-hides, £9,521 (£17,135). Finland: Cattle-hides, £3,785 (£4,631). Greece: Greasy wool, £28,598 (£24,441). Italy: Greasy wool, £1,529 (£5,347). Netherlands: Greasy wool, £209,941 (£43,708); apples, £20,895 (£58,596); cattle-hides, £1,775 (£12,932). Portugal: Wool, £17,672 (£2,361). Poland: Greasy wool, £85,894 (£191,972). Sweden: Wool, £136,065 (£43,924); apples, £26,042 (£23,925); pears, £12,678, (£11,808). China: Wool, £54,693 (£3,329); butter, £8,302 (£21,879); dried and preserved mill: and cream, £4,301 (£6,088). French Indo-China: Butter, £5,268 (£3,751). Philippine Islands: Butter: £11,807 (£14,981). Thailand: Tallow, £3,660 (£1,158). Egypt: Greasy wool, £34,288 (£162,920). Argentina: Sheep, £3,563 (£4,340). Brazil: Apples, £9,350 (£38,929). Panama Canal Zone: Butter, £65,756 (£73,140). Uruguay: Sheep, £1,857 (£13,513). Hawaii: Butter, £40,124 (£48,406); frozen meat, £11,930 (£4,370). Society Islands: Tinned meats, £15,154 (£8,502); butter, £3,774 (£5,944); dried and preserved milk and cream, £5,301 (£4,350). Tutuila: Tinned meats, £8,033 (£7,625).

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 entrepot 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 77 per cent. of the total of such re-exports during the period 1934-38, while hides and skins account for a considerable proportion of the remainder. Butter and cheese formerly occupied an important place in this 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 1934-38 is shown. The figures are taken from the official trade statistics Hi the United Kingdom issued by the Board of Trade.

RE-EXPORTS OF NEW ZEALAND PRODUCE FROM THE UNITED KINGDOM.

Commodity.1934.1935.1936.1937.1938.
 £(Stg.)£(Stg.)£(Stg.)£(Stg.)£(Stg.)
Butter185,729427,887262,190463,283398,720
Cheese51,20150,71246,50741,65837,447
Casein2,9212,6481,7941,861334
Milk-powder, not sweetened12,91413,2797,1839,6496,658
Oleo-margarine, oleo-oil, and refined tallow3,2856,215579355569
Peas, not fresh11,3773,5501,3452,2581,420
Apples19,54231,19626,47122,15932,173
Pears17,11113,58514,0974,97013,652
Grass and clover seeds16,83018,5076,0958,3619,828
Beef, frozen5,2069,8128,41721,6794,582
Beef, tinned, canned, &c. (including tongues) and extracts and essences1,598633927423272
Mutton and lamb, frozen53,91354,48354,47059,64061,246
Meat, other kinds8,5219,4899,80510,42612,147
Sausage-casings23,6935,18956,60022,22038,358
Hides181,034205,168147,846135,484187,585
Sheep and lamb skins281,797369,655311,681387,278299,268
Rabbit-skins28,17140,39258,79060,53240,307
Kauri-gum7,6178,8098,42811,8687,317
Tallow40,79031,50735,54625,39321,127
Phormium-fibre1,6354992,1736632,182
Wool, raw; sheep and lambs' wool4,365,5702,555,8334,071,9955,012,5083,882,150
All other commodities33,97026,93831,21041,19040,727
Totals5,354,4253,885,9865,164,1496,343,8645,098,069

The above figures indicate the constitution of the United Kingdom's entrepot 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 207); 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, 1935-39.

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.1935.1936.1937.1938.1939.
* Prior to 1937 ships' stores are Included with various countries.
 £££££
United Kingdom38,921,56845,492,98950,705,59148,897,99046,689,198
      
British Possessions, Protectorates, Mandated Territories, &c.     
Europe—     
  Eire14,08610,80255760114
  Malta..35..103
 14,08610,83755770117
      
Asia—     
  Burma6189465841,3301,706
  Ceylon1,5281,4011,074362241
  Hong Kong11,24922,91727,18028,02824,458
  India60,956125,826135,730137,281145,548
  Malaya63,77171,38378,86964,080111,006
  Other212228595636
 138,334222,701243,496231,137282,995
      
Africa—     
  Union of South Africa27,50421,85529,55419,35760,095
  Other3983811,542755933
 27,90222,23631,09620,11261,028
      
America—     
  British West Indies53,96648,79854,94237,28052,850
  Canada656,9841,103,0081,678,4031,127,124963,710
  Other4,0771,0543,1834,518164
 715,0271,152,8601,736,5281,168,9221,016,724
      
Pacific—     
  Australia1,781,8111,843,4751,824,1832,189,4542,256,007
  Fiji86,191102,07695,21498,440143,098
  Gilbert and Ellice Islands8,42911,9844,2766,7115,990
  Nauru Island12,19118,0844,3544,7755,237
  Norfolk Island1,106337551340389
  Papua6,8164,2908,1775,1726,109
  Solomon Islands5766672,095641317
  Tonga19,10427,21540,13430,96023,228
  Western Samoa44,56752,54976,86766,97575,511
  Other8381,0669391,1843,320
 1,961,6292,061,7432,056,7902,404,6522,519,206
      
Foreign Countries and Possessions.     
Europe—£££££
  Belgium647,212618,356682,913363,078874,620
  Bulgaria3,54717,8109,44414,33114,572
  Czechoslovakia12,96920,06458,14126,33020,129
  Denmark12,09811,21938,05662,72846,726
  Finland9,9771,2127,8226,1295,111
  France484,6101,646,1681,014,9411,015,4561,579,176
  Germany165,304272,481919,148890,976390,006
  Greece9,64945,90918,37231,80335,119
  Italy21,0921,76710,3226,5781,565
  Netherlands79,615112,539128,474152,373266,278
  Poland103,321173,159166,255194,16486,712
  Portugal..2,2039,5653,58517,672
  Spain24,28315,15813,9257,730..
  Sweden47,14264,93692,76584,549176,713
  Switzerland2,8921,3607462,7912,194
  Yugoslavia146,6977,7095,7821,014
  Other1,1091,3778,6376,6293,829
 1,624,8343,012,4153,187,2352,875,0123,521,436
      
Asia—     
  China7,71832,85482,06834,56069,639
  French Indo-China..5821,5953,7555,697
  Japan432,4951,554,8373,131,986592,689390,783
  Netherlands East Indies2,2351,8944,0537,6687,823
  Philippine Islands3,9455,9839,30416,06612,512
  Thailand24258131,2555,725
  Other..1503,1008131
 446,4171,596,3253,232,919656,001492,310
      
Africa—     
  Egypt7,68718,90623,687163,66934,356
  Other17534291,290700
 7,86218,94023,716164,95935,056
      
America—     
  Argentina3,40111,79750,33117,6773,593
  Brazil11,5175,93712,50138,9379,361
  Chile762,5201,36911445
  Ecuador2811,1611504474
  Panama Canal Zone78,17998,047108,50374,31367,027
  United States of America2,468,0662,877,7524,784,0991,421,6302,847,158
  Uruguay14,26836,080126,91013,9041,865
  Other7091139,4793,1892,098
 2,576,4973,033,4075,093,3421,570,2112,931,151
      
Pacific—     
  Hawaii41,52067,33269,20854,68055,822
  New Caledonia3,9061,48171811,439682
  Society Islands41,91741,74053,73724,01629,364
  Tuamotu Archipelago1,1821,299......
  Tutuila14,52415,24116,98415,17614,742
  Other1,1763942633052
 104,225127,487140,673105,641100,662
      
Ships' Stores**261,436281,576399,433

Nearly 88 per cent. of the total exports from New Zealand went to British countries in 1939. The United States, France, Belgium, 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.1935.1936.1937.1938.1939.
* Prior to 1937 ships' stores are included in various countries.
Wool.
 lb.lb.lb.lb.lb.
United Kingdom149,895,217183,666,855149,590,128172,729,452154,959,078
India57,068159,88857,70993,790186,503
Union of South Africa237,10299,914173,48020,10933,127
Canada6,140,99213,696,52512,442,4568,318,6138,477,324
Australia8,213,5549,232,4655,992,28319,666,12814,644,206
Belgium18,545,08212,798,0239,785,8936,746,29917,974,138
Bulgaria104,028431,736131,311337,751341,468
Czechoslovakia311,611390,351812,665541,671546,713
Denmark141,04558,012362,061934,272812,009
France11,815,41537,360,07714,997,74521,942,72337,574,442
Germany2,741,2833,519,95810,453,55514,533,1265,545,100
Greece257,3011,255,119245,093713,222843,455
Italy311,05137,36790,754102,04635,845
Netherlands447,757950,041732,750988,2675,134,562
Poland3,567,0494,578,5772,570,5914,376,7892,007,928
Portugal..68,108107,79247,412366,962
Spain136,840284,444180,202167,971..
Sweden1,164,5751,162,8171,344,944923,1253,224,495
Yugoslavia..193,962109,11833,94022,018
China..324,705656,29072,6111,231,558
Japan8,519,28326,995,79838,220,61310,584,0318,312,591
Egypt205,076591,859408,7553,344,126634,910
United States of America9,816,04616,516,75432,790,5563,975,07414,428,149
Other countries33,90836,04795,40990,68555,132
     Totals222,661,403314,409,402282,352,163271,283,233277,391,713
      
Frozen and Chilled Meat.
 Cwt.Cwt.Cwt.Cwt.Cwt.
United Kingdom5,154,7575,105,4495,393,0495,353,7145,876,242
Canada1,4883664003,8199,963
Germany......4,038..
Japan6088,7056,2401,454..
United States of America43,9051293,8656,16012,501
Hawaii2,6592,1934,8571,2884,653
Pacific islands (other than Hawaii)1,8801,8311,6241,3091,447
Other countries (including ships' stores).1,217*1,131*8771,5261,445
    Totals5,206,5145,119,8045,410,9125,373,3085,906,251
      
Butter.
 Cwt.Cwt.Cwt.Cwt.Cwt.
United Kingdom2,696,8322,721,3422,903,0052,526,9812,391,512
Hong Kong8172,4792,6622,9572,987
India2,0502,6663,4644,2874,961
Malaya3,4745,2393,6835,0036,563
Union of South Africa........5,600
British West Indies10,2008,4109,0745,3707,765
Canada1,9182,41320829,052500
Germany....10,00010,000..
China1,0741,4054,1253,4061,351
Japan85814,37422
Philippine Islands7749601,1752,1971,775
Panama Canal Zone15,22617,41819,16912,1189,925
United States of America46,41920,2812,0082,7871,697
Hawaii7,51010,65910,3667,7175,976
Society Islands1,4581,4931,090667397
Other countries (including ships' stores).1,461*1,299*1,6822,0052,286
    Totals2,789,2982,796,1452,976,0852,614,5492,443,297
      
Cheese.
 Cwt.Cwt.Cwt.Cwt.Cwt.
United Kingdom1,723,1971,654,8271,644,2411,608,4371,676,320
Hong Kong2652262002683
British West Indies1426812124758
Canada1,8111,0101,3891,038145
Australia177283245183168
Fiji205301300243325
China219355516191..
Panama Canal Zone1,05791517....
Other countries (including ships' stores).479*221*131158158
    Totals1,727,5521,658,2061,647,1601,610,5231,677,257
      
Milk (Dried, Preserved, and Condensed.)
 lb.lb.lb.lb.lb.
United Kingdom17,146,42720,059,78220,036,82817,886,64920,477,384
Ceylon20,6708,84820,72016,80010,080
Hong Kong2,24018,22038,20579,75841,610
India299,748266,630139,228379,500315,766
Malaya2,702,9842,537,9343,046,6081,501,6873,104,302
British West Indies55,55730,55634,24546,12818,632
Canada45,36014,632......
Australia37,43239,25322,90845,17088,156
Fiji25,88224,56012,4926,3047,195
Western Samoa13,50815,58233,30416,29825,191
China84,37477,63374,162224,036119,516
Japan29,14083,405404,65611,200..
Netherlands East Indies18,3465,48014,49814,1533,360
Philippine Islands2242,800126,00019,040..
Panama Canal Zone33,60080,640103,60068,42078,400
Hawaii..193,90256,958..474
Society Islands221,363242,653498,063170,976224,264
Other countries (including ships' stores).46,225*39,844*51,59350,55931,374
    Totals20,783,08023,742,35424,714,06820,536,67824,545,704
      
Tallow.
 Ton.Ton.Ton.Ton.Ton.
United Kingdom9,70115,64216,68622,13919,741
India1,0933,0013,7254,2574,815
Canada18843819940555
Australia14947927036727
Fiji73137136118212
Belgium1591232133336
Germany..395684851,740
Netherlands3624958122411
Japan3562,2032,422243..
Thailand....3573254
United States of America13,4803,640480176566
Other countries186215827560480
    Totals25,27726,09525,94029,61329,137
      
Hides (Cattle and Horse).
 Number.Number.Number.Number.Number.
United Kingdom145,613126,834113,404126,81695,497
India..2,100..4,6306,367
Canada59,82336,867105,26838,14193,697
Australia118,12287,68093,963133,01291,813
Belgium19,83520,44829,13938,48570,406
Denmark5,7818,1637,49423,78314,087
Finland13,9931,3006,1826,4523,792
France10,89719,96923,58917,30221,674
Germany70,95159,39039,38962,10818,638
Italy12,091..3,530....
Netherlands6,44511,4368,0791,7,8603,820
Sweden3,7262,1362,6933,300854
Yugoslavia..7691486,36621
Japan10,16815,97414,1061,3323,833
United States of America43,93136,98456,27133,317102,282
Other countries2,6752,5615,3135,1913,536
    Totals524,051432,611508,628518,095530,317
      
Calf-skins.
 Number.Number.Number.Number.Number.
United Kingdom33,39927,43772,56352,48895,183
Canada373,262575,989199,619540,578191,517
Australia178,80666,38762,46135,90625,467
Belgium101,1581,00045,810..30,200
France9,887..5044,004..
Germany30,85838,22252,37536,685..
Greece....5,718....
Netherlands205,442139,332123,20417,41026,869
Egypt......5,000..
United States of America330,999327,455595,428554,922733,946
Other countries2,4472,025270....
    Totals1,266,2581,177,8471,162,9521,246,9931,163,182
      
Opossum-skins.
 Number.Number.Number.Number.Number.
United Kingdom145,557199,97758,30952,59246,429
United States of America5004,80820,173..36,528
Other countries8215589250013
    Totals146,878204,84079,37453,09282,970
      
Rabbit-skins.
 Number.Number.Number.Number.Number.
United Kingdom2,003,5413,533,9843,435,8321,483,232456,263
Canada29,4609,57010,9379,19829,940
Australia14,93729,19026,608527,6881,409,375
Belgium20,526....185,465201,971
France124,302213,322196,829119,47888,356
Germany......33,952..
Japan9,1302,640......
Netherlands East Indies......51,07218,439
United States of America11,332,42913,140,2258,403,2237,857,9278,991,950
Other countries2,420..1,921....
    Totals13,536,74516,928,93112,075,35010,268,01211,190,294
      
Sheep-skins (with Wool).
 Number.Number.Number.Number.Number.
United Kingdom1,107,690743,678804,631623,315500,433
Canada179,587186,709199,653138,963178,621
Australia2,1966,5137,75762,58918,615
Belgium34,31050,49321,29367,41611,886
France747,128320,85197,012481,226604,145
Germany21,43238,085112,389115,65465,444
Italy17,359532......
Netherlands11218,188..97,32622,622
Spain96,85814,783......
Japan11,37519,59022,19057,803..
United States of America176,232380,506478,057175,090531,506
Other countries10,9723391,0004,584..
    Totals2,405,2511,780,3321,743,9821,824,0261,932,672
      
Sheep-skins (without Wool).
 Number.Number.Number.Number.Number.
United Kingdom3,745,6692,715,4382,639,5494,562,7252,404,083
Canada163,22562,76698,580119,91891,318
Australia293,745143,05452,786463,157270,063
Belgium101,832358,16030,120186,267624,451
France125,91142,89316,440102,48739,565
Germany25,61810,04429,2396,3124,318
Netherlands30,0123,6005,60051,14412,610
Sweden15,6247,2001,272....
Japan210,546270,172229,65560,77978,288
United States of America7,050,3537,232,8907,649,9866,800,7779,698,868
Other countries2,7581,0325,832..300
    Totals11,765,29310,847,24910,759,05912,353,56613,223,864
      
Sausage-casings.
 lb.lb.lb.lb.lb.
United Kingdom1,140,6871,694,0711,139,3641,720,8491,728,054
Canada1,143,6201,089,7391,359,0981,143,7771,362,928
Australia301,380292,221215,146134,781149,666
France29,397........
Germany32,01012231,794..121
United States of America1,563,3351,335,0071,497,6151,086,6341,330,021
Other countries9584,9101,2108401,400
    Totals4,211,3874,416,0704,244,2274,085,8814,572,190
      
Peas.
 Cental.Cental.Cental.Cental.Cental.
United Kingdom100,669114,15387,264112,94698,763
Union of South Africa5,4935,5295,1414,6806,488
Canada3,3708,5136,010901,135
Australia26,01733,77837,60034,59847,354
Belgium......7,8614,754
Germany......1,0771,148
United States of America10,1485,4218,0602,7064,113
Other countries1,43513212,084..
    Totals147,132167,407144,096166,042163,755
      
Apples (Fresh).
 lb.lb.lb.lb.lb.
United Kingdom31,129,77339,494,75728,889,35039,167,46024,814,520
Hong Kong4,00091,68036,640....
India12,08068,3304,000157,880..
Malaya4,00026,00040,04094,760100,800
British West Indies..20,000..80,000..
Canada1,895,0801,005,4002,855,2003,847,0402,354,520
Australia23,5206,440120240..
Fiji88,257116,600136,184130,874136,132
Western Samoa13,4899,17521,58319,41213,909
Belgium1,053,000........
France......1,637,4002,076,720
Germany..1,367,640985,1202,671,0804,232,120
Netherlands882,3601,220,0001,924,8404,687,6001,519,640
Sweden133,92037,160..1,914,0801,902,840
China6,20058,00043,200....
Netherlands East Indies4,0008,00070,48024,40097,400
Philippine Islands..38,00046,12054,80044,000
Argentina..715,360......
Brazil921,320485,3601,000,0003,114,360680,000
United States of America814,800........
Uruguay783,240........
Other countries (including ships' stores)24,156*41,549*31,89442,68510,673
    Totals37,793,19544,809,45136,086,77157,644,07137,983,274
      
Seeds (Grass and Clover).
 Cwt.Cwt.Cwt.Cwt.Cwt.
United Kingdom41,63725,75413,73612,56312,140
Union of South Africa392514702666669
Canada1,3992,9886,0731,5501,564
Australia20,72532,40923,63021,42519,526
Denmark64465422100151
Netherlands1,1771,548466460445
United States of America6,28615,86512,8208,58011,486
Other countries65634293266158
    Totals71,74580,17758,18245,61046,139
      
Gold.
 Oz.Oz.Oz.Oz.Oz.
United Kingdom135,369135,711130,750114,03975,689
Australia32,89433,10742,09739,01769,318
United States of America4,51696....31,478
Other countries......12
    Totals172,779168,914172,847153,057176,487
      
Silver.
 Oz.Oz.Oz.Oz.Oz.
United Kingdom362,611453,610417,402357,500309,952
Australia26,65224,97922,23212,5845,574
    Totals389,263478,589439,634370,084315,526
      
Kauri-gum.
 Ton.Ton.Ton.Ton.Ton.
United Kingdom1,8272,0021,8081,5511,405
Canada62174297236208
Australia1452461379773
Belgium157153..
France11496986970
Germany6995413426
Italy24....30..
Netherlands1125352377
Sweden3142462621
Japan2042657631
United States of America568438684158405
Other countries..20..1..
    Totals2,8723,2373,2262,3042,316
      
Phormium Fibre.
 Ton.Ton.Ton.Ton.Ton.
United Kingdom1,1632,3632,1122,126350
Canada6745962026
Australia2,4192,9652,7881,7031,038
Denmark......71..
Germany1022779366114
United State of America..504651..
Other countries257727223
    Totals3,6615,7075,1934,4091,551
      
Timber (Sawn and Hewn).
 Sup. ft.Sup. ft.Sup. ft.Sup. ft.Sup. ft.
United Kingdom475,834379,173464,75488,097136,932
Australia37,608,96725,709,21516,087,04713,127,38711,824,388
Fiji44,93750,63835,27337,82820,002
Tonga82,441126,48762,79653,045159,072
Western Samoa1,407,288758,800978,3561,187,3611,067,901
Other countries22,55319,16931,27647,8447,907
Ships' stores**56,82652,198118,478
    Totals39,642,02027,043,48217,716,32814,593,76013,334,680

EXPORTS FOR YEARS ENDED 30th JUNE.

As indicated elsewhere in this section (pages 200-201) farm products account for an extremely high proportion of exports from New Zealand (95.6 per cent. in the calendar year 1939). 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, arid 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 in normal times 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.1935-36.1936-37.1937-38.1938-39.1939-40.
Buttercwt.2,786,6412,991,3572,917,7462,461,8622,319,875
Caseincwt.77,09580,99257,61328,54342,618
Cheesecwt.1,620,3941,662,2181,690,8371,605,1621,749,005
Fishcwt.61,88853,21649,72245,22438,221
Honeylb.1,031,287536,8371,126,620826,8981,230,393
Beef, chilledcwt.202,235262,076370,041389,46149,059
Beef, frozencwt.550,734432,020588,583642,301913,730
Lamb, frozen..2,395,8242,692,0712,804,8852,591,7423,152,169
Mutton, frozen..888,266798,907988,2701,028,8861,578,318
Pork, frozencwt.578,166591,299586,025514,161492,272
Veal, frozencwt.115,008127,267153,427139,565167,876
Meats, tinnedcwt.96,34377,83856,88561,02278,051
Sausage-casingslb.4,514,7304,399,3953,956,9244,382,1425,391,238
Milk, preservedlb.7,211,6097,106,2677,387,1935,826,4967,253,574
Milk, driedlb.17,728,55814,474,88115,460,82616,829,61217,496,681
Apples, freshlb.44,737,42536,555,64444,792,03850,426,40424,116,844
Pears, freshlb.4,532,6541,640,2962,310,2355,819,2001,040
PeasCental167,421162,109180,642161,800165,675
Hopslb.323,514290,810246,199230,947169,908
Potatoeston1,02613,15313,1575,4281,185
Calf-skinsNo.1,264,9921,190,7341,180,5871,083,4851,067,241
Hides, cattleNo.527,685436,199531,063541,380448,168
Rabbit-skinsNo.17,866,00114,450,99710,934,85911,497,31410,831,045
Opossum-skinsNo.156,147201,043121,2364,132108,878
Sheep-skins, with woolNo.2,045,3731,755,2761,155,4182,010,0682,038,144
Sheep-skins, without woolNo.10,531,86211,813,4309,307,51714,018,15112,552,516
Woolbale918,471846,374761,248900,596806,098
Phormium fibreton4,7715,8054,5702,947483
Seeds, grass and clovercwt.53,84780,81245,80746,22340,946
Tallowton19,94129,56728,58728,33831,712
Coalton47,43339,42342,02156,21782,760
Kauri-gumton2,7103,8592,0212,5232,406
Goldoz.177,167165,825164,575170,875185,230
Silveroz.428,075465,271371,856369,848370,002
Timber, sawnsup. ft.38,059,90818,424,23216,236,55012,933,72415,474,903

EXPORTS OF NEW ZEALAND PRODUCE (VALUES) FOR YEARS ENDED 30TH JUNE.

Commodity.1935-36.1936-37.1937-38.1938-39.1939-40.
 £££££
Butter14,789,64916,434,27018,284,60315,813,14416,059,081
Casein179,180233,635168,40256,06988,013
Cheese4,509,1745,282,2596,069,0265,726,5236,776,240
Fish163,181173,869183,192164,093148,129
Honey30,22514,76331,57221,72338,998
Beef, chilled335,186426,839694,788757,84495,976
Beef, frozen643,546540,413831,3131,078,8071,672,945
Lamb, frozen7,642,8138,956,0639,759,6118,768,23610,821,482
Mutton, frozen1,634,4571,500,3761,975,8671,812,6242,716,865
Pork, frozen1,507,5531,630,6171,885,2671,685,6751,733,727
Veal, frozen154,401192,140298,813265,485364,909
Meats, tinned281,610281,450216,452274,499399,125
Sausage-casings695,811750,001730,148672,700941,338
Milk, preserved117,005120,169125,63899,242131,951
Milk, dried332,217193,993218,740237,272281,763
Apples, fresh551,305457,619580,571653,383231,819
Pears, fresh55,56920,42328,63578,46024
Peas119,313121,668129,280144,071178,415
Hops19,99716,75415,11311,5259,146
Potatoes7,53988,975112,70326,7569,641
Calf-skins273,440349,378329,799238,737273,579
Hides, cattle487,768511,810617,666475,227493,560
Rabbit-skins562,710683,034503,393244,191285,844
Opossum-skins52,28177,00438,67870527,881
Sheep-skins, with wool452,716585,452445,383386,470544,517
Sheep-skins, without wool1,098,3151,638,369988,5681,045,3111,397,501
Wool12,762,49818,770,64312,325,75512,899,39714,663,644
Phormium-fibre85,244128,03199,28647,0017,797
Seeds, grass and clover192,941249,297219,736240,945324,140
Tallow539,210709,888577,080453,490589,782
Coal62,45051,62158,98172,441139,572
Kauri-gum78,657145,321103,104112,283121,226
Gold1,485,0771,378,6841,368,4901,505,8181,854,663
Silver59,15951,09340,21438,29745,734
Leather7,0245,9789,4125,4091,611
Timber, sawn350,031203,346194,687154,974164,596
Other New Zealand produce869,2631,163,4911,111,9171,115,2711,525,765
Totals53,188,51564,138,73661,371,88357,384,09865,160,999

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, spirits, and films.

There is a genuine entrepot 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.

 £ £ £
1919603,5411926929,7411933597,168
1920813,0721927925,1211934571,554
19211,213,0021928910,0161935486,648
19221,026,8011929754,0501936488,135
1923567,8851930731,1111937505322
1924588,3951931631,5541938575,657
1925722,0161932633,5321939601,286

Re-exports of merchandise in 1939 were equal to 1.04 per cent. of total exports of merchandise for the year and to 1.22 per cent. of imports.

The destination of this re-export trade is shown in the following table:—

Country.1935.1936.1937.1938.1939.
Allocated to countries
 £££££
United Kingdom110,192127,15087,799110,24438,400
Canada3,9334,9714,3693,7701,074
Australia244,996223,061131,588132,11996,381
Fiji34,43028,11732,54047,41671,906
Tonga2,8775,33311,56312,3745,968
Western Samoa11,82012,13715,02117,06520,408
United States of America47,57946,46412,29216,93619,245
Society Islands3,8402,9733,3561,6941,523
Other countries26,98137,92929,82624,98720,769
Ships' stores**176,968209,052325,612
Totals (excluding specie)486,648488,135505,322575,657601,286

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 average export values of any particular year, and applying to them the quantities exported for any other year, it is possible to obtain a reliable indication of changes in the volume of exports. A computation on the above basis is particularly applicable in the case of New Zealand, as approximately 97 per cent. of the Dominion's exports are treated quantitatively.

Comparisons of movement in the volume of exports are usually made over short periods in New Zealand, and therefore a computation of value of exports on the basis of values ruling in the previous year is of interest not only as indicating the effect of price-changes from year to year, but also in that it gives a reliable indication of year-to-year changes in the volume of exports. By establishing the relationship of the various years with their immediate predecessors it is possible to obtain link relatives, and by the application of these link relatives to a given base year or period a series of chain relatives (index numbers) permitting longer term comparisons are obtained. Index numbers on the base 1926 = 100 and computed by the method indicated above are given in the next table.

Year.Total Exports (New Zealand Produce).Effect of Price-changes.Index Numbers of Volume of Exports.
Recorded Value.Value at Prices of Previous Year.Gain.Loss.
 ££££(1926=100)
192644,339,18354,696,306..10,357,123100
192747,571,23348,094,196..522,963109
192854,660,36549,091,4665,568,899..112
192954,176,01356,465,248..2,289,235116
193044,209,40655,655,835..11,446,429119
193134,319,24444,630,116..10,310,872120
193234,976,38738,128,569..3,152,182133
193340,408,75140,999,141..590,390156
193446,771,29339,039,1927,732,101..151
193546,051,73345,694,497357,236..147
193656,263,80549,172,2617,091,544..157
193766,208,05755,966,79110,241,266..157
193857,800,62662,933,946..5,133,320149
193957,448,03058,702,703..1,254,673151

As mentioned previously, the comparison of each year with the preceding year brings out the gain 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, 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—1938-39 and 1939—40—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, 1939.Twelve Months ended 30th June, 1940.Twelve Months ended 30th June, 1914.
Recorded Value.Value at Prices of 1913-14.Recorded Value.Value at Prices of 1913-14.
 £££££
Butter2,197,77115,813,14413,305,19016,059,08112,537,818
Cheese2,317,9705,726,5234,759,6326,776,2405,081,215
Beef, frozen (and chilled)561,8171,836,6511,476,7951,768,9211,378,072
Lamb, frozen2,545,1758,768,2365,661,02610,821,4826,885,141
Mutton, frozen1,880,5831,812,6241,577,5092,716,8652,420,002
Pork, frozen5,8431,685,6751,193,5941,733,7271,142,780
Meat, preserved122,078274,499216,743399,125277,227
Sausage-casings132,038672,700132,941941,338163,554
Apples12,160653,383407,544231,819194,816
Hides319,995475,227872,185493,560722,018
Rabbit-skins90,350244,191151,627285,844142,840
Sheep-skins (without wool)545,0371,045,3111,052,7491,396,961942,681
Wool8,262,15312,899,39712,835,50914,663,64411,443,856
Phormium fibre576,09547,00170,7177,79711,590
Tallow711,858453,490813,801589,782910,695
Kauri-gum790,338112,283205,340121,226195,895
Gold1,485,9371,505,818662,7171,854,663718,391
Timber, sawn372,092154,97465,212164,59678,024
Totals22,929,29054,181,12745,460,89161,026,67145,246,615
Other N.Z. produce1,383,4543,202,971..4,134,328..
Grand totals24,312,74457,384,098..65,160,999..

Exports during 1939-40 of the commodities dealt with realized £15,780,056 more than they would have at prices ruling in 1913-14. In 1938-39 the corresponding gain was £8,720,236, and in 1937-38, £11,583,472. 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 1939-40 being 0.5 per cent. less than in 1938-39, and 97 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 and other annexed Pacific Islands 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 these islands 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.Year.Exports.
 £ £
193078,512193553,109
193159,202193666,857
193256,599193787,658
193356,254193864,456
193454,261193967,968

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 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. This arrangement is not universally acceptable to overseas manufacturers, but for various reasons no change in the system has yet been found practicable.

The issue of import licenses to the end of 1940 was 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 nearly £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, 1939. 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 was that many commodities on the completely prohibited list were for some time 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 were again based on the 1938 level, and, owing to the prospective additional call on sterling funds for loan repayments and war requirements, they were subject to even greater restriction than before. Although a wide range of goods, generally materials for industry and other essential commodities, carried no restriction other than a confinement to the 1938 level, and many other goods were cut only when from a source other than the United Kingdom, the restriction generally was severe. The policy of maintaining a maximum volume of trade with the United Kingdom was emphasized, but it was recognized that owing to the uncertainties of war it may not always be possible to obtain imports from that source, in which case it was decided to give preference, as far as practicable, to some other British country.

Although some minor concessions were made for the fourth licensing period (duly to December, 1940), increased costs of essential imports made impossible any general relaxation of the restrictions. More than 300 items and sub-items, including motor-vehicles, of the some 780 on the Tariff list were completely banned. Virtually all imports of foreign origin were prohibited. The practice adopted in the second period of giving consideration to importers not obliged to call on sterling was discontinued, except for the importation of plant for the establishment of a business in New Zealand. Among the minor increases were carpets, linoleum, gum-boots, hot water bags, rubber tires, women's stockings, and certain classes of chinaware and hardware.

Import licenses for the fifth period, in order to give importers a longer time in which to make their arrangements, were made to cover the full year 1941 instead of a six-monthly period as hitherto. Increases were allowed for a few items, including parts of motor-vehicles, motor engines, rubber tires for motor-vehicles, gum boots, and chinaware for table use. Some provision was also made for imports of chassis for motor-trucks. On the other hand, the restrictions were further tightened for a number of items, and total prohibition was applied to wooden matches, cotton-wool, women's cotton stockings, and bicycle tires and tubes.

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.
 ££££££
19306,066,5421,889,67336,121,373259,0952,97144,339,654
19314,453,2121,437,49520,460,797144,2502,39726,498,151
19324,180,2841,234,75419,072,507156,7521,70924,646,006
19334,016,8421,157,53220,257,535147,4032,05425,581,366
19344,510,4281,377,41025,241,859207,1312,72431,339,552
19355,038,7191,564,16329,497,032214,8432,51036,317,267
19365,472,1121,691,79736,848,951241,9574,06944,258,886
19376,701,2991,953,12047,203,577299,1493,55056,160,695
19387,132,6592,243,14245,808,987233,0574,34455,422,189
19396,516,9902,450,28840,171,398233,33315,17449,387,183

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 1939 are classified in the following table on the same basis as that used in the case of exports on page 203. The grouping by countries is on the basis of country of origin.

IMPORTS, 1939.

United Kingdom.Other British Countries.United States of America.Other Foreign Countries.Total Merchandise.
* At face value.
 £££££
Grain1,839556,0283,86343,699605,429
Milled products50,123194,344329230245,026
Fish42,382103,8553,99762,148212,382
Meat (including poultry and game)1102,36273142,793
Butter, cheese, and eggs268187..152607
Fruits, fresh and dried..674,674120,03950,900845,613
Preserved fruits and vegetables, fruit-pulp, jams, &c.10,750195,7816,3364,122216,989
Live animals for food..........
Sugar561184,787..595,568780,916
Tea15877,02293,4128,80,458
Alcoholic beverages493,60860,67382106,662661,025
Tobacco387,35481,700565,1631,4531,035,670
Coal3,791106,094....109,885
Ores, concentrates, and scrap1,3092,781659905,145
Iron and steel—     
  Pig, ingots, &c.29,04635,852....64,898
  Bar, rod, plate, sheet, &c.1,363,300590,48325,1446,5881,985,515
  Other manufactures of iron and steel2,259,346796,659257,414131,2803,444,699
Agricultural implements and machinery70,38459,29795,78313,703239,167
Electrical machinery and apparatus1,960,480370,347280,663204,0412,815,531
Other machinery2,083,585593,5661,314,857307,9694,304,977
Motor-cars and parts thereof2,911,6762,021,526404,97611,0405,349,218
Other metals and metal manufactures615,360348,97889,976122,1641,126,478
Cotton, raw......624624
Flax, hemp, and raw jute (including tow)3964,933..32,26937,598
Wool, raw..4,838....4,838
Yarns and threads366,812146,1001,09613,636527,644
Cotton piece-goods1,468,19828,92016,378251,4741,764,970
Woollen piece-goods740,4422,4656012,980755,947
Other piece-goods574,519209,04649,947523,5531,357,065
Other textiles972,853543,17345,308153,7251,715,059
Apparel863,867174,08932,173289,9221,360,051
Footwear247,970218,06511,80331,782509,620
Chemicals, drugs, dyes, &c.1,019,100507,105157,876184,5241,868,605
Fertilizers90,164302,105..348,876741,145
Earthenware (including bricks, glass, &c.)449,53391,38531,52496,839669,281
Wood, timber, and manufactures thereof (including wood-pulp)21,854598,156104,724139,828864,562
Newsprint86,123359,828..1,735447,686
Paper and cardboard, &c.662,468346,412163,342258,1551,430,377
Seeds and nuts for expressing oil therefrom..1,143..141,157
Animal and vegetable oils, fats, greases, and waxes126,44068,8305,63646,971247,877
Oils—Petroleum, crude and refined69,773293,223627,8782,156,0633,146,937
Hides, skins, and furs (undressed)2,10126,18191,00327,016146,301
Leather and manufactures thereof (except clothing and footwear)125,55873,02988,05411,893298,534
Rubber, raw1,11050,419..5,94157,470
Gold and silver bullion13,1801,0209522215,174
Other merchandise2,946,1241,599,7971,066,697873,6226,486,240
Total merchandise23,133,87213,512,2585,613,1547,127,89949,387,183
Gold and silver coin*23,605......23,605
Other coin*1,759......1,759

Since 1914 the statistics of both imports and exports have been classified according to the nature of the commodity, the items being assembled in well-defined classes as shown in the following table, covering the imports for the year 1939:—

No.Class.Value in 1939.
* At face value.
  £
IFoodstuffs of animal origin (excluding live animals)268,362
IIFoodstuffs of vegetable origin, and common salt3,504,532
IIIBeverages (non-alcoholic) and substances used in making up the same1,023,707
IVSpirits and alcoholic liquors715,113
VTobacco and preparations thereof1,035,670
VILive animals53,712
VIIAnimal substances (mainly unmanufactured), not being foodstuffs162,851
VIIIVegetable substances and non-manufactured fibres854,880
IXAApparel2,186,369
IXBTextiles5,047,286
IXCManufactured fibres557,669
XOils, fats, and waxes3,549,151
XIPaints and varnishes393,856
XIIStones and minerals used industrially124,186
XIVAMetal, unmanufactured, partly manufactured, and ores737,378
XIVBMetal manufactures, other than machinery and machines6,490,203
XVMachinery and machines6,651,150
XVIAIndiarubber and manufactures thereof (not including tires)264,795
XVIBLeather and manufactures thereof, including substitutes298,534
XVIIATimber641,598
XVIIBWood, cane, and wicker manufactures191,142
XVIIIEarthenware, china, glass, stoneware, cement, and cement materials855,145
XIXAPaper1,502,456
XIXBStationery1,066,075
XXJewellery, time-pieces, and fancy goods566,995
XXIOptical, surgical, and scientific instruments744,003
XXIIADrugs, chemicals, and druggists' wares1,775,963
XXIIBManures741,145
XXIIIAVehicles5,691,774
XXIIIBMiscellaneous1,691,483
 Total merchandise49,387,183
XIIISpecie*25,364

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 cases the whole import has been assessed according to the principal use of the article or commodity in New Zealand.

Class of Merchandise.1935.1936.1937.1938.1939.
Values.
Producers' materials—£££££
Building and construction2,377,1263,032,9303,877,7924,140,9123,509,788
Farm868,0871,049,0951,345,9511,212,7361,332,237
Manufacturing—     
  Food1,535,7261,541,4581,995,7252,154,4171,995,760
  Beverages77,37960,64380,95557,46428,940
  Tobacco197,933227,356247,336324,222550,324
  Textiles (apparel or household goods)3,933,0154,607,0705,334,8203,958,2224,394,355
  Other5,768,2746,789,6638,343,0608,158,7037,841,546
Fuels and lubricants1,895,1672,535,2342,899,2663,092,2823,289,754
Auxiliary aids to production888,305919,1731,011,919992,1041,081,266
Producers' equipment—     
  Farm899,4561,245,0021,693,0881,609,0831,159,171
  Commerce and industry2,807,2154,114,5295,532,3336,263,6585,568,248
Transport equipment—     
  Railway285,320320,071461,1081,137,2721,383,994
  Road4,531,6925,949,3657,633,7967,040,5095,595,957
  Other185,38533,989132,720205,322113,695
Consumers' goods—     
  Food1,423,3811,515,1631,954,4332,145,1101,688,760
  Beverages1,291,2451,498,0501,662,6011,651,9281,614,256
  Tobacco571,451651,971775,597823,555557,346
  Clothing and accessories2,242,7412,554,7853,633,5423,071,6391,869,575
  Household equipment1,806,0612,293,7403,317,0703,045,7652,112,350
  Other2,678,1433,215,5334,021,5174,027,4503,696,755
Unclassified54,165104,066206,066309,8363,106
    Totals, merchandise imports30,317,26744,258,88656,160,69555,422,18949,387,183

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.1935.1936.1937.1938.1939.
Percentage of Total Merchandise Imports..
Producers' materials—Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
Building and construction6.546.856.917.477.10
Farm2.392.372.402.192.70
Manufacturing—     
  Food4.233.483.553.894.04
  Beverages0.210.140.140.100.06
  Tobacco0.550.510.440.591.11
  Textiles (apparel or household goods)10.8310.419.507.148.90
  Other15.8815.3414.8614.7215.88
Fuels and lubricants5.225.735.165.586.66
Auxiliary aids to production2.452.081.801.802.19
Producers' equipment—     
  Farm2.482.813.022.902.35
  Commerce and industry7.739.309.8511.3011.27
Transport equipment—     
  Railway0.790.720.822.052.80
  Road12.4813.4413.5912.7011.33
  Other0.510.080.240.370.23
Consumers' goods—     
  Food3.923.423.483.873.42
  Beverages3.563.392.962.983.27
  Tobacco1.571.471.381.491.13
  Clothing and accessories6.175.776.475.543.79
  Household equipment4.975.185.905.504.28
  Other7.377.277.167.267.48
Unclassified0.150.240.370.560.01
Totals, merchandise imports100.00100.00100.00100.00100.00

In the next table particulars are given of New Zealand's import trade for the years 1935-39 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.

1935.1936.1937.1938.1939.
Producers' materials—£££££
  Crude1,776,8471,831,1632,732,8052,827,0522,869,358
  Simply transformed4,513,4065,465,7136,813,1886,834,7876,515,985
  More elaborately transformed8,467,28710,011,33911,679,64610,344,83710,267,607
Consumers' goods—     
  Crude1,422,6121,583,7531,823,9231,892,9201,792,726
  Simply transformed183,667206,050248,466264,315157,926
  More elaborately transformed8,406,7439,939,43913,292,37112,608,2128,985,249
Total merchandise imports—     
  Crude3,652,9513,946,0835,066,4235,465,5555,441,013
  Simply transformed6,602,7218,177,89210,009,66710,315,2999,756,241
  More elaborately transformed26,061,59532,134,91141,084,60539,641,33534,189,929
    Totals, all merchandise imports36,317,26744,258,88656,160,69555,422,18949,387,183

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 50 per cent., and since then there has been a progressive decline to 46.8 per cent. in 1939. 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, with Australia, Dominican Republic, and Peru coming into prominence in 1939. 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. In 1938 there was a decrease of approximately 25 per cent., followed by a further drop to £1,038,584 in 1939.

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.
 £££££££
192029,767,24116,995,63914,790,97328,513,81215,305,51217,734,52961,553,853
192121,257,65411,211,07010,275,39820,635,05710,316,21011,792,84942,744,122
192219,246,5698,561,2957,018,21018,109,6867,709,1799,007,20934,826,074
192323,991,1619,840,0399,532,78322,517,6959,334,79611,511,49243,363,983
192424,904,17813,169,64210,453,78323,203,82512,627,08412,696,69448,527,603
192527,233,35913,219,56411,972,83425,542,65212,688,97414,194,13152,425,757
192624,286,61011,604,64213,920,51122,749,60611,246,33515,815,82249,811,763
192722,678,5829,578,87312,525,21121,463,8349,253,44714,065,38544,782,636
192822,489,7169,809,28112,545,10521,247,1119,520,91414,076,07744,844,102
192923,675,44210,811,40314,247,62722,496,63810,534,82615,703,00848,734,472
193021,938,7869,546,66112,854,20721,102,1169,231,17914,006,35944,339,654
193113,834,7445,324,8127,338,59513,306,0015,141,8758,050,27526,498,151
193212,906,4205,136,2766,603,31012,575,9544,972,4687,097,58424,646,006
193313,504,2455,858,0186,219,10313,126,0325,669,7336,785,60125,581,366
193416,152,7627,592,5137,594,27715,739,7617,349,8528,199,93931,339,552
193518,519,6008,592,1099,205,55818,283,0968,320,0649,714,10736,317,267
193622,078,95910,585,08411,594,84321,851,52410,341,09012,066,27244,258,886
193728,184,89113,750,26914,225,53527,861,27513,430,22114,869,19956,160,695
193826,886,47514,522,53614,013,17826,532,68814,238,39714,651,10455,422,189
193923,277,00413,811,17912,299,00023,133,87213,512,25812,741,05349,387,183

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 1935 to 1939, and on the basis of country of shipment for the year 1939.

IMPORTS FROM PRINCIPAL COUNTRIES.

Country.On Basis of Country of Origin.On Basis of Country of Shipment.
1935.1936.1937.1938.1939.1939
*Not including Austria.
British Countries££££££
  United Kingdom18,283,09621,851,52427,861,27526,532,68823,133,87223,277,004
  Ceylon633,594750,982823,470818,192823,904821,609
  India571,630554,100579,922565,285705,088699,059
  Malaya81,45797,260108,93598,590426,751426,525
  Union of South Africa55,801119,405131,97090,68279,54076,575
  Canada2,450,4573,326,8784,503,2874,855,3154,376,9124,360,362
  Australia3,957,3984,941,3766,595,6057,159,4286,419,4696,738,988
  Fiji80,09095,93395,573112,53847,96071,163
  Nauru Island171,094136,191169,301140,647201,237201,244
  Western Samoa55,67251,32966,916104,81490,48593,732
       
Foreign Countries 
  Belgium217,513409,214545,534517,782417,488403,977
  Czechoslovakia120,590142,218194,746189,91131,92328,036
  Finland31,69446,607109,521116,06580,37678,820
  France222,049215,111232,464235,044232,428213,974
  Germany*534,674748,427972,7601,119,013872,009824,089
  Italy225,15745,275174,917103,745137,835127,784
  Netherlands161,480210,401268,521269,798307,385295,987
  Sweden285,792343,982368,908404,828325,916316,543
  Switzerland97,208140,797181,479200,300159,161150,653
  Bahrein Islands....53,087247,815278,493278,493
  China97,251151,353143,644121,523117,389108,473
  Iran4,71559,82517,934127,81129,11328,823
  Japan1,100,1501,328,1951,629,1911,208,5941,038,5841,032,623
  Netherlands East Indies1,436,9641,772,6422,238,4132,100,5242,434,8262,434,543
  United States of America4,535,0605,605,3796,962,5180,850,1325,613,1545,339,322

Direct shipments from the United Kingdom in 1939 exceeded by £143,132 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 Groat 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 and 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 £273,832 in 1939.

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.1930.1931.1932.1933.1934.1935.1936.1937.1938.1939.
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
* Not including Austria.
United Kingdom47.5950.2151.0351.3150.3850.3949.3749.6147.8746.84
Canada8.955.074.494.956.706.757.528.138.768.86
India1.501.621.582.262.131.581.251.031.021.53
Ceylon1.662.551.572.161.871.751.701.471.481.67
Malaya0.180.240.390.310.210.220.220.190.180.86
Union of South Africa0.220.290.340.200.180.150.270.230.160.16
Australia6.827.839.6110.0710.3310.9011.1611.7412.9212.88
Fiji0.470.430.470.420.330.220.220.170.200.10
Other British countries1.021.391.721.811.711.351.036.950.971.30
Totals, British countries68.4169.6371.2073.4973.8473.3172.7473.5273.5674.20
           
Germany*2.292.372.051.841.541.471.691.732.021.77
France1.431.351.200.960.770.610.490.410.420.47
Belgium1.061.200.800.670.440.600.920.970.940.85
Japan1.331.251.942.642.673.033.002.902.182.10
Netherlands East Indies1.913.503.533.904.413.964.013.993.904.93
United States of America17.8015.9514.4711.5411.9612.5012.6612.4012.3711.37
Other foreign countries5.774.754.814.964.374.524.494.084.614.31
Totals, foreign countries31.5930.3728.8026.5126.1626.6927.2626.4826.4425.80

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 fist 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. As a result of import control measures, the importation of motor-vehicles from the United States has now fallen to insignificant proportions. 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, the preferential tariff favouring importations of British goods, and in 1939 the policy of import control.

Imports of Australian origin in 1939 were £740,000 less than in 1938. Australia ranked next in importance to the United Kingdom as a source of the Dominions's imports in 1938 and 1939, a position which had previously 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, rose 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), but fell by nearly £500,000 in 1939 as the result of restrictions on the importation of motor-vehicles.

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. 229). 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.

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 seven 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 (1939)74.225.8
Australia (1938-39)59.640.4
India (1938-39)58.141.9
Union of South Africa (1938)53.047.0
United Kingdom (1938)40.459.6
Canada (1938-39)27.472.6

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 (1939)46.8
Union of South Africa (1938)43.6
Australia (1938-39)41.6
India (1938-39)30.5
Canada (1938-39)17.6

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 Zealand111911
  Eire6178
  Australia51011
  Union of South Africa3192
  British West Indies2139
  British Malaya237
  Canada206
    
Foreign countries—   
  Denmark430
  Norway21111
  Sweden1173
  Netherlands1103
  Argentina1101
  Finland189

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.1935.1936.1937.1938.1939.
* Not including Austria.
 £££££
Confectionery.
United Kingdom24,47625,57256,45149,16410,958
Canada3834122,9501,558443
Australia36,58237,93759,17472,99484,210
France1,2211,500751459258
United States of America2,8001,8412,2413,8463,198
Other countries1,0935511,0501,232340
  Totals66,55567,813122,617129,253105,407
      
Fruits (Dried.
Union of South Africa3,02820,90419,2026,5854,440
Australia293,824329,523338,860321,242342,367
Iraq30,53021,05148,92939,04935,317
Turkey10,56413,56815,60413,60412,734
United States of America61,87865,15689,69586,37477,520
Other countries8085256,8364,9752,735
  Totals400,632450,727519,126471,829475,122
      
Fruits (Fresh).
British West Indies19,73917,86114,17015,04230,779
Canada1,4591,6612,3592,4791,327
Australia80,25094,185172,182241,063168,629
Fiji64,11375,62868,68286,94028,603
Norfolk Island963..1,067271331
Tonga14,29510,6457,5225,69715,963
Western Samoa51,41745,41162,101101,05581,692
United States of America54,74649,05661,73657,32942,486
Other countries1,4782,5433,699427681
  Totals288,460296,990393,518510,303370,491
      
Sugar.
United Kingdom11,4918,4978,4873,1711,423
Australia8,0899,4717,5727,397186,538
Fiji9,73410,54615,10913,5283,260
Netherlands19,53129,42328,7208,2814,417
Netherlands East Indies580,884402,387538,006464,898414,252
Cuba45,524188,206109,11956,8437
Dominican Republic..248..112,861
Peru..6231970,214
United States of America33,30512,34710,51544,98358,064
Other countries2,0802,3726,6052,1512,602
  Totals710,638663,279724,164601,270853,638
      
Tea.
Ceylon610,496723,354785,049797,000801,527
India31,54017,71622,84515,96937,199
Kenya and Uganda........20,866
Union of South Africa........17,282
China5,6086,2775,9513,1243,068
Japan8362,4618,473550344
Other countries65219253217172
  Totals648,545750,027822,571816,860880,458
      
Tobacco and Preparations thereof.
United Kingdom431,251444,637556,359534,301387,354
Australia56,03392,841108,377147,71578,798
United States of America205,900246,310266,345351,104565,163
Other countries11,24810,5849,4479,0064,355
  Totals704,432794,372940,5231,042,1261,035,670
      
Hosiery.
United Kingdom108,642104,039205,198168,596122,274
Canada61,416103,967130,788111,76448,574
Australia13,43319,21747,42818,6026,863
Czechoslovakia5,6305,24616,3246,172644
Germany*3,7928,97012,17113,8014,072
Spain..1291,793....
Japan3,2033,60431,56145,75259,053
United States of America2399211,4751,413152
Other countries275443609197251
  Totals196,630246,536447,347365,297241,883
      
Hats, Caps, and Millinery.
United Kingdom90,513112,823143,576137,67986,057
Canada1,73712,96619,39720,0168,417
Australia14,20114,27319,90015,8531,851
Czechoslovakia1,1782,7045,1515,323661
France6,4562,9883,8782,3072,175
Germany*3,8454,69912,3599,18911,753
Italy3,116682,0351,7265,910
Switzerland1,0602,5092,3921,7621,611
China3,9706,1704,9778,07413,423
Japan15,18010,99811,0938,4005,115
United States of America6,6777,0843,3074,4002,974
Other countries4,3454,4904,5513,7172,378
  Totals152,278181,772232,616218,446142,330
      
Miscellaneous Apparel and Ready-made Clothing.
United Kingdom843,226900,5241,243,4411,030,725605,506
Canada16,29536,398100,875142,99657,081
Australia40,40664,681101,95261,31915,144
Belgium1,7269,01411,14611,39212,150
Czechoslovakia16,68923,44927,84125,7516,396
France4,8184,3476,64310,4926,690
Germany46,90855,55058,26842,00224,909
Austria2,5933,50010,2128,210..
Hungary1,2585,56013,61310,9006,269
Italy24,9886,65929,13023,89812,467
China4,1265,3966,5959,6956,729
Japan64,00690,075114,23575,28332,873
United States of America32,67042,30151,87940,48019,494
Other countries2,1783,3318,72010,9856,121
  Totals1,101,8871,250,7851,784,5501,504,137811,819
      
Boots and Shoes.
United Kingdom253,597276,363422,417316,647203,945
Hong Kong4702,9153,3306,1925,973
India5,3004,72512,20814,72213,099
Canada100,380109,546155,816163,051141,040
Australia40,84151,47139,25819,0453,679
Czechoslovakia15,4656,29513,6625,400831
Japan50,14050,87552,36547,53022,820
United States of America5,1255,0997,3914,4722,658
Other countries7381,4821,577964713
  Totals472,056508,771708,024578,023394,758
      
Miscellaneous Drapery.
United Kingdom373,934419,115641,348514,466341,335
Canada1,0393,81614,19913,0948,338
Australia4,3538,12418,07514,4427,501
Czechoslovakia5,4846,6448,1549,5011,592
France8,3689,6307,8719,3686,792
Germany*10,46417,05221,99320,51518,244
Switzerland16,25516,34421,68827,29516,634
China8,56616,38516,42913,69110,673
Japan24,96841,65378,65475,69748,507
United States of America2,2872,7837,4849,0067,158
Other countries11,61010,55220,75127,15116,125
  Totals467,328552,103856,646734,226482,899
      
Cotton, Linen, and Canvas Piece-goods.
United Kingdom1,502,7671,575,4201,640,4881,217,8331,418,856
Canada8,80210,67111,47012,56716,096
Australia7,7136,9668,4592,6716,029
Belgium47,43272,06876,51575,3924,443
France3,7943,8382,8572,0591,215
Germany*5,0088,60013,16817,3424,895
Netherlands3,3733,69210,73212,2978,029
Switzerland3,2903,6957,7109,9694,761
Japan141,586268,834279,935229,338224,905
United States of America19,88218,35620,02416,54316,190
Other countries8,1986,4248,69512,3616,404
  Totals1,751,8451,978,5642,080,0531,608,3721,711,823
      
Silk, &c. Piece-goods.
United Kingdom291,774335,225430,032329,500413,596
Canada39,03361,20222,52429,25334,603
Australia30,75835,67046,83512,9317,995
Czechoslovakia2,7813,7047,51013,3571,103
France33,88727,16619,90325,18225,612
Germany*22,49138,00060,35366,34946,199
Hungary4,48114,56417,03410,6075,141
Italy35,0192,40513,60214,66926,516
Switzerland7,30411,08515,30014,67911,129
China5,9973,2653,9161,3893,582
Japan396,450416,005431,618308,307308,284
United States of America7,6357,7667,28513,74131,431
Other countries1,9348,2523,7042,5211,426
  Totals879,544964,3691,079,625842,485916,617
      
Woollen Piece-goods.
United Kingdom638,133833,6841,105,420763,847740,442
Canada..2,14912,1015110
Australia4,9413,7053,7351,5292,331
Germany*3,4501,9041,5242,5681,932
Belgium..1,6712,7832,9394,013
Japan2,3774,4113,1652,785711
Other countries3,7924,8131,8522,4306,508
  Totals652,693852,3371,130,580776,149755,947
      
Paints and Varnishes.
United Kingdom221,931236,925252,025231,603220,091
Canada2,6683,55817,45813,21011,165
Australia99,635127,098137,930164,363114,813
Germany*6,2027,6168,2239,8439,602
Netherlands3,0604,3727,8277,3108,680
United States of America34,95932,68736,13636,15525,481
Other countries4,6333,3366,1704,3104,024
  Totals373,088415,592465,769466,794393,856
      
Iron and Steel.—Bar, Bolt, and Rod.
United Kingdom97,841118,556164,260209,791121,305
Canada1,48714,8053,44069,2149,106
Australia189,654278,282381,663483,704265,124
Other countries3583138742,4521,596
  Totals289,340411,956550,237765,161397,131
      
Iron and Steel.—Plate and Sheet.
United Kingdom847,7581,032,0491,370,7061,184,1811,000,942
Australia32,95248,125102,64291,060206,462
United States of America1,5283,7018,12118,61222,071
Other countries2,1114321,1542,2377,332
  Totals884,3491,084,3071,482,6231,296,0901,236,807
      
Iron and Steel.—Tubes. Pipes, and Fittings.
United Kingdom312,172362,924418,754479,119446,434
Canada52,88464,49680,27370,82160,709
Australia4,64615,14426,44315,81441,620
Germany*2,4934,7718,3427,4316,677
United States of America8449724,1711,54236,442
Other countries1,7772,0331,921778876
  Totals374,816450,340539,904575,505592,758
      
Artificers' Tools.
United Kingdom149,414183,229168,936171,220136,788
Canada27,42046,33360,62060,51056,243
Australia5,28410,6718,55612,0289,259
Germany*14,11516,80020,60424,17114,415
United States of America48,71673,41589,56782,84872,515
Other countries8,42010,22611,39410,5028,036
  Totals253,369340,674359,677361,279297,286
      
Fencing-wire.—Plain and Barbed.
United Kingdom161,394144,953251,561172,745124,702
Canada24,95837,54321,34421,7757,831
Australia49,70658,67462,94075,66858,671
United States of America14,9919,07610,3655,6263,337
Other countries..31816..68
  Totals251,367250,262346,210275,882194,541
      
Miscellaneous Hardware.
United Kingdom423,412529,059747,320678,662583,974
Canada21,69450,13952,27747,76231,042
Australia44,31475,58199,573103,62053,053
France2,1642,4063,3854,0412,365
Germany*19,16021,03429,92332,75616,160
Sweden12,90816,46820,15827,16416,797
Japan20,82523,76230,07715,42210,360
United States of America100,06078,21279,16872,35453,243
Other countries7,4375,7496,9218,6053,056
  Totals651,974802,4101,068,802990,386770,050
      
Agricultural Machinery.
United Kingdom72,44895,689106,651103,34870,384
Canada39,61846,54458,01554,27834,626
Australia18,69734,79141,21729,99424,479
France9892,0604,0746,9514,023
Germany*3,1644,2595,5664,4662,321
Sweden11,38415,88919,10519,6806,353
United States of America64,386101,676132,543128,33495,771
Other countries5244757331,0641,210
  Totals211,200301,383367,904348,115239,167
      
Dairying Machinery.
United Kingdom51,51455,58957,69745,07238,172
Canada2,9385,0653,7791,88459
Australia20,33425,25518,64619,2445,347
Germany*3,4663,1152,9337,6833,919
Sweden46,87367,06035,19121,33234,931
United States of America4,3642,6889,79614,2469,480
Other countries4,3624,4563,9086,0764,847
  Totals133,851163,228131,950114,53796,755
      
Electrical Machinery and Equipment (including Telephones and Accessories.
United Kingdom873,8781,312,1631,863,5561,924,0731,736,940
Canada76,239100,844158,996240,402191,379
Australia111,438140,787185,640138,278122,690
Belgium3,8494,87113,06251,07165,177
Germany*16,14620,60841,04446,20353,330
Netherlands7,46512,18510,0558,6477,674
Sweden20,14229,85845,52352,05151,823
Japan11,37016,22616,21212,0745,509
United States of America146,506180,619242,021248,847194,317
Other countries9,35916,38223,64135,09416,947
  Totals1,276,3921,834,5432,599,7502,756,7402,445,786
      
Wireless Apparatus.
United Kingdom47,01572,966143,460211,553148,559
Canada12,60311,48611,1775,4982,844
Australia49,71397,609124,82357,99439,411
Germany*5183131,6432,238882
Netherlands19,34910,0747,0753,1567,091
United States of America189,076247,097317,866148,36284,699
Other countries1,1721,0231,1941,354323
  Totals319,446440,568607,238430,155283,809
      
Leather and Leather Goods (excluding Boots and Shoes.
United Kingdom132,059170,532200,533148,403125,558
Canada6,7288,57416,72713,3907,558
Australia68,46583,60593,36663,21964,737
Germany*8,2808,6257,1874,2442,043
Netherlands7383,9823,8025,9743,094
United States of America49,55377,65065,59374,12088,054
Other countries9,3078,1797,91510,2637,490
  Totals275,130361,147395,123319,619298,534
      
Timber.
Canada31,01549,52265,02163,24951,174
Australia301,306271,021348,812434,016458,703
Finland5,16994130,52514,014..
Sweden11,58328,3661193,365..
Japan23,49538,72466,41641,22452,003
United States of America21,08635,47638,83054,69974,711
Other countries4,8566,20310,43311,8295,007
  Totals398,510430,253560,156622,396641,598
      
Earthenware and Chinaware.
United Kingdom212,210243,257300,430278,487239,453
Australia3,0391,9853,1414,5221,346
Czechoslovakia4371,4931,7552,475355
Germany*1,3131,4542,4173,5751,432
Japan26,67730,20231,16132,45217,208
Other countries3334998481,039521
  Totals244,009278,890339,752322,550260,315
      
Glass and Glassware.
United Kingdom140,903177,790180,992176,114175,698
Canada3,4113,9966,9256,1795,133
Australia57,19264,32956,69760,40268,589
Belgium27,70735,75858,69747,07447,190
Czechoslovakia23,53033,40338,34030,3824,549
Germany*10,49020,80722,87324,15911,801
Japan14,42117,29522,89523,0629,042
United States of America14,60321,20528,24328,75322,612
Other countries11,6767,4554,0454,6242,900
  Totals303,933382,038419,707400,749347,511
      
Printing-paper.
United Kingdom165,081178,335276,099303,805255,000
Canada323,980432,721310,159425,759358,676
Newfoundland......12,523..
Finland3,5244,9915,2266,1824,676
Germany*15,64122,63031,31229,79716,159
Norway11,94910,0069,2335,1235,782
Sweden4,0053,4032,5953,2253,094
United States of America20,03826,56930,73831,45643,050
Other countries6,0586,78510,98115,13711,312
  Totals550,276685,440676,343820,4 84710,272
      
Paper, other than Printing.
United Kingdom268,946289,134322,296298,803304,761
Canada92,482123,559182,077170,153163,040
Australia6,9976,3939,3187,01510,174
Belgium7,71910,59710,0363,8393,555
Finland15,73623,79938,46942,58029,768
France36324919928214,274
Germany27,13536,40743,81529,18132,222
Austria4,7312,4167,0726,621..
Japan1,0197,75712,9527,3753,915
Netherlands7,7817,08616,89814,30811,306
Norway26,35232,41028,72417,78323,566
Sweden52,15744,44063,92877,73283,677
United States of America61,18384,256138,916128,315106,504
Other countries6,4958,7249,64516,9195,422
  Totals579,096677,227884,345820,907792,184
      
Books, Papers, and Music.
United Kingdom320,974373,104426,512473,828426,914
Australia75,45583,14095,108138,745152,845
United States of America36,17354,67275,49589,87483,957
Other countries5,3157,2237,2498,3416,876
  Totals437,917518,139604,364710,788670,592
      
Miscellaneous Stationery.
United Kingdom213,352225,754303,714280,085247,752
Canada8,04215,98816,15322,21211,217
Australia75,61088,24194,579106,45983,587
Germany*6,8248,13012,73610,6297,625
Japan11,88114,25116,95912,70212,156
United States of America31,17431,89839,04546,14329,832
Other countries9,0318,45210,1468,0453,314
  Totals355,914392,714493,332486,275395,483
      
Fancy Goods, Toys, and Smokers' Requisites (other than Cigarette-papers.
United Kingdom109,011121,670152,751139,864103,738
Canada6,1259,12911,89311,2088,050
Australia12,60416,06020,65516,0228,801
Czechoslovakia16,26617,90821,65024,1723,303
France3,3465,1376,0896,5233,399
Germany*12,86215,14421,13320,5878,543
Japan45,52252,86162,95657,49514,652
United States of America7,74614,65125,82231,27410,928
Other countries8,7967,79012,20510,7224,184
  Totals222,278260,350335,163317,867165,598
      
Motor-cycles.
United Kingdom40,26869,446112,21480,00148,055
United States of America6517011,5071,039857
Other countries......59..
  Totals40,91970,147113,72181,09948,912
      
Motor-cars.
United Kingdom1,567,5592,080,9162,851,4972,805,4182,065,440
Canada439,153714,0331,127,6611,220,8111,296,356
Germany*......28,701481
Italy....4059,9857,622
United States of America710,454762,876741,290417,903171,609
Other countries..12199401..
  Totals2,717,1663,557,9464,720,9524,513,2193,541,508
      
Motor Lorries, Trucks, Vans, and Buses.
United Kingdom222,083475,930401,515348,442201,791
Canada110,587176,983428,115363,712346,545
United States of America157,511335,564236,736210,07198,797
Other countries....3,454....
  Totals490,181988,4771,069,820922,225647,133
      
Tires, Tubes, and Covers, for Motor-vehicles.
United Kingdom446,069369,062375,725408,290495,190
Canada254,626261,807429,441394,650311,158
Australia13,56113,65422,0812,5311,790
France4,3212,8721,91594957
United States of America15,61521,71342,56638,55127,542
Other countries8516342606541,230
    Totals735,043669,742871,988845,625836,967
      
Motor-spirits.
Netherlands East Indies623,8511,008,2271,169,6641,054,4371,262,664
Russia125,850145,986......
Malaya........283,765
Bahrein Islands....52,859245,671261,858
Iran..57,28115,53063,412..
United States of America359,523430,862618,093527,777221,591
Other countries1011071284281
    Totals1,109,3251,642,4631,856,2741,891,3392,029,959

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.Year.Imports.
 £ £
1929124,043193567,779
1930122,156193686,873
193187,581193769,121
193289,136193890,479
193392,910193960,635
193477,018....

The principal articles imported into New Zealand from the Cook and other annexed islands are as follows:—

Article.1935.1936.1937.1938.1939.
Fruits, fresh—£££££
  Bananas22,86838,67227,49528,95523,913
  Oranges21,08928,68925,96944,49522,013
  Tomatoes19,09614,0809,6718,8685,514
  Other285750246445390
Fruit juices1,5867591,7321,8791,591
Coconuts533743472746758
Copra1,0561,014582....
Potatoes3581,0111,6803,1571,787
All other items9081,1551,2741,9344,669

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 Canada, the Union of South Africa, Eire, Newfoundland, or India, were exempted from the surtax on duty previously payable. Reductions were made in the rates of duty charged on confectionery, apparel, hosiery, and silk and artificial 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 cocoa-beans, raw 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 having regard, 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:—

* Extended to 1st November, 1941.

  1. Protective duties were abolished on: Certain stock foods; nails (as from 1st November, 1936)*; certain iron and steel pipes; linseed oil; white-lead ground in oil (as from 1st November, 1936)*; wireless sets in cabinets; maizena and cornflour in small packages.

  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-spirits), 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-spirits); 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; water-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 250, 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 5/16 d. and in 1924 to ¼d., irrespective of origin. The duty on refined sugar was increased to ¾d. 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 ¾d. 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 was 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 boor was 1s. 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 reading 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 reading 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. (See pp. 222-224.)

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 1/16 d. per gallon for every unit of specific gravity up to 1,055, and by ⅛d. 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 1/16 d. 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 2½ lb. 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 does 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 again shown a tendency to fall. The figures for the last twenty years are as follows:—

Year ended 31st March,Total Taxation.Customs and Excise Duties.
Amount.Percentage of Total Taxation.
 ££Per Cent.
192122,184,4148,769,25139.53
192216,370,5165,554,33433.93
192315,715,3806,644,42042.28
192416,540,4387,870,30947.58
192516,549,6098,187,27349.47
192617,254,6888,974,23552.01
192717,437,8278,826,28750.62
192817,145,1458,501,24549.58
192917,832,0338,565,73648.04
193019,471,1319,517,35948.88
193118,878,2858,181,07643.34
193217,405,6226,545,42837.61
193319,703,7036,785,64134.44
193421,470,8277,140,47833.26
193524,737,9398,094,60532.72
193625,476,3728,876,20334.84
193731,164,30210,340,83833.18
193836,767,52511,737,17031.92
193937,764,91211,727,22431.05
194044,487,08511,325,85725.46

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. The 1939 figures for this and subsequent tables were not available when this section was prepared.

YearFoods and Nonalcoholic Drinks.Clothing and Textiles.Alcoholic Drinks and Tobacco.All other Articles.Total.
Amount of Duty collected.
 £££££
1911147,456682,7101,286,6011,048,8903,165,657
1916170,009985,3351,390,3221,036,2273,581,893
1921237,8781,297,1211,930,8981,826,3575,292,254
1926389,6861,760,4082,679,0803,102,6237,931,797
1931366,709981,1391,780,3051,360,4244,488,577
1934310,476780,1491,464,2812,471,9395,026,845
1935321,561761,3611,597,5572,879,0525,559,531
1936346,167929,7271,866,2173,733,5056,875,616
1937397,5851,258,9822,061,8754,263,5987,982,040
1938419,7961,131,4832,247,7784,313,5078,112,564
Year.Foods and Nonalcoholic 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.
19114.6621.5740.6433.13100.00
19164.7527.5138.8128.93100.00
19214.4924.5136.4934.51100.00
19264.9122.1933.7939.11100.00
19318.1721.8639.6630.31100.00
19346.1815.5229.1349.17100.00
19355.7813.7028.7451.78100.00
19365.0413.5227.1454.30100.00
19374.9815.7725.8353.42100.00
19385.1713.9527.7153.17100.00

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-spirits1,033,5741,037,1611,416,4681,492,6111,616,553
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—257,201168,209210,467236,229274,083
New Zealand manufactured 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 duties313104144190513051210
  From excise duties1921710110311191129
Totals530592693749757

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 Head at 1895 Ratio.
 ££s.d.££s.d.£s.d.Per Cent. 
18956,115,9538671,619,97024124126.491000
190010,207,326121462,170,354214137421.26803
190512,481,178131342,652,6662181312421.25802
191016,748,223161112,954,989216945217.64666
191520,658,720171963,190,8832156415215.45583
192061,553,8534910117,953,477697135612.92488
192552,425,757371748,287,2885199100715.81597
193044,339,654291407,776,103542717417.54662
193431,339,55220405,724,5043131057018.27690
193536,317,267234116,353,91141463217.50661
193644,258,886281117,795,0114190781017.61665
193756,160,69535658,983,033513097216.00604
193855,422,189349109,066,4705121092916.36618

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.
192920,886,79827,847,67448,734,47242.8657.148,582,39330.8217.61
193020,255,01924,084,63544,339,65445.6854.327,776,10332.2917.54
193112,306,83914,191,31226,498,15146.4453.565,282,51037.2319.93
193211,634,88313,011,12324,646,00647.2152.795,035,91338.7120.43
193312,424,19813,157,16825,581,36648.5751.434,920,59337.4019.24
193415,019,01716,320,53531,339,55247.9252.085,724,50435.0818.27
193517,358,65218,958,61536,317,26747.8052.206,353,91133.5117.50
193620,615,65423,643,23244,258,88646.5853.427,795,01132.9717.61
193725,862,09130,298,60456,160,69546.0553.958,983,03329.6516.00
193826,981,93228,440,25755,422,18948.6851.329,066,47031.8816.36

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. 202. The oils, fats, and waxes class, in which motor-spirits predominates, accounted for 22 per cent. of the total Customs duty (excluding primage) collected in 1938. Next followed tobacco, 10 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 Imports.
 £££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
V1074,042,0191,042,1260.0999.911,283,050123.13123.12
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
X1,102,7192,231,0513,333,77033.0866.921,754,22178.6352.62
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
XIVB5,528,9451,538,5047,067,44978.2321.77300,87519.564.26
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 or 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...001,262,6011,262,601
55 per cent...88,88272,026160,908
60 per cent.....367,509367,509
65 per cent.....191,344191,344
Totals ad valorem9,664,2094,121,7767,033,00920,818,994
     
Total merchandise imports26,532,68814,238,39714,651,10455,422,189

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 bad 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 of 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 there into:

  4. Administrative and general office expenses:

  5. Any cost of conveying, 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.
192948,734,47233,031,46415,703,0088,437,21717.3053.73
193044,339,65430,317,84714,021,8076,648,14215.0047.41
193126,498,15118,401,8878,096,2643,097,99511.6938.26
193224,646,00617,510,3177,135,6892,388,1189.6933.47
193325,581,36618,759,0066,822,3602,573,64510.0637.72
193431,339,55223,139,6138,199,9393,778,15512.0646.08
193536,317,26726,603,1609,714,1074,898,06313.4950.42
193644,258,88632,192,61412,066,2726,182,65613.9751.24
193756,160,69541,291,49614,869,1997,959,68014.1753.53
193855,422,18940,771,08514,651,1047,569,17213.6651.66

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.
 £££
193091,69396,03215,589
193176,20176,7578,052
193284,83284,66712,120
193348,79150,64614,427
193455,17456,09229,152
193554,93655,80127,504
1936117,329119,40521,855
1937128,073131,97029,554
193890,26690,68219,357
193976,57579,54060,095

The imports of merchandise of South African origin during the last five years are classified into four divisions in the following table:—

1935.1936.1937.1938.1939.
 £££££
Special reduction or remission of duty7,1247,31312,0838,26917,442
Reduction of 3 per cent. in duty25,44171,04169,08559,11250,955
No reduction5,8857,5316,1575,3505,478
Free under general or British preferential tariff17,35133,52044,64517,9515,665
Totals55,801119,405131,97090,68279,540

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.
 £££
19303,383,9433,023,0651,562,281
19312,284,5072,073,3611,167,403
19322,571,0802,368,2931,444,860
19332,807,9212,576,0921,393,311
19343,532,0683,238,1241,882,516
19354,295,4573,957,3981,781,811
19365,220,3994,941,3761,843,475
19376,943,8386,595,6051,824,183
19387,468,9877,159,4282,189,454
19396,738,9886,419,4692,256,007

Article IX of the agreement provides that whore 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, whereunder the duty on certain Australian goods which would otherwise have been reduced or removed from 1st June, 1936, following charges 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, 1941.

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.

OTHER TRADE ARRANGEMENTS.

New Zealand is also a party to certain commercial treaties, conventions, or arrangements with countries other than those referred to above. Particulars of the trade agreements with certain European countries are contained in the 1940 and previous issues of the Year-Book, but, owing to the war with Germany and its subsequent effects, these agreements are at present inoperative. In certain instances the agreements referred to 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.

Direct trade arrangements were also 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.1935.1936.1937.1938.1939.
 £££££
Kaipara..445......
Auckland12,136,23515,405,34218,638,31718,772,98816,508,017
Tauranga5,5446,7156,8319,6843,595
Gisborne103,280111,056131,528145,602127,380
Napier452,536568,516666,941664,977530,086
New Plymouth471,370543,757695,145696,661632,677
Patea8,3239,38710,06011,6759,499
Wanganui298,312301,118357,567331,687303,059
Wellington13,212,45716,392,42721,506,69821,448,75819,753,155
Wairau (inch Picton)30,79233,34757,90730,22538,740
Nelson154,004141,189231,939197,609137,447
Westport19,67023,70628,14235,22735,994
Greymouth139,193157,914167,710269,969161,754
Hokitika6,2984,8357,7809,2103,885
Lyttelton4,813,1905,801,2147,607,3667,132,3996,382,814
Timaru263,848271,528348,919278,450377,350
Oamaru47,71059,39573,25183,67851,356
Dunedin3,502,2743,729,8184,679,7364,434,6953,578,779
Invercargill652,231697,177944,798868,695751,596
Totals36,317,26744,258,88650,160,69555,422,18949,387,183

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 1939 being 73.4 per cent. Over the live years imports into Wellington averaged £18,462,699 annually (38.2 per cent. of the total), and into Auckland £16,292,180 (33.7 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 £19,586,025 annually (34.2 per cent. of the total), and through Wellington £13,469,726 annually (23.5 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, New Plymouth, Napier, 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.1935.1936.1937.1938.1939.
 £££££
Kaipara2,1821,855660....
Auckland16,084,92218,765,47922,303,97220,144,90620,631,836
Tokomaru Bay179,482270,965112,554117,199123,292
Gisborne932,424992,2931,257,8631,106,424847,809
Napier2,844,3303,332,6984,196,5763,531,3503,419,673
New Plymouth3,010,7843,469,0633,725,5924,212,3323,906,251
Patea..6..7..
Wanganui1,168,3061,438,8111,545,2781,106,4761,213,600
Wellington10,797,93313,648,68916,012,05113,781,13013,148,444
Wairau (incl. Picton)243,479323,147293,867247,736254,858
Nelson123,985232,541106,289269,066159,585
Westport53,18852,74953,24457,84536,280
Greymouth368,311259,973274,955384,213758,888
Hokitika35,14027,94026,3874,4196,887
Lyttelton3,803,3154,931,8756,408,6704,764,2994,749,637
Timaru1,391,2471,620,5692,031,6641,712,0691,814,038
Oamaru413,626464,201447,561330,633352,771
Dunedin2,418,2503,762,6204,217,1013,231,7703,027,997
Invercargill2,639,0633,116,0523,664,4583,344,7633,539,880
Parcels-post28,41440,41434,63729,61657,590
Totals46,538,38156,751,94066,713,37958,376,28358,049,316

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.
19302,080,0862,106,784398,7392,115,759801,9597,902,066
19311,565,7951,556,275278,9271,637,703723,0236,040,650
19321,403,9771,489,347248,5361,488,052829,9165,708,364
19331,383,8451,374,774235,7221,447,258995,6505,672,971
19341,493,2691,655,838273,8141,540,510953,5286,190,773
19351,603,8251,886,316258,2661,626,784936,3376,569,794
19361,833,9912,304,836282,0671,835,5361,000,0357,538,532
19371,984,3532,639,861318,0671,984,248976,1168,220,712
19381,971,8322,708,117303,9211,937,129936,2748,161,194
19392,088,0522,716,550263,9962,039,431945,2088,317,233

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 formulæ as to the number of bales, cases, sacks, &c., to the ton. In a few instances the tons are “short” tons of 2,000 lb. 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 of the more important ports the total cargo inwards and outwards in 1939. 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.
Whangarei43,6167,112..142,434..193,162
Auckland601,4341,116,31561,173274,736255,9162,370,747
Onehunga15,744..3536,026..51,840
Tauranga18,396....1,655..20,051
Whakatane17,297....14,844..32,141
Gisborne64,2707,04459520,55612,277105,337
Napier73,61734,72278516,64655,073181,628
New Plymouth63,58698,439..5,47956,974224,478
Patea3,455....24,480..27,935
Wanganui56,41970,817..25,88929,345182,470
Wellington554,843776,187186,832333,953248,7092,287,356
Picton46,2952,838..28,1754,35381,661
Nelson85,8316,0478,00851,9303,454163,278
Motueka6,864....16,179..23,043
Westport8,3371,525..401,78922,792434,443
Greymouth16,9091,398..243,18224,119285,608
Lyttelton155,890297,2203,001192,45781,567733,136
Timaru25,73717,370..52,71828,707124,532
Oamaru6,2224,1451115,6046,31432,307
Dunedin99,097229,0793,06282,63542,611459,546
Bluff38,40844,62825927,59259,002170,148
Other ports85,7851,66423530,47213,995132,386
Totals2,088,0522,716,550263,9962,039,431945,2088,317,233

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 1939 the total shipments from the ports included in the preceding table (overseas and coastwise and including transhipments) of nine principal commodities exported overseas from 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.Fresh Fruit.Timber.All other Goods.Totals.
 Tons.Tons.Tons.Tons.Tons.Tons.Tons.Tons.Tons.Tons.Tons.
Whangarei221..3,437..988468414110137,786142,434
Auckland18,90651,686104,72018,3779,06512,9533,1664,71611,161357,069591,825
Onehunga151..31459570635,09636,061....
Tauranga48......11..78197791,655
Whakatane52..4,6421,055..80....6948,32114,844
Gisborne4,2528,5501,538609081,246..334..16,54033,428
Napier21,00430,7381,571943,0292,88053817944312,02872,504
New Plymouth56922,67110,29119,6751,8511,480......5,91662,453
Patea....1,18422,866..........43024,480
Wanganui18,21217,7112,7724,1011,8061,947120..708,49555,234
Wellington43,78261,81117,71839,21813,97711,95220,76634,7886,607518,875769,494
Picton2,0672,9372933693323922,120724,01132,528..
Nelson7801,3347442522524512,16428,03812329,25463,392
Motueka85..7..145..13,894..2,14716,170
West port4......6016418,95173,4802,063424,581
Greymouth2..2..551199,107..67,108966267,301
Lyttelton21,61333,3181,8695655,1285,285874,2296,349198,582277,025
Timaru11,68015,9255216891,595836....82749,34381,425
Oamaru8204,859....65815..1115,57521,929
Otago17,14113,9014012,3241,9121,8871584,12827986,177128,308
Bluff11,77625,49428112,1372,3271,8452525955,88726,25986,853
Other ports3,29812,1356,7851,781784529308192,00317,06044,702
Totals176,336303,070158,782123,56443,83943,928646,44693,164106,7341,552,7723,248,635

TRANSHIPMENTS.

Transhipments of cargo during 1939 totalled 263,996 tons, of which 186,832 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 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 2,840,097 and the total outward tonnage going overseas 1,054,811. As stated previously, import and export figures are not on the same basis, and are thus not comparable.

The next table shows the transhipment trade of each port affected for 1939.

TRANSHIPMENTS, BY PORTS AND CLASS. 1939.

Port.Coastal to Coastal.Coastal to Overseas.Overseas to Coastal.Overseas to Overseas.Totals.
 Tons.Tons.Tons.Tons.Tons.
Auckland7,6018,89138,6256,05661,173
Onehunga35......35
Tokomaru Bay19......19
Tolaga Bay7057....127
Gisborne595......595
Waikokopu89......89
Napier57314765..785
Wellington24,20086,68974,7741,169186,832
Nelson4,9632,894151..8,008
Lyttelton882,217696..3,001
Oamaru11......11
Dunedin2797721,6483633,062
Bluff..259....259
Totals38,523101,926115,9597,588263,996

Chapter 11. SECTION XI—SHIPPING.

REGISTERED VESSELS.

THE number and tonnage of vessels on the New Zealand register at 31st December, 1939, 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.
Auckland332,0001,6095313,7956,70722116,5948,034
Napier......9889429112,7941,452
Wellington101,1601,00648108,56557,9362610,8835,694
Nelson1191975,4562,392132,3431,132
Lyttelton41,7281,654114,1861,599102,3691,185
Timaru......19424881113
Dunedin......1612,5406,796124,2392,329
Invercargill......101,502558727197
Totals484,9074,288155147,87576,90530139,50419,926

Auckland is the port of registry of the majority of the vessels forming New Zealand's “mosquito” fleet, the average net tonnage of the 307 vessels on the Auckland register being only 53 tons. At Wellington and Dunedin many of the vessels of the Union Steam Ship Company of New Zealand are registered, while several are registered in the United Kingdom and Australia. The registration figures for all vessels at the end of each of the last ten years are as follows:—

Year.Sailing-vesselsSteam- and Motor-vessels.Totals.
VesselsGross Tonnage.Net TonnageVessels.Gross TonnageNet Tonnage.VesselsGross Tonnage.Net Tonnage.
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
1938474,8924,283445172,75489,309492177,64693,592
1939484,9074,288456187,37996,831504192,286101,119

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 therein do not agree with those shown above, as vessels employed exclusively within “restricted limits” have not been included.

The number of vessels coming within the following category has fallen from 256 to 186 during the last ten years (a decrease of 27 per cent.), while the total net tonnage has declined by 19 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 256 vessels in 1929. there were 26 sailing-ships; but these are now out of commission.

Size of Vessel.Employed in the Coastal Trade onlyEmployed partly in the Coastal and partly in the Foreign Trade.Employed in the Foreign Trade only.
Number of VesselsNet Tonnage.Number of VesselsNet Tonnage.Number of Vessels.Net Tonnage.
Under 50 tons611,138........
50 and under 100 tons332,343........
100 and under 200 tons243,16523212292
200 and under 300 tons92,2361286....
300 and under 400 tons93,1791342....
400 and under 600 tons41,912....1586
600 and under 800 tons42,990....21,492
800 and under 1,000 tons43,393....1944
1,000 and under 1,500 tons33,84144,61445,285
1,500 and under 2,000 tons35,265....59,163
2,000 tons and over12,62912,473725,943
Totals15532,09198,0362243,705

OVERSEAS SHIPPING.

Throughout the remainder of this section all tonnage figures relate to net tonnage.

The tonnage of vessels entered and cleared during 1939 amounted to 6,007,814, as compared with 6,186,762 for 1938. The number of vessels fell from 1,316 to 1,308.

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. Any change 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, those registered in British countries represented, in 1939, 85 per cent. of the number and 75 per cent. of the total tonnage, while foreign vessels accounted for 15 per cent. of the number and 21 per cent. of the tonnage. The average tonnage of British vessels was 4,290 and of foreign vessels 6,876. Separate figures for vessels registered in the United Kingdom are not available for 1939, but in 1938 they represented 42 per cent. of all overseas vessels entering New Zealand ports, and on a tonnage basis 50 per cent., while the average tonnage was 5,664.

Year.United KingdomOther British Countries.Foreign CountriesTotal.
VesselsTens.VesselsTons.VesselsTons.VesselsTons.
* Included with United Kingdom.
Entered.
19342491,410,180241681,26595541,5935852,633,038
19352321,306,680286701,48391562,9496092,571,112
19362671,480,174268738,223103671,3116382,889,708
19372551,453,490262813,595117695,7956342,962,880
19382751,557,731270825,116115701,8586603,084,705
19395462,342,374**98632,4596442,974,833
Cleared.
19342411,386,171244677,36490524,5425752,588,077
19352351,322,672292707,675100587,3226272,617,669
19362631,461,160262725,328104664,5466292,851,034
19372471,418,942256810,181117696,6756202,925,798
19382751,561,109267843,088114697,8006563,102,057
19395592,355,718**105677,2036643,032,981

DIRECTION OF OVERSEAS SHIPPING.

Particulars of the number and net tonnage of vessels entered and cleared between New Zealand and various countries during 1939 are not available, but details for the years 1937 and 1938 are given below:—

Country.19371938.
EnteredClearedEnteredCleared.
NoTonnage.NoTonnage.NoTonnage.NoTonnage.
United Kingdom93606,596117738,30989604,088121784,683
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
Gilbert and Ellice Islands2053,2141232,8581339,6421133,253
Western Samoa139,802139,8021411,914129,048
Belgium517,85828,492823,287......
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
United States of America55373,13240292,48848317,41248340,850
New Caledonia13,331414,54247,429817,699
Other countries2482,5531756,54228100,9592165,427
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 available is as follows:—

Year.AustraliaUnited Kingdom.United StatesCanada.Netherlands East IndiesPacific Islands.
 TonsTons.TonsTons.TonsTons
Entered.
1934914,693715,061410,526282,896110,95593,664
1935992,258571,335397,737250,553106,478114,947
19361,155,082565,764414,554251,996140,908130,020
19371,222,157606,596373,132238,316168,565156,702
19381,358,630604,088317,412234,517204,313160,908
Cleared.
19341,051,808771,153349,045178,18565,020116,514
19351,102,314694,438445,020144,21454,880106,313
19361,135,831745,618404,314199,27677,126164,034
19371,319,092738,309292,488144,584123,210166,021
19381,412,519784,683340,850125,036143,547178,228

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, which contains particulars for the last three years available, 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.EnteredCleared.
19361937.19381936.19371938.
 TonsTons.TonsTons.TonsTons.
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 VesselsCoastal Vessels.Total.
NumberNet Tonnage.NumberNet Tonnage.NumberNet Tonnage.
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
19342,3088,679,62718,5465,223,90920,85413,903,536
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
19392,4909,766,22417,3654,756,02719,85514,522,251

Overseas vessels show a substantial recovery from the low level of the depression years, the tonnage showing a steady increase since 1932 and reaching its peak in 1938. The number of visits made by vessels engaged exclusively in the coastal trade reached its peak in 1924 and declined to a minimum in 1932. Since then the trend, although uncertain, has been generally upward, but this has been arrested by a fall since 1937. 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 1939 are given in the following table. In this table, however, no distinction is made between overseas and coastal vessels.

Port.NumberTonnage.
Parengarenga1005,358
Awanui17313,385
Mangonui778,964
Whangaroa16115,097
Russell184108,701
Hokianga878,290
Whangarei879149,645
Kaipara62,434
Mangawai432,008
Auckland6,3363,079,942
Onehunga20229,826
Raglan425,402
Kawhia354,438
Thames56124,522
Coromandel3207,358
Whitianga1436,703
Tauranga27518,049
Whakatane1399,209
Opotiki727,075
Tokomaru Bay14995,479
Tolaga Bay8830,971
Gisborne305217,022
Waikokopu9473,332
Wairoa7196
Napier309550,961
New Plymouth282441,085
Patea15915,978
Wanganui357298,273
Foxton382,569
Wellington2,7903,877,915
Picton416295,829
Wairau12311,876
Nelson969313,394
Motueka19818,947
Waitapu1304,327
Westport351286,083
Greymouth274159,758
Hokitika382,432
Lyttelton1,1942,120,472
Akaroa11,154
Timaru367456,508
Oamaru143145,241
Dunedin5211,045,079
Invercargill145
Bluff561542,248
Half-moon Bay1558,671
Totals19,85514,522,251

Wellington ranks as the first port of the Dominion as regards aggregate tonnage of shipping entered, followed by Auckland, Lyttelton, Dunedin, Napier, Bluff, 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 1939, 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.NumberTonnage.
Mangonui1738
Whangaroa1738
Russell2196,012
Whangarei5875,513
Kaipara1738
Auckland5762,668,258
Tokomaru Bay855,528
Tolaga Bay13,755
Gisborne28125,549
Waikokopu1049,941
Napier109481,177
New Plymouth100386,467
Wanganui57228,674
Wellington5772,390,960
Picton2691,088
Nelson1659,635
Westport136218,349
Greymouth106122,670
Lyttelton2521,106,893
Akaroa11,154
Timaru66276,002
Oamaru1963,875
Dunedin199822,404
Bluff121440,106
Totals2,4909,766,224

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 for the examination of marine engineers were issued by the Board of Trade in the year 1938, and corresponding regulations were made in this Dominion and came into force on the 1st October, 1938. These regulations provide for the issue of combined steam and motor engineers& certificates (Imperial validity). Provision is also made whereby candidates for first- and second-class examinations (Imperial validity) may take the examinations in two parts.

During 1939-40 353 examinations were held. Of the 210 who passed, 64 obtained certificates (Imperial validity) as masters, mates, and engineers of foreign-going steam- or motor-ships, 15 obtained certificates as masters and mates of home-trade vessels; 36 as third-class engineers of steamships; 13 as masters and engineers of steamships plying within restricted limits; 12 as engineers of coastal motor-vessels; and 42 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; 24 for master of a pleasure yacht in New Zealand waters; and 1 for square-rigged endorsement.

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 1939-40 to 158 seagoing steam- or motor-ships, and 345 restricted-limits steam- or motor-ships. Vessels to the number of 268 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 Tiritiri 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, Tiritiri Island, and Portland Island. Radio fog-signals are in course of establishment at Cuvier Island and Mokohinau.

The most powerful light is that of Stephen's Island, which, placed some 600 ft. above high water, is visible at a distance of 32½12; nautical miles. Next in order come Cape Brett light (altitude 510 ft.) and East Cape (505 ft.), both visible at 30½12; miles; Godley Head (altitude 450 ft.), visibility 29 miles; Cuvier Island light (altitude 390 ft.) and Mokohinau (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 flags 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 1939-40—Salaries and wages, £18,930; stores and general maintenance, £10,609; radio-beacons, improvements, &c., £20,385; working-expenses of tender, £28,885; administration expenses, £9,549; interest and sinking-fund charges, £12,968; depreciation, £13,487: total, £114,813. Light dues for 1939-40 totalled £99,244.

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 1939-40 seventy-six inquiries, four of which were Magisterial, were held into shipping casualties, the number of vessels involved being eighty-three. There were two total losses and two serious casualties during the year, but no lives were lost. A summary of the casualties is given.

 NoTonnage.
Strandings—  
  Total loss27,554
  Damaged144,460
  Undamaged7812
Collisions—  
  Total loss......
  Damaged143,478
  Undamaged416,094
Fires—  
  Total loss......
  Damaged3227
  Undamaged......
Miscellaneous3968,106
Total casualties83100,731

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 now 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 120 miles 12 chains of double line and 273 miles 30 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, there being twenty-three railway substations, with a total capacity of 15,890 kVA. The Christchurch-Lyttelton section of railway, including the Lyttelton Tunnel, was electrified in 1928-29, the Otira - Arthurs Pass section, including the Otira Tunnel in 1923, and the Wellington-Johnsonville section in July, 1938. The work on the electrification of the Wellington-Paekakariki section (24 miles 60 chains) is nearing completion.

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, 1940, there were 3,390 miles of State railways open for traffic, divided into seven distinct sections, as follows:—

Section.Length (Miles)Section.Length (Miles)
* For composition of subsidiary services, see later table In this section
North Island main line and branches1,561South Island main line and branches1,604
Kaihu24Westport36
Gisborne49Nelson60
  Picton56
Total, North Island1,634Total, South Island1,756

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. Seventy-six miles of this weight have been laid. The previous standard was a 70 lb. rail and this weight is in use on 1,926 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, 1936.31st March, 1937.31st March, 1938.31st March, 1939.31st March, 1940
Open for traffic—£££££
  Railway52,462,58752,905,96554,205,49656,413,30460,697,818
  Lake Wakatipu steamer service17,64517,64517,64519,46620,396
  Subsidiary services*1,762,9311,762,9311,832,1502,233,9422,331,078
  General9,8969,8969,8969,8969,896
Total54,253,05954,696,43756,065,18758,676,60863,059,188
Lines under construction5,358,7755,963,3467,124,0738,399,3008,028,267
    Grand total59,611,83460,659,78363,189,26067,075,90871,087,455

The increase during the year 1939-40 in capital invested in open lines was £4,382,580. The principal additions were: Putorino-Wairoa section of the Napier-Gisborne Railway, taken over from Public Works Department, £1,569,385; improvements and additions to rolling-stock, £1,591,878; Wellington and Christ-church new station yards, £132,696; duplications, deviations, and grade easements, £651,249; Wellington-Paekakariki electrification, £17,886; additions to workshops buildings and plant, £104,368; balance spent on improvements to station facilities, dwellings, signalling, level crossings, and miscellaneous, £315,118.

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, 1940.Capital Cost per Mile (Open Lines).Net Revenue
Per Mile of Open Line.Per Cent. of Capital Cost
1938-39.1939-40.1938-391939-40.
* Loss
North Island—££££  
 Kaihu160,2406,677-366*-283***
Gisborne768,27415,679-47*-92***
Main line and branches38,582,54224,7172394611.011.86
   Totals, North Island39,511,05624,1812194330.961.79
South Island—      
 Westport358,8959,9694174244.194.26
 Nelson507,1408,452-174*-225***
 Picton610,21710,897-135*-107***
 Main line and branches19,710,51012,2881720.010.58
  Totals, South Island21,186,76212,065-2*63*0.52
  Totals, Railways60,697,81817,9051032410.611.35
Lake Wakatipu steamer service20,396..........
Subsidiary2,331,078..........
General9,896..........
Grand totals63,059,18818,6022113511.191.89

ROLLING-STOCK.

Information as to the rolling-stock in use on the State railways in 1939-40 is given in the following table:—

Locomotives— 
 Tender427
 Tank181
 Electric19
 Battery5
Total632
Passenger-vehicles— 
 Sleepers13
 Combination day-sleepers16
 First-class237
Second-class971
Composite293
Rail cars16
Multiple units12
Postal9
Total1,507
Wagons— 
 Horse-boxes272
 Cattle728
 Sheep2,857
 Frozen and chilled meat1,020
 Cool-storage976
 Covered goods844
 High-side16,882
 High-side bogie397
 Low-side1,631
 Brake-vans471
 Other4,401
Total30,479

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 66 to 143 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.TrafficWeight.Tractive Force
   Tons.lb
AB4-6-2 superheated; simple, with tenderMixed8520,000
A4-6-2 superheated and saturated; compound, with tenderMixed7817,000
G4-6-2 superheated; simple, with tenderMixed9825,800
J4-8-2 superheated; simple, with tenderMixed10924,920
K4-8-4 superheated; simple, with tenderMixed13530,815
KA4-8-4 superheated; simple, with tenderMixed14230,815
KB4-8-4 superheated; simple, with tender (fitted with booster)Mixed14336,815
X4-8-2 superheated and saturated; compound, with tenderGoods9426,620
WAB4-6-4 superheated; simple tank engineMixed7122,250
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 746 carriages were equipped with electric light at 31st March, 1940. Locomotives to the number of 539 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 West-port 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 freight rates. Consequent on the extension of settlement and the soundness of the Dominion's industries, a rate of 3¾34; 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, and 1.96 per cent. in 1939-40.

The total revenue from and expenditure on the railways (including subsidiary services) 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.
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
194010,199,0709,010,0391,189,0311193

Interest on railway capital liability for 1939-40, amounted to £2,575,196, a deficit of £1,386,165 being recorded for the year, as compared with a deficit of £1,717,053 for the preceding year. A sum of £950,890 was set aside for depreciation and renewals, and this amount is included in the total of expenditure for the year.

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.Hallway Operating.Subsidiary Services.
 £££££
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
19408,761,6371,437,4337,943,1201,066,919818,517

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.
1938-39.1939-40.1938-39.1939-40.
 ££££
Lake Wakatipu steamers7,1687,36211,31311,120
Refreshment service167,710200,871163,189186,628
Bookstall service92,604112,85588,144106,241
Advertising service40,07136,41735,13434,061
Departmental dwellings133,945141,889187,193204,175
Leases of bookstalls, &c.23,88831,43515,64521,196
Road services—Passengers and goods505,612512,758480,074503,498
Miscellaneous receipts369,330393,846....
Totals1,340,3281,437,433980,6921,066,919

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 Mails.Goods and Live-stock.Labour, Demurrage, &c.Totals.
 £££££
19311,778,726359,2764,487,357156,0296,781,388
19321,339,589316,2454,019,600113,5315,788,965
19331,207,296283,8223,745,777102,1805,339,075
19341,336,334281,8893,911,24599,3675,628,835
19351,368,689292,0974,138,434108,8445,908,064
19361,466,617299,9644,359,750117,1886,243,519
19371,611,305305,5264,846,417140,3566,903,604
19381,698,021318,4575,411,297164,0507,591,825
19391,785,646334,1705,694,936190,3078,005,059
19402,119,335330,0246,109,293202,9858,761,637

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 1939-40 was £1,204,969 (24.57 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 restrictions placed on the use of petrol consequent on the outbreak of war in September, 1939, had the effect of diverting a certain amount of traffic from road to rail, and this factor is reflected in the revenue returns for 1939-40.

The revenue from passenger-fares during the year 1939-40 represented an expenditure on railway travel of £1 6s. per head of mean population, including Maoris. The total railway operating revenue was equal to £5 7s. 10d. per head.

A table is added showing information as to railway revenue in each of the Australian States for the year ended 30th June, 1939. Figures for New Zealand for the year ended 31st March, 1939, 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. 
Queensland6,49713,8237,6571,588244.06
New South Wales6,11430,10619,1464,603313.12
Victoria4,75917,8909,2831,224152.33
South Australia2,5586,1773,133310100.6
Western Australia4,3766,7213,599688212.6
Tasmania6581,914487195*....
Commonwealth Railways2,20190254695*....
Totals for Australia27,16377,53343,8518,123212.6
New Zealand3,31913,0739,34570110.91.23

The net revenue in the case of New Zealand is arrived at after making fall provision for renewals and depreciation, and subsidies to the Superannuation Fund and Sick-benefit Fund.

EXPENDITURE.

The total railway expenditure in 1939-40 represented 88.34 per cent. of the gross earnings, and the operating-expenses 90.66 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.
192071.37
192181.59
192293.89
192381.79
192477.37
192577.97
192681.23
192782.96
192885.81
192984.71
193091.62
193194.47
193291.56
193390.54
193486.65
193586.98
193688.46
193791.81
193896.05
193995.73
194090.66

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.
 £££££££
19311,150,329104,4641,502,6981,594,6721,798,490255,4906,406,143
1932997,629107,5851,270,5851,254,7691,424,520246,5655,301,653
1933931,273105,5861,188,4741,114,8011,255,280238,3404,833,754
1334993,207110,2981,220,1021,064,8271,253,833234,8794,877,146
19351,047,825137,4771,236,3241,127,1601,360,928228,8745,138,588
19361,070,085147,4421,406,6851,201,6361,465,052232,2935,523,193
19371,171,963154,1081,565,0831,412,1771,797,058237,9966,338,385
19381,278,980178,8921,792,5621,703,1102,090,471247,7707,291,785
19391,375,829186,5461,832,6151,812,8572,208,310247,4757,663,632
19401,468,268197,9491,896,3661,891,2622,250,905238,3707,943,120

PASSENGERS AND GOODS.

In addition to the traffic figures shown in the following table for 1939-40, 6,665,999 passengers were carried by the Railways Department's road services, and 11,530 passengers and 7,206 tons of goods on the Lake Wakatipu steamer service. Passenger train-miles run during the year totalled 5,902,332 and the passenger revenue received represents 86.18d. per train-mile and £625 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.
19313,32211,281,89822,783,0567,265,912600,4316,957,709
19323,31510,168,72019,151,4806,503,566459,0635,824,811
19333,3159,828,85318,366,6548,870,570437,7755,490,686
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
19403,39013,366,79824,454,0148,283,067972,7697,673,950

Live-stock carried in 1939-40 comprised 538,182 cattle, 613,851 calves, 9,008,688 sheep, and 524,314 pigs, equivalent to a tonnage of 596,652.

Detailed figures showing the number of rail passengers carried during the last five years are given in the following table:—

1935-36.1936-37.1937-38.1938-39.1939-40.
Ordinary and holiday excursion3,285,1973,480,6553,431,1683,429,3653,627,703
Suburban2,298,0212,360,9621,933,5351,758,5761,828,697
Other reduced fares2,380,6062,443,3392,704,3152,625,4952,826,607
Totals7,963,8248,284,9568,069,0187,813,4368,283,067
Season tickets issued—     
  Suburban twelve-trip....245,342291,715319,715
  Workers' weekly243,120257,84393,05374,13274,756
  Weekly twelve-trip109,418110,84469,39158,51255,377
  Bearer twelve-trip72,60772,92062,96956,64947,756
  Bearer six-trip..10,673208,019326,289389,573
  School26,14825,69325,31825,07825,403
  Tourist368288327251174
  Travellers' annual359344312289264
  Other30,12634,45845,76655,92959,751
Totals482,146513,063750,497888,844972,769

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.1935-36.1936-37.1937-38.1938-39.1939-40.
 Tons.Tons.Tons.Tons.Tons.
Grain185,754265,610238,196185,203236,912
Grain products113,992118,494116,465114,595114,748
Fruit, New Zealand36,97843,23150,80856,73754,118
Root crops, fodder114,614123,612145,839137,500126,218
Flax, hemp, and tow10,31512,27512,6796,2495,979
Seeds16,27520,03321,19416,34617,686
Cattle and horses171,576180,142216,666211,058210,088
Sheep and pigs398,752420,191451,409410,695386,564
Meat227,993227,453250,242262,954281,984
Butter146,765155,161155,822138,845122,477
Cheese71,09575,00774,31071,79473,412
Wool162,045158,743159,442172,197167,951
Dairy by-products25,30825,13825,71820,22019,471
Fat, hides, skins37,03547,03943,26045,30040,804
Fish8,4349,97410,12710,17110,476
Agricultural lime246,716295,055376,741379,504393,117
Coal, imported32,67626,08930,57436,05511,590
Coal, New Zealand hard652,637766,209822,135840,683832,595
Coal, New Zealand brown802,541840,018833,933897,602911,351
Road-metal132,096109,963129,056169,93893,524
Lime and coke28,22532,87338,61240,93644,507
Timber, imported13,47618,17120,52025,45819,092
Timber, New Zealand407,323434,204469,687476,187499,848
Firewood, posts, &c.2,54378,73689,00976,56568,081
Benzine, kerosene, &c.1,510154,061174,860188,492195,113
Cement49,79958,98968,38687,04491,078
Manures663,185746,492991,119874,6791,036,730
Miscellaneous1,229,1471,365,2771,499,2401,596,0051,608,436
Totals6,188,8056,813,2407,516,0497,549,0127,673,950

A table showing for the various commodities the tonnage carried, ton-miles, average haul, revenue, and revenue per ton-mile during 1939-40 is now given:—

Commodity.Tonnage carried.Per Cent. of Total.Tons One Mile (,000 omitted).Average Haul.Revenue.Revenue per Ton-mile.
    Miles.£d.
Grain236,9123.0812,45153130,9632.52
Grain products114,7481.507,4066576,5862.48
Fruit, New Zealand54,1180.7110,36319190,2792.09
Root crops, fodder126,2181.649,8127887,4162.14
Flax, hemp, and tow5,9790.08579976,1022.53
Seeds17,6860.231,2256916,6683.27
Cattle and horses210,0882.7417,14682237,9963.33
Sheep and pigs386,5645.0429,87377431,0653.46
Meat281,9843.679,38533268,1076.86
Butter122,4771.6010,15483161,0563.81
Cheese73,4120.964,0185576,3794.56
Wool167,9512.198,97453182,32244.88
Dairy by-products19,4710.251,7098822,8033.20
Fat, hides, skins40,8040.532,2035446,6925.09
Fish10,4760.142,07819818,9782.19
Agricultural lime393,1175.1223,01959146,4191.53
Coal, imported11,5900.15521455,5812.57
Coal, New Zealand hard832,59510.8536,17043298,5971.98
Coal, New Zealand brown911,35111.88112,392123651,5141.39
Road-metal93,5241.223,6643936,1142.37
Lime and coke44,5070.583,4477728,0471.95
Timber, imported19,0920.251,1926221,6454.30
Timber, New Zealand499,8486.5159,944120533,2552.14
Firewood, posts, &c.68,0810.896,1739136,7591.43
Benzine, gasoline, kerosene195,1132.5416,01082329,4004.94
Cement91,0781.1911,641128108,7342.24
Manures1,036,73013.5168,46666561,0261.97
Miscellaneous1,608,43620.96110,762691,598,4473.46
Totals7,673,950100.00580,777766,209,5502.57

The total number of freight train-miles run during the year 1939-40 in carrying the above tonnage was 7,464,466. The revenue received represents averages of 16s. 4d. per train-mile, 15s. 11d. per ton, and 2.57d. per ton-mile.

RAILWAY EMPLOYEES.

The average number of persons employed by the State railways throughout the year ended 31st March, 1940, was 25,710. The staff is divided into two divisions—namely, the first or clerical division, and the second or out-of-door division—and is now further classed in five branches, as shown in the following table:—

Year ending 31st March,General.Traffic.Maintenance.Locomotive Running.Workshops.Total.
* Included with Locomotive Running.
19361,4884,8883,7886,909*17,073
19371,8235,5534,0737,666*19,115
19382,2606,3084,4268,960*21,954
19392,5856,7824,8173,2886,87024,342
19402,7116,9455,3753,3237,35625,710

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 in regard to 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 “Social Security, Pensions, 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, and at 31st March, 1940, accumulated reserves amounted to £43,142.

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.
1936251,54047251,5871,612
1937591,85981471,9521,999
1938962,211129502,3862,436
1939502,776143482,9212,969
1940512,80588402,9042,944

Of the 40 persons meeting with fatal accidents in 1939-40, 5 were passengers, 9 were employees, and, of the remainder, who were neither passengers nor employees, 19 were killed at railway-crossings, 6 in accidents on the line, and 1 in shunting operations.

Included in the total accidents (2,944) were 33 train accidents, 44 accidents on line, 133 shunting accidents, 58 railway-crossing accidents, and 878 accidents in railway workshops, while miscellaneous accidents totalled 1,798—mainly minor injuries to employees.

PRIVATE RAILWAYS.

Private railways in New Zealand, which are mainly restricted to lines whose chief object is to serve collieries or sawmills, may be roughly divided into two classes: (a) those used solely for the transport of goods belonging to the owners of the line, and (b) those open for the transport of passengers or goods. No information is available concerning the mileage of the former class, but the aggregate length of the latter (main lines only) is approximately 180 miles.

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 operated 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, and at Auckland the Auckland Transport Board, are the controlling authorities.

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, 1940.Approximate Population in Area served, April, 1940.
Thoroughfare.Single Line (including Loops).
  M.ch.M.ch. 
Auckland190244608740181,000
New Plymouth191662473017,000
Wanganui19081424166424,000
Wellington190432525341123,000
Christchurch190543575653115,000
Dunedin19031652287673,000
Invercargill191274094024,000

Passenger rolling-stock at 31st March, 1940, comprised 763 cars with a capacity of 32,528 passengers, including 15 trackless trams with a capacity of 562 passengers. The total route mileage was 166 miles, and track mileage (including loops) 260 miles. In addition to the passenger rolling-stock there were 3 water-sprinklers and 1 freight car.

REVIEW OF TRAMWAY OPERATIONS.

Summarized statistics of tramway operations during the last five years are given in the following table:—

Year ended 31st March,Number of Undertakings.Number of Employees paid out of Revenue.Passenger Car-miles run.Passengers carried.Number of Passengers per Car-mile.
193672,51815,679,576131,651,3958.40
193772,87915,725,869136,162,1568.66
193872,82615,866,280141,901,8918.94
193972,94415,921,656144,262,3369.06
194072,96016,396,807149,736,1959.13

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 or 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 six years, however, show successive annual increases.

The volume of traffic handled during the year ended 31st March, 1940, was substantially greater than was the case in the previous year, an increase of 5,474,000 passengers being recorded. The fact that the Centennial Exhibition had its location in Wellington materially assisted the Wellington Tramway authority to record the large increase of 4,201,000 in passenger traffic. Other notable increases were Auckland. 1,155,000; Christchurch, 173,000. As evidence of the service given by the tramways to the community, it is interesting to note that, based on a live-day week, every person within the area served by electric tramways averaged one tram trip per 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.
 ££ ££££
19361,257,5051,306,256103.885,528,0221,407,5581,362,942112,545
19371,342,4941,400,597104.335,524,6901,451,6371,371,116114,894
19381,455,5991,478,686101.595,640,3571,506,6781,438,857117,411
19391,484,4201,528,143102.955,689,3771,559,6721,502,621114,339
19401,593,7371,596,682100.185,786,4871,611,5901,604,025145,548

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.
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
19401,142,49771.55403,44425.2750,7413.181,596,682100.00

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.   
 £££££££
19362,319,612539,6301,443,608155,828604,540464,8045,528,022
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
19402,373,683543,2211,557,405149,490622,292540,3965,786,487
  Proportion of Total.   
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
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
194041.029.3926.922.5810.759.34100.00

A more detailed analysis of tramway statistics for 1939-40 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.
Auckland59,937,2946,430,7609.322.69
New Plymouth2,021,935332,4666.272.06
Wanganui1,788,349398,9774.482.91
Wellington48,211,7534,634,82710.402.43
Christchurch18,295,1852,790,4146.562.68
Dunedin16,888,1921,434,39111.772.04
Invercargill2,593,487384,9726.751.95
Totals149,736,19516,396,8079.132.51

FINANCIAL TRANSACTIONS.

The Auckland and Wellington services provided 74 per cent. of the total traffic revenue for 1939-40, the former returning £672,550, or 43 per cent., of the total, as compared with £490,748, or 31 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 1939-40:—

SystemTraffic (Passengers and Freight).Traffic Revenue per Car-mile.*Other.Totals.
Cash.Concession.
* All vehicles.
 ££d.££
Auckland672,550..25.085,801678,351
New Plymouth8,5908,81812.9639717,805
Wanganui18,6393,18813.1364022,467
Wellington243,147247,60125.416,983497,731
Christchurch122,17583,33517.685,263210,773
Dunedin83,58159,84424.001,453114,878
Invercargill5,75915,31813.1465521,732
Totals1,154,441418,10423.0121,1921,593,737

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 £2,945 above the total revenue for the year. Only the Auckland, Wellington, and Dunedin tramways undertakings recorded an excess of revenue over expenditure. Of the total expenditure, operating- costs (£1,142,497) comprise 72 per cent., capital charges 25 per cent., and other expenses 3 per cent. An analysis of the total expenditure incurred in respect of each service in 1939-40 is shown below:—

System.Operating Expenditure.Capital Charges.Other Expenses.Totals.
 ££££
Auckland466,528192,50212,178671,208
New Plymouth16,8215,03446222,317
Wanganui21,10315,68773437,524
Wellington364,34972,90227,323464,574
Christchurch149,52274,4488,379232,349
Dunedin103,90636,3561,494141,756
Invercargill20,2686,51517126,954
Totals1,142,497403,44450,7411,596,682

The principal item comprised in the total operating expenditure in 1939-40 is expenses on account of traffic, which represented 63 per cent. Car-maintenance follows traffic expenses in order of magnitude, accounting for 14 per cent. Cost of power was 10 per cent. of the total, and track-maintenance approximately 7 per cent. Management and office expenses accounted for the remaining 6 per cent. The distribution of operating expenditure in 1939-40 was as follows:—

System.Power.Traffic.Car-maintenance.Track-maintenance (including Electrical Equipment).Management and Office Expenses.Totals.
 ££££££
Auckland50,321294,52663,14731,54726,987466,528
New Plymouth1,8008,2314,1941,63196516,821
Wanganui2,7409,6673,2044,0441,44821,103
Wellington32,383240,16451,92024,79015,092364,349
Christchurch16,26392,51819,68713,0178,037149,522
Dunedin8,70368,6098,3777,08511,132103,906
Invercargill2,15910,0254,5602,62789720,268
Totals114,369723,740155,08984,74164,5581,142,497

Annual capital charges in the way of provision for interest and sinking fund and depreciation, reserve, and renewal funds comprised 25 per cent. of the total expenditure during the year ended 31st March, 1940. 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, 1940, 53 per cent. consisted of interest charges and 25 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 1939-40 were:—

System.Interest.Sinking Fund Charges.Depreciation Fund Charges.Renewal Fund Charges.Reserve Fund Charges.Accident Fund Charges.Totals.
 £££££££
Auckland123,98454,693....13,825..192,502
New Plymouth2,9792,055........5,034
Wanganui7,8757,711......10115,687
Wellington30,34710,883....25,5816,09172,902
Christ church30,84616,288..25,356..1,95874,448
Dunedin14,6096,736..15,011....36,356
Invercargill3,0151,7331,767......6,515
Totals213,655100,0991,76740,36739,4068,150403,444

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, 1939-40.
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.
Auckland25.3017.407.180.4525.03
New Plymouth13.2512.523.750.3416.61
Wanganui13.5112.699.440.4422.57
Wellington25.7718.873.781.4124.06
Christchurch18.1312.866.400.7219.98
Dunedin24.2417.396.080.2523.72
Invercargill13.5512.634.060.1116.80
All systems†23.3216.725.900.7423.36

CAPITAL OUTLAY.

At the 31st March, 1940. existing electric tramways represented a capital outlay of £5,786,487.

System.Permanent-way.Electric Equipment of Lines.Cars and other Vehicles.Land.Buildings.Miscellaneous and undefined.Totals.
 £££££££
Auckland1,075,586221,500550,53219,977181,65168,9512,118,197
New Plymouth63,4349,15823,8658967,4601,657106,470
Wanganui45,55012,32020,710..4,9508,62492,154
Wellington483,876135,158505,19959,496211,019188,2221,582,970
Christchurch455,243115,490314,15339,279158,456263,1921,345,813
Dunedin205,54041,807103,33729,69050,8508,174439,398
Invercargill44,4547,78839,6091527,9061,576101,485
Totals2,373,683543,2211,557,405149,490622,292540,3965,786,487

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 and reserves. At the 31st March, 1940, these totalled £3,361,163. Seventy- nine, fourteen, and sixty-four per cent. of sinking fund reserves, depreciation and other reserves, and accident reserves, respectively, are funded in securities outside the tramway undertakings.

Figures of accrued funds and reserves as at 31st March, 1940, are as follows:—

System.Sinking Fund Reserves.Depreciation and Other Reserves.Accident Reserves.Totals.
 ££££
Auckland1,000,588128,0045,7581,134,350
Now Plymouth..53,440..53,440
Wanganui29,305....29,305
Wellington444,491582,97883,9281,111,397
Christchurch111,656613,68623,887749,229
Dunedin13,331140,79531,975186,101
Invercargill12,21985,122..97,341
Totals1,611,5901,604,025145,5483,361,163

POWER CONSUMPTION.

With the exception of Christchurch. which generated only 3,000 units dining 1939-40, 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 cases of Christchurch and Wanganui 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. The Wanganui figure also, similarly adjusted, would become more comparable with those for New Plymouth and Invercargill. 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. 1940, 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.  
Auckland21,003,5530.573.269.32
New Plymouth725,2500.602.256.27
Wanganui980,1710.552.464.48
Wellington12,046,0620.652.6010.40
Christchurch7,821,4700.452.806.56
Dunedin3,256,8680.642.2711.77
Invercargill573,2000.901.496.75
Totals46,406,5740.582.839.13

OMNIBUS SERVICES OPERATED BY TRAMWAY AUTHORITIES.

Omnibus services were carried on by tramway authorities in the following centres in 1939-40: New Plymouth. Wanganui, Wellington. Christchurch, and Dunedin. Statistics for the year 1939-40 show that expenditure exceeded revenue by £13,646. All the undertakings reported an excess of expenditure over revenue, with Wellington recording the greatest deficit, £6,974. Persons employed during 1939-40 totalled 131, made up as follows: Traffic, management, and office staff, 102; garage, 29. The number of vehicles in use was 84.

Passengers carried in 1939-40 increased by 824,628 as compared with the number carried in 1938-39, while bus-miles run advanced by 176,783. Passengers carried by the various bus services were: Dunedin, 2,244,592; Christchurch, 1,897,105; Wellington, 1,827,077; New Plymouth, 454,329; and Wanganui, 136,579.

Year ended 31st March,
 1936.1937.1938.1939.1940.
UndertakingsNo.55555
EmployeesNo.6488104111131
Salaries and wages£18,25826,02130,73537,02343,247
Capital cost of vehicles£85,820122,771126,889161,752180,817
Depreciation£62,38568,92464,36074,40559,137
Total expenditure£47,16061,50780,85591,145110,001
Revenue£41,46252,84071,74079,65696,355
Passengers carriedNo.3,032,2533,819,4445,432,2555,735,0546,559,682
Bus-milesNo.772,897943,6201,224,4701,363,5751,540,358
Average fare per passengerd.3.283.303.163.323.51
Passengers per bus-mileNo.3.924.054.444.214.26

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 4 miles 33 chains. The total revenue in 1939-40 amounted to £55,664, while expenditure totalled £51,385. The total revenue derived from traffic during the year was £55,464, showing an average of 2.37d. per passenger carried. The total capital value stood at £123,048 at 31st March, 1940.

Year ended 31st March,
1936.1937.1938.1939.1940.
UndertakingsNo.44444
EmployeesNo.7480827973
Salaries and wages£16,89218,73220,15320,48320,843
Capital value£141,692146,698146,904146,904123,048
Expenditure—      
  Operating-expenses£32,33834,81641,48543,03541,642
  Capital charges£8,9098,76210,52210,5139,743
  Total£41,24743,57852,00753,54851,385
Revenue£46,45146,69253,70656,37455,664
Passengers carriedNo.6,079,3986,001,6516,080,7165,921,7385,622,623
Car-miles run (including trailer-miles)No.388,665384,901376,245368,709330,415
Passengers per car-mileNo.1616161617

Chapter 14. SECTION XIV.—ROADS AND ROAD TRANSPORT.

ROADS AND BRIDGES.

THE total mileage of formed roads in the Dominion at the 31st March, 1939, was 52,802¼, in addition to which there were 5,901¾ miles of bridle-tracks and 17,265½ miles of unformed legal roads. Details are given in the following table:—

Counties.Boroughs.Town Districts.Road Districts.Totals.
* Includes 94½ 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 concrete144¾265¼13½428¼
  Bitumen or tar2,680¾1,527¾80¼17½4,306¼
  Metal or gravel35,585½1,647¾332¾513¾*38,079¾
Roads and streets formed to not less than dray-width, but not paved or surfaced9,597¾173¼65½151½9,988
Totals, formed roads48,008¾3,614483¼696¼52,802¼
  Bridle-tracks5,762½23½1115,901¾
  Unformed legal roads16,629¾371¾58¼205¾17,265½
    Totals, all roads70,4014,009¼546¼1,01375,969½

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, 1939, is of interest. Only bridges 25 ft. or over in length have been taken 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 stone76667,915446,1129583411382374,723
Steel and concrete48045,829568,990311513654054,970
Steel, concrete, and timber32735,129201,592....12734836,748
Steel and timber64348,908254,787281....67053,776
Australian hardwood2,050207,347859,45892,11592882,153219,208
Native timbers2,253157,127493,7061976532002,324161,798
    Totals6,519562,25527934,645423,659186646,858601,223

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 loading 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, or as State highways under an amendment of 1936. In the case of extraordinary maintenance arising from storms or floods, 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, 1940, the sum of £27,441,787 has been expended out of the Public Works Fund on the construction of roads and bridges (exclusive of main highways) 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 complexion of the loading 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 between the main centres running parallel with railways, wore 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 Main 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, 1940, the length of main highways totalled 12,355 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 12,355 miles of main highways, 3,987 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 Highways 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 Highways 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 7/10d. 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, 1940, the amount distributed between these cities and boroughs was £178,870. 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. Owing to the restrictions placed on the use of motor-spirits consequent upon war conditions, many petrol-driven vehicles are now using, wholly or in part, substitute fuels (producer gas, &c.). Normally such vehicles would be liable for mileage-tax; but, in order to encourage the use of these substitute fuels, they have been exempted by the Substitute Fuels Emergency Regulations, dated 18th September, 1940.

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:—

1935-36.1936-37.1937-38.1938-39.1939-40.
 £££££
Tire-tax93,308138,894158,526149,017102,706
Registration and license fees of motor-vehicles, &c.397,606545,763523,853575,170588,386
Motor-spirits tax1,449,1251,697,9421,918,4862,083,2782,057,001
Mileage-tax1,6163,2906,1627,47410,715
Totals1,941,6552,385,8892,607,0272,814,9392,758,808

During the depression period certain amounts (£500,000 in 1932-33, £500,000 in 1933-34, and £321,754 in 1934-35) of motor-spirits taxation, which otherwise would have been payable to the Main Highways Account, were retained in the Consolidated Fund. In 1934-35 £178,246, and in 1935-36, £186,388 was paid out of the Account by way of special subsidies in respect of rates levied on certain farm lands for the relief of ratepayers, an amount of £253,776 being also paid in 1931-32 to provide refund or rebate of 12½ per cent. of rates paid to County Councils and Road Boards. In addition to the revenue obtained during the year 1939-40, loan-money amounting to £2,685,727 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 each Island has reference to the number of motor-vehicles in that Island. No statutory provision exists in the case of revenue from 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 totals:—

1935-36.1936-37.1937-38.1938-39.1939-40.
North Island—     
  Maintenance expenditure64.8066.8266.4669.2668.28
  Motor-vehicles64.8465.3065.7065.8965.93
South Island—     
  Maintenance expenditure35.2033.1833.5430.7431.72
  Motor-vehicles35.1634.7034.3034.1134.07

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:—

1935-36.1936-37.1937-38.1938-39.1939-40.

* 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 Board1,190,179900,731*1,074,112*1,311,340*1,301,912*
Maintenance by local authorities284,423196,023*153,443*152,730*151,368*
Construction by Board428,0841,501,2612,318,6003,058,3463,297,110
Construction by local authorities78,263103,260108,225134,359172,839
    Totals1,980,9492,701,2753,654,3804,656,7754,923,229
      
Percentages.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
Maintenance by Board80.782.187.589.689.6
Maintenance by local authorities19.317.912.510.410.4
Construction by Board84.593.695.595.895.1
Construction by local authorities15.56.44.54.24.9

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.

1930-31103.1
1931-3292.5
1932-3370.7
1933-3478.5
1934-35100.3
1935-36122.4
1936-3790.5*
1937-38101.2*
1938-39119.9*
1939-40117.6*

For the year 1939-40 the maintenance costs in the North Island and in the South Island, together with the lengths of the main highways, were as follows:—

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.£££
North Island2,2384,3382456,821888,90096,540985,440
South Island9954,53275,534413,01254,828467,840
Totals, Dominion3,2338,87025212,3551,301,912151,3681,453,280

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 £344,290 has been purchased, of which sum £79,756 was outstanding at 31st March, 1940.

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 five years, and the totals since the Highways Board commenced active operation in 1924.

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.
1935-3615298245912....8,718
1936-37272131184673....9,575
1937-3832924128249......11,106
1938-39491188357072....25,501
1939-40401285442602....11,676
Totals from inception to 31st March, 1940.2,9352,0812,4483613138466135,479

ROADING COSTS.

The following statement of the Dominion's annual roading bill has been compiled 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 on1934-35.1935-36.1936-37.1937-38.1938-39.
Maintenance—£££££
  Main highways1,501,5391,632,4531,314,6941,482,5311,952,732
  Urban roads and streets392,032406,775424,201463,533453,282
  Other roads955,4091,098,3661,038,2041,164,9721,305,723
    Totals2,848,9803,137,5942,777,0993,111,0363,711,737
Construction—     
  Main highways411,798624,9431,622,9822,565,8223,331,950
  Urban roads and streets944,235903,918938,692982,0081,308,173
  Other roads1,137,6001,102,7301,443,1851,605,6482,025,818
    Totals2,493,6332,631,5914,004,8595,153,4786,665,941
Interest and sinking fund charges—     
  Main highways612,129605,403605,925642,695734,507
  Urban roads and streets554,400580,979573,423580,773572,439
  Other roads1,136,5151,122,4081,047,3941,135,1161,248,346
    Totals2,303,0442,308,7902,226,7422,358,5842,555,292
    Grand totals7,645,6578,077,9759,008,70010,623,09812,932,970

In view of the extent of motor traffic, and of the road expenditure necessitated thereby, the following recapitulation of returns from special taxation of motor-vehicles is of direct interest:—

Yield of1935-36.1936-37.1937-38.1938-39.

* Share for highway purposes only (first 6d.).

 ££££
Tire-tax94,071139,723159,928150,350
Motor-spirits tax*1,596,4071,866,1802,108,7272,289,119
Fees, &c., under Motor-vehicles Act, 1924431,896493,626563,358612,395
Heavy-traffic fees232,094266,603305,693346,868
Drivers' licenses66,26075,87583,55791,054
Mileage-tax1,7563,5766,6988,124
Totals2,422,4842,845,5893,227,9613,497,910
Proportion per cent. of total to total road bill shown in preceding table30.031.630.427.0

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, 1936, 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,
1936.1937.1938.1939.1940.
Cars152,475173,099194,217216,516223,878
Taxis1,7321,6971,7551,6951,588
Service cars699703695659622
Omnibuses5736557878731,007
Trucks, 2 tons and under24,32226,64427,09228,62128,596
Trucks, over 2 tons18,06820,38122,04223,75924,335
Motor-cycles24,09924,34723,02021,25919,346
Tractors and traction-engines1,2711,3181,8272,7273,432
Trailers4,1595,7647,86510,59713,042
Others8491,1401,0271,2251,680
Totals228,247255,748280,327307,931317,526

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, 1940, was 37,750, consisting of 22,986 1938-39 and 14,764 1937-38 registrations. Dormant registrations of cars as at the 31st March of the last five years have been approximately as follows: 1936, 7,900: 1937, 7,900; 1938, 10,900; 1939, 12,500; and 1940, 15,500.

The following figures show the number of motor-vehicles licensed as at 30th June, 1940, 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
Cars121,36657,752179,118
Light trucks (i.e., 2 tons and under, laden)14,6577,38622,043
Heavy trucks (i.e., over 2 tons, laden)12,9315,89318,824
Passenger trucks8885521,440
Omnibuses496193689
Taxis1,0614421,503
Rental cars313188501
Private-hire cars9271163
Service-cars333216549
Trailers3,1162,4765,592
Dealers' cars8343891,223
Local authority road vehicles2,1731,9954,168
Government vehicles2,8381,3844,222
Motor-cycles7,0533,67210,725
Dealers' motor-cycles513081
    Totals, 30th June, 1940168,20282,630250,841
    Totals, 30th June, 1939172,74285,428258,170

The decline in the number of motor-vehicles licensed from 258,170 as at 30th June, 1939, to 250,841 as at the same date in 1940 is restricted mainly to cars and motor-cycles, the decreases for these types of vehicle being 7,384 and 815 respectively. Light trucks also show a small decrease, but this is offset to a large extent by an increase in heavy trucks. Other classes of vehicles to show increases are local authority road vehicles and Government vehicles. In this connection it may be mentioned that shortly after the outbreak of war in September, 1939, restrictions on the use of motor-spirits were imposed. These restrictions were lifted as from 1st December, but were reimposed on 1st February, 1940. No doubt the limited quantity of motor-spirit available to owners of private cars and motor-cycles was responsible in some measure for the decreases shown for these two classes of vehicle.

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.

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,
1936.1937.1933.1939.1940.
Motor-cars—     
  United Kingdom9,39614,55616,61016,45210,936
  U.S.A. or Canada10,02311,13312,91911,8846,735
  Other countries50107308601436
Commercial vehicles—     
  United Kingdom1,5151,9552,0321,9611,394
  U.S.A. or Canada3,7854,9915,6975,4194,345
  Other countries1,1452,0532,6843,4824,110
Motor-cycles—     
  United Kingdom1,8972,6002,7142,0051,587
  U.S.A. or Canada486419302226223
  Other countries389224

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 1936, 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 1940. In the financial year 1938-39 local bodies received £316,871 by way of heavy-traffic fees. Present annual license fees under the heavy motor-vehicle regulations range from £2 11s. to £63 15s. for a pneumatic-tired vehicle, and from £3 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 force in 1928, and have been reissued by the Transport Department as the Traffic Regulations 1936.

The Public Works Act, 1928, contained extensive provisions relating to the construction, maintenance, and use of roads. Almost simultaneously came the Motor-vehicles Insurance (Third-party Risks) Act, 1928—vide Section XXIXB (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 were described on pages 344-346 of the 1940 issue of the Year-Book, but considerations of space prevent their repetition on this occasion. There have been, however, two important amendments in connection with, the licensing of goods services. Formerly, certain areas in some of the larger centres were exempt from the operation of the licensing system, but these exempted areas have since been abolished and all goods services conducted for hire or reward now require to be licensed except those carried on solely—

  • (1) In connection with funerals; or

  • (2) In connection with the repair or wreckage, of vehicles which have met with mishap; or

  • (3) In the carriage of newspapers.

The second amendment provides that goods-services operating on a route parallel to 30 miles or more of Government railway shall be licensed even if they are not conducted for hire or reward. Exceptions may be made in the case of certain services.

PASSENGER-SERVICE LICENSES.

For the year ended 31st March, 1940, the number of passenger services licensed was 897, of which 822 were in the four licensing districts and 75 in the four metropolitan areas.

The main passenger-service statistics for the years 1937-38 and 1938-39 are as follows:—

 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-mile.TotalPer 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.
  Passengers999,92710.21195,88711.28
  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. 1940:—

Received.Granted.Refused or Withdrawn.Adjourned.
New applications1,8391,588107144
Renewal applications2,2072,1262853
Amendment applications66952110048
Transfer applications4303881428
Total applications5,1454,623249273
Number of goods-service licenses reviewed161
Number of goods-services licensed at 31st March, 19404,654

During the year ended 31st March, 1940, 8,890 temporary licenses were issued.

Statistics of goods-services operating under license during the years 1935-36, 1936-37, 1937-38, and 1938-39 are given:—

 1935-36.1936-37.1937-38.1938-39.
Vehicle-miles covered49,465,00056,629,00070,295,00080,062,000
 ££££
Operating-costs1,805,0002,308,0003,158,0003,921,000
Revenue2,070,0002,679,0003,583,0004,425,000
Net profit265,000371,000425,000504,000
Capital and reserves1,289,0001,771,0002,445,0003,147,000
Other liabilities635,000761,0001,207,0001,440,000

Total operating-expenses in 1938-39 averaged 11.74d. per vehicle-mile, while revenue averaged 13.28d.

It should be noted that the licensed goods-services engaged only a small portion (9,000 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. 105-106). 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,
1933.1934.1935.1936.1937.1938.1939.1940.
Collisions, motor-vehicle with—        
  Pedestrian4526465654585754
  Motor-vehicle3921364556364051
  Train3910411111114
  Tram1..222311
  Bicycle1615232725333342
  Horse-vehicle or horse under control6431..111
  Fixed object56791132168
  Straying stock1223..1....
Went over hank91822189262624
Otherwise1524232635284032
    Totals140125174191203229225227

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, 1940, 4,147 such accidents were reported, resulting in 248 fatalities, and injuries to 5,341 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, 1938-39, and 1939-40 relate to accidents involving death or personal injury. Figures showing types of accidents for the years ended 31st March, 1938, 1939, and 1940 are as follows:—

Nature of Accident.No. of Accidents.
1937-38.1938-39.1939-40.
Collisions—      
  Between two or more motor-vehicles1,338..1,494..1,381..
  Between motor-vehicle and bicycle997..1,002..931..
  Between motor-vehicle and pedestrian841..880..900..
  Between motor-vehicle and fixed object301..175..161..
  Between motor-vehicle and animal or horse-vehicle46..49..41..
  Between motor-vehicle and railway-train32..45..43..
  Between motor-vehicle and tram22..34..29..
  Multiple and other collisions39..145..115..
  3,616 3,824 3,601
Non-collisions—      
  Drove off road125..118..116..
  Went over bank115..195..173..
  Overturned on roadway148..194..186..
  Person fell from vehicle64..42..47..
  Other5..29..24..
  457 578 546
Total accidents 4,073 4,402 4,147

From a study of the detailed statistics for 1939-40 the following main features are worthy of comment:—

  • (a) Of the fatal accidents, 21 per cent. involved no collisions, 24 per cent. comprised collisions with a pedestrian. 22 per cent. collisions with another motor-vehicle, and 18 per cent. collisions with a bicyclist.

  • (b) Of these, 52 per cent. happened at night or at dusk.

  • (c) The only type of road-user whose death roll has seriously increased is the bicyclist. There were 42 bicyclists killed, as compared with 33 on each of the two previous years.

  • (d) In the urban areas the number of fatal accidents decreased by 6 per cent., but in the rural areas there was an increase of 8 per cent. as compared with 1938-39.

  • (e) The deaths in relation to petrol consumption show a decrease of 14 per cent. since 1935, and in relation to the number of vehicles a decrease of over 13 per cent.

  • (f) The number killed per 100,000 population amounted to 15, and the number injured to 329.

  • (g) Of all injury accidents, 34 per cent. were collisions between motor-vehicles, 23 per cent. were collisions with a bicyclist, 22 per cent. were collisions with a pedestrian, and only 13 per cent. were non-collisions.

  • (h) Of all accidents, 62 per cent. were attributed directly to the motor-driver, 5 per cent. to the motor-vehicle, 28 per cent. to other road-users; 2 per cent. to the road; 1 per cent. to adverse weather conditions; and 2 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 bicyclist in 52 per cent., and road, weather, and miscellaneous causes in 2 per cent. In the case of motor-vehicle- pedestrian accidents, the motorist was deemed to be mainly at fault in 24 per cent. of the accidents, the pedestrian in 74 per cent., and road, weather, and miscellaneous causes in 2 per cent.

  • (i) Where the driver was intoxicated or to any extent under the influence of liquor 1 accident in 9 proved fatal, as compared with the general rate of 1 fatal accident for every 18 non-fatal.

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 (b) 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 prepared by the Public Works Department.

On the 31st March, 1940, there were 39 licensed public aerodromes in the Dominion, 3 landing-grounds for which temporary licenses had been issued, and 10 unlicensed grounds—emergency-landing grounds. Due to the war, the licenses of 10 public aerodromes which would normally have been in use were allowed to lapse.

Investigation and construction work may be summarized as follows:—

Preliminary investigations and construction surveys during year14
Licensed fields for commercial and general use— 
(i) Constructed and licensed51
(ii) Licensed, but extension and development proceeding6
(iii) Construction in hand—portion available—not licensed5
(iv) Construction in hand—not licensed4
 66
Emergency-landing grounds— 
(i) Constructed and in use10
(ii) Under construction2
 12

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 development of the aircraft industry within the Dominion has made progress during the past year, and production of training types of aircraft at the de Havilland Co.&s works at Wellington is nearing a stage at which the major portion of the airframe will be manufactured by Dominion workmen.

The manufacture of aeronautical materials such as dopes, aircraft finishes, and timber cements has now reached a production basis, and further development along these lines may be expected. An increasing range of replacement parts for both airframes and engines of different types is now being produced locally from imported materials; and development work is proceeding for the local manufacture of certain materials to satisfy the rigid requirements associated with aircraft.

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.

Since December, 1935, commercial aviation has been 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. The first major air services were operated across Cook Strait between Wellington and Blenheim and Nelson, and the subsequent extension of services up to the outbreak of war in September, 1939, covered nearly the whole of the Dominion. The year 1940 saw the commencement of two overseas services, one to and from Australia, and the other to and from Honolulu.

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.

During the year 1939-40 the following companies operated regular services in the Dominion:—

  • Air Travel (N.Z.), Ltd.

  • Cook Strait Airways, Ltd.

  • Union Airways of New Zealand, Ltd.

Shortly after the declaration of war in September, however, a total of ten aircraft used by the two latter companies was requisitioned for use by the R.N.Z.A.F., and many of the commercial pilots with reserve obligations were also called up for service duties. As a result of these steps Cook Strait Airways ceased operations on 9th November, 1939, its services being taken over on a reduced time-table by the Union Airways, Ltd., and Air Travel, Ltd., and between September and November Union Airways, Ltd., reduced its services to tri-weekly trips on the Auckland-Dunedin main trunk route.

The summarized results of the operations of the commercial air services are given in the following tables. In the 1940 and earlier editions of the Year-Book somewhat detailed descriptions are given of the activities of the individual companies:—

SUMMARY OF OPERATIONS OF SCHEDULED AIR SERVICES BY COMPANIES.

Company.FromMileage.Passengers.Freight.Mail.
    lb.lb.
Air Travel (N.Z.), Ltd.18/12/34460,0674,830112,604252,461
Cook Strait Airways, Ltd.30/12/351,752,45191,753290,538144,628
Union Airways of New Zealand, Ltd.16/1/362,769,55871,545116,084484,920
Totals..4,982,076168,128519,226882,009

SUMMARY OF OPERATIONS OF SCHEDULED AIR SERVICES BY YEARS.*

Mileage.Passengers.Freight.Mail.

* Includes operations of East Coast Airways for years 1936 to 1938.

Year ending 31st March—  lb.lb.
1936346,1719,10626,12319,431
1937776,93824,25144,074111,377
19381,331,10043,78281,853216,238
19391,574,39553,039166,278316,380
19401,326,23451,802233,018234,989

In addition to the licenses for their regular services, the previously mentioned companies have been granted taxi licenses by the Minister of Transport. These permit the companies 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 have also been held by four small aviation companies specializing in air-taxi work as well as by aero-clubs.

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. 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.

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.

TASMAN EMPIRE AIRWAYS, LTD.

Date commenced operations30th April, 1940.
Number of aircraft2.
Description of aircraftShort “Empire” S.30 flying-boats.
Total seating-capacity38.
Route and frequencyAuckland-Sydney. Normally once weekly in each direction, but twice weekly in each direction during trips of Pan-American Airways.

The first survey of a route from the United Kingdom to New Zealand was undertaken by Imperial Airways, Ltd., of London, in 1937, and following this, negotiations were entered into between the United Kingdom, Australian, and New Zealand Governments with the object of providing an organization to control a proposed trans-Tasman Air Service. As a result of this a company representing the three Governments, and known as Tasman Empire Airways, Ltd., was registered early in May to operate this service.

The cost of the initial ground equipment was borne by each of the Governments concerned, and the, initial share capital of the company is held 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 was proposed that the Government shall hold 20 per cent. and the 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 of 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 has been 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.

PAN-AMERICAN AIRWAYS.

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 prepared the necessary bases at Pago Pago and Auckland (Mechanics Bay). 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. The first southern trip of the clipper, which left Honolulu on 10th January, unfortunately ended in disaster off Samoa on the 11th January, 1938; and services were discontinued until the company obtained delivery of a larger type of flying-boat. The service was resumed in 1940 on a fortnightly schedule, the first flight terminating at Auckland on 18th July, 1940.

METEOROLOGICAL SERVICE.

The Dominion Meteorological Office has been considerably expanded to meet the special needs of commercial aviation. The number of reporting times has been increased to six a day by the addition of reports at 6 p.m. and midnight. This latter step has been taken to provide more adequate meteorological protection for flying-boats operating across the Tasman Sea and Pacific Ocean, and, for the same purpose, a Meteorological Office has been opened at the flying-boat base at Mechanics Bay, Auckland.

For general cross-country flying special aviation broadcasts* are issued from Stations 2YA and 4YA at 6.50 a.m., 10 a.m., and 1 p.m., while commercial aircraft on regular schedules are given, by telephone from Wellington, individual forecasts and reports at various points on their routes.

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. The payment of subsidy was discontinued on the institution of the Civil Reserve scheme, by which the Government entered into an agreement with approved clubs for the training of civil reservists and Air Force candidates. On the outbreak of war in September, 1939, the Government took over all aircraft suitable for training purposes, so that the training operations of the clubs had, in most cases, to be suspended. In addition to their instructional activities, the clubs had undertaken most of the air-taxi work in New Zealand.

* Now suspended as a war precaution.

The following tables show, in summarized form, the commercial and training activities of the aero clubs. In the 1940 and earlier editions of the Year-Book will be found more detailed statistics of individual clubs:—

COMMERCIAL OPERATIONS, 1928-40.

Period.Aircraft in Use.Trips.Passengers.Hours flown.Miles flown.
1928 to 31st March, 1933178,09010,1272,246164,458
Year ending—     
31st March, 1934193,5396,1461,542122,313
31st March, 1935394,4327,7421,814149,395
31st March, 1936344,4877,2251,542129,308
31st March, 1937325,4499,0731,523130,102
31st March, 1938484,3128,3031,569148,953
31st March, 1939623,9627,2631,152110,917
31st March, 1940661,5902,44148647,817
    Totals..35,86158,32011,8741,003,263

TRAINING OPERATIONS, 1928-40.

Period.Clubs operating.Membership.Aircraft in Use.Under Instruction.Hours flown.Licenses current.
Associate.Flying.Dual.Solo.Dual.Solo.Private.Commercial.

* Figures not available.

1928 to 31st March, 193310**32**6,05116,18527518
Year ending—          
31st March, 193410**35**2,2986,74,531521
31st March, 1935111,86948339123432,6607,82331522
31st March, 1936112,56261343171583,2068,84238919
31st March, 1937112,45784039251763,9529,33048330
31st March, 1938122,675915582431185,74811,97853222
31st March, 1939132,74294865275896,21313,44353519
31st March, 1940152,791670661661034,1027,6384013

The stated expenditure on civil aviation for the years 1932-33 to 1938-39 has been as follows:—

 £
1932-334,243
1936-3721,802
1933-341,813
1937-3835,490
1934-3511,316
1938-3946,057
1935-3613,171

The sum voted for 1939-40 was £42,015.

LICENSES.

The licenses and certificates current at 31st March, 1940, were as follows:—

Pilots “A” licenses447
Pilots “B” licenses26
Aircraft Navigators' licenses9
Ground Engineers' licenses64
Aerodrome licenses42
Certificates of Registration (aircraft)39
Certificates of Airworthiness (aircraft)25

CIVIL AIRCRAFT.

In addition to the aircraft of the aero clubs and commercial companies there are a number of privately-owned aircraft in the Dominion. The following are the numbers of each type registered on 31st March, 1940:—

Commercial aircraft13
Aero club aircraft7
Privately-owned aircraft16
Experimental aircraft3
 39

Seventy-two aircraft operated by the aero clubs and companies were requistioned by the Royal New Zealand Air Force.

The following is an analysis, according to types, of the aircraft entered in the Dominion register as at 31st March, 1940:—

* Aircraft of American manufacture.

D.H. 603
D.H. 80A2
D.H. 833
D.H. 902
Avro Avian2
*Cub5
Desoutter1
Fleet1
 
* Lockheed Electra4
Monospar S.T. 251
* Rearwin2
Spartan1
* Waco1
Whitney Straight1
Pou-de-ciel3
Miscellaneous7
..39

Of the above total of 39 aircraft, 32 are single-engined and 7 are twin-engined machines.

AIR MAILS.

INLAND.

From 1920 onwards various attempts were made to operate air-mail services, but it was not until the inauguration of a service between Hokitika and South Westland in January, 1934, that a 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.

On the 16th March, 1936, the first regular air-mail services linking up the larger centres of population were established between Palmerston North and Dunedin and between Nelson, Blenheim, and Wellington. As air services increased in frequency and extent the air-mail facilities were correspondingly expanded. The outbreak of war in September, 1939, resulted in the curtailment of air-passenger services, and of necessity the air-mail services were also reduced.

The rate of postage for inland air-mail correspondence was originally 2d. per ounce, but since October, 1939, has been 3d. per half-ounce. For parcels, up to 28 lb., the rates range from 2s. 2d. to 11s.

The number of letters and parcels carried by air in New Zealand since the regular air services were inaugurated is shown hereunder:—

Year ended 31st March—Letters.Parcels.
1937934,6414,226
19381,688,6418,340
19392,382,42713,606
19401,884,19111,662

OVERSEAS.

Although mails had been carried by air across the Tasman on the occasions of special flights in 1934, and one mail was despatched by air across the Pacific, via Pago Pago and Honolulu, to the United States of America in January, 1938, permanent facilities were not established for the despatch of mails by air from New Zealand until 1940. Prior to that air mails had been conveyed by surface route to Australia to connect with the Empire air service to the United Kingdom. The first flight of the trans-Tasman service took place on 30th April, 1940, and on 20th July, 1940, a trans-Pacific service commenced to the United States of America, via Noumea, Canton Island, and Honolulu. The latter service, linking up with the trans-continental and trans-Atlantic services, provides, now that the United Kingdom — Egypt section of the Empire service has been suspended, the only all-flying route to the United Kingdom.

From July, 1938, to September, 1939, an “all-up” Empire service operated at the rate of 1½d. per ounce for letters, but on the outbreak of war there was a reversion to the former surcharge of 1s. 6d. per half-ounce. The principal rates operating in September, 1940, were as follows:—

Australia5d. each half-ounce.
United Kingdom(Empire service), 1s. 6d. each half-ounce.
United Kingdom(Trans-Pacific - Trans-Atlantic service), 5s. 9d. each half-ounce.
United States of America(Trans-Pacific service), 4s. each half-ounce.
Honolulu(Trans-Pacific service), 2s. 6d. each half-ounce.

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 the Air Department.

Prior to the declaration of war on 4th September, 1939, the Royal New Zealand Air Force consisted of—

  • (i) The Regular Air Force;

  • (i) The Regular(ii) The Air Force Reserve; and

  • (i) The Regular(iii) The Territorial Air Force.

A Civil Reserve had also been established.

The Regular Air Force was distributed between the administrative headquarters and the two Royal New Zealand Air Force stations at, Hobsonville and Wigram. Territorial squadrons had been established at Auckland, Wellington, and Christ-church, and buildings for the Territorial Flight at Dunedin had been commenced. The projected operational stations at Ohakea and Whenuapai were in course of construction, the former Hearing completion. The Railway workshops scheme for training flight mechanics and riggers was making satisfactory progress. Buildings at the Railway workshops at Lower Hutt had been completed, and those at Auckland, Christchurch and Dunedin were nearing completion.

Immediately war was declared the Air Force was mobilized: Territorial and Air Force Reserves were called up and, in addition, a number of personnel of the Civil Reserve who, by virtue of their civil trade, were suitable for immediate employment, were called up and posted to Service units.

Before the war an agreement had been entered into with His Majesty&s Government in the United Kingdom for the training of pilots, observers, and air gunners for the Royal Air Force, and steps were immediately taken to implement this scheme. A later agreement, however, brought the Empire Air Training Scheme into being. By this scheme New Zealand agreed to set up an organization capable of training the following personnel each year: 880 fully-trained pilots, 520 pilots trained to elementary standard, 546 observers (initial training only), and 936 air gunners (initial training only). The agreement provided for the training of the latter three classes in Canada.

A central organization was set up to deal with the recruiting of personnel for technical training, and for the selection of candidates for training as pilots, observers, and air gunners. A special educational scheme was also established for the purpose of bringing personnel selected for aircrew duties up to the necessary standard in mathematics and elementary science in the interval between their selection and their entry into the Ground Training School. Facilities were also made available for the training of those selected as wireless operators prior to their entry into the Service schools.

The provision of the additional Air Force stations required for the war-training organization involved some change of plans, the enlargement of existing stations, the construction of new ones, and a considerable expansion of the works and buildings programme generally.

The Royal New Zealand Air Force is established on a wartime basis as follows: Administrative Headquarters, Wellington; flying training schools at Wigram (Christchurch), Woodbourne (Blenheim), and Ohakea; elementary flying training schools at Taieri (Mosgiel), New Plymouth, and Harewood (Christchurch); a ground training school at Levin; a communications, flight, and technical training centre at Rongotai (Wellington); a general reconnaissance squadron at Whenuapai; and an aircraft depot at Hobsonville (Auckland).

Chapter 16. SECTION XVI..—POSTAL AND TELEGRAPHIC.

POSTAL BUSINESS.

AT the 31st March, 1940, there were 1,686 post-offices in New Zealand, and at the same date there were 2,579 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.
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
1939312,603,5758,510,957219,150,91241,738,1129,473,374

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 1939 are as follows:—

 Posted.Delivered.
Letters and letter-cards154,819,534157,784,041
Post-cards3,767,5074,743,450
Accounts, circulars, packets, &c.105,237,805113,913,107
Newspapers19,068,81822,669,294
Parcels4,663,3794,809,995

These figures include registered articles, of which 2,580,552 were posted in the Dominion and 2,680,782 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.Newspapers.Parcels.
193586.462.2761.579.52159.82
193690.052.1664.089.77166.06
193792.862.1460.179.01164.18
193898.012.5572.1812.27185.01
193995.072.3167.4911.71176.58

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 32,382 on the 31st March, 1940.

AIR-MAIL SERVICE.

Details of the New Zealand air-mail service are given on pages 306-7 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.
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
1939133,349845,166736,262139,67944,771173,077

The figures show a great preponderance of inward parcels. Of the parcels received from overseas in 1939 no fewer than 48,827 came from Great Britain (including those from foreign countries via Britain), while 28,446 came from the United States and 40,882 from Australia and foreign countries via Australia. These countries, to which 11,597, 3,684, and 21,634 parcels respectively were despatched, also ranked highest among countries to which parcels were sent from New Zealand.

NEWSPAPERS.

There are (June, 1940) 280 publications on the Post Office Register of Newspapers. Of these, some 51 are published daily, 13 being morning papers and 38 evening papers. Twenty appear three times per week, 15 twice per week. 63 weekly, 9 fortnightly, 118 monthly, and 4 at irregular intervals.

MONEY-ORDERS

Of the total money-orders issued in New Zealand during 1939, sonic 160,420, representing an aggregate value of £513,159, were for payment overseas. Of that amount, £117,063 was payable in the United Kingdom, £381,059 in other Empire countries, and £15,036 in foreign countries. Money-orders issued overseas for payment in New Zealand in 1939 numbered 32,991, the total value represented being £96,067. Of this amount £32,233 was issued in the United Kingdom, £57,196 in other Empire countries, and £6,637 in foreign countries.

Calendar Year.Number of Offices at end of Year.Money-orders issued.Money-orders paid.
Number.Value.Commission.Number.Value.
   ££ £
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
1939940911,4845,094,36471,879784,0874,689,789

POSTAL NOTES.

The popularity of the postal-note system for remitting small amounts is clearly illustrated in the table given below:—

Calendar Year.Number of Offices at end of Year.Money-orders issued.Money-orders paid.
Number.Value.Commission.Number.Value.
   ££ £
19361,1183,827,4171,293,95533,1463,811,1811,257,622
19371,1273,833,2881,378,38734,3263,824,4061,340,628
19381,1493,746,5601,454,79335,2583,776,7121,435,907
19391,1493,835,4001,485,42635,9383,825,6811,446,344
19401,1613,374,8521,323,39837,9153,389,4081,290,509

British postal orders issued in the Dominion during the year ended 31st March, 1940, numbered 93,415, of a value of £37,931. Those paid numbered 18,754, and represented £8,227 in value.

TELEGRAPH AND TOLL SERVICES.

Up to the 31st March, 1940, a total sum of £11,465,555 had been expended on telegraph construction, including the construction of telephone exchanges. The amount expended during the financial year 1939-40 was £416,778.

During the year ended 31st March, 1940, the revenue from telegrams and toll communications was £1,139,528, to which should be added £1,633,191 revenue of telephone exchanges and £82,365 miscellaneous receipts, making a total telegraph and telephone revenue of £2,855,084.

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.
    ££££
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
194020,961,24323,30020,984,5431,221,8931,633,1911,4902,856,574

As from 1st October, 1939, the charge for ordinary telegrams on week-days 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. On Sundays and departmental holidays the rate for ordinary telegrams is 1s. for six words or less, and 1½d. for each additional word, the total charge being taken to the next penny where necessary. An additional charge of 8d. is made for an urgent telegram, irrespective of the number of words contained in the message. (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, 1939, New Zealand ranks third in number of telephones per 100 of population. Leading countries in this respect are: United States of America, 15.37; Sweden, 12.73: New Zealand, 12.09; Canada, 12.13; Denmark, 11.61; Switzerland, 10.72; Australia, 9.14; Norway, 8.03; United Kingdom, 6.77; Germany, 5.20; Netherlands, 4.97; Belgium, 4.95; Finland, 4.79; France, 3.79.

At the 31st March, 1940, there were 347 telephone exchanges in the Dominion. Of this number, 327 are of the magneto type, 2 common battery, and 18 automatic. The automatic exchanges are: Whangarei, Auckland, Hamilton, Napier, Hastings, Dannevirke, Stratford, Hawera, Wanganui, Marion, 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, 1940:—

 Capacity of Equipment installed. No.Equipment in use. No.
Individual lines84,13074,170
Party-lines—  
  Two-party5,0004,151
  Four-party2,3001,792
  Multi-party600384
   
Individual-line stations 72,640
Party-line stations 16,683
Total of main stations 89,323
Extension stations 35,983
Total number of automatic-telephone stations connected 125,306

The following table indicates the growth of the New Zealand telephone-exchange service (the figures are as at 31st March, of each year shown):—

1932.1933.1934.1935.1936.1937.1938.1939.1940.
*Represents separate instruments (excluding private stations) connected to main telephone system.
Exchanges349349349349348348349348347
Subscribers, main stations125,826120,511119,689121,841127,056135,853145,370155,038162,508
Toll and service stations3,9643,9824,0294,1074,1464,3134,5074,5704,647
Public call offices7457507877968709171,0211,1031,231
Extension stations26,43726,51427,17828,66330,59833,83837,68942,00145,883
Telephone-station totals*156,972151,757151,683155,407162,670174,921188,587202,712214,269

The total number of telephone-stations shows an increase of 57,297 or 36 per cent., during the period covered by the table. The increase in subscribers' main stations during the same period amounted to 36,682, or about 29 per cent., while extension stations show an increase of 19,446, or over 73 per cent. The demand for public call offices is clearly revealed in the table, these showing an increase from 745 in 1932 to 1,231 in 1940. The number of telephone-stations has increased rapidly since 1936, the net gains for the last four years being 12,251, 13,666, 14,125, and 11,557 respectively.

In addition to the above, there are 3,600 stations connected by private telephone-lines with departmental toll-stations, making a grand total of 217,869 telephone-stations in New Zealand on the 31st March, 1940.

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, 1940, the number of party-line connections was 15,470, with a total of 60,111 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 1,231 such instruments in use in the Dominion at the 31st March, 1940, the charge in 1,179 cases is 1d.; in seven, 2d.; and in forty-five, 3d. The revenue of these slot telephones during the year ended 31st March, 1940, was £66,237.

The telephone-exchange system included on the 31st March, 1940, 17,141 miles of pole line and 619,376 miles of wire.

The capital expenditure on the equipment, &c., of the telephone exchanges up to the 31st March, 1940, was £9,675,082, equal to an average cost of £45 3s. 1d. 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-one stations under the control of the New Zealand Government, the principal being those of 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, Palmerston, 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.
   £  £
193611,332149,6864,34518,703219,9793,996
193714,352191,2745,30823,691293,1524,938
193814,557199,7255,51524,855321,4995,012
193914,749201,9015,59127,440363,4525,111
19408,843160,7433,11315,694218,2962,717

The foregoing table does not include free (service) messages.

Prior to the outbreak of war in September, 1939, facilities existed for the dispatch of radio-telegrams to vessels at sea, and special rates operated for vessels registered in New Zealand, with further reductions for those engaged in regular passenger services. Facilities still exist for communication with foreign vessels, but communication with British vessels has been suspended. Likewise a public radio-telephone service which commenced operation to Australia in November, 1930, and to the United Kingdom and Europe in July, 1931, has also been suspended.

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, Musick Point, New Plymouth, Palmerston North, Napier, Wellington, Blenheim, Nelson, Westport, Hokitika, Christchurch, Taieri, and Jackson's Bay. (Stations at Tauranga, Gisborne, and Greymouth have been temporarily closed.)

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.

The aeradio station at Musick Point is used for communication with aircraft engaged in the Trans-Tasman and Trans-Pacific services.

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. All such stations have been temporarily closed under the War Emergency Regulations 1939.

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 1870, this cable being duplicated in 1890. Subsequent developments were the opening of the Pacific cable to Vancouver in December, 1902, with a connection to Australia; the operation of a further cable to Australia in 1912, and the duplication of the Pacific cable in 1926. In 1929 a merger of British cable and wireless companies resulted in the overseas cable services being brought under the control of one authority, and as a consequence one cable to Australia was lifted, and the route of another was altered. All overseas cables now terminate at the one centre.

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.1938-39.1939-40.
 ££
Postages1,420,5451,317,628
Money-order and postal-note commission92,48888,745
Private-box and bag rents and rural delivery fees58,75555,734
Miscellaneous receipts521,231558,865
Paid telegrams341,487353,385
Paid tolls695,731786,143
Telephone exchanges1,557,3271,633,191
Totals£4,687,564£4,793,691
PAYMENTS.1938-39.1939-40.
 ££
Salaries2,322,7622,355,898
Conveyance of mails by sea and air123,89499,431
Conveyance of inland mails150,691153,249
Conveyance of mails by railway105,193102,937
Maintenance of telegraph and telephone lines248,436253,084
Depreciation Fund255,189139,000
Motor services and workshops118,196100,753
Miscellaneous562,094558,435
Interest on capital liability588,000639,000
Sick-benefit Fund6,3107,162
Maintenance of Post and Telegraph buildings48,59336,957
Totals£4,529,358£4,445,906

The year 1939-40 commenced with a credit balance of £40,611. Of the gross balance of £388,395 at the end of the year, £347,000 was invested, £2,928 paid to Consolidated Fund, and £38,467 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.
 ££ ££
19313,707,4203,304,64819363,550,3363,141,884
19323,715,2292,794,56519373,886,0983,622,425
19333,293,9322,688,11919384,302,2444,045,762
19343,200,4142,648,60019394,687,5644,529,358
19353,342,9782,844,55419404,793,6914,445,906

VOLUME OF BUSINESS.

An indication of the volume of business handled during recent years may be obtained from a comparison of the value of transactions as follows:—

 £ £
1934-35205,000,0001937-38295,000,000
1935-36220,000,0001938-39286,000,000
1936-37236,000,0001939-40285,000,000

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, 1940, was as follows: Permanent, 11,846; temporary, 938: total, 12,784. In addition there were 1,576 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 90 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 66,390,546 acres. Of this total, 42,927,828 acres were returned in 1940 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 1939 and 1940.

 1939.1940.

*Includes interests acquired by the Crown but not proclaimed, and certain areas alienated by sale to Europeans.

† Increase of 350 acres revealed by resurvey.

 Acres.Acres.
Total area sold or granted and held on freehold21,911,38021,954,772
Total area reserved for public purposes15,897,88315,837,468
Total area of Crown lands leased under all tenures (exclusive of reserves leased by the Crown)16,755,07416,697,094
Total area of Crown land available for future disposal2,086,4752,278,645
Total area of Native land4,544,631*4,536,011*
Land unfit for settlement, including rivers, lakes, roads, &c.5,194,7535,086,556
Totals66,390,19666,390,546

The number of holdings and percentages of total holdings in occupation, grouped according to size, as returned in the years specified, are given below:—

 Number of Holdings.Percentages of Total.
Area, In Acres.1936.1937.1938.1939.1940.1936.1937.1938.1939.1940.
1 and under 1010,90011,02411,06711,20411,20612.8912.8912.9213.0312.98
10 and under 5014,56314,75514,79014,74514,68817.2217.2617.2617.1517.02
50 and under 10012,17912,51612,51112,57412,68214.4114.6414.6114.6314.70
100 and under 20016,04916,23216,32316,43616,58518.9818.9919.0519.1219.22
200 and under 3209,5429,6209,6259,7539,87711.2911.2511.2411.3411.44
320 and under 64010,16710,20410,27510,21710,20812.0311.9311.9911.8811.83
640 and under 1,0004,1624,1754,1754,1384,1124.924.884.874.814.76
1,000 and under 5,0005,9355,9095,8635,8705,8997.026.916.846.836.84
5,000 and under 10,0005515535505495480.650.650.640.640.63
10,000 and under 20,0002952882942892980.350.360.340.340.35
20,000 and under 50,0001461481431431460.170.170.170.170.17
50,000 and over58585855550.070.070.070.060.06
Totals84,54785,48285,67485,97386,304100.00100.00100.00100.00100.00

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 1,047 in 1940, account for over 40 per cent. of the total area of occupied land.

Sizes of Holdings, in Acres.1936.1937.1938.1939.1940.
 Acres.Acres.Acres.Acres.Acres.
1 and under 1050,66651,23851,47352,18951,972
10 and under 50370,449374,767375,499375,496373,144
50 and under 100880,972905,258906,369911,776920,201
100 and under 2002,245,9622,269,6632,282,4462,299,1712,319,662
200 and under 3202,388,6972,410,0762,409,3682,440,3442,473,124
320 and under 6404,612,4344,619,1484,648,4424,618,5044,612,778
640 and under 1,0003,306,0863,315,0203,322,3433,300,1443,272,236
1,000 and under 5,00011,533,34911,509,79611,463,37911,536,86111,506,934
5,000 and under 10,0003,779,1283,786,1803,768,0033,778,5593,759,280
10,000 and under 20,0004,211,4344,039,8474,253,1304,050,8234,159,916
20,000 and under 50,0004,559,7234,543,6964,424,1454,443,9054,547,248
50,000 and over5,343,1935,375,2045,256,0925,093,5004,931,333
Totals43,282,09343,199,89343,160,68942,901,27242,927,828

CLASSIFIED HOLDINGS.

Particulars of occupied holdings for 1935-36 and previous years, according to the purpose for which they were used, will be found on page 372 of the 1940 Year-Book. No further classification on these lines has since been made.

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.

Tenure.1936.1937.1938.1939.1940.
 Acres.Acres.Acres.Acres.Acres.
Freehold20,814,79920,904,54621,222,60521,275,38721,294,546
Leasehold22,467,29422,295,34721,938,08421,625,88521,633,282
Total area occupied43,282,09343,199,89343,160,68942,901,27242,927,828

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, 1940, 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 crops599,768*1.40
In green and root crops649,965*1.51
In fallow112,1950.26
In sown grasses and clovers—  
  Cut for hay, seed, or ensilage706,3631.65
  Not cut for hay, seed, or ensilage16,632,60838.75
In vineyards and orchards21,3680.05
In passion-fruit vines131..
In hop-vines595..
In market gardens, nurseries, and seed-gardens9,8540.02
In tung trees3,9260.01
In private gardens and pleasure-grounds82,6700.19
In plantations839,9061.96
    Total area in cultivation19,659,34945.80
Unimproved land23,268,47954.20
    Total area in occupation42,927,828100.00

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, 1940.

Land District.Phormium (New Zealand Flax).Tussock and other Native Grasses.Fern, Scrub, and Second Growth.Standing Native Bush.Barren and Unproductive Land.Total Unimproved Occupied Land.
 Acres.Acres.Acres.Acres.Acres.Acres.
North Auckland5,476153,175740,227290,97450,3381,240,184
Auckland13,084107,462997,460416,09464,8301,598,930
Gisborne24052,030144,705170,71817,205384,898
Hawke's Bay154356,886248,034117,31834,573756,965
Taranaki4327,037146,758234,78210,759399,768
Wellington9,594533,900428,034291,28599,2971,362,110
Marlborough3,9621,128,510274,927140,350375,1561,922,905
Nelson3,277238,143308,818281,62727,214859,079
Westland4,111110,909164,906489,818186,642956,386
Canterbury2,8314,457,266289,84696,052593,4115,339,406
Otago3,5825,407,027434,064270,686407,6046,522,963
Southland8,9971,385,388306,174120,312104,0141,924,885
Totals55,73413,937,7334,383,9532,920,0161,971,04323,268,479

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, 1940:—

Number.Acres.
Reserves under Scenery Preservation Act1,138825,255
Public domains78876,900
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, 1939, was approximately £3,810,600. 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 loss 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 time 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. £
19318,6607,74619362,3542,290
19324,7454,31419372,2632,180
19333,6163,08119382,0081,658
19342,7972,61019391,3231,104
19352,3192,2171940731615

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.£
1931834924,353278,652
19324212755139,566
193326122,02338,280
193428330213,477
19352321,09315,725
1936291220611,161
193724131096,936
193825134113,723
19391751,3648,247
19402071169,765

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.
19318636,20611,12018,189
19326046,9887,20614,798
19334105,0706,82412,304
19343824,4476,52511,354
19355503,1367,24810,934
19365542,6368,80111,991
19376643,3369,14513,145
19387051,9159,75612,376
19396592,11110,64913,419
19401,0471,96710,69513,709

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.£
193125,6266,8631,474,04022,068,814
193216,9434,1131,214,54013,205,708
193315,3814,161990,50711,015,434
193415,7604,1931,017,6129,551,205
193518,6284,6841,186,61712,197,376
193623,0446,1741,393,53215,591,391
193725,1787,1721,468,45118,853,823
193826,2698,0621,020,63823,328,714
193928,9658,209957,82023,659,236
194028,0577,4771,038,90122,119,383

The numbers of transfers registered during the years 1931 to 1937 include all transfers registered—i.e., transfers of land from trustees to beneficiaries or to new trustees, transfers of mortgages, easements, &c. The numbers shown for the years 1938 to 1940 relate only to transfers of land on sale. The numbers of miscellaneous transfers for the years 1938, 1939, and 1940 are 5,082, 5,348, and 5,265 respectively.

Monthly statistics of transfers on sale of land registered under the Land Transfer Act are available and are published regularly in the Monthly Abstract of Statistics.

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 27½ 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.

    4. Rural land (unimproved), (under optional system)—

    5. For cash, by application;

    6. Purchase by deferred payment;

    7. Renewable lease for sixty-six years.

  2. Village settlements—

    • Under the three foregoing tenures of optioned system.

  3. Special settlements (rural land)—

    • On renewable lease for sixty-six years and under special regulations.

  4. 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.

    3. Pastoral land—

    4. By small-grazing-run lease for twenty-one years, with right of renewal (maximum area, 20,000 acres);

    5. By pastoral license on terms up to thirty-five years.

    6. Land within mining districts—

    7. On pastoral licenses under special regulations, with right to acquire the freehold or exchange to a renewable lease;

    8. On occupation leases under special regulations, with similar rights as to purchase of freehold and exchange.

  5. 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, 1926, 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.

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, 1940, numbered 604, totalling £298,473, while in addition £437,753 (apart from roading-costs payable out of Public Works Fund) has been expended by the State in the reading, surveying, and development of various blocks of land to be opened for settlement.

LANDS OPENED FOR SELECTION.

During the year ended 31st March, 1940, an area of 107,252 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 20,276 acres was offered, 75 acres being education endowments, 50 acres other endowments, 6,976 acres land for settlements, 144 acres Cheviot Estate, and 13,031 acres ordinary Crown lands. An area of 9,368 acres was offered under the optional system. The pastoral-run area comprised 76,200 acres.

In addition to the above, a total area of 1,165 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 315,343 acres, by 974 selectors. These figures include, however, 83 purchases of small town, suburban, and rural lands, aggregating 1,323 acres, offered for sale at auction. The ordinary Crown lands holdings represented 1,305 acres; and land for settlements and Cheviot Estate, 18 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
19361351092292475
19371292032794615
19381521092651527
193910555332..492
194083713071462
AREA (ACRES).
19362,9584,87575,79018,531102,154
19378,24615,01858,78010,57192,615
19383,5945,57250,0823,27662,524
19392,5675,66862,244..70,479
19401,32314,28650,22236766,198

CROWN LAND HELD OR MADE FREEHOLD.

The table following shows the position of Crown Lands at 31st March, 1940. Settlement lands under the Land for Settlements Act, which are dealt with later on in this subsection, are included in the figures for the various tenures under which they are held.

Total Area made Freehold.Tenure.Total Number of Selectors.Total Area held from the Crown.Total Yearly Rental or Instalment payable.
Number of Purchasers.Area.
  Acres.£ Acres.
Cash lands........13,310,262
Deferred payment3,489545,93692,45112,9171,460,832
Perpetual leases1475,9147823,113865,141
Occupation with right of purchase1,462405,03333,0575,5951,393,609
Lease in perpetuity7,3261,506,850179,2623,444573,966
Renewable lease9,3302,624,643376,268692113,818
Agricultural lease9282211,408140,896
Mining districts land occupation leases67516,1751,7542035,409
Homestead......6180,453
Pastoral licenses in mining-districts under special regulations41685,4441,88412523,796
Small grazing runs7752,488,97792,6237693,578
Pastoral runs6028,232,88281,780924,399
Hanmer Crown leases105332561....
Miscellaneous leases and licenses6,736964,63939,34016718,120
    Totals31,07216,877,107899,78327,81018,104,279
      
Thermal-springs leases (Rotorua)2527921,29283317
Education endowments—     
  Primary3689754,518104,13776,848
  Secondary49238,01111,932114
    Totals4,433793,321117,361917,179
    Grand totals35,50517,670,4281,017,14427,90118,111,458
Other endowment lands781331,00212,661127,308

CROWN LANDS MADE FREEHOLD, YEAR ENDED 31st MARCH, 1940.

Tenure (immediately prior to acquisition of Freehold).Area.Amount realized.
*Under section 223 of Land Act, 1924.
 Acres.£
Cash lands sold1,2878,931
Freehold acquired under the following tenures:—  
  Deferred payment11,66971,462
  Occupation with right of purchase17,80127,698
  Lease in perpetuity5,19621,946
  Mining districts land occupation leases89736
  Renewable lease7,70626,319
  Pastoral licenses in mining districts under special regulations702550
  Perpetual leases42160
  Thermal springs leases (Rotorua)5388
  Miscellaneous*7521,109
    Totals45,249159,299

SUBDIVISION OF LAND.

Much of the land legislation 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 whore 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, or by setting aside any land which is subject to the Land for Settlements Act, 1925. 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. All holdings under the Small Farms Act are disposed of by way of renewable lease, which does not confer any right to acquire the fee-simple. The Small Farms Amendment Act, 1940, adds discharged soldiers of the present war to the classes of persons to whom leases may be granted and give power to take land for this purpose.

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.

Forty-five estates, of a total area of 85,931 acres, were offered during the year ended 31st March, 1940. None of these was purchased for closer settlement during the year. Three parcels of land totalling 97 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, 1940.

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 2,290,769 acres at the 31st March, 1940. Of this, 338,741 acres have been sold for cash or made freehold, the number of purchasers being 3,007 and total purchase-money £1,655,340, and 96,454 acres are occupied by roads or by reserves unlet. At the 31st March, 1940, 6,064 selectors were holding a total of 1,769,084 acres, the annual rental for which amounts to £450,317; and the remaining 86,490 acres were unlet. Rent and other payments received during 1939-40 were £420,115, while total receipts from inception to 31st March, 1940, were £14,302,308.

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, 1940.

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 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, 1,165 acres were proclaimed in 1939-40, and a total of 1,455,386 acres has been proclaimed to 31st March, 1940, comprising 1,048,136 acres of ordinary Crown lands; lands for settlements, 403,894 acres; and Chat Estate, 3,356 acres. Some 702,837 acres of this aggregate fall under section 3 of the Act (ordinary tenures) and 752,549 acres under section 4 (special tenures).

During the year ended 31st March, 1940, two applications were made under the provisions of the Discharged Soldiers Settlement Act, and allotments were made in each case, the total area being 323 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.

As stated under a previous heading, provision for the acquisition of land for the purpose of settling discharged soldiers of the present war has been made per medium of the Small Farms Amendment Act, 1940.

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 held 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 by the Crown.

  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 1939-40 was as follows:—

  • Number of sittings 128

  • Number of cases notified 26,568

  • Number of cases for which orders were made 12,006

  • Number of cases dismissed 1,829

  • Number of coses adjourned sine die 17,197

  • Number of partitions made 378

  • Area affected (acres) 46,833

  • Number of succession orders made 5,956

  • Number of other orders made 5,672

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 set 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, 1940, was 660,054 acres.

With regard to Native freehold land, the Courts during the year approved of leases comprising 35,102 acres, and confirmed transfers (apart from sales to the Crown) affecting 3,664 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.

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. Where 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.

The area of Native land still held by Natives in the North Island is estimated at 3,774,598 acres, and in the whole Dominion at 4,014,814 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, 1940, the total gross expenditure on development schemes under the control of the Native Department amounted to £5,564,075 (inclusive of interest). The total credits were £3,518,710 which includes Employment Promotion subsidies amounting to £1,100,467 and the total net expenditure was £1,945,365.

The total area gazetted under Part I of the Native Land Amendment Act, 1936, to 31st March, 1940, was 903,448 acres, of which 268,921 acres had been developed, and were carrying the following live-stock: 33,830 cows, 19,539 other dairy stock, 23,869 run cattle, 112,956 breeding-ewes, and 86,162 dry sheep, together with 3,602 working-horses. The Maori population under the schemes numbers 1,894 settlers, 3,125 other employees, and 16,934 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, 1940, were:—

Amounts held under—£
West Coast Settlement Reserves Act, 189248,175
Native Reserves Act, 188261,380
Native Land Act, 1931 (Part X)61,848
Native Land Act, 1931 (Miscellaneous)170,541
Native Trustee Act, 193017,314
Miscellaneous funds178,469
Reserve and Assurance Fund79,800
Investment Fluctuation Fund1,195
Advance under Native Land Act, 193152,527
Reserve against unpaid interest, &c.1,773
Profit and Loss Appropriation Account18,568
Total£691,590

Of the total funds £112,293 was invested in the form of mortgages, £5,100 in local authorities' securities, and £190,227 on overdrafts to estates and accounts.

Commissions, fees, charges, and net interest on investments for the year 1939-40 totalled £18,861. The net profit, for the year was £6,231.

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 upon the security of an interest in Native land and an assignment of rents from Native land, or of any other moneys payable to a Native. Section 18 of the Native Housing Amendment Act, 1938, established a fund, called “The Special Native Housing Fund,” to provide houses for those Natives unable to furnish the security or to make the payments which the Board of Native Affairs would ordinarily require.

The number of advances authorized under the Native Housing Act, 1935, from the inception of the scheme to 31st March, 1940, was 328, of which 212 were for the erection of new dwellings, 29 for the purchase of existing dwellings, and 87 for additions, renovations, &c. The total amount authorized to 31st March, 1940, was £130,198, of which £69,021 had been expended. The number of advances authorized from the special fund to 31st March, 1940, was 307, of which 260 were for the erection of new dwellings, 7 for the purchase of existing dwellings, and 40 for additions, renovations, &c. The amount involved by these authorizations was £98,654, of which £65,661 bad been expended by 31st March, 1940.

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 330. The number of houses erected under these schemes during the year ended 31st March, 1940, was 307, and the total since the inception of the schemes to that date was 1,224.

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 that in order to undertake surveys all registered surveyors must hold annual practising certificates issued by the Secretary of the New Zealand Institute of 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 lines 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 surveys 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 re-observe 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 as 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.-1A. 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.

A description of the various types of maps available for sale will be found on pages 394-395 of the 1940 issue of the Year-Book.

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. 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, has been 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.

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.

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 large 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, even 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. 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 and the hop-vine 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 fruit-growing.

DEPARTMENT OF AGRICULTURE.

Under the control of the Minister of Agriculture the Department of Agriculture provides a service the main object of which 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, farmers 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.

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 farmers' 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 eleven 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 for 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 conies 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.

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 pastoral group are live-stock and wool-production. Slaughterings of live-stock have been assessed on the basis of values (alive) at freezing-works, deductions being made to cover the cost of transport from farm to works, saleyards, &c., and of commission on sales of live-stock. 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.

It should be mentioned that the value of all live-stock production, including pigs, is included in the pastoral group, although pig-production is largely an adjunct of dairying.

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.

Wool-production is valued at the average prices realized at sales held during each season, the aggregate arrived at representing the value of wool produced 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 have been made to cover the cost of transport of wool to selling centres, and of woolpacks.

The largest individual item included in the Dairying, Poultry, and Bees group is the pay-out to suppliers by butter, cheese, and dried milk, &c., 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 poultry-products, which, with bee-products, 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 eleven 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- 297.331.425.564.2
1929-307.424.524.456.3
1930-316.718.317.942.9
1931-326.514.617.438.5
1932-336.914.716.538.1
1933-347.023.417.348.2
1934-356.021.818.346.1
1935-367.426.523.957.8
1936-377.236.727.571.4
1937-387.331.928.968.1
1938-398.230.029.167.3

The extent of the fall in the value of all classes of farm-produce between the years 1928-29 and 1932-33 was £ 26,100,000. 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 over the previous year of £ 10,200,000 in the value of pastoral production was due to exceptionally good prices for wool and to an improvement in cattle prices.

Higher prices for certain agricultural products accounted for the slight rise in the agricultural-production group in 1937-38. 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 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.

Increased prices generally accounted for an increase of £ 900,000 in the agricultural-produce group in 1938-39. The pastoral group showed a decrease of £ 1,900,000, due to lower prices for sheep and lambs, while the value of the dairying, poultry, and bees group remained practically unchanged.

A clearer idea of changes in 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
1931-3289466860
1932-3395476559
1933-3496757075
1934-3582697272
1935-36101849490
1936-3799117108111
1937-38100102113106
1938-3911296114105

VOLUME OF PRODUCTION, AND FARM PRODUCERS’ PRICES.

In order to convey an indication of the extent to which the values 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 1938-39 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 have been 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 obtained 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.
VolumePrices.Volume.Prices.Volume.Prices.Volume.Prices.
1928-29100100100100100100100100
1929-309510699791098810286
1930-3110389102571116310663
1931-329693108431155910955
1932-3312377115411315012248
1933-3411286115651415012560
1934-359487113611375312060
1935-3611290121691446512970
1936-3797102124941487313085
1937-3896104124821428012883
1938-3990124135711318712882

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 1938-39 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 1938-39 season showing much the highest production. 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. This improvement was carried into 1936-37, the fall in the volume cultural production in that year being due chiefly to the smaller harvest heat 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 no movement, 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. Decreases in the production of wheat and potatoes contributed to the fall of 6 points in the volume of agricultural produce recorded in 1938-39. Pastoral production showed an increase of 11 points, due to increased slaughterings of live-stock and increased production of wool, while the decline of 11 points in the dairying, poultry, and bees group was caused mainly by lower butterfat-yields.

The price indexes show, with the exception of agricultural prices in the last three seasons, 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 22 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 52 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.

Agricultural prices rose slightly in 1937-38. 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 13 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.

The rise of 19 per cent. in prices of agricultural produce in 1938-39 was fairly generally distributed. Prices in the pastoral group showed a decrease of 13 per cent., due to lower prices for sheep, lambs, and wool, while higher butter-fat prices accounted for the rise of 9 per cent. in the dairying, poultry, and bees group. Prices of agricultural produce in 1938-39 showed an increase of 24 per cent. as compared with 1928-29, but prices in the pastoral and dairying, poultry, and bees groups were still 29 per cent. and 13 per cent. respectively below 1928-29 levels.

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) have been computed of the relative volume of agricultural, pastoral, and dairying, &c., production. 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
1932-33121847394143100100
1933-34111446494337100100
1934-3591347474440100100
1935-36101347464341100100
1936-3791048514339100100
1937-3891149474242100100
1938-3981253453943100100

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 does 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
1931-3260558587
1932-3359487580
1933-3475607080
1934-3572607082
1935-3690707584
1936-37111858089
1937-38106839094
1938-39105829096

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.

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 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. 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 wool, 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.

Since the estimates of Dominion consumption art 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. The effect of these various factors is, however, minimized by taking averages for three seasons.

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 1934-356.60.85.81288
1933-34 to 1935-366.80.86.01288
1934-35 to 1936-376.90.76.21090
1935-36 to 1937-387.30.86.51189
1936-37 to 1938-397.60.86.81189
  Pastoral Produce.  
1928-29 to 1930-3124.718.66.17525
1929-30 to 1931-3219.114.24.97426
1930-31 to 1932-3315.911.84.17426
1931-32 to 1933-3417.614.03.68020
1932-33 to 1934-3520.015.84.27921
1933-34 to 1935-3623.919.34.68119
1934-35 to 1936-3728.323.15.28218
1935-36 to 1937-3831.725.76.08119
1936-37 to 1938-3932.926.86.18119
 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 1935-3620.014.75.37327
1934-35 to 1936-3723.216.96.37327
1935-36 to 1937-3826.819.67.27327
1936-37 to 1938-3928.520.48.17228
  All Farm Produce.  
1928-29 to 1930-3154.434.519.96337
1929-30 to 1931-3245.928.517.46238
1930-31 to 1932-3339.924.415.56139
1931-32 to 1933-3441.627.114.56535
1932-33 to 1934-3544.129.214.96634
1933-34 to 1935-3650.734.815.96931
1934-35 to 1936-3758.440.717.77030
1935-36 to 1937-3865.846.119.77030
1936-37 to 1938-3969.048.021.07030

Of the total gross farming income during the eleven production-years 1928-29 to 1938-39, 67 per cent. came from exports of farm-produce, while 33 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 from 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.

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 1933-34111139108104
1932-33 to 1934-35110135108103
1933-34 to 1935-36106117105100
1934-35 to 1936-3710210410196
1935-36 to 1937-3810310910295
1936-37 to 1938-39951049487
 Pastoral Produce.  
1928-29 to 1930-31100100100100
1929-30 to 1931-321031059594
1930-31 to 1932-33108109103101
1931-32 to 1933-3411211510097
1932-33 to 1934-35114116104100
1933-34 to 1935-361161219893
1934-35 to 1936-371191249993
1935-36 to 1937-381231299992
1936-37 to 1938-3912713310295
 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
1936-37 to 1938-39131135123114
 All Farm Produce.  
1928-29 to 1930-31100100100100
1929-30 to 1931-321031059998
1930-31 to 1932-33110111107105
1931-32 to 1933-34116120106103
1932-33 to 1934-35119125108104
1933-34 to 1935-36121129105100
1934-35 to 1936-37123131107101
1935-36 to 1937-38125134108101
1936-37 to 1938-39125134108100

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 a later heading, “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 period covered by the table the number of tractors more than doubled, the actual increase being 111 per cent., while during the last two years the increase was 40 per cent. Further particulars concerning agricultural tractors is contained in Subsection C of this section, where information indicative of the relative employment of mechanical and horse traction on farms will be found. The increase in the number of electric motors between 1938 and 1940 amounted to 23 per cent., and during the last five years to no less than 79 per cent.

Class of Machinery, &c.1936.1937.1938.1939.1940.
 Number.    
Milking-plants26,18127,33128,19228,97029,564
Cream-separators56,19956,85056,54355,66555,773
Shearing-machines—     
  Plants8,4688,8679,68010,06410,634
  Stands23,52624,22925,68526,06327,216
Agricultural tractors5,7106,5858,0319,63911,278
Electric motors35,42640,20146,10051,34456,511
Internal-combustion engines22,15922,35822,57322,60123,346

The 29,564 milking-plants in use in 1940 had a capacity for milking 100,817 cows simultaneously. The total number of cows milked on holdings employing milking-plants was 1,445,756. The aggregate horse-powers of the agricultural tractors, electric motors, and internal-combustion engines shown above were 203,387, 58,623, and 72,250 respectively.

DEVELOPMENTS IN AGRICULTURAL POLICY.

INTRODUCTORY.

The prosperity of New Zealand is to such a large extent dependent on the well-being of the farming 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 (now the 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 farmers 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-term 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 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. 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 wheatgrowers 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. 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*; 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.

* Regulations gazetted in March, 1937, prohibit importations other than with the consent of the Minister of Customs.

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 1938-39 for approximately 87 per cent. of the aggregate gross money returns from farm-production) is particularly dependent upon the export markets—three-quarters 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 run by a diminishing quantum of world trade. The full consequences of this growth of economic nationalism were 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 subsequent seasons, the emphasis in the planning of the farm economy of the Dominion shifted from problems of immediate urgency to long-range plans. With the advent of the present war new problems have arisen and previous plans have been subjected to a certain amount of interruption and modification, the necessity for the maximum production of those commodities most urgently required for the full and effective prosecution of the war effort becoming the immediate concern of the Government.

In the following pages brief mention 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 also he made to an 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 had, at the outbreak of the present war, 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 had become a major feature of the economic policies of consuming countries, thus further reducing the potential markets of exporting countries. These developments 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 wool, butter, cheese, and meats, and, of these commodities, wool alone has normally 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 has, in recent years, been 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 Linked Kingdom market was 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 became in consequence 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 had 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 bad 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. This reduction created an immediate problem, and stocks of mutton and lamb, particularly the former, began to accumulate in the freezing-works and cool stores of the Dominion. By the end of the killing-season the problem had assumed somewhat serious proportions, but shortly after the outbreak of war an effective clearance of these accumulated stocks was arranged as a result of the agreement (referred to later), between the United Kingdom and New Zealand Governments, for the purchase of the Dominion's export surplus of meat and other produce.

The most significant recent development in the marketing of New Zealand farm-produce is the Marketing Act (described under the sub-heading 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 Marketing Act of particular interest in this connection is quoted in full:—

  1. “(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. “(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.”

MARKETING ACT.

The purpose of the Marketing 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.

An amending Act passed in 1937 constituted three separate divisions of the 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.

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 by 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.”)

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.

Under the 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.*1938-39.1939-40.1940-41.
 Creamery Butter.   
Finest.—d.d.d.d.d.
  94 points and over12.687513.78515.01515.01515.015
  93 to 93½ points (basic grade)12.562513.6614.8914.8914.89
First—     
  92 to 92½ points12.513.597514.827514.827514.8275
  90 to 91½ points12.312513.4114.6414.6414.64
Second11.812512.9114.1414.1414.14
      
 Whey Butter.   
First11.562512.6613.8913.8913.89
Second11.062512.1613.3913.3913.39
     
Finest—Cheese.   
  94 points and over6.968757.906258.576258.576258.57625
  93 points to 93½ points6.93757.8758.5458.5458.548
First—     
  92 to 92½ points (basic grade)6.81257.758.428.428.42
  91 to 91½ points6.757.68758.35758.35758.3575
Second6.56257.508.178.178.17

* 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.

Provision is also made for specified additional payments in connection with butter and cheese manufactured, with the approval or at the request of the 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 1½d. per pound more for his butterfat than the return in respect of milk or cream delivered at a factory for buttermaking. The differential margin which was intended to compensate suppliers for the relatively higher cost of cheesemaking and the loss of by-products, such as skim-milk, &c., was raised to 2d. per pound for the 1937-38 and three following seasons.

The average pay-out by dairy companies has been as follows, per pound of butterfat supplied:—

Season.For Buttermaking.For Cheesemaking (including Whey Butter.)
 d.d.
1936-3713.55815.176
1937-3814.81216.389
1938-3916.08718.060
1939-4016.17918.091

In arriving at the prices for the 1938-39 and two following seasons, 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

It will be seen that actual payments in 1938-39 and 1939-40 were slightly in excess of this estimate.

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 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 there was a deficiency of £1,323,762 in the butter account and a deficiency of £1,178,433 in the cheese account, the total debit balance in the Dairy Industry Account for the year being £2,514,889.

EFFECT OF WAR ON OPERATIONS OF MARKETING DEPARTMENT.

The deterioration in the European situation during 1938 and 1939 had led to the formulation of plans in the United Kingdom and in New Zealand for the supply of foodstuffs and other produce in the event of war. These plans envisaged the United Kingdom Government becoming the sole purchaser of imported foodstuffs, and the Marketing Department becoming the authority in New Zealand responsible for the bulk purchases and shipment of the various food and other products. Thus, immediately upon the outbreak of war the Department was ready to undertake its extended duties, and negotiations with the United Kingdom Government in regard to bulk purchases were immediately put in train. Within three months all the necessary arrangements for internal organization had been made and, in the main, the negotiations with the United Kingdom Government had been completed. This was in direct contrast to the experience of the war of 1914-18. The Department of Imperial Government Supplies, which controlled bulk purchases at that time, did not commence operations in New Zealand until 3rd March, 1915, and, indeed, was not fully functioning until 1917.

The extension of the scope of the Department, consequent upon the outbreak of war, necessitated an amendment to the Marketing Act to give the Department the required additional powers. The principal amendments, as embodied in the Marketing Amendment Act, 1939, were as follows:—

  1. The title of the Department was changed to the Marketing Department, while the Dairy-produce Export Division became the Export Division.

  2. The Department may by Order in Council be authorized to purchase or otherwise acquire any specified goods, and to sell or otherwise dispose of such goods for consumption or use in New Zealand or elsewhere.

  3. The prices to be paid by the Department for any goods acquired by it may be fixed by Order in Council, or may be ascertained in a manner to be prescribed by such Order in Council.

  4. The Department may, on the authority of an Order in Council, in lieu of acquiring such goods, fix wholesale or retail prices at which any foodstuffs may be bought or sold.

  5. Provision was made for one or more special accounts to be established with the Reserve Rank and for the Reserve Rank to grant accommodation by way of overdraft in aid of any special account.

The products with which the Department is now concerned as purchasing agent for the United Kingdom Government are dairy-produce, meat, wool, tallow, woolly sheep-skins, and scheelite. The following table gives the quantities and values of these products exported for the period ended 31st July, 1940:—

Product.Volume.Equivalent Weight, in Tons.Value, f.o.b.
   £(N.Z.)
Butter4,684,866 boxes117,12216,345,284
Cheese1,190,596 crates85,0426,726,704
Frozen meat..256,39614,907,564
Wool*804,515 bales123,19515,811,704
Tallow..13,955290,347
Woolly sheep-skins713,829 skins1,873142,606
Scheelite756 bags378,026
Totals..597,620£54,232,235

* Figures to 30th June only.

In addition to the items included in the foregoing table, the Department exported 582,886 cases (10,409 tons) of apples, valued at £430,555, but fruit was not included in the purchase agreement with the United Kingdom Government.

Full details of the arrangements made by the Government in regard to the sale and export to the United Kingdom of essential food and other supplies during the war period is contained in parliamentary paper H.-30B, 1940. In addition to particulars of the final agreements secured in regard to the various products, the report contains a full record of the discussions, and negotiations between the two Governments. A brief summary of the main essentials only can be given here.

Wool.—In this case the contract covers the 1939-40 season's wool-clip, and succeeding wool-clips during the period of the war, and the following season's clip, and includes all wool not required for manufacture in New Zealand. The purchase price for greasy wool was fixed at 10.55d. per pound sterling, f.o.b. This price enables an over-all average payment of 12.25d. per pound New Zealand currency to be made to woolgrowers for wool delivered at appraisal warehouses, and also allows for payment for services to wool-brokers, to wool-appraisers, and for costs to f.o.b. (transport, storage, and insurance), and for Marketing Department expenses. The purchase price for slipe wool is 13.75d. per pound sterling, f.o.b., which permits of an over-all average payment to freezing-companies and exporters of 16.9766d. per pound New Zealand currency, f.o.b. This price also allows for payment for services of appraisers and for Marketing Department expenses.

In order to interfere as little as possible with the wool-scouring industry, arrangements were made for 75,000 bales to be scoured in New Zealand annually, payment to be on a greasy basis, with an allowance of 1½.d. per pound to cover scouring costs and additional handling charges.

The purchase prices may be reviewed in May of each year at the instigation of either the United Kingdom or the New Zealand Government.

In addition to the foregoing, half-profits on subsequent sales of wool outside the United Kingdom will accrue to the producers. Distribution of profits (if any) is to be made when accounts for the final season are closed. Any loss on such sales will be borne by the United Kingdom Government.

Meat.—During the negotiations the New Zealand Government pressed for an agreement to purchase the whole of the exportable surplus, but the quantity finally agreed upon was 300,000 tons of frozen meats from the production of the season ending 30th September, 1940, and from the carry-over of the previous season, which amounted to 45,000 tons. This included all classes of meats, also edible offals. In addition, the United Kingdom Government undertook to make every endeavour to provide shipping-space for additional quantities and to pay for such additional quantities at the contract prices.

The f.o.b. (New Zealand currency) purchase prices payable to freezing-companies and meat-exporters are set out in the schedules attached to the Meat Marketing Order 1939, Amendment No. 1. The range of prices per pound for the principal classes was as follows:—

Lamb: Prime down cross, 6 15/16d. to 7⅞d.; prime Canterbury, 6 13/16 d. to 7 13/16 d.; prime crossbred, 6½d. to 7 11/16 d.; second quality, 6 13/16d. to 7¼d.

Mutton: Prime wethers and maiden ewes, 3 11/16d. to 5 5/16d.; second-quality wethers, 4 3/16d. to 4 9/16d.; ewes, 2 15/16d. to 3 3/8d.

Beef: Ox and heifer—Hinds, 4¼d. to 5 7/16d.; fores, 3⅛d. to 3 3/16 d. Cow—Hinds, 4d.; fores, 3d. Boneless beef, 4d. to 4⅛d. Bobby veal, 5⅛d. Boneless veal, 4 3/16d.

Pigs: Carcases—Baconers, 7⅛d. to 7½d.; porkers, 7⅛d. to 7 7/16d.

The prices fixed for the 1940-41 season for the main classes of meats are the same as the foregoing. There have, however, been some minor adjustments in respect of edible offals and bacon cuts.

Dairy-produce.—In the case of dairy-produce the quantities agreed upon for the 1939-40 season were—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, between 4,000 tons and 5,000 tons of butter of the 1939-40 season shipped prior to 1st October were taken over by the United Kingdom Government and paid for on the basis of the contract prices. The United Kingdom Government also stated that, subject to freight being available, it would use its best endeavour to ship any additional quantities available for export, within the limits of its requirements. The prices agreed upon permitted of an f.o.b. over-all average of 139s. 7¼d. per hundredweight for butter, and 79s. 9d. per hundredweight for cheese (New Zealand currency).

Arrangements for the 1940-41 season have since been concluded. The new contracts call for 120,000 tons of butter and 107,000 tons of cheese, prices to remain the same as for the previous season. In addition, although it is not embodied in the agreement, an understanding has been reached that the general arrangements for the purchase of New Zealand dairy-produce will continue for the duration of the war and for a subsequent period to be agreed upon. Prices are to be determined by negotiation in May of each year.

Fruit.—Owing to the necessity for conserving shipping-space for more essential commodities, the United Kingdom Government intimated that it did not intend to include apples and pears in the purchase arrangements. An undertaking was given, however, that an endeavour would be made to provide some shipping space if shipping developments rendered this possible at the time when fruit was available.

The New Zealand Government decided that, in view of the uncertain conditions, it was necessary to assure the New Zealand fruitgrowers of some income for their produce, and accordingly agreed to purchase the entire crop of graded fruit for the 1939-40 season. The prices agreed upon averaged 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 was responsible for marketing within New Zealand, while any exports for which shipping-space might he arranged would be handled by the Export Division of the Department.

As already stated, it was eventually found possible to export a considerable-quantity of apples to the United Kingdom as well as smaller quantities to Canada and Malaya.

Arrangements for the purchase of the 1940-41 crop of apples and pears on the same lines as in the previous year have since been announced by the Government, the prices having been increased to an average of 5s. 3d. per bushel case for the local pack, and to an average of 5s. 7d. for export quality. In addition, it is proposed to pay a premium on early varieties harvested before 18th January, 1941. This premium will be graduated according to delivery date.

Tallow.—Although negotiations for the purchase by the United Kingdom Government of New Zealand tallow officially commenced on 30th September, 1939, final agreement was not reached until 27th March, 1940. This agreement provided for the purchase of all surplus tallow of the 1939-40 season available for export up to 30th September, except normal exports to India amounting to not more than 4,000 tons.

The scale of prices per ton payable by the Marketing Department is set out in the Purchase of Tallow Order 1940. These prices are f.o.b. (New Zealand currency) and the range is as follows—First beef, £26 19s. 6d.: first mutton, £25 2s; mixed, £19 10s. to £21 13s. 6d.; gut, £13 18s. to £18 5s. 6d.; premier jus, £26 19s. 6d.; stearine, £26 7s. and £28 4s. 6d.; lard, edible, £44 7s. 6d.; pig fat, inedible, steam rendered, £35 13s. 6d.; hog grease, £17 0s. 6d. to £28 4s. 6d.

The foregoing prices relate to tallow packed in casks, the prices for tallow packed in barrels or drums averaging approximately 6s. per ton less.

Woolly Sheep-skins.—During the negotiations for the purchase of the normal exportable surplus of woolly sheep-skins, the New Zealand Government sought the right to supply direct such long-established markets as existed in Canada and the United States of America. The United Kingdom Government, however, indicated that they desired the purchase agreement to cover the whole of the exportable surplus, in order that wool-prices generally might be controlled.

It was finally agreed, in respect of these outside markets, that as far as possible New Zealand would ship direct to Canada and the United States of America, but on the instructions and to the requirements of the United Kingdom Government.

The basis of purchase was to be on values appraised in accordance with the New Zealand slipe-wool type and price schedules, plus the value of the pelt, which was to be determined on world parity values to be reviewed at quarterly intervals, less an allowance of 2⅛d. per pound for fellmongering.

Hides.—Preliminary negotiations between the New Zealand Government and the United Kingdom Government in regard to the possible purchase of hides were also entered into, but the latter finally decided that the bulk purchase of New Zealand hides was not a practical issue. In view of this decision, the New Zealand Government proceeded to make all necessary arrangements for the supply of hides to local tanners at stabilized prices, and to enable the export of the balance to overseas markets to continue. This was effected by the introduction of an equalization scheme whereby a levy on exports is utilized to adjust whatever price variation may exist between the local price to tanners and export parity values, thus enabling both markets to be supplied with an averaged net return to all producers. The procedure is embodied in the Hides Emergency Regulations 1940, the administration of which is entrusted to a Hides Committee.

INTERNAL MARKETING.

The Marketing Amendment Act, 1937, made provision for the establishment of an internal marketing organization which is now known as the Internal Marketing Division of the Marketing Department. As a basis of the organization the Government took over the business of one of the largest distributing houses engaged in the marketing of butter, cheese, eggs, ham, bacon, &c., within the Dominion.

The legislation which created the internal marketing organization specifically mentioned dairy-produce, eggs, fruit, and honey as primary products to be brought within its scope, although the Act gave powers for extension to other classes of produce.

Using as a working basis the experience gained through the administration of the Butter (Wellington District) Marketing Regulations, which came into force on 1st May, 1937, the Division inaugurated on 1st November of the same year the Butter Marketing Regulations 1937, with a complete Dominion coverage. The scope of these regulations included fixing the local wholesale price in relation to the guaranteed price ruling from time to time and ensuring that returns to dairy companies for their local sales were, as nearly as possible, equal to the export parity after making allowances for such items as patting, transport, handling, &c. Although the Division has taken no definite action in regard to the local marketing of cheese, investigations are being carried out with a view to assisting cheese-producers in this connection.

Under a Customs Proclamation dated 11th May, 1938, the Division became the sole importer of citrus fruits and bananas, and since that date imports have been regulated in such a manner that serious price and supply fluctuations, prevalent throughout this trade in the past, have been reduced to a minimum.

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 been entrusted with the supervision of marketing conditions generally, and a considerable amount of preparatory work has been done. In addition, the Division has acted as mediator between growers and factories in arranging prices and supplies. Anticipating an abnormally heavy crop of apples and pears in the 1937-38 season, the Division inaugurated a comprehensive advertising campaign, with very gratifying results. With the outbreak of war the apple and pear industry was faced with the loss of its export trade. As a result the growers, through their representative organizations, requested the Government to take over the marketing of the fruit. As already stated on page 360, the Government purchased the entire crop of graded fruit, the Internal Marketing Division being entrusted with the entire arrangements. An intensive advertising campaign was again carried out with marked success. A similar agreement between the Government and the industry has been concluded in regard to the 1940-41 crop. The Division has also taken action in regard to the marketing of hops, maize, barley, and onions, and is the responsible authority in regard to imports of the three latter commodities. As stated later in this section under the caption of “Citrus Industry,” the marketing of lemons is now under the sole control of the Division.

The Division has also been of considerable assistance to the poultry industry by its supervision and handling of egg marketing. By means of a guaranteed price for all eggs exported, a minimum selling-price so far as the local market is concerned has been assured to producers, particularly in the flush of the season. Prices for egg-pulp have also been arranged. 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 Division has also assumed control of the importation of beeswax. The orderly marketing of bobby calves has also received attention, steps being taken in 1938 for the formation of Bobby Calf Marketing Pools. Under the Bobby Calf Marketing Regulations 1939, the Minister of Marketing, on being satisfied that not less than three-quarters of the producers in any suitable area of land are desirous of participating in the scheme, may declare such area to be a Bobby Calf Marketing Pool Area. On formation, the pools, acting as agents of the producers, control the marketing of all bobby calves within their respective areas, and all sales must be made through the agency of the pool. A further activity of the Division is the supervision of the marketing of kauri-gum.

On the outbreak of war the Director of the Internal Marketing Division was appointed to the office of Food Controller under the Emergency Regulations, and all matters in regard to food control have since been dealt with by the Division under the direction of the Minister of Supply. In order to ensure close co-operation between the officers responsible for food control and the officers handling the purchase of foodstuffs on behalf of the Government, a Purchasing Section was inaugurated by the transfer to the Division of the officers of the Railways Refreshment Branch, who had, up to the outbreak of war, been actively engaged in the purchase and supply of foodstuffs for governmental institutions.

The shortage of certain imported foodstuffs and the requirements of the Defence Services have created many difficulties which have to be overcome by this new organization.

The whole of the canteen organization in the various Army camps, Air Force stations, and the Naval Base, Auckland, has also been entrusted to the Internal Marketing Division.

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. 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 of the 1940 issue of the Year-Book, while certain special provisions in the Act which applied to farm mortgages only, may be found on pages 416-7 of the same volume.

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.

SUBSIDIES, GRANTS, ETC.

Practically the whole of the expenditure of the Department of Agriculture may be regarded as devoted directly or indirectly to the furtherance of farming and associated interests. The net expenditure of the Department in 1939-40 was £1,054,262, as compared with £1,080,737 in 1938-39, while the estimated net expenditure for 1940-41 is £1,649,000. A considerable proportion of the Department's vote is expended by way of advances, grants, subsidies, &c., the principal items of which are shown in the following table:—

Item.1937-38.1938-39.1939-40.
 £££
Payments under statutes—   
  Expenditure, including compensation for stock condemned under Stock Act*17,30015,87014,184
  Expenditure, including compensation under Meat Act27,92325,87822,510
  Grant to New Zealand School of Agriculture27,00027,00027,000
  Subsidies to Rabbit Boards (Rabbit Nuisance Act)28,40229,96328,317
Other advances, grants, subsidies, &c.—   
  Carriage of lime for bona fide farmers113,606119,824131,796
  Portion of freight rates on fertilizers189,626184,111222,600
  Portion of freight rates on farm-produce58,32957,79961,038
  Eradication of noxious weeds*74,18075,20550,598
  Guarantee on exports of fruit27,48173,9048,544
  Assistance to fruitgrowers (local market)18,88888,610203
  Subsidy on raw materials used in manufacture of superphosphates....81,510

* Partly recoverable.

The substantial increase in the estimated expenditure for 1940-41 as compared with previous years is principally accounted for by the inclusion of an item of £630,603 for the purpose of maintaining the price of certain fertilizers at pre-war levels. It will be observed that an amount of £81,510 was expended in 1939-40 by way of subsidy on raw materials used in the manufacture of superphosphate. This subsidy was in operation during the latter part of the year only, and the £630,603 for 1940-41 will be absorbed partly on that account, partly as a freight contribution on superphosphate transferred from the South Island to the North Island, and partly on imported phosphatic fertilizers. This is not the first occasion on which the use of artificial fertilizers has been stimulated by means of subsidies. The falling-away in their use in the autumn and winter of 1931 became so serious as to necessitate national action in an endeavour to restore the practise to an adequate level. The Government, therefore, in October, 1931, commenced a scheme of subsidizing the manufacture of superphosphate, in order to reduce considerably the cost price of this fertilizer to the farmer. This subsidy was discontinued as from 1st July, 1936, the amount paid in each year during which it was in operation being as follows: 1931-32, £73,436; 1932-33, £131,037; 1933-34, £115,389; 1934-35, £54,499; 1935-36, £33,062; and 1936-37, £14,264.

The amounts shown in the table in respect of carriage of lime, fertilizers, and farm products, represent amounts paid out of the vote of the Department of Agriculture 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 amounts included in the table for the year 1939-40 in respect of guarantee on export of fruit and assistance to fruitgrowers (local market) represent, in effect, a carry-over from the previous season as these subsidies were not in operation in the 1939-40 season. As already stated the Government, through the Marketing Department, purchased the entire crop of graded apples and pears for the 1939-40 season at a fixed price averaging approximately 5s. per case at assembly point. The financial result of the season's transactions is not yet available, but any loss sustained, which, in effect, would be a subsidy to the fruitgrowing industry, would be a charge against the vote of the Marketing Department.

Assistance to the farming industry in various forms, principally by way of subsidies on wages paid for extra labour employed, formed a definite and important part in the administration of the Employment Promotion Fund (formerly the Unemployment Fund). With the abolition of the Employment Promotion Fund consequent upon the inauguration of the Social Security scheme, provision for expenditure incurred in the promotion of employment is now contained in the vote of the Department of Labour. The amount spent by that Department in the promotion of employment on farms during the financial year 1939-40 was £118,072, as compared with £59,886 in 1938-39.

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 during 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 Central 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 completed schemes in operation at 31st March, 1940. thirteen of which were situated in Otago and two in Canterbury. The area commanded by the Otago schemes was 77,129 acres, of which 51,295 acres were regularly irrigated during the year. The two Canterbury schemes commanded 27,000 acres, water being available for 17,403 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 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 cusses 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 entails the construction of several large reservoirs and the laying of over 800 miles of water-piping. At 31st March, 1940, the headworks, main pipe-line, two service reservoirs, and 70,000 acres of reticulation had been completed, and 20,000 acres were receiving a water-supply. The whole scheme was expected to be in operation early in 1941.

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 1936 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 ruling 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. 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. The United Kingdom's war-time requirements have resulted in a revision of the former grading standards. Supplies for curing purposes are mainly required and, although porkers of weights 60 lb. to 100 lb. are accepted, the purchase agreement requires that at least 75 per cent. of the total weight should be in carcases of 101 lb. to 180 lb.

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 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 the chilled-beef industry became 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 of the marketing of eggs during the 1937-38 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 meant, in effect, that the Government was subsidizing growers to the extent of 2½d. per pound. Since 27th September, 1939, this subsidy has been financed by an increase of 25 per cent. in the duties payable on tobacco, cigars, and cigarettes, both imported and locally manufactured. A Price Order dated 24th August, 1940, issued under the authority of the Control of Prices Emergency Regulations 1939 fixed the average prices for the 1939-40 crop at the same rates as paid in the previous season.

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 20th 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, which is also the sole importer of overseas lemons. As from 1st May, 1939, the sale of lemons for resale, is prohibited except to the Department. All lemons delivered for sale to the Department are required to be delivered, loose packed, as fresh lemons except in certain specified cases, and the Department undertakes the curing, grading, and packing for resale. Prices payable to producers have been fixed from time to time.

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 1939-40 being 3,926. 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.—For several seasons past the Department of Agriculture has laid down a number of ecological trials with linen flax throughout the South Island with a view to determining the districts most suitable for the cultivation of this crop, and in the 1939-40 season some 400 acres were grown commercially. Consequently a request from the United Kingdom Government for the planting of a large area to replace supplies formerly obtained from European countries was met immediately. An area of 14,000 acres was planted during September and October, 1940, under Government contract. Payment is to be made according to certain specified standards, and it will be possible to obtain up to £36 per ton of crop. A minimum return of £5 per acre has been guaranteed to growers.

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, referred to 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 was made permanent in cases to which it still applied.

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. A further amendment in 1940 provides machinery for the taking of land for the settlement of discharged soldiers.

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.

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 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. The Government's action in regard to the disposal of the 1939-40 and 1940-41 crops has been described under a previous heading (page 360).

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; 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.

The landed cost of the principal raw materials used in the manufacture of superphosphates increased materially as a result of war conditions, and an increase in the price of this essential fertilizer appeared inevitable. The Government realized that any falling-off in the use of superphosphates would have a serious effect on primary production, and, early in 1940, decided to maintain prices to farmers at pre-war levels. To do this, it was found necessary to again resort to a scheme of subsidies (see Subsidies, Grants, &c., ante).

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 are being conducted 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.

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 Council is an advisory body, and its main function is to make recommendations to the Government on matters pertaining to the organizing of the production of agricultural and pastoral commodities to meet the exigencies of war conditions. A Primary Industries Controller has also been appointed with power to direct or control or prohibit or regulate in any way he thinks fit “the production, processing, manufacturing, packing, freezing, chilling, storage, and utilization of any primary product, and to require the production, &c., of any primary product.”

The principal aims of the Government for an increased (or in some cases, an alternative) production in the 1910-41 season have been announced as follows:—

  1. Butter-production to be maintained at the level of the previous season;

  2. Cheese-production to be increased by 15,000 tons;

  3. Pig-meat production to be increased by 10,000 tons;

  4. An increase in beef-production; and

  5. Mutton and lamb production to be maintained at the previous season's level.

Assistance of various types is being given to primary producers towards attaining these objectives. The prices of fertilizers are being maintained at prewar levels by means of subsidies. The export of seeds of root and forage crops has been controlled in order to ensure local supplies, and it is hoped that by next season New Zealand will be self-supporting in this respect. Arrangements have also been made for the importation from Australia of large quantities of barley at advantageous prices, to assist in pig-meat production. Arrangements have been made to increase the cool-storage space so that the difficulties occasioned by irregular shipping services may be reduced to a minimum.

Steps have been taken to ensure an adequate supply of farm labour. Men have been transferred from public works and other activities to farming activities, and subsidies are being paid to farmers for the engagement of inexperienced men, at the rate of 30s. per week for the first six months and 15s. per week for the second six months. In addition, house allowance of 12s. 6d. per week is paid in the case of married men, where married accommodation is not available on the farm. This allowance is payable irrespective of whether the man engaged is experienced or inexperienced.

Loans are being made available through the State Advances Corporation in cases where it is established that finance is not procurable through normal channels for purposes such as the following:—

  1. To dairy companies for capital works such as alterations or extensions to premises, plant, &c.

  2. To dairy factories for the purpose of financing the purchase by suppliers of additional fertilizers or stock.

  3. To farmers for any legitimate enterprise involving increased production.

  4. To farm contractors for the purchase of additional plant, &c.

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 winter growth of grass, except in certain favoured localities, requires to be supplemented in order to keep stock in good condition during the colder months, and in some districts supplementary fodders are necessary in the hottest summer months. 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 classes of seeds, but this is almost negligible in relation to requirements: on the other hand a considerable export trade has been developed. Hay and ensilage crops are grown almost exclusively on the farms where they are consumed, though there is some degree of localization in the growing of certain other supplementary fodder crops. The hulk of the turnip crop is grown in the South Island, and this Island also predominates 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 considerable extent, the fertile plains of Canterbury supplying 78 per cent. of New Zealand's wheat crop, 41 per cent. of the oats threshed, 55 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 80 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. Central Otago is well 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. Tobacco-growing is mainly confined to the Waimea County, in the Nelson District, hop-growing, also, being almost exclusively confined to the latter district.

Experiments carried out with linen flax reveal that certain areas in the South Island are suitable for the growth of this crop.

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.
 Lb.
Wheat60
Oats40
Barley50
Maize56
Peas60
Ryecorn54
Beans65
Grasses and clovers20
Apples40
Pears38
Peaches42
Nectarines42
Apricots42
Plums42
Cherries42
Oranges42-43
Lemons (uncured)42

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 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 1939-40 the total area of unimproved occupied land was returned as 23,268,479 acres. Cultivated land accounted in 1939-40 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 1939-40 was as follows: Phormium (New Zealand flax), 55,734 acres; tussock and other native grasses, 13,937,733 acres; fern, scrub, and second growth, 4,383,953 acres; native bush, 2,920,016 acres; barren and unproductive land, 1,971,043 acres. It should be noted that the area in phormium—a productive asset—is included in the total of unimproved land: an appreciable proportion of the area under tussock and other native grasses is also 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.
 Acres.Acres.Acres.Acres.Acres.Acres.Acres.
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
1934-3516,501,8111,981,804753,68425,087115,83296,30119,474,519
1935-3616,543,7502,090,745779,87725,072107,10997,00519,643,558
1936-3716,610,9031,918,855787,96524,856118,84398,58419,560,006
1937-3816,731,6071,785,329846,97422,397181,41495,28019,663,001
1938-3916,783,6121,807,445844,42321,753140,92595,79119,693,949
1939-4016,632,6081,956,096839,90620,899112,19597,64519,659,349

* 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.

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.1935-36.1936-37.1937-38.1938-39.1939-40.
 Acres.Acres.Acres.Acres.Acres.
Wheat252,423224,637191,842193,332260,779
Oats363,296315,704289,763279,796268,541
Barley27,77725,51231,60432,52831,728
Maize17,12613,67812,40312,22914,352
Peas25,01418,09414,80013,67822,089
Beans1772317185123
Linseed1,8066146621,8211,216
Potatoes22,95822,46223,09018,03220,033
Turnips*441,854431,349432,651385,846404,841
Mangolds13,21010,2798,2708,8729,610
Onions928719618674839
Tobacco1,5182,1321,9721,8071,828
Green fodder207,212210,662211,504189,601209,233
Grasses and clovers for seed134,40596,57780,463109,695112,142
Grasses and clovers for hay, ensilage, &c.536,018504,253443,880518,919554,607
Lucerne40,85738,80238,69137,02339,614
Other crops4,1663,1503,0453,5074,521
Totals2,090,7451,918,8551,785,3291,807,4451,956,096

* Including turnips and rape mixed. † Excluding wheat, oat, barley, and maize fed off.

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 five years are set out in the following table:—

Year.Wheat.Oats.Barley.Maize.Peas.Linseed.
  AREAS FOR THRESHING.  
 Acres.Acres.Acres.Acres.Acres.Acres.
1935-36248,63977,50220,6597,51724,4281,806
1936-37221,79074,77220,5446,67917,512614
1937-38185,94957,91725,4556,14714,277662
1938-39189,28154,42226,8986,02513,4361,821
1939-40257,53249,75125,2627,96221,3231,216
       
  TOTAL YIELDS.*   
 Bushels.Bushels.Bushels.Bushels.Bushels.Cwt.
1935-368,859,2233,302,642745,380321,222562,73311,535
1936-377,168,9633,525,430746,948301,963480,9874,567
1937-386,042,9812,640,9151,085,950295,576372,4845,182
1938-395,564,1362,604,8171,076,774269,024386,97413,322
1939-408,010,0892,081,106915,805404,179563,1598,788
       
  YIELDS PER ACRE.*   
 Bushels.Bushels.Bushels.Bushels.Bushels.Cwt.
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
1939-4031.1041.8336.2550.7626.417.23

* Bushel equivalents in lbs.: Wheat, 60; Oats, 40; Barley, 50; Maize, 56; Peas, 60.

As will be seen from the above table, wheat (257,532 acres in 1939-40) and oats (49,751 acres in 1939-40) are the grain crops of major importance, these two accounting for 84 per cent. of the total area under grain and pulse crops for threshing, in the proportions of 71 per cent. and 13 per cent. respectively. Barley, peas, maize, and linseed follow, in that order.

Minor crops for threshing in 1939-40 included 1,049 acres of lupins, 376 acres of rye-corn, and 123 acres of beans, the yields in bushels being 15,709, 6,860, and 2,694 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 1939-40 season produced about two-fifths of the total grain harvested. The proportion in the 1938-39 season was approximately one-third. 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 in the main been disappointing. The Dominion's average annual wheat requirements are approximately 8,900,000 bushels, but, in only three of the last ten seasons, has the total yield exceeded or reached that figure—viz., 1932-33, 1933-34, and 1935-36. In the three years following 1935-36, production declined heavily, the 1938-39 harvest amounting to 5,564,136 bushels only. There was a substantial improvement in the 1939-40 season, increased sowings and a slightly better average yield contributing towards an increase of 2,445,953 bushels, as compared with the previous season, but the yield was still below requirements. As a result, imports in recent years have been on a heavy scale, no less than 3,444,869 bushels being obtained from overseas during 1938 and 3,095,098 in 1939.

VARIETIES OF WHEAT.

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. Particulars regarding varieties of wheat were obtained from 89 per cent. of the total area of wheat threshed for the harvest of 1940. Of the three groups of varieties, Tuscan accounted for 85.1 per cent. of this area and 82.9 per cent. of the yield therefrom. Hunter's, 10.1 per cent. of the area and 12.1 per cent. of the yield, and Pearl 4.7 per cent. of the area and 4.9 per cent. of the yield. Of the individual varieties, Tuscan and Solid-straw Tuscan between them produced 34.3 per cent. of the total yield and Cross 7, previously referred to, 40.6 per cent., the area sown with these two varieties being 39.9 per cent. and 38.9 per cent. of the total respectively.

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 during the last three years is the result of governmental policy aimed at the local manufacture of all 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:—

1935.1936.1937.1938.1939.
 Wheat (bushel of 60 lb.)  
 Bushels.Bushels.Bushels.Bushels.Bushels.
Wheat-production at preceding harvest5,933,2458,859,2237,168,9636,042,0815,564,136
Excess of imports over exports257,777406,8821,582,7083,444,8113,095,083
..6,191,0229,266,1058,751,7319,487,7928,659,219
Change in carry-over-2,181,926+ 624,696-1,049,742+ 770,558-105,841
Estimated total consumption8,372,9488,641,4099,801,4738,717,2368,765,060
Converted to flour, &c.6,341,8556,368,6106,890,3966,545,2796,604,192
Used for sowing (estimated)378,635336,956282,000290,000391,000
Apparent farm and other consumption1,652,4581,935,8432,629,0771,881,9571,769,868
      
 Flour (ton of 2,000 lb.)  
 Tons.Tons.Tons.Tons.Tons.
Production134,067132,987144,724137,083138,190
Excess of imports over exports12,1917,535326306
Change in carry-over+ 1,054-2,274-487+ 2,027-1,146
Apparent consumption145,204142,796145,537135,086139,342

Based upon the figures in the preceding table, the average annual consumption of wheat is approximately 8,900,000 bushels. Of this total, slightly over 6,500,000 bushels are converted into flour and wheatmeal, about 330,000 bushels are utilized for the following 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 1939-40, 87 per cent. was grown in Canterbury, Otago, and Southland, 5 per cent. in the remainder of the South Island, and 8 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 1935-36, 21.33 per cent. of the area sown was threshed; in 1936-37, 23.68 per cent.; in 1937-38, 19.99 per cent.; in 1938-39, 19.31 per cent.; and in 1939-40, 18.53 per cent. Canterbury yielded 41 per cent. of the total oaten-grain produced in 1939-40, followed by Southland with 35 per cent. and Otago with 18 per cent., these three districts together accounting for 94 per cent. of the total oaten-gram yield.

The total and average yields of oaten-grain and of chaff, hay, or ensilage for the five seasons ending with 1939-40 were as follows:—

Season.Grain.Chaff, Hay, or Ensilage.
Total Yield.Average per Acre.Total Yield.Average per Acre.
 Bushels.*Bushels.*Tons.Tons.
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
1939-402,081,10641.83247,2021.52

* Bushel of 40 lb.

VARIETIES OF OATS THRESHED.

An analysis of the threshing returns relating to the season 1939-40 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.
  Cartons54.8762.10
  Sparrowbill0.160.14
    Totals55.0362.24
Dun14.8412.83
Black2.392.24
Algerian24.7019.27
Unspecified3.043.42
    All varieties100.00100.00

White oats are predominantly represented in the above figures with above half of the total area threshed, and nearly two-thirds 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 1939-40 was only 800 acres less than the 1938-39 area, the yield of grain showed a fall of 160,969 bushels, the average yield per acre being 3.78 bushels below the 1938-39 average. During the last ten years, annual sowings have averaged 28,900 acres. Of this area, some 21,700 acres have been threshed for an average annual yield of 770,000 bushels, the balance of 7,200 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 1938-39 and 1939-40:—

 Proportion of Estimated Total Area.
Variety.1938-39.1939-40.
 Per Cent.Per Cent.
Plumage-Archer36.3029.05
Chevallier18.4320.60
Spratt-Archer17.2017.45
Goldthorpe-Spratt9.5110.51
Cape6.4710.02
Skinless6.008.88
Other varieties6.093.49
Totals100.00100.00

The first four varieties shown are malting varieties. In the aggregate, they account for 81 per cent. of the area in 1938-39 and 78 per cent. of the area in 1939-40.

Dominion production of barley invariably falls short of domestic requirements. During the five seasons ending with 1939-40, annual production averaged 914,000 bushels. During the five calendar years ending with 1939, annual importations averaged 462,000 bushels (stock feed, 283,000 bushels; other barley, 179,000 bushels), while exports were practically nil. It is therefore apparent that Dominion barley requirements are approximately 1,376,000 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. In 1939 imports of barley were confined to stock feed, no malting barley being imported. Included in the war-time programme for increased production is an expansion of the area sown for stock-feeding purposes.

POTATOES.

The production of potatoes is almost invariably adequate to meet the home market, and frequently a surplus is available for export. The problem of the disposal of such surplus quantities has been rendered difficult in more recent seasons by import restrictions on New Zealand potatoes entering Australia, although several thousand tons were admitted during 1940. During 1937 some 19,966 tons were exported to Argentina and Uruguay on account of the failure of the South American potato crop, but two shipments aggregating 3,798 tons to Argentina in 1938 resulted in a heavy loss. In contrast, the 1938-39 crop was insufficient to meet home requirements, necessitating the importation of potatoes to supplement the home supplies. Though an increased area of 2,000 acres was sown in 1939-40, the area planted was, apart from the preceding season, the lowest recorded since 1921-22. A good growing season, however, resulted in a particularly heavy crop, the yield of 141,105 tons being 53,434 tons greater than in 1938-39. The record average yield of 7.04 tons per acre was over ½ a ton per acre above the previous highest average yield (6.36 tons in 1937-38).” In 1939-40, 54 per cent. of the total potato area was in the Canterbury District. The Dominion figures for the last five years are as follows:—

Year.Area.Total Yield.Yield per Acre.
 Acres.Tons.Tons.
1935-3622,958121,0045.27
1936-3722,462126,3145.62
1937-3823,090146,7856.36
1938-3918,03287,6714.86
1939-4020,033141,1057.04

The 1939-40 yield was made up of 100,330 tons of table potatoes, 28,250 tons of seed potatoes, and 12,525 tons of pig, &c., potatoes. The corresponding quantities in 1938-39 were 59,023 tons, 20,318 tons, and 8,330 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 1939-40 season cover approximately 50 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.Area.Total Yield.Yield per Acre.
 AcresTons.Tons.AcresTons.Tons.AcresTons.Tons.Acres.Tons.Tons.
Aucklander Short Top1,55511,4887.391,3579,1746.761298496.583,04121,5117.07
Dakota3743,2218.611,65211,1916.771477585.162,17315,1706.98
Arran Chief3313,45310.437607,73810.18302458.171,12111,43610.20
Inverness Favourite3503,65010.432351,9188.1619583.056045,6269.31
King Edward VII1531,1887.763912,8227.22332848.615774,2947.44
Gamekeeper and Northern Star......5363,0325.66......5363,0325.66
Epicure1026796.66984194.285306.002051,1285.50
Aucklander Tall Top856027.081035555.39......1881,1576.15
Arran Banner584187.21665067.67......1249247.45
Cliff's Kidney171146.71614347.11284.00805566.95
Majestic342587.59342046.00......684626.79
Jersey Bennes16754.69411854.51......572604.56
Maori Chief312658.558354.38......393007.69
Robin Adair10979.70281364.86......382336.13
Iron Duke12524.33161157.19......281675.96
Mixed and Minor Varieties443457.843431,9775.7618995.504052,4215.98
Unspecified473687.832381,2535.263191,7835.596043,4045.64
Totals3,21926,2738.105,96741,6946.997024,1145.869,88872,0817.29

“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 8.0 tons per acre from certified seed and 7.5 tons per acre from uncertified seed. The advantage of 0.5 tons per acre in favour of crops from certified seed represents a yield-superiority of 6.7 per cent. Over all varieties, the corresponding advantages amount to 1.2 tons and 17 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 live years are as follows:—

Year.Area.Total Yield.Yield per Acre.Net Importations (Calendar Year following).
 Acres.Tons.Tons.Tons.
1935-369287,0897.641,369
1936-377195,9308.252,498
1937-386184,7777.733,670
1938-396746,92910.283,817*
1939-408398,0259.5643*

* Excess of exports.

In past years the production of onions has rarely been sufficient to supply home requirements. As onions are a semi-perishable commodity it has been found convenient to export in the flush of the New Zealand season, and, later in the year, obtain supplies from overseas, but imports have usually exceeded exports. However, a considerable improvement has been effected in the keeping qualities of the varieties grown, and it is confidently expected that imports will be on a much lower scale in future.

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 new 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. At the request of the Committee, the Internal Marketing Department early in 1939, assumed the responsibility for the importation of onions, and all supplies obtained from overseas during that year were handled by it. Imports and exports are 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 five 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.
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
1939-40164,657594,22158,150209,233417,3201,443,581

In 1939-40 grasses and clovers cut for bay or ensilage totalled 554,607 acres, and lucerne 39,614 acres. Oats was the only cereal crop utilized in any quantity for this purpose, the area of oats cut for hay or ensilage being 162,747 acres. The principal green-fodder crops, apart from oats, are rape and/or kale (189,766 acres), and chou moellier (14,694 acres). The latter crop is becoming increasingly popular for fodder purposes. Of the cereal crops fed-off to stock during the 1939-40 season, oats accounted for 56,043 acres of the total area (70,236 acres). Turnips are the principal root crop grown in the Dominion, the total acreage in 1939-40 being 404,841 acres (including 58,957 acres of turnips and rape mixed). Other root crops included 9,610 acres of mangolds and 1,066 acres of carrots. Pumpkins and marrows were grown for fodder to the extent of 1,550 acres.

The total and per-acre yields obtained from the various crops cut for chaff, hay, or ensilage are 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.1938-39.1939-40.
Total Yield.Yield per Acre.Total Yield.Yield per Acre.
 Tons.Tons.Tons.Tons.
Wheat2,4751.852,1251.86
Oats316,6981.81247,2021.52
Barley1,3041.941,1972.28
Maize1,5636.381,3345.42
Grasses and clovers for hay829,3991.84907,6941.88
Grasses and clovers for ensilage267,0353.90281,7583.85
Lucerne96,0602.59103,1132.59

GRASS-SEED.

The total area of grasses and clovers cut for seed during the 1939-40 season was 112,142 acres, yielding 1,149,132 bushels of 20 lb., as against 1,122,572 bushels from 109,695 acres in 1938-39. Canterbury, Otago, and Southland land districts between them provided 86 per cent. of the area cut.

The areas and yields of the principal grass and clover crops harvested for seed during each of the five years 1935-36 to 1939-40 are given in the tables following:—

AREAS.

Year.Rye-grass.Cocksfoot.Chewings Fescue.Crested Dogstail.Red Clover and Cow-grass.White CloverBrown-top.
 Acres.Acres.Acres.Acres.Acres.Acres.Acres.
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
1939-4050,73810,25513,9053,7777,9778,84115,349

YIELDS.

Year.Rye-grass.Cocksfoot.Chewings Fescue.Crested Dogstail.Red Clover and Cow-grass.White CloverBrown-top.
 lb.lb.lb.lb.lb.lb.lb.
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
1938-3915,077,9342,644,8351,906,898646,676995,005863,308222,000
1939-4015,997,2871,063,3942,051,828614,7671,180,8871,038,162379,611

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 1939 amounting to 43,152 cwt., valued at £262,496. The total quantity of locally-produced grass and clover seed exported to all countries amounted to 45,829 cwt., with a recorded value of £280,142. 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 mouths of the year.

At the beginning of the year 1940 there were 17,566,663 acres under artificially sown grasses (including 706,363 acres cut for seed, hay, or ensilage during the preceding season), and in addition 13,937,733 acres of occupied land still remained in tussock or other native grasses, making a total of 31,504,396 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 five years specified:—

Year.Artificially Sown Pasture Grasses.Tussock and other Native Grasses.Total Area under Grass.
Cut for Seed, Hay, or Ensilage.Not Cut for Seed, Hay, or Ensilage.*
 Acres.Acres.Acres.Acres.
1935-36711,28016,784,82214,270,40731,766,509
1936-37639,63216,869,82214,216,18431,725,638
1937-38563,03416,982,41114,043,11231,588,557
1938-39665,63716,998,27513,850,13731,514,049
1939-40706,36316,860,30013,937,73331,504,396

* Includes approximately 200,000 acres also sown with crops.

During the year 1939-40, 66,856 acres of land which had not previously been cultivated were sown down in new pasture, as against 71,114 acres in 1938-39.

TOP-DRESSING (PASTURE LANDS).

As shown in the following table, a total area of 4,187,284 acres of grassland was top-dressed during the twelve months ended 31st January, 1940, an increase of 170,340 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 only2,487,210277,0852,764,295
Lime only97,035107,443204,478
Both artificial fertilizers and lime907,282311,2291,218,511
Totals3,491,527695,7574,187,284

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 83 per cent. of the area top-dressed.

The following table shows particulars of areas top-dressed over the last five years:—

 Area Top-dressed.
Year.With Artificial Fertilizer only.With Lime only.With both Artificial Fertilizer and LimeTotal Area Top-dressed.
 AcresAcres.Acres.Acres.
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
1939-402,764,295204,4781,218,5114,187,284

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 1939-40 there were 9,018 acres of market gardens. Nurseries and seed-gardens occupied 836 acres, while 82,670 acres were in private gardens, grounds, &c. The area in plantations (not virgin bush) was 839,906 acres, made up of 818,421 acres of conifers and 21,485 acres of eucalyptus and other broadleaved trees. State plantations are covered by these figures.

It should be noted that these statistics relate only to holdings of 1 acre or upwards outside boroughs.

The figures for market gardens, plantations, &c., for the last five years are as follows:—

Year.Market Gardens.Nurseries, &c.Private Gardens, &c.Plantations.
 Acres.Acres.Acres.Acres.
1935-367,9051,01381,598779,877
1936-377,79595582,648787,965
1937-387,41387981,698846,974
1938-397,80689081,482844,423
1939-409,01883682,670839,906

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 three years, the 1939-40 figure of 20,899 acres showing a decrease of 3,957 acres as compared with the 1936-37 total. These and following figures, unless stated otherwise, refer to orchards of ¼ acre or over on holdings of 1 acre or more situated outside borough boundaries.

In recent years there had been a considerable increase in the area devoted to citrus-culture, but farther expansion in this direction would now appear to have been halted, a slight decrease in the acreage devoted to lemon-culture being recorded in 1939-40. As from 1st May, 1939, the marketing of lemons was brought under the control of the 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 1,824 acres (inclusive of areas situated within borough boundaries), comprising 990 acres of lemons and 834 acres of oranges. At the 31st March, 1940, registered orchards contained 89,089 lemon-trees and 75,013 orange-trees, compared with respective totals of 93,373 and 69,770 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.
1930-3128,134
1931-3225,755
1932-3325,317
1933-3425,069
1934-3525,087
1935-3625,072
1936-3724,856
1937-3822,397
1938-3921,753
1939-4020,899

A classification of 1939-40 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 acre3,8631,579
1 to 2 acres2,0152,570
2¼ to 3 acres282800
3¼ to 4 acres196757
4¼ to 5 acres186916
5¼ to 10 acres5634,354
10¼ to 15 acres2553,201
15¼ to 20 acres1272,255
20¼ to 25 acres581,339
25¼ to 30 acres23647
30¼ to 40 acres28959
40¼ to 50 acres10448
50 acres and over151,074
Totals7,62120,899

It is apparent that the majority of orchards are comparatively small, the Dominion average area being but 2.7 acres. Those up to 5 acres represent 86 per cent. of the total number and account for 32 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.
Nelson5534,6018.32
North Auckland1,7474,2782.45
Otago6713,2364.82
Hawke's Bay6133,1405.12
Canterbury1,1202,0601.84
Auckland1,3111,5581.19
Remainder of land districts (six)1,6062,0261.26
All districts7,62120,8992.74

The following table is the result of a special collection for the 1939-40 season from registered orchardists on holdings of 1 acre or more outside boroughs. While 2,780 orchards covering 17,129 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. 
Apples1,299,7002,930,0002,707,40054,200109,800
Pears118,700267,300249,6004,60013,200
Peaches150,500216,400208,500..28,500
Nectarines21,40028,40026,500..3,300
Apricots56,00083,30081,500..9,600
Plums70,100101,90093,400..16,400
Cherries16,70011,40011,000..5,400
Quinces10,90017,70015,900..3,800
Sweet oranges12,9007,4004,70080012,500
Poorman oranges15,50026,30023,2001,2009,200
Lemons47,40068,00061,2002,1009,100
Other citrus fruits9005002001001,600
Other tree fruits400400400..100
Totals, all fruit trees1,821,1003,759,0003,483,50063,000222,500

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. not 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 was 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) applied to exports of fruit to certain specified markets during the 1937-38 and 1938-39 seasons. 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. Owing to the probable loss of overseas markets for apples and pears on account of war conditions, the Government undertook to purchase the entire crop of graded fruit for the 1939-40 season. Particulars of this arrangement are containing in Subsection “A” (page 360).

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.

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 469 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.

Tung-tree plantations occupy 3,926 acres and passion-fruit 131 acres, mainly in the North Auckland Land District.

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, 1940, numbered 4,683, of which 2,422 were taxable and 2,261 non-taxable. The total orchard-tax payable in respect of the year 1939-40 was £1,931.

The New Zealand-grown Fruit Regulations, 1940, 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 on a commercial basis was initiated comparatively recently, 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.

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.
1935-361,5181,065,693
1936-372,1321,514,124
1937-381,9721,748,300
1938-391,8071,402,617
1939-401,8281,555,631

In addition, an area fluctuating between 150 and 200 acres is grown annually in the Borough of Motueka. The great bulk of the tobacco crop is produced in Waimea County, in which 1,825 acres were grown in 1939-40. The majority of leaf is flue-cured, the proportions for flue-cured and air-cured being in the vicinity of 85 per cent. and 15 per cent. respectively.

A brief description of the Tobacco-growing Industry Act, 1935, and the measures taken in regard to the fixation of prices for raw tobacco are contained in the preceding Subsection (page 367).

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 rope-making, &c. The area of 55,734 acres returned as under phormium on occupied holdings in 1939-40 was divided between the North and South Islands in the proportions of 52 per cent. and 48 per cent. respectively. The figures for each of the last ten years are as follows:—

Year.Area. Acres.
1930-3171,219
1931-3277,437
1932-3364,206
1933-3472,853
1934-3572,823
1935-3668,933
1936-3763,015
1937-3866,515
1938-3957,602
1939-4055,734

In 1930-31 the flax-milling industry was in a state of decline as a result of the collapse in overseas prices. A subsidy on hemp exported, based on ruling overseas prices, was in force from December, 1931, until August, 1939, and this assisted materially in rehabilitating the industry.

The Flax Plan Industrial Committee was 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.

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 595 acres under hop-vines in the season 1939-40.

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:—

Yearlb.Value. £
1935447,18527,359
1936477,63028,484
1937135,4198,347
1938387,97221,093
1939114,5416,818

The marked decline in exports in 1937 and 1939 was occasioned by poor crops in those years.

By Order in Council dated 12th January, 1939, the sale of hops was brought under the control of the Marketing Department. A further Order in Council dated 20th July, 1939, established a Hop Marketing Committee composed of one Government representative and five members elected by producers. The functions of the Committee are to regulate and control the marketing of hops; but all policy matters are subject to the approval of the Minister of Marketing, and the Internal Marketing Department has the responsibility of seeing that the Committee carries out its function in a sound and reasonable manner. The prices agreed upon for first-grade hops for the 1939 season were 1s. 10d. per pound for brewing-quality and 1s. 9d. per pound for packet hops.

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 live-stock, 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.

1936.1937.1938.1939.1940.
Horses276,170277,799278,167274,803271,581
Dairy cows1,951,5071,935,5241,872,7971,853,7131,850,071
Cattle (including dairy cows)4,254,0784,389,1014,506,0824,564,9484,533,032
Sheep shorn during season26,278,47727,319,18528,509,66829,146,13029,041,538
Lambs shorn during season3,618,6484,263,4034,192,0233,923,1014,119,270
Lambs tailed during season15,696,61716,866,02117,340,91416,948,97917,229,569
Sheep (including lambs) as at 30th April30,113,70431,305,81832,378,77431,897,09131,062,875
Pigs808,463802,419756,466683,463714,001

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, 1940. Sheep shorn, lambs shorn, and lambs tailed are for the season 1939-40. Sheep are as at 30th April, 1940.

Land District.Horses.Dairy Cows.Total Cattle.Sheep shorn.Lambs shorn.Lambs tailed.Sheep.Pigs.
North Auckland31,239381,173728,1721,077,081229,065563,6771,088,958147,549
Auckland46,937612,8471,158,8872,248,847544,7501,418,9752,317,162252,168
Gisborne13,36050,530345,5622,205,475773,7211,022,8402,339,29721,920
Hawke's Bay16,82963,404404,0583,943,425687,9782,268,9874,148,25124,418
Taranaki15,979240,351407,462810,263210,720481,474760,55577,298
Wellington37,014252,588886,5836,451,8371,540,4533,754,6556,525,65294,900
Marlborough5,67314,13041,2201,051,69732,651445,1071,145,5836,999
Nelson5,25734,28471,869393,4589,782155,393448,02718,525
West-land2,12114,55045,89176,1624,81858,66687,5596,274
Canterbury45,13573,561178,8544,834,05063,4643,101,1785,225,94538,924
Otago28,17947,001116,191,3,469,3139,5062,015,0643,948,90215,516
Southland23,85865,652148,2832,479,93012,4621,943,5533,026,9849,510
Totals271,5811,850,0714,533,03229,041,5384,119,27017,229,56931,062,875714,001

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 days 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, 1930, was 30,841,287, this being the highest total up to that time. An annual decline of about 1,000,000 then set in and continued until 1933; a series of successive increases then raised the total to the record figure of 32,378,774 in 1938. The two succeeding years were characterized by particularly heavy slaughterings, and this, together with a particularly severe winter in 1939, has resulted in a decrease of 1,315,899, the number at 30th April, 1940, being 31,062,875.

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.
193115,886,87613,905,64029,792,516
193214,946,98713,744,80128,691,788
193314,954,02912,801,93727,755,966
193415,264,58813,384,45028,649,038
193515,749,01613,327,73829,076,754
193616,371,84413,741,86030,113,704
193717,065,13514,240,68331,305,818
193817,705,99914,672,77532,378,774
193917,509,22214,387,86931,897,091
194017,075,05613,987,81931,062,875

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).
193612,398..249,0167,105174,869443,388
193710,991..260,5106,077188,320465,898
193812,261..266,7247,588195,045481,618
193913,278..268,2577,729190,189479,453
194012,273..262,4675,939188,556469,235
       
Sheep of a Distinctive Breed but not entered in Flock-book.
1936480,0051,158,0975,078,834279,1152,067,7089,063,759
1937504,6531,138,9614,968,376246,7822,140,3458,999,117
1938510,0991,171,3225,105,228298,3572,254,8479,339,853
1939530,3481,183,0365,333,119301,5502,231,1339,579,186
1940528,8471,045,8465,026,022281,0531,907,5038,789,271
       
Crossbred Sheep.
1936..1,450,54813,341,111578,8715,236,02720,606,557
1937..1,514,28014,103,191542,6535,680,67421,840,803
1938..1,723,39514,291,914728,6325,813,36222,557,303
1939..1,632,02214,358,923565,9065,281,60121,838,452
1940..1,388,74014,439,168678,5585,297,90321,804,369
       
Totals.
1936492,4032,608,64518,668,961865,0917,478,60430,113,704
1937515,6442,653,24119,332,077795,5178,009,33931,305,818
1938522,3602,894,71719,663,8661,034,5778,263,25432,378,774
1939543,6262,815,05819,960,299875,1857,702,92331,897,091
1940541,1202,434,58619,727,657965,5507,393,90231,062,875

The average size of the flocks was 984 in 1936, 1,004 in 1937, 1,015 in 1938, 992 in 1939, and 962 in 1940. A classification according to size shows the following position:—

Size of Flocks.1936.1937.1938.1939.1940.
1 to2007,6687,3317,1437,4757,949
201 to5007,3387,4747,6827,7897,656
501 to1,0006,8017,1027,4767,4617,411
1,001 to2,5006,2966,6656,9036,7886,734
2,501 to5,0001,7501,8501,9441,8811,829
6,001 to10,000578592596588563
10,001 to20,000134135141140127
20,001and over2528242118
Total flocks 30,59031,17731,90932,14332,287

The numbers of the different classes comprising the flocks in April, 1940, were as follows:—

Breed of Sheep.Stud Sheep entered in Flock-book.Sheep of a Distinctive Breed, not entered in Flock-book.Totals.
Merino20,139913,774933,913
Lincoln1,5536,2997,852
Romney224,7794,126,7714,351,550
Border Leicester16,79832,25549,053
English Leicester13,35835,55448,912
Shropshire1,70410,63512,339
Southdown133,360219,177352,537
Corriedale45,0631,255,0171,300,080
Ryeland7,9605,34213,302
Half-bred3,6722,176,9482,180,620
Dorset horn3231,5521,875
Cheviot3891,0051,394
Sussex..55
Suffolk81338419
Kerry Hill56..56
Polwarth..6262
Crossbred rams..4,5374,537
    Totals469,2358,789,2719,258,506
Flock sheep -    
  Crossbreds and others not otherwise enumerated....21,804,369
    Grand Total....31,062,875

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:—

The diagram clearly illustrates the postponed effect on the sheep population of changes 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 the total number of sheep twelve months later. Breeding-ewes rose steadily in numbers from 1932 until 1939, when the record figure of 19,962,299 was reached. Although a decrease of 232,642 was recorded in 1940, the number for that year is the second highest on record.

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.)
Australia110,927
Russia (U.S.S.R.)57,300
United States54,478
Argentina43,790
India (whole)42,062
South African Union41,150
New Zealand 31,063
United Kingdom26,904
China21,933
Spain19,093
Uruguay17,931
Turkey16,449
Iran16,019
Peru14,900
Brazil12,900
Rumania12,373
French Morocco10,162
Yugoslavia10,137
France9,872
Italy9,467
Bulgaria8,839
French West Africa8,412
Greece8,139
Mexico6,000
Algeria5,965
Chile5,749
Bolivia5,232
Iraq4,976
Germany (former territory)4,900
Tunis3,383
Canada3,366
Portugal3,274
Kenya3,255
Eire3,197
British Somaliland2,500
Anglo-Egyptian Sudan2,500
Manchukuo2,208
Syria and Lebanon2,129
Italian 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 a normal annual consumption of between 7,000,000 lb. and 8,000,000 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 138.2/100, and for slipe wool 120.6/100.

In the following table covering the last ten seasons, whore 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.
1931233.26.45.3+ 13.7258.6
1932236.96.86.1+ 19.7269.5
1933294.911.17.1-36.0277.1
1934297.514.46.8-29.1289.6
1935211.89.07.1+37.1265.0
1936331.78.27.8-43.4304.3
1937300.07.07.7-11.8302.9
1938269.56.27.2+ 13.9296.8
1939319.18.07.3-6.7327.7
1940284.78.210.4+ 6.7310.0

The United Kingdom is usually the largest purchaser of New Zealand wool. The main purchasers of the 1938-39 crop were as follows: United Kingdom, 44 per cent.; France, 20 per cent.; U.S.A and Canada, 7 per cent.; Belgium and the Netherlands, 5 per cent.; Japan, China, India, 5 per cent.; Australia, 4 per cent.; Germany, 3 per cent.

Following the outbreak of war in September, 1939, arrangements were made for the purchase by the United Kingdom Government of New Zealand's entire exportable surplus of wool for the full period of the war and one year thereafter. An overall average price of 12.25d. per pound for greasy wool was agreed upon, with the proviso that this price may be reviewed in each year if either of the parties to the agreement so desires. No alteration has been made for the 1940-41 clip. This price is net to the grower for wool delivered at brokers’ warehouses. It should be noted that this is a departure from peace-time practice, under which certain charges incurred subsequent to that delivery point are debited to the grower; consequently, the average price of 12.25d. per pound is not strictly comparable with the following average realizations of previous years: 1938-39, 9.17d.; 1937-38, 10.04d.; 1936-37, 15.71d.; 1935-36, 9.13d.

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).
1931-32.1932-33.1933-34.1934-351935-36.1936-37.1937-38.1938-39.
Million Pounds Weight.
Principal Exporting Countries        
Australia1,0081,0639961,0159719831,010958
Argentina383393387370360379376385
New Zealand 270277290265304303297328
South Africa313329283219250277243261
Uruguay10611193112110114107114
Total of above countries2,0802,1732,0491,9811,9952,0562,0332,046
         
Other Important Countries        
United States464440460451453449455458
Soviet Russia196129121128158202259303
United Kingdom113119120115109108107111

As previously stated, New Zealand's wool-clip for the 1939-40 season is estimated at 310,000,000 lb. Owing to lack of reference, no later figures are available for the remaining countries enumerated above.

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 five 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.
193621,6092,8907,7014,65476382741,200
193710,4952,2376,2075,8658961,52929,400
193820,4733,4589,1845,1021,02587443,300
193917,0983,3866,3115,2451,39153836,600
194014,0535,72110,1858,092932..43,300

Stocks of wool at the end of the 1939-40 season show an increase of 6,700,000 lb. as compared with holdings at the end of the previous season.

Of the total stocks at 30th June, 1939, woolbrokers held 11,700,000 lb. and farmers 1,700,000 lb; both these figures are on a greasy basis. The classification is made on the basis of possession and not of beneficial ownership.

Details of wool stocks at 30th June, 1940 (without conversion to a greasy basis), are as follows:—

Greasy.Scoured.Washed.Slipe.Crutchings, &c.Wool on Skins.Unspecified.
Thousand Pounds Weight
Merino1,229160..2040018..
Half-bred4,2327212231,313948134..
Corriedale4221277512412..
Other including crossbred—       
  Sheep6,0592,5652853,8326,210440..
  Lambs2,1119787133,934400153..
  Unspecified..57..1,01110175..
Totals14,0534,4931,22810,1858,092932..

CATTLE.

The total number of cattle in the Dominion at the enumeration of 1940 was 4,533,032, as against 4,564,948 in 1939. The figures for 1940 according to the classification in use, are as follows:—

Breeding-bulls, two years old and over— 
  Dairy breeds56,182
  Beef breeds22,516
Dairy cows and heifers, two years old and over— 
  In milk during year1,739,874
  Dry during year110,197
Other cows and heifers, two years old and over707,463
  Heifers, one and under two years old— 
  Intended for dairying336,003
  Other189,747
Steers, two years old and over411,584
Steers and bulls, one and under two years old217,064
Heifer calves under one year old— 
Intended for dairying331,792
Other183,848
Bull and steer calves under one year226,762
Total4,533,032

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 five years. Herd-book societies are established for the Jersey, Friesian, Ayrshire,

Milking Shorthorn, and Red 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 both total cattle and 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.

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. Hawke's Bay is second, followed by Gisborne, 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:—

CountryNumber of Cattle. (Thousands.)
India (whole)160,220
United States68,769
Russia (U.S.S.R.)63,200
Brazil50,298
Argentina33,101
China22,647
Germany (former territory)19,900
France15,622
Australia13,078
South African Union11,579
Mexico10,083
Colombia9,167
United: Kingdom8,875
Canada8,474
Uruguay8,297
Italy7,667
Turkey5,896
Thailand5,618
Kenya5,233
Burma5,163
Cuba5,074
Tanganyika5,035
Madagascar4,947
New Zealand 4,533
Netherlands East Indies4,463
Yugoslavia4,267
Rumania4,184
Eire4,050
Spain3,570
French West Africa3,427
Denmark3,258
Venezuela3,091
Sweden2,976
Paraguay2,920
Netherlands2,817
Nigeria2,750
Anglo-Egyptian Sudan2,700
Chile2,634
Uganda Protectorate2,509
Southern Rhodesia2,290
Indo-China2,264
Iran2,207
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, butter, 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. 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. Factories 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.

Comprehensive regulations covering all phases of the industry, as regards both “supplying" dairies and manufacturing dailies, are contained in the Dairy-produce Regulations 1938, gazetted on the 28th July, 1938, and consolidating all previous regulations on the subject.

The Dairy Supply Control Order 1940 makes it illegal for a supplier of milk to a cheese-factory to transfer his supply to any other concern, but permits a supplier who has been supplying milk or cream to a creamery to transfer his supply to a cheese-factory. Under the previous regulations no transfer of supply was permitted during any particular season without the antecedent consent in writing of the owner or manager of the factory formerly supplied. The object of the new regulations is to assist towards an increased cheese-production, which has been the subject of a special request by the United Kingdom Government.

The Dairy Industry 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.

The following table shows the number of factories registered under the Dairy Industry Act as at 31st March, 1940, 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, 1939-40.Number of Suppliers.
Butter.Cheese.Dual Plant.Butter.CheeseButter.Cheese and Dual Plant.
    Tons.Tons.  
Auckland5237392,59418,83623,9091,792
Hawke's Bay91224,7452,5894,284521
Taranaki16663011,83839,5522,5863,981
Wellington1841510,5029,3896,2461,394
Marlborough35..583565731141
Nelson6....1,904..1,521..
Westland5....734..500..
Canterbury512..1,4091,3256,381256
Otago and Southland868195213,0865,3702,819
Totals, 1939-4012224141125,26185,34251,52810,904
Totals, 1938-3912124239128,94984,77854,25610,707

PRODUCTION AND EXPORT OF DAIRY-PRODUCE.

Returns of factory production show that during the 1938-39 factory year 2,910,046 cwt. of creamery butter were produced by dairy factories in the Dominion. In addition to this, 46,576 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 1938-39 as 1,705,277 cwt.

Factory production of butter and cheese during each of the last five factory years was as follows:—

Factory Year.Creamery Butter.*Whey Butter.Cheese.
* Including whey butter where not separately enumerated.
 Cwt.Cwt.Cwt.
1934-353,105,97451,0811,914,458
1935-363,322,09943,8801,769,984
1936-373,507,20645,9011,826,302
1937-383,258,21549,1881,769,351
1938-392,910,64646,5761,705,277

Pig-raising is an important industry ancillary 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. 400-402 and 404).

Estimates of the production of butterfat per cow are made each year by the Department of Agriculture. 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 estimated yield per cow, together with the estimated total production of butterfat, for each of the last ten seasons. Estimates for earlier years are contained in the 1940 and previous issues of the Year-Book.

Season.Estimated Yield per Cow.Total Butterfat-production.
Cows in Milk only.
 lb.Million Pounds Weight.
1930-31214.74322.0
1931-32214.71339.8
1932-33230.33397.1
1933-34234.91426.7
1934-35224.26409.9
1935-36233.25425.3
1936-37245.05442.4
1937-38238.05419.9
1938-39215.94376.7
1939-40238.56415.0

The averages shown in the table are in respect of cows in milk only. Averages for all dairy cows (in milk or dry) for each of the last five seasons were: 1935-36, 217.93 lb.; 1936-37, 228.56 lb.; 1937-38, 224.19 lb.; 1938-39, 203.21 lb.; and 1939-40, 224.37 lb.

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 also declined, but the amount exported increased slightly.

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.
19352,789,2982,696,8321,727,5521,723,197
19362,796,1452,721,3421,658,2061,654,827
19372,976,0852,903,0051,647,1601,644,241
19382,614,5492,526,9811,610,5231,608,437
19392,443,2972,391,5121,677,2571,676,320

Butter exports in 1939 were valued at £(N.Z.) 16,111,207 and cheese exports at £(N.Z.) 5,869,890. These values do not represent the guaranteed prices, but are the declared export values based on prices ruling in the overseas market.

As will be seen from the above table, the United Kingdom takes the bulk of New Zealand butter exports and practically all cheese exported. Since 1934, New Zealand has held the position of principal supplier of butter to the United Kingdom, supplying over one-quarter of the total imports of this commodity Denmark has been the second highest supplier, followed by Australia, the three countries mentioned between them normally supplying over 70 per cent. of the total imports.

For some time now New Zealand has held the dominant position of principal supplier of cheese to the United Kingdom, usually supplying from 50 per cent. to 65 per cent. of all cheese imported. Canada is the next largest source of supply, these two countries between them supplying approximately three-quarters of the total cheese imported.

Shortly after the outbreak of war, an agreement was reached between the United Kingdom and New Zealand Governments whereby the former undertook to purchase certain quantities of butter and cheese from the production of the 1939-40 season, and similar arrangements have since been made in regard to the 1940-41 season. Particulars of the contract entered into may be found in Subsection A of this Section.

Reference to the consumption of dairy-produce within New Zealand and certain other countries will be found in Section XLIII, Consumption of Commodities.

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 staff in New Zealand and London.

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 1/200d. to 1/100d. per pound on butter and from 1/100d. to 1/50d. 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 Marketing Act, together with a statement of the guaranteed prices operative in respect of dairy-produce for export, is contained in Subsection A (354-357).

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 eight calendar years available. The New Zealand figures relate to the twelve months ended 30th June following the year shown.

Country.1932.1933.1934.1935.1936.1937.1938.1939.
* Not available.
Butter (Million Pounds Weight).
Denmark348332330305322337348330
New Zealand 272317288312335327276274
Australia229212247257186183228250
Netherlands456381103133119112124
Estonia, Latvia, Lithuania9176788895105123*
Sweden30385145425263*
Eire37455759584342*
Russia (U.S.S.R.)688284655132**
Finland32262423313138*
Argentina5631181523191620
Poland341013241829*
Hungary4896101383
         
Cheese (Million Pounds Weight).
New Zealand 215223208181186189179188
Netherlands170141135135125138129115
Canada87746156828991101
Italy67535561435453*
Switzerland4445394041394946
Australia911121512193540
France29252625232527*
Denmark1522141521212021
Finland7999111515*

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 1936. However, a decline set in over the next three years, a small decrease in 1937 being followed by successive decreases of 46,000 and 73,000 in 3938 and 1939. The 1940 figure shows an increase of 30,538, the whole of which is confined to pigs under one year old, the total number of animals above that age having declined by 4,781. It is of interest to note that the number of dairy cows has also shown a decrease since 1936.

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.
1936528,442142,76421,199116,058808,463
1937518,282149,89221,324112,921802,419
1938488,864142,58920,210104,803756,466
1939438,953128,74319,01396,754683,463
1940446,479156,53618,22792,759714,001

A table showing the classification of pigs by breeds as at the special collection undertaken in 1928 appears in the 1940 and previous issues of the Year-Book.

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.

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 1940. At the midway point (1927) dairy cows accounted for the same percentage (41) as in 1940.

Regarding pigs, the diagram shows three periods of declining numbers—namely, 1916 to 1919, 1928 to 1931, and 1936 to 1939. 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, but as already indicated, a slight increase has been recorded for 1940.

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 including occupied territories.

† Not specifically designated as dairy cows.

  Thousands.Thousands. 
Germany*Dec., 193925,20010,000252
United StatesJan., 194058,31225,334230
DenmarkDec., 19393,1341,618194
YugoslaviaDec., 19383,4511,994173
RumaniaFeb., 19373,1702,110150
ArgentinaJune, 19373,9762,824141
ItalyMar., 19303,3182,389139
United KingdomJune, 19394,3903,886113
Russia (U.S.S.R.)Jan., 193825,70022,700113
Estonia, Latvia, and LithuaniaJune, 19382,3852,105113
CanadaJune, 19394,2943,933109
PolandJune, 19387,5257,237104
NetherlandsMay, 19391,5531,50699
FranceNov., 19387,1278,73282
SwedenJuly, 19381,3711,91272
New Zealand Jan., 19407141,85039
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.Overseas Shipments (including Equivalent of Pieces, &c.).
At Abattoirs and Slaughterhouses.On Farms.*Total.
* Year ended 31st January
Sheep.
 Number.Number.Number.Equivalent Carcases.
19362,674,554586,3363,260,8901,876,800
19372,901,315562,1993,463,5141,767,900
19383,351,208524,1553,875,3631,948,600
19394,153,927543,3474,697,2742,152,900
19403,878,611565,4824,444,0932,805,900
Totals for five years16,959,6152,781,51919,741,13410,612,100
Lambs.
19368,685,53669,4698,755,0058,210,600
19379,294,72263,0339,357,7558,732,800
19389,957,73458,63810,016,3729,201,500
19399,910,78262,6319,973,4139,331,700
194010,074,50265,53210,140,03410,323,300
Totals for five years47,923,276319,30348,242,57945,805,900

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.

During the five calendar years up to 1938, New Zealand supplied an average of 00 per cent. of the total frozen mutton imported into the United Kingdom and 52 per cent. of the total imports of frozen lamb. Thus it can be seen that New Zealand holds a dominant position in the supply of these commodities. United Kingdom imports from Australia, the next largest supplier, averaged 24 per cent. and 27 per cent. respectively for the same period.

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. However, the outbreak of war in September, 1939, necessitated a complete review of the position, with the result that an arrangement was entered into whereby the United Kingdom agreed to purchase, as in the case of butter and cheese, certain defined quantities of meat. Details of the agreement are given in Subsection A of this Section.

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 brightened considerably when several trial shipments of New Zealand chilled beef were despatched to England in 1933. The experiments proved very successful, and were followed by larger shipments. In 1934 approximately 40,000 cwt. were forwarded to the United Kingdom, and each succeeding year witnessed a steady expansion of the trade, the quantity shipped in 1938 being 350,006 cwt. With the outbreak of war, the necessity for conserving shipping-space resulted in the temporary cessation of the industry, the quantity forwarded during the nine months ended in September, 1939, being 311,112 cwt., as compared with 302,890 cwt. in a similar period of 1938.

Exports of frozen beef have also increased considerably during the last three years, the quantities shipped to the United Kingdom in 1937, 1938. and 1939 being 531,160, 544,764, and 672,310 cwt. respectively as compared with 484,028 cwt. in 1936. The suspension of the chilled-beef industry, referred to in the previous paragraph, would account in some measure for the substantial increase recorded for the year 1939.

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.Overseas Shipments of Beef (including Equivalent of Boneless, &c.).
At Abattoirs and Slaughterhouses.On Farms.*Total.
* Year ended 31st January.
 Number.Number.Number.Equivalent Carcases.
1936563,48813,270576,758178,900
1937506,1419,928516,6150,800
1938588,6567,940596,596197,200
1939588,7725,684594,456213,900
1940594,9334,813599,746200,200
Totals for five years2,841,99041,6352,883,025941,000

PIGS.

During the five years ended the 31st March, 1940, 4,955,051 pigs were slaughtered at abattoirs, bacon-factories, and registered slaughterhouses, and during the quinquennium to the 31st January, 1940, 186,944 were slaughtered by farmers on holdings of 1 acre or over, the total slaughterings during the five years representing 5,141,995 carcases. The figures for each year are:—

Year ended 31st March,Pigs slaughtered.Overseas Shipments of Frozen Pork, Bacon, and Ham.
At Abattoirs, &c.On Farms.*Total.
* Year ended 31st January.
 Number.Number.Number.Equivalent Carcases.
1936994,83946,8911,041,730074,000
19371,062,51043,9501,106,466663,000
19381,085,10737,4241,122,531678,000
19391,012,83630,8281,043,664630,000
1940799,75927,845827,604483,000
Totals for five years4,955,051186,9445,141,9953,128,000

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. During the four years 1935 to 1938 imports of New Zealand frozen and chilled pork into the United Kingdom averaged 559,864 cwt., or 53.75 per cent. of the total pork imports. These figures amply illustrate the important position held by New Zealand as a supplier.

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 carcases imported from New Zealand are “baconers,” the curing process being carried out in the United Kingdom. Bacon usually forms approximately 80 per cent. of all pig products imported into the United Kingdom. Of aggregate imports of bacon in 1938, Denmark supplied 49 per cent., with Canada, Eire, the Netherlands, Poland, and Sweden, in that order, supplying the bulk of the remainder.

VEAL.

In recent years the veal industry has developed rapidly, and exports of veal have increased appreciably, mainly as a result of the organization of the “bobby" calf trade. 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.Overseas Shipments of Veal.
At Abattoirs and Slaughterhouses.On Farms.*Total.
* Year ended 31st January.
 Number.Number.Number.Cwt.
19361,074,65611,5751,086,231110,082
19371,045,8278,6801,054,507120,592
19381,079,5720,7931,086,365149,328
19391,013,9685,8031,019,831140,103
19401,055,9875,0081,060,995189,021
Totals for five years5,270,01037,9195,307,929709,120

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.

Probably one of the most important functions of the Board has been 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.

Other important functions of the Board include supervision of grading, inspection of loading and unloading of vessels, advertising abroad, trial shipments to new markets, scientific survey work, and grants to the Royal Agricultural Society and other bodies to encourage production of suitable export types of lambs, pigs, &c.

The Board has taken an active part in the development of the chilled-beer industry and has also encouraged the expansion of the pig industry by grants to recording clubs, and in other directions.

Immediately on the outbreak of war the Board placed its whole organization, both in New Zealand and in London, at the disposal of the Government, and was closely associated with the negotiations for the purchase and sale of New Zealand meat referred to earlier.

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:—

1936.1937.1938.1939.1940.
Draught and three-quarter draught122,749124,111124,837123,594122,245
Spring-cart (including half-draught)47,49148,08948,06248,17048,561
Hacks and light working horses78,27677,73977,16974,97873,227
Thoroughbred and other horses14,64014,84615,08515,04714,534
Total horses263,156264,785265,153261,789258,567

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, showed a decrease of 1,243, followed by a further decrease of 1,349 in 1940. This decline in the numbers of horses of the heavy type has been accompanied by a marked increase in the use of mechanical traction for farm work, the number of agricultural tractors on farms in 1940 being 11,278, as compared with 6,585 three years earlier.

HORSES AND TRACTORS.

On holdings of 1 acre and over outside borough boundaries there were, at 31st January, 1940, 258,567 horses and 11,278 agricultural tractors.

Excluding the fourth group (thoroughbred and other), shown in the previous table, horses were located on 59,155 of the 86,304 holdings of 1 acre or over outside

borough boundaries, and tractors on 10,435. The number of holdings with either horses or tractors (or both) was 60,886, both tractors and horses being present in 8,704 cases. Land district figures are as follows:—

NUMBER OF HOLDINGS CONCERNED.

Land District.Tractors but no Horses.Tractors and Horses.Horses but no Tractors.
One Tractor.More than One Tractor.One Tractor.More than One Tractor.
North Auckland23610782228,861
Auckland171151,254549,763
Gisborne048041,918
Hawke's Bay18217520492,881
Taranaki27118054,252
Wellington201271,041526,989
Total, North Island823743,85718634,664
Marlborough30211551,034
Nelson106418161,520
Westland171788480
Canterbury385482,1872665,531
Otago937780414,078
Southland12714929653,144
Total, South Island758764,27039115,787
Grand total1,5811508,12757750,451

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.
19062,784,269281,99944,30077,1013,187,669
19113,215,031329,23045,38997,9333,687,583
19163,141,354220,80846,95556,5213,465,638
19213,491,567379,98846,23473,2203,991,009
19263,308,384352,03043,87976,8523,781,145
1936 (excluding Maori flocks)3,415,793351,60861,41882,8963,911,715
1936 (including Maori flocks)3,488,516377,79166,66786,1024,019,076

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 closer settlement 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 finance 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 whore 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.

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, 1940, 7,322 apiarists and 123,249 colonies were registered.

Exports of honey for the last five years were:—

Year.Quantity.Value.
 lb.£
19351,155,24733,788
1936739,95620,844
1937318,6219,099
19381,853,21250,330
1939441,27912,376

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 Board set up (after a poll of producers, who decided by a large majority in favour of the scheme) acts in conjunction with the Internal Marketing Division of the Marketing Department, which has set up a central receiving and packing depot to which beekeepers may send their honey for the local market and for the export trade.

Chapter 19. SECTION XIX.—FORESTRY.

ADMINISTRATION.

THE administration 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, and section 7 of the Land Laws 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 minor'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, whose 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.

The Timber Emergency Regulations 1939 came into force in September, 1939, after the outbreak of war, and provided for the appointment of a Timber Controller, authority for the control of forests (sale and purchase thereof), the regulation and control of timber-works, and the control of timber materials. The Director of Forestry was appointed Timber Controller.

STATE FORESTS.

At the 31st March, 1940, the area of permanent State forest was 5,038,162 acres, and of provisional State forest 3,412,384 acres, those totals including 817,794 acres and 1,107,612 acres respectively of national-endowment lands. The aggregate area (8,450,546 acres) represents 12.72 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, 1940, give the total area as 839,906 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 programme for the period 1941-46 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 huts in place of tent accommodation:

  6. The establishment of State-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.

SOIL EROSION.

As one of the chief features of the Dominion forest policy, prevention of avoidable denudation and soil erosion is an important function of the Forest Service. While nothing can be done about the geological erosion which is constantly going on above, and even to some extent below, the vegetation limit of the mountain-ranges, the staying of further avoidable erosion at lower levels is definitely possible. It is well known that erosion results from misuse of our land covering, and in New Zealand at least the fundamental causes have been fire and grazing. It follows that control of these two factors is fundamental to the solution of the erosion problem. Every possible attention to these two matters has been devoted in upland State forests, but the problem is far from being an easy one. This may be due to the misconstruing, common in forest history, of occasional privilege as an inalienable right. However that may be, it seems more necessary than ever that legislation for dealing with the problem of fire-prevention should be widened so far as State forests are concerned and extended to embrace other land tenures as well.

The question of combating erosion is being investigated with a view to establishing demonstration projects in order that the most practicable and economic methods of checking the destruction and restoring a protective vegetative cover on denuded areas may be ascertained.

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. 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. Provision has likewise been made for placing under management an extensive rimu-kahikatea-totara area in the To Whaiti district of the Rotorua forest-conservation region.

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.

At the close of the year 1939-40, preparations of six forest plans were in progress—one for kauri, and five for exotic forests. Of the latter, two were in the Rotorua conservancy, one in Canterbury, and two in Southland.

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, 1939, they ranked as second. During that period the annual cut of rough-sawn exotic-pine timber increased from 4,000,000 ft. b.m. in 1918-19 to 41,867,513 ft. b.m. in 1938-39. 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.

FOREST INDUSTRIES.

The installation of the most modern type of log-gang sawmill at Whakarewarewa, to operate in the extensive exotic forests in the locality, was completed early in 1940, and has already fully demonstrated the accuracy of sawing which is inherent in this type of equipment. Consumers have been high in their praise of the sawing, and also of the quality of this plantation-grown timber for boxmaking.

Associated with the mill are four dry kilns for the artificial seasoning of timber, and a boxmaking plant for the production of boxes, crates, and other wood products. The kilns are in full production, but some equipment is required to complete the boxmaking plant.

Research work affecting silviculture and technical investigations in wood-using are, of course, among the routine operations of the State Forest Service. Recent studies have been concentrated on decay-causing organisms and wood-destroying insects. Other investigational work has included the routine testing of different types of creosote and other wood-preservatives either in use in New Zealand, or which have promise of general commercial application.

The State Forest Service continues to emphasize that measures for the protection of building-timber against both decay and insect attack should be based primarily on good design and maintenance aimed to preclude conditions suitable for deterioration and to facilitate correction. In conjunction with these measures, the intelligent use of suitable preservatives such as pentachlorphenol in a light oil solvent is being encouraged, particularly for the protection of those timbers peculiarly subject to attack by virtue of their exposure conditions.

Particular attention has been directed to the use of anti-sapstain chemicals to ensure the production of bright clean stock from the exotic pines, and the excellent results obtained under even the worst conditions of block stacking indicate that the small expenditure involved will result sooner or later in the almost universal use of such treatments for all exotic pine timbers other than those which are to be kiln dried.

The experience of the Service in the use of exotic timbers in its house building and constructional programme has demonstrated forcibly the necessity for further investigating the painting of exotic timbers. The resinous and relatively knotty nature of much of the exotic timber necessitates the development of special paints and painting methods, and to solve these problems a special set of exposure panels has been established and is being kept under close observation.

The adaptation of creosoted timber to a wide range of structures has been investigated. Specimen culverts, bridges, and fire-towers are in course of fabrication and inquiries have been received for the supply of prefabricated timbers for both bridges and pontoons. Large quantities of fencing-posts and telegraph and power poles are being produced, whilst it is anticipated that during the forthcoming year a market will also develop for creosoted mining props where other than temporary timbers are required. The production of creosoted farm gates is also receiving attention.

The recent commencement in the southern States of the United States of America of the first newsprint-mill in the world to operate entirely on pine timbers as a substitute fur the spruce, fir, and hemlock hitherto universally employed, augurs well for the establishment of an industry in this Dominion which sooner or later will supply not only local, but also a portion of the Australian, newsprint requirements.

The necessity for conserving petrol supplies as a result of the war emergency has at last focused public attention upon the possibilities of wood charcoal as a substitute fuel, and as a result of its long-continued investigations into the use of charcoal-gas producers for both vehicular and stationary engines it has been possible for the State Forest Service to expedite the production of charcoal from a wide variety of indigenous and exotic timbers. Suitable types of beehive, portable, and makeshift kilns have been evolved and a number of officers trained for instructional purposes should any nation-wide programme of production prove necessary.

FOREST-FIRE PREVENTION.

One of the greatest problems of forest-conservation is that of fire-prevention. Fire-fighting methods have been improved by the establishment of fire 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 lire 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 after 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 For the 1939-40 fire season there were eighteen fire hazard recording stations operating in the larger indigenous and exotic forest areas. In addition to the immediate application of the readings of these stations to determine relative hazard in the individual forest areas, they have a wider usefulness; upon reaching a point, regarded arbitrarily as dangerous, the relevant readings are telegraphed to a central co-ordinating station in Wellington.

The fire district, with its season of controlled burning, has proved to be a valuable means of reducing the danger to forests from fire.

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 fifty-nine fire districts constituted to protect State indigenous and exotic forests. The total area covered by all fire districts is 3,336,199 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 the article in the 1940 and earlier editions of the Year-Book on “The Plants of New Zealand”). New Zealand rain-forest may be naturally divided into the two classes, subtropical rain-forest and subantarctic rainforest, 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 fonts. 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 are of little commercial importance.

In the 1940 and the two preceding editions of the Year-Book will be found a table showing the principal strength properties of New Zealand timbers.

CHIEF FOREST TREES.

There also appeared in the 1940 and earlier Year-Books a brief description of the principal indigenous forest trees, with their distribution, and the uses of their timbers. In editions prior to 1935 this description also mentions several of the less common varieties.

OUTPUT AND CONSUMPTION OF TIMBER.

The principal timbers milled in New Zealand at present are rimu and Pinus radiata. The subjoined table gives particulars regarding the output of timber by species for the last five years. Quantities in the table are quoted in board measure feet (superficial feet)—i.e., units of 12 in. × 12 in. × 1 in.

Species of Timber.1934-35.1935-36.1936-37.1937-38.1938-39.
 Ft. B. M.Ft. B. M.Ft. B. M.Ft. B. M.Ft. B. M.
Kauri5,552,5807,332,4577,791,1328,296,9986,203,329
Rimu125,488,187157,631,153174,778,566187,866,163188,536,482
Kahikatea, white pine52,294,06552,074,97346,958,81343,662,35233,432,487
Matai13,879,62919,068,78820,295,33021,254,99722,776,208
Totara8,867,38311,778,41111,443,74112,793,70211,237,379
Beech7,725,1988,854,6168,808,5208,824,7589,036,299
Pinus radiata (insignis)27,311,37334,104,44831,483,94736,359,18341,867,513
Other and unspecified2,663,2602,230,4674,329,3693,707,6333,626,185
Totals243,781,675293,075,313305,889,418;322,765,786316,715,882

It is interesting to observe that the output of pinus radiata has increased by 33 per cent. during the last two years and has now displaced kahikatea as the second most-used timber. As mentioned earlier, the exotic-pine timbers which are now coming to maturity are firmly established for boxing and crating purposes, and their utilization is constantly being extended. This increased use has permitted the conserving of kahikatea supplies, the quantity of this timber milled having declined by 29 per cent. in the last two years.

The total of 3,6215,185 board feet shown for “Other and unspecified ”species for 1938-39 is made up as follows:—

Species.Ft, B. M.
Miro2,473,464
Douglas fir213,740
Blue-gum148,895
Tanekaha125,730
Tawa116,534
Poplar105,877
Mangeao99,913
Taraire62,829
Puriri55,580
Rata47,088
Macrocarpa40,077
Rewarewa36,678
Pukatea16,906
Other and unspecified82,808
Total3,626,185

Exports of New Zealand timber during the calendar year 1939 amounted to 13,172,000 board feet, valued at £155,052, the principal species being rimu (6,073,000 board feet), white pine (3,137,000 board feet), beech (1,258,000 board feet), Pinus radiata (1,222,000 board feet), and kauri (303,000 board feet). Imports during the year comprised 27,002,024 board feet of sawn timber—including 14,945,229 board feet of Australian hardwoods 5,237,019 board feet of Oregon pine (Douglas fir), 3,788,458 board feet of redwood, and 2,511,819 board feet of oak—valued at £411,270; Australian hardwood sleepers, valued at £213,018; and laths, palings, shingles, and other items of a value of £2,752. The figures of exports and imports of timber during the last five years are:—

Year.Exports of New Zealand Timber.Imports of Timber.
Sawn Timber.Sleepers.Logs unworked.Total Value.*
Quantity.Value.Quantity.Value.
* Includes other items such as laths, palings, &c., amounting to: 1935, £4,113; 1936, £5,588; 1937, £2,909: 1938, £3,731; and 1939, £2,752.
 Ft. B. M.£(N.Z.)Ft. B. M.£(N.Z.)£(N.Z.)£(N.Z.)£(N.Z.)
193539,585,000304,36015,988,729206,162141,47646,759398,510
193620,993,000265,11020,063,294276,04380,01168,611430,253
193717,057,000200,85520,978,302380,36893,21483,665560,156
193814,534,000177,83129,837,908428,955153,16636,544622,396
193913,172,000155,65227,002,024411,276213,01812,563639,009

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 now in operation.

Year.Timber sold.Sale Price.
 Ft. B. M.£
1935-36102,219,800131,447
1936-37107,429,600124,522
1937-38103,341,450107,866
1938-3990,292,600104,821
1939-4077,372,70097,739

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.

1935-36.1936-37.1937-38.1938-39.1939-40.
Receipts.
 £££££
Timber-sales (native forest)74,82891,98096,74196,81083,440
Timber royalties and trespass5,0066,2578,1519,3007,000
National-endowment allocation15,71221,80724,75620,08522,114
Leases—Grazing1,7571,6921,4931,4451,551
Sawmill-sites, &c.9577056381,6168,215
Miscellaneous2,8444,2524,9346,0736,177
Nurseries and plantations5,8747,0978,55511,22410,468
Log sales from managed forests......6,58421,664
Totals106,978133,790145,268153,737160,038
Payments.
Interest and loan expenses525801263278..
National-endowment and local-authority allocations10,36027,67332,78731,26830,028
Staff salaries41,37451,61657,18563,42270,858
Management, &c., native forests.15,43818,47223,43349,25461,282
Nurseries and plantations60,642139,761177,141214,721287,572
Research, &c.8365079381,3181,716
Land-purchase70..1,1108,9011,884
Miscellaneous500847913460
Sawmill and creosote plant....4,87352,777120,344
Totals135,745238,974297,859422,073573,744

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 boon 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.
1930-3153,847
1931-3240,979
1932-3316,997
1933-3430,532
1934-3512,211
1935-3612,090
1936-376,701
1937-381,705
1938-392,711
1939-406,447

The gross area of State exotic forests at the 31st March, 1940, was 657,491 acres, of which the area actually established was 437,110 acres, exclusive of firebreaks, waste lands, reserves, &c. Of the area of 6,447 acres newly planted in 1939-40. 4,825 acres were open country and 1,622 acres cut-over indigenous forest. In both cases exotic trees were utilized. The inter-planting of cut-over indigenous forests with suitable exotics while the uncut forest is regenerating and coming to maturity is a practice that is being followed increasingly.

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.

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 Viscount 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 were 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 companies engaged in afforestation operations from which returns were received for' the year 1938-39, eight were organized on the bond-holding basis, the balance being limited-liability 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.

LIABILITIES AND ASSETS.

The statement which follows shows and classifies the liabilities and assets of all afforestation companies for the last five years.

1934-35.1935-36.1936-37.1937-38.1938-39.
Liabilities.
 £££££
Paid-up share capital2,555,37812,734,9092,896,2073,111,5037,248,911
Loan-money49,60786,55095,757107,19197,284
Forfeited Shares Account18,06019,99120,66221,25628,282
Mortgages131,280103,23283,844144,889207,752
Sundry creditors152,648191,012174,249163,034132,098
Bondholders1,606,9671,613,9391,672,2721,631,140765,570
Other108,857123,290132,224212,730627,355
Totals4,622,7974,872,9235,075,2155,391,7439,107,252
Assets.
Land for afforestation purposes1,073,3921,092,1571,100,4041,107,3815,218,890
Land for other purposes3,122..3,2703,45933,428
Development Account990,7381,014,3481,113,4151,247,8681,282,726
Investments1,847,1941,956,5832,036,5601,917,3611,524,157
Goodwill and preliminary expenses29,14822,51325,96127,35628,507
Other679,203787,322795,6051,088,3181,019,544
Totals4,622,7974,872,9235,075,2155,391,7439,107,252

It will be observed that total assets and liabilities recorded substantial rises between the years 1937-38 and 1938-39. 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 for receipts in the following table represent receipts from the cash point of view and should not be confused with revenue.

1934-35.1935-36.1936-37.1937-38.1938-39.
Receipts.
 £££££
Share capital23,764185,090165,949140,400152,040
Instalments on bonds288,549257,406274,746130,01327,653
Loan-money33,62711,3226,40723,942101,133
Investments realized.376,731444,001319,247535,910292,209
Other receipts101,70367,417129,482148,02370,598
Totals824,374965,236895,831978,288649,633
Payments.
Tree-raising5,6803,9583,6122,393978
Establishment charges22,90921,17520,17720,7624,559
Maintenance20,11522,65324,93723,79425,968
Management, &c.66,20984,68786,29974,27475,579
Commission, brokerage53,19256,84381,63260,6213,556
Land-purchase31,44213,88928,46017,7467,400
Investments467,286559,385560,997423,312302,320
Other87,796188,244252,690328,496215,456
Totals754,729950,8341,058,804951,398635,816

EMPLOYEES AND WAGES.

The average number of employees engaged during 1938-39 was 180, of whom 6 were engaged in tree-raising, 19 in planting, 55 in maintenance, 67 in fire-prevention, and 33 in management. This number represents a decline of 711 from the peak year (1930). Wages and salaries paid during 1938-39 totalled £43,670.

PLANTING OPERATIONS.

The following table shows particulars regarding the species and number of trees planted during the year 1938-39, together with particulars as to the areas planted:—

Species.Number of Trees.New Area planted during the Year.Total Area planted to 31st March 1939.
To replace Blanks.On New Areas.
   Acres.Acres.
Pinus radiata (insignis pine)640,731150,500186279,364
Pinus ponderosa 2,950....18,984
Pinus pinaster ......3,605
Pinus laricio ......2
Redwood......2,853
Douglas fir......945
Poplar......675
Cupressus macrocarpa ......97
Eucalypts..1,7012848
Unspecified4,9003,60042,622
Totals, 1938-39648,581155,861192309,995

LAND HELD FOR AFFORESTATION PURPOSES.

At 31st March, 1939, the total area of land held by companies for afforestation purposes was 370,899 acres, the book-value of which was £5,218,890 (see statement of assets), equal to £14 1s. 5d. 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 macropterus), 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 ozygeneios), 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 short 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-fining for blue cod; trawling and Danish reining, by which flounders, snapper, tarakihi, gurnard, john-dory, and a vanity 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.

Statistics are now collected on a system under which returns of the individual landings from each licensed fishing-boat are made. The most important fishing ports in the Dominion are Auckland, Wellington, Thames, Timaru, Napier, Port Chalmers, Lyttelton, and Bluff. In 1939-40 the total quantity of fish landed at Auckland was 138,249 cwt., of which 100,764 cwt. consisted of snapper, with tarakihi (20,981 cwt.) second in order of quantity. In Wellington tarakihi (18,593 cwt.) was the most abundant kind in the total quantity of 48,000 cwt. landed during the year. Of the total landings of sea fish in the Dominion for the year, snapper represented 39 per cent., tarakihi, 14.5 per cent., groper (hapuku) 9 per cent., blue cod 8 per cent., and flat fish, principally flounders, about 11 per cent.

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.1938-39.1939-40.1938-39.1939-40.
    ££
Wet fishCwt.350,114339,231424,643416,480
WhitebaitCwt.3,0531,83725,20417,145
Oysters (dredged)Sack67,24375,14548,75154,480
Oysters (rock)Sack4,8705,9306,6968,154
MusselsSack12,86916,6313,2455,751
CrayfishCwt.9,2558,07111,03111,320
Toheroa (canned products)Lb.69,56085,0003,6965,233
Whale oilTons4004508,0009,000
Quinnat salmonLb.10,7275,589536244
Total value......531,082527,807

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).

1935-36.1936-37.1937-38.1938-39.1939-40.
Fish (frozen)Cwt.54,26750,72745,03643,21335,552
£123,198132,401147,641139,743119,999
Fish (smoked, dried, pickled, or salted)Cwt.2,5193,7241,088467359
£6,81612,0692,8961,2311,249
Oysters (fresh)Doz.201,782135,53365,47033,46664,210
£2,1701,447951533996
Oysters (canned)Lb.172,855331,747208,460182,451291,760
£6,44412,97410,9349,35615,750
Toheroa (canned)Lb.24,83632,97947,19842,30263,202
£1,6832,4253,0733,1123,887
Whitebait (canned)Lb.85,701104,23294,697111,49349,983
£8,66212,1099,75814,9177,593
Other kinds (canned)Lb.63,90123,78331,09830,6004,599
£4,3491,6972,4802,678408
Value of total exports of New Zealand fish and shell-fish£153,322£175,122£177,733£171,570£149,882

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, 1940:—

Whole Time.Part Time.Total.
Vessels engaged in fishing for wet fish—   
  Steam trawlers9817
  Motor trawlers375188
  Motor-vessels—Danish seining531063
  Motor-vessels—Set-net and line fishing170550720
  Row-boats12218230
Vessels engaged in shell-fishing—   
  Oyster-dredging vessels11..11
  Mussel-dredging vessels314
  Crayfishing-vessels8153161
Number of persons employed—   
  Fishermen8621,3412,203
  Others (excluding retailers)319119438

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 1939 season 75,145 sacks of oysters, valued at £54,480, were dredged from the Foveaux Strait beds, as compared with 67,243 sacks, valued at £48,751, in 1938.

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 1939 realized £8,154 (1938, £6,774); the cost of cultivating, picking, and selling, including interest and depreciation on the cost of the oil-launches used by the Inspectors and all overhead expenses, was £10,304 in 1939 (1938, £7,889). The total expenditure in 1939 included £5,285 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.

Marino 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 1939-40 the total exports of frozen crayfish amounted to 293 cwt, valued at £968.

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. Only one shore station was in commercial operation during the 1939 whaling season, this station is situated in Tory Channel, Marlborough Sounds, and the season's catch of whales in that area was 80 hump-back and 1 blue, the total oil-production being 460 tons.

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 31st March, 1942.

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 1939 season the whitebait fishery gave employment to over three hundred regular fishermen, mostly Maoris, and a greater number of part-time fishers, and produced 1,837 cwt. of whitebait. The canned whitebait packed in the West Coast and Waikato factories is a much-esteemed delicacy.

BIG-GAME FISHING.

Swordfish (striped and black marlin, and occasionally broadbill), make 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. 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 sonic 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 fasciatus Native trout or mountain troutKokopu10
Galaxias brevipinnis “Gudgeon”Taiwharu or kokopu6
Galaxias huttoni ..Koaro6
Galaxias burrowsii Canterbury mudfish..5 to 6
Neochanna apoda MudfishHauhau or waikaka8
Retropinna retropinna SmeltParaki6
Prototroctes oxyrhynchus GraylingUpokororo12
Cheimarrichthys fosteri Torrent-fish or shark-bullyPapanoko7
Gobiomorphus gobioides BullyToitoi6 Feet.
Anguilla australis Short-finned eelTuna3 to 4
Anguilla aucklandi Long-finned eelTuna4 to 5
Geotria australis LampreyKoro-koro or kuna-kuna2

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 brown trout was first established in 1867 by means of ova imported from Tasmania, where the species had been acclimatized a few years earlier from English stock. Importations of brown trout besides the Loch Leven and sea-trout varieties have been subsequently made, so that the species is now found in most of the fresh and tidal waters of New Zealand. Rainbow or steelhead trout, first introduced in 1883 from California, are also now widely distributed. In some lakes, notably Taupo and others in the Thermal Region, they have largely displaced the earlier brown-trout population. The American brook trout (Salvelinus fontinalis) was widely planted in the “seventies” and “eighties,” but is now found only in a few back-country streams in the South. The Mackinaw trout, or Great American Lake trout has been naturalized in Lake Pearson, Canterbury, since 1906. Quinnat salmon, introduced from California in the first five years of the present century, after earlier attempts had failed, are now firmly established, and “runs” of these salmon take place annually between January and June in the larger East Coast rivers of the South Island. They have been taken in smaller and more variable numbers in a few rivers on the West Coast and in the Wellington Province. Sockeye salmon, imported at the same time have given rise to a “land-locked” stock in Lake Ohau no sea-run examples of this species having yet been identified. The introduction of European Atlantic salmon was attempted at various times in the earlier years, and was finally achieved after 2,000,000 ova had been imported in 1910-12 from British and Continental rivers. The species is now established in the Waiau river system and associated lakes (especially Lake Te Anau) in Southland. It is remarkable that, although there is unimpeded access to the sea, the species has largely adopted “land-locked” habits, most of the fish remaining to feed in fresh water until and after they have reached maturity. Relatively small numbers, however, enter the Waiau from the sea.

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 1936 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.

Chapter 21. SECTION XXI.—MINING.

INTRODUCTORY.

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, and 1937; the Coal-mines Act, 1925, as amended in 1927, 1933, 1935, 1936, 1937, 1939 (section 8 of the Statutes Amendment Act), and 1940 (section 6 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, in sections 44-48 of the Statutes Amendment Act, 1939, and in sections 32-38 of the Statutes Amendment Act, 1940.

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 the end of 1929 has been at varying levels below gold-standard and sterling parities.

The following statement shows the production of metalliferous mines, of stone-quarries under the Stone-quarries Act, and of coal-mines:—

Mineral.1938.1939
Quantity.Value.Quantity.Value.
   £  £
Gold and silver509,759oz.1,214,054569,297oz.1,506,977
Platinum1 6/20oz.713 6/20oz.104
Iron-ore1,218tons3,6661,586tons3,018
Stone....555,295....545,533
Pumice3,046tons8,8113,680 2/20tons11,172
Coal2,222,088tons2,222,0882,34 2,639tons2,342,039
Tungsten-ore45 13/20tons8,60441tons8,240
Manganese-ore90tons450486tons1,944
Silica sand1,459tons1,1262,335tons2,227
Mercury760lb.190......
Fuller’s earth50tons15473 18/20tons233
Diatomaceous earth....70....332
Mica......18/20tons12
Totals....4,014,515....4,482,431

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.1937.1938.1939.Total from 1st January, 1853, to 31st December, 1939.
 ££££
Gold1,435,2161,296,8391,628,408105,667,849
Silver48,18438,87335,1593,580,158
Tungsten-ore7,24810,8047,728355,893
Antimony-ore..20..55,101
Mercury......19,024
Other minerals8,0789,10811,672587,333
Kauri-gum151,589103,777112,65023,730,163
Coal (including bunker)73,48673,47759,9717,629,290
Totals1,723,8011,532,8981,855,588141,624,811

GOLD-MINING.

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 production for 1939 is the largest recorded over a period of nineteen years. 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 1939:—

Production of Bullion.*Number of Persons ordinarily employed at Productive and Unproductive Mines, Claims, and Dredges.Number of Productive Mines, Claims, and Dredges.
Quantity.Value.
* Including a proportion of silver.
 Oz.£  
Quartz-mining472,309717,2191,12662
Alluvial mining18,512150,1691,190774
Dredging78,476699,58943823
Totals, 1939569,2971,566,9772,754859

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.
1935603,2441,300,046165,2771,243,552817
1936597,5481,272,587164,5751,233,178815
1937612,4681,319,743168,4871,279,893815
1938509,7591,214,054152,0501,182,719817
1939569,2971,566,977178,9551,530,857914

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 1939, 472,309 oz. of bullion, valued at £717,219 were produced from quartz-mines, as compared with 435,706 oz., valued at £622,336, in 1938. The quantity of ore treated in 1939 was 236,940 tons, as against 240,143 tons in 1938, while the number of persons ordinarily employed decreased from 1,189 to 1,126. The average value per ton of ore treated in 1939 was £3 0s. 6d., as compared with £2 11s. 9d. in 1938. The value of bullion production in the Northern District (Waihi, &c.) increased from £426,580 in 1938 to £444,897 in 1939, in the West Coast District from £188,941 to £265,351, and in the Otago District from £6,815 to £6,971.

Alluvial gold is found chiefly on the west coast of the South Island and in Otago. Production fell from 19,929 oz., valued at £149,586, in 1938, to 18,512 oz., valued at £150,169, in 1939 while the number of men engaged dropped from 1,374 to 1,190. The decrease in production over the last few years has been due to the diversion of subsidized prospectors to other occupations, and also, as claims have become more remote, to the growing difficulty in maintaining adequate water-supplies.

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-three at the end of 1939. Production in 1939 amounted to 78,476 oz., valued at £699,589, as compared with 54,124 oz., valued at £442,132 in 1938. Of the total production in, 1939, £628,841 was won by seventeen dredges on the West Coast and £70,748 by six dredges in Otago and Southland.

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” (parliamentary paper, C.-2).

In 1939, of a total export of 175,667 oz., valued at £1,623,072, the West Coast District in the South Island produced 100,724 oz., valued at £925,825, and the Auckland District, 51,114 oz., of £485,032 value. The principal districts from which gold has been produced and exported during the period 1857-1939 are as follows, the quantity and value of the gold exported also being given: Auckland District, 8,267,551 oz., £34,519,637; Otago District, 7,990,260 oz., £32,519,188; West Coast District (South Island), 7,199,215 oz., £30,733,807; and Nelson District, 1,789,377 oz., £7,275,600.

SILVER.

Nearly the whole of the locally produced silver exported from New Zealand, amounting in value up to the end of 1939 to £3,579,547, 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): 1935, 437,967; 1936, 432,973; 1937, 443,981; 1938, 357,709; and 1939, 390,342.

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. Since that time underground investigation by tunnelling and boring has been conducted, and, although this survey is not complete, it has established that, while the ore body is not nearly so extensive as the surface deposits indicated, there is a useful tonnage for exploitation.

Plans were completed by the middle of 1940 for the establishment of a steel-works using local ores, but owing to war conditions the work has had to be deferred.

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, and it is anticipated that production will be resumed at Wakamarina Valley. Since the outbreak of war the demand for scheelite has become urgent, and all assistance possible is being given to increase production. The Imperial Government has arranged to purchase the Dominion’s output at a price which is satisfactory to the producers. In 1938, forty-five tons of concentrates, valued at £8,604, were recovered, while in 1939 the yield was forty-one tons, valued at £8,240.

The total quantity of locally produced ore exported to 31st December, 1939, was 2,724 tout:, valued at £355,893.

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 1939 amounted in value to only £19,397. There has been no production for a considerable number of years, but copper deposits on Great Border and Kawau Islands, which yielded considerable, but unrecorded amounts early in the country’s history, are to be again investigated. 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 Bombay, Moumoukai (near Hunua), 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. Some 486 tons were produced from the Bombay deposit during 1939, and the deposit near Hunua is now being developed. The total quantity of locally produced manganese-ore exported to the end of 1939 amounted to 19,468 tons, of a value of £62,196,

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.

No cinnabar-ore was produced in 1939, but developmental work is now being carried on at Puhipuhi, and there is every possibility of production commencing in the near future.

The total quantity of mercury of New Zealand origin exported up to the 31st December, 1939, 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 occurs in the thermal districts of the North Island, near Rotorua and Lake Taupo, and at White Island, but it is doubtful if there is sufficient quantity to enable the deposits to be economically exploited.

Sulphur is mostly disposed of locally as fertilizer, but exports of New Zealand origin to the end of 1939 have aggregated £13,241 No work of any importance has been done at any of the sulphur deposits during recent years.

ASBESTOS.

No asbestos was produced from the Upper Takaka field during 1939, 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.

The following is an estimate of the coal resources of New Zealand:—

Class of Coal.Proved Coal.Probable Coal.Possible Coal.Mineable under Present Conditions.
 Tons.Tons.Tons.Tons.
AnthraciteVery littleVery littleVery little..
Bituminous254,000,000490,000,000Small84,500,000
Brown247,000,000738,000,000Large..
Lignite150,000,000377,000,000Large..
Totals051,000,0001,605,000,000....

In the above table the figures for brown coal and lignite are estimates prepared in 1927 by P. G. Morgan, late Director of the Geological Survey. The figures for bituminous coal are from a paper on “Bituminous Coal of New Zealand” by the same authority, published in the New Zealand. Journal of Science and Technology, Vol. IX, No. 5, pp. 257-260. 1928. For the Grey coalfield the figures for “Proved” and “Probable” bituminous coal include all seams over 1 ft. thick down to a depth of 4,000 ft., and for the Buller coalfield the coal of the estimate is all above sea-level and nearly all is in seams over 4 ft. thick. In arriving at the comparatively small figure for bituminous coal “Mineable under Present Conditions,” Morgan (1928) apparently had regard to several adverse factors concerning coal-mining in New Zealand, chief of which are (1) that structural conditions, such as faulting and folding, seriously handicap the economic winning of coal, especially in the Greymouth coalfield; (2) that coal has not yet been mined to a depth of 2,500 ft. below sea-level, and the possibility of economically working coal below that depth in New Zealand has not been proven; (3) that a considerable amount of coal has been lost through fires, and (4) that thin seams much under 4ft. in thickness have not, so far, been economically mined.

Additional information accruing from the survey now in progress in the Greymouth field shows that the above figures for “Probable “bituminous coal will be subject to considerable reduction, but until the field-work is complete no definite statement can be made.

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 to192971,298,699....4336.07
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
19352,115,1844,23168120.840.47
19362,140,2174,25767841.870.94
19372,277,7994,41769362.641.36
19382,222,6884,563659114.862.41
19392,342,6394,762661177.263.57
Totals to date92,820,069....5185.58..

The output of the several classes of coal mined in each inspection district during 1939 is summarized as follows:—

Class of Coal.Northern (North Island).West Coast (South Island).Southern (South Island).Totals.Total Output to the End of 1939.
 Tons.Tons.Tons.Tons.Tons.
Bituminous and sub-bituminous71,029973,580..1,044,60952,829,029
Brown731,67658,411369,8761,159,96334,451,156
Lignite..1,351136,716138,0675,539,884
Totals, 1939802,7051,033,342506,5922,342,63992,820,069
Totals, 1938762,717984,389474,9822,222,08890,477,430

An increase in output of 5.2 per cent. is recorded as compared with the 1938 figure. The 1939 output was produced from 152 mines, 69 of which were working on freehold lands and produced 1,026,095 tons, or 44 per cent., the remaining 83 mines producing 1,316,544 tons, or 56 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.

Co-operative mining continues to be successfully carried out in the Northern and West Coast districts.

The Government is keeping abreast of all the latest developments in regard to the production of oil from coal by the hydrogenation process, or by a synthetic process. The physical and chemical survey of the coal resources of the Dominion is being continued in the Grey and Buller districts. A start has been made with the sampling of Waikato and Southland coals, and some preliminary work carried out to determine suitable fuels for producer gas. The question of producing increased quantities of benzol at the main gasworks is also tinder consideration.

Carbonization works have been established at Rotowaro, and briquetting plants at Sockburn and Onehunga. At Rotowaro 39,573 tons were carbonized in 1939, or 161 tons more than in 1938. From the raw coal, 22,089 tons of carbonettes, 163,922 gallons of light and heavy oils, 47,766 gallons of creosote, and 638 tons of pitch were produced. At Sockburn, 6,312 tons of briquettes were produced during 1939, as compared with 5,889 in 1938; while at Onehunga, production amounted to 1,016 tons, a decrease of 69 tons below the previous year’s output. 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.

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 flatter having commenced production on 31st January, 1939. Two collieries have also been acquired in the North Island, one at Tatu, and the other at Mangapehi. Both collieries are still in course of development, although that at Mangapehi commenced production in May, 1940.

During 1939-40 the Liverpool Colliery’ produced 140,074 tons of marketable coal, an increase of 14,267 tons on the previous year’s production. The James Colliery produced 23,709 tons of marketable coal during the year, a decrease of 17,725 tons on the production for 1938-39. The Strongman Colliery produced 42,247 tons of marketable coal during the year.

The disposal, inclusive of stocks on hand at the beginning of the year, was as follows:—

Supplied toTons.
Depots55,695
Railways45,055
Other Government Departments9,466
Shipping companies5,822
Gas companies84,595
Other consumers9,724
Total210,357

The sales of coal, &c., through the medium of the depots totalled 150,057 tons (value, £253,913), as against 122,335 tons (value, £209,207) for 1938-39. A net profit of £3,301 at the mines and a net profit at the depots, and royalties, &c., of £11,479 made a total net profit of £14,840. The sum of £5,502 was transferred to Sinking Fund Account, leaving a balance of £9,340 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, 1940, was 533.

PETROLEUM.

Drilling for petroleum in past years had been carried out in Taranaki, Hawke’s Bay, Canterbury, Southland, and Westland. Several bore-holes in search of petroleum were drilled, the deepest being at Moturoa, near New Plymouth, which attained a depth of approximately 0,000 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 103,631 gallons of oil was obtained from Moturoa Nos. 1, 2, and 4 wells at New Plymouth; while at Kotuku a total of 800 gallons was collected. The total production of crude petroleum to the 31st December, 1939, is estimated at 2,988,000 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 have been applied for. In all, sixty-five prospecting licenses have been granted covering 11,500 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 drilled, at Totangi, near Gisborne, reached a depth of 5,700 ft., but owing to unfavourable conditions had to be abandoned. The drill was transported to Morere, and at the end of July, 1940, the second well had reached a depth of 4,105 ft. Another heavy drilling plant is operating at Midhirst, in the Taranaki District.

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 comparatively low 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 1939, 2,310 tons of kauri-gum, valued at £112,650, were exported, the total quantity of gum exported to the end of 1939 being 442,501 tons, valued at £23,730,163.

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 (Mangaharuru 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 1939:—

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.£
Auckland2621,2941,110,7681,4002,218122,014269,72450,063337,212
Hawke’s Bay255126,405....32,148....8,945
Taranaki287235,976..........9,573
Wellington31166118,2166,573..18,156..25,00039,643
Nelson, West-land, and Marlborough2410244,40720,765..14,69499,91176528,234
Canterbury and Otago50398155,63929,01110,875204,02728,924..121,926
    Totals, 19394202,0831,491,41157,74913,093391,009398,55975,828545,533
    Totals, 19384292,6671,443,52555,17325,339481,712332,455180,263555,295

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 persona employed in or about mines and stone-quarries during each of the last five years:—

1935.1936.1937.1938.1939.
Metalliferous mines6,7505,1893,9173,0462,824
Coal-mines4,2314,2574,4174,5634,762
Stone-quarries2,0021,9312,1172,6672,083
Totals12,98311,42710,45110,2769,669

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.

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 1939-40 field season the Geological Survey carried out systematic mapping in three districts, the sampling and estimation of resources of mineral substances in three other districts, and geophysical work in four areas. Officers also examined deposits of possible economic value in several parts of New Zealand.

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. During 1939-40 the most outstanding work on the mineral side was the regular analyses for the Iron and Steel Department of iron-ore, following the systematic exploration of the Onekaka deposit, and of ironsands from the Patea deposits, which it is proposed to use in conjunction with the Onekaka ore. Iron was determined in 1,142 samples and fuller analyses made when required. Twenty-six samples of limestone adjacent to Onekaka were also analysed, and one sample of dolomite from Mount Burnett. Work was also carried out relating to the commercial development of such non-metallic minerals as clay, diatomaceous earth, and bentonite, while work was also carried out on samples of scheelite, antimony-ore, and manganese. The possible use of serpentine as a desirable addition to superphosphate has been investigated.

As an aid towards the development of the mining industry the Government offers varied and liberal assistance to prospectors in the form subsidies, expert and technical advice, use of plant, &c. Subject to the provisions of the Mining Act, the holder of a valid miner’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.

From the 1st April, 1939, with the abolition of the Employment Promotion Fund, assistance to mining from that source ceased, and as from that date all assistance has been granted out of funds provided by Parliament in the Mines Department vote.

For the financial year ended 31st March, 1940, the total expenditure by way of direct financial assistance amounted to £43,848, of which £19,229 was advanced by way of subsidies and loans to companies and individuals engaged in major mining or prospecting work. A sum of £15,596 was expended on subsidies to individual prospectors working small areas. The average number of men engaged on this work during the year was 290. During the year the number of men engaged on the subsidized gold-mining scheme, previously administered by the Department of Labour, decreased from 350 to 230, but the individual gold winnings showed a distinct improvement. The total gold winnings by subsidized miners during the year amounted to 2,266 oz., valued at approximately £20,400. A few men were engaged on the production of scheelite, the output of this ore being 5 tons, valued at £2,075.

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 copies of the borelogs and a plan showing the location of the boreholes. These drills were hired by eight parties during 1939, and a total of 5,080 ft. was drilled.

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 at the University of Otago, are offered annually by the Mines Department. The expenditure on these schools by the Government during the year ended the 31st March, 1940, was £3,631, as against £3,400 during the previous year.

The expenditure in the form of subsidies and direct grants upon roads on gold-fields during the year ended 31st March, 1940, amounted to £598, as compared with £5,221 during the previous year.

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.

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, sixty-four certificates were issued in 1939.

SICK AND ACCIDENT AND COAL-MINERS’ RELIEF FUNDS.

As required by the Coal-mines Act, 1925, the owner of every coal-mine contributes ½d. 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 ½d. per ton contribution was £4,644 during the twelve months ended 31st March, 1940, as compared with £4,636 during 1938-39, and interest earnings brought the total receipts to £5,458 and £5,530 for the respective years. The total expenditure for the year ended 31st March, 1940, amounted to £8,125 as against £7,425 for the previous year. The amount standing to the credit of the fund as at the 31st March, 1940, was £22,167, as against £24,934 twelve months earlier.

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 (Social Security, Pensions, Superannuation, &c.).

Chapter 22. SECTION XXII.—FACTORY PRODUCTION.

HISTORICAL.

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. 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.”

Further steps towards this objective were taken at the close of 1938 by the adoption of a policy of import selection and control, reference to which is made in Subsection C of Section X.

STATISTICS OF FACTORY PRODUCTION

Statistics of factory production were collected in New Zealand from 1867 to 1916 in conjunction with the population census; but, 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 1938-39, 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. 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, and 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, local manufactures now catering for the Dominion's needs in many products which were formerly almost exclusively imported. This trend has been accelerated by the closing of certain sources of supply consequent upon the outbreak of war.

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 loss than two hands and not using motive power: Tanneries; bacon, butter, cheese, soap, or candle factories; brickyards; and lime-works.

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 1938-39 17,842 factories, employing 123,723 hands, were registered under the Factories Act, only 6,146 factories (with, however, 102,535 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
1925-264,79478,70816,153,82251,668,1008,395,92182,358,85130,690,751
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
1938-396,146102,53522,270,01075,344,18110,292,526114,447,42639,103,245

In the calculation of value of products, values at the factory are taken. Despite instructions to the contrary, however, it has been found that some of the returns for 1937-38 and previous years contained an unknown amount of selling and distributing charges. As these charges have been definitely excluded from the 1938-39 figures, the value of output, added value, and other expenses of manufacture for that year are not strictly comparable with previous years.

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 period 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, while further gains were recorded for the year 1938-39.

Establishments reporting operations in 1938-39 numbered 6,146, or 222 more than in 1937-38 (5,924). The number of persons engaged increased by 191 or 0.2 per cent., while the salaries and wages paid increased by £1,288,423, or by 6.1 per cent. Materials used cost £75,344,181, an increase of £260,008, or 0.3 per cent. above the 1937-38 total. The value of output rose by £755,870 (a 0.7-per-cent. increase on the 1937-38 figure) to a record total of £114,417,426.

In making use of the following summary by provincial districts for the year 1938-39 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.
   £££££
Auckland23,80523,8917,722,67730,390,6643,833,14544,306,74213,976,078
Hawke's Bay3023,495817,3623,442,332421,5904,843,1961,400,864
Taranaki3293,573927,8526,300,653481,3907,838,9311,538,278
Wellington1,33824,3925,359,05815,092,2802,161,94524,405,2519,312,971
Marlborough71462112,115406,47855,409587,620181,142
Nelson1811,768395,288952,120243,5311,706,993754,873
Westland1131,641419,706319,486206,8831,040,295720,809
Canterbury89316,4383,349,7449,960,3301,368,42715,597,4165,637,086
Otago—       
  Otago53711,1872,246,1294,961,0441,062,2428,950,4003,989,350
  Southland3173,778920,0793,518,794457,9645,110,5821,591,788
Totals6,146102,53522,270,01075,344,18110,292,526114,447,42639,103,245

ESTABLISHMENTS AND EMPLOYEES.

The industries contributing chiefly to the increase of 222 in the number of establishments reporting operations in 1938-39 were—Coachbuilding and motor engineering, 83; furniture, 33; clothing, 23; electrical engineering, 13; concrete block and fibrous plaster, 9. The principal decreases were—Sawmilling, 30; flaxmilling, 13; butter and cheese, 9; joinery. 4.

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 1938-39:—

Class of Industry.Number of Establishments.Wage-earning Employees.Total Persons engaged.
M.F.M.F.
Animal food5359,79029611,725707
Vegetable food1452,1812,1852,6762,391
Drinks, narcotics, and stimulants2741,8427582,367928
Animal matters (not otherwise classed)82789144987187
Working in wood6328,485259,577149
Vegetable produce for fodder2442..757
Paper manufactures23313372366406
Heat, light, and power1443,941195,232449
Processes relating to stone, clay, glass, &c.3183,306183,811107
Metals other than gold or silver5367,1013788,243703
Precious metals461791622927
Books and publications3734,9931,5496,3092,028
Ornaments and minor art products461614320150
Designs, medals, type, and dies19149218410
Machines, tools, and implements1411,5541841,867273
Carriages and vehicles1,3908,013349,783506
Harness, saddlery, and leather-ware1399662231,200273
Ships, boats, and their equipment70811374956415
House-furnishings4412,5723653,086459
Chemicals and by-products1171,3673801,746507
Textile fabrics209601,4981,0611,541
Apparel5383,25212,4914,18313,083
Fibrous materials33492175561190
Miscellaneous60358227443271
Totals6,14663,61721,75676,80825,667

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 1938-39 has been: 33, 33, 34, 34, and 33.

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, 10,387; printing and publishing, 2,028; biscuit and confectionery making, 1,920; boot and shoe manufacturing, 1,441; woollen-milling, 1,436; hosiery-making, 877; tobacco-preparing and cigarette-making, 624.

The following figures show that in 1938-39 for every ten wage-earners there was one proprietor (actively engaged), manager, or overseer.

Group.1937-38.1938-39.
Number of Persons.Per Cent. of Total.Number of Persons.Per Cent. of Total.
Proprietors actively engaged2,6862.62,6682.6
Managers, overseers, &c.5,4525.35,6415.5
Accountants, clerks, &c.8,6368.58,8538.6
Wage-earning employees85,57083.685,37383.3
Totals102,344100.0102,535100.0

An interesting classification of the establishments, according to the number of persons engaged, for the years 1924-25, 1929-30, and 1935-36 to 1938-39, is—

Year.10 or under.11-20.21-50.51-100.Over 100.Totals.
Number of Factories.
1924-252,9727205701551214,538
1929-303,4708005911641375,168
1935-363,8307905831691585,530
1936-373,8588426671981635,728
1937-383,9568047371921755,924
1938-394,1298857562031736,146
Number of Employees.
1924-2512,65810,69018,06711,09424,67477,183
1929-3015,47411,78517,97711,65825,96782,861
1935-3615,55411,60017,62411,42830,38286,588
1936-3715,95312,44420,28113,53134,19296,401
1937-3816,51812,73122,72712,97137,397102,344
1938-3910,87112,93123,02013,60836,105102,535

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.
 ££££££
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
1938-3919,486,3352542,783,67510822,270,010217

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 1938-39.

Class of Industry.Males.Females.
 ££
Animal food3,518,03779,368
Vegetable food636,699242,932
Drinks, narcotics, and stimulants624,307114,053
Animal matters (not otherwise classed)259,10723,156
Working in wood2,344,52417,369
Vegetable produce for fodder15,815934
Paper manufactures95,61041,800
Heat, light, and power1,498,56859,704
Processes relating to stone, clay, glass. &c.917,78811,509
Metals other than gold or silver1,898,15877,105
Precious metals54,9892,805
Books and publications1,752,500251,430
Ornaments and minor art products37,1734,133
Designs, medals, type, and dies51,2941,246
Machines, tools, and implements421,39030,389
Carriages and vehicles2,225,03153,820
Harness, saddlery, and leatherware275,45825,298
Ships, boats, and their equipment257,30743,669
House-furnishings687,04853,066
Chemicals and by-products470,92257,161
Textile fabrics250,915170,864
Apparel966,9481,379,652
Fibrous materials117,18718,190
Miscellaneous109,56023,962
Totals19,486,3352,783,675

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 five years.

Year.Total Wage-earning Employees.Earnings during Specified Week.
Total.Average.
Males.Females.Males.Females.Males.Females.
   £££s.d.£s.d.
193551,80417,204183,77026,958310111114
193657,63719,070217,40330,60531551121
193764,88322,452287,85142,1294891176
193867,08322,059317,10342,28641461184
193968,86822,640338,89947,0524185217

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 1934-35, 2,121,279 hours of overtime were worked and 2,111,650 hours of short time. In 1938-39 overtime had increased to 3,608,514 hours and short time had fallen to 920,101 hours, while, in addition, statutory amendments made to the Factories Act (see Section XXXVII) 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, 1938, and 1939 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 1929 and 1939:—

Weekly Rate of Wages.Males.Females.
1929.1939.1929.1939.
Under 20s.1,2801,4551,4441,821
20s. and under 25s.1,5051,7221,4761,361
25s. and under 30s.1,0251,4931,3071,718
30s. and under 35s.1,7151,9511,1911,755
35s. and under 40s.1,4381,7261,0212,028
40s. and under 45s.1,0841,8751,1792,669
45s. and under 50s.1,2001,4253,1302,147
50s. and under 55s.8781,1511,1765,734
55s. and under 60s.5137007561,724
60s. and under 65s.8751,009475821
65s. and under 70s.540395176359
70s. and under 75s.874492115224
75s. and under 80s.6124743775
80s. and under 85s.4,2626644967
85s. and under 90s.4,2281,3493028
90s. and under 95s.6,6564,9433331
95s. and under 100s.6,2456,7051210
100s. and under 105s.5,7307,2302730
105s. and under 110s.3,4585,38074
110s. and under 115s.3,14610,82898
115s. and under 120s.1,2274,027..2
120s. and under 130s.2,8235,67569
130s. and under 140s.1,2891,889172
140s. and under 100s.1,2382,30539
160s. and over8102,005204
Totals54,65168,86813,69622,640

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 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 please 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, 1928-29, and the last three years:—

Class of Engine.1921-22.1928-29.1936-37.1937-38.1938-39.
SteamNo.2,2661,8471,5611,5011,434
 H.P.101,083130,686141,001153,988148,781
GasNo.750321145121115
 H.P.24,47014,3597,5626,8586,260
OilNo.389335550564781
 H.P.5,40016,07038,33639,51443,585
ElectricNo.5,23513,73823,15125,62628,456
 H.P.49,571119,637170,263181,757197,195
WaterNo.222252218262206
 H.P.39,104182,914387,387450,033451,965
TotalsNo.8,86816,49325,62528,07430,992
 H.P.219,700463,666744,549832,750847,786

It should be borne in mind that the figures relating to the horse-power represent the indicated horse-power of the engines installed and not the horse-power actually used. Attention is also directed to the fact that the statistics include the horse-power of turbines, pelton wheels, and other engines used in the generation of electric current.

The following table shows the total number of engines and horse-power by classes of industries for the years 1933-34 and 1938-39:—

Class of Industry.1933-34.1938-39.
Number of Engines.Horsepower.Number of Engines.Horsepower.
Animal food4,33867,3305,45675,670
Vegetable food97713,1241,40414,016
Drinks, narcotics, and stimulants1,0566,5631,5378,351
Animal matters (not otherwise classed)2472,6013753,214
Working in wood2,22835,6463,32548,414
Vegetable produce for fodder2748848592
Paper manufactures1354,0282413,236
Heat, light, and power202429,020212584,410
Processes relating to stone, clay, glass, &c.95028,1031,38332,435
Metals other than gold or silver1,54912,6133,05116,527
Precious metals48698996
Books and publications2,2909,9212,98711,144
Ornaments and minor art products27555469
Designs, medals, type, and dyes7114099170
Machines, tools, and implements3921,8017362,560
Carriages and vehicles1,7854,5983,3067,512
Harness, saddlery, and leatherware3943,2275784,240
Ships, boats, and their equipment1488761971,071
House-furnishings9594,5811,7096,155
Chemicals and by-products7847,8251,0619,545
Textile fabrics3026,0634046,777
Apparel1,1353,0212,1694,424
Fibrous materials1222,8461723,465
Miscellaneous1111,0083393,693
Totals20,277645,54789,992847,786

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 1938-39 as compared with 1933-34, record the substantial advances of 53 per cent. and 31 per cent. respectively.

A drawback to the statistics arises through the lack of information relating to the actual or estimated period during which the engines or motors wore in use. This is an important aspect of considerations affecting the quantitative measurement of the motive power employed.

CONSUMPTION OF COAL.

During the year 1938-39 782,316 tons of coal were used in industries covered by the statistics of factory production, an increase of 36,377 tons, or 5 per cent., as compared with the previous year. Of this amount, 700,738 tons represented New Zealand coal, and the remainder (81,578 tons) imported coal.

Some 78,173 tons (96 per cent.) of the imported coal, and 148,092 tons (21 per cent.) of the New Zealand coal was utilized in gas-making, this industry accounting for 29 per cent. of the total amount of coal used in industries covered by the factory production statistics. A further 44 per cent. was used by three industries—namely, butter, cheese, and condensed-milk making, 133,321 tons; lime-crushing and cement-making, 108,664 tons; meat freezing and preserving, 105,028 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 1938-35 valued at £1,114,498, while those used in printing, publishing, and bookbinding were valued at £1,466,727. If, however, value of output is considered, it is found that the figure for printing and publishing (£4,873,530) is over £3,400,000 greater than that for tanning, &c. (£1,463,513).

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.1934-35.1935-36.1936-37.1937-38.1938-39.
 £££££
Animal food30,516,77736,349,44242,593,55044,139,55242,870,164
Vegetable food3,562,5703,625,0743,842,0194,371,2204,296,550
Drinks, narcotics, and stimulants1,372,7821,344,0441,655,4181,954,2582,297,742
Animal matters (not otherwise classed)509,334705,083697,025776,837705,938
Working in wood1,247,7011,708,9802,019,3342,252,9422,489,059
Vegetable produce for fodder49,62054,47358,89983,81591,547
Paper manufactures187,800214,224263,303320,866337,251
Heat, light, and power4,170,3494,248,8154,554,2574,857,1825,582,324
Processes relating to stone, clay, glass, &c.313,641407,094504,853635,120721,857
Metals other than gold or silver1,247,3971,504,7951,950,8602,382,8322,508,971
Precious metals41,48247,92464,19773,62175,961
Books and publications963,6281,076,9421,179,7941,354,0341,466,727
Ornaments and minor art products26,28930,88435,49242,76248,525
Designs, medals, type, and dies12,65115,70316,97919,07119,646
Machines, tools, and Implements430,988563,131896,903901,550998,834
Carriages and vehicles1,117,7141,220,2431,557,9251,814,9972,071,329
Harness, saddlery, and leatherware1,124,3751,293,6371,970,7101,557,5261,264,980
Ships, boats, and their equipment204,199226,001315,300343,151309,013
House-furnishings445,665575,047779,217949,364988,930
Chemicals and by-products1,295,6891,349,5931,565,3171,848,9181,984,508
Textile fabrics499,159452,741626,934680,818453,591
Apparel2,484,5682,554,0253,095,9903,182,9153,178,557
Fibrous materials160,921191,871223,964258,078246,732
Miscellaneous99,436119,427198,335222,144275,085
    Totals52,084,74159,940,39370,668,07575,084,17375,344,181

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 1938-39, for example, the two industries mentioned accounted for £41,747,298 out of a total of £75,344,181 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.1934-35.1935-36.1936-37.1937-38.1938-39.
 £££££
Animal food35,894,09441,876,43148,927,91950,388,44949,436,671
Vegetable food5,307,7605,611,1776,090,4896,399,4956,445,458
Drinks, narcotics, and stimulants3,533,2303,217,3093,630,4084,296,9454,272,803
Animal matters (not otherwise classed)1,060,0401,271,6361,246,1451,358,2301,308,668
Working in wood3,695,7024,651,0385,597,4696,323,4326,503,968
Vegetable produce for fodder69,82373,39478,635112,849131,049
Paper manufactures436,098450,234544,405651,442654,018
Heat, light, and power6,004,3846,248,7486,563,1857,189,4507,839,507
Processes relating to stone, clay, glass, etc.1,319,5791,691,9592,122,9512,465,8912,791,957
Metals other than gold or silver2,948,8303,579,1374,424,4405,201,5645,798,318
Precious metals97,082111,314143,178159,902164,980
Books and publications3,758,9374,040,1144,406,8044,839,4494,873,530
Ornaments and minor art products56,76466,43562,34899,036104,318
Designs, medals, type, and dies63,13473,84379,97791,33895,782
Machines, tools, and implements816,7001,170,1871,671,5291,774,2211,739,550
Carriages and vehicles2,570,9633,222,6264,334,2365,588,4335,943,413
Harness, saddlery, and leatherware1,594,3331,833,4302,640,2712,086,2881,773,824
Ships, boats, and their equipment439,678485,363669,365735,747722,086
House-furnishings946,3771,201,3171,630,1391,930,4792,044,190
Chemicals and by-products2,338,1372,449,3632,828,0603,220,0643,386,155
Textile fabrics1,107,8701,072,1591,323,8121,382,4721,109,079
Apparel4,721,6774,963,2455,963,4706,351,6486,219,822
Fibrous materials328,881444,998523,822571,396496,753
Miscellaneous214,290269,291418,605473,330591,527
    Totals79,324,47390,014,748105,941,722113,691,556114,447,426

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.”

The table given hereunder shows the added value by classes of industries for each of the last five years:—

Class of Industry.10:14-35.1935-36.1936-37.1937-33.1938-39.
 £££££
Animal food5,377,3175,520,9896,334,3696,248,8976,566,507
Vegetable food1,745,1901,986,1032,247,8702,028,2752,148,908
Drinks, narcotics, and stimulants2,160,4481,873,2651,974,9902,342,6871,975,061
Animal matters (not otherwise classed)550,706566,553548,220581,393002,730
Working in wood2,448,0612,942,0583,578,1354,070,4904,014,909
Vegetable produce for fodder20,20318,92119,73629,03439,502
Paper manufactures248,292236,010281,162330,576316,767
Heat, light, and power1,834,0351,999,9332,008,9282,332,2742,257,183
Processes relating to stone, clay, glass, &c.1,005,9381,284,8651,618,0961,830,7712,070,100
Metals other than gold or silver1,701,4832,014,3422,473,5802,813,7323,229,347
Precious metals55,60063,39073,98186,28189,019
Books and publications2,795,3092,963,1723,227,0103,485,4153,406,803
Ornaments and minor art products30,41535,55146,85656,27455,793
Designs, medals, type, and dies50,48358,14062,99872,20776,136
Machines, tools, and implements385,772547,056774,626812,671740,716
Carriages and vehicles1,453,2492,002,3832,776,3113,773,4303,872,084
Harness, saddlery, and leatherware469,958539,793669,561528,762508,844
Ships, boats, and their equipment235,479259,362354,065392,596413,073
House-furnishings500,712625,670850,922981,1151,055,260
Chemicals and by-products1,042,4481,099,7701,262,7431,371,1401,401,287
Textile fabrics608,711619,418696,878701,654655,468
Apparel2,237,1092,408,6202,867,4803,168,7333,041,265
Fibrous materials167,960253,127299,858312,718250,021
Miscellaneous114,854149,864220,270251,186316,442
    Totals27,239,73230,074,35535,273,64738,607,38339,103,245

The following table shows various percentages and rates that have been computed in connection with the added value for the last five years:—

1934-35.1935-36.1936-37.1937-38.1938-39.
 £££££
Added value per head of mean population17.5319.2322.3424.2224.27
Added value per person engaged343.25347.33365.91377.23381.36
Added value per £100 expended on salaries and wages205.67202.60192.40184.01175.59
      
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
Percentage of salaries and wages to added value48.6249.3651.9754.3556.95
Percentage of added value to cost of materials used52.3050.1749.9151.4251.90

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.1934-35.1935-36.1936-37.1937-38.1938-39.
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
Animal food44.5146.7547.8154.1054.78
Vegetable food33.8232.2632.9440.2440.93
Drinks, narcotics, and stimulants23.8728.7031.4430.0437.38
Animal matters (not otherwise classed)34.3135.8842.1145.2646.83
Working in wood52.1852.9555.9256.6258.83
Heat, light, and power57.7457.1663.6261.2769.04
Books and publications54.1453.1854.2254.4958.82
Machines, tools, and implements54.4249.7851.2153.3760.99
Apparel65.7165.3869.5271.2777.16
Fibrous materials55.8754.3056.5059.8954.15

With the exception of the fibrous-materials class, all classes have recorded upward movements in 1938-39 for the proportion which wages bears to added value.

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. Total operating costs of factory production for the year 1938-39 amounted to £107,900,717 (salaries and wages, £22,270,010; cost of materials, £75,344,181; other expenses, £10,292,526), while value of output totalled £114,447,426, showing therefore a surplus of £6,540,709. 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.1934-35.1935-36.1936-37.1937-38.1936-39.
 £££££
Cost of coal509,362572,229635,171685,762755,552
Cost of other fuel and power597,846610,643686,681792,467813,271
Insurance244,497263,897299,168428,605507,125
Depreciation1,433,7091,494,9191,561,9921,629,9541,689,331
All other expenses6,217,0426,665,1367,568,3317,290,8056,527,247
    Totals9,002,4569,606,82410,751,34310,827,59310,292,526

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.1934-35.1935-36.1936-37.1937-38.1938-39.
 £££££
Animal food8,616,5118,781,4928,963,1029,007,4189,429,165
Vegetable food2,435,7452,527,9292,532,6232,604,8962,768,758
Drinks, narcotics, and stimulants1,850,6461,935,0872,009,4672,239,1132,507,362
Animal matters (not otherwise classed)484,194495,732500,214539,236570,681
Working in wood2,255,7922,353,1472,471,3502,555,4922,589,805
Vegetable produce for fodder70,57837,24039,01051,37570,636
Paper manufactures298,028318,999404,471437,709464,156
Heat, light, and power34,214,09933,609,70634,526,75935,715,74437,220,521
Processes relating to stone, clay, glass, &c.1,800,3191,793,0781,829,1501,979,0592,105,226
Metals other than gold or silver2,429,4552,241,0342,276,4832,455,8262,647,012
Precious metals92,90893,89986,94193,64298,158
Books and publications3,611,2523,595,7203,691,2263,751,8733,888,209
Ornaments and minor art products61,47563,12760,29260,76461,605
Designs, medals, type, and dies67,29568,82171,88869,89974,007
Machines, tools, and Implements429,615465,979505,406565,837580,570
Carriages and vehicles2,232,8502,555,3522,805,7723,166,7203,608,047
Harness, saddlery, and leatherware473,721483,928479,101491,463495,993
Ships, boats, and their equipment274,982235,016198,715268,566282,639
House-furnishings659,814675,796710,339808,737873,129
Chemicals and by-products1,619,0491,634,9131,697,2761,708,0371,887,542
Textile fabrics827,976827,629884,323945,258973,433
Apparel1,911,8442,005,6622,168,6052,407,2992,604,097
Fibrous materials242,494323,073321,392364,179271,857
Miscellaneous307,208310,520363,360390,580424,534
    Totals67,268,45067,438,87969,597,26572,738,72276,497,802

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 £6,566,507 as against £2,257,183 for heat, light, and power, the fixed capital in the latter case is £37,220,521, and in the former £9,429,165—approximately £27,800,000 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 next three years, 1931-32 to 1933-34, registered decreases, but these were followed by a rise in 1934-35, when the value rose to £67,268,450. This increase was mainly due 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 1938-39 to £76,497,802.

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 1905-06 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 1938-39 being 36 and 64. 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 four 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 four 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.
 £ £ £
1934-3523,159,57334.4344,108,87765.5767,268,450
1935-3623,985,51035.5743,463,36964.4367,438,879
1936-3724,445,33835.1245,151,92764.8869,597,265
1937-3825,573,74135.1647,164,98164.8472,738,722
1938-3927,201,64235.5649,296,16064.4476,497,802

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. The chief factors militating against the collection of complete 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. A company engaged in more than one industry, however, is counted for each industry.

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, 1937-38, and 1938-39 figures include bank overdrafts.
Private Companies.
  ££ £ ££
1934-351,58414,135,00813,238,87880.953,116,48019.0516,355,3581,679,667
1935-361,70014,551,33013,715,65980.833,252,31919.1716,967,9781,674,878
1936-371,78715,842,23015,010,56574.785,062,19125.2220,072,7561,884,036
1937-381,95015,814,82315,259,33473.735,438,04226.2720,097,3761,759,652
1938-392,00910,046,82115,401,12472.175,962,71127.8321,123,8351,836,548
         
Public and Co-operative Companies.
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
1937-3874220,740,74124,063,29474.728,139,78225.2832,203,0763,657,542
1938-3977127,903,92525,242,70975.088,377,01624.9233,619,7253,819,547
         
Total (all Companies).
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
1936-372,52540,361,44737,162,04475.4012,124,17524.6049,286,2195,278,126
1937-382,69242,555,56439,322,62874.3313,577,82425.6752,900,4525,417,194
1938-392,78043,950,74640,703,83373.9514,339,72726.0555,043,5605,656,095

In considering the figures given in regard to capital it must be borne in mind that the registered capital is taken in each ease, 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 beyond the amount actually employed in factory operations.

AGES OF INDUSTRIES.

Out of the 6,146 manufacturing establishments furnishing returns for the year 1938-39, 2,253 were shown to have been in operation prior to 1916; so that, excluding those cases where the date of establishment is unknown, 3,690 of the present establishments came into existence during the last twenty-three years, at an average rate over this period of 160 per annum. Some 1,364 date from the decade 1916-25; 837 from the quinquennium 1926-30; 952 from 1931-35; and 537 from 1936; while in 203 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 butter and cheese manufacturing. Municipal enterprises are confined mainly to public-utility industries—e.g., gasworks and the generation and 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 1938-39 is given in the following table.

Character of Organization.Number of Establishments.Persons engaged.Horse-power available.Cost of Materials used or operated upon.Value of Manufactures or Products.Added Value.
Total.Per Establishment.
   H.p.££££
Individual1,9899,31015,7342,120,9164,703,0362,582,1201,298
Private firm or partnership7214,7419,159976,0122,426,8301,450,8182,012
Public registered company60236,161115,24020,771,77434,537,16813,765,39422,866
Private registered company2,24248,857103,62120,901,83637,941,48917,039,6537,600
Co-operative and miscellaneous4394,38627,62625,170,50227,696,0152,525,5135,753
Municipal and Government1535,080576,4005,403,1417,142,8881,739,74711,371
    Totals6,146102,535847,78675,344,181114,147,42639,103,2456,362

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 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 (43.58 per cent. in 1938-30, as compared with 35.20 per cent. in the case of public companies). Municipal and general governmental enterprises accounted for 4.45 per cent. of the total added value in 1938-39.

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, &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 1937-38 and 1938-39:—

Group.Persons engaged.Salaries and Wages paid.Materials used.Other Expenses of Operation.Products.Added Value.Land, Buildings, Plant, and Machinery.
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
III12,0142,763,5092,197,5251,904,6257,424,3675,226,8424,083,510
IV71,48513,194,52122,518,4006,010,77746,885,86124,367,46123,560,221
    Totals102,34420,981,58775,084,17310,827,593143,691,55638,607,38372,738,722
1938-39.
I13,3913,837,05744,052,0662,585,90851,062,4117,010,3459,860,815
II5,6811,558,2725,582,324350,2187,839,5072,257,18337,220,521
III11,5822,821,7062,401,8641,804,9417,700,3795,298,5154,106,289
IV71,88114,052,97523,307,9275,551,45947,845,12924,537,20225,310,177
    Totals102,53522,270,01075,344,18110,292,526114,447,42639,103,24576,497,802

Comparisons of Group IV—i.e., “true” factory industries—for the years 1937-38 and 1938-39 reveal that persons engaged in 1938-39 increased by 396 in number, or by 0.6 per cent.; salaries and wages paid advanced by £858,454 or by 6.5 per cent.; while materials used rose by 3.5 per cent., value of products by 2.0 per cent., “added value” by 0.7 per cent., and value of land, buildings, plant, and machinery by 7.4 per cent. Other expenses recorded a decrease of 7.6 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.
1937-38.1938-39.1937-38.1938-39.1937-38.1938-39.
Number.Per Cent. of Total.Number.Per Cent. of Total.£Per Cent. of Total.£Per Cent. of Total.££
£          
Under 5005130.724470.62127,8670.27116,7100.24249261
500- 9991,2091.771,2971.80442,1450.94458,4730.96348353
1,000- 2,4994,6276.474,7346.591,948,7744.162,087,8104.36421441
2,500- 4,9996,5119.106,6849.302,976,1726.353,157,9046.60457472
5,000- 9,9997,45310.438,28411.533,722,4277.944,443,3709.29499536
10,000-14,9996,2008.676,7169.343,302,1597.043,746,1577.83533558
15,000-19,9994,4476.223,8565.362,342,4895.002,275,7744.76527590
20,000-49,99913,48618.8814,02919.528,515,71018.168,743,60118.28631623
50,000-99,9999,30513.028,86312.336,625,97514.136,383,51113.34712720
100,000 and over17,67424.7216,97123.6116,882,14336.0116,431,81934.34955968
Totals, Group IV71,485100.0071,881100.0046,885,861100.0047,845,129100.00656666

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, 1938-39.

OVERTIME AND SHORT TIME.

The amount of overtime worked or short time recorded by industries gives a reasonably accurate 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 five 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 five years.

Year.Overtime.Short Time.
Males.Females.Totals.Males.Females.Totals.
 Hours.Hours.Hours.Hours.Hours.Hours.
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
1938-393,081,353527,1613,608,514677,561242,600920,161

More than 50 per cent. of the total overtime worked in 1938-39 was contributed by six industries—meat freezing and preserving (611,048 hours), coachbuilding and motor-engineering (480,600 hours), printing and publishing (310,385 hours), clothing (213,977 hours), biscuit and confectionery (187,480 hours), and electricity generation and supply (175,491 hours). The meat freezing and preserving industry recorded the highest amount of short time (323,698 hours), followed by the woollen-milling industry (168,565 hours) and the sawmilling industry (109,717 hours). Marked seasonal fluctuations occur in the meat freezing, &c. industry, while the sawmilling industry is affected by adverse weather conditions. A slackening-off of production in the woollen-milling industry during 1938-39 accounted for the high figure recorded for short time in that industry.

The following table gives for each of the last five 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.
1934-3531263224
1935-3635342622
1936-373630154
1937-384127159
1938-3945231011

SUMMARY OF OPERATIONS.

The following table, showing an analysis of production costs in 1938-39, 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.
* Excess of value of products over production costs.
 £(000)£(000)£(000)£(000)£(000)£(000)
Animal food3,59742,8702,46648,93349,437504
Vegetable food8804,2965985,7746,445671
Drinks, narcotics, and stimulants7382,2985863,6224,273651
Animal matters (not otherwise classed)2827061701,1581,309151
Working in wood2,3612,4891,2476,0976,504407
Vegetable produce for fodder17921212113110
Paper manufactures13833779554654100
Heat, light, and power1,5585,5823507,4907,839349
Processes relating to stone, clay, glass, &c.9297227222,3732,792419
Metals other than gold or silver1,9752,5697005,2445,798554
Precious metals58761514916516
Books and publications2,0041,4678884,3594,874515
Ornaments and minor art products41489981046
Designs, medals, type, and dies53201588968
Machines, tools, and implements4529991601,6111,740129
Carriages and vehicles2,2792,0717195,0695,943874
Harness, saddlery, and leatherware3011,2651071,6731,774101
Ships, boats, and their equipment3013096367372249
House-furnishings7409891691,8982,044146
Chemicals and by-products5281,9853632,8763,386510
Textile fabrics4224541711,0471,10962
Apparel2,3473,1795016,0276,220193
Fibrous materials1352468046149736
Miscellaneous13427510351259179
    Totals22,27075,34410,293107,907114,4476,540

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.

1936-37.1937-38.1938-39.

* Including milk used (347,081,535 lb. in 1938-31) in making dried whole milk and skim milk, condensed-milk, and casein.

† Including butterfat (2,177,259 lb. in 1938-39) contained in milk used for making dried whole milk and condensed-milk.

‡ Not available.

Meat Freezing and Preserving.
Number of—  
  Works 383838
  Persons engaged 7,6657,8357,897
Salaries and wages paid£1,865,2822,188,1022,379,748
Cost of materials used£17,218,25317,713,36316,837,127
Other expenses£1,144,790991,8651,053,471
Frozen mutton—    
  CarcasesNo.2,029,8412,149,1902,650,937
  Value£1,736,2871,936,0181,948,722
Frozen lamb—    
  CarcasesNo.9,238,7009,015,7139,462,171
  Value£8,993,9128,987,2779,111,639
Frozen mutton and lamb pieces—    
  QuantityCwt.6,3499,93613,325
  Value£8,33613,58616,719
Frozen beef—    
  QuantityCwt.593,507678,750733,400
  Value£801,9051,035,1531,238,303
Chilled beef—    
  QuantityCwt.275,015322,802368,403
  Value£445,152592,128098,767
Frozen pork—    
  QuantityCwt.655,865661,603508,342
  Value£1,843,1582,139,4741,881,030
Preserved meats—    
  QuantityCwt.112,28798,27682,000
  Value£366,226349,968336,015
Tallow—    
  QuantityCwt.453,593493,605505,241
  Value£579,568542,867434,245
Bonedust—    
  QuantityCwt.34,82341,23453,348
  Value£12,92016,41521,714
Other manures—    
  QuantityCwt.626,760497,969484,489
  Value£188,395167,298167,131
Hides and pelts—    
  QuantityNo.13,088,55913,028,89214,428,904
  Value£2,198,9602,086,1461,612,935
Wool—    
  Quantitylb.32,189,84932,352,09733,400,159
  Value£1,923,9711,931,3201,600,700
Total value of output£20,769,86921,227,64120,653,074
     
Ham and Bacon Curing
Number of— 
  Works 525149
  Persons engaged 506521498
Salaries and wages paid£112,014129,432132,099
Pigs dealt with—    
  CarcasesNo.251,160249,777273,872
  Cost£834,141874,419972,834
Cost of other materials used£54,84754,84471,759
Other expenses£145,346163,766114,599
Ham and bacon—QuantityCwt.173,573174,773104,259
Frozen pork—QuantityCwt.45,86940,68867,685
Lard—QuantityCwt.8,0377,9477,906
Total value of output£1,183,5071,257,4111,335,969
     
Butter, Cheese and Condensed-milk Factories.
Number of— 
  Factories 469433429
  Persons engaged 4,3184,1283,944
Salaries and wages paid£1,032,7631,040,7541,065,329
Number of separators—    
  At home 62,79958,22956,749
  At factories 504465459
Butterfat separated—    
  At homelb.297,464,153275,297,527248,884,192
  At factorieslb.25,058,89424,164,53918,545,514
Milk received by cheese-factories*lb.2,395,359,0372,302,286,6602,116,099,651
Butterfat receivedlb.81,960,67980,813,52477,470,174
Value of materials used£24,414,05725,405,72724,910,171
Other expenses£1,349,8081,290,4051,288,168
Butter produced (including whey butter)—    
  QuantityCwt.3,553,1073,307,4032,957,222
  Value£20,457,11620,731,08020,173,631
Cheese produced—    
  QuantityCwt.1,820,3021,769,3511,705,277
  Value£5,493,9086,044,6226,344,749
Casein produced—    
  QuantityCwt.86,94570,229
  Value£228,798168,597
Total value of output£26,868,64327,767,28827,334,584
     
Grain-mills.
Number of— 
  Mills 504747
  Persons engaged 743767738
Salaries and wages paid£169,291188,429188,757
Wheat used—QuantityBushels6,368,6106,890,3966,545,279
Total grain—Cost£1,738,5801,926,8451,811,023
Cost of other materials£110,725120,398119,417
Other expenses£246,528257,117162,635
Flour producedTons132,987144,724137,083
Oatmeal producedTons4,0853,4103,268
Other oaten products for human consumptionTons3,8013,5533,764
Total value of output£2,348,8552,574,9442,383,103
     
Biscuit and Confectionery Making.
Number of— 
  Works 605255
  Persons engaged 3,1273,2083,190
Salaries and wages paid£392,606428,585405,500
Flour usedTons5,2495,3345,754
Sugar usedTons7,5507,8748,151
Cost of all materials used£971,3871,108,7431,117,900
Other expenses£319,404270,535272,423
Biscuits and confectionery made£1,810,8041,786,1481,905,104
Total value of output£1,964,1301,921,3142,028,822
1936-37.1937-38.1938-39.
* Including beer duty.
Number of—Fruit-preserving and Jam-making.
  Works 161719
  Persons engaged 427449553
Salaries and wages paid£64,13378,79894,082
Fruit usedTons4,5055,1285,614
Cost of—    
  Fruit used£71,76385,62998,749
  Sugar and other materials£155,911205,246249,209
Other expenses£50,96243,27347,597
Jams and jellies made—    
  QuantityCwt.59,52655,80856,390
  Value£167,136183,997182,787
Fruit bottled or canned£90,92692,883132,733
Other products—Value£129,432187,640246,672
Total value of output£387,494464,520562,192
     
Breweries and Malt-houses.
Number of— 
  Establishments 494950
  Persons engaged 1,0361,1551,243
Salaries and wages paid£267,951319,250348,466
Barley used in production of maltBushels634,343716,675892,615
Hops usedCwt.5,3466,1566,271
Sugar usedCwt.27,47035,10338,219
Total cost of materials used£550,150736,971918,644
Other expenses*£1,127,8981,364,5141,374,987
Ale brewedGallons12,554,62715,284,14216,219,436
Stout brewedGallons1,018,7311,212,6741,174,079
Value of output*£2,402,7402,922,6292,998,231
     
Aerated-water and Cordial Factories.
Number of— 
  Works 116120128
  Persons engaged 544609561
Salaries and wages paid£115,519132,551121,495
Total cost of materials used£116,678157,555175,806
Other expenses£84,615108,36664,432
Aerated waters—In bottlesDozen2,020,0502,671,3292,565,131
Aerated waters—In bulkGallons159,937252,497225,009
Cordials—In bottlesDozen61,66677,54384,432
Hop-beer—In bottlesDozen107,61292,55554,298
Hop-beer—In bulkGallons21,91760,32910,475
Total value of output£375,082497,169419,996
     
Sauce, Pickle, and Vinegar Making.
Number of— 
  Works 161719
  Persons engaged 254272262
Salaries and wages paid£47,26351,37252,392
Cost of materials used£95,03399,182106,540
Other expenses of manufacture£46,04642,88525,693
Vinegar produced—    
  QuantityGallons668,802774,809673,667
  Value£37,36739,30233,400
Total value of output£222,264232,095216,205
1936-37.1937-38.1938-39.
* Tons.
Number of—Soap and Candle Works.
  Works 222019
  Persons engaged 553552520
Salaries and wages paid£107,259107,727112,041
Cost of materials used£299,478308,872268,363
Other expenses£82,36777,53775,487
Soap manufacturedTons7,6207,2536,888
Toilet soap—QuantityDoz. tabs.838,717796,778975*
Soap-powder (including washing-powder)Tons2,2642,6202,711
Candles manufacturedlb.2,041,9271,640,4521,447,357
Total value of output£578,569565,871542,188
     
Clothing Factories.
Number of works 336357380
Number of persons engaged—    
  Males 1,7711,9001,883
  Females 10,05711,01610,387
Salaries and wages paid—    
  To males£400,393458,136470,531
  To females£921,9951,084,7971,098,355
Cost of materials used£1,849,3801,899,31011846,028
Other expenses£303,630329,941292,175
Output—    
  SuitsNo.256,703264,339233,001
  ShirtsDozen169,270184,341181,928
  Hats and caps (men's and boys')Dozen24,03534,89329,842
  Hats (women's)Dozen118,670126,925113,316
Total value of output£3,663,1073,962,0563,809,093
     
Hosiery Factories.
Number of— 
  Works 353536
  Persons engaged 1,2261,2981,259
Salaries and wages paid£146,623167,975182,956
Cost of materials used£306,276318,281301,734
Other expenses£70,55270,90767,513
Output—    
  HoseDoz. pairs123,132147,677181,291
  Half-hoseDoz. pairs72,53572,63971,384
Total value of output£564,990590,253574,237
     
Boot and Shoe Factories
Number of works 717069
Number of persons engaged—    
  Males 1,6751,6631,634
  Females 1,4331,4181,441
Salaries and wages paid—    
  To males£315,998320,790343,029
  To females£122,086130,456143,620
Cost of materials used—    
  New Zealand leather£397,049348,194356,054
  Imported leather£163,090161,874158,733
  Other materials£175,605203,641216,110
Total£735,744713,709730,897
Other expenses£122,888126,142101,849
Manufactures—    
  Adults' boots and shoesPairs1,760,2531,657,9621,715,090
  Children's boots and shoesPairs241,212199,849262,945
  SlippersPairs1,208,6481,344,2291,244,083
  UppersPairs1,6931,103656
Total value of output£1,384,1861,386,9141,355,398
1936-37.1937-38.1938-39.
* Including royalty.
Number of—Flax-mills.
  Mills 323320
  Persons engaged 540537254
Salaries and wages paid£92,202104,16948,831
Raw flax used—    
  QuantityTons63,22764,86435,018
  Cost£16,00012,45612,014
Other materials£2,6671,898854
Other expenses*£64,93670,03028,980
Fibre dressedTons6,9517,0064,539
Tow producedTons1,2491,402604
Total value of output£179,323177,51294,334
     
Sawmills.
Number of— 
  Mills 467474444
  Persons engaged 8,0058,3647,917
Salaries and wages paid£1,669,5971,936,9011,948,849
Cost of materials used£1,369,7111,570,5991,700,987
Other expenses£1,116,0261,208,7781,106,846
Sawn timber—    
  QuantityFt. b.m.305,889,418322,765,786316,715,882
  Value£2,639,7373,028,6562,935,105
Posts, rails, &c.—Value£9,63012,79332,317
Resawing, planed flooring, skirting, &c.—    
  QuantityFt. b.m.62,465,49064,422,31669,636,088
  Value£1,024,1811,144,6211,210,492
Doors and sashes—Value£109,579118,112133,451
Other products£641,804756,951703,338
Total value of output£4,424,9315,061,1335,074,703
     
Gasworks.
Number of— 
  Works 464045
  Persons engaged 1,8681,9201,942
Salaries and wages paid£451,574499,303526,229
Coal used—    
  QuantityTons219,634221,236226,265
  Cost£397,087426,651447,532
Other expenses£350,479346,573350,218
Total gas generated1,000 cub. ft.3,997,0404,093,4674,154,727
Gas sold1,000 cub. ft.3,444,2243,539,5743,591,352
Coke soldTons67,20670,76276,657
Tar soldGallons2,443,1912,849,0503,146,656
Total receipts£1,424,7491,497,5151,527,275
Total expenditure£1,199,1401,272,5271,323,979
     
Lime and Cement Works.
Number of— 
  Works 606466
  Persons engaged 9531,0501,123
Salaries and wages paid£212,657266,756298,969
Cost of materials used£165,991230,065251,645
Other expenses£399,301345,257389,485
Cement producedTons151,277172,784216,129
Total value of output£836,048945,4741,103,900
1936-37.1937-38.1938-39.
* Not available.
Number of—Brick, Tile, and Pottery Works.
  Works 626060
  Persons engaged 9099091,117
Salaries and wages paid£190,038200,835250,968
Cost of materials used£35,67040,57144,800
Cost of coal used£45,19948,90164,740
Other expenses£128,490138,043122,283
Bricks manufactured—    
  CommonNo.26,075,27426,268,10929,057,259
  FireNo.810,1231,095,7961,524,654
  OtherNo.4,948,2154,998,9006,112,115
Total value of all bricks manufactured£163,059173,461187,610
Value of drain-pipes manufactured£151,358158,498245,909
Value of tiles manufactured£45,79067,03249,163
Total value of output£429,981483,206569,634
     
Tinware and Sheet-metal Works.
Number of— 
  Works 128126133
  Persons engaged 1,5541,6901,886
Salaries and wages paid£270,608321,498389,363
Cost of materials used£580,883672,617752,599
Other expenses£107,790123,169131,191
Principal Products—    
  Tin canisters and containers£*474,984505,034
  Other tinned ware£*41,20944,282
  Copperware£*131,399156,601
  Leadware£*42,05654,594
  Spouting, ridging and down— piping£*88,306135,701
  Other galvanized ware£*125,688179,778
Total value of output£1,032,3471,191,6031,391,623
     
Iron and Brass Foundries.
Number of— 
  Works 444849
  Persons engaged 883930962
Salaries and wages paid£168,710201,318216,845
Cost of materials used£167,727200,660199,302
Other expenses£61,79069,76484,953
Total value of output£427,736505,479557,051
     
Engineering-works.
Number of— 
  Works 206206212
  Persons engaged 3,7273,8984,039
Salaries and wages paid£774,907874,911951,949
Cost of materials used£842,4881,047,3241,022,568
Other expenses£330,902340,055321,295
Total value of output£2,095,9902,445,4952,556,159
1936-37.1937-38.1938-39.
Printing and Publishing Establishments.
Number of works 381370373
Persons engaged—    
  Males 6,1266,2406,309
  Females 1,7771,9132,028
Salaries and wages paid—    
  To males£1,550,0741,673,3851,752,500
  To females£199,572225,677251,430
Cost of materials used£1,179,7941,354,0341,466,727
Other expenses£1,063,6131,118,116887,916
Total value of output£4,406,8044,839,4494,873,530
     
Agricultural and Dairying Machinery and Implement Making.
Number of— 
  Works 545760
  Persons engaged 1,1521,2001,137
Salaries and wages paid£257,084271,097267,194
Cost of materials used£565,141678,899691,702
Other expenses£101,06195,82489,954
Total value of output£1,091,2751,229,2791,146,970
     
Coachbuilding and Motor and Cycle Engineering.
Number of— 
  Works 1,2181,3071,390
  Persons engaged 8,1859,90910,289
Salaries and wages paid£1,600,7302,120,2802,278,851
Cost of materials used£1,557,9251,814,9972,071,329
Other expenses£472,663700,502719,060
Value of work done—    
  Coachbuilding£705,707831,696936,347
  Motor engineering£3,628,5294,756,7375,007,066
     
Tanning.
Number of— 
  Works 141313
  Persons engaged 571497459
Salaries and wages paid£117,755119,890109,680
Cost of materials used£396,548376,680291,898
Materials operated upon—    
  Sheep-skinsNo.248,112210,697214,242
  Hides, pelts, &c.No.447,243410,001448,135
Bark usedTons1,579917647
Cost of bark extract used£24,69724,89925,982
Other expenses£72,70468,21045,836
Output—    
  Scoured and slipe woollb.643,283448,227454,992
  Leatherlb.5,795,4295,110,4244,828,737
  Basilslb.302,976212,804227,645
Total value of output£614,113583,287491,209
     
Woolscouring and Fellmongering.
Number of— 
  Works 343536
  Persons engaged 414379398
Salaries and wages paid£84,15080,84989,659
Cost of materials used£1,376,599994,748822,600
Materials operated upon—    
  Sheep-skinsNo.1,434,2981,350,0851,116,785
  Greasy woollb.22,330,50915,903,36218,321,502
  Other expenses£41,85635,85535,602
Principal products—    
  Scoured and slipe woollb.17,901,70014,276,69614,394,255
  PeltsNo.217,078167,728132,355
  Pickled peltsNo.1,067,357960,170899,202
Total value of output£1,650,0611,147,173972,304
     
Woollen-mills.
Number of— 
  Mills 121212
  Persons engaged 2,7922,7482,406
Salaries and wages paid£405,484422,240392,393
Greasy wool used—    
  Quantitylb.8,374,1297,529,5036,492,916
  Cost£427,302483,495312,169
Cost of other materials used£150,235120,05165,816
Other expenses£171,952165,345152,161
Output—    
  Tweed and clothYards1,612,4291,352,0881,251,022
  FlannelYards668,330714,174601,479
  BlanketsPairs167,535164,680135,122
  HosieryDoz. pairs131,104123,529109,894
  Rugs and shawlsNo.79,64877,60350,384
  Yarnlb.904,967791,115652,962
Total value of output£1,230,8291,258,319951,636
     
Ship and Boat Building
Number of— 
  Establishments 272930
  Persons engaged 726690722
Salaries and wages paid£175,457182,325203,604
Cost of materials used£125,906112,625107,279
Other expenses£37,06740,85638,537
Total value of output£354,118349,800370,826
     
Furniture-making Works.
Number of— 
  Factories 338381414
  Persons engaged 2,8073,1453,215
Salaries and wages paid£528,567626,628675,134
Cost of materials used£649,241793,270818,564
Other expenses£131,801136,415136,813
Total value of output£1,380,4921,659,3911,752,218
     
Superphosphates and Chemical Fertilizers.
Number of— 
  Works 888
  Persons engaged 753902932
Salaries and wages paid£186,208240,319249,208
Cost of materials used£901,2081,112,2021,158,579
Other expenses£248,995194,641212,911
Products—    
  SuperphosphatesTons347,469402,076408,693
  Chemical fertilizersTons48,67465,13365,910
Total value of output£1,498,2281,809,4711,822,857

Chapter 23. SECTION XXIII.—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 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 became more urgent with the outbreak of war. 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. Large-scale building construction, however, received a decided check in 1939, the conditions which prevailed for some months prior to and since the outbreak of war severely restricting the importation of essential materials, notably iron and steel. For example, imports of channel and girder iron fell from 240,800 cwt. in 1938 to 167,900 cwt. in 1939. On the other hand, construction work in connection with military camps and aerodromes necessitated the diversion of a considerable number of artisans and large supplies of building materials from normal building activity. The effect of these factors is reflected in the monthly statistics of building permits, given later in this section. 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, since winters are not sufficiently severe, except in a few districts, to interfere materially with the building of dwellings or other construction work. The Government in planning public works, regulates the period of greatest activity so as to coincide with the slack season of the year for industry in general.

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
1939345.538.2316.5167.9

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 1890 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 displayed 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 wore 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 and other roofing materials.

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
187882,58834.6038.36
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 due 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 does 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 483) 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 far 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 dwellings225,363
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 and of minimum accommodation are too detailed for repetition here, but a résumé of the latter will be found on page 550 of the 1940 issue of the Year-Book. Of the 38,490 dwellings which failed to measure up to the standards of physical condition in one or more respects, in 31,663 cases the deficiencies were repairable. Equipment was wholly or partly unsatisfactory in 43,864 of the houses examined, while some 27,214 dwellings failed to reach the standard of minimum accommodation laid down.

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.
* Pius 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-enumerators 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, 1940, being £10,400,000. 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 31st March, 1940, land for housing purposes had been purchased in 127 towns, the number of building-sites being approximately 18,000. The total value of freehold land purchased and held for housing purposes was £1,655,699. Up to 31st March, 1940, the total net payments in respect of purchase of land, provision of services, erection of joinery factories, erection of houses, and all administrative charges amounted to £10,647,201. The net expenditure for the year 1939-40 was £5,136,699, while liabilities and commitments at 31st March, 1940, totalled £3,200,565. The total cost of administration of the Housing Construction Branch (exclusive of interest charges on capital moneys invested) from its inauguration to 31st March, 1940, was £275,512, of which sum £132,628 was in respect of the financial year 1939-40.

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 owing to the outbreak of war it was found necessary to transfer certain plant and machinery to the more urgent work of constructing military camps and aerodromes. Also for several months following the outbreak of hostilities a large number of artisans were released for the same purpose. Consequently, some of the Department's schemes of land preparation and development were considerably retarded, and housing activities slowed up generally. As the special works were completed, the artisans and other staff were retransferred to housing activities. The number of persons engaged on the Department's housing construction and subsidiary work at 31st March, 1940, was 5,594, of which number 370 represented the staff of the Department.

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 1939-40, will be found under the next heading.

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, 1940, the amount so advanced was £51,479, while the total amount advanced to that date was £440,370. 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, and its amendment of 1940, 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).

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.££
19224,3304,602,8345,283,0124,3304,602,8345,283,012
19235,0256,124,4397,101,6815,0256,124,4397,101,681
19246,2457,708,9339,146,4796,2457,708,9339,146,479
19255,8057,823,3319,304,1605,8057,823,3319,304,160
19266,8508,613,54910,169,5306,8508,613,54910,169,530
19277,1799,357,97711,019,3896,7528,944,33410,575,535
19285,6908,127,7329,665,2165,3887,843,7739,353,055
19295,2127,326,4649,054,4214,8716,988,4088,691,962
19305,7477,917,3499,959,8775,2287,362,9989,336,301
19313,4634,240,2385,473,3953,2004,056,2745,260,620
19321,5551,936,4472,728,4861,4151,847,5082,620,651
19331,4961,874,7952,474,8661,3061,773,3132,341,690
19342,6493,141,8973,889,8902,4162,987,7733,718,717
19352,8922,742,4953,643,6882,6552,612,6843,492,062
19364,1404,695,7365,929,8033,8354,468,1265,674,198
19374,5554,927,3266,581,2334,2074,675,3636,273,444
19386,0438,217,40010,291,6135,5687,876,3529,909,225
19398,09310,196,47612,126,4587,4259,555,74711,431,491
19408,1059,809,11811,437,4347,4489,175,67010,733,396

Prior to 1936-37 each block of flats was included as a single dwelling, but now that more information is available each individual fiat 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”; 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”; while the figures for “all districts” in 1938-39 include 374 flats (92 blocks), and of these 341 flats (81 blocks) are included in “cities, boroughs, and town districts.” The corresponding figures for 1939-40 are 327 flats (81 blocks) for “all districts” and 299 flats (71 blocks) for “cities, boroughs, and town districts” only.

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.

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, inter alia, 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—1937-38.1938-39.1939-40.
    Number6,0438,0938,105
    Value£5,317,037£7,518,199£7,757,940
  Value of alterations and additions£603,535£690,271£664,434
    
Other buildings—   
  New buildings—   
    Number746667494
    Value£2,900,363£2,678,277£2,051,178
  Value of alterations and additions£1,470,678£1,239,711£963,882
    
Total—   
  New buildings—   
    Number6,7898,7608,599
    Value£8,217,400£10,196,476£9,809,118
  Value of alterations and additions£2,074,213£1,929,982£1,628,316

The following table arranges districts with building values of over £100,000 in 1939-40, in descending order:—

 £
Auckland City1,659,723
Wellington City1,484,617
Christchurch City737,729
Lower Hutt Borough577,020
Dunedin City560,389
Mount Albert Borough407,896
Hamilton Borough321,396
Palmerston North City277,176
Mount Roskill Road District240,223
Napier Borough239,117
Invercargill City235,005
Hutt County184,964
Riccarton Borough182,863
One Tree Hill Borough171,075
New Plymouth Borough152,256
Waimairi County144,885
Nelson City135,412
Gisborne Borough134,250
Takapuna Borough125,388
Hastings Borough123,454
Upper Hutt Borough109,432
Petone Borough101,257

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, 1,895 in 1937-38 and 3,445 in 1938-39. During the year ended 31st March, 1940, 3,870 houses (each dwelling-unit is counted as a house) were commenced, of which 3,859 are included in urban districts, the remaining 11 being in rural districts. The total of 3,870 comprised 2,792 single-unit houses, 491 double-unit houses, 8 three-unit houses, 14 four-unit houses, and 2 blocks of 16 flats. Of the 3,870 units commenced during the year, 2,789 were in the four major urban areas, the respective totals being: Auckland, 1,522; Wellington, 682; Christchurch, 435; and Dunedin, 150. Houses are also erected by the Native Department under its various development schemes, particulars of which will be found on page 332.

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 1939-40, but excludes houses erected from loans granted by the State Advances Corporation. During 1939-40 the State Advances Corporation granted 1,617 loans for the erection of new dwellings. The following table shows urban districts in which twenty or more Government houses were commenced:—

New Dwellings.
Cities or Boroughs 
  Whangarei22
  Takapuna62
  Devonport23
  Auckland City714
  Mount Albert274
  Mount Eden26
  Ellerslie28
  One Tree Hill118
  Onehunga30
  Otahuhu51
  Hamilton95
  Tauranga23
  Whakatane36
  Opotiki24
  Gisborne39
  Wairoa20
  Napier134
  Hastings20
  New Plymouth42
  Wanganui City27
  Palmerston North City90
  Upper Hutt71
  Lower Hutt330
  Wellington City299
  Masterton36
  Blenheim25
  Riccarton157
  Christchurch City247
  Dunedin City139
  Invercargill City54
  Others451
    Total3,707
  
Town Districts 
Independent— 
  Papatoetoe20
  Johnsonville23
  Others53
  Total96
  
Dependent—9
    Total9
  
Road Districts and Counties 
  Mount Roskill R.D.165
  Hutt County45
  Waimairi County22
  Others11
    Total243
  
    Total, urban districts4,055

There were 332 new Government dwellings in rural districts, the majority of which were erected by the Native Department in connection with its various development schemes. Mangonui (38) and Hokianga (23) were the only counties in which the numbers exceeded twenty.

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 budding 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 830,000 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, 1932; while the statistics are shown in greater detail from January, 1939, in the second table:—

BUILDING PERMITS IN THE LARGER CENTRE.

Month.Year.
1932.1933.1934.1935.1936.1937.1938.1939.1940.
Number of New Dwellings.
 No.No.No.No.No.No.No.No.No.
January9484188233291224437675501
February9263162195250238435549589
March6590136225255225547601590
April6362107204275308363445601
May6185113239337354537641697
June734797213340323434562555
July7917979226344356436621469
August80211149294319415563578602
September122233247312273425579590506
October119211303321232492594501524
November73264246315266459607525513
December100203179261209321384397..
          
Value of all Permits.
 £££££££££
January185,946125,312263,829257,191407,961378,427659,990901,150755,316
February126,65396,812405,133259,379517,974429,237646,811886,597678,921
March124,962301,279613,297332,076458,072486,918829,7641,159,156748,686
April134,19676,028148,135537,172435,463595,064593,262672,977851,811
May112,61398,369274,287346,167422,956604,425846,856903,725895,882
June120,808146,410151,038282,063512,626540,655640,148806,543774,036
July210,342183,886170,845391,384561,382604,377758,8621,311,615809,042
August213,949246,988212,152391,505486,963804,517912,621907,949878,029
September213,524590,740297,231416,004440,237708,230783,919831,856769,442
October193,746259,923392,333399,403428,725802,186991,898659,532761,153
November191,999264,596327,397486,546491,430721,329816,537684,879927,424
December165,222214,670274,026354,107358,638641,571706,326594,963..

(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 557 in 1939.

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.

As mentioned earlier in this section, houses erected under the Government's housing schemes are included in the building statistics.

DETAILED STATISTICS, JANUARY, 1939, TO NOVEMBER, 1940.

Month.Alterations to Existing Buildings.New Buildings.Totals.
Number.Value.Dwellings only.Totals.Number.Value.
NumberValue.NumberValue.
  £ £ £ £
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, 1939956145,125641632,271678758,6001,634903,725
June, 1939793135,290562569,703590671,2471,383806,543
July, 1939812150,890621611,6396541,160,7251,4661,311,615
August, 1939776126,696578571,238632781,2531,408907,949
September, 193963599,675590585,128621732,1811,256831,856
October, 1939593101,587501490,092518557,9451,111659,532
November, 193968397,031525516,878543587,8481,226684,879
December, 193947572,909397384,321422522,848897594,963
January, 1940467176,690501491,385512578,620979755,316
February, 194058577,258589570,520607601,6631,192678,921
March, 1940625107,990590577,582618640,6901,243748,686
April, 1940707147,494601617,120624704,3171,331851,811
May, 1940759124,204697697,541723771,6781,482895,882
June, 1940630120,737555559,345579653,2991,209774,036
July, 1940749130,797469478,561497678,2451,246809,042
August, 1940671129,313602603,054622748,7161,293878,029
September, 1940681150,777506503,973529618,6651,210769,442
October, 1940712145,509524540,971548615,5841,260761,153
November, 1940592161,439513507,332534705,9851,126927,424

BUILDING: PERMITS IN RURAL DISTRICTS.

In view of the widespread interest evinced in building statistics, particularly in regard to housing, attempts have been made to collect data from counties during the last three years. 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 on Waiheke Island, and these were included in the collection. The number of rural districts covered in the 1939-10 collection was 126, including Taupo Road District, French Pass and Kenepuru Road Districts of Sounds County, and Ostend and Orapiu Road Districts of Waiheke Island. Of these districts, returns for the whole county were received from 72, returns for part of the county were received from 2, 38 did not issue permits and were unable to supply reliable estimates, and in 14 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 do so. It is probable that the latter class does 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 £1,588,271 in 1939-40, and included 1,581 new private dwellings.

The total amount of building for the four counties and three road districts included in urban districts was £704,038 for 1939-40, and includes 657 new dwellings. Particulars of new private dwellings and total value of buildings for the various counties are given in the 1939-40 Statistical Report on Population and Buildings.

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 does 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 or 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 31st March.

The statistics of building 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 XXIV. 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 largo 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 five years is 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 year ended 31st March, 1939, the value of building permits issued in urban and suburban localities was £12,126,458, whereas the value of work done during that period by builders furnishing building and construction returns (which cover both urban and rural activities) was £13,306,072.

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.
   ££££
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
1935-361,4548,3461,536,9244,424,3424,371,0356,279,959
1936-371,5129,7212,017,8245,620,8455,420,8288,133,847
1937-381,52211,4712,681,4937,096,7227,004,45310,422,230
1938-391,57914,0403,532,6878,952,7029,060,93413,306,072

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 1938-39. Persons engaged during 1938-39 (excluding subcontractors and their employees) advanced by 22 per cent. over the previous year's total, the corresponding increase in the amount of salaries and wages paid being 32 per cent. The cost of materials used rose by 26 per cent., and the value of work done increased by £2,883,842, or by 28 per cent.

CLASSIFICATION BY DISTRICTS.

The subjoined table shows the principal statistics for the year 1938-39:—

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.
   ££££
Auckland5104,6071,140,8013,034,5653,495,5594,434,401
Hawke's Bay90848228,181484,618545,573777,281
Taranaki5638492,016229,101245,974343,213
Wellington3473,8091,022,6232,441,0942,132,9493,673,734
Marlborough1913430,40465,90958,610104,426
Nelson4030667,167165,949138,346249,843
Westland2215635,54975,12270,451116,113
Canterbury2562,173526,4991,345,9271,316,3032,013,429
Otago—      
  Otago1571,204284,588734,945695,5131,089,430
  Southland8241998,859375,472361,656504,142
Totals1,57914,0403,532,6878,952,7029,060,93413,306,072

Of the total number of persons finding employment in building and construction operations covered by the returns in 1938-39, 8,416, or 60 per cent., were located in the Auckland and Wellington Provincial Districts. In regard to the value of work done during 1938-39, the Auckland figure exceeded that of Wellington by £760,727, while the combined totals for these two provincial districts (£8,108,195) represents almost 61 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 1938-39 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.
    £££
Proprietors1,604..1,604407,366..407,306
Managers and overseers290..290126,105..126,105
Accountants, clerks, &c.16711127831,01714,25945,276
Wage-earners11,868..11,8682,953,940..2,953,940
Totals13,92911114,0403,518,42814,2593,532,687

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.
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
1938-391,60429027811,86814,040
      
Salaries and Wages paid.
 £££££
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
1933-34135,28140,27216,282520,564712,399
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
1938-39407,366126,10545,2702,953,9403,532,687
      
Average Amount of Salary or Wages.
 £££££
1929-30278473165226236
1930-31259388171211221
1931-32195378164181189
1932-33156328136167169
1933-34151294124158160
1934-35151304130175172
1935-36171296123186184
1936-37192331135209208
1937-38229371159233234
1938-39254435163249252

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 1937 to 1939:—

Rate of Wages.Year.
1929.1931.1937.1938.1939.
Under 20s.16979123105167
20s. and under 25s.180180148172166
25s. and under 30s.10284537168
30s. and under 35s.258238125153186
35s. and under 40s.21716369109111
40s. and under 45s.1379177219254
45s. and under 50s.2202403975103
50s. and under 55s.145963877128
55s. and under 60s.555072147
60s. and under 65s.135534559174
65s. and under 70s.8022191842
70s. and under 75s.6880502453
75s. and under 80s.9166431017
80s. and under 85s.7997241,16111163
85s. and under 90s.88144929987102
90s. and under 95s.3192202781,5051,623
95s. and under 100s.423348236648727
100s. and under 105s.1,5281,5293,704406443
105s. and under 110s.347171577137192
110s. and under 115s.1,8041,1083374,5604,401
115s. and under 120s.1879260614915
120s. and under 130s.7413331789941,886
130s. and under 140s.31313153218567
140s. and under 160s.20311642133297
160s. and over77504163147
Number of employees9,4796,7137,80210,58912,879
Aggregate earnings during week£43,190£29,168£35,096£53,043£68,120
Average earnings during week£4 11s. 2d.£4 6s. 11d.£4 10s. 0d.£5 0s. 2d.£5 5s. 9d.

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 1937 the class 100s.-105s. contained more wage-earners than any other. In 1938 and 1939 the class 110s.-115s. was the modal group. A pronounced increase in the number of wage-earners for the 115s.-120s. and higher wage-groups is shown for 1939 in comparison with previous years.

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 1936-37, 1937-38, and 1938-39.

Month.1936.1937.1938.
April7,2228,26510,499
May7,6078,57210,902
June7,7268,82611,351
July7,7029,33111,544
August7,8619,55111,599
September7,9359,71611,824
October8,1009,97712,151
November8,09210,10712,353
December8,12310,15612,129
 1937.1938.1939.
January7,7049,87712,173
February7,79010,22312,394
March8,02510,51012,539

The absence of a seasonal decline in the winter months is a prominent feature of the statistics. A big uplift in the level of building, employment was in evidence for the year 1938-39. Progressive increases are shown for each of the months in 1938-39, with the exception of a slight fall in December, 1938, and January, 1939. The above survey shows that the employment level has risen from 7,222 in April, 1936, to 12,539 in March, 1939.

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.
 £££££
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
1938-3910,732,964278,543240,6922,053,87313,306,072

OPERATING COSTS IN RELATION TO VALUE OF WORK DONE.

Following is an analysis of operating costs 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.
 £££££
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
1938-393,532,6878,952,702451,13912,936,52813,306,072
      
Per Cent. of Total Value of Work done.
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.*
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—1.25
1933-3427.9066.875.39100.16—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
1938-3926.5567.283.3997.222.78

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 clone between 1929-30 and 1932-33 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 during the depression period is indicated by the averages quoted in a preceding table. A definite upward turn, however, is indicated by the figures for the last three years.

NEW BUILDINGS COMPLETED.

A classification of the new buildings included in the returns for the last five years is given in the following table:—

Year.Private Dwellings.Blocks of Flats.Business Premises.Other.Totals.
 Number.Number.Number.Number.Number.
1934-352,511343228043,671
1935-363,548774281,0255,078
1936-373,795884911,3745,748
1937-384,042815001,4346,057
1938-395,930954441,9568,425
Value.
 £££££
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
1938-395,930,910270,4401,821,0631,038,5219,060,934

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 for the last six years:—

Number of Booms.Number of Dwellings (excluding Blocks of Flats).
1933-34.1934-35.1935-36.1936-37.1937-38.1938-39.
 Number.Number.Number.Number.Number.Number.
One395690556046
Two538711074124106
Three88138185172175297
Four4477229199451,1561,927
Five5449721,5101,7501,7052,685
Six191360495506558695
Seven4892126171141110
Eight194864696933
Nine7141818157
Ten41316161711
Over ten6915192213
    Totals1,4462,5113,5483,7954,0425,930

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. This is clearly illustrated by the fact that during the years 1935-36, 1936-37, and 1938-39 the number of five-roomed dwellings erected exceeded the combined totals of the four- and six-roomed dwellings, while for 1937-38 the total of five-roomed dwellings just fell short of the combined totals of four- and six-roomed dwellings. Statistics of values follow:—

Number of Rooms.Value of Dwellings (excluding Blocks of Flats).
1933-34.1934-35.1935-36.1936-37.1937-38.1938-39.
 ££££££
One3,2004,8077,5345,0635,5914,832
Two8,21413,80119,34215,32725,78228,839
Three24,83339,83156,00066,78579,298184,832
Four196,527362,662507,732590,911895,3151,715,041
Five348,833654,4331,080,6151,332,7221,603,9312,786,587
Six103,794313,776475,698524,410626,613850,113
Seven56,937108,652164,591238,286216,884181,023
Eight27,41870,158100,592117,649138,34472,088
Nine9,77323,67032,40332,69634,79120,447
Ten7,57226,75836,94140,67645,68730,585
Over ten22,61318,95644,19469,08982,28955,923
    Totals869,7141,637,5642,531,6423,033,6143,754,5255,930,910

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.
1933-34.1934-35.1935-36.1936-37.1937-38.1938-39.
 ££££££
Per Dwelling.
One8286849293105
Two154160176207208272
Three282289303388453622
Four440502552625774890
Five6416737167629411,038
Six-8588729611,0361,1231,223
Seven1,1861,1811,3061,3931,5381,646
Eight1,4431,4641,6661,7052,0052,184
Nine1,3961,6911,8001,8162,3192,921
Ten1,8932,0582,3092,5422,6872,780
Over ten3,7692,1062,9463,6363,7404,302
Per Room.
One8286849293105
Two778088104104136
Three9496101129151207
Four110126138156194223
Five128135143152188208
Six143145160173187204
Seven169169187199220235
Eight180183208213251273
Nine155188200202258325
Ten189206231254269278

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, while a much more substantial increase has taken place during the last two years.

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, 1937-38, and 1938-39:—

City.1928-29.1937-38.1938-39.
Four Rooms.Five Rooms.Six Rooms.Four Rooms.Five Rooms.Six Rooms.Four Rooms.Five Rooms.Six Rooms.
Number of Dwellings.
Auckland12917255270345184477674168
Wellington1843589015219847365333117
Christchurch230208631641874818330554
Dunedin62160301201874114619738
          
Values.
 £££££££££
Auckland87,247137,40759,391223,590335,474193,752439,540721,566212,116
Wellington158,975379,038116,821146,188208,57163,176351,473378,314148,116
Christchurch159,000176,86764,667127,244163,84953,581150,081292,93967,564
Dunedin50,057154,37840,472103,452194,42754,396140,847212,97651,018
          
Average Value per Dwelling.
 £££££££££
Auckland6767991,0808289721,0539211,0711,263
Wellington8641,0591,2989021,0531,3449631,1361,266
Christchurch6918501,0267768761,1168209601,251
Dunedin8079651,3498621,0401,3279651,0811,343

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 Wellington, all centres report rises in the average value per dwelling for 1938-39 as compared with 1937-38. The most pronounced increases occurred in Auckland and Dunedin for the four-roomed dwellings, Auckland, Wellington, and Christchurch for the five-roomed dwellings, and Auckland 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 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.

Accounts and funds which were included in the Public Account during 1939-40 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, 1939.Receipts.*Credits.Payments.*Balance, 31st March, 1940.
* Excluding credits.
Consolidated Fund—£££££
  Ordinary Revenue2,539,85545,246,8588,945,33245,734,1872,052,526
  Deposits4,050,0163,258,292..3,462,2803,846,028
Public Works Fund—£££££
  General Purposes638,8749,888,5661,867,9219,238,4491,288,991
  Electric Supply15,9262,808,47059,7932,773,51550,887
  Electric Supply Sinking Fund10,321585,310..582,98312,648
Bank of New Zealand Shares1,859,375164,063..164,0631,859,375
Employment Promotion Fund207,544....207,544..
Land for Settlements905,783796,44924729,069973,163
Loans Redemption24,39976,946,301..76,632,386339,314
Main Highways164,7885,558,200259,8575,642,81580,173
Public Debt Repayment3,2631,892,377..1,878,21717,423
Remittances to London..8,445,700..8,445,700..
Reserve Fund1,272,49432,798571751,305,117
Social Security Fund..11,367,11859,58910,843,217523,901
State Coal-mines7,625371,9112,384300,61718,919
State Coal-mines Sinking Fund11,767....11,767..
State Forests52,725611,8036,348621,60842,920
War Expenses..8,059,515..7,106,135953,380
Working Railways270,0979,952,8352,997,3879,228,377994,555
Totals12,034,852185,986,57214,198,692183,662,10414,359,320

Of the total balances of the various accounts (£14,359,320) as at the 31st March, 1940, £3,149,695 represented cash, £733,901 imprests, and £10,475,724 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 £13,000,000 for the year 1939-40. The principal item was the transfer of £2,790,098, representing motor-vehicles taxation, from the Consolidated Fund to the Main Highways Account. Next in importance was the transfer of £2,287,826 from the Consolidated Fund to The War Expenses Account, this being the unexpended portion of the vote for Defence. An amount of £1,892,378 was transferred from the Consolidated Fund to the Public Debt Repayment Account in accordance with the scheme of debt reduction, while a transfer of £252,331 from the Consolidated Fund to the Loans Redemption Account was also for amortization of debt. Transfers from the Consolidated Fund to the Social Security Fund aggregated £1,809,367, consisting of a grant of £1,000,000 and the transfer of the 1938-39 surplus of £809,367.

On the other hand, the Consolidated Fund received a good deal of revenue from other accounts, the principal items being £1,189,931 from the Working Railways Account as interest on railway capital liability, and £164,63 by way of dividends first paid into the Bank of New Zealand Shares Account. Payments aggregating £285,160 were made from the Main Highways Account to other accounts or funds, and £81,162 was paid from the Land for Settlements Account to other accounts. A transfer of £585,131 from the Electric Supply Account was made to the Electric Supply Sinking Fund Account during 1939-40 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 1939-40, receipts under this heading amounted to approximately £215,000. 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 £290,000 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 1939-40 was approximately £765,000, 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 £7,270,000, 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 £76,600,000 must be made on this account from both receipts and payments in 1939-40.

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 1939-40, but both receipts and payments of the Remittances to London Account amounted to £8,445,700 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 1939-40 an aggregate of £3,258,292 receipts and £3,462,280 payments.

Including a small per contra item not already referred to (£8,000), and temporary transfers amounting to £50,000, the total deductions to be made from aggregate nominal receipts are approximately £108,500,000, and from payments £108,700,000, leaving net totals of £77,500,000 receipts and £75,000,000 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.
193684.184.47.242.242.5
1937110.4109.27.555.055.2
1938119.7118.312.757.557.3
1939132.4133.312.565.266.2
1940186.0183.714.277.575.0

The net totals would be still further reduced if only the net increase (£18,937,264 in 1939-40) 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 given in the following table. The preparation of this account, and of the State balance-sheet, for subsequent years has been discontinued until after the conclusion of the war.

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 revenue1,276,7701,393,0981,268,256
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..
  Other73,057369,766619,775
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 Departments1,457,2591,786,0491,921,456
  Interest on war and other unproductive debt2,953,5982,681,8852,763,452
  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

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 (£1,189,031 in 1939-40).

  2. Similar action in regard to post and telegraph revenue and expenditure from 1st April, 1928. In addition to interest on capital liability (£639,000 in 1939-40), the Consolidated Fund now (since 1931-32) receives Post and Telegraph Department profits. Receipts on this account during 1939-40 amounted to £169,724, of which £166,795 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 £500,009, and in 1934-35 £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 terms of sterling (£1,704,716 in 1939-40).

  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.

  7. The establishment of a Social Security Fund in 1939, out of which benefit payments (previously principal classes of pensions) are met. Transfers of £1,809,367 were made during 1939-40 from the Consolidated Fund to the Social Security Fund.

  8. The transfer of expenditure on Defence (from 1939 onward) to a separate account—the War Expenses Account.

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.
 £££
193123,068,93124,708,042—1,639,111*
193222,719,73324,860,552—2,140,819*
193322,568,52122,528,37940,142
193423,492,74924,202,027—709,278*
193526,126,09424,499,5951,626,499
193626,172,36825,890,568281,800
193731,147,18730,675,158472,029
193836,059,44335,248,621810,822
193936,582,04635,772,678809,368
194037,974,15937,654,820319,339

The Budget estimate of receipts of the Consolidated Fund for the year 1940-41 is £37,080,000 and the estimated payments £37,034,000, leaving an estimated surplus of £46,000. Included in the estimate of expenditure for the year 1940-41 is an amount of £3,200,000 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,
1938.1939.1940.
* This excludes receipts from employment-promotion, and in 1939-40, social-security and war taxation, which were not paid into the Consolidated Fund. For details of taxation receipts see Subsection B.
 £££
Taxation*31,662,50632,303,70932,808,888
Registration and other fees271,941290,104308,283
Marine163,578167,850159,456
Interest on Public Debt Redemption Fund463,866392,486445,556
Interest on railway capital liability632,797701,0641,189,031
Interest on post and telegraph capital liability590,000588,000639,000
Interest on other public moneys454,702445,896635,158
Reserve bank profits47,143195,811250,286
Post Office Savings-bank profits65,000..106,795
Post and Telegraph Department profits255,283..2,929
Tourist and health resorts117,945126,229114,963
National-endowment revenue154,319147,394395,489
Other territorial revenue290,964319,244
Departmental receipts759,754777,569701,642
Miscellaneous (including recoveries on account of expenditure of previous years)129,645126,690156,683
    Totals36,059,44336,582,04637,974,159

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, 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,
1938.1939.1940.

* Includes payments by way of subsidies in connection with employment promotion.

† From outbreak of war, expenditure under these headings has been charged to War Expenses Account.

Permanent appropriations—£££
  Civil List28,80230,12727,033
  Debt services—   
    Interest7,673,0717,500,5157,982,505
    Amortization1,742,4571,764,9822,155,568
    Administration and management49,88850,311330,068
    Payments on guaranteed loansCr. 24,633Cr. 4,864Cr. 2,513
  For education purposes99,540101,721..
  Transfers to Main Highways Account2,646,5322,852,1642,790,098
  Motor-spirits tax paid to borough councils163,827176,910182,170
  Exchange1,827,6781,422,0851,704,716
  Transfer to War Expenses Account....2,287,826
  Transfer to Reserve Fund Account853,897....
  Other559,418438,622385,132
      Totals, permanent appropriations15,620,47714,332,57317,842,603
    
Annual appropriations—   
  Legislative102,26898,791105,481
  Prime Minister's Department23,16724,64426,245
  Treasury41,02047,27149,211
  Customs126,624137,753158,390
  Land and Income Tax165,998135,106155,259
  Stamp Duties100,042105,53797,531
  Audit39,96039,45233,812
  Public Service Commissioner's Office9,91313,59013,454
  Internal Affairs509,582499,861518,400
  External Affairs241,640207,797208,213
  Printing and Stationery275,852302,016250,818
  Marine157,803179,406179,426
  Labour142,876134,7582,881,908*
  Native155,326122,933535,744
  Valuation52,49249,06948,503
  Electoral6,513114,64110,452
  Census and Statistics32,26033,93833,850
  Justice and Prisons336,958337,071279,463
  Crown Law Office7,5838,2798,401
  Police601,482607,390627,502
  Defence—   
    Naval760,529835,331169,139
    Army529,632706,753541,969
    Air313,652557,205215,504
  Maintenance of public works and services1,093,782724,2861,090,598
  Lands and Survey384,974300,241306,181
  Agriculture845,4191,078,426970,338
  Industries and Commerce, Tourist and Publicity385,545444,216350,884
  Scientific and Industrial Research130,057158,785157,049
  Mines31,06233,71674,485
  Transport63,16381,69983,063
  Health1,209,7411,362,7571,519,139
  Mental Hospitals394,454417,483303,753
  Education3,677,7494,097,5464,471,809
  Pensions6,466,6566,933,8192,016,811
  War and other pensions
  Social Security....1,000,000
  National Provident and Friendly Societies123,718133,959119,618
  Payment of deficit in Dairy Industry Account..276,850..
  Other services not provided for88,65297,730199,814
      Totals, annual appropriations19,628,14421,440,10519,812,217
      Grand totals35,248,62135,772,67837,654,820

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.

The decrease in 1939-40 under the heading of “Pensions" is due to the fact that benefits, replacing the principal classes of pensions, are now being met out of the Social Security Fund.

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.

‡ Includes premium on exchange (£365,625).

 ££££££££
19362,250,00058175,0171,148983,20436,31512,3833,458,125
19374,980,553..36,7235,1601,136,42197,479486,7046,743,040
19383,974,7262,00996,3431,8291,384,90081,67461,0215,602,502
19399,622,27969637,5231,0821,602,26788,51820,19011,372,555
19409,644,3211,21375,3461801,777,69280,561382,17011,961,483

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.

 ££££££££
19362,266,77510,7509016,670560,0024,0515,3052,863,643
19374,042,90130,510441,551,479530,120385,56660,4716,601,091
19387,121,4314,565....517,4563,3294657,647,246
193910,506,596......540,7313,47794,22511,145,029
194010,523,747....24,392550,683139,5932,81111,241,226

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 of above table are as follows:—

Year ended 31st March,Railways.Roads.Telegraph Extension.Development of Water-power.*Public Buildings.Lands and River Improvement, Irrigation, &c.Lands Settlement.Departmental and other.

* Including maintenance.

† Settlement of unemployed workers and Native-land settlement.

 ££££££££
1936258,012444,377195,380529,075346,879136,245218,367138,440
19371,019,094913,720232,512763,775654,90998,699204,335155,857
19382,412,9901,126,757312,2611,007,9661,234,548238,497565,492222,920
19393,798,0831,290,838575,9441,337,7842,086,294304,782838,380274,491
19404,165,4161,124,590416,7781,425,7181,795,220591,659804,518199,848

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 1939-40 is now given:—

 £
Public works, departmental147,461
Railways4,105,410
Public buildings951,094
Education buildings844,126
Lighthouses and harbour-works22,519
Development of tourist resorts24,892
Roads, &c.1,124,590
Telegraph extension416,778
Lands, miscellaneous172,526
Irrigation and water-supply416,437
Swamp-land drainage2,696
Settlement of unemployed workers440,698
Native land settlement357,820
Development of water-power1,425,718
Services not provided for4,976
Transfers to Land for Settlements Account2,811
Amortization of debt24,392
Charges and expenses of raising loans139,593
Interest550,683
    Total£11,241,226

In addition to the payments mentioned above, £585,131 out of the Electric Supply Account was utilized for the redemption before maturity of stock to the value of £560,788, while matured stock and advances were paid for out of the residue. New stock was issued during the year in place of that redeemed.

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, 1940. have been £152,781,280, spread over the various classes of public works as follows:—

Class.£
Immigration3,312,573
Public works, departmental3,748,800
Railways67,970,254
Roads27,441,350
Land-purchases2,148,248
Settlement of unemployed workers1,858,609
Development of mining879,715
Telegraph extension13,293,412
Public buildings17,795,337
Lighthouses, harbour-works, and defences1,390,991
Contingent defence1,389,449
Rates on Native lands68,672
Thermal springs14,600
Development of tourist resorts806,528
Lands improvement1,408,887
Swamp-land drainage105,565
Plant, material, and services134,826
Charges and expenses of raising loans3,965,916
Coal-mines10,835
Interest and sinking fund218,500
Irrigation and water-supply1,966,766
Motor-transport service33,635
Transfer to Main Highways Account1,226,000
Native land settlement1,539,621
Dairy industry loans46,125
    Total£152,781,280

The total receipts of the General Purposes Account to 31st March, 1940, were £154,070,270, of which £137,602,832 represented the proceeds of loans, and £14,555,000 transfers from the Consolidated Fund. The largest item in the residue of £1,912,438 was an amount of £506,820 in respect of sinking funds set free, next in importance being receipts from premium on exchange (£365,625). The balance of the account at 31st March, 1940, was £1,288,991.

LAND-SETTLEMENT ACCOUNTS.

Through the closing of several accounts and the merging of these in other accounts or funds, there now remains 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 settlers 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.1937-38.1938-39.1939-40.
 £££
Sales and capital receipts394,825290,786232,208
Rents and interest482,013449,064400,196
Sales of produce, live-stock, and miscellaneous99,279129,26897,856
Receipts from Hutt Valley Settlement lands80,69012,75542,106
Interest on investments8,1468,89324,051
Recoveries, &c.....32
    Totals1,064,953890,766796,449
    
Payments.£££
Administration, &c.266,520193,218178,209
Interest and other charges459,832447,430536,522
Charges on proceeds of sales of Crown lands154,47513,0389,682
Charges on proceeds of sales of national endowment lands1510..
Transfer of receipts from Hutt Valley Settlement lands....1,450
Transfer to Loans Redemption Account....3,206
    Totals880,842653,696729,069

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:—

  1. Working Railways Account.

  2. State Coal-mines Account.

  3. State Forests Account.

The receipts of these three accounts during the last three years were as follows:—

Item.Account.1937-38.1938-39.1939-40.
  £££
Railway revenueWorking Railways8,321,7688,894,4619,935,641
Contributions and subsidy to Railway Employees' Sick Benefit FundDitto8,0008,0008,000
Sale of coal and wood, rents, &c.State Coalmines269,118282,897345,215
Forests revenueState Forests144,055152,715159,187
Administration expenses recoveredState Forests1,2141,0211,451
Loan-moneyState Forests200,000270,000425,000
Interest receiptsVarious25,78112,01410,623
Recoveries on account of expenditure of previous yearsVarious2943,294461
Transfers from other accountsVarious....972
    Totals..8,970,2309,624,40210,886,550

Payments during the same three years were composed of the following amounts:—

 1937-38.1938-39.1939-40.
Out of appropriations—£££
  Working railways7,956,8008,990,8808,031,345
  State coal-mines317,788369,271349,707
  State forests281,138403,084553,684
Interest635,671704,0471,196,027
Management charges of consolidated stock263278..
Amortization of debt9,52411,707..
Transfers to other accounts16,45818,71221,839
Subsidy to Railway Employees' Sick Benefit Fund8,0008,0008,000
    Totals9,225,64210,506,03910,160,602

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.1937-38.1938-39.1939-40.
Receipts.
 £££
Registration levy448,854468,588..
Employment charge on wages3,027,4903,340,406..
Employment charge on other income1,628,6751,652,208..
Miscellaneous40,08261,260..
    Totals5,145,1015,522,462..
    
Payments.
 £££
Administration235,000299,985..
Grants and payments2,557,6735,402,381192,350
Loans41,76765,4078,585
Allowances1,397,452703,9576,609
Purchases of food, &c.7,5642,078..
    Totals4,239,4566,473,808207,544

In accordance with the provisions of the Social Security Act, 1938, the Employment Promotion Fund was deemed to be abolished on 30th September, 1939. Any moneys accruing to it after 1st April, 1939, were payable to the Social Security Fund.

SOCIAL SECURITY FUND.

The Social Security Fund was established as from the 1st April, 1939, under the authority of the Social Security Act of 1938. Receipts and payments of the fund during its first year of existence were as follows:—

 1939-40.
Receipts.£
Social Security charge8,860,920
Registration fee635,441
Penalty for late payment of fee32,075
Fines1,158
Miscellaneous receipts101
Transfers from Consolidated Fund1,809,367
Interest7,231
Receipts due to Employment Promotion Fund20,825
 £11,307,118
  
Payments.£
Administration expenses and emergency benefits535,899
Medical, hospital, &c., benefits1,056,699
Services not provided for86
Monetary benefits9,250,533
 £10,843,217

Fuller detail of payments under the various headings are given in Section XXV of this Year-Book.

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.1937-38.1938-39.1939-40.
Receipts.
 £££
Taxation2,646,5322,852,1642,790,098
Loan money1,676,8002,675,6002,607,889
Premium on exchange....121,875
Repayment of advances22,58825,80727,798
Interest5,4376,4408,873
Recoveries on account of expenditure of previous years479819102
Miscellaneous5249731,565
    Totals4,352,3605,561,8035,558,200
Payments.
 £££
Construction and maintenance of highways3,931,7364,998,7165,105,503
Subsidies to local authorities206,545209,093206,587
Advances to local authorities37,37413,54720,552
Commutation of Hutt Road fees24,50224,53623,503
Abolition of toll-gates1,4521,4881,510
Interest on transfers from Public Works Fund61,30061,30061,300
Amortization of debt99,992150,601223,860
Interest on temporary transfers1,521....
    Totals4,364,4225,459,2815,642,815

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 Highways Account to help to defray the cost of improving and maintaining roads. From the last-mentioned date all such moneys have been 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, and war taxation, which is paid direct into the War Expenses Account.

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 the figures relate to gross collections (including employment-promotion, social-security, and war taxation).

Year ended 31st March,Total.Per Head.
* Excluding social security and war taxation, the total is £82,898,888—equal to £20 1s. 8d. per head.
 ££ s. d.
193118,878,28512 12 0
193217,405,62211 9 4
193319,703,70312 17 7
193421,470,82713 18 4
193524,737,93915 18 4
193625,476,37216 5 6
193731,164,30219 14 10
193836,767,52523 1 3
193937,764,91223 8 9
1940*44,487,08527 4 8

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 1939-40 (£44,487,085) showed an increase of £6,722,173, or of 17.8 per cent. over the previous record established in 1938-39. Taxation for ordinary revenue purposes showed comparatively little movement, an increase of £505,178 being recorded as compared with the previous year.

Social-security taxation yielded £9,490,361 during 1939-40. This was £4,035,159 in excess of the 1938-39 yield of employment-promotion taxation, which it has now supplanted.

Special war taxation during the six months' war period ended 31st March, 1940, amounted to £2,181,836, approximately 60 per cent. of this amount being from special income-tax.

Including war and social-security taxation, taxes imposed directly on incomes produced £20,432,167 revenue in 1939-40, as compared with £14,296,109 in 1938-39, and £3,533,764 in 1929-30.

As a war measure, an Excess Profits Tax Act was passed in 1940, providing for the imposition of a special tax assessed on excess profits derived by the taxpayer during the income year 1940-41 and subsequent years covering the duration of the war.

The following table shows receipts under the various heads of taxation during the last five years:—

Head.Revenue for Year ended 31st March,
1936.1937.1938.1939.1940.
Consolidated Fund—£££££
  Customs revenue8,161,1619,499,25410,758,73310,650,4289,946,858
  Beer-duty715,042841,584978,4371,076,7961,378,999
  Motor-vehicles taxation2,124,1302,503,1112,838,7113,059,9892,997,441
  Land-tax458,8731,047,8771,038,0341,058,4991,019,084
  Income-tax4,581,3286,618,7169,078,7639,303,49510,271,352
  Death duties1,615,4791,725,1351,679,5991,817,7131,625,865
  Bank composition34,38914,288......
  Stamp duty on interest53Dr. 98......
  Duty on instruments277,441347,738392,829393,618367,890
  Racing taxation378,851503,655558,874661,443787,418
  Amusements-tax56,50770,56498,64692,99395,644
  Other stamps taxation477,028499,714508,267441,611590,485
  Film-hire tax60,65772,20982,37785,88293,117
  Sales-tax2,462,6023,044,6123,499,1313,55,6903,510,130
  Gold-export duty106,976108,793105,412100,011116,889
  Interest-tax43,82341,60240,79919912
  Mileage-tax residue575833,8945,3377,704
    Totals21,554,39726,939,33731,662,50632,303,71032,808,888
      
Employment- promotion taxation3,921,9754,224,9055,105,0195,461,202..
Social- security taxation—     
  Social-security charge........8,860,920
  Registration fee........635,441
    Totals3,921,9754,224,9055,105,0195,461,2029,496,361
      
War taxation—     
  Income-tax........1,299,895
  Death duties........134,450
  Customs duties........295,666
  Beer duty........113,261
  Gold-export duty........88,564
  Postage........250,000
    Total........2,181,836
    Total taxation receipts25,476,37231,164,30236,767,52537,764,91244,487,085
      
Taxation receipts per head of mean population—£ s. d.£ s. d.£ s. d.£ s. d.£ s. d.
  Ordinary (Consolidated Fund)13 15 517 1 419 17 220 1 020 1 8
  Employment promotion and social security2 10 12 13 63 4 13 7 95 16 3
  War........1 6 9
    Totals16 5 619 14 1023 1 323 8 927 4 8

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, sales-tax receipts, and special Customs duties for war purposes are not counted as ordinary Customs revenue, although collected by the Customs Department.

The following figures show Customs and excise revenue for the last five 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.
19368,161,161715,0428,876,20334.84
19379,499,254841,58410,340,83833.18
193810,758,733978,43711,737,17031.92
193910,650,4281,076,79611,727,22431.05
19409,946,8581,378,99911,325,85725.46

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, 1939, additional duties were imposed on certain items (including beer and tobacco), the additional revenue in this case is appropriated for war purposes, and paid direct into the War Expenses Account. 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—

  1. 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):

  2. All moneys received by the Crown under any Act in respect of the licensing of motor-vehicles.

The tire-tax was 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 upon 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 7/10 d. 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. During the depression period, several amounts of motor-spirits taxation were retained in the Consolidated Fund, while certain other amounts were paid out of the Highways Fund by way of subsidies and rebates on rates levied on rural land. Details are given on page 289 of this Year-Book.

By section 19 of the Finance Act, 1932-33 (No. 2), substituted later by section 4 of the Motor-vehicles Amendment Act, 1934-35, 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. Owing to the restrictions placed on the use of motor-spirits consequent upon war conditions, many petrol-driven vehicles are now using, wholly or in part, substitute fuels (producer-gas, &c). Normally such vehicles would be liable for mileage-tax; but, in order to encourage the use of these substitute fuels, they have been exempted by the Substitute Fuels Emergency Regulations dated 18th September, 1940.

Taxation receipts for main-highways purposes have been as follows during the last five 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.
1936431,89694,0711,596,4071,7562,124,1308.34
1937493,626139,7231,866,1863,5762,503,1118.03
1938563,358159,9282,108,7276,6982,838,7117.72
1939612,395150,3502,289,1208,1243,059,9898.10
1940619,676103,8482,262,27011,6472,997,4416.74

LAND AND INCOME TAX.

A brief history of the various changes in the rates of, and the law relating to, land-tax and income-tax between 1915 and 1939 is contained in the 1940 and previous issues of the Year-Book. The principal alterations which have since taken place since 1936 are as follows:—

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, superseded by the 1940 amendment, provides that taxpayers may be required to pay their income-tax by 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.

By the Land and Income Tax Amendment Act of 1940 all State trading Departments were made liable for the payment of income-tax, the special exemption in respect of children was extended to include children brought to New Zealand under any Government scheme and being supported by any taxpayer, unpaid land-tax once registered, remains a first charge on land until all arrears are paid, and a new scale of basic rates of income-tax was provided. The surcharge of 15 per cent. for war purposes was extended to cover the tax-year 1940-41.

Statistics of income-tax assessed for the tax-year 1938-39 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.”

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, when such land 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, if 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. Provision is made for relief in cases of hardship.

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 1/8000 d. 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, and whose duties include the care and control of a child or children; £50 deduction is allowed for each dependent child or grandchild under eighteen years of age, and also in respect of each child, brought to New Zealand under any Government scheme, 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, but with a maximum exemption of £150, 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 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.

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 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.

Income-tax is payable on the taxable balance—i.e., assessable income less exemptions—and is assessed at the following basic rates, which were laid down in the Land and Income Tax Amendment Act of 1940:—

Debentures issued by Companies and Local and Public Authorities.

  1. Where the income has been derived from debentures issued by a company on terms providing for the payment of income-tax by the company, the rate of tax is 8s. 9d. per £1.

  2. In other eases, where the income has been derived by a company or a public authority, the rate of tax is 12s. per £1. Where the income has been derived by any other taxpayer the rate of tax is 12s. per £1, increased by one-third thereof.

Companies and Public Authorities.

On income not included above, the rate of income-tax for every £1 of taxable income in the case of companies and public authorities is as follows:—

  1. Where the taxable income does not exceed £6,600: 2s. 6d., increased by 1/100 d. for every £1 of taxable income.

  2. Where the taxable income exceeds £6,600: 8s., increased by 1/100 d. for every £1 of the taxable income, in excess of £6,600, but so as not to exceed in any case the rate of 8s. 9d. per £1.

Other Taxpayers.

On all income not included above, the rate of income-tax is as follows, an addition of one-third being made in the case of unearned income: On so much of the taxable income as does not exceed £100, the rate of tax per £1 is 2s. 6d. For each succeeding £100 or part thereof the rate of tax increases by 3d., until for income in excess of £3,800 a maximum rate of 12s. is reached.

Legislative authority is given in the Land and Income Tax Amendment Act of 1940 for income-tax to be assessed for any year at the basic rates specified, any change required being in the form of an addition or deduction of a certain percentage.

In order to obtain additional revenue for war purposes, an addition of 15 per cent. to the amount of tax assessed was made during 1939-40. and a similar surcharge is being made in respect of the 1940-41 assessment. Revenue from this source is paid direct into the War Expenses Account.

As mentioned previously, statistics of income-tax assessed for the tax-year 1938-39 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, increased all rates of estate, succession, and gift duty by one-third, for the provision of war finance. The increase in the rate of duty applied to the estates of all persons dying after the 20th September, 1939, and, in so far as it related to gift duty, applied to all gifts made subsequent to 20th September, 1939.

Part IV of the Finance Act, 1940, repealed the provisions of the War Expenses Act, 1939, mentioned above, and established new increased rates for all classes of death duties. Section 8 of the same Act provided for all revenue accruing from death duties to be paid direct into the War Expenses Account as from 31st March, 1940.

Provision was also made for the exemption from death duties and gift duty of gifts to the Government for war purposes.

The net revenue paid into the Consolidated Fund 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.
* Does not include special taxation for war purposes.
 ££££
19361,191,806319,067104,6061,615,479
19371,270,090346,157108,8881,725,135
19381,220,584355,899103,1161,679,599
19391,373,187329,495115,0311,817,713
19401,104,593339,111182,1611,625,865*

ESTATE DUTY.

When the final balance of the dutiable estate of a deceased person, estimated as at the date of his death, exceeds £200, 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, but 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 ranging from 1⅕, per cent. on estates not exceeding £2,000 in value, to 30 per cent. on estates exceeding £100,000 in value.

The War Expenses Act of 1939 increased all rates of estate duty by one-third, but Part IV of the Finance Act, 1940, provided a new scale of duties which is as follows:—

Final Balance of Estate.Rate

* Plus additional 1 per cent. for every £500 or fraction thereof in excess of £500.

† Plus additional ½ per cent. for every £1,000 or fraction thereof in excess of £7,000.

‡ Plus additional ½ per cent. for every £1,000 or fraction thereof in excess of £31,000.

§ Plus additional 1/10 per cent. for every £1,000 or fraction thereof in excess of £70,000.

 £ £per Cent.
 Upto200Nil
Over200to5001
Over500to5,0001*
Over5,000to6,00011
Over6,000to7,00012
Over7,000to31,00012
Over31,000to70,00024
Over70,000to100,00037§
Over100,000  40

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 wars of 1914-18 and 1939- is allowed a £5,000 exemption in addition to the amounts otherwise provided.

The rates of duty vary according to the degree of relationship of the beneficiary to the deceased person. Part III of the Finance Act, 1939, effected a general increase in the rates, which had remained unaltered since 1920, while all rates were increased further by the War Expenses Act, 1939, and later still, further increased by the Finance Act, 1940.

The scales of duties as outlined in the Finance Act, 1940, and operative as from 30th June, 1940, are as follows:—

  1. Wife.—The rate varies from 2 per cent. for amounts exceeding £5,000 but not exceeding £6,000, to 12 9/10 per cent. for amounts exceeding £70,000.

  2. Husband.—The rate varies from 2 per cent. for amounts exceeding £500 but not exceeding £2,000 to 16 3/5 per cent. for amounts exceeding £59,000.

  3. Children, &c.—The rate varies from 1 per cent. for amounts exceeding £500 but not exceeding £1,000, to 16 per cent. for amounts exceeding £61,000,

  4. Parents, Brothers. Sisters, &c.—The rate varies from 3 per cent. for amounts exceeding £200 but not exceeding £500, to 21 per cent. for amounts exceeding £61,000.

  5. Other Relatives.—The rate varies from 6 per cent. for amounts exceeding £200 but not exceeding £500, to 22 3/5 per cent. for amounts exceeding £57,000.

  6. Other Cases.—The rate varies from 10 per cent. for amounts exceeding £200 but not exceeding £500, to 31 9/10 per cent. for amounts exceeding £43,000.

In all the above cases provision is made to allow for a reduction in the amount of succession duty payable, so that it will not exceed the difference between the estate duty payable in respect of such succession, and percentages of the succession ranging from 50 in the case of wife or husband to 00 in cases other than relatives.

In cases where the successor is a child of the deceased and is under the age of twenty-one years at the time of death of the deceased, no succession duty is payable on amounts up to £1,000, and in cases of successions exceeding that amount, the full amount of duty is payable only in cases where the balance-will not be reduced below £1,000.

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 (since 30th June, 1940) is based on the following scale:—

Value of Gift.Rate of Duty. Per Cent.
Over £500 to £1,0005
Over £1,000 to £5,0009
Over £5,000 to £10,00015
Over £10,000 to £20,00020
Over £20,00025

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,
1936.1937.1938.1939.1940.
 £££££
Adhesive stamps149,575154,527139,94762,992210,771
Duty on instruments277,441347,738392,829393,618367,890
Impressed stamps197,637211,150227,326233,431229,739
Stamp duty on interest53Dr. 98......
Licenses to companies87,78187,77189,40490,45190,729
Sharebrokers' licenses1,9802,0682,0921,8621,770
Bank composition34,38914,288......
Racing taxation378,851503,655558,874661,443787,418
Amusements-tax56,50770,56498,64692,99395,044
Lottery duty17,76220,15320,88320,38824,083
Oversea-passenger duty20,68522,14826,67330,59825,709
Mortgagees' indemnity fees1,6041,8851,9251,8431,667
Miscellaneous412174516
    Totals1,224,2691,435,8611,558,6161,589,6641,841,436

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,
1936.1937.1938.1939.1940.
* Retained by the clubs.
Number of racing-days320320320320319
Number of races2,4922,4972,5062,5172,499
 £££££
Amount of stakes308,112443,538527,545550,054563,697
Totalizator investments4,645,9686,220,5207,201,8207,981,4428,139,914
Amount paid in dividends3,835,0735,136,2485,945,3656,589,6296,721,663
Government taxes—     
  On totalizator investments185,838248,821288,073319,258406,996
  On dividends203,173272,057314,992349,097356,023
  On stakes3,6814,4365,2755,5005,637
    Totals392,692525,314608,340673,855768,656
      
Amount of totalizator investments retained by clubs394,908528,744612,155678,423610,493
Unpaid fractions*26,97634,65041,23545,03544,739
Refunds of taxation granted to clubs42,71844,75247,05648,39046,577

For the financial year ended the 31st March, 1940, receipts from racing taxation amounted to £787,418, but £46,738 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 not 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.
 £
1931105,936
193274,763
193353,564
193448,715
193549,526
193656,507
193770,564
193898,646
193992,993
194095,644

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 £60,057 in 1935-36, £72,209 in 1936-37. £82,377 in 1937-38, £85,882 in 1938-39, and £93,117 in 1939-40.

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 salaries 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; women of sixty upwards; men of sixty-five 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.

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.

SOCIAL-SECURITY TAXATION.

The Social Security Act, 1938 provided for the establishment of a Social Security Fund with special taxation (as from 1st April, 1940) superseding 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 over sixteen years of age 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 liable for social-security taxation. Certain exemptions are provided for, and this matter is dealt with more fully in Section XXV.

Social-security taxation yielded £9,490,361 in 1939-40, towards which total the tax on salaries and wages provided £5,540,746, tax on company income £658,373, tax on other income £2,661,801, and receipts from registration fees £635,441.

NATIONAL-SECURITY TAXATION.

National-security taxation was imposed by the Finance Act, 1940, and came into operation as from the 21st July, 1940. The special taxation which is levied at the same rate (1d. in every 1s. 8d. or part thereof) and in respect of the same income as the social-security charge is paid direct into the War Expenses Account. There is, however, no special registration fee in connection with the national-security taxation.

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; 1938-39, £3,555,696; and 1939-40, £3,510,130.

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-spirits), which are subject to special taxation.

Monthly collections of sales-tax to date are as follows:—

 1933.1934.1935.1936.1937.1938.1939.1940.*
* Includes commencing with July, 1940, the amount credited to the War Expenses Account, £27,565 in July, £250,734 in August, £287,329 in September, and £297,715 in October, 1940.
Month.££££££££
Jan...187,649211,137233,103294,431317,598330,294302,604
Feb.10,785143,631157,653186,875194,624230,525254,484229,559
March27,469162,416179,568206,101296,637277,690314,707259,246
April191,091168,313191,007234,491295,082292,281310,597284,185
May119,967165,007194,685233,493309,796273,087310,040330,843
June136,733160,877196,571241,154283,094285,738337,492327,482
July129,951168,662189,657232,237278,968295,664285,530340,858
Aug134,290185,037201,440252,621301,002287,519271,332535,421
Sept151,796172,945200,300254,669300,714296,020293,848576,075
Oct.158,073194,397219,537266,710305,769308,579321,125595,813
Nov.164,829205,256223,808272,543307,824304,381291,844..
Dec.166,847202,383223,970277,375311,047329,356307,486..

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 foregoing 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.
 £££££££
1936728,575909,836120,423323,652251,673117,2742,467,660
1937911,3011,144,162146,300405,979291,667134,0803,050,985
19381,039,1521,350,603167,458471,063316,120151,0523,519,109
19391,083,4891,379,186171,188458,826311,619144,1093,572,110
19401,081,6491,309,586168,269481,571330,372139,8783,520,703

Part III of the Finance Act, 1940, increased the rate of sales-tax to 10 per cent. as from the 28th June, 1940, and reduced the rate of discount for prompt payment to 2½ per cent. The extra revenue accruing as a result of the increased rate of sales-tax is paid direct into the War Expenses Account.

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 five years ended 31st March, 1939, was as follows:—

Year ended 31st March,Rates.Licenses and other Taxes.Total.Per Head of Population.
 ££££ s. d.
19355,511,442530,5916,042,0333 17 9
19365,585,855576,0376,161,8923 18 9
19375,994,353630,6276,624,9804 3 11
19386,541,354693,1847,234,5384 10 9
19396,971,550759,2287,730,7784 15 11

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 value being 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.

For the purpose of helping to finance the present war effort, the National Savings Act, 1940, has been passed, providing for the investment of moneys in National Savings Bonds or in National Savings-bank Accounts. These investments, which are approved trustee securities, are for a definite term (five years in the case of bonds, and up to the 30th June, 1945, in the case of savings accounts), and are interest-bearing at the rate of 3 per cent. Bonds are issued in three denominations—£1, £10, and £100.

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 (£158 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 £22,850,981—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.
 ££ s. d.
1921206,324,319162 15 7
1922219,054,385168 6 10
1923218,953,324165 4 2
1924221,616,361164 8 5
1925227,814,647165 2 11
1920238,855,478109 8 6
1927245,850,889170 19 0
1928251,396,252172 18 5
1929264,191,983179 11 9
1930267,383,343179 11 0
1931276,033,358182 12 0
1932281,942,800184 16 3
1933282,622,658183 15 2
1934302,791,996195 6 8
1935280,581,217179 14 11
1936282,561,098179 10 6
1937287,670,200181 4 10
1938290,201,342180 17 5
1939303,970,272187 1 10
1940322,907,536196 15 9

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 3ist 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, page 003 of 1940 Year Book.

† Including £5,379,105 raised in January, 1929, for expenditure in 1929-30.

‡ Increase mainly floating debt, paid off in 1934-35.

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 1914-18 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 1940, 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, 1940121,736,781
At 31st March, 1940£322,907,536

An amount of £3,526,640 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 Acts of 1937 and 1939, is not included in the public debt as at 31st March, 1940.

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, 1940, was £44,937,956, as against which accumulated sinking funds amounted to £463,335. Of the guaranteed loan total of £44,937,956, £44,201,150 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 1939-40 aggregated £651 but as a set-off against this amount credits were received amounting to £3,164, the result being a net credit of £2,513.

As at 31st March, 1939, 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 £7,391,844. 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 increase between 31st March, 1920, and 31st March, 1940, was principally in respect of the ordinary and State advances debt, the 1914-18 war and discharged soldiers sections showing substantial reductions. Debt incurred in connection with the present war accounted for £3,086,055 of the increase. The total of 1914-18 war loans amounted originally to £82,245,673, of which approximately £21,500,000 had been redeemed to the 31st March, 1940.

Class.Total.Per Head.
1920.1940.1920.1940.
 £££ s. d.£ s. d.
Ordinary95,483,658219,913,81077 3 11134 0 5
War, 1914-1880,089,02560,954,24064 15 037 2 11
Discharged soldiers11,120,0004,810,5478 19 92 18 8
War, 1939-..3,086,055..1 17 7
State advances14,478,07234,142,87811 14 120 16 2
    Totals201,170,755322,907,536162 12 9196 15 9

A more detailed allocation of the debt as at the 31st March, 1940, is now given:—

 £
* Including £3,086,055 of debt incurred during 1939-40 in respect of the present war.
Railways72,452,539
Hydro-electric schemes14,171,199
Post and telegraph services15,968,317
Public buildings, schools, and sites17,975,954
Roads and highways38,415,108
Harbours and lighthouses2,163,657
State forests2,838,958
Housing11,558,945
Land settlement and improvement26,968,914
Shares in Bank of New Zealand875,000
Shares in Reserve Bank of New Zealand1,628,669
Investment in State Advances Corporation38,048,983
Share in Nauru and Ocean Island phosphates284,405
Development of mining1,080,438
Tourist resorts746,202
Immigration3,317,292
War and defence*65,917,296
Miscellaneous assets and services7,572,294
Cash and Investments in hand923,366
Total£322,907,536

MOVEMENT IN PUBLIC DEBT DURING 1939-40.

During the year 1939-40 additional debt to the amount of £21,615,965 was incurred for the following purposes:—

 £
Public works9,365,821
Electric supply839,238
Main highways2,607,889
State coal-mines25,000
State forests400,000
War expenses3,086,055
Housing5,100,000
Costs, charges, &c., of conversions and renewals190,473
Raised for redemption but not used1,489

As an offset to the above increases, debt aggregating £2,678,701 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 £18,937,264 in the public debt, long-term debt being increased by £10,057,264 and the internal floating debt increased by £8,880,000.

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 interest on the dissented portion was made subject to an interest-tax of 33½ 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 A per cent. of the total.

The successful conversion of £5,000,000 5-per-cent. debt into 3A-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-eent. stock, which was converted to 3A-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-eent. 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 fell 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 was held by New Zealand institutions, and other arrangements were made for its conversion.

Details of the terms of issue, &c., may be found on page 602 of the 1940 issue of the Year-Book.

WAR LOAN, 1953.

A prospectus providing for the raising of an internal war loan, expected to yield a minimum of £8,000,000 to be paid into the War Expenses Account, was issued at the end of September, 1940. Applications for stock, which was issued at £100 per cent., were required to be lodged by 8th November, 1940; £30 per cent. being payable on application, £40 per cent. on 16th December, 1940, and the remaining £30 per cent. on 25th March, 1941.

Stock of this issue is non-interest bearing up to the 1st October, 1943, thereafter bearing interest at the rate of 2½ per cent. The maturity date of this stock is 1st October, 1953, but stock issued to a person will be accepted at par at anytime before maturity in payment of death duties in respect of that person's estate.

The minimum basis of subscription was an amount equivalent to the amount of income-tax payable in respect of income derived during the year ended 31st March, 1939, decreased by £50 in the case of individuals, and £70 in the case of companies. The minimum subscription was to be calculated to the nearest £10, and tax-free income was treated as having been subject to income taxation for the purpose of ascertaining this minimum.

Persons who prior to the issue of the prospectus had made interest-free loans to the War Expenses Account were offered an equal nominal amount of stock of this issue, while persons who had made gifts to the War Expenses Account were allowed to reduce their contributions to this loan by the amount of such gift.

DOMICILE OF DEBT.

Between the 31st March, 1914, and the 31st March, 1940, the amount of New Zealand's public debt domiciled in London increased from 78½ to 158 million pounds, while that domiciled in New Zealand increased from 17 to 164 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.
1931154,546,9414,175,350117,311,06755.991.5142.50
1932159,641,8553,914,550118,386,39556.621.3941.99
1933161,400,7032,868,710118,353,54557.111.0141.88
1934160,908,1052,908,150138,975,74153.140.9645.90
1935160,972,2302,183,550117,425,43757.370.7841.85
1936158,711,9301,592,650122,256,51856170.5643.27
1937156,737,016891,900130,041,28454.480.3145.21
1938156,857,016882,600132,461,72654.050.3145.64
1939156,853,016879,600146,237,65651.600.2948.11
1940157,863,270879,600164,164,66648.890.2750.84

As a result of operations during 1939-40 the debt domiciled in New Zealand recorded an increase of £17,927,010, while that domiciled in London recorded an increase of £1,010,254. Debt domiciled in Australia remained at the same level as in the previous year.

MATURITY YEARS OF DEBT.

The maturity years of the debt outstanding at the 31st March, 1940, are shown in the following statement, which distinguishes between the various countries of domicile.

Maturity Date.Due inTotal Debt.
From 1st April.To 31st MarchLondon.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.

‡ Interest-free loans are for various periods, the majority being for the duration of the war and six months thereafter.

§ Funded debt — repayable by instalments.

  £££££
Overdue......4,415..4,415
Treasury bills......22,895,0002,510,00025,405,000
Treasury notes..1,080,000......1,080,000
1925*19402,090,909......2,090,909
1938*1942....2,805,515195,7003,001,215
1939*1942....4,613,505..4,613,505
1939*1943....13,678,870..13,678,870
194019411,098,445..500,005..1,598,450
1940194516,000,000......16,000,000
19411942..17,30037,000..54,300
1942*1946....9,209,700631,1559,840,855
1942*196310,505,989..378,039..10,884,628
1943*19447,339,656......7,339,656
194419457,780,408..142,500..7,922,908
1945194022,543,590..2,500..22,546,090
19461947....435,8291,227,7431,663,572
1946*1950....8,320,320642,8858,963,205
1947194811,341,60983,3002,476,6501,501,60015,403,159
1947*195819,225,465......19,225,405
19481949....4,463,19044,0004,507,190
1948*19545,000,000......5,000,000
194919507,500,000......7,500,000
1949*1953....12,484,105..32,484,105
195019511,250,000779,000250,000..2,279,000
1952*195012,000,000..7,974,5101,524,26521,498,775
1952*1957....6,808,7952,315,7659,124,560
19541959....5,199,110339,0005,538,110
19551956....750461,700462,450
1955*19613,989,100......3,989,100
1956195712,900..2,7102,212,0952,227,705
1956*19725,000,000......5,000,000
19571958....10,55021,029,31821,039,868
19581959....3,50016,145,66816,149,168
19591960......9,309,2509,309,250
Interest-free ..5,000..1,376,854..1,381,854
§1946577,446§......577,446§
§195823,522,753§......23,522,753§
  Totals..157,863,270879,600104,074,52260,090,144322,907,536

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.
1935.1936.1937.1938.1939.1935.1936.1937.1938.1939.
* Redeemed or convened.
  ££££££££££
31945101 1/16101⅜98⅜97 7/1692 5/169796¼93 9/1685 15/1681½
31952-55..99⅜97⅞89 15/1683¼..9488⅛74½69 7/16
1940104½103¼101 13/16101 7/16100¾98½99½98 13/1697 11/1690½
41943-63106 7/16104½102⅜100⅜93 5/16100 11/1699½98 9/1683 7/1677 9/16
1944110 3/16108½105 7/16103 15/16100½104 5/16102100⅜94¼89 15/16
1945110 3/16108⅝105 5/16103 15/16100½104 5/16102100⅜94⅛89 15/16
1947111 7/16109 1/16106 9/16104 7/1099105 1/1610310192⅜88⅜
1948-58111 11/16109¾106 1/10103¾98½105⅞103100¾90⅛84⅞
51935-45101½****100¼****
51946115¼113 7/16109 1/16107 7/16102 3/16108 15/16105103 7/169791 1/16
51949117 3/16114¼112 13/16109 7/16102 7/16111106¼105¼97½90⅞
61936-51105⅞****101½****

INTEREST.

Of the public debt outstanding at 31st March, 1932, 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, 194o. bearing interest at a rate of 4 per cent. or under was £221,303,575, or 09 per cent. of the total. The rates of interest on the debt as at the 31st March, 1940, were as given below:—

Rate of Interest.Debt maturing in—Total.Gross Annual Interest Charge.
London.Australia.New Zealand.
* Funded debt.
Per cent—£££££
Overdue....1,6151,615..
Free5,000..1,376,8551,381,855..
1....5,000,0005,000,00050,000
....2,310,0002,310,00028,875
2....5,000,0005,000,000100,000
....12,429,00012,429,000310,725
98,445....98,4452,707
321,670,380..43,703,47365,373,8531,961,215
....500,000500,00016,250
24,989,100..20,630,82545,619,9251,596,696
....3,381,2153,381,215126,795
411,505,989..68,701,67880,207,6673,208,306
48,538,54617,3002,20548,558,0512,185,112
£4 19s. 5.88d.*24,100,200....24,100,2001,193,230
525,705,61083,3001,127,20026,916,1101,345,805
1,250,000779,0006002,029,600111,628
Totals157,863,270879,600164,164,666322,907,53612,237,344

The total annual amount of interest payable on the public debt as at the 31st March, 1940, including the funded debt (payments in respect of which are at present in abeyance), is £12,237,344, which gives an average rate of £3 15s. 10d. per £100. The total interest and the average rate per cent. payable on the debt domiciled in the various markets are:—

 Total.Average Rate.
 ££ s. d.
London (sterling)6,719,1694 5 1
Australia47,7895 8 8
New Zealand5,470,3863 6 8

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.
 ££ s. d.
19216,807,2175 8 8
19227,390,8645 15 2
19237,904,2606 0 7
19247,877,5975 18 1
19257,865,2625 15 8
19268,129,7995 16 10
19278,450,7945 18 11
19288,397,0745 16 4
19298,675,2205 18 10
19309,136,3016 3 8
19319,266,6766 3 8
19329,035,0255 19 1
19338,498,6815 11 1
19348,836,4675 14 7
19358,023,8135 3 3
19367,730,1944 18 9
19377,604,4694 16 4
19387,673,0714 16 3
19397,500,5154 13 1
19407,982,5054 17 9

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 coining 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, 1940, totalled £10,914,864, of which £2,932,359 was recovered from other accounts, &c. 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 (£1,189,031), interest on post and telegraph capital liability (£639,000), and interest earned on the investment of public moneys (£635,158).

Of the gross interest payments from the Consolidated Fund during 1939-40, £5,526,152 was paid in London and £143,649 was paid in New Zealand, in respect of debt domiciled in London. A gross interest payment of £47,799 was made in Australia in respect of debt domiciled in that country, while £5,197,264 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 £330,068 in 1939-40, and payments on guaranteed loans showed a credit of £2,513. 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 £11,225,045 (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 latter include funded debt, loans raised for State advances, and loans raised in respect of electric supply. Of the total grass 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, 1940, was £249,344,652.

To the 31st March, 1940, securities of a nominal value of £20,312,083 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 five 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, 1940) 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 £17,423 at 31st March, 1940.

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.
½ 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.
 £££££££
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
1940445,5561,245,421645,1851,7711,892,3771,878,2171,878,217

The funds in the Public Debt Repayment Account are not the only source from which debt-redemptions are made. Other accounts provided £800,484 for redemption purposes in 1939-40.

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, 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.

At the date of suspension, total payments amounted to £15,067,470 of which £11,635,405 represented interest payments and £3,431,965 (including the £200,000 additional paid off Naval Defence Loan) reduction of principal, leaving the balance of the funded debt outstanding £24,100,199.

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.
 £
19312,313,673
19322,435,117
19332,509,545
19342,647,985
19352,657,832
19362,592,458
19372,715,960
1938364,668
1939389,166
1940404,166

Payments to sinking funds during the year ended 31st March, 1940, totalled £601,119 and the funds earned £13,786 by way of interest. Sinking-fund holdings to the amount of £599,880 were utilized for redemption purposes 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, 1940, were as follows:—

 £
Westport Harbour391,516
Electric supply12,648
Samoan loan2
Total£404,166

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.
 ££ s. d.
1921197,561,222155 17 4
1922208,241,121160 0 8
1923207,024,048156 4 2
1924208,595,743154 15 3
1925214,287,128155 6 9
1926236,581,216167 16 3
1927243,407,349169 5 1
1928248,740,736171 1 11
1929256,652,371174 9 3
1930265,051,920177 19 8
1931273,715,710181 1 4
1932279,507,683183 4 4
1933280,113,413182 2 6
1934300,144,011193 12 6
1935277,923,385178 0 10
1936279,968,640177 17 7
1937284,952,179179 10 7
1938289,833,488180 12 10
1939303,579,999186 17 0
1940322,501,881196 10 9

In general the net indebtedness shown in the foregoing table is merely the balance left 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 endedAmount.
31st March,£
192125
1922157,870
192350,020
192446,590
192564,680
192819,750
19295,383,051
19313,975
19372,061
19383,186
19391,107
19401,489

In computing the net indebtedness, no allowance is made for the fact that a portion of the debt is actually hold 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: 1936, £1,801,418; 1937, £810,879; 1938, £3,122,237; 1939, £4,495,421; and 1940, £4,809,199.

The Minister of Finance also holds stock—amounting to £30,390,750 on the 31st March, 1940—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 had at the 31st March, 1939, a gross indebtedness of £70,161,721, and if this amount be added to the gross debt of the General Government at 31st March, 1939 (£303,970,272) the aggregate becomes £374,131,993. Allowing for duplication on account of outstanding loans to local authorities from the State Advances Corporation and the Main Highways Board, and inscribed debt under the Government Loans to Local Bodies Act, the total is reduced to approximately £307,000,000 which represents a rate of approximately £225 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, 1939, totalled £1,955,047.

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. 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 6th 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, 1910. were valued at £44,201,150, a decrease of £320,340 as compared with the position at 31st March, 1939. The contingent liability to the Crown now stands at: £9,821,635, a reduction of £326,579, due mainly to orders for reduction of mortgages in terms of the Mortgagors and Lessees Rehabilitation Act. The general reserve fund at 31st March, 1940. amounted to £3,613,574, and, in addition, there were specific reserves amounting to £270,000, making the total reserves £3,883,574, as compared with £3,717,438 at 31st March, 1939.

Mortgages and accrued interest at 31st March, 1940, totalled £51,178,024; advances on current account, £502,830; Government and local authority securities, £6,435,734; cash in bank, &c., £470,022; and other assets, £1,121,557.

The total number of loans under administration at 31st March. 1940, was 68,503, briefly classified into—

 TotalTotal Amount.
 Number.£
Farm (including current account)21,70425,320,792
Residential44,77826,067,408
Local authority2,0816,369,147

In addition, the. Corporation is responsible for the management of approximately 11,000 tenancies, the bulk of which are in respect of houses erected under the Government's housing programme, while the Rural Intermediate Credit system of stock loans, which is under the control of the Hoard of the Corporation, involves the administration and supervision of approximately 900 accounts. These matters-are referred to at a later stage of this section.

The disposition and appropriation of profits in respect of operations during the year ended 31st March, 1910, 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 earnings2,436,5625 7 10100.00..
  Less capital charges—Interest1,638,1583 12 667.23..
Gross profits798,4041 15 432.77100.00
  Less—    
    Management expenses and depreciation of fixed assets258,1970 11 510.6032.34
    Reserve for losses40,0000 1 91.645.01
    Surplus for year 1939-40500,2071 2 220.5362.65
    Less Income and Social-security Tax reserve50,000   
Surplus due to Crown450,207   

The adjustment of mortgage accounts referred to later and the improvement in prices for farm-produce in recent years is reflected in the payment of instalments by the Corporation's mortgagors. In 1933-34 only 79 per cent. of the net amount of interest due was paid, whereas, in the latest year (1939-40), approximately 99 per cent. was actually received by the Corporation.

NEW BUSINESS.

A summary of loan operations (new business) is given in the following table:—

Loans Authorized.Year ended March, 1939.Year ended March, 1940.Total, 1st August, 1935, to 31st March, 1940.
Number.Value.Number.Value.Number.Value.
Urban securities— £ £ £
  Refinance801505,99522,3153,8082,346,532
  Other purposes768443,92815762,0611,9131,201,183
  Erection of dwellings2,1232,062,2751,6171,540,1306,2725,458,276
    Total urban3,6923,012,1981,7761,604,50611,9939,005,991
       
Rural securities—      
  Refinance331616,887913,3202,4395,568,192
  Other purposes689631,306326250,5421,5081,579,548
    Total rural1,0201,248,193335263,8623,9477,147,740
       
Grand totals4,7124,260,3912,1111,868,36815,94016,153,731

The lending-rate of the Corporation for loans on mortgage was maintained at 4⅛ per cent. during 1939-40. 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.
 £ s. d.
10 years12 6 2
15 years9 0 2
20 years7 7 10
25 years6 9 0
30 years5 16 10
35 years5 8 6
40 years5 2 6
45 years4 18 2

The terms of lending for home-building were varied during the year 1937-38 to encourage the erection of further houses. New provisions were—

  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. Ownership of an existing dwelling was to disqualify an applicant for a special loan.

  7. 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.

  8. 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.

SOLDIERS FINANCIAL ASSISTANCE BOARD.

In January, 1940, the Government appointed a Board consisting of seven members to administer funds to be made available for the assistance of soldiers who are proceeding overseas, and who are unable to meet essential commitments from their own resources. Arrangements were made for the clerical and investigation work in connection with applications for assistance to be undertaken by the staff of the State Advances Corporation, which is represented on the Board. By utilizing the services of the Corporation the Board was able to commence operations immediately, and some hundreds of applications have already been dealt with.

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 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. It should be noted that the borrowers' rights under this provision lapsed 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 provided 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 losses written off by the Corporation following adjustments by the Court of Review and Commissions appointed under the Act were approximately as follows:—

 £
Principal written off1,106,965
Arrears of interest written off625,878
Adjustable debts32,945
    Total£1,765,788

The adjustable debts, although not secured under the Corporation's mortgages, are repayable in terms of orders issued by the Court of Review or Commissions, and it is anticipated that the bulk of this sum will ultimately be recovered, thus reducing the Corporation's loss to £1,732,843.

The following table, which relates to the position of advances to settlers and workers at June, 1935, is indicative of the financial stresses experienced 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 £17,9132,589. 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 Date.
50 per cent. or over1,67996,12062151
25 per cent., but under 501,804214,9001,217143
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
Totals5,1651,2404,9425,9048422,637
Grand totals13,2242,53818,96512,6038912,663

REVERTED SECURITIES.

The number of urban and suburban properties administered by the Corporation as mortgagee-in-possession fell from 4,082 at 31st March, 1939, to 4,058 at 31st March, 1940. The aggregate book value of these securities was £3,542,078.

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. 1940, was £299,857, as compared with £303,326 at 31st March, 1939.

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 1939-40. The total net assets at 30th June, 1940, amounted to £529,055. Included in this figure are advances to associations under Part II of the Act, £133,812; advances to farmers under Part III of the Act, £6,214; face value of bills and notes discounted, £782; temporary investments, £100,000; Redemption Fund investments, £217,159, and cash, £69,205. From the inception of the scheme on 1st January, 1928, up to 30th June. 1940, advances made and bills discounted totalled £1,469,425.

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 £236,828 on 30th June, 1940.

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 ill 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, 1940, 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 £10,647,201.

Further information regarding the operations of the Housing Construction Branch may be found in Section XXIII, Building and Construction.

Chapter 25. SECTION XXV.—SOCIAL SECURITY, PENSIONS, SUPERANNUATION, ETC.

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 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.

The various classes of pensions, &c., which were superseded by monetary benefits of similar application were old-age pensions, widows’ pensions, Maori War pensions, miners’ pensions, invalidity pensions, and family allowances, while the unemployment benefit replaced the system of sustenance payments previously in force. In addition four new classes of benefit were inaugurated—the orphans’ benefit, the sickness benefit, emergency benefits (for cases of hardship), and the universal superannuation benefit. A brief historical account of the various pensions mentioned above as having been replaced by the Social Security scheme is contained in the 1940 issue of the Year-Book (pp. 619-624).

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 that part of the Act dealing with medical, 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 states 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.

Finance to enable the provisions of the Act to be carried out is provided for by the establishment within the Public Account of ‘the Social Security Fund. Subject to such exemptions as may be prescribed by Order in Council, every person of the age of sixteen years and over is required to register under the Act and to pay a registration fee. This fee in the case of females and males between sixteen and twenty years of age is 5s. per annum, and for males over twenty years of age 5s. per quarter. In addition to the registration fee, there is also payable to the fund a Social Security Contribution of 1d. for every sum of 1s. 8d. or part thereof of salaries, wages, and other income, including the income of companies. Company income was not subject to the charge under the Employment Promotion Act which the present legislation superseded. The Social Security Act also makes provision for the payment to the fund of such other moneys as may be appropriated by Parliament from time to time.

The Act provides that the assessment, collection, and recovery of the Social Security Contribution shall be administered as if it were income-tax, and that the Commissioner and Deputy Commissioner of Taxes and all 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 with income-tax.

The total revenue of the fund for the financial year 1939-40 was £11,367,118, made up as follows—

 £
Registration fees635,441
Charge on salaries and wages5,540,746
Charge on company income658,373
Charge on other income2,661,801
Penalties, fines, interest, &c.61,390
Transfer of Consolidated Fund surplus (Finance Act, 1939)809,367
Grants from Consolidated Fund (Social Security Act).1,000,000
 £11,367,118

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 does 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 doomed 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 ton 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 for 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 per annum.

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.

Widows’ 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—

  1. The mother of the child was only temporarily out of New Zealand at the time of its birth; or

  2. 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

  3. 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.—The rate of the family benefit under the original Act was 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) did not exceed £5, increased by 4s. for each child in excess of two. Under the Social Security Amendment Act, 1940, the benefit of 4s. per week became payable in respect of each child in excess of one, with a corresponding increase in the amount of allowable income. 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 he 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 age: £78 per annum, increased by £26 per annum for his wife (if any) and £20 per annum for each dependent child, with an allowable income of £78 per annum. The maximum amount of benefit that can be paid is £208 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.—Persons entitled to apply for a Maori War benefit are those who served in any of the Maori wars and were awarded a medal for active service in any such war. Other conditions which an applicant must fulfil to qualify 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. The rate of a Maori War benefit is £78 per annum, and this amount is payable regardless of the circumstances of the applicant, income or property not being taken into consideration.

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 years of age without dependants, and £1 a week for others, increased by 15s. a week for a dependent wife and 5s. a week for each dependent child, but not exceeding in any case £4 a week. This maximum applies in cases where an applicant has a wife and nine or more children dependent on him. 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.

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 correspond to the unemployment-benefit rates, but in fixing the amount payable no account is taken of the income of an applicant's wife or dependent children, his income only being considered in this respect. Furthermore, in arriving at the maximum allowable income, no regard is taken of any capital assets as in the case of most of the other benefits under the Act, only the income from these assets being taken into account.

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.

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 Act 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 (November, 1940).

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 (November, 1940).

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 10th 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.

Hospital benefits are also available in respect of maintenance and treatment afforded to any in-patient of Queen Mary Neurological Hospital, Hanmer Springs, or of the Rotorua Sanatorium. The fees chargeable to patients of these institutions have been reduced by 0s. per day, and corresponding payment is made from the Social Security Fund to the credit of the Departments controlling these institutions.

Mental Hospitals.—The principal Act made provision for the treatment of patients in public mental hospitals without charge as from 1st April, 1939. 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 force on 15th May, 1939, but the medical practitioner service was not in full operation 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 from Social Security Fund 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.

    4. 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. In some cases the licensees’ contract requires them to accept such payments in full satisfaction of their claims in respect of the prescribed period, and in other cases they are permitted under their particular contract to make a specified additional charge on the patient, Of the 186 private maternity hospitals under contract at 31st March, 1940, 32 had agreed to accept fees from the fund in full satisfaction, 121 were permitted to make an additional charge in all cases, and 33 had agreed to accept payment from the fund in full satisfaction for certain accommodation, and were permitted to make an additional charge for other accommodation.

  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.

SOCIAL SECURITY BENEFITS AND PENSIONS.

A summary showing particulars of the various Social Security benefits and pensions in force in each of the last two financial years is as follows:—

Class of Benefit or Pension.At 31st March, 1939.At 31st March, 1940.
Number in Force.Annual Value.Paid, 1938-39.Number in Force.Annual Value.Paid, 1939-40.

*Not in operation prior to advent of Social Security scheme.

† Replaces system of sustenance payments previously in force.

  ££ ££
Age66,6943,733,2383,577,12993,2626,859,4206,517,899
Widows'5,196496,831487,21610,174830,623785,952
Family5,60679,73984,43611,053314,458252,562
Invalids'12,489794,636750,74811,8111,005,116942,196
Miners'1,06285,93887,09498890,17992,653
Maori War201,1701,338129361,103
Orphans'*......33016,74314,880
Unemployment......4,053..434,497
Sickness*......2,565..208,790
Emergency*......1,043..86,711
Hospital*..........606,886
Mental hospital*..........166,000
Maternity*..........283,813
War pensions24,2571,624,5441,616,24823,8741,676,9371,073,730
War veterans’ allowances2,223159,031158,5842,079212,500203,439
Boer War pensions541,9171,905501,8761,993
Sundry pensions and annuities13711,77212,39013813,20712,106
Civil Service Act, 190893,1833,25682,9703,130
..117,747..6,780,344161,440..12,288,340

The Social Security legislation has extended considerably the scope of most of the benefits which were in operation under the Pensions Act, both in regard to rates payable and the conditions necessary to qualify. For example, the basic rate of the age-benefit was increased from £58 10s. to £78 per annum, while the age qualification, which, in the case of males, stood at sixty-five, was reduced to sixty. Other extensions were a benefit of £13 per annum where an applicant's wife had not reached the qualifying age, and a benefit of a similar amount for each dependent child under sixteen years of age. As a result of these alterations, the number of beneficiaries at 31st March, 1940, increased by approximately 35 per cent. and the annual rate of expenditure by 84 per cent. as compared with the position at 31st March, 1939. In regard to widows’ benefits, the rate was increased from £52 plus £26 per annum for each dependent child under fifteen years of age to £65 plus £26 per annum for each dependent child under sixteen years of ago. No provision was made under the Pensions Act for widows without de pendent children, but, subject to certain qualifications, these widows are now entitled to a benefit of £52 per annum. Also, when the youngest dependent child is no longer eligible, the widow's benefit is continued at the rate of £52 per annum instead of ceasing altogether as was formerly the case. As a result of these changes, there has been a substantial increase in the number of families benefiting under this type of grant; the number of widows concerned has increased by 96 per cent. during the year, and the aggregate annual value of the benefit by 67 per cent. The rate of benefit under the Family Allowances Act was 2s. per week for each child under fifteen years of age after the first two, with a family income limit of £4 per week. Under the Social Security Act the rate of benefit was raised to 4s. per week for each child under sixteen years of age in excess of two while the family income limit was raised to £5 per week. As a result of the easing of the qualifying conditions, the number of these benefits in force at 31st March, 1940, was 95 per cent. greater than at 31st March, 1939, while the annual cost has risen by no less than 294 per cent. As stated previously, the family benefit has since become payable in respect of each child in excess of one. The principal alteration in the case of invalidity benefits was an increase in the rate for adults (from £52 to £78 per annum), the rates for persons between the ages of sixteen and under twenty-one years and for dependants remaining the same as previously. It will be noted that although the annual value of invalids’ benefits in force at 31st March, 1940, was £1,005,116, as compared with an annual value of £794,636 for invalidity pensions at 31st March, 1939, the number of persons in receipt of this type of grant fell from 12,489 to 11,811. This decline in numbers is largely due to the lowering of the age qualification for males entitled to the age-benefit. The rates of miners’ pensions under the Pensions Act was £65 per annum plus £26 for a wife and £26 for each child. Miners’ benefits are now-paid at the rate of £78 per annum, but the provisions as regards dependants remain the same as previously except that the age for a dependant child has been increased to sixteen years. The annual value of the benefits in force has increased as a result of the rise in the basic rate, but the number in force fell from 1,062 at 31st March. 1939, to 988 at 31st March, 1940.

A summary of pensions and Social Security payments during each of the last ten years, together with the amount per head of mean population, is now given:—

Year ended 31st March,Payments during Year.
Total.Per Head of Mean Population.
 Pensions.   
 ££s.d.
19312,906,0491189
19323,088,536208
19333,031,7811198
19343,149,8952010
19353,338,3542211
19363,659,664269
19374,940,428327
19386,312,5303192
19396,780,344442
Pensions and Social Security.
 ££s.d.
194012,288,3407105

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 War Pensions Act, 1915, and its amendments covered service in connection with the 1914-18 and South African wars only. Its provisions have now been extended by the War Pensions Extension Act, 1940, to cover overseas service in connection with the present war, home service (whether in respect of the present war or otherwise), and overseas service otherwise than in respect of the present war.

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
Captain25012001003000100
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
Sister or Matron25012621000100
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, 1940.

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)11,89720783,56666
Soldiers (temporary)3,99315310,32278
Dependants of disabled soldiers3,1414,789258,97382
Widows (without children)1,514..150,38099
Widows (with children)39271764,800165
Other dependants of deceased soldiers—Parents2,782..102,70737
Other adult dependants75..2,65335
Guardians of children801293,53644
Totals23,8745,6701,676,93770

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.
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
194011,8973,9933,1411,9062,93723,874

The total payments on account of war pensions to the 31st March, 1940, were £31,198,066, the figures for the last ten years being—

Year ended 31st of March,Pension Payments.
 £
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
19401,673,730

During the year 1939-40 medical treatment of war pensioners cost £35,891; railway concessions to certain classes of war pensioners cost £3,732; and loading on life-assurance policies of war pensioners due to war-service disabilities amounted to £169.

War pensions payable outside New Zealand (chiefly in Great Britain and Australia) as at 31st March, 1940, numbered 1,664, with an annual liability of £101,940.

ECONOMIC PENSIONS.

By an amendment to the War Pensions Act, 1915, provision was 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.

Economic pensions consist of three classes. Rates are as follows:—

  1. A maximum pension of £1 10s. weekly to disabled soldiers.

  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, 1940, was 4,753, of an annual value of £826,720, making an average annual grant of £69. 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): £65 per annum, diminished by £1 for each complete £1 of his annual income (not including this allowance) in excess of £52.

  2. Married veteran or widowed veteran with dependant children: £65 per annum, 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 £52. The total allowance payable is limited to £156 per annum.

Having regard to such economic factors as it may consider relevant, the War Pensions Board has discretionary power to grant an additional £13 per annum to both husband and wife, with a maximum allowance of £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 does 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, 3,736 allowances have been granted, of which 2,079, with an annual value of £212,500 were in force as at 31st March, 1940. These comprised 879 single veterans, 1,147 married veterans, 52 widows, and 1 grant on account of an orphaned child.

The total dependent children in respect of whom allowances were received as at 31st March, 1940, numbered 1,720.

SOUTH AFRICAN VETERANS’ WAR PENSIONS.

The total number of pensions in force under this heading at the 31st March, 1940, was fifty, representing an annual liability of £1,876. The amount paid out on claims during the year was £1,993. Pensions are granted under authority of the Defence Act, 1909, but the rates payable are governed by the War Pensions Act, 1915.

In addition to war pensions, South African veterans who are in receipt of an age-benefit under the Social Security Act may receive an additional benefit of £13 per annum in cases where the total income, including pension, does not exceed the rate of £130 per annum. Such payments are included with social security benefits 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, 1940, was 8 (annual value, £2,970). The total payments during the year amounted to £3,130. Those 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, 1940, 138 classed as “sundry pensions and annuities,” of a total annual value of £13,207. This class covers ex-members of the Legislative Department, and of the Police, Defence, and Naval Forces, certain ex-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.

Section 13 of the Finance Act (No. 2), 1940, as amended by section 16 of the Finance Act (No. 4), 1940, confers on contributors of any Government Superannuation Fund the right to elect to surrender portion of the retiring-allowances to which they would be entitled on retirement in order to provide for the payment, after their death, of annuities to their surviving widows or dependants.

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 cases, 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 loss than, thirty years.

At the 31st March, 1940, there were 28,487 contributors, paying £407,446 per annum into the fund. The pensioners at the same date numbered 3,997, and were entitled to £559,290 per annum, made up as follows:—

 Number.Pensions.£
Retired for age or length of service2,060471,610
Retired for ill-health35838,243
Police injured on duty142,397
Widows1,27039,370
Children2957,670
Totals3,997£559,290

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, 1940, grouped according to their respective rates of contribution:—

Rate per Cent.Number.Annual Salary.Annual Contributions.
Male.Female.Total.
    £s.d.£s.d.
520,9154,05824,9736,480,135184324,0061511
61,6411401,781609,1132636,546159
7975761,051370,8850025,961190
846125486174,4586813,950134
9155716260,715005,46470
103313415,096001,509120
Totals24,1804,30728,4877,710,40376407,44630

Accumulated funds at the 31st March, 1940, amounted to £3,255,658, total assets to £3,270,896, and investments to £3,049,008, £1,229,720 being invested in mortgage securities, and £1,819,288 in local-authority debentures and Government securities. The investment figures include £25,710 invested on Stipendiary Magistrates’ account.

In his report on the fund as at 31st March, 1939, the Government Actuary stated, inter alia, that after allowing for expenses of administration, widows’ annuities at £18 per annum, childrens’ annuities at £13 per annum, and all other subsidiary benefits, the contributions payable by contributors are, on the average, insufficient at all ages of entry to support the retiring-allowances, and consequently assistance is required from the State in its capacity as employer. In addition, employment by the State prior to the inception of the scheme ranks as service for pension purposes at full rates, and as no contributions were payable in respect of this service subsidies are required to meet the whole of the retiring-allowances arising therefrom. Finally, widows’ and children's annuities, originally at the rate of £18 and £13 per annum respectfully, were later increased to £31 and £26 per annum respectively. The State has to meet, therefore: (i) widows’ and children's annuities at £13 per annum; (ii) retiring-allowances due to non-contributory service; and (iii) such portion of retiring-allowances due to contributory service as is not provided by contributors’ contributions.

The report states that the estimated subsidy required to meet the foregoing during each of the years 1940-1944 is £357,000 per annum, to which should be added a further £210,000 per annum on account of subsidies short paid in past years.

* By the Statutes Amendment Act, 1936, the method of computation is altered so as to increase the annual payment.

The 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 1939-40 additional amounts were paid, mainly to compensate the fund for losses incurred as a direct result of the statutory reduction in interest. The total subsidies paid to the fund from its inception to 31st March, 1940, amount to £2,941,791

The actuarial report referred to above gave the valuation of the fund on 31st March, 1939, as follows:—

Capital Value ofDue to Non-contributory Service.Due to Contributory Service.
Provided by Members’ Contributions.Not provided by Members’ Contributions.
Existing benefits—£(000).£(000).£(000).
  Retiring-allowances1,5351,7111,267
  Widows’ and children's annuities..275203
Prospective benefits in respect of existing members—   
  Retiring allowances3139,8235,651
  Widows’ and children's annuities..740551
  Refunds of contributions—   
  (a) On death..544..
  (b) On retirement before becoming entitled to a retiring-allowance..859..
Future expenses in respect of existing members..137..
    Total liabilities in respect of existing members1,84814,0897,672
Future contributions payable by existing contributors..5,494..
Accumulated funds..3,199..
Liability of State in respect of existing members1,8485,3967,672
    Total assets in respect of existing members1,84814,0897,672

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 next three periods. As the effective rate of interest earned on the funds has been steadily decreasing since the 1934 valuation and is now considerably below the 4½-per-cent. mark, a 4-per-cent. rate was adopted for the latest valuation. 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.
193151611
19325196
19335189
19345116
1935584
1936565
19374188
19384151
1939452
1940414

The total revenue of the fund for the year ended 31st March, 1939, was £693,767, including members’ contributions £393,380, interest on investments and on contributions £128,987 (which includes a special payment of £11,964 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 £169,806, the last-mentioned including a special payment of £20,185 on account of increased benefits to widows and children. The total amount expended during the year was £637,120, including retiring and other allowances £550,143, refunds of contributions £76,760, transfers to other funds £925, and cost of administration £8,263.

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 AllowanceAccumulated Fund.
  £££££
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
194028,487407,446128,577169,806559,2903,255,658

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, 1940, was £366,244, of which retiring and other allowances represented £330,462, and refunds of contributions £32,670. The revenue for the year was £357,585.

On the 31st January, 1940, there were 9,005 contributors, representing annual contributions amounting to £155,614.

The retiring and other allowances as at 31st January, 1940, were made up of—

 Number.Pensions.£
Retired for age or length of service1,452283,705
Retired for ill-health23630,800
Widows32310,013
Children671,742
Totals2,078£326,260

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.
  £££££
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
19409,005158,90742,699155,979330,462967,076

Since the inception of the scheme, the Government has paid £2,148,947 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 here is 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). Until recently another difference of importance was that the annual allowances to widows and children were paid only in cases where contributors died before retiring on a pension: but, by section 14 of the Finance Act (No. 4), 1940, these allowances were placed on the same footing as in the case of the Public Service and Teacher's Superannuation Funds.

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 1939-40 was 5.08 per cent.

The income for the year totalled £531,034, including members’ contributions, £209,304; interest, £64,146; subsidies from Railways Department, £186,212 (including £16,212 on account of increased allowances to widows and children and members actuarially retired); and Consolidated Fund, £71,000. The expenditure during the year amounted to £533,578, of which retiring-allowances represented £459,996, allowances to widows and children £29,396, and refunds of contributions, &c., £44,186.

At the 31st March, 1940, there were 3,513 persons on the fund, receiving allowances involving an annual liability of £482,156.

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.
  £££££
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
194016,024209,30464,146257,212489,3921,279,836

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 sixty-eight, instead of sixty-five as in the case of the Public Service scheme.

Members’ contributions during the year ended the 31st March, 1940, totalled £1,716, interest on investments brought in £987, and the State subsidy was £5,000. Administration expenses during the year were £44, and retiring-allowances were £5,033. The accumulated fund at the 31st March, 1940, amounted to £25,710.

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-powers 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, 191,1. 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 the 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 subsidizes 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.

The Finance Act, 1939, now makes possible joint life and survivorship pensions for employees of local authorities under their superannuation schemes with the fund. Certain options in this regard are open to contributors at time of retirement.

Since the inauguration of the Fund in 1911, 105,431 persons (84,160 males and 21,274 females) have entered, and of these 76,705 (males, 60,396; females, 16,309) have discontinued for one reason or another, leaving 28,729 (males, 23,764; females, 4,965) on the books at the 31st December, 1939. Of the 3,707 discontinuances in 1939, 3,482 were on account of withdrawal, lapse, and cancellation, 152 on account of having attained the annuity-age, and 73 on account of death.

The numbers of contributors for the various annuity rates as at 31st December, 1939, were as follows, male and female contributors being shown separately:—

Annuity Rate.Stales.Females.Total.
10s. per week15,59586116,456
20s. per week2,1193212,440
30s. per week21935254
40s. per week50275577
Other5,3293,6739,002
Totals23,7644,96528,729

Contributions during the year 1939 amounted to £299,308 and interest to £212,627. Government contributions under the Act totalled £76,662, exclusive of £25,770 for maternity claims. The largest item on the expenditure side was £96,299 by way of refund of contributions on lapse, reduction, and withdrawal.

The progress of the National Provident Fund scheme during the last five years is indicated in the following table:—

Year.Number of Contributors.Annual Rate of Contribution payable.Total Amount of Fund.Claims during Year.
Maternity.Incapacity.Retiring.Widows and Children.
  ££££££
193525,782239,3754,341,06032,39987,84051,75812,349
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
193928,729300,6405,648,41525,8069,82682,35312,772

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, 1939, amounted to £5,648,415, of which £5,648,374 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, 1940, was 677, made up as follows: County Councils, 125; Borough Councils, 128; Town Boards (independent), 34; Town Boards (dependent), 21; Road Boards, 12; River Boards, 36; Land-drainage Boards, 48; Urban Drainage Boards, 3; Water-supply Boards, 3; Fire Boards, 55, Local Railway Board, 1; Harbour Hoards (including 22 where the Board is a Borough or County Council, &c.), 50; Electric-power Boards, 42; Hospital Boards, 42; Tramway Board, 1; Transport Board, 1; Gas- lighting Board, 1; and Rabbit Boards, 74. 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 term, are nevertheless intimately connected with certain aspects of local government, and have power to make recommendations of considerable 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 where 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 1807. 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, 1870, 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 Corporation Act, which provided for the incorporation of the thirty-six boroughs then in existence and for the creation of new boroughs. The powers of municipalities were also extended, permitting the construction of tramways, waterworks and gasworks, while the borrowing-powers of boroughs were placed on a definite and uniform footing. 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 county 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. A description of each type of local authority may be found in the 1940 and previous issues of the Year-Book; considerations of space preclude their inclusion in the present number.

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 may be found on pages 653-4 of the 1940 issue of the Year-Book.

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 whose 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 the one-time numerous road districts which played a very important part in the scheme of local government in the essentially colonizing days of New Zealand 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 it 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. 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.

The Rural Housing Act, 1939, empowers County Councils to raise special loans without taking a poll to enable them to make advances to farmers for the purpose of erecting dwellings.

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 ¾d. 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 the case of houses, buildings, and other perishable property, and 10 per cent. in the 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 ¾d. 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 1938-39:—

System of Rating.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*
Boroughs812126....128
Town districts29245....58
Road districts311......14
River districts1322..7..42
Land-drainage districts3018..1..49
Electric-power districts1327......40
Water-supply districts..2......3†
Urban drainage districts..21....3
Tramway district..1......1
Rabbit districts14..60671
    Totals22819832686534

Although the figures referred to indicate that the number of local authorities rating on the unimproved value during 1938-39 was 43 per cent. of the total, yet on a population basis the figures reveal that 56 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, 1939 (i.e., the beginning of the 1939-40 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 5,574.

† 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)56256,490129649,430†43.4139.49
Boroughs81626,560128933,04063.2867.15
Town districts (independent)1616,6303428,70047.0657.94
Town districts (dependent)113,830227,97050.0048.06

For the purposes of the foregoing tables a district is deemed to rate on the unimproved value whore 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 provided for a Director of Town-planning and a representative Town-planning Board under the Minister of Internal Affairs as chairman, but the Government has since decided, instead of having a Director of Town-planning, to follow 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 two suburban 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 were required 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:—

  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.

By the Rural Housing Act. 1939, local authorities 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.
 ££££££
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
19396,971,55011,275,084475,54218,722,1766,254,79224,976,968

Local authorities received by way of rates in the financial year 1938-39 a total amount of £6,971,550, and the sum of £611,137 was raised by licenses and £148,091 by other taxes, making £7,730,778 altogether from taxation, which sum is equivalent to £4 15s. 11d. per head of the mean population (including Maoris).

During 1938-39 rates formed 37.2 per cent. of the revenue proper; public utilities, licenses, rents, and other sources yielded 604 per cent.; and 2.4 per cent. came from the General Government.

Of the revenue proper of counties, which amounted to £3,113,004 in 1938-39, no less a sum than £2,046,501, 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 1938-39 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 12½12; per cent. and 0.15 per cent. respectively.

LOCAL AUTHORITIES.—RECEIPTS, 1938-39.

Revenue fromReceipts not Revenue.Total Receipts.
Rates.Public Utilities, Licenses, Rents, &c.Government.
 £££££
Counties2,046,501854,480212,0232,055,3185,168,352
Boroughs4,048,6064,551,139219,7692,588,53811,408,052
Town districts92,67646,9954,34579,922223,938
Road districts58,1827,0892,43548,133115,839
River districts69,33817,861..213,092300,291
Land-drainage districts66,7413,072..33,508103,321
Electric-power districts4,4172,846,176..742,0153,592,608
Water-supply districts3,63486..1,2584,978
Urban drainage districts268,3493,616..111,098383,063
Urban transport districts27,936873,620..6,200907,756
Railway district..16,605....16,605
Gas-lighting district..61,628..11,90073,528
Rabbit districts29,3704,37729,9491,90865,604
Fire districts..204,8814,28551,669260,835
Harbour Boards255,8001,783,4592,736310,2032,352,198
Totals6,971,55011,275,084475,5426,254,79224,976,907

Of the total rates (£6,971,550) collected during 1938-39, general rates levied brought in £3,369,847 and other rates (including penalty on overdue rates) £3,601,703. Of the latter, £2,575,347 was received by boroughs and £803,880 by counties. The whole of the rates collected by Harbour Boards (£255,800) were classed as general rates.

It is of interest to note that for the year 1938-39 the total of all rates collected by counties was equal to £6.66 per £1,000 of rateable capital value (land and improvements). In boroughs it was £14.75, in independent town districts £14.29, and in town districts forming parts of counties £6.80 (excluding rates levied by County Councils).

Sections in successive Finance Acts from 1930 to 1936 authorized the remission or postponement in whole or in part of the 10-per-cent. penalty on unpaid rates. This authority then lapsed, but was reinstated on a permanent basis and made retrospective by the Statutes Amendment Act, 1938.

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, &cc. 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, &cc.

Of a total revenue of £4,551,139 accruing to boroughs under this head in 1938-39. £789,804 represented tramway and omnibus receipts, £1,702,563 sales of electric light and power, and £439,255 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,
1935.1936.1937.1938.1939.
 £££££
Rates on Crown and Native lands2,527641321362882
One-third of receipts from land sold on deferred payment or held on perpetual lease7,9475,2026,6743,6655,871
One-fourth of rents from small grazing-runs1,0041,9091,089845592
Timber and flax royalties6,51310,19616,19818,84712,342
Goldfields revenue and gold duty29,53531,53726,98225,99623,572
Subsidies on rates—     
  Ordinary192,411201,624219,684231,864239,103
  Special 12½ per-cent. subsidy on rural lands178,227186,177......
Petrol-tax103,088116,163155,104163,874146,754
Fees and fines5,6395,7718,6655,2294,312
Other receipts32,33217,28819,78112,41412,114
Totals, Revenue Account559,223576,513454,498463,096475,542

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 (£475,542 in 1938-39), there are special grants from the General Government (£3,676,000 in 1938-39) for various local works of a public or semi-public character, including from 1930-31 subsidies from the Employment Promotion Fund, the amount in 1938-39 being £2,392,118. Advances from the Main Highways Account amounted to £21,347. Of the foregoing amounts totalling £4,172,889, counties received £1,986,598 and boroughs £1,707,686.

EXPENDITURE.

The expenditure of local authorities during each of the last ten years has been as follows:—

Year ended 31st March,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 1938-30 being £1,579,316.
 ££££££
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
193917,170,464943,5291,354,2493,029,9902,580,70325,078,935

The expenditure in recent years includes expenditure out of grants from the Employment Promotion Fund, the aggregate amount from this source in 1938-39 being £2,392,118. Included in “other” payments for 1938-39 is an amount of £206,450 for exchange, the bulk of which related to interest payments.

The expenditure of the various classes of local authorities during 1938-39 is shown below:—

Works and Utilities (Construction and Maintenance).Hospital Board Levies.Administration.Interest on Loans and Overdraft.Amortization of Debt.Total Expenditure.*
*Including other Items.
 ££££££
Counties3,815,769458,909347,262308,341193,7825,191,378
Boroughs7,994,952469,068466,7791,393,184705,14011,519,730
Town districts155,7229,71820,04422,24814,365220,657
Road districts83,3485,8347,18111,8344,084114,300
River districts225,088..15,51923,13012,458277,347
Land- drainage districts64,109..7,69120,9228,936102,422
Electric- power districts2,281,479..218,609519,906280,3343,415,502
Water- supply districts3,007..6304303694,436
Urban drainage districts158,437..22,972121,97057,795389,728
Urban transport districts644,598..35,570142,98352,560906,367
Railway district12,437..2,3791112,00019,804
Gas-lighting district57,678..4,0917,2174,42484,602
Rabbit districts53,095..9,37238233764,239
Fire districts207,949..7,06214,37214,462253,399
Harbour Boards1,412,796..189,088442,960228,2702,509,024
Totals17,170,464943,5291,354,2493,029,9901,579,31625,078,935

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, &c.Parks, Gardens, Town Halls, Libraries, Art Galleries, and Places of Public Recreation.Lighting and Power Services.Other Public Works.Totals.
* Includes property purchase, £51,000; and milk-supply £15,000.
 ££££££££
1930715,818289,430154,4343,63150,085304,86078,4231,596,381
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
193579,205126,972144,10635010,384136,421397,489
1936123,314109,490201,8556,89038,12394910,095490,716
1937215,76089,269142,9702,00553,2702223,444526,740
1938226,127165,62378,009121,38833,8509,735109,303744,035
1939172,797156,457131,451145,91654,53515,735125,227*802,118

ASSETS AND LIABILITIES.

The assets and liabilities of local authorities at the end of the financial year 1938-39 are as shown in the table following.

Assets.Liabilities.
Cash AssetsOther 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
 ££££££
Counties1,482,6892,155,2925,762,638749,980434,9386,947,556
Boroughs4,363,05131,856,50626,460,312685,8001,111,73728,257,849
Town districts71,155457,577437,9384,90719,713462,558
Road districts26,313157,562250,3104,05515,899270,264
River districts77,864225,818480,65837,41328,087546,158
Land- drainage districts44,92764,668309,62745,29115,482368,400
Electric- power districts1,952,40514,920,69410,728,591..649,93311,378,524
Water-supply districts8652,5488,4531,013..9,466
Urban drainage districts110,5481,234,8042,444,051..103,8312,547,882
Urban transport districts139,7323,655,2791,798,462..434,4732,232,935
Railway district903182,966....5,5005,500
Gas-lighting district15,499213,335129,202..40,106169,308
Rabbit districts47,12417,9632,872..8,12210,994
Fire districts54,992780,123337,181..54,403391,584
Harbour Boards1,592,85515,967,6317,837,785..310,6038,151,388
Totals9,981,22271,892,82656,988,0801,528,4593,230,82761,753,366

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 28 per cent. of the loan-money expenditure during the last five years was on roads, streets, and bridges. Assets of local authorities as returned for the last ten years are as under:—

As at 31st March,Cash Assets.Other Assets (estimated).
 ££
193012,859,67664,509,880
193112,194,41766,504,801
193212,820,72467,811,808
193310,646,33667,323,298
193411,176,56267,118,852
193511,875,26867,324,158
193612,144,86467,168,849
193711,508,74466,688,860
193811,361,08069,792,113
19399,981,22271,892,820

Cash assets are made up chiefly of loan balances, reserve investments, and cash in hand. Sinking funds, which amounted to £9,690,135 at 31st March, 1939, 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 21 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.

Hospital Boards, which are not included in the foregoing figures, had assets (excluding outstanding fees and subsidies) amounting to £5,355,432 at 31st March, 1939, bringing the total (excluding sinking funds) for all local authorities to approximately £87,230,000.

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 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, 1939, was £68,206,674, made up of: Debentures and other securities, £66,678,215; and inscribed debt, £1,528,459. 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 £57,349,522.

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 1938-39 financial year at a very slight depreciation in comparison with New Zealand currency, and the rate for sterling was approximately £(N.Z.) 125 = £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 £44,433,245. 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 1938-39 being £4,479,362. 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: Cross, £1,638,134; net (i.e., less accumulated sulking 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
1931-323,412,305781,1952,483,810
1932-332,951,645406,5212,348,231
1933-343,884,132917,5602,744,245
1934-353,859,3031,585,4402,379,955
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
1939-402,674,4501,701,460355,800
Totals, 13 years50,851,35827,875,37517,770,220

The difference (£5,205,763) 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.
 ££££££
193069,180,06960,707,0142,027,470828,72671,207,53961,595,740
193170,717,00961,393,5481,969,027772,65172,686,03662,166,199
193270,477,71760,838,7441,924,565710,10272,402,28261,554,906
193370,608,35460,239,8631,867,702662,76972,470,05660,902,632
193470,148,17759,245,8501,821,210608,88671,969,38759,854,736
193569,504,65958,995,2541,740,799556,59671,245,45859,551,850
193668,746,07958,732,4361,654,097505,68170,400,17659,238,117
193766,950,37857,463,3701,609,372457,51468,559,75057,920,884
193366,487,01350,995,4411,573,938409,28068,060,95157,404,727
193966,678,21556,988,0801,528,459361,44268,206,67457,349,522

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 £742,700 at the 31st March, 1939, sinking funds in respect of these loans totalling £433,795. Included in these figures is one loan (£1,500; sinking fund, £966) to a Hospital Board.

Of the total net indebtedness of £57,349,522 at the 31st March, 1939, boroughs were responsible for £26,619,810, which represents 9.33 per cent. of their rateable capital value. In the case of counties, which have a much less per caput expenditure on works, &c., 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 31st March,Population.Gross Debt.Annual Loan Charge.
Amount.Rate per Head.Amount.Rate per Head.
  ££s.d.££s.d.
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
19391,624,71468,206,674411974,602,0622167

The debt of the principal classes of local authorities has shown a decrease during the period covered by the following table, although that of electric-power districts increased appreciably during 1938-39. It should be noted that the debt of electric-power districts shown in the following table does 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, 1939, was mainly that of urban transport districts (£2,860,522) and urban drainage districts (£2,736,492).

As at 31st March,Counties.Boroughs.Town Districts.Road Districts.Electric-power Districts.Harbour Hoards.Other Districts.Totals.
 ££££££££
19307,624,39532,276,814810,178343,98012,636,35110,408,8817,046,94071,207,539
19317,699,17532,894,035835,205274,62513,011,52910,517,3967,453,47172,686,036
19327,719,43132,445,623820,219288,37513,121,96010,549,4937,457,18172,402,282
19337,610,69832,534,350820,917286,43513,031,93010,620,4427,571,23472,476,056
19347,523,01732,094,214810,820287,30313,213,07910,496,5337,544,36171,969,387
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
19376,932,98831,202,208693,471276,26612,026,08710,152,1287,276,00268,559,750
19386,864,85431,236,969631,488271,02011,890,0319,894,1157,272,47468,060,951
19396,856,52431,286,454487,756207,81112,471,3159,746,9407,089,87468,206,674

DOMICILE OF DEBT.

The loans outstanding, other than inscribed debt, at the end of the financial year 1938-39, are shown below, classified according to domicile, and also according to rate of interest. Reference should be made to observations on page 576 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 interest77,015....77,015
30,000....30,000
3305,835....305,835
819,825....819,825
3⅜41,293....41,293
7,253,004....7,253,004
3⅝3,000....3,000
406,138....406,138
3⅞105,851....105,851
4723,273387,100..1,110,373
4⅛530,292....530,292
39,585,457160,400542,20040,288,057
4⅖580,847..11,383592,230
467,5371,698,22510,0172,175,779
4⅗414,191..15,000429,191
4 7/10500....500
4⅘482,407....482,407
587,8905,624,50018,0005,730,390
5⅕1,000....1,000
..1,818,90052,0001,870,900
..1,912,000459,7842,371,784
5⅝....25,00025,000
5 11/16....130,000130,000
6,000..609,051615,051
6..610,00082,900692,900
..564,40026,000590,400
Totals51,921,35512,775,5251,981,33566,678,215

The average rates work out as follows: New Zealand, 4.12 per cent.; United Kingdom, 5.12 per cent.; Australia, 5.25 per cent.: total, 4.34 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 1938-39 the amount domiciled in New Zealand increased by £785,225, that in the United Kingdom decreased by £553,400, and that in Australia decreased by £40,623. The New Zealand domiciled proportion of the total has increased continuously for several years past, and at 31st March, 1939, represented 78 per cent. of the total, the United Kingdom's share being 19 per cent., and Australia's 3 per cent.

A live-years summary of the domicile of loans outstanding, other than inscribed debt, is giver hereunder.

At 31st March,Amount.Percentage of Total.
United Kingdom.Australia.New Zealand.United Kingdom.Australia.New Zealand.
£££Per Cent.Per Cent.Per Cent.
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
193912,775,5251,981,33551,921,35519.162.9777.87

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.
 £££
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
19394,548,27653,7864,602,062

Amortization charges are included in the above, the amount payable during 1939-40 on debt other than inscribed debt at 31st March, 1939, being £1,651,139. Interest charges payable during 1939-40 on the debt outstanding at 31st March, 1939, aggregated £2,897,137, payable, according to countries of domicile, as follows: New Zealand, £2,139,165; Australia, £104,088; United Kingdom, £653,884 (plus exchange).

INTEREST REDUCTION AND LOANS CONVERSION.

As part of a general policy of a reduction in interest-rates, the National Expenditure Adjustment Act, 1932, imposed, inter alia, a stamp duty of 10 per cent. on interest derived from local-authority securities. The proceeds, less 5 per cent. as administrative charges, were paid to the respective local authorities. This duty was abolished by the Local Authorities Interest Reduction and Loans Conversion Act, 1932-33, which followed somewhat similar legislation dealing with the public debt. Interest-rates on local-authority securities in excess of 4½ per cent. per annum were reduced by 20 per cent., or to a minimum of 4½ per cent. Local authorities were also empowered to draw up individual conversion schemes at a lower and more uniform rate of interest. Dissentients to any such scheme were penalized by a reduction of 33⅓ per cent. below the original rate.

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.

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 4¼ 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 19413,388,6422,756,20066,4076,211,309
1942-467,200,7793,899,000703,25011,803,029
1947-5110,357,0951,705,125119,46412,181,684
1952-5611,097,758775,200143,08812,016,046
1957-6110,930,8452,938,00095,91713,964,762
1902-667,209,118702,000619,1498,590,267
1967-711,424,172....1,424,172
1972-74215,630..234,000449,630
Unspecified37,316....37,316
Totals51,921,35512,775,5251,981,33566,678,215

Table loans account for £14,341,385 of the above total, loans in which a number of debentures are redeemed each year for £31,256,716, and loans with one fixed maturity date for £21,080,114. 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 any revaluation of property in a borough 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 selling-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 at the date of revision as directed by the Governor-General in Council. In the case of objections to revaluations under section 3 of the Valuation of Land Amendment Act, 1933, any amendment made by the Assessment Court shall be deemed to be entered in and to appear on the district valuation roll on the 31st day of March in the year following the calendar year in which notice is duly given to the Valuer-General to make a new valuation. 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).
 ££
187899,566,67962,573,868
1882101,000,000..
1885113,270,649..
1888111,137,71475,497,379
1891122,225,02975,832,465
1897138,591,34784,401,244
1902154,816,13294,847,727
1905197,684,475122,937,126
1907236,644,536149,682,689
1909271,516,022172,759,948
1911293,117,065184,062,798
1913340,559,728212,963,468
1915371,076,683230,705,147
1916389,164,729241,322,255
1917405,466,071251,087,708
1918421,383,373260,921,812
1919445,533,445275,988,409
1920470,093,697290,880,264
1921518,584,318317,631,245
1922544,503,376329,174,337
1923553,403,794330,790,991
1924568,500,653333,869,581
1925587,349,575339,310,260
1926603,250,306341,047,952
1927618,264,093341,519,107
1928631,454,676335,217,075
1929655,906,887344,757,796
1930664,571,181338,887,411
1931667,911,212331,634,774
1932662,829,264321,798,700
1933653,707,517314,556,174
1934650,362,355309,770,390
1935637,604,203301,137,513
1936635,801,798295,695,574
1937632,229,720287,844,804
1938636,362,641282,326,015
1939652,898,894282,806,212

Valuations showed a rising tendency for many years, reaching a maximum (so far as unimproved values are concerned) about 1929. After that there was a continuous fall to 1938, amounting in all to nearly £62,500,000 (18 per cent.). The fall occurred mainly in rural districts, owing to low prices for farm products in the depression years and to the subsequent writing-down of many mortgages. Capital value (which includes unimproved value) shows a much smaller decline over the period, due to the fact that the value of inprovements increased considerably.

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.
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
1937129208,521,253104,153,526117,631,79071,008,906326,153,043175,762,432
1938129209,403,957101,095,343116,151,74769,226,087325,645,704170,321,430
1939129214,137,183100,058,034114,625,19667,277,713328,762,379167,335,747
Boroughs.
1935124211,900,63182,645,18487,807,00030,220,358299,707,631112,865,542
1936124211,034,00981,707,65689,225,80030,298,525300,259,809112,006,181
1937124210,533,34480,192,34787,652,83529,334,982293,186,179109,527,329
1938128214,863,26080,653,23389,526,29529,410,792304,389,555110,064,025
1939128220,924,16480,794,80990,636,51432,083,097317,560,073113,478,566
Independent Town Districts.
1935386,092,9452,301,1411,011,470297,0787,704,4152,598,219
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
1939345,541,1501,719,7041,034,687272,1356,575,8371,991,899
Grand Totals.
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..443,818,572205,447,938209,883,945109,108,236653,707,517314,556,174
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..425,919,391180,608,086206,310,329101,236,713632,229,720287,844,804
1938..429,671,518183,418,391206,691,12398,907,624636,362,641282,326,015
1939..440,602,497182,572,667212,296,397100,233,545652,898,894282,806,212

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, 1939:—

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).
 ££££££
Counties200,569,43295,405,252107,538,95164,977,855308,108,333100,443,107
Boroughs198,103,01271,767,71387,317,43930,277,021285,425,451102,045,334
Town districts (Independent)5,100,9971,579,953944,417247,6156,045,4141,827,508
Totals403,778,441163,812,918195,800,80795,503,091599,579,248204,316,009

Of the gross capital value, counties represent 50.4 per cent., and boroughs and independent town districts 49.6 per cent. For unimproved value the proportions are 59.2 per cent. and 40.8 per cent. respectively.

On the basis of rateable values, counties possess 51.4 per cent of capital and 60.7 per cent of unimproved values, as against 48.6 and 39.3 per cent. for boroughs and independent town districts.

Particulars of values for each county, borough, and independent town district were shown in the 1940 and previous numbers of the Year Book, but considerations of space preclude their inclusion in the present issues. However, this informations in much greater detail is contained in the Local Authorities Handbook similar data is also given for dependent town districts and road districts.

Chapter 28. SECTION XXVIII.—BANKING AND CURRENCY.

INTRODUCTORY.

BANKING institutions operating in New Zealand may be enumerated as follows:—

  1. The Reserve Bank 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, but this right 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, bearing 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 tin's 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) Bills, 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, and during the greater part of 1939 was little above the statutory limit of 25 per cent. The ratio is very sensitive to changes in the level of sterling exchange, and as a result rose substantially with the improvement in the exchange position during the very favourable 1939-40 export season, with the added factor that under a war-time agreement with the United Kingdom the proceeds of the staple exports are credited to the Dominion much earlier than in normal times. As explained later, the Minister of Finance now has power to vary or suspend the minimum.

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 31st 1935.1,500,0009,772,2796,693,0879,071,6995,89939,91827,082,882
June 24th1,500,0009,111,27013,287,9263,915,16522,51153,80827,890,680
December 30th 1930.1,500,00010,720,5553,696,0619,678,905362,143113,91626,071,580
June 29th1,500,00010,040,7058,839,6320,097,464258,41089,09527,425,906
December 28th 1937.1,500,00013,641,4513,539,66811,056,206236,398134,05830,107,781
June 28th1,500,00012,630,8387,361,0479,824,090994,98588,10032,399,066
December 27th 1938.1,500,00015,233,1273,486,7468,929,644498,201169,31429,817,032
June 27th1,500,00013,774,7244,648,2096,862,841314,151104,69527,204,620
December 20th 1939.1,500,00016,641,4262,842,1637,193,22779,106225,77728,481,699
March 27th1,500,00015,334,0463,816,5309,041,1861,030,061351,89631,073,719
June 26th1,500,00015,467,2812,328,0099,643,785150,998421,52529,511,598
September 25th1,500,00016,647,6951,794,53712,573,619341,495513,57333,370,919
December 25th 1940.1,500,00019,292,1252,859,91213,545,44828,352797,46838,023,305
January 29th1,500,00018,314,4564,648,18414,416,049381,384790,27340,050,346
February 26th1,500,00018,025,8646,109,23317,315,08186,242855,43043,891,850
March 25th1,500,00018,379,0066,782,67213,896,065106,175877,69141,541,609
April 29th1,500,00017,945,2416,828,13115,345,770176,831966,66642,762,639
May 27th1,500,00017,951,2586,188,58115,766,107265,1321,036,46542,707,543
June 24th1,500,00018,016,8726,584,84616,215,093378,486794,99044,090,287
July 29th1,500,00019,623,4365,156,35516,746,366265,579733,02044,024,756
August 26th1,500,00020,066,1184,619,54517,523,799186,539952,06244,848,063
September 30th1,500,00020,108,9135,574,38015,450,165264,473838,99543,730,926
October 28th1,500,00020,200,9516,354,84513,283,0712,146,577860,51544,345,959

ASSETS OF RESERVE BANK.

As atReserve.Subsidiary Coin.Advances.Investments.Other Assets.Total Assets.Net Reserve Ratio.*
Gold.Exchange.Primary Products Marketing.Other.
* i.e., Reserve, less liabilities in currencies other than New Zeland currency, expressed as a percentage of notes and other demand liabilities.
1934.££££££££Per Cent.
Aug. 27th3,202,17924,487,093108,046....1,500,00018,00029,315,31899.05
Dec. 31st 3,001,73122,092,02193,700....1,872,11123,31927,032,88298.24
1935.         
June 21th2,801,73222,813,024145,975....2,094,07535,87427,890,08097.25
Dec. 30th 1936.2,801,73321,398,949195,812....1,639,18135,90520,071,58098.95
June 29th2,801,73322,122,319192,158....2,036,800272,89027,425,90096.50
Dec. 28th 2,801,79016,534,425110,9036,059,5721,800,0002,700,315100,77030,107,78167.91
1937.         
June 28th2,801,79121,542,637117,2734,754,993200,0002,906,45075,92232,399,00079.01
Dec. 27th 1938.2,801,79116,992,748209,6616,180,312900,0002,658,32574,19529,817,03270.32
June 27th2,801,79116,609,197235,3714,156,650600,0002,732,06509,54027,204,02075.82
Dec. 20th 2,801,7914,678,233188,6665,257,01811,200,0003,605,022750,90928,431,09927.83
1939.         
March 27th2,801,7914,659,874228,1687,431,05512,000,0003,660,931291,90031,073,71925.42
June 20th2,801,8395,600,692226,7506,301,16510,625,0003,768,164187,98229,511,59830.25
Sept. 25th2,801,8395,311,680240,4424,593,26616,250,0003,816,124357,56833,370,91925.82
Dec. 25th 2,801,8398,717,735155,1333,381,00119,275,0003,358,067334,23038,023,30532.20
1940.         
Jan. 29th2,801,8398,725,720162,3573,741,91721,010,0003,413,635194,87840,050,34630.51
Feb. 20th2,801,83910,842,600164,9064,218,50822,310,0003,363,217190,78043,891,85032.81
Mar. 25th2,801,83913,033,981159,8713,445,10318,660,0003,145,998294,81741,541,60940.40
April 29th2,801,83913,848,406162,8793,418,13819,360,0002,957,549213,82842,762,63941.29
May 27th2,801,83913,719,362163,3543,516,40719,660,0002,537,484309,09742,707,54341.10
June 24th2,801,83914,825,826157,5883,756,96819,760,0002,539,502248,56444,090,28742.14
July 29th2,801,84013,027,477140,1293,616,07521,610,0002,543,804285,43144,024,75637.80
Aug; 26th2,801,85212,216,669123,6063,466,19023,440,0002,543,804255,94244,848,06335.39
Sept. 30th2,801,8529,987,895116,9182,975,02125,040,0002,553,220261,99043,736,92630.84
Oct. 28th2,801,8528,929,40398,2002,866,37125,140,0003,771,721738,41244,345,95927.91

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 ton 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. 10½12;d. 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, 1938-39, and 1939-40, 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 226. The other five banks have between them 317 establishments within the Dominion, making a total of 543, or an average of one branch bank to every 3,000 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, 1939, 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)500,000104,674,169
  “B”preference shares Issued to the Crown (Act of 1920)1,375,0007 1/12
  “C”long-term mortgage shares Issued to the Crown234,3756
  “D”long-term mortgage shares408,750
  Ordinary shares3,750,00010
Union Bank of Australia, Ltd.4,000,00075,007,351
Bank of New South Wales8,780,00066,341,052
Bank of Australasia4,500,00084,863,981
National Bank of New Zealand, Ltd.2,000,00041,615,363
Commercial Bank of Australia, Ltd.—   
  Ordinary2,000,0007 1/122,365,910
  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 fourteen 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.
 £££££
19256,775,470312,983924,04252,207,20260,219,697
19266,730,421292,370850,25650,135,11458,008,161
19276,510,018292,369948,92648,294,09656,321,397
19286,374,043307,0071,146,54353,799,22161,850,595
19296,433,911327,667850,44157,609,74665,232,866
19306,255,717269,2941,024,96356,425,01463,984,419
19315,782,354191,4171,798,37553,645,01861,463,034
19325,958,268158,8661,566,10752,851,73660,649,208
19336,205,429179,4271,111,97957,620,23365,281,375
19344,844,826197,882576,86363,417,29969,259,271

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 1940 is as follows:—

LIABILITIES OF TRADING BANKS (MONTHLY SERIES).

As atNotes in Circulation.Demand Liabilities.Time LiabilitiesTotal 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 1st1,48624,17826036,76284663,532
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.      
June 27th..35,0621,51631,10833168,017
December 26th..34,1722,16429,79868766,821
1939.      
March 27th..38,4471,95529,87828170,561
June 26th..37,2762,30729,42628569,294
September 25th..37,4132,01730,2261,01270,668
December 25th..41,3402,35131,86642175,978
1940.      
January 29th..44,8002,60631,72754379,676
February 26th..47,1482,84731,52143081,946
March 25th..46,6402,78731,24529280,964
April 29th..48,1632,46231,25133382,209
May 27th..48,0712,74231,81528082,908
June 24th..49,1132,73131,38725383,484
July 29th..48,4232,82930,74515682,153
August 26th..48,8312,87830,87013682,715
September 30th..48,1582,68930,57612781,550

Notes of trading banks were finally withdrawn from circulation on 1st August, 1936 (see“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).
 ££££££
19257,722,9171,639,168443,659,7871,214,3214,782,17062,128,808
19267,797,3191,787,50447,361,756881,8454,654,84665,765,297
19277,874,9711,610,36848,421,835978,2644,647,19166,626,676
19287,511,8331,286,18544,893,2781,301,9074,790,40462,819,485
19297,051,3911,103,14948,175,045955,8034,887,46265,475,529
19306,798,5561,173,36752,484,0301,075,3344,777,89669,748,071
19316,917,897843,04151,576,4861,832,7814,505,58168,557,120
19325,957,944644,95349,610,7211,592,8948,521,01769,015,209
19335,105,846814,22844,890,8161,109,25715,266,03269,656,700
19343,477,2481,174,40740,215,0506,040,48618,105,02573,509,177

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 28th7013,9729,81817,2027,78847,7111,67988,931
December 27th6853,5548,9248,8388,04154,0021,77985,823
1938.        
June 27th8914,2506,85911,3636,99554,8861,81887,062
December 28th6453,5727,1894,9999,03357,7971,83785,072
1939.        
March 27th7864,1589,0386,88210,32955,5171,85288,562
June 26th7533,9369,6246,13610,87255,0901,87288,283
September 25th6633,22712,5726,30710,75453,6241,87189,018
December 25th5913,66613,5379,88115,46151,1381,83596,109
1940.        
January 29th7724,08014,41411,04016,45849,9621,83799,463
February 26th7784,72517,31112,42216,56147,0951,840100,732
March 25th6433,54413,86213,06716,79448,1611,83997,910
April 29th7434,29415,34113,56616,14249,5411,861101,488
May 27th7233,78515,76514,56316,13949,5561,867102,398
June 24th7113,91816,21215,55616,20547,4571,882101,941
July 29th7004,25816,73715,54016,38546,1021,889101,611
August 26th6864,42417,52215,52216,39245,3791,882101,807
September 30th6814,16115,43715,03017,46546,5861,892101,252

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 September, 1939, and thereafter on the last Monday of each month up to October, 1940:—

As atAmount.
1936.£
April 27th22,854,690
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. 
March 28th24,799,432
June 27th24,907,085
September 26th22,917,290
December 26th21,200,722
1939 
March 27th23,538,752
June 26th23,973,221
September 25th23,284,065
October 30th23,846,294
November 27th24,538,678
December 25th25,375,393
1940. 
January 29th26,642,210
February 26th29,252,249
March 25th28,801,527
April 29th29,144,801
May 27th29,359,970
June 24th29,643,228
July 29th29,647,402
August 26th30,116,734
September 30th29,156,410

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.
193056,425,0143716053,657,39795.10
193153,645,018358752,419,52797.72
193252,851,7363412250,255,67495.09
193357,620,233378645,705,04479.32
193463,417,2994017641,389,45765.27
193561,474,511397044,666,54172.66
193665,153,972417345,918,43270.48
193766,842,692424149,199,59273.60
193865,038,690409755,650,06585.56
193967,279,451416354,745,80181.37

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, 1936, is shown in the next table:—

Mouth.1936.1937.1938.1939.1940.
 £££££
January64,956,40065,502,25366,193,03964,535,08574,411,291
February66,239,99967,930,72867,317,02566,323,61776,620,421
March66,834,80767,701,49867,120,26066,930,89376,013,314
April67,903,29769,567,17867,111,81367,274,57977,700,399
May67,750,75269,009,29666,925,72767,388,44778,749,769
June66,634,01768,232,13465,643,62265,678,73578,492,575
July65,627,92967,669,90264,921,55565,972,26278,660,528
August64,644,58266,789,58364,045,88266,574,37678,760,209
September63,226,58765,441,32562,980,98166,825,98577,771,606
October62,515,49264,857,67762,703,35368,199,51677,253,456
November62,327,95964,386,40862,544,24569,923,586..
December63,229,47264,895,32163,028,46572,481,952..

In the following tables the three different classes of deposits are shown for each month since January, 1936:—

Month.1936.1937.1938.1939.1940.
Government Deposits.
 £££££
January455,800930,275875,538656,478850,406
February473,034886,476777,271646,810678,906
March496,150648,708636,172700,495761,973
April482,578833,695723,065748,130762,440
May488,277713,444665,421691,713716,520
June572,381788,994628,355625,572736,385
July594,048792,787627,489631,009792,930
August689,947784,796627,806677,677723,353
September828,842714,173612,606682,029703,639
October841,082797,080636,555637,421756,872
November896,793706,081607,058646,002..
December923,975714,992701,998707,588..
      
Deposits not bearing Interest.
January25,913,66430,484,94632,123,97032,699,08940,383,409
February27,075,22233,004,96033,576,85534,483,31542,867,782
March28,307,39233,669,60333,445,98535,080,02442,466,423
April28,916,81535,249,77133,420,35235,397,61444,197,888
May28,684,61634,428,92833,603,22835,708,19344,815,648
June28,033,27633,348,30732,612,56134,449,26644,553,713
July27,648,38232,082,53732,046,74934,510,81145,495,284
August27,021,07331,119,92531,300,36834,733,56645,582,280
September26,366,24729,952,29730,353,04534,668,92344,656,026
October26,263,08229,992,42830,276,76135,745,26944,174,296
November26,641,34829,886,36030,268,67036,831,113..
December27,994,17630,457,07731,143,99638,835,895..
      
Deposits bearing Interest.
January38,586,93634,087,03233,193,53131,179,51833,177,476
February38,691,74334,039,29232,962,89931,193,49233,073,733
March38,031,26533,383,18733,038,10331,150,37432,784,918
April38,503,90433,483,71232,968,39631,128,83532,740,071
May38,577,85933,866,92432,657,07830,988,54133,217,601
June38,028,36034,094,83332,402,70630,603,89733,202,477
July37,385,49934,794,57832,247,31730,830,44232,372,314
August36,933,56234,884,86232,117,70831,163,13332,454,576
September36,031,49834,774,85532,015,33031,475,03332,411,941
October35,411,32834,068,16931,790,03731,816,82632,322,288
November34,789,81833,793,96731,668,51732,446,471..
December34,311,32133,723,25231,182,47132,938,469..

The average amount of advances outstanding during each month since January, 1936, is shown below:—

Month.1936.1937.1938.1939.1940.
 £££££
January45,781,78547,498,84153,473,30356,632,20150,419,642
February44,955,06846,452,40052,746,13455,263,09448,082,804
March44,685,84146,853,67954,752,99455,646,23948,551,298
April44,966,33947,414,17255,947,79856,201,35549,246,078
May45,031,52247,452,15055,349,04155,979,88649,382,465
June44,670,30047,643,88655,013,31155,930,89248,263,024
July45,003,06448,039,17754,977,52754,699,63146,909,642
August45,427,85548,825,05555,419,92453,883,94945,826,741
September45,762,88550,126,11256,093,33253,865,24846,475,269
October47,484,22152,447,95357,789,53453,623,52347,005,945
November48,547,37653,473,77958,411,11152,837,224..
December48,790,52554,216,32857,968,87951,898,356..

The ratio of advances to deposits follows:—

Month.1936.1937.1938.1939.1940.
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
January70.4872.5180.7887.7567.76
February67.8768.3878.3583.3262.75
March66.8669.2181.5783.1463.87
April66.2268.1683.3783.5463.38
May66.4768.7682.7083.0762.71
June67.0469.8383.8185.1661.49
July68.5770.9984.6882.9159.64
August70.2773.1086.5380.9458.19
September72.3876.6089.0680.6159.76
October75.9680.8792.1678.6360.85
November77.8983.0593.3975.56..
December77.1683.5491.9771.60..

As 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 those for 1936 and subsequent years the average of the figures for the last Monday of each month. For 1939 the position is shown on the last Monday of each quarter and for 1940 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.
192846,179,4644,790,40450,969,86853,799,22094.74
192949,278,1954,887,46254,165,65757,609,74694.02
193053,657,3984,777,89658,435,29456,425,014103.56
193152,419,5274,505,5856,925,10853,645,018106.11
193250,255,6748,521,01758,776,69152,851,736111.21
193345,705,04415,266,03260,971,07657,620,233105.82
193441,389,45718,105,02559,494,48263,417,29993.81
193544,624,0055,326,80249,950,80761,499,13481.22
193645,898,6655,211,13951,109,80465,147,22178.45
193749,222,0797,622,53356,844,61266,890,61984.98
193855,659,4347,612,92963,272,36364,112,55998.69
193954,241,25411,263,63965,504,89367,579,82496.93
1939.     
March 27th55,515,57610,062,55965,578,13567,386,53097.32
June 26th55,088,93410,610,37965,699,31366,020,85099.51
September 25th53,630,30310,495,69564,125,99867,094,46595.58
December 25th51,137,39115,203,87966,341,27072,648,66491.32
1940.     
January 29th49,961,83116,204,39566,166,22675,897,13387.18
February 26th47,095,10216,307,77063,402,87278,199,80781.08
March 25th48,161,44116,540,14464,701,58577,197,22583.81
April 29th49,540,80715,891,87065,432,67778,797,17783.04
May 27th49,556,30415,891,87065,448,17479,304,23582.53
June 24th47,456,60115,902,68363,359,28479,812,69479.38
July 29th46,101,50615,992,37862,093,88478,573,81579.03
August 26th45,378,58616,001,39961,379,98579,081,20077.62
September 30th46,585,75917,074,27063,660,02978,079,56781.53

An analysis of advances of the New Zealand trading banks at quarterly intervals is now 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 to1937.1938.1939.1940.
June.June.June.March.June.Sept.
Farmers—£(000)£(000)£(000)£(000)£(000)£(000)
  Mainly dairy5,1015,4455,3804,8775,0135,483
  Mainly wool5,3686,2556,2885,7735,7696,373
  Mainly meat1,9252,1512,2061,9261,9372,079
  Mainly agricultural322340372330264363
  Mixed4,0584,6274,4384,1844,2734,490
Industries allied to primary production—      
  Dairy companies, factories, &c.1,2791,3081,5052,0852,5281,945
  Freezing-works, meat companies, &c.8521,7072,8463,3062,9691,478
  Woollen mills386603447503215133
  Other1,6522,0131,6611,4521,4631,178
Other manufacturing and productive industries3,8564,5874,6414,1903,8573,983
Merchants, wholesalers—      
  Mainly importers3,0843,8043,2821,9221,8372,094
  Others1,3031,0301,3521,0481,1511,013
Retailers3,5053,7673,6383,0262,9572,884
Transport—      
  Shipping486379865550
  Other534644627574557548
Local and municipal authorities, public utility concerns8451,2621,544670870822
Stock and station agents6881,2321,3316805871,131
Hotels (public and private), restaurants, &c.8601,1991,1061,1131,1121,154
Financial companies, societies, &c.1,6852,3532,2961,3811,053876
Professional1,4501,4341,5031,2941,2391,169
Private individuals5,1565,5445,0294,8584,7904,645
Other3,2192,9362,8512,6752,4132,347
    Total advances47,17554,30554,42247,95546,90946,238

DEBITS AND CLEARINGS.

The following table shows annual aggregates of bank debits and clearings from 1930 to 1939:—

Aggregate for Year.Debits other than Government.Government Debits.Clearings.
 £ (million)£ (million)£ (million)
1930792272473
1931593224343
1932542206307
1933559248352
1934676280430
193568773365
193681783437
193797496518
1938934104499
1939958108507

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, 1936. onwards are next given:—

Month.1936.1937.1938.1939.1940.
Debits, other than Government.
 £££££
January13,544,62116,595,61716,707,96815,858,13316,867,233
February16,673,05622,015,86020,942,19721,853,23421,131,493
March18,440,33123,066,48721,520,33122,506,93421,838,053
April17,033,00222,023,34418,831,44519,887,22421,811,849
May16,326,74318,674,23717,858,09119,783,91619,606,228
June14,959,24117,236,41616,577,36017,662,66119,291,970
July14,868,12716,86516,864,18217,309,18818,258,414
August14,184,38816,123,59616,224,16,325,86418,037,735
September13,631,19115,951,18414,868,94914,944,07318,229,109
October14,782,85918,237,76217,714,30117,309,93117,976,836
November15,574,17217,682,40817,040,96017,624,203..
December18,521,34320,041,03521,430,91420,753,694..
      
Government Debits.
January1,239,6131,580,7651,554,4871,550,0181,650,845
February1,4952,093,5162,490,0752,349,5812,393,465
March1,4172,304,3612,280,6632,647,7613,173,642
April1,466,4751,910,1821,817,8772,046,9332,829,022
May1,537,0771,833,2031,935,6162,130,1452,152,834
June1,632,1021,717,1441,841,7272,068,4722,446,622
July1,633,8971,708,3801,875,8241,974,4192,207,305
August1,548,5531,716,3691,840,4321,837,9112,257,028
September1,451,6241,605,3181,785,0951,985,7182,350,106
October1,590,7731,795,4652,111,8611,980,1882,394,577
November1,694,3091,784,6802,089,7672,021,580..
December1,803,2931,971,6072,455,9672,421,010..
      
Clearings.
January7,109,8518,976,1488,743,3058,230,7419,196,654
February9,205,43211,922,21611,533,80111,688,11712,561,997
March9,928,03512,517,51812,361,27712,369,87412,601,286
April8,839,26311,530,3419,662,67210,144,00211,821,074
May8,782,3459,968,5309,757,77210,272,01010,817,566
June8,215,0989,454,2189,005,0749,336,80610,775,131
July8,017,4168,935,0428,797,9558,974,65910,519,473
August7,419,2598,740,6538,525,4098,703,7469,993,969
September7,399,3388,273,0057,855,2777,997,1949,911,671
October7,669,9259,117,2279,014,1909,147,34210,012,057
November8,293,9369,179,4599,378,4919,787,038..
December9,950,26710,710,10611,220,95110,942,401..

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.Notes of Trading Banks.Notes of Reserve Bank.
1934.£££££
September 24th2,705,7318,664,80214,5135,196,6846,159,336
December 31st1,483,4999,772,2795,5984,415,8996,834,281
1935.
June 24th708,0279,111,2707463,714,0246,104,527
December 30th584,66810,720,5555463,689,4047,615,273
1936.
June 29th517,74510,040,705863,336,5137,221,851
December 28th13,641,4513,198,22710,443,224
1937.
June 28th12,630,8383,972,0458,658,793
December 27th15,233,1273,553,73811,679,389
1938.
June 27th13,774,7244,250,0109,524,714
December 26th16,641,4263,571,66513,069,761
1939.
March 27th15,334,0464,158,32111,175,725
June 26th15,467,2813,935,48611,531,795
September 25th16,647,6953,227,14013,420,555
December 25th19,292,1253,665,63015,626,495
1940.
January 29th18,314,4564,980,08613,334,370
February 26th18,025,8644,724,46113,301,403
March 25th18,379,0063,543,74714,835,259
April 29th17,945,2414,293,83613,651,405
May 27th17,951,2583,785,05214,166,206
June 24th18,616,8723,917,75814,699,114
July 29th19,623,4364,258,33515,365,101
August 26th20,066,1184,424,00615,642,112
September 30th20,108,9134,160,74915,948,164
October 28th20,200,9514,007,48416,193,467

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 £1,500,000, and averaged between £1,350,000 and £1,450,000. 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 towards the end of 19135. 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 fall 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, since when there has been an almost continuous upward movement, due to more favourable economic conditions in association with such factors as the restoration of wage and salary cuts, increased pensions, higher wages, greater activity on public works, &c. Between the months of September, 1935, and September, 1939, the increase in the average note-circulation was 98.3 per cent. Since the outbreak of war in September, 1939, there has been a further substantial increase, and the average total of notes in circulation in September, 1940, was £15,649,134 (23.5 per cent.) above that of the corresponding month of 1939 and 144.9 per cent. greater then the September, 1935, average.

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:—

 1937.1938.1939.1940.
June 28th.Dec. 27th.June 27th.Dec. 26th.June 26th.Dec. 25th.June 24th.Sept. 80th.
 £(000)£(000)£(000)£(000)£(000)£(000)£(000)£(000)
10s.502679523698566748644684
£13,6825,1653,9455,4094,3745,8314,9235,316
£53,5794,9004,0805,8665,3927,6827,1667,727
£10............385556
£504114705286607759501,1731,260
Total, Reserve Bank issue8,17411,2149,07612,63311,10715,21114,29115,543
Trading banks' notes outstanding485466449437425418400405
Total, net note-circulation8,65911,6799,52513,07011,53215,62914,70015,948

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 30th8,821,5388,359,977....3,399,401..
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
1937.      
December 28th7,907,9165,373,73016,534,42529,816,0711,735,53428,080,537
June 28th12,174,1395,027,43521,542,63738,744,2111,788,17536,956,036
1938.      
December 27th5,199,7763,637,90016,992,74825,830,4242,175,34223,655,082
June 27th8,308,7993,054,15116,609,19727,972,1471,846,62926,125,518
1939.      
December 26th2,785,2352,214,1324,678,2339,677,6002,870,8676,806,733
March 27th5,422,1891,459,5374,659,87411,541,6002,269,5019,272,099
June 26th4,668,9551,467,1075,600,69211,736,7542,648,5339,088,221
September 25th4,577,0001,729,7575,311,68011,618,4373,045,2838,573,154
1940      
December 25th.8,156,9131,724,2208,717,73518,598,8682,787,71515,811,153
January 29th8,973,2302,067,3538,725,72019,766,3033,157,26016,609,043
February 26th10,552,5751,869,75410,842,60023,264,9293,292,27319,972,656
March 25th11,107,2691,959,63413,033,98126,100,8843,091,49023,009,394
April 29th11,634,2351,932,03313,848,40627,414,6742,807,60524,607,069
May 27th12,843,2051,720,32913,719,36228,282,8963,033,72125,249,175
June 24th13,845,3291,710,99514,825,82630,382,1503,000,04627,382,104
July 29th13,777,4221,762,79213,027,47728,567,6912,993,47225,574,219
August 26th13,394,8422,127,04812,216,66927,738,5593,028,04924,710,510
September 30th13,059,1691,970,4889,987,89525,017,5522,838,77622,178,776

Overseas funds declined heavily during the three years, 1937-39, particularly after 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. These measures, combined with a more favourable export season in 1939-40 and earlier crediting of the proceeds of the Dominion's staple exports to the United Kingdom as a war-time measure, have resulted in a marked improvement in the exchange position.

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, 2½12; 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, 1940, was 939. There were 106,396 new accounts opened during the year ended the 31st March, 1940, and 92,653 accounts were closed during the period. The total number of open accounts at the 31st March. 1940, was 960,565, 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.
  £££££
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
1933797,09716,933,17619,635,923-2,702,752*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
1939946,82230,434,29234,597,708-4,163,4161,726,57460,710,087
1940960,56525,151,28729,462,838-4,311,551*1,603,46658,002,002

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. In the latter half of 1938-39 and during the first nine months of 1939-40, however, withdrawals were exceedingly heavy, while deposits were on a somewhat lower scale, with the result that an excess of withdrawals amounting to over £4,000,000 was experienced in each of those years. Commencing with January, 1940, however, this trend was reversed, and transactions for the first six months of 1940-41 resulted in an excess of deposits of £1,634,753.

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, 1940, was £60 7s. 8d., as against £64 2s. 4d. in 1939.

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, 1938-39. and 1939-40:—

Size of Account.At 31st March, 1938.At 31st March, 1939.At 31st March, 1940.
Number.Percentage of Total.Number.Percentage of Total.Number.Percentage of Total.
££      
Under20632,52968.69655,96869.28680,95770.89
20 and under5091,6179.9593,4999.8888,3559.20
50 and under10060,8346.6162,8196.6360,8226.33
100 and under20050,7865.5153,1325.6150,2865.24
200 and under30025,3522.7525,9312.7425,9482.70
300 and under40015,5441.6915,5081.6415,5521.62
400 and under50011,4241.2410,2831.0910,1851.06
500 and under6008,9910.988,4870.908,1630.85
600 and under7005,1990.574,8440.514,4950.47
700 and under8003,7890.413,4710.373,2140.33
800 and under9002,8900.312,5470.272,3370.24
900 and under1,0002,1970.242,0000.211,7880.19
1,000 and under2,0008,1930.897,0780.756,4310.67
2,000 and under3,0001,3680.151,1780.121,9730.21
3,000 and under4,000810.0158..46..
4,000 and under5,0007..12..7..
5,000 and over..4..7..6..
Totals920,805100.00946,822100.00960,565100.00..

The securities standing in the name of the Postmaster-General on account of the Post Office Savings-bank Fund on the 31st March, 1940, represented a nominal value of £58,712,431. A summary of the investments is as follows:—

 £
In New Zealand Government securities55,719,345
In Government stock of other British countries2,993,086
 £58,712,431

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. 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 in 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
1937388248,88022,7796,3068,00214,17729928,256
1938559350,94333,9709,03313,82620,14466049,060
1939764393,89738,85111,72221,36017,4911,11567,666
1940905370,06236,80913,55326,68710,1221,51979,307

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, 1940, was £13,907,334, representing an average account of £50 13s. 5d. 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.
  £££££
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
1940274,4718,184,1148,523,416-339,302*380,96013,907,334

The following table shows the results of the transactions of each of the trustee savings-banks during the twelve-months ended 31st March, 1940.

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.
  £££££
Auckland192,5395,043,3315,277,510-234,179*243,2388,937,310
New Plymouth17,588608,032651,825-43,793*29,6091,064,444
Hokitika2,19253,56958,913-5,344*4,160155,659
Dunedin39,963953,7881,009,851-56,063*73,9762,544,997
Invercargill22,1801,525,3941,525,3177729,9771,204,924
Totals274,4718,184,1148,523,416-339,302*380,96013,907,334

Following is a summary of trustee savings-banks investments at the 31st March, 1940:—

Bank.Mortgages.New Zealand Government Securities.Local Authority Debentures.Fixed Deposit.Total.
 £££££
Auckland3,942,3423,211,1761,613,565..8,767,083
New Plymouth816,391150,05528,60250,3701,045,418
Hokitika81,93433,80920,23844,650180,631
Dunedin1,621,023284,680685,11480,0002,670,817
Invercargill683,483227,10899,800149,0001,159,391
Totals7,145,1733,906,8282,447,319324,02013,823,340

NATIONAL SAVINGS INVESTMENT ACCOUNTS.

In order to assist the financing of the war effort, the National Savings Act, 1940, made provision for the opening of special savings accounts with the Post Office and trustee savings-banks. Money deposited in these accounts bears interest at the rate of 3 per cent. and is repayable on 30th June, 1945.

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, 1940.
 £
Deposits with trading banks77,478,265
Deposits with Post Office Savings-bank58,002,002
Deposits with school savings-banks79,307
Deposits with trustee savings-banks13,907,334
Total of above£149,466,908
Per head of population£91 1s. 9d.

In addition to the classes of deposit shown above, there were on 31st March, 1940, deposits of £4,815,121 with building and investment societies and of £5,127,357 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 In-. vestment Societies.At Call.Three Months and tinder 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
1933         
December 31st.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
1934         
December 31st.600,853651,2701,929,2883,181,4113,630,657929,7581,629,3306,189,7459,371,156
June 30th603,603650,0002,063,7708,317,3733,511,445895,3351,748,1506,154,9309,472,303
1935         
December 31st.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
1936         
December 31st.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
1937         
December 31st.721,934747,3662,439,5883,908,8882,290,6531,203,1871,972,8625,466,7029,375,590
June 30th774,365764,171,2,559,8804,098,4162,408,1621,304,6471,835,4865,548,2959,846,711
1938         
December 31st.786,566784,4202,654,3374,225,3232,243,4751,219,2291,804,6965,327,4009,552,723
June 30th793,212825,3522,786,7404,405,3042,127,3481,101,8661,927,2485,156,4629,561,766
1939         
December 31st.767,546851,5522,921,6524,540,7502,088,3521,113,7581,930,1655,132,2759,673,025
June 30th775,967821,1223,032,5424,629,6312,133,3731,030,5891,927,6935,091,6559,721,286
1940         
December 31st.739,080850,4813,167,1614,756,7221,901,3591,251,8741,923,8265,077,0599,833,781
March 31st735,746873,4443,205,9314,815,1212,111,4701,148,4451,867,4425,127,3579,942,478
June 30th759,509899,9403,287,6354,947,0842,011,7641,143,8421,807,8054,963,4119,910,495
September 30th745,506887,2923,274,7684,907,5661,958,5741,113,4121,833,7004,905,6869,813,252

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 latter part 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 66½ 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 46½ 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 36½ per cent. from the 29th July, 1935, to 26½ 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, and to 2 per cent. from 27th May, 1940.

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, 1912..24
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:
£l-£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, 1933333
1st August, 1934332*
1st March, 1935332*Nil.

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, the amount exceeding £1,000 to 2¾ per cent. from 1st August, 1933, and the excess over £500 to 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 molting 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 on 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, 1940, New Zealand coins have been imported from the Mint of a total face-value of £2,398,600, comprised of the following denominations and respective face-values:—

 £
Half-crown763,100
Florin704,500
Shilling398,500
Sixpence268,000
Threepence258,500
Penny5,000
Halfpenny1,000

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 £170,760 to the 31st March, 1940, at which date there was a credit balance of £1,048,661 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. 
Crown436.3636328.27590500*2.0000.12965
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.
 Grains.Grams.  
Penny145-833339-44984Mixed 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 rats 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 thar. 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, and the premium resulting from such revaluation is to be credited to a special reserve and held on behalf of the Crown. This special reserve is to be used in such manner as the Minister of Finance may from time to time determine.

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, £10, 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 in 1914. A return was made in May, 1925, but in 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 has 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 than 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 boon 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 export 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, 1940, the New Zealand pound was worth 8s. 1d. 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 hold 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.

WAR FINANCIAL RESTRICTIONS.

The Finance Emergency Regulations 1940 (No. 2) of the 18th June, 1940, take the place of earlier regulations gazetted on the 10th April, 1940, but they are also more comprehensive. They closely resemble similar legislation passed in the United Kingdom shortly before the New Zealand measures came into force. The regulations prohibit the export of money and securities from New Zealand except with the consent of the Minister of Finance, and require that gold coin and bullion and also foreign currency belonging to any New Zealand resident be offered for sale to the Reserve Bank of New Zealand.

Under the regulations owners of foreign securities were prohibited from dealing with their securities in any way and were obliged to register them with the Reserve Bank within a specified period. A Reserve Bank statement of the 30th July, 1940, somewhat eased these restrictions by permitting New Zealand residents to deal in overseas securities on the New Zealand register without the prior consent of the Reserve Bank, subject to the companies concerned agreeing to fulfil certain requirements as to returns, &c. As regards overseas securities held by New Zealand residents but registered outside New Zealand, the selling broker is required to obtain the prior consent of the Reserve Bank. Permission to deal in both these classes of overseas securities is subject to the further condition that a form recording the transaction is completed by both the selling broker and the buying broker and supplied to the Reserve Bank. Sales of overseas securities to other than New-Zealand residents require the special permission of the Reserve Bank, and in all such cases the proceeds received overseas must be remitted to New Zealand. The change from one form of overseas investment to another in an Australian market is not permitted.

The regulations empower the Minister to take over any overseas securities for the purpose of strengthening the financial position of the Dominion, at a price not less than the market value at the time of the transfer. The price payable for securities or currency acquired may be either in cash, in New Zealand Government stock, or in a combination of both, according to the discretion of the Minister. For gold coin or bullion taken over, the vendor has the option of any of these methods of payment.

Further sections of the regulations empower the Minister to require contributions to war loans; prohibit, without his consent, the formation of companies, building societies, &c., or the increase of capital of existing companies; regulate the issue of capital other than by a local authority; and empower the Minister, as he deems necessary in the public interest, to control advances for industrial purposes.

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 £721,490, representing statutory deposits by life-assurance companies, were held by the Public Trustee as at 31st March, 1940.

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, and it is from these returns that the statistical matter following has been compiled.

Fifteen life-assurance offices were operating in the Dominion during 1939, 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 recorded. 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, and this was followed by a further drop of £1,204,019 during 1939. The amount discontinued, which reached its peak in 1932, gradually declined up to and including 1935, the figure for that year being £2,972,473, or 27 per cent. less than in 1932. In 1936 and 1937 small increases were recorded, followed by a major rise of £1,964,492 in 1938. The last-mentioned increase was principally due to abnormally large numbers of maturities becoming due in 1938. An increase in the number of policies surrendered in 1939 has resulted in the comparatively small reduction of £230,403 in the amount discontinued for that year when compared with 1938. The net result of the transactions for 1939 was to increase the amount in force by £8,319,898.

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.
 £££
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
193919,302,5119,982,613169,415,223

During the ten years from 1929 to 1939 the amount in force has increased by £64,143,804, or by nearly 61 per cent. Policies existing at the end of the year 1929 represented a rate of 361 per 1,000 of population (excluding Maoris, 378), while the corresponding figures at the end of 1939 were 513 and 543 respectively.

The average sum assured per head of population has increased from £71 in 1929 to £104 in 1939. Comparable figures, excluding Maoris, were £75 and £110 respectively for 1929 and 1939.

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.NumberSum assured.Annual Premiums.
  ££ ££ ££
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
193750,98919,376,772606,72019,7026,475,775223,503352,419131,598,0284,166,588
193844,20916,943,706510,84122,7548,222,169292,821373,874140,319,5654,384,608
193940,40416,304,251479,24921,7097,884,027259,907392,569148,739,7894,603,950

Each of the three years 1935-1937 was characterized by a remarkable increase in the amount issued when compared with the year immediately preceding, culminating in the record amount of £19,376,772 for new business in 1937. A large part of the new business issued during these three years was evidently due to the necessity, during the years of financial stringency, of deferring the acquisition of adequate life-assurance cover until a more favourable time. The greater part of the postponed demand seems to have been satisfied in 1936 and 1937, and the smaller levels of new issues in 1938 and 1939 are therefore not surprising. The amount of the discontinuances, which in 1932 actually exceeded the amount of new business written, gradually fell each year from 1932 until 1935. Thereafter, the discontinuances commenced to rise in sympathy with the increased amount of new business. The net result of the transactions for the year 1939 was an increase of £8,420,224 in the sum assured in force at the end of the preceding year, as against the corresponding rises of £8,721,537 and £12,900,997 for 1938 and 1937 respectively.

The average sum assured per new policy taken out in 1939 was £404, compared with £383 in 1938 and £404 for the average of the pro-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. There was no single obvious reason for the delay, until 1939, in regaining the pre-depression level in regard to the average sum assured, but it seems probable that a larger proportion than usual of the new policies issued from 1936 to 1938 inclusive were in the nature of smaller policies required to supplement existing but inadequate assurance cover. The per-policy average premium for new assurances in 1939 was £11 17s. 3d., compared with £11 11s. 1d. in 1938.

The corresponding figures for total assurances in force at the end of 1939 are: Average sum assured, £379; and average premium per policy, £11 14s. 7d.

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.
19351,7363,4905,4668,03340119,126
19361,8603,8054,7478,12934618,887
19372,0303,7334,2889,12752419,702
19382,2625,2574,45510,12565522,754
19392,1353,8515,2329,76572621,709
Sum assured.
 ££££££
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
1939856,157859,4801,889,0023,748,348531,0407,884,027

The outstanding feature of the 1938 figures was the phenomenal rise in maturities, which was, however, largely due to the maturity of policies which were issued as collateral security for advances made to facilitate investment in a special loan issue during the war of 1914-18. Maturities in 1939 have reverted to the normal level. On the other hand, surrenders and “other causes” in 1939 were respectively £362,507 and £161,614 in excess of the 1938 totals for these two causes, and, in consequence, the total discontinuances for 1939 were only £338,142 less than those recorded in 1938. The total amount written off during 1939 represents 5.62 per cent. of the amount in force at the end of the previous year, compared with the corresponding figure of 6.25 per cent. for 1938.

Reducing the sums assured in the foregoing table to a percentage basis, the following result is arrived at:—

Year.Death.Maturity.Surrender.Lapse.Other Causes.Total.
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
193910.8610.9023.9647.546.74100.00

Discontinuances during 1939 because of death accounted for 0.61 per cent. of the total amount in force at the end of 1938, maturity for 0.61 per cent., surrender for 1.35 per cent., and lapse for 2.07 per cent.

A statement of the aggregate revenue and expenditure of all the companies operating in the Dominion, so far as ordinary business is concerned, further illustrates the progress of business during the last five years. The ratio of management expenses to premium and to total revenue is also given.

Year.Revenue and Expenditure.Expenses of Management.
Total Revenue, excluding Transfers.Total Expenditure, excluding Transfers.Excess of Revenue.Amount.Proportion to Premium Income.Proportion to Total Revenue.
 ££££Per Cent.Per Cent.
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
19396,828,7234,093,8252,734,898685,53713.9510.04

Excluding commission, the ratio of management expenses to premium income was 7.83, 7.75, 7.48, 7.46, and 7.29 respectively for the years 1935 to 1939 inclusive.

ORDINARY LIFE ASSURANCE.—REVENUE AND EXPENDITURE (EXCLUDING TRANSFERS).

1935.1936.1937.1938.1939.
Revenue.£££££
Renewal premiums3,129,6083,341,3203,689,6823,992,8614,211,830
New premiums522,645721,065830,946695,212700,797
Consideration for annuities169,849193,942160,091105,035107,570
Interest1,558,5881,660,6461,688,3771,735,4151,806,568
Other revenue5,41042,7886,3293,2871,958
  Total revenue5,386,1005,959,7616,375,4256,531,8106,828,723
      
Expenditure.     
Claims by death and maturity1,979,0322,124,9882,187,6963,447,2762,358,170
Annuities64,00976,56789,08695,81499,144
Surrenders557,141522,782442,729441,954534,047
Cash bonuses61,64255,27346,50746,46260,076
Management544,079654,047731,766700,273685,537
Taxes130,565165,464195,476210,734242,566
Other expenditure28,23533,18722,59353,035114,285
  Total expenditure3,364,7033,632,3083,715,8534,995,5484,093,825

The withdrawal of moneys invested in assurance policies by the surrender of policies and the cashing of bonus additions to the sums assured was on a much higher level in 1939 than it had been in the two preceding years.

INDUSTRIAL ASSURANCE.

In recent years the fluctuations in the amounts of new business have occurred one year later in the Industrial Branch than in the Ordinary Branch. The largest increase over the figure for the previous year was recorded in 1937 in the Industrial Branch, as against the year 1936 for the Ordinary Branch. Similarly, the decrease of £564,564 for the year 1939 in the new industrial business corresponded with the fall which took place in 1938 in regard to new issues of the Ordinary Branch. The rises in the sum assured discontinued by maturity and by surrender were responsible for the increase of £107,739 in the total industrial discontinuances for 1939 as compared with 1938. The 1939 ratio of discontinuances to new issues was 70 per cent., as against the corresponding figure of 56 per cent. for the previous year.

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.
  ££ ££ ££
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
193352,2232,380,142144,98338,7141,960,311123,559288,64713,807,697811,739
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
193953,5312,998,260177,67237,1502,098,586126,907443,31721,675,4341,273,702

As a result of the year's transactions, the amount in force has increased by £899,674 compared with the previous year's increase of £1,571,977.

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 1937 and 1938, however, the 1930 level was almost regained, the 1937 averages being £53 and £3 3s. 6d. and those for 1938 £54 and £3 4s. 4d. respectively. As far as the sum assured was concerned, this objective was reached in 1939, when the average was £56, but the annual premium of £3 6s. 5d. was slightly less than in 1930.

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.
19351,9575,1632,35125,49423035,195
19362,0196,0891,80623,02916033,103
19372,3707,5671,44623,49615435,033
19382,7197,6441,61324,84923937,064
19392,6489,2363,20021,86020637,150
       
Sum assured.
 ££££££
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
1939100,677409,461152,3721,419,16316,9132,098,586

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 5.62 per cent. of the amount in force at the end of 1938 became void during 1939, the corresponding percentage for industrial assurance was 10.10. The cause showing the greatest difference in this respect is “lapses,” the proportions of total discontinuances for 1939 being 47.54 per cent. for the Ordinary Section and 67.62 per cent. in the Industrial Section, and the percentages of the amount in force at the end of 1938 lapsing being 2.67 and 6.83 respectively.

INDUSTRIAL ASSURANCE.—REVENUE AND EXPENDITURE.

Year.Revenue and Expenditure.Expenses of Management.
Total Revenue, excluding Transfers.Total Expenditure, excluding Transfers.Excess of Revenue.Amount.Proportion to Premium Income.Proportion to Total Revenue.
 ££££Per Cent.Per Cent.
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
19391,574,0681,089,990484,078373,74330.0823.74

The difference between the ratio of management expenses to premium income in the Industrial Branch and the corresponding ratio in the Ordinary Branch is largely accounted for by the high cost of collection of premiums in the Industrial Branch, principally in the shape of renewal commission. In 1939 the Ordinary Branch commission (new and renewal) was equivalent to 6.66 per cent. of the premium income, and in the Industrial Branch to 18.96 per cent. Excluding commissions, the ratio of management expenses to premium income is 11.12 per cent. in the Industrial Branch, as against 7.29 per cent. in the Ordinary.

INDUSTRIAL ASSURANCE.—REVENUE AND EXPENDITURE (EXCLUDING TRANSFERS).

1935.1936.1937.1938.1939.
Revenue.£££££
Premiums901,507976,4851,077,0971,178,3621,242,532
Interest241,530266,717283,112299,341322,546
Other revenue7,1466,3587,4628,7138,990
Total revenue1,150,1831,249,5601,367,6711,486,4161,574,068
      
Expenditure.     
Claims by death and maturity300,657350,672437,771485,701585,762
Surrenders42,75130,77926,44726,60253,663
Management295,800319,454351,199370,564373,743
Taxes19,64724,93729,84433,11634,393
Other expenditure12,6797,5168,21516,91142,429
Total expenditure671,534733,358853,476932,8941,089,990

LIFE ASSURANCE DEATH-RATES.

The following table shows for the period 1930-39 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.
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
19395.155.515.35
Decennial average5.605.445.51

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 of revenue 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 decreases in 1938 and 1939, when compared with the year 1937, in both the “Other liabilities” and “Other assets” in the two following tables are accounted for by the fact than one company, which had previously furnished separate balance-sheets for the ordinary and industrial departments, has, for the two latest years, presented a combined balance-sheet. The principal asset of the industrial balance-sheet of this company 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 1939, as compared with the two preceding years, were as follows:—

 1937.1938.1939.
 £££
Paid-up share capital225,650225,778220,797
Life assurance and annuity funds46,396,66247,951,99951,102,744
Depreciation, reserve, and other special funds721,223711,521743,297
Claims admitted but not paid310,827387,723332,856
Other liabilities1,420,006484,405423,204
Totals£49,074,368£49,761,426£52,822,898

The New Zealand assets at the end of each of the three years 1937-39 were:—

Assets.Amount.Proportion to Totals.
1937.1938.1939.1937.1938.1939.
 £££Per Cent.Per Cent.Per Cent.
Mortgages on property10,466,62011,148,07812,079,82821.3322.4022.87
Loans on policies5,680,0455,534,5105,613,05811.5811.1210.63
New Zealand Government securities8,664,5028,613,17510,265,38317.6617.3119.43
Securities of other Governments89,839696,320108,1910.181.400.21
Municipal and local authorities' securities18,201,37818,008,06518,672,99737.0936.1935.35
Landed and house property2,087,5822,395,7222,372,8584.254.814.49
Other investments115,624492,891554,7940.240.991.05
Loans on personal security1,1379961,7020.000.000.00
Agents' balances10,09213,4609,2220.020.030.02
Outstanding premiums389,711415,270417,0850.790.840.79
Interest accrued, &c.481,352515,404530,0410.981.041.00
Cash642,144488,426778,0531.310.981.47
Other assets2,244,3421,439,1091,419,6864.572.892.69
Totals49,074,36849,761,42652,822,898100.00100.00100.00

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 total income of the Department for 1939 was £1,317,184—viz., premium income, £815,286; net interest and rents £470,816; annuity purchase money, £31,082.

During the year 1939 payments (including bonus additions) to the value of £359,976 were made on account of matured policies, and £225,000 was paid out to representatives of deceased policyholders. Commission totalled £48,423 and other expenses of management £72,960, making the total management expenses £121,383. The ratio of expenses to total income was 8.55 per cent., and to premium income 13.31 per cent.

Details of new business and policies in force during each of the last five years appear in the table hereunder:—

Year.New BusinessPolicies in Force at End of Year.
Number of Policies.Premiums.Sum assured.Number of Policies.Premiums.Value of Business.
Sum assured.Bonuses.Total.
  ££ ££££
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
19397,90154,3702,945,99190,081764,45129,787,3933,619,29833,406,691

The Department's balance-sheet on the 31st December, 1939, showed that the total assets amounted to £11,466,093, and were invested as shown in the following statement, which also gives the distribution of the assets at the end of the two preceding years for purposes of comparison:—

Class of Investment.Amount.Proportion to Totals.
1937.1938.1939.1937.1938.1939.
* Mainly due and overdue premiums and interest, and interest accrued.
 £££Per Cent.Per Cent.Per Cent.
Mortgages on freehold property4,575,8544,721,7584,964,78042.1642.7143.30
Loans on policies1,242,9271,240,1741,249,41811.4511.2210.90
Government securities2,519,1602,532,8612,679,62323.2122.9123.37
Local authorities' securities1,798,3221,759,5801,740,36916.5715.9215.18
Landed and house property394,268492,386503,6343.634.454.39
Miscellaneous assets*228,577226,265220,2242.112.051.92
Cash in hand, on current account, and on deposit94,30582,141108,0450.870.740.94
Totals10,853,41311,055,16511,466,093100.00100.00100.00

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.

REVENUE AND EXPENDITURE.

The number of insurance offices transacting accident business in New Zealand in 1939 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 230, and the total number of agencies was 15,134.

The 1939 premium receipts were £204,342 (8 per cent.) greater than in 1938, a smaller increase than was the case in the previous year when the 1937 premiums were exceeded by £381,889 (18 per cent.). Claims in 1939 were £41,287 less than in 1938, whereas the total for the latter year exceeded the 1937 figure by £130,539. Expenses other than claims amounted to £874,362 in 1939, the net result for the year being an excess of premium receipts over expenditure to the extent of £319,041. In 1938 the corresponding figure was £170,783, while in 1937 and 1936 expenditure actually exceeded premium income.

Year.Number of Offices.Revenue.Expenditure.
Premiums.Other Revenue.Total.Claims.Commission.Salaries.Other Expenses.Total.
  ££££££££
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
1939582,711,438108,1642,819,6021,518,035300,901270,193303,2682,392,397

An interesting review of the expenses incurred in transacting accident insurance is contained in the table following. The fluctuations over a period of five years are shown in percentages of revenue to expenditure 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 Revenue.
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
193955.9911.109.9611.1832.2488.2384.85

The substantial increases in premiums during the last two years have not been accompanied by a commensurate increase in claims, with the result that the ratio of claims to premiums has fallen from 67.23 per cent. in 1937 to 55.99 per cent. in 1939. The greater amount of business in all classes of accident insurance has also, commencing from the year 1935, progressively lessened the unitary cost of transacting business. In this connection it is perhaps pertinent to mention that for the compulsory third- party- risks insurance, which in 1939 contributed approximately one-third of the premiums derived from motor-vehicle insurance, a fee of sixpence per nomination is the only commission payable. It will be noted that for 1939 the ratio of expenses (other than claims) to premiums shows a small increase. This is, however, attributable to the increase in the amount of taxation.

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.
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
19391,041,970206,5191,489,168113,2872,850,944
Claims.
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
1939580,08378,774888,45921,4411,568,757

Compared with 1938, gross premium income in 1939 increased by 9 per cent., as against an increase of 17 per cent. in 1938.

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 and 1939 premiums for 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.
1937.1938.1939.1937.1938.1939.1937.1938.1939.
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
Employers' liability57.8558.7955.6737.7435.8836.5533.2334.5036.98
Personal accident38.4841.3638.148.577.837.245.025.305.02
Motor-vehicle79.9268.4559.6649.6752.4452.2460.4258.7256.63
Other forms21.6723.5318.934.023.853.971.331.481.37
All classes65.7061.1355.03100.00100.00100.00100.00100.00100.00

The 1939 ratios of claims to premiums for employers' liability, personal accident, and “other forms” were the lowest recorded during the last ten years.

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. The welcome decline shown in 1938 was followed by a further substantial reduction in this ratio for 1939.

MORTGAGEES' INDEMNITY INSURANCE.

The Mortgagees' Indemnity (Workers' Charges) Act, 1927, provides that when mortgages are presented for stamping an additional stamp duty of 1s. 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 foe 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 doomed to be complete on the payment of the premium.

The unfavourable claims-experience of certain types of vehicles during recent years have resulted in revisions of the premium rates. The present rates, which came into force on the 1st June, 1939, include the following: Trailers, 6s.; tractors, traction-engines, 10s.; motor-cycles, £1; private motor-cars, £1 6s.; private motorcars used wholly or in part for the purpose of trade or business, £2 13s.; motor-vehicles (other than trailers and motor-cycles) used by fire brigades, 18s.; hearses, ambulances, &c., £1; trade motors, £1 18s.; manufacturers' and dealers' motor-vehicles, £2; public motor-vehicles, £6, with a varying scale upwards to a maximum premium payable of £7 16s. according to seating-capacity; contract vehicles, rental cars, £3, with a maximum premium payable of £4 12s.; private and public motor-cabs, £7 10s. and £10 respectively. These rates are, in most instances, substantially higher than those previously charged for the same class of vehicle.

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 relative of the owner, by any person in the service of the owner at the time of the accident, or by a passenger. The indemnity does, however, cover the case of a passenger for hire in a vehicle plying for hire or carrying passengers for hire.

The following particulars give the experience of the last five years, with a summary covering the eleven 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 1937-40 include amounts on account of the estimated liability in respect of claims still outstanding at 31st May, 1940, 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 the insurance companies usually overestimate this liability, and the figures when finalized, particularly for the latest years (1939 and 1940), may be expected to be considerably less than the amounts now given.

Registration Year ended 31st May,Total for Eleven Years (since Inception).
1936.1937.1938.1939.1940.
 ££££££
Premiums received230,696257,559289,891348,291448,7952,949,408
Claims paid and estimated liability in respect of claims outstanding at 31st May, 1940255,648319,905303,386397,321427,4792,788,003
Ratio per cent. of claims paid and outstanding to premiums1111241051149595

A certain amount of the improvement on the claims side during the last three 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 revenue and expenditure during the last five years is contained in the following table:—

Year.Revenue.Expenditure.
Premiums.Other.Total.Claims.Other.Total.
 ££££££
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
1939261,12320,198281,321167,67262,108229,780

The premium income of the State Accident Insurance Office has increased tremendously during the last two years, the receipts for 1939 being no less than 76.8 per cent. greater than in 1937. The corresponding increase for all offices combined was 27.6 per cent.

The total assets at 31st December, 1939, amounted to £668,297, the two largest items being New Zealand Government securities, £212,515; and local-authority securities, £209,889. Reserves and funds at the end of 1939 totalled £524,275.

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. Part II of the Insurance Companies Act, 1940, provides that, in the case of insurance companies of doubtful solvency, inspectors may be appointed to investigate and report on the affairs of the company. 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 1939, 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.

Until the passing of the Insurance Companies Act, 1940, no deposit was required from an insurance company incorporated in New Zealand in respect of fire and accident insurance business, unless the company acted merely as an agent for overseas underwriters, or had, since 1933, commenced motor-vehicle third-party-risks insurance business. Part I of this Act provides that any New Zealand company which, after the passing of the Act, commences in New Zealand any of the specified classes of business, must deposit with the Public Trustee in money the following amounts: In respect of fire insurance, £22,500; employers' liability insurance, £22,500; and all other classes (except motor-vehicles third-party-risks insurance), £5,000. A New Zealand company which, at the commencement of the Act, was carrying on any of the classes of business referred to above, is required deposit a sum of £1,000 together with a further £1,000 for each complete £2,500 of premium income derived from each class of business during its last financial year. Provision is made for revision of amount of deposit consequent on increase or decrease in business. The maximum deposit is that which would be paid by a newly established company.

The maximum deposits of New Zealand companies are now the same as those required from British companies commencing business in New Zealand after the passing of the Insurance Companies Deposits Act, 1922, and its amendment, also of 1922. This last-mentioned Act also provides that a foreign company, before commencing business in New Zealand, must deposit in money the sum of £50,000 which covered all classes of business other than life or marine.

Since 1927 agents operating in New Zealand on behalf of overseas underwriters have been required to make deposits similar in amount to those specified for British, companies under the principal Act of 1922.

The Finance Act, 1933 (No. 2) required any company thereafter undertaking business in terms of the Motor-vehicles Insurance (Third-party Risks) Act, 1928, to deposit the sum of £10,000. This requirement is, in effect, extended by the Insurance Companies Act, 1940, under which every company undertaking this class of business must, unless it has made the deposit required by the Finance Act, deposit £1,000, together with £1,000 for each complete £2,500 of premium income from such business. The maximum deposit is £10,000.

Deposits which are required before a new class of business can be commenced must be in money, while deposits now required in respect of business already carried on may be, at the company's option, either in money or in approved securities.

Life and marine businesses are not affected by the provisions mentioned in the preceding paragraphs.

The capital amount of deposits held by the Public Trustee on the 31st March, 1940, 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 £351,000,000.

Liabilities.Totals.
Overseas Companies.Local Offices.Mutual Associations.
* These figures in the case of mutual associations relate to premium-note capital.
 ££££
Paid-up capital32,153,4003,258,198*253,20835,664,806
Reserves227,874,8787,657,71463,994235,596,586
Other liabilities79,151,5501,373,9642,82180,528,335
Totals339,179,82812,289,876320,023351,789,727
Life funds688,268,5473,565..688,272,112
Total liabilities (and assets)1,027,448,37512,293,441320,0231,040,061,839

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 figures given include all investments in New Zealand and do not relate merely to the assets held by the New Zealand branches of the companies concerned.

Assets in New Zealand.1937.1938.1939.
 £££
House and landed property1,146,0491,228,4451,210,895
New Zealand Government securities6,418,0336,632,2966,489,352
New Zealand local-authority securities1,932,7671,601,1391,666,670
Mortgages, &c.345,905368,704352,033
Outstanding premiums407,735416,812454,073
Cash and other assets in New Zealand3,079,7543,084,8913,405,995
Total New Zealand assets13,330,24313,332,28713,579,018

SUMMARY OF BUSINESS.

The gross amount of new and renewal business underwritten during 1939 was £91,000,000 (19 per cent.) more than it was three years previously, but the gross premiums charged for underwriting the 1939 business were only £97,000 (5 per cent.) in excess of the 1936 figure, the average rate of premium having fallen from 7s. 11d. per £100 of cover to 7s. during the period.

1937.1938.1939.
* Excluding reinsurances accepted from other offices.
Offices in New Zealand.   
Number of separate companies434343
Number of branches174180182
Number of agencies15,39515,02115,039
    
Amounts underwritten.   
Gross amount of insurance cover in force in New Zealand on 31st December*£452,031,609£475,425,825£494,425,344
Number of policies representing the foregoing*768,052778,886809,428
Gross amount of new and renewal business underwritten during year*£510,873,831£530,083,545£566,146,819
Number of policies representing the foregoing*826,734834,028871,526
    
Premiums.   
Total gross premiums charged on business (new and renewal) underwritten during year*£1,810,554£1,870,739£1,980,244
Percentage of gross premiums to total amount of business underwritten7s. 1d.7s. 1d.7s. 0d.
Total premiums (as shown above), less premiums refunded to insured other than to other offices£1,678,055£1,749,331£1,849,866
    
Losses.   
Total number of separate fire losses with which offices were concerned7,2687,3757,702
Gross losses£446,346£613,185£625,141
Percentage of gross loss to amount underwritten (new and renewal) during year (as shown above)0.090.120.11
Percentage of gross loss to total premiums, less refunds to insured (as shown above)26.6035.0533.79
Average loss£61£83£81

The table hereunder shows the position of premium income and fire losses during the ten years ended 1939. Until the year 1938 there was an unbroken sequence of decreases in the amount of fire losses, the total for 1937 being only one-third of the amount sustained in 1928, the year in which fire losses were the highest yet recorded. A substantial increase took place in 1938, followed by a further slight rise in 1939. The loss ratio for 1939, however, was slightly below that for 1938.

Year.Premium Income.Fire Losses.Percentage of Loss.
 ££ 
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
19391,849,866625,14133.8

REVENUE AND EXPENDITURE.

A statement of the total revenue and expenditure, 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.

1937.1938.1939.
Gross.Net.Gross.Net.Gross.Net.
* The gross figures are inclusive of reinsurance premiums from other offices.
Revenue,££££££
Reserve to meet unexpired risks as at beginning of year832,082558,095792,038534,250845,828550,145
Amount of fire premiums receivable during year*1,904,7161,185,9091,998,6331,226,8112,112,1341,287,813
Interest and dividends on stock, mortgages, &c.84,72084,72079,87979,87978,02178,021
Rents18,80618,80622,64622,64625,28225,282
Other revenue5,3905,3908468461,3161,316
    Totals2,845,7141,852,9202,894,0421,864,4323,062,5811,942,577
       
Expenditure.      
Amount of fire losses incurred during year, including adjustment and other expenses of settlement, but less salvage and amounts covered by reinsurance446,346321,329613,185398,206625,141399,186
Fire Board levies82,29964,77591,96670,68495,82775,542
New Zealand Government taxes114,12698,328114,51696,237158,898132,674
Local-authority rates2,6442,3732,5202,1812,4152,138
License fees5,7665,0885,3284,7805,1234,735
Rents19,93818,45219,36918,15420,49419,249
Allowances and commissions on premiums to agents, sub-agents, and others208,12690,877216,87591,190223,03994,410
Salaries and wages, including commissions on profits or bonuses237,605220,433235,796216,980238,501219,082
Other expenses of management118,720107,780118,109108,256123,603111,623
Reserve to meet unexpired risks as at the end of the year793,435535,383845,828550,145890,649570,382
Other expenditure4,0274,0273,8853,885....
    Totals2,033,0321,468,8452,267,3771,560,6982,383,6901,629,021

A summary of the net revenue and expenditure for 1939 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 companies708,116728,275256,595171,462609,571
Local companies555,109637,700135,533133,935428,293
Mutual associations24,58826,4577,0588,09520,775
    Totals1,287,8131,392,432399,186313,4921,058,639

The net premium income and the total net income have, in comparison with the corresponding figures for 1938, increased by £61,002 and £62,250 respectively.

The excess of net revenue over net expenditure for 1939 amounted to £333,793, as compared with the surpluses of £319,629 and £361,363 for 1938 and 1937 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 1935-39.

Items.1935.1936.1937.1938.1939.
 Per Cent.Per Cent.Per Cent.Per Cent.Per Cent.
Net working-expenses (excluding taxes) to net premium income43.9843.2742.9941.7540.90
Net working-expenses (excluding taxes and Fire Board levies) to net premium income39.7938.8537.5235.9935.04
Gross working-expenses (excluding taxes) to gross premium income (including reinsurances from other offices)35.9735.5335.4434.5233.57
Gross working-expenses (excluding taxes and Fire Board levies) to gross premium income (including reinsurances from other offices)32.5932.0431.1229.9229.03

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. A small increase in premiums, together with a slightly reduced expenditure, resulted in a slight improvement in the 1935 ratio, while in 1936 and in 1937, although there way a reduction in premium income, the decrease in working-expenses was sufficient to produce still lower ratios. The downward movement continued during 1938 and 1939, increases in expenditure being offset by relatively greater increases in premium income.

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 1939 ratio on the net figures from 40.90 to 35.04 per cent.

FIRES AND LOSSES.

The table following gives figures of fires and losses during each of the ten years ending 1938. 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.

The increase in the fire losses for 1938 is entirely attributable to the effect of fires where the amount of loss as £5,000 or over. There were, in 1938, 15 of these fires with an average loss of £14,000, compared with the annual average of 7 such fires and £9,000 loss per fire during the preceding four years. No special significance in regard to the general fire loss position can therefore be attached to the 1938 fire loss increase.

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 12½12; per cent. for this purpose, and on this assumption the Dominion's property loss through fire in 1938 is estimated to have amounted to £671,000 compared with £520,000 in 1937, 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.
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
19344,546164,6414,674,747504,21110.79
19355,147265,2864,863,179539,92011.10
19365,318195,4356,248,835465,8047.45
19375,967166,0748,261,471463,0175.60
19385,956216,0877,004,699596,2678.51

The next table shows for each of the four principal urban areas and the remainder of the Dominion the fires and losses for 1938:—

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 area69737051,128,79062,0195.49
Wellington urban area1,01821,0282,175,52245,5992.10
Secondary urban areas6151624577,60454,9079.51
Remainder of North Island1,11371,159825,808185,48222.46
  Totals for North Island3,443133,5164,707,724348,0077.39
       
South Island.      
Christchurch urban area6471655647,271106,83916.51
Dunedin urban area654..660769,01920,1682.62
Secondary urban areas3411346288,08415,6305.43
Remainder of South Island8406879585,421105,13617.96
  Totals for South Island2,48282,5402,289,795247,77310.82
Floating, transit, and travelling31..317,1804876.78
  Totals for Dominion5,956216,0877,004,699596,2678.51

Compared with 1937, gross fire-loss increases amounting to £27,123, £3,344, £76,668, and £9,407 are recorded for the Auckland, Wellington, Christchurch, and Dunedin urban areas respectively.

Losses in the North Island during the year rose by £55,421, and in the South Island an increase of £77,865 was shown.

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 charged.

The following table shows the amount of fire-insurance claims paid per head of population during the period 1934-38.

District.1934.1935.1936.1937.1938.1934-38 (Annual Average.)
* Includes floating, transit, and travelling risks.
North Island.s.d.s.d.s.d.s.d.s.d.s.d.
Auckland urban area4369211335847
Wellington urban area3530405651044
Secondary urban areas465694517866
Remainder of North Island112110777118191
Totals for North Island7480636171611
             
South Island.            
Christchurch urban area442121146151060
Dunedin urban area5104115527411410
Secondary urban areas4655855653510
Remainder of South Inland838272818879
Totals for South Island511511606281167
Totals for Dominion*6973626179610

CAUSES OF FIRES.

From 1924 onwards particulars regarding causes of fires have been obtained from insurance offices, and the summarized results for the quinquennium 1934-38 are contained in the following table:—

Cause of Fire.Urban Areas.Remainder of Dominion.Total.
Number of Separate Fires.Loss.Number of Separate Fires.Loss.Number of Separate Fires.Loss.
* Included in various causes from which spread.
  £ £ £
Electricity3,04277,767945104,8203,987182,587
Gas6459,6007759572210,195
Naked lights2808,04442016,45670024,500
Defective chimneys and kindred causes86553,125963281,4361,828334,561
Smoking, and careless use of matches2,20275,97385962,9493,061138,922
Sparks from fireplaces7,07484,5843,252155,73410,326240,318
Heating, boiling-down32212,0751438,36046520,435
Use and misuse of highly inflammable spirits and materials46537,47323921,57470459,047
Incendiarism and arson5213,6707619,16412832,834
Outside causes49817,95038348,10988166,059
Other causes823,176271,4451094,621
  Totals, known causes15,527393,4377,384720,64222,9111,114,079
Fires spread from other buildings *22920,65926554,62049475,279
Floating, travelling, and transit risks........2036,280
Unknown causes1,587629,1762,233819,6833,8201,448,859
  Totals17,1141,022,6139,6171,540,32526,9342,569,218

In all there were 26,934 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, 203 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 22,911 cases, leaving 3,820, or 14 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 such losses are included in the total of unknown causes.

Provision exists for coronial inquiries into fires of suspicious origin, but, as will be seen from page 164, 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.

EXTENT OF LOSS.

The following table gives particulars of fire losses during the five years 1934-38, classified according to the amount of loss. No fewer than 23,462 fires, out of a total of 26,934, resulted in a loss of less than £100; while in 19,537 cases, or 73 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 2.07 per cent. and those under £100 for 6.66 per cent. of the total amount paid out. On the other hand, only 1.68 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 46.94 per cent. of the total. Corresponding figures for fires in which the loss was £5,000 or over are 0.16 per cent. and 17.54 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.
Under1019,53713,673,44553,24232.07
10 and under252,2374,208,11634,142151.33
25 and under509602,698,56433,744351.31
50 and under1007282,890,61550,141691.95
100 and under2007911,119,070111,6671414.35
200 and under300513496,453124,8322434.86
300 and under400393935,674135,5323455.28
400 and under500368418,977163,5204446.36
500 and under7506471,096,348392,50360715.28
750 and under1,000308545,204263,96385710.27
1,000 and under2,0002851,036,073383,6151,34614.93
2,000 and under3,00074406,654177,6372,4006.91
3,000 and under4,00035273,912119,1833,4054.64
4,000 and under5,00016167,67474,9174,6822.92
5,000 and over 421,086,152450,58010,72817.54
Totals 26,93431,052,9312,569,21895100.00

The table hereunder shows the daily incidence of fires during the year 1938. For classification purposes, a day is regarded as commencing at midnight.

Day of Week on which Fire occurred.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.
  ££s.d.£s.d.Per cent.
Sunday768808,843115,849174150161119.43
Monday988968,493113,9441201156719.11
Tuesday8571,023,94062,3771347215910.46
Wednesday8101,588,93272,886368919812.23
Thursday853919,85463,7537974141010.69
Friday819732,15373,76807901512.37
Saturday846934,82493,62831011013515.70
Not stated1527,6605815631840.01
Totals5,9567,004,699596,266131010023100.00

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 1939 this figure had risen to £256,282, and reserves and funds at 31st December, 1939, totalled £1,191,175.

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.

Apart from claims, and the bonus rebates which totalled £37,201, the principal items of expenditure for 1939 were as follows: Working-expenses, £58,232; Fire Board contributions, £11,365; and income-tax, £51,273.

Year.Net Premium Income.Total Net Income.Net Losses.Accumulated Funds.Assets.
 £££££
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
1939205,539256,28239,4431,191,1751,333,243

FIRE BRIGADES.

The following table gives particulars of fire brigades (including branches) in the Dominion for each of the last five years:—

Year.Stations.Officers.Men.Total Personnel.
19351714652,1252,590
19361734892,1002,589
19371724912,0472,538
19381714992,0522,551
19391745692,2932,862

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, Social Security, Pensions, 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.
1937.1938.1939.1937.1938.1939.
*Membership figures relate to “actuarial ” societies only.
Manchester Unity Independent Order of Oddfellows26727127138,85039,27637,519
Independent Order of Oddfellows22122322314,01614,05613,470
National Independent Order of Oddfellows332208209198
British United Order of Oddfellows111848078
Ancient Order of Foresters16516516420,43920,35719,413
United Ancient Order of Druids14814814822,54522,78621,980
Independent Order of Rechabites6869695,6535,6835,526
Order of Sons of Temperance101010620619604
Sons and Daughters of Temperance111143141135
Hibernian- Australasian Catholic Benefit Society9593934,9945,0154,712
Protestant Alliance Friendly Society of Australasia141414963956904
Grand United Order of Oddfellows141414582621576
Isolated friendly societies7678773,791*3,910*3,944*
Working-men's clubs131314......
International Order of Good Templars111111......
Specially authorized societies151516......
Totals1,1221,1291,128112,888113,709109,059

Annual returns of receipts, expenditure, &c., of lodges are required by law. For the year 1939 the Registrar of Friendly Societies received returns from 964 lodges, with an aggregate membership of 109,059 at the end of the year, as compared with 966 lodges and 113,709 members for 1938. During the year 2,622 members were admitted by initiation, &c., and 1,244 by clearance; 1,060 died, 1,302 left by clearance, and 6,154 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 decrease in each of the following three years, the number at the end of 1933 being 100,237. A series of increases then commenced, the 1930 level being passed in 1936, and by 31st December, 1938, a total of 113,709 had been reached. In 1939, however, a decline of 4,650 (4.1 per cent.) as compared with 1938 was recorded.

The statistics given subsequently relate to the lodges (964 in 1939) 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.
19358878.643643.55
19369518.953733.51
19371,0079.074033.63
19381,1089.734023.53
19391,0609.474113.67

The number of members sick during 1939 was 25,677, representing 24.2 per cent. of members at risk. The sickness experienced during the year aggregated 311,595 weeks, equal to 12 weeks 1 day per sick member, and 3 weeks for each member at risk.

FUNDS OF FRIENDLY SOCIETIES.

The total funds of the societies and branches as at the 31st December, 1939, amounted to £5,407,601, made up as follows:—

Funds invested at Interest.£
Funds.£
Sick and Funeral Funds4,392,753
Surplus Appropriation Funds, &c.572,093
Management Funds, goods, &c.239,348
Widow and Orphans' Funds36,288
Distress, Benevolent Funds, &c.167,119
 £5,407,601
  
Assets.£
Investments at interest4,741,504
Value of land and buildings474,188
Cash not bearing interest135,042
Value of goods20,685
Other assets30,876
Owing by Management Funds5,306
 £5,407,601

There has been over many years a continuous increase in the amount of accumulated funds standing to the credit of friendly societies, the increase in the last ten years amounting to £1,480,168, or 37.7 per cent. The average capital per member has also appreciably increased, the gain in the last ten years amounting to £12 4s. 8d. (32.8 per cent.) despite the increase 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. Conversely, the substantial fall in membership in 1939 has been responsible for the outstanding increase of £3 3s. 1d. in the figure for average capital per member as compared with the previous year.

Year.Total Funds.Average Capital per Member.
 ££s.d.
19304,130,11738109
19314,277,7154099
19324,398,15843111
19334,538,0954556
19344,676,4274689
19354,812,7874690
19364,956,94845175
19375,120,1254571
19385,280,4724689
19395,407,60149118

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.
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
19395,407,6014,297,449245,167120,16578,7234,741,50487.68

The figures of Sick and Funeral Funds and the rate of interest earnings thereon during 1939 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, 1938.31st December, 1939.1938.1939.
 ££££
M.U.I.O.O.F.1,500,5571,460,8094.664.66
I.O.O.F421,032410,1784.824.50
N.I.O.O.F.5,2485,0780.134.58
B.U.O.O.F.6,3556,3644.724.32
A.O.F.791,223804,9954.264.53
U.A.O.D.1,152,4181,177,1504.384.39
I.O.R.215,013222,2764.534.55
O.S.T.32,48633,3084.815.15
S.D.T.11,97912,0524.864.90
H.A.C.B.S.135,534141,1824.464.24
P.A.F.S.A.56,92358,2024.264.14
G.U.O.O.F.6,4677,0074.664.83
Other societies61,04554,1524.194.80
Totals4,396,2804,392,7534.514.53

Receipts and expenditure of Sick and Funeral Funds for 1939 are quoted below. Members' contributions showed a decrease of £12,093 as compared with 1938, while the amount paid out on account of sick-pay increased by £2,238.

Receipts.£
Members' contributions196,450
Interest and rent194,600
Repayments by central body91,774
Other receipts35,655
 £518,479
Expenditure.£
Sick-pay to own members190,149
Funeral donations51,068
Contributions and levies to central body93,252
Other expenditure187,537
 £522,006

Members' contributions averaged £1 15s. 3d. per member, and interest and rent receipts amounted to £1 14s. 11d. per member, reckoned on the mean number of members for the year. Sickness benefits paid averaged £7 8s. 1d. per member sick, or £1 14s. 2d. when averaged over all members, while funeral benefits represented 9s. 2d. per member.

Receipts and expenditure of Medical and Management Funds for 1939 are shown hereunder, a surplus of £4,258 for the year being recorded:—

  
Receipts.£
Contributions of own members254,154
Interest and rent5,001
Other receipts13,431
 £272,586
  
Expenditure.£
Medical attendance and medicine181,463
Expenses of management62,699
Levies to central body16,875
Other expenditure7,291
 £268,328

As compared with 1938, receipts during 1939 showed a decrease of £22,929, members' contributions having fallen away to the extent of £26,524, and interest and rent by £24, while “other receipts ” increased by £3,619. Total expenditure was £21,871 less than in 1938, a decline in the amount required for medical attendance and medicine accounting for practically the whole of this difference.

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, 1938.

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 of Return.Number of Lodges.Number of Members.Amount of Funds.Capital per Member.
    ££s.d.
New South Wales30/6/382,430212,1364,876,924221910
Victoria30/6/381,478199,6476,173,40830185
New Zealand31/12/38966113,7095,280,4724689
South Australia30/6/3888590,7172,893,328311711
Queensland30/6/3660369,3331,878,64527111
Western Australia30/6/3836226,675644,3972432
Tasmania31/12/3719125,441479,27618169

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 605-607.

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 1s. 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 1939-40 was 93, of which 58 were permanent and 35 terminating, the latter being comprised of 180 groups. Compared with ten years ago the number of permanent societies has increased by 9. The number of terminating societies has manifested a declining tendency in recent years, although the number of groups has fallen but slightly.

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:—

1935-36.1936-37.1937-38.1938-39.1939-40.
Investing Shares.     
Number of shares278,255297,336325,736359,180392,035
Members holding39,61241,46840,77647,22650,246
Aggregate value£3,569,579£3,610,933£3,768,228£3,904,339£4,058,798
Capital Shares.     
Number of shares558,068569,405580,369588,915603,001
Members holding5,1985,3675,4375,4805,692
Aggregate value£1,357,059£1,401,976£1,435,670£1,451,853£1,515,740

The average value in 1939-40 of each investing share was £10 7s. 1d., as compared with £13 18s. 8d. in 1934-35, and of each capital share £2 10s. 3d., as compared with £2 8s. 9d. five years earlier. The following is a comparison (1939-40) between permanent and terminating societies on the basis of the distribution of share-money and the number of holders of shares:—

Permanent.Terminating.Total.
Investing Shares.   
Number of shares273,925118,110392,035
Members holding17,59532,65150,246
Aggregate value£2,013,944£2,044,854£4,058,798
Capital Shares.   
Number of shares603,001..603,001
Members holding5,692..5,692
Aggregate value£1,515,740..£1,515,740

Of the total aggregate value of both investing and capital shares, amounting to £5,574,538, 62 per cent. is held in permanent societies and 38 per cent. in terminating societies. On the other hand, the number of members holding shares in permanent societies is only 42 per cent. of the total, the terminating societies' shareholders representing 58 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 1935-36 to 1939-40:—

1935-36.1936-37.1937-38.1938-39.1939-40.
Receipts.£££££
Investors' subscriptions and capital shares556,378605,791588,309584,114669,405
Advances repaid927,5951,024,6741,027,5051,084,8731,091,905
Deposits1,949,6202,203,3231,902,1101,981,5872,062,823
Interest249,646276,453300,614327,848357,033
Other receipts299,274299,801248,372266,739228,766
  Total receipts3,982,5134,410,0424,066,9104,245,1614,409,932
      
Payments.
Withdrawals490,262536,136322,999363,497362,537
Advances1,292,1251,436,8181,631,9961,753,2281,653,712
Expenses of management66,47371,21679,34285,78187,327
Deposits repaid1,769,8111,851,3381,611,9951,709,6651,853,816
Interest, dividends, &c.418,946491,142422,444417,583376,067
  Total payments4,037,6174,386,6504,068,7764,329,7544,333,459

Advances in 1939-40, although £100,000 less than in the previous year, were nearly £750,000 greater than in 1934-35, an increase of 82 per cent.

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.
  £ £ £
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
1939-4013,5107,751,4548,2572,591,03521,76710,343,089

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 three subsequent years. The average amount per loan current at the end of each of the last five years was:—

Class.1935-36.1936-37.1937-38.1938-39.1939-40.
 £s.d.£s.d.£s.d.£s.d.£s.d.
Permanent societies503475064153121549116573152
Terminating societies33111332314431913032227313175
All societies43313943521144911646314047536

Particulars of loans granted during each of the last five years are as follows:—

Year.Permanent Societies.Terminating Societies.
By Ballot.By Auction.
Number.Amount.Number.Amount.Number.Amount.Premiums.
  £ £ ££
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
1939-401,8971,144,909490243,981436207,18153,106

The premiums on loans auctioned gives an average of £25.6 per cent. for 1939-40, this—assuming the usual loan currency of twelve and a half years—being equivalent to a rate of interest of about 3½ 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 with a sharp increase of £4 per cent. in 1939-40.

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 for 1939-40, with totals for 1937-38 and 1938-39, 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.
  £ £ £ £
Permanent societies552435,316896492,811449216,7821,8971,144,909
Terminating societies—        
  By ballot6539,14715684,162269120,672490243,981
  By auction8038,37515177,63220591,174436207,181
    Totals, all societies (1939-40)697512,8381,203654,605923428,6282,8231,596,071
    Totals, all societies (1938-39)630458,6961,425709,9861,128612,2343,1831,780,916
    Totals, all societies (1937-38)726522,9401,372615,6521,332557,2963,4301,695,888

The considerable number of loans shown for other and unspecified purposes is due to the fact that some societies are 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.
 £££££
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
1939-406,765,2313,973,173235,391302,25011,276,045

ASSETS.

Year.Advances on Mortgage.Other Investments and Assets.Cash in Hand and at Bank.Total Assets.
 ££££
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
1939-4010,343,089575,354357,60211,276,045

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, 1940, was 97. During the same fiscal year the amount borrowed (exclusive of renewals) was £2,194,482 and the amount repaid £1,954,094, the corresponding amounts for the previous year being £2,280,898 and £1,956,527 respectively.

The following were the deposits with building and investment societies at 31st March, 1940:—

Rate of Interest (Per Cent.).At Call or under Three Months.Three Months and under Two Years.Two Years and over.Total.
 ££££
Nil5,889....5,889
Under 2½239,85447,399..287,253
2½ and under 35,385262,91320,000288,298
3 and under 3½452,519562,584521,2611,536,364
3½ and under 46,736..1,177,4031,181,139
4 and under 4½20,851..1,482,8371,503,688
4½ and under 5405..4,2704,675
5 and under 5½3,0881481603,396
5½ and under 610400..410
6 and under 6½279....279
7 and under 8280....280
8 and over450....450
  Totals735,746873,4443,205,9314,815,121
Average rate of interest (per cent.)2.692.853.723.40

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. 319, 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 MAY 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 the 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.

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 whose 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.

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 may be found in the 1940 issue of the Year-Book (pp. 743-47).

In addition to the relief granted to mortgagors by way of adjustment of their liabilities, a reduction in interest-rates was effected by Part III of the National Expenditure Adjustment Act, 1932. The reduction in the rate of interest was 20 per cent., but the reduced rate was not to be 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. In such cases the minimum was fixed at 4½; per cent. The Act originally applied to interest accruing on or after 1st April, 1932, and before 1st April, 1935, but the reduction has since been made permanent. Mortgages (not being for a fixed term, expired or unexpired) securing the repayment of principal, moneys repayable on demand, and mortgages executed after 1st April, 1932, are exempt from the provisions of the Act.

The maximum rates of interest payable under mortgages adjusted in terms of the Mortgagors and Lessees Rehabilitation Act, 1936, were fixed by Order in Council at 4¾ per cent. per annum for first mortgages on land and 6 per cent. for all other mortgages.

APPLICATIONS UNDER THE MORTGAGORS AND LESSEES REHABILITATION ACT, 1936.

The Mortgagors and Lessees Rehabilitation Act set up a Court of Record entitled the Court of Review, and provided for the appointment of Adjustment Commissions. Orders made by these Commissions in adjustment of mortgages, &c., were registered with the Court. The following statement shows the number of applications dealt with:—

Farm.Other.Totals.
Applications filed15,62118,91234,533
Applications withdrawn3,2235,0718,294
Voluntary adjustments1,3271,3032,630
Orders made11,07112,53823,609

The next statement indicates the extent to which relief was 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

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.
 ££
192166,960,43429,464,132
193130,208,44720,056,691
192234,789,32413,234,365
193213,410,58110,036,385
192326,031,59614,579,767
19339,161,6638,149,355
192437,862,41922,246,512
19347,802,8539,086,847
192541,123,96629,733,883
193511,845,63413,732,853
192647,093,78033,958,144
193616,227,05817,553,233
192739,979,68129,233,329
193719,700,65019,803,446
192833,190,51923,998,840
193818,144,65319,361,425
192933,559,93225,269,613
193920,050,01116,598,505
193038,869,14428,328,993
194017,630,26014,102,043

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 until finally discharged despite the fact that the original amount of indebtedness has been considerably reduced.

MORTGAGES REGISTERED.

The total amount for which mortgages were registered, both under the deeds-registration system and under the Land Transfer Act, in each registration district during the last five financial years is given in the next table.

District.1935-36.1936-37.1937-38.1938-39.1939-40.
Auckland4,097,8845,806,6145,954,7566,443,9635,609,020
Gisborne722,025676,029515,222370,241475,781
Hawke's Bay1,288,4551,457,5351,087,2571,001,964891,851
Taranaki684,932931,573933,1631,034,046999,050
Wellington4,180,9544,795,2194,217,9934,705,3743,700,422
Marlborough524,462262,483247,388260,788209,969
Nelson328,739323,364347,455419,024348,350
Westland116,787139,396173,878306,948154,036
Canterbury2,810,2522,769,3823,263,6532,985,6962,814,828
Otago1,762,7491,629,2081,710,5581,978,6431,583,499
Southland834,419965,297950,7441,016,038893,649
Gross totals17,351,65819,756,10019,402,06720,522,72517,680,455
Duplications1,124,60055,4501,257,414472,71450,195
Net totals16,227,05819,700,65018,141,65320,050,01117,630,260

Ten of the eleven registration districts show decreases in the value of mortgages registered during 1939-40, as compared with the previous year, the total of net registrations for the whole Dominion decreasing by £2,419,751.

Of the gross total of £17,680,455 registered in 1939-40, £17,567,515 or 99.4 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 £17,630,260 registered for the financial year 1939-40, mortgages up to £500 in value represented 15 per cent. of the total value registered; from £501 to £1,000, 29 per cent.; from £1,001 to £5,000, 39 per cent.; and above £5,000, 17 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.
  £ £ £ £
Auckland2,804819,7852,3911,810,2571,3182,335,55166643,427
Gisborne14042,2039770,21481177,39613179,968
Hawke's Bay33693,262292221,188129257,37129320,030
Taranaki391112,068277206,085250543,52017137,377
Wellington1,803481,9091,096840,8878541,453,65890923,968
Marlborough10030,2476045,1454490,860543,717
Nelson35496,616184139,32367104,41118,000
Westland15038,2895740,4303049,317126,000
Canterbury1,652464,0491,066814,745491913,72453622,310
Otago1,654410,548703505,455346560,47014107,026
Southland498123,957400308,136208388,3501073,206
  Gross totals9,8822,712,9336,6235,007,8653,8186,874,6282993,085,029
  Duplications....11,0001022,195327,000
  Net totals9,8822,712,9336,6225,006,8653,8086,852,4332963,058,029

The total number of mortgages comprising the net aggregate was 20,608 as compared with 22,649 in 1938-39.

In addition, there were 2,052 mortgages registered in 1939-40 and 2,553 in 1938-39 for which no amount was shown. Excluding these, the average amount for each mortgage registered was £856, as compared with £885 in 1938-39.

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 1939-40 only about one-half of 1 per cent. of the total, it will be evident that the figures given 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 1939-40 of some 279 acres in the case of “country” securities.

The value of mortgages on town and suburban property registered in 1939-40 was £2,191,263 more than that on country property. In point of numbers 71 per cent. of the mortgages referred to town and suburban areas, and 29 per cent. to country properties. The average amount secured per acre on rural holdings was £4 3s. 4d., as against £1,962 in the case of town and suburban properties. The average amount of each mortgage on country property was £1,133, as compared with £620 on town and suburban holdings. The following table gives mortgages registered during the year 1939-40 under the Land Transfer Act.

District.Town and Suburban.Country.
Number.Area.Amount secured.Number.Area.Amount secured.
  Acres.£ Acres.£
Auckland4,7781,9483,108,0582,406461,6362,406,672
Gisborne216110125,969156128,321348,812
Hawke's Bay638315355,899341148,852535,952
Taranaki503161318,571549111,688680,479
Wellington3,2626962,311,676908233,3571,388,746
Marlborough1337680,429108109,246129,540
Nelson431107203,83624257,611144,314
Westland1986598,6315612,54055,405
Canterbury2,5836341,645,412868228,3891,169,416
Otago2,3615661,152,992521209,400413,057
Southland836357477,916453144,616415,733
Totals15,9395,0359,879,3896,6081,845,6567,688,126

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.TotalTown and Suburban.Country.Total.
  Acres.Acres.Acres.£££
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
193412,1922,7491,433,8921,436,6413,873,0763,779,9177,652,993
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
194022,5475,0351,845,6561,850,6919,879,3897,688,12617,567,515

MORTGAGES DISCHARGED.

Of the gross total of mortgages released in 1939-40, £14,076,219 was under the Land Transfer Act and £82,882 under the deeds-registration system. The corresponding figures for the previous year were £16,557,097 and £190,882 respectively.

The total amount of mortgages discharged for the last three years is as follows:—

District.1937-38.1938-39.1939-40.
Number.Amount.Number.Amount.Number.Amount.
  £ £ £
Auckland7,1835,900,6446,8814,796,8386,3004,011,015
Gisborne450536,160464604,436418358,622
Hawke's Bay1,2611,431,1511,033954,516945900,336
Taranaki1,1151,080,5691,2241,046,0711,0721,036,030
Wellington4,9914,408,8654,4413,773,6873,9812,870,489
Marlborough244222,102296283,707247214,475
Nelson575265,442623295,167503216,328
Westland223156,266306142,83218380,153
Canterbury3,5962,974,6023,5842,446,0693,5222,769,389
Otago2,7721,634,0252,8301,624,4892,4651,119,550
Southland1,234785,5621,323780,1671,069582,714
  Gross totals23,64419,395,38823,00516,747,97920,70514,159,101
  Duplications433,9636149,474457,058
  Net totals23,64019,361,42522,99916,598,50520,70114,102,043

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.
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
August2,4301,843,6141,9911,394,887
September2,0021,618,4231,8781,292,906
October1,8691,405,5611,8501,246,310
November2,0111,439,1851,8121,142,604
December1,8711,456,7061,6351,251,200
January970660,708975625,793
February1,5801,225,9631,5521,069,528
March1,4301,101,8021,257962,359
1940-41. 
April1,9311,524,5611,7911,406,835
May1,9991,473,9912,0481,380,781
June1,8981,611,8382,1431,467,296
July2,3511,831,1862,6831,924,572
August2,0541,622,4412,1831,504,929
September1,8271,421,3801,8661,340,729
October1,8531,315,9512,0321,374,563

RATES OF INTEREST.

Classified according to the various rates of interest, and including duplicate registrations (to the extent of £472,714 in 1938-39, and £50,195 in 1939-40) the amounts in the mortgage-deeds registered were—

Rate per Cent.1938-39.1939-40.Rate per Cent.1938-39.1939-40.
* Including State Advances and Rural Intermediate Credits.
 ££ ££
0425..5⅗21,34070
1610..5⅝590300
11..3,5505,99544,725
22,63011,2606367,807563,979
..35015,9002,365
4,92414,3846⅓..375
365,16571,1806⅖150..
250400159,807155,916
193,635156,5396⅔..313
4647,950525,6441,250..
4⅛4,231,9722,931,1307158,714126,871
1,126,869622,3587⅕..200
4⅜875..6,66013,086
4⅖5,500..839,40335,816
4,902,3734,123,0728⅓60..
4⅝464,396263,013300..
368,369632,29594,9381,600
4⅘750..1024,44214,076
4⅚725..11½36..
53,350,9064,306,06712..34
5⅕7,0967,79920180150
102,03580,875Unspecified*3,801,2792,447,758
5⅜..400   
436,419522,505  Totals20,522,72517,680,455

Exclusive of cases where the rate of interest was not specified, 1.7 per cent. of the money raised by way of mortgage during 1939-40 was at rates below 4 per cent.; 59.7 per cent. was at the rate of 4 per cent. and under 5 per cent. 32.6 per cent. was at the rate of 5 per cent. and under 6 per cent.; 4.8 per cent. was at 6 per cent. and under 7 per cent.; and 1.2 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.
19145.8219286.46
19155.7619296.46
19165.7419306.35
19175.8019316.25
19185.8419326.28
19195.8419335.88
19205.7519345.56
19215.8919355.06
19226.4219364.73
19236.5719374.60
19246.3819384.65
19256.3019394.58
19266.2219404.69
19276.47  

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.

As indicated earlier in this section (page 651), rates of interest in recent years have been considerably affected by 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 4.69 per cent. in 1939-40. 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 1939-40 were 89.7 per cent. for amounts where the rate did not exceed 5 per cent. and 2.3 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.
 ££££
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
1940783,30712,877,9351,220,653350,802
Percentage of Total.
 Per Cent.Per Cent.Per Cent.Per Cent.
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
19405.284.58.02.3

ESTIMATE OF MORTGAGE INDEBTEDNESS.

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.

On page 755 of the 1940 issue of the Year-Book will be found figures showing the estimated mortgage indebtedness on land over a period of forty years. The estimate as at 31st March, 1900, was £35,000,000, and by a series of gradual increases a maximum of £245,000,000 was reached in 1932. By 31st March, 1939, the figure had fallen to £230,000,000. and there has been no change in the estimate fur 1940. Of the £230,000,000, £105,000,000 was in respect of town and suburban lands and £125,000,000 in respect of country lands. It should be noted that these estimates relate solely to mortgages of real estate. Mortgages on stock or chattel securities are not included.

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 Government unimproved value of £500 or over, 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, 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.

Similar statistics have been previously published, the last compilation in the earlier series being that for the tax-year 1929-30. A brief summary of the statistics of previous compilations appeared in the 1935 Year-Book. More detailed figures will be found in the 1932 and earlier editions. Amendments to the land-tax law, changes in administrative practice in connection with land-tax assessments (the statistical data are extracted from the information appearing on the notice of assessment), and the consequential modification of compilation procedure have combined to impair the comparability of the current statistics with those for earlier years. The basic principles in 1939-40 were the same as in 1929-30, but the question of comparability must be considered before drawing conclusions concerning the differences in the figures appearing in the statistics for the two years mentioned.

Attention has previously been drawn to the fact that the mortgage data derived from this source are not complete. Mortgages of property other than land and fixtures thereon, although such mortgages represent a considerable part of the total mortgage indebtedness, obviously do not come within the purview of these statistics. Unregistered mortgages on land are also not included. Apart from these factors, no information is available in connection with a large percentage of mortgages secured on land, as the land-tax statistics do not cover the whole of the lands in occupation. The exemption of lands of an unimproved value of under £500 excludes all save a comparatively small proportion of the land holdings used for residential purposes only. Certain other lands, notably lands of public or local authorities: educational endowment lands; lands used for religious, charitable, educational, or scientific purposes (with some limitations); Crown lands held as small grazing-runs or for pastoral purposes: Native lands which are not occupied by a non-Native: and certain other types of lesser importance, are exempt from land-tax when in the occupation of the owner.

Crown lands generally, when leased to private individuals, are exempt from land-tax except in those fairly infrequent cases where the lessee's own assessed interest in the unimproved value amounts to £500.

To summarize the position, the statistics may be regarded, with reasonable accuracy, as covering lands sold or granted (and held on freehold) to private, as distinct from public interests, and then only those cases where the unimproved value of land owned or occupied exceeds £500. It follows that the mortgage data here given does not include the great bulk of the mortgage indebtedness of the important class of tenants under Crown leases (particulars of such leases will be found in Subsection B of Section XVII of this volume) or of the owners of the other classes of land which are exempt from land-tax.

For the purpose of mortgage statistics, land is classified into three types—viz., rural, urban, and mixed urban and rural. In practice, it is desirable to subdivide each of these classes into two on account of the fact that in a proportion of cases returns are not furnished. The six types shown in the statistics are:—

  • (a) Cases where returns are furnished—

    1. Country or farming lands.

    2. Town lands or business-sites.

    3. Partly country and partly town lands.

  • (b) Cases where returns are not furnished —

    • (4) Country or farming lands.

    • (5) Town lands or business-sites.

    • (6) Partly country and partly town lands.

In the case of mixed country and town lands where 75 per cent. or over of the total unimproved value is represented by either country or town lands (as the case may be), the whole of the land included in that return is so classed. The groups “partly country and partly town” cover only those cases where neither country nor town lands represent 75 per cent. or over of the total unimproved value. In the present tabulation this ride has been slightly modified, and those cases where there were over 500 acres of country land in a return which would, according to the rule, be classed as wholly town land, have been included in the “mixed” group.

The statistics which follow relate to the tax-year 1939-40, the position in regard to mortgages, unimproved value, and area being that obtaining on the 31st March, 1939. The first table summarizes the statistics according to each of the six types indicated above, distinguishing also between cases where the amount of unimproved value was under or over £15,000, the limit of the mortgage exemption.

Type and Amount of Unimproved Value.Number of Returns.Total Area.Unimproved Value.Total Mortgages owing.
  Acres.££
1. Under £15,00033,21715,074,75984,951,88082,371,440
  Over£15,0006112,974,45514,992,0966,290,865
    Total33,82818,049,21499,943,97688,662,305
2. Under £15,00016,31589,53128,301,49826,258,377
  Over £15,00034411,66912,790,0445,760,005
    Total19,659101,20041,091,54232,018,382
3. Under £15,000759367,1571,836,1031,429,438
  Over £15,00046174,5363,457,513699,957
    Total805541,6935,293,6162,129,395
4. Under £15,0006,1772,229,25510,576,2634,827,321
  Over £15,00095404,0082,309,607705,745
    Total6,2722,633,26312,885,8705,533,066
5. Under £15,0005,89122,9407,030,0452,559,977
  Over £15,00039905888,880494,043
    Total5,93023,8457,918,9253,054,020
6. Under £15,00020337,379356,672194,893
  Over £15,000710,977190,83224,250
    Total21048,356547,504219,143
Totals— 
  Under £15,00062,56217,821,021133,052,461117,641,446
  Over £15,0001,1423,576,55034,628,97213,974,865
    Grand totals63,70421,397,571167,681,433131,616,311

The foregoing figures reveal the extent to which returns as to mortgages are not furnished. Out of 63,704 cases covered by the statistics, returns were not furnished in 12,412 instances, or 19 per cent. of the total. The total unimproved value in these 12,412 cases aggregated £21,352,299, or 13 per cent. of the total unimproved value, but the mortgages covered (ascertained from other sources in cases where the information was available) amounted to only £8,806,299, or 7 per cent. of the total mortgages.

These figures indicate that there is probably some omission of mortgages owing to the fact that some returns are not available. The position is complicated, as the failure to furnish returns is not confined to cases where the land is unencumbered or where the non-receipt of the return cannot affect the mortgage exemption. Returns in the latter category are those where the amount of the unimproved value exceeds £15,000, at which point the mortgage exemption ceases, and those where the amount of the ordinary exemption is greater than the amount of the mortgage. The maximum ordinary exemption is £500, and it commences to diminish at £1,500 unimproved value and ceases at £2,500 unimproved value.

If it is assumed that the mortgages in those cases where the returns are not furnished bear the same relation to the unimproved value as in those cases where returns are furnished, the total mortgages for types 4, 5, and 6 would be £17,000,000, an increase of £11,000,000 over the amount shown in the statistics. The extent to which mortgages are omitted through failure to furnish returns may thus, for practical purposes, be fixed at an upper limit of £11,000,000. However, the mortgage exemption benefit to be derived from furnishing a return in the middle range of unimproved-value categories suggests that the actual amount of mortgages for types 4, 5, and 6 would be much closer to the amount shown in the statistics than to the hypothetical amount mentioned. These statistics, of course, do not yield any information regarding mortgages on exempted lands, which include residential and other small areas of under £500 unimproved value.

Ignoring those cases (types 4, 5 and 6) where no returns are furnished, and confining attention to those where definite information is available, reliable figures as to the incidence of mortgages over lands of different types and values are obtainable. The following table summarizes the information for each of the types 1, 2, and 3, showing the amount of mortgages per return and per £1,000 of unimproved value.

MORTGAGES, 1939.—SUMMARY: TYPES 1 TO 3.

Type.Number of Returns.Total Area.Unimproved Value.Total Mortgages owing.Mortgages per
Return.£1,000 of Unimproved Value.
  Acres.££££
1. Country-farming lands33,82818,049,21499,943,97688,662,3052,621887
2. Town lands or business-sites16,659101,20041,091,54232,018,3821,922779
3. Partly town and partly country lands805541,6935,293,6162,129,3952,645402
    Totals.51,29218,692,107146,329,134122,810,0822,394839

The next table shows similar information, according to the amount of unimproved value for types 1, 2, and 3 in conjunction. Generally speaking, the proportion of mortgages to unimproved value, which is high at the lower values (where the proportion of improvements would also be high), falls steadily as the amount of unimproved value increases.

MORTGAGES, 1939.—BY AMOUNT OF UNIMPROVED VALUE: TYPES 1 TO 3.

Amount of Unimproved Value.Number of Returns.Unimproved Value.Total Mortgages owing.Mortgages per
Return.£1,000 of Unimproved Value.
£ £ ££££
Under 50026786,33535,501133411
500- 5993,5491,958,1402,104,5475931,075
600- 6994,1012,632,5132,806,6416841,066
700- 7993,5512,641,0422,934,4108261,111
800- 8992,9602,495,4822,687,1739081,077
900- 9992,5442,400,9922,556,0701,0051,065
1,000- 1,99915,38521,813,70424,153,9231,5701,107
2,000- 2,4994,0979,122,6479,556,5272,3331,048
2,500- 2,9992,8217,694,4497,570,7562,684984
3,000- 3,9993,47311,950,70611,471,8343,303960
4,000- 4,9992,2169,855,7599,009,7364,066914
5,000- 5,9991,4237,785,9757,076,0224,973909
6,000- 6,9991,0206,592,8045,937,3835,821901
7,000- 7,4994102,962,3122,736,7166,675924
7,500- 7,9993262,523,6012,149,6146,594852
8,000- 8,9996055,126,4443,991,5466,598779
9,000- 9,9994414,173,5213,305,6287,496792
10,000-14,9991,10213,273,0559,975,2289,052752
15,000-19,9994046,982,2554,161,63710,301596
20,000-29,9993227,835,3133,592,21611,156458
30,000-39,9991123,829,3432,004,28917,895523
40,000-44,999321,319,228312,5389,767237
45,000-49,999311,477,469474,08115,293321
50,000-99,999745,055,9351,177,37715,911233
100,000 and over264,740,1101,028,68939,565217
Totals51,292146,329,134122,810,0822,394839

That the higher proportions of mortgages to unimproved value at the lower values of holdings is not due to an overwhelming preponderance of suburban residential sections at these values is seen from a comparison of the foregoing table with that following, which relates to the “country or farming lands” type only. In this instance the amount of mortgage per acre, which is of small significance when urban lands are included, is given:—

MORTGAGES, 1939.— BY AMOUNT OF UNIMPROVED VALUE: TYPE 1.

Amount of Unimproved Value.Number of Returns.Total Area.Unimproved Value.Total Mortgages owingMortgages per
Return.Acre.£1,000 or Unimproved Value.
£ £ Acres.££££s.d.£
Under 500647,18020,76210,443171191503
500- 5991,588269,520847,7321,087,6627074091,283
600- 6991,898363,9631,220,2691,534,1688084441,257
700- 7991,822325,5601,357,4271,765,3659695851,301
800- 8991,625322,7771,371,0031,673,8211,0305391,221
900- 9991,483322,7581,400,9791,689,2911,1395481,206
1,000- 99910,6742,853,76115,349,81517,732,9181,6616431,155
2,000- 2,4993,1691,328,6907,067,6577,546,1852,38151371,068
2,500- 2,9992,253962,7476,150,2355,933,6322,634633965
3,000- 3,9992,7521,450,5409,472,4359,142,8803,322661965
4,000- 4,9991,7971,113,3207,992,1087,275,0224,0486108910
5,000- 5,9991,1361,068,7306,210,8405,516,2164,856533888
6,000- 6,999800859,8075,169,8894,720,7465,9015910913
7,000- 7,499329364,3032,378,4382,182,1836,63351910917
7,500- 7,999256309,1361,983,1021,714,9336,69951011865
8,000- 8,990482669,9634,081,7783,233,4346,7084166792
9,000- 9,999337507,3703,186,0712,484,9787,37441711780
10,000-14,9998051,974,6259,691,3407,127,5638,8543122735
15,000-19,999286924,7294,944,4642,666,9579,3252178530
20,000-29,9992151,080,5765,192,4922,173,53110,109203419
30,000-39,99951390,3751,726,008833,92416,351229483
40,000-44,99923161,371982,801198,4148,627147202
45,000-49,99913148,734619,055341,88926,299260552
50,000 and over23268,6701,527,27676,1503,31105850
    Totals33,82818,049,21499,943,97688,662,3052,6214183887

The table well illustrates the incidence of mortgages over the lands which are devoted to the several types of farming. It should be added that, in addition to the £88,000,000 secured on the rural lands included in the table, there is an unknown and varying amount of indebtedness secured on stock, wool, crops, farm implements, and other chattels which is not included in the registered mortgages on land.

The data shown in the previous table may be viewed, in the next table, from a different aspect—that of the size of the areas involved.

MORTGAGES, 1939.—BY AREA: TYPE 1.

Area.Number of Returns.Total Area.Unimproved Value.Total Mortgages owing.Mortgages per
Return.Acre.£1,000 of Unimproved Value.
Acres...Acres.££££s.d.£
Under 59430861,19642,85345613928700
5 and under 103362,449255,660190,1705848020767
10 and under 154445,300399,845265,6135985024664
15 and under 203676,287385,765262,766716411511681
20 and under 3078119,090827,029630,6518073309763
30 and under 4077426,738888,801645,54483424210726
40 and under 5097043,3861,167,095955,7479852207819
50 and under 752,806169,5843,623,5283,374,5201,20319180931
75 and under 1002,636229,5874,056,7864,018,3541,52417101991
100 and under 1504,756573,2028,577,0408,820,1971,85515791,028
150 and under 2003,066529,9496,572,4496,352,7352,07211199967
200 and under 2502,516556,5685,830,9465,617,9032,23310111963
250 and under 3202,493705,1606,646,5786,252,1092,5088174941
320 and under 4001,951697,6155,845,8675,522,3862,8317184945
400 and under 5001,864829,8655,892,0565,500,9722,9516127934
500 and under 6401,8871,063,6106,893,3776,131,0693,2495153889
640 and under 750962664,9003,885,4873,661,7883,8065102942
750 and under 1,0001,4521,253,4426,596,4226,146,9244,2334181932
1,000 and under 2,0002,1653,016,63513,492,10911,960,2295,524394886
2,000 and under 3,0006591,557,7335,789,5814,600,8646,9822191795
3,000 and under 4,0003131,069,6383,511,7392,542,4968,123276724
4,000 and under 5,000143642,3301,697,6321,085,6847,59211310640
5,000 and under 7,5001751,052,2062,662,0251,787,67710,2151140672
7,500 and under 10,00092808,5691,573,9171,214,30613,1991100772
10,000 and under 15,00058719,0121,214,342424,7937,32401110350
15,000 and under 20,00027453,536626,566162,6996,026072260
20,000 and under 30,00022523,994583,882329,46814,9760127564
30,000 and under 40,00011402,242260,50458,6395,3310210225
40,000 and under 50,0004173,92389,45610,2502,563012115
50,000 and over4252,35636,29686,89921,72506112,394
    Totals33,82818,049,21499,943,97688,662,3052,6214183887

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 Gazelle, 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 date 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.
193521839121425
193622535316417
193719527212815
193823631..1009
1939231361937

In the case of a partnership, not only the partnership but each partner is counted in the total of transactions.

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 14 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.
  ££££
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
193926782,31844,171225,49029,950

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.
19301,0618.29
19311,2296.06
19329458.95
19331,0899.77
193479413.05
193587810.26
193665312.67
193777315.55
193886313.36
193984513.28

The total payments in 1939 made from assets realized were—

 £
Dividends to creditors (excluding preferential and secured claims)26,294
Preferential claims (rents, wages, &c.)3,656
Secured claims3,775
Government commission3,641
Costs of actions, solicitors’ and supervisors’ fees1,747
Expenses incurred in carrying on estates724
Other charges1,865
Total£41,702

Balances in bank to the credit of estates aggregated £34,810 on 31st December, 1939, an increase of £2,469 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.1935.1936.1937.1938.1939.
Under £50161471514
£50 and under £1001950293228
£100 and under £2506781779697
£250 and under £5006044485757
£500 and under £1,0005037373735
£1,000 and under £2,0002218151621
£2,000 and under £5,0002013585
£5,000 and over334610
Totals257260222267267

Liabilities in the bulk of failures do not exceed £1,000, the number under this amount in 1939 being 231, representing 87 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:—

 1935.1936.1937.1938.1939.
* Excluding partnerships as such (four for 1935, one for 1936, eight for 1938, and two for 1939). The occupations of the individual partners are included (see page 664).
Fishing and trapping22211
Agricultural and pastoral4542183128
Forestry54382
Mining and quarrying12232
Processes relating to stone, clay, lime, cement, glass, &c...2....2
Processes relating to chemicals, animal and vegetable products, n.e.i...1....2
Processes relating to metals, machines, tools, conveyances, jewellery, &c.141381419
Processes relating to fibrous materials, textiles, and dress361032
Processes relating to harness, saddlery, and leatherware....2..1
Processes relating to food, drink, and tobacco311283
Processes relating to wood, basketware, furniture, &c.63536
Processes relating to paper, stationery, printing, photography1....3..
Construction or repair of buildings, roads, and railways2941294344
Transport and communication2118122321
Commerce and finance6848615851
Public administration, clerical, and professional1315958
Entertainment, sport, and recreation24111
Personal and domestic service1088712
Indefinite occupations3039504860
  Totals253*259*222259*265*

Of the 1939 total, 49 were employers of labour, 67 were working on their own account but not employing labour, and 149 were working for wages. Of the individual occupations, the greatest numbers were found in labourers (51), farmers (21), carpenters (14), and salesmen (12).

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 1939 was 343, made up of 267 bankruptcies and 76 assignments, excluding two estates in which the assignors were subsequently adjudged bankrupt. The corresponding total for 1938 was 340.

The number of bankruptcies in 1939 was the same as in 1938, the figures for these two years being the highest since 1934. The number of assignments was, except for 1938, the lowest since statistics of assignments were instituted (1928).

Assets of the seventy-two estates for which returns were received were valued at £167,899, and the liabilities were estimated at £187,068. Assets realized in completed estates represented 50 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.1935.1936.1937.1938.1939.
Under £100..1......
£100 and under £250610541
£250 and under £500252510910
£500 and under £1,0002223171420
£1,000 and under £2,0002420231818
£2,000 and under £5,0001010131212
£5,000 and over524411
Unspecified14214126
  Totals10693867378

Forty per cent. of the specified estates in 1939 show liabilities below £1,000. In the case of official bankruptcies the corresponding figure was 87 per cent.

OCCUPATIONS OF ASSIGNORS.

The occupations of assignors in broad industrial classes during the last five years were as follows:—

 1935.1936.1937.1938.1939.
* Excluding two estates in which assignor was subsequently adjudged bankrupt.
Agricultural and pastoral46221
Forestry..11....
Mining and quarrying....1....
Processes relating to metals, machines, tools, conveyances, jewellery, &c.22132
Processes relating to fibrous materials, textiles, and dress54533
Processes relating to harness, saddlery, and leatherware....1....
Processes relating to food, drink, and tobacco49631
Processes relating to wood, basketware, furniture, &c.11112
Processes relating to paper, stationery, printing, photography11......
Construction or repair of buildings, roads, and railways1313121218
Transport and communication32532
Commerce and finance6244484236
Public administration, clerical, and professional46115
Personal and domestic service32....2
Indefinite occupations42234
  Totals10693867376*

No fewer than 55 of the assignors in 1939 were employers of labour, 20 were working on their own account, and 1 only was working for wages.

Particular occupations most affected in 1939 were: Builders (15); grocers (8); drapers (7); storekeepers (6).

Chapter 34. SECTION XXXIV.—WEALTH.

PUBLIC WEALTH.

For many years the Treasury compiled annually from details recorded in departmental balance-sheets a State balance-sheet which was published in Parliamentary Paper B.-1 [Pt. IV]. For various reasons arising out of war conditions, it has been decided to discontinue the preparation of this statement until after the conclusion of hostilities. The statement last published showed the position as at 31st March, 1938. The total of State assets according to this amounted to £402,556,454; but, in order that the public debt may be fully accounted for, nominal assets were inserted for outstanding loan expenditure on war and other purposes in respect of which no material asset now exists. Partly on this account, 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” in order to arrive at a figure which may be used as a component unit of an estimate of the value of property or wealth in New Zealand. The balance-sheet in summarized form, and particulars of the deductible items, may be found on pages 763-764 of the 1940 issue of the Year-Book. The resultant figure which may be accepted as a rough approximation of the value of State property at 31st March, 1938, was £270,000,000.

In arriving at an estimate of the aggregate public wealth of the Dominion, as distinct, from private wealth, it is also necessary to take into account the assets of local authorities. These (including sinking funds) amounted to approximately £96,000,000 at 31st March, 1938, and £97,000,000 at 31st March, 1939 (see Section XXVI).

It should be noted, however, that at 31st March, 1938, some £6,000,000 of the local authorities' total indebtedness was owing to the General Government, and allowance must be made for this amount. The approximate public wealth of the Dominion at 31st March, 1938, based on the foregoing 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. Estate and succession duties are based on the size of the estate and the degree of relationship of the beneficiary and certain exemptions, particulars of which may be found in Section XXIVB, are provided for. Consequently, many small estates on which no duties are payable are passed for probate or letters of administration. An arbitrary allowance is made for unrecorded estates of persons aged fifteen years and over. No allowance at all is made for estates of persons under fifteen.

Based on the estate and death figures for the triennium 1937-39, the aggregate private wealth estimate for the Dominion at the end of 1939 is £706,000,000, of which £481,000,000 represents the wealth of men and £225,000,000 that of women. Excluding Maoris, this total is equal to £455 per head of population, and £680 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 1939 would bring the estimated private wealth of the Dominion to £734,000,000.

ESTATES PASSED FOR DEATH DUTY.

A table is now given showing the number of estates finally passed during 1938 and 1939, classified according to amount. Estates of Maoris are here included.

Amount.Number of Estates.Aggregate Net Value of Estates.
1938.1939.1938.1939.
£   ££
Under 5002,5182,619510,160535,258
500 and under 1,0001,2391,249898,743901,649
1,000 and under 2,0001,0511,1501,509,3671,652,477
2,000 and under 3,0005265281,291,6051,296,539
3,000 and under 4,0002963281,033,7601,139,308
4,000 and under 5,000191183854,215810,783
5,000 and under 7,5002813111,701,4091,880,898
7,500 and under 10,0001481871,283,2021,629,490
10,000 and under 15,0001281551,565,5151,866,483
15,000 and under 20,00069731,185,4391,252,327
20,000 and over1061155,125,5915,178,397
       Totals6,5536,89816,959,00618,143,609

The table below shows for the period 1935 to 1939 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 5513................9
5 and under 10911................11
10 and under 1571..................8
15 and under 2062104................76
20 and under 25164391591..2........230
25 and under 3019888369313..3..2343
30 and under 3521782581644711..1391
35 and under 40278119832714597214549
40 and under 453471611444527111211443769
45 and under 50539252214864425262114661,233
50 and under 55717417324132883857302210141,849
55 and under 609695704412121116610647438302,603
60 and under 651,00964460328215695144626120603,136
65 and under 701,235738693315184133190968844703,786
70 and under 751,22275868434621413719911310351973,924
75 and under 801,18370764934019010721715993541183,817
80 and under 859365785382801901171769110645773,134
85 and under 905013132721601036785544834481,685
90 and under 9518386108492318282220829574
95 and over512414174686755147
Unspecified3311681175832193218161323827
       Totals101635,7575,0012,3831,3888491,30173863130358729,101
       Per cent.34.919.817.28.24.82.94.52.52.21.02.0100.0

AN ESTIMATE OF NATIONAL WEALTH.

The public wealth of the Dominion has been estimated (supra) at approximately £360,000,000, and the private wealth, including that of Maoris, at approximately £730,000,000. 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 wealth730,000,000
       Total1,090,000,000
Less public and local-authority debt domiciled in Dominion180,000,000
       Estimated national wealth£910,000,000

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 land are given in Section XXVII of this book. Farther information concerning the value of land, with particular reference to the distribution of land ownership among the population and also the utilization of land, are obtainable from the returns of land which are required to be furnished annually to the Commissioner of Taxes for the purpose of land-tax assessment. Statistics compiled from these returns were inaugurated for the land-tax year 1924-25 and were continued, with the exception of the year 1927-28, up to and including the tax-year 1929-30. A detailed discussion of the results of the previous compilations will be found in the 1932 and earlier issues of the Year-Book. Summaries giving the principal data only, have been given in the Year-Book from 1933 onwards.

It should be emphasized that since the last compilation amendments to the land-tax law, differences in details appearing on the notice of assessment (the statistical data are extracted from the information appearing on a copy of this notice), and the consequential modification of compilation procedure, have combined to impair the comparability of the present statistics with those of the previous series which ended ten years earlier. While the basic principles were the same in 1939-40 as in 1929-30, it is desirable to consider the question of comparability before drawing conclusions based on the differences between the figures for 1939-40 and those of earlier years.

Save for a few minor exceptions when the taxpayer is not entitled to the full amount of the ordinary exemption of £500 unimproved value, the statistics cover only lands of an unimproved value (Government valuation) of £500 and over. The Land and Income Tax Act, 1923, with its amendments, exempts from land-tax the lands of specified classes of owners when the land is in the occupation of those owners. The most important classes so exempted are the lands of public and local authorities; educational endowment lands; Crown land leased as small grazing runs or for pastoral purposes; lands used for educational, religious, charitable, or scientific purposes (with some limitations): and Native lands in the occupation or possession of the Native owner or his trustee. As a reasonably accurate generalization it may be stated that, where freehold land is used or occupied by public or semi-public interests, that land is not liable for land-tax, and consequently is not included in these statistics.

The ordinary exemption of up to £500 unimproved value excludes from the statistics the great majority of land holdings used solely for residential purposes.

The primary principle of land-taxation is that the tax is levied on the owner of the freehold, or any lesser interest deemed to be the equivalent of the freehold. Superimposed on this primary principle is the secondary principle that all lands not exempted from land-tax. irrespective of the type of tenure, in the possession or occupation of any person are included in that person's land-tax assessment. In order to avoid double taxation on leased lands, the lessee is allowed a credit, against the tax payable by him, equal to the amount of tax payable by the owner in respect of the leased land.

The statistics, however, are compiled on the basis of the ownership of the freehold. Leased lands which are not completely exempted in the hands of the owner, and which therefore have been included in the owners' assessments, have consequently been excluded in this compilation from the lessees' assessments in order to avoid the considerable duplication which would otherwise have occurred in regard to leased lands.

As the State derives revenue from Crown lands in the form of rent, land leased from the Crown is liable for land-tax only to the extent that the total unimproved value of that land exceeds the capitalized value of the rent. Cases where the lessee's own assessed interest in leased Crown land exceeds £500 unimproved value have been included in these statistics, but such cases constitute only a small proportion of the numerically large class of Crown tenants. Information concerning leases of Crown lands appears in Subsection B of Section XVII of this volume. On the whole, it is preferable to regard leases of Crown lands as being excluded from the compilation.

To summarize the position, the statistics may be regarded as covering only freehold lands of an unimproved value of £500 or over. Native lands are included only in cases where the land is not in the occupation or possession of the Native or his trustee. The acreage of the Native land so included is approximately one-fifth of the total area of such land.

The table which follows summarizes the principal heads of information disclosed by the tabulation for the tax year 1939-40, and relates to land held as at the 31st March, 1939.

The total unimproved value of land in the Dominion on the 1st April, 1939, was £282,806,212, and 59 per cent. of this amount is covered by these statistics. The exemption of holdings of less than £500 in value (of which a large number are suburban residential properties) is principally responsible for the wide difference between the coverage of rural and urban lands. Land classified in these statistics as rural, which approximately corresponds to land situated in counties, represents 68 per cent. of the total unimproved value of county land. The £49,010,467 unimproved value classed as urban, however, represents only 42 per cent. of the aggregate value of land in boroughs and independent town districts. The mixed rural and urban land valued at £5,841,120 has been disregarded in the calculation of the latter percentages.

LAND-TAX STATISTICS.—CLASS BY TYPE, TAX-YEAR 1939-40.

Type.Number of Returns.Number of Tax-payers.Total Area.Unimproved Value of Land.Total Mortgages owing.Tax assessed.
Class I. —Individuals and Partnerships.
   Acres.£££
Country or farming lands34,50818,21216,196,86193,009,11683,438,844333,225
Town lands or business-sites17,26011,89878,03825,375,96918,420,98785,116
Partly country and partly town lands753519172,0051,793,2911,089,36010,139
       Totals52,52130,62916,446,904120,178,376102,949,191428,510
       
Class II.—Deceased Persons' Estates, Trusts, &c.
Country or farming lands3,4702,7042,199,67613,204,5747,034,20489,707
Town lands or business-sites3,1162,65425,8067,391,9732,529,46352,006
Partly country and partly town lands17714491,397676,878349,5225,089
       Totals6,7635,5022,316,87921,273,4259,913,189146,802
       
Class III.—Natives, Native Land Boards, Native Trusts, &c.
   Acres.£££
Country or farming lands1,5441,528808,0093,004,89597,7227,353
Town lands or business-sites56501,713445,286..1,141
       Totals1,6001,584809,7223,450,18197,7228,494
       
Class IV.—Companies.
Country or farming lands5783871,477,9313,611,2613,624,60135,246
Town lands or business-sites2,1571,39119,48815,797,23914,121,952228,948
Partly country and partly town lands8570326,6473,370,951909,65674,745
       Totals2,8201,8481,824,06622,779,45118,656,209338,939
       
Summary.
Country or farming lands40,10022,83120,682,477112,829,84694,195,371465,531
Town lands or business-sites22,58915,999125,04549,010,46735,072,402367,211
Partly country and partly town lands1,015733590,0495,841,1202,348,53890,003
       Grand Totals63,70439,56321,397,571167,681,433131,616,311922,745

In the statistical treatment of the data, a distinction is made according to the class of taxpayer. The classification adopted is given in full in the above table, but in subsequent tables these classes are distinguished by the class number only. The information is further divided according to the type of land, the three categories being (a) rural, (b) urban, and (c) mixed urban and rural. On account of the necessity of distinguishing, in connection with the mortgage data, between cases where returns are furnished and those where no return is received, each of these types is subdivided into two in the detailed statistics published in the Statistical Report on Prices, Wage-rates, &c., and also in the “Mortgages” section of this Year-Book.

It should be explained that, as the assessments may include both urban and rural lands as they are primarily based on ownership, it is not possible to fully classify lands included in land-tax returns according to whether they are urban or rural. To prevent the overstatement of the real position in regard to mixed lands through such a matter as the inclusion of a suburban section in a return otherwise covering a considerable area of farm land, the classification provides that where 75 per cent. or over of the total unimproved value represents rural or urban lands, as the case may be, the whole return is so classed. The mixed lands, therefore, include only cases where neither rural nor urban land constitutes 75 per cent. of the total unimproved value. When, however, a return which would according to this rule be classified as urban includes not less than 500 acres of rural land, the return has been arbitrarily classed as mixed land.

VALUES OF HOLDINGS.

The following table shows the distribution, according to the amount of unimproved value, of all the holdings covered by the statistics. The insignificant total for holdings under £500 unimproved value is due to the fact that, with few exceptions, such holdings are exempt from land-tax. Owing to the operation of the various exemptions, which are discussed later in this section, no fewer than 24,141, or 38 per cent. of the total number of returns, were not assessed for tax.

The £1,000-£1,999 category, is the most important single group shown in the table, and the aggregate unimproved value of £26,196,445 for this group is equal to 16 per cent. of the total for all holdings. This group also records the highest percentage of mortgages to unimproved value. The 47,198 holdings of a lower value than £2,500, at which amount the ordinary exemption ceases, represent 74 per cent. of the total number of returns. The aggregate unimproved value of holdings in these cases was only 32 per cent. of the total, in contrast to the 2,361 cases where only a slightly smaller percentage (29 per cent.) of the total unimproved value was held in units of £10,000 or over.

LAND-TAX STATISTICS.—AMOUNT OF UNIMPROVED VALUE, TAX-YEAR 1939-40.

Amount of Unimproved Value.Number of Returns.Number of Taxpayers.Total Area.Unimproved Value of Land.Total Mortgages owing.Tax assessed.
£   Acres.£££
Under 50050548824,868156,25855,811410
500- 5995,3793,305382,8502,976,1672,360,2881,167
600- 6995,9983,976527,5453,847,7343,143,7172,661
700- 7994,8183,084449,2813,579,1353,232,0823,472
800- 8993,9232,420421,9623,305,0392,975,3494,121
900- 9993,3472,061418,2273,156,8822,811,5603,770
1,000- 1,99918,59010,4373,528,37426,196,44526,033,91438,495
2,000- 2,4994,6382,5771,497,05610,330,43010,181,02116,761
2,500- 2,9993,2091,8191,107,0648,754,6688,092,01716,368
3,000- 3,9993,8742,1561,678,13313,329,90712,175,81722,547
4,000- 4,9992,4321,4371,338,71110,814,9589,462,39218,204
5,000- 5,9991,5669641,163,1678,559,2877,516,39916,037
6,000- 6,9991,123700950,3217,251,9616,267,20213,993
7,000- 7,499442287415,3583,192,9242,876,3576,409
7,500- 7,999359351341,3192,780,3222,275,1696,997
8,000- 8,999653653726,7345,533,5954,200,68416,686
9,000- 9,999487487602,9734,608,2793,550,63817,562
10,000-14,9991,2191,2192,247,07814,678,47010,431,02996,846
15,000-19,9994754751,069,7148,213,5584,600,79893,074
20,000-29,9993653651,246,3298,874,6904,126,582124,325
30,000-39,999129129495,3704,420,5712,184,30087,245
40,000-44,9993535167,7181,443,451351,53831,937
45,000-49,9993434193,2791,614,440485,58140,751
50,000-99,9997878313,1635,322,1521,197,377124,883
100,000 and over262690,9774,740,1101,028,689118,024
       Totals63,70439,56321,397,571167,681,433131,616,311922,745

It has been previously mentioned that the statistics take cognizance of the class of owner, and figures showing, by size of unimproved value, the numbers of, and the aggregate unimproved values held by, each of the four classes of owners are presented below:—

LAND-TAX STATISTICS.—CLASSES, BY AMOUNT OF UNIMPROVED VALUE, 1939-40.

Amount of Unimproved Value.Number of Returns.Total Unimproved Value
Class I.Class II.Class III.Class IV.Class I.Class II.Class III.Class IV.
£     ££££
Under 50042842153138,11412,6544,770720
500- 5994,6234991611132,548,571275,55089,80062,246
600- 6995,1185611851343,283,181360,068118,38386,102
700- 7994,0644721561263,017,455351,738116,14493,798
800- 8993,303395135902,781,998333,209113,81676,016
900- 9992,844309106882,682,899291,26899,80482,911
1,000- 1,99915,6161,82650064821,996,1832,581,114701,670917,478
2,000- 2,4993,857486971988,588,0701,083,223219,077440,060
2,500- 2,9992,636366591487,194,582995,659161,726402,701
3,000- 3,9993,1034897021210,666,7291,688,905239,365734,908
4,000- 4,9991,921304331748,541,5171,358,941144,244770,256
5,000- 5,9991,218204211236,657,4011,113,589111,864676,433
6,000- 6,99986714612985,601,657941,54677,311631,447
7,000- 7,499353505362,549,900362,33137,002259,421
7,500- 7,99928942262,238,881325,168200,543
8,000- 8,9994801055634,066,597886,50642,750537,742
9,000- 9,999355705573,356,285665,35047,437539,207
10,000-14,9998581881216110,313,1872,278,597139,3891,947,297
15,000-19,999298863885,131,8821,489,60751,3061,540,763
20,000-29,999195746904,717,7011,795,509140,4282,221,052
30,000-39,99949284481,661,662941,192141,2151,676,502
40,000-44,99917658674,915259,949220,258334,649
45,000-49,99912813567,210379,839621,071
50,000 and over1775751,201,799501,913432,4227,926,128
       Totals52,5216,7631,6002,820120,178,37621,273,4253,450,18122,779,451

Class I (individuals and partnerships) includes the overwhelming majority of returns and three-fourths of the total unimproved value. As might be expected, the preponderance of the class diminishes as the size of the unimproved value rises, but the numbers of returns for each amount category exceed the combined totals of the other three classes until the £30,000-£39,999 group is reached. Owing to the relatively larger numbers of returns for both estates, trusts, &c., and companies (Classes II and IV respectively) in the higher-amount categories, the average unimproved value per return for Class I is less than that for Class II and much less than that composed of companies, where holdings of £50,000 unimproved value or over comprise 35 per cent. of the total unimproved value for that class. The average unimproved values for the respective classes are: Class I, £2,288; Class II, £3,146; Class III, £2,156; and Class IV, £8,078.

Reference has already been made to the principles adopted in classifying holdings according to the type of land, and the next table shows the number of returns and the aggregate unimproved values of rural, urban, and mixed lands respectively.

LAND-TAX STATISTICS.—TYPE, BY AMOUNT OF UNIMPROVED VALUE, TAX-YEAR 1939-40.

Amount of Unimproved Value.Number of Returns.Total Unimproved Value.
Rural.Urban.Mixed.Rural.Urban.Mixed.
£   ££££
Under 500130369639,947113,8012,510
500- 5992,1523,152751,191,1391,743,91441,114
600- 6992,6463,267851,701,6472,091,69054,397
700- 7992,4072,387741,791,1681,732,82755,140
800- 8992,0811,767751,754,4591,487,30763,273
900- 9991,8701,423541,765,0631,340,87750,942
1,000- 1,99912,5905,70529518,010,4997,778,201407,745
2,000- 2,4993,5421,041557,899,1872,306,893124,350
2,500- 2,9992,504653526,834,8721,778,108141,688
3,000- 3,9993,0297964910,425,8892,731,890172,128
4,000- 4,9091,948446388,663,5551,981,096170,307
5,000- 5,9991,233317166,735,3091,735,66888,310
6,000- 6,999877222245,665,0761,431,754155,131
7,000- 7,4993488952,515,211641,46336,250
7,500- 7,9992757772,130,859596,40153,062
8,000- 8,99951612984,371,0311,094,47868,086
9,000- 9,99937410493,534,846988,69784,736
10,000-14,9998723123510,498,3863,756,478423,606
15,000-19,999333128145,758,1072,215,498239,953
20,000-29,999242112115,845,4332,768,856260,401
30,000-39,999665582,239,9851,907,985272,601
40,000-44,9992411..1,024,539418,912..
45,000-49,9991618..756,026858,414..
50,000-99,9992543101,677,6132,888,296756,243
100,000 and over16102,620,9632,119,147
       Totals40,10022,5891,015112,829,84649,010,4675,841,120

Despite the inclusion of 59 urban holdings of £50,000 unimproved value or more as against 25 rural holdings of similar value, the average unimproved value of £2,814 per rural return is higher than the corresponding average of £2,170 for urban land.

AREA OF HOLDINGS.

The area figures are of little value in the ease of urban and mixed lands, as the returns are correct to the nearest quarter-acre only, and sections of less than one-eighth acre are treated as having no area at all. Furthermore, the area is of less importance as a criterion of the value of an urban holding than is the case where a rural holding is concerned. The following summary, which gives information regarding area and value in conjunction, accordingly relates only to lands classified as rural.

LAND-TAX STATISTICS.—AREA AND UNIMPROVED VALUE, RURAL LANDS, TAX-YEAR 1939-40.

Area, in Acres.Number of Returns.Number of Taxpayers.Total Area.Unimproved Value.
Total.Per Return.Per Acre.
   Acres.££s.d.£s.d.
Under 515512548094,05360615101951810
5 and under 104763263,459359,10575485103164
10 and under 155764076,883503,1748731147321
15 and under 204843428,313490,9661,0147105912
20 and under 301,04073025,3361,057,2861,01612541147
30 and under 401,01268334,9461,125,5471,112403242
40 and under 501,22577754,7871,424,9231,163412602
50 and under 753,4411,873208,1944,325,3801,2570320156
75 and under 1003,1571,666274,9324,695,3841,4875101717
100 and under 1505,5842,785672,3849,705,5321,7381111488
150 and under 2003,6051,871623,2897,456,3652,06861011193
200 and under 2503,0641,664645,9036,525,7982,1291671021
250 and under 3202,7611,406821,7117,396,1292,678159900
320 and under 4002,2831,264824,2656,490,1402,8421637176
400 and under 5002,1551,173959,8526,637,0853,0791716184
500 and under 6402,0111,0971,218,9227,548,2493,753976310
640 and under 7501,094634756,3824,263,4333,897215129
750 and under 1,0001,8161,1091,438,0217,427,5834,09017534
1,000 and under 2,0002,4521,5593,408,72014,876,2896,06700473
2,000 and under 3,0007395311,751,5220,451,0678,729913138
3,000 and under 4,0003512751,197,5473,978,76411,335102365
4,000 and under 5,000173141773,6322,020,44711,6781782123
5,000 and under 7,5001981771,191,3002,920,43114,749130290
7,500 and under 10,00010390907,6281,842,59417,88953207
10,000 and under 15,0006658815,5091,431,84121,6941131151
15,000 and under 20,0003228535,760735,64122,988157176
20,000 and under 30,0002823694,279660,38423,5852100190
30,000 and under 40,0001111402,242260,50423,6823801211
40,000 and under 50,00043173,92389,45622,364000103
50,000 and over43252,35636,2969,074000211
       Totals40,10022,83120,682,477112,829,8462,813143591

The column showing unimproved value per acre is instructive as showing the wide difference in land values as between the more closely-settled areas and the large runs.

It will be observed that the highest unimproved value per acre appears in the “under 5 acres” group, where the average almost reaches £200 per acre. A small number of returns originally classified as rural actually showed an average exceeding £200 per acre. These were mostly small areas which, while still devoted to rural pursuits of one kind or another, were in close proximity to towns and were obviously in process of urbanization. They were accordingly arbitrarily transferred to the urban class.

EXEMPTIONS.

As is the case in income taxation, certain exemptions and deductions are allowable in the taxation of land, and land-tax is payable only on the balance of the unimproved value. An owner of land the unimproved value of which does not exceed £1,500 is allowed an exemption of £500. Where the unimproved value lies between £1,500 and £2,500 there is a similar exemption, diminished in amount, however, by £1 for every £2 of unimproved value in excess of £1,500, so that no exemption is allowed under this head when the unimproved value reaches £2,500. This exemption is that here referred to as the “ordinary” exemption.

When there is a security on the land either by registered mortgage or by agreement to purchase, an alternative scale of exemptions is provided. Since the tax-year 1929-30, the maximum amount allowed as a mortgage exemption has been £7,500, diminished by £1 for every £1 of unimproved value in excess of £7,500. The exemption, therefore, ceases at £15,000 unimproved value. When the capital value of the mortgage is less than the amount of mortgage deduction provided, such capital value only is deductible. Unregistered mortgages on land, liens, and chattel securities are not allowable as deductions.

In lieu of the ordinary or mortgage exemptions, the Commissioner of Taxes has discretionary powers to grant relief in certain specified cases of hardship. The maximum permissible exemption on account of hardship is £4,000.

The following table summarizes the exemptions granted for the tax-year 1939-40, according to both the type of land and the class of owner:—

LAND-TAX STATISTICS.—EXEMPTIONS, BY TYPES AND CLASSES, TAX-YEAR 1939-40.

Type.Class.
Rural.Urban.Mixed.I.II.III.IV.
 £££££££
Ordinary4,936,7445,487,667190,4488,393,0241,400,799589,599281,437
Mortgage53,139,25513,573,590790,01458,436,2505,292,41088,6783,685,521
Hardship20,39627,021..32,92714,490....
       Totals58,146,39519,088,278980,46266,862,2016,707,699678,2773,966,958

The exemptions granted, which totalled £78,215,135, represented 47 per cent. of the total unimproved value. Individuals and partnerships (Class I) not only receive the great bulk of the total exemptions granted, but, owing to the generally lower value of holdings in this class, also have a higher proportionate deduction per return.

Lands classed as rural received 47 per cent. of the total ordinary exemption and 79 per cent. of the mortgage exemption. Information for rural, urban, and mixed lands in respect of ordinary and mortgage exemptions, according to the size of unimproved value, appears in the next table.

LAND-TAX STATISTICS.—ORDINARY AND MORTGAGE EXEMPTIONS, BY TYPE, TAX-YEAR 1939-40.

Amount of Unimproved ValueOrdinary Exemption.Mortgage Exemption.
Rural.Urban.Mixed.Total.Rural.Urban.Mixed.Total.
£ ££££££££
Under 50024,79696,6261,150122,5724,0324,7943709,196
500- 599676,2741,134,36127,9501,838,585133,680483,45210,619927,751
600- 699735,9341,102,35625,7161,864,006741,434659,75721,1081,422,299
700- 799610,953748,85420,2731,380,080854,610589,36622,4921,466,468
800- 899469,280544,43622,5001,036,216928,930524,17422,6911,475,795
900- 999404,617437,03417,000858,651949,509480,77917,6061,447,894
1,000- 1,9991,946,2151,362,97873,7813,882,37211,128,1313,315,278160,01514,609,424
2,000- 2,499118,67561,6242,078182,3775,192,1561,018,76359,3326,270,251
2,500- 2,999........4,289,624858,61350,1795,204,416
3,000- 3,999........6,810,9531,333,23084,6198,228,802
4,000- 4,999........5,592,363969,85892,9116,655,132
5,000- 5,999........4,303,577783,26731,7965,118,640
6,000- 6,999........3,634,572714,34976,8684,425,789
7,000- 7,499........1,655,824316,04621,9791,993,849
7,500- 7,999........1,290,938274,75415,4531,581,145
8,000- 8,999........2,208,165457,00930,3882,695,562
9,000- 9,999........1,341,700292,72120,2471,654,668
10,000-14,999........1,779,057497,38039,3412,315,778
       Totals4,986,7445,487,667190,44810,664,85953,139,25513,573,590790,01467,502,859

It is interesting to compare the amount of the mortgage exemption and the amount of the total mortgages owing. The following table gives the relevant figures, for each unimproved-value category, for rural, urban, and mixed lands respectively.

Further information in connection with the subject of mortgages secured on land will be found in Section XXXII of this volume.

LAND-TAX STATISTICS.—MORTGAGES OWING AND MORTGAGE EXEMPTIONS, TAX-YEAR 1939-40.

Amount of Unimproved Value.Rural.Urban.Mixed.
Total Mortgages owing.Mortgage Exemption.Total Mortgages owing.Mortgage Exemption.Total Mortgages owing.Mortgage Exemption.
£ ££££££
Under 50021,9354,03233,5014,794375370
500- 5991,185,430433,6801,149,378483,45225,48010,619
600- 6991,691,342741,4341,409,157659,75743,21821,108
700- 7991,926,606854,6101,260,998589,36644,47822,492
800- 8991,805,564928,9301,125,544524,17444,24122,691
900- 9991,836,568949,509951,808480,77933,18417,606
1,000- 1,99918,941,19311,128,1316,346,9303,315,278445,791166,015
2,000-2,4997,979,6435,192,1562,119,3961,018,76381,98259,332
2,500- 2,9996,310,9944,289,6241,708,380858,61372,64356,179
3,000-3,9999,616,9246,810,9532,446,7751,333,230112,11884,619
4,000- 4,9997,567,4175,592,3631,750,401969,858144,57492,911
5,000-5,9995,873,0474,303,5771,598,514783,26744,83831,796
6,000-6,9994,965,3003,634,5721,193,864714,349108,03876,868
7,000-7,4992,312,6241,655,824539,729316,04624,00421,979
7,500- 7,9991,788,4981,290,938468,163274,75418,50815,453
8,000-8,9993,373,6132,208,165775,614457,00951,45730,388
9,000-9,9992,666,1121,341,700862,054292,72122,47220,247
10,000-14,9997,345,9511,779,0572,778,148497,380306,93039,341
15,000-19,9992,966,070..1,465,988..168,740..
20,000-29,9992,358,652..1,568,589..199,341..
30,000-39,9991,013,935..1,064,207..106,158..
40,000-44,999228,414..123,124......
45,000-49,999353,389..132,192......
50,000-90,99976,150..893,259..227,968..
100,000 and over1,006,689..22,000..
       Totals94,195,37153,139,25535,072,40213,573,5902,348,538790,014

TAXABLE BALANCE AND TAX ASSESSED.

The taxable balance represents the residue of the amount of the unimproved value after the deduction of the statutory exemption (if any) to which the taxpayer is entitled. Tax is payable according to the amount of the taxable balance. The graduated scale of tax in force for the tax-year 1939-40 was 1d. in the pound when the taxable unimproved value did not exceed £5,000. This rate was increased by 1/8000 d. for every £1 of taxable unimproved value in excess of £5,000, with, however, a maximum rate of 6d. in the pound.

The unimproved value, taxable balance, and tax assessed, according to the type of land and also the class of owner, are shown in the table below:—

LAND-TAX STATISTICS.—TAX ASSESSED, BY TYPES AND CLASSES, TAX-YEAR, 1939-40.

Type.Class.
Rural.Urban.Mixed.I.II.III.IV.
 £££££££
Unimproved value112,829,84649,010,4675,841,120120,178,37621,273,4253,450,18122,779,451
Taxable balance54,683,45129,922,1894,860,65853,316,17514,565,7262,771,90418,812,493
Tax assessed465,531367,21190,003428,510146,8028,494338,939
Percentage of tax assessed to—       
   Unimproved value0.410.751.540.360.090.251.49
   Taxable balance0.851.231.850.801.010.311.80

The low percentages for Class III (Natives) are explained by the fact that, when Native land is liable for land-tax, the rate of tax is one-half of that charged on non-Native land.

The table following shows the average tax figures for holdings of the various categories on the basis of the amount of unimproved value. The averages move comparatively slowly until the higher categories are reached, when they rise steeply a position due partly to the higher value itself, partly to a reduction in the proportion of exemption and the ultimate disappearance of the exemption, and partly to the graduated scale of taxation.

LAND-TAX STATISTICS.—TAX ASSESSED, BY AMOUNT OF UNIMPROVED VALUE, TAX-YEAR 1939-40.

Amount of Unimproved Value.Taxable Balance.Tax assessed.Average Tax Assessed.
Per Return.Per Taxpayer.Per £1,000 of Unimproved Value.Per £100 of Taxable Balance.
£ ££££s.d.£s.d.£s.d.£s.d.
Under 50024,49041001630161021261136
500- 599208,1561,16704407107100113
600- 699556,2422,6610810013501310097
700- 799728,9723,47201451260195096
800- 899788,8334,121110114114110105
900- 999849,4173,770126116713110811
1,000- 1,9998,182,15338,4952153139195095
2,000- 2,4993,872,62316,761312361011125088
2,500- 2,9993,550,25216,3685209001175093
3,000- 3,9995,099,45522,54751651092113100810
4,000- 4,9994,159,82618,204798121341138089
5,000- 5,9993,438,14716,03710410161291176094
6,000- 6,9992,826,17213,993129219191011870911
7,000- 7,4991,199,0756,4091410022672020108
7,500- 7,9991,199,1776,997199101918821040118
8,000- 8,9992,838,03316,68625111251113040119
9,000- 9,9992,953,61117,56236133613316301111
10,000-14,99912,362,69296,8467981179811611110158
15,000-19,9998,213,55893,074195181119518111168128
20,000-29,9998,874,690124,3253401243401241402180
30,000-39,9994,420,57187,2456766467664191491196
40,000-44,9991,443,45131,93791299912992226243
45,000-49,9991,614,44040,7511,1981121,198112254102106
50,000-99,9995,322,152124,8831,601131,6011323942011
100,000 and over4,740,110118,0244,539784,53978241902910
       Totals89,466,298922,745149823665101108

The final classification given is one on the basis of area, and rural lands only are included in the table. The figures in the “per acre” column show the effect of the high proportion of poorer lands among the larger holdings.

LAND-TAX STATISTICS.—TAX ASSESSED, RURAL LANDS, TAX-YEAR 1939-40.

Area, in Acres.Taxable Balance.Tax assessed.Average Tax assessed.
Per Return.Per Taxpayer.Per Acre.Per £1,000 of Unimproved Value.
 £££s.d.£s.d.s.d.£s.d.
Under 519,9951300169101055178
5 and under 1083,367385016213723115
10 and under 15155,2036771361133201611
15 and under 20190,16688311662118211160
20 and under 30333,4071,5651101221113197
30 and under 40402,1071,66911302810011198
40 and under 50485,8362,0061129211809182
50 and under 751,313,2626,75711933122081113
75 and under 1001,479,7266,733228401006188
100 and under 1502,970,76713,63128104171105181
150 and under 2002,620,35012,1743766102051128
200 and under 2502,220,7789,8803465189041103
250 and under 3202,684,23414,48954111061041192
320 and under 4002,395,04212,86851291037041198
400 and under 5002,575,63215,2867110130804261
500 and under 6403,281,91920,557104518149042146
640 and under 7501,886,59111,2101041117138042127
750 and under 1,0003,468,08323,160121512017804324
1,000 and under 2,0008,877,76568,73228074419054125
2,000 and under 3,0004,824,68652,559712598197078211
3,000 and under 4,0003,349,79642,13112008153410810119
4,000 and under 5,0001,695,74323,422135791662307111110
5,000 and under 7,5002,623,36838,934196129219194081368
7,500 and under10,0001,661,92428,5362771031714081599
10,000 and under 15,0001,384,56525,4573851434381830717157
15,000 and under 20,000705,53612,6883961004532100017411
20,000 and under 30,000614,81612,72047123578380519134
30,000 and under 40,000245,6754,0293665536655021594
40,000 and under 50,00099,1211,826365404561000217146
50,000 and over33,99143710950145134..12010
  Totals54,683,451465,531111222071005426

Chapter 35. SECTION XXXV.—INCOMES AND INCOME-TAX.

INTRODUCTORY.

COMPLETE statistics of annual income are not 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.

This data has now been supplemented by statistics compiled from the declarations furnished under the Social Security Act, 1938, for the year ended 31st March, 1939. These returns, which are required from all persons of sixteen years of age and over, should have given a complete coverage, but, as explained later in this section, they were far from complete.

Information concerning the system of income-tax in New Zealand is given earlier under the heading of “Taxation” (vide pp. 507-510). The statistical data 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.

The information given in the earlier section relates for the most part only to current (1940) income-tax law, but in this section, in those instances where the law which was in force during the tax-year 1938-39 has since been materially altered, a brief reference is made to the position as it existed in 1938-39. Income-tax law is dynamic rather than static, and amendments have been frequently passed. Caution is therefore necessary in making comparisons of the figures for any one year with those for another year.

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 1938-39 relate to incomes received during the year 1937-38, which, in general, may be taken as the twelve months ended 31st March, 1938.

The returns from which these statistics are compiled are required from all taxpayers. In addition, whether taxpayers or not, all persons, including companies and public or local authorities, engaged in any profession, trade, manufacture, or undertaking carried on for pecuniary profit, irrespective of the amount of income derived, and all persons in receipt of incomes of £200 or over, are required to furnish returns. The statistical compilation is, however, limited to taxpayers and to persons whose assessable incomes amount to £200 at least.

The reference to persons whose assessable incomes are £200 or over should not be interpreted as meaning that there is a complete coverage of incomes over that amount. Certain types of non-assessable income (these are referred to later in this section) are not included in the returns, and are therefore completely omitted from these statistics. Only two of the classes of income so omitted are of major importance. They are incomes derived from farm lands of an unimproved value of less than £3,000, and income derived from other British countries where income-tax is leviable. It is possible to measure with reasonable accuracy the extent of the omission of farming incomes from the 1938-39 statistics, and it appears that not less than 35,000 farming incomes, aggregating £14,000,000, did not come within the scope of the income-tax system in that year. The paucity of data relating to the exclusion of income from other British countries precludes an accurate estimation of the extent of the omission.

The coverage of the returns is also incomplete in one other aspect. It is estimated that approximately 15,000 persons with assessable incomes of between £200 and £300 failed to furnish returns. Nearly two-thirds of these persons have incomes of £200-£209, and the remainder belong almost exclusively to the £210-£259 group. The first £210 of assessable income was (in 1938-39) exempted, and the great majority of missing returns for incomes over £210 represent persons who are known to be entitled to other exemptions which would bring them into the non-taxpaying category.

With the exception of a preliminary tabulation for companies according to size of assessable income, which will be found at the end of this section, the compilation for the tax-year 1939-40 was not completed in time for inclusion in this issue of the Year-Book.

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.1934-35.1935-36.1936-37.1937-38.1938-39.
* Not available.
Number of returns125,662139,573155,677195,578222,059
Number of taxpayers63,95072,10486,888117,574139,800
 £££££
Earned income35,097,39838,593,00446,053,07263,663,20270,517,927
Assessable income53,194,17059,495,60169,077,67891,873,18999,268,262
Total returnable income*62,673,79172,371,19595,940,109103,188,553
Exemptions—     
   Personal20,235,03622,372,12129,822,28937,758,34543,158,998
   Other7,605,7378,451,4768,452,22311,176,49313,041,710
Taxable balance25,353,39728,672,00430,803,16642,938,35143,067,554
Tax assessed3,648,5994,264,4536,454,1179,130,0428,984,598

It should be noted that the incomes of companies are not regarded as earned incomes for income-tax purposes, and are therefore not included under that heading in the above table. Probably the most striking feature disclosed by these figures is the cumulative effect of the large increases shown in each individual year. On the whole, it may be said that the figures for 1938-39 are approximately twice the size of these for 1934-35. The tax-year 1938-39, however, failed to maintain the standard set by the earlier years, when each yearly increase over the preceding year was progressively greater than that shown by the next earlier year.

The total amount of tax assessed for the tax-year 1938-39, as shown in these statistics, was £8,984,598. This is £318,897 less than the amount of income-tax revenue during the year ended 31st March, 1939. There is, however, always a 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 tax collected, and the unavoidable omission of a few returns from the statistical tables.

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.
5Provisions 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 £1,095,127 unearned assessable income for source 0 (salary or wages), and of £388,708 earned income for source 8 (investments and the like).

Whether for individuals alone or for 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 £56,683,616 assessable income in 1938-39 shrank to a comparatively low taxable balance of £10,590,604, which was assessed for only £1,206,648 of tax.

The following table shows the number of returns and of taxpayers, together with the aggregate assessable incomes, classified according to source for each of the last three tax-years:—

Source.Number of ReturnsNumber of Taxpayers.Aggregate Assessable Income.
1939-37.1937-38.1938-39.1936-37.1937-38.1938-39.1936-37.1937-38.1938-39.
       £££
0109,783140,449169,73947,32868,65593,17435,503,22646,127,74056,683,616
12,9063,1332,8842,5152,8272,6612,142,0902,516,9892,546,711
212,05515,64016,0259,46112,67513,27613,367,76817,954,56018,822,412
31,0061,1981,1399521,1441,0953,115,9914,280,7594,715,241
47,22110,5427,8055,8729,3616,6305,442,37010,440,5256,107,306
68321,2211,3295898911,020845,5121,028,3081,422,448
06809151,031444661794313,736474,681636,969
7162182157128156134214,286395,163353,894
820,88922,05021,82519,46720,96220,8957,993,7108,473,3257,800,310
9143248125132242121138,989181,139179,355
Totals155,677195,578222,05986,888117,574139,80069,077,67891,873,18999,268,262

Among companies, those which derived their income from commerce, trade, or business (source 2) represented, in 1938-39, 58 per cent. of the total returns, with 65 per cent. of the aggregate assessable income of companies. This source ranked only fourth in point of assessable income of individuals, being exceeded by sources 4 (farming) and S (investments and the like) in addition to source 0. Industry or manufacture (source 3), second among companies, occupies a very minor position as far as individuals are concerned.

The source which showed the greatest relative variation in the 1938-39 figures as compared with those for the 1937-38 tax-year was farming, the assessable income of which was 42 per cent. less than in 1937-38. The large export surplus of farm products makes the farming industry particularly sensitive to overseas prices. Both the rise in 1937-38 and the recession in 1938-39 may be attributed mainly, although not entirely, to the fluctuations in wool prices.

INCOMES BY CLASSES.

Prior to the tax-year 1937-38, taxpayers were divided into four classes—viz., individuals, companies, agents for debenture-holders, and non-resident traders. Since the passing of the Land and Income Tax Amendment Act, 1927, the importance of the third class has gradually diminished, and it was decided in 1937-38 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.

“Individuals” comprise all returns for individual persons, other than nonresident traders, and include estates of deceased persons. Partnership returns are ignored in the compilation, as the individual shares of partnership income are included in the individual tax assessments.

The term “companies” covers not only companies incorporated under the Companies Act, 1933, and other Acts relating to the formation of companies, but also includes local and public authorities, associations (incorporated or unincorporated), and any distinct aggregations of individuals (other than partnerships) which form separate and distinct entities for income-tax purposes.

A classification on the basis of class is given in the following table for each of the last three tax-years.

Class.Number of Returns.Number of Taxpayers.Aggregate Assessable Income.
1936-37.1937-38.1938-39.1936-37.1937-38.1938-39.1936-37.1937-38.1938-39.
* Not shown separately.
       £££
Individuals149,319188,049214,16580,530110,045131,90654,757,50573,014,83279,157,125
Companies5,0735,9976,5855,0735,9976,58513,901,91918,499,04219,774,260
Agents for debenture-holders23**23**161,714**
Non-resident trailers1,2621,5321,3091,2621,5321,309256,540359,315336,877
     Totals155,677195,578222,05980,888117,574139,80069,077,67891,873,18999,268,262

Compared with the previous year, individuals in 1938-39 showed an increase of 13.9 per cent. in the number of returns and 19.9 per cent. in the number of taxpayers; while the corresponding increase for companies (numbers of returns and of taxpayers being identical in the case of companies) was 9.8 per cent. It is interesting to note that the number of returns furnished by individuals was, in 1938-39, equivalent to 41 per cent. of the male population twenty-one years of age and over, and 21 per cent. of the total adult population of the Dominion. Corresponding percentages for taxpayers were 25 per cent. and 13 per cent. respectively.

AMOUNT OF INCOME.

The broad principle adopted in calculating the assessable income is that any expenditure or loss exclusively incurred in the production of the assessable income for any year may be deducted from the total income from any assessable source for that year. Depreciation is allowed, varying rates for different classes of assets being fixed. Where the operations of a source of income which would be assessable for income-tax have resulted in a loss for the year, the loss may be set off against assessable profits from other sources (if any) or, in default thereof, may be set off against assessable profits in the three following years. Capital profits are not assessable and capital losses are not deductible.

Full details of incomes (earned, assessable; and total returnable) of the various sizes in conjunction with source of income and class of taxpayer are contained in the Statistical Report on Prices, Wages-rates, &c. Summarized figures are given under subsequent headings, where, for the sake of convenience and clarity, each of the three classes of taxpayers is dealt with as a separate entity.

INCOMES OF INDIVIDUALS.

ASSESSABLE INCOME.

As shown under a preceding heading, incomes of individuals returned for the tax-year 1938-39 numbered 214,165, and represented an aggregate assessable income of £79,157,125. Summarized figures according to amount of assessable income are given for the last three years available.

Amount of Assessable Income.Number of Returns.Aggregate Assessable Income.
1936-37.1937-38.1938-39.1936-37.1937-38.1938-39.
£    £££
Under 30086,060102,218111,98320,118,23724,283,25926,913,227
300- 39930,71342,81155,54410,424,24614,530,40018,815,398
400- 49912,13015,61018,7965,368,0736,881,5308,272,670
500- 5996,4318,0598,8233,486,5454,373,8894,777,640
600- 6993,6114,7365,1502,324,8983,046,5633,317,604
700- 7992,4623,1373,3311,834,3582,337,7792,478,779
800- 8991,7022,2272,3211,437,4441,885,3371,958,364
900- 9991,1591,5491,5501,096,1851,467,0661,464,056
1,000-1,9993,9575,7775,2965,283,8917,744,5117,084,819
2,000-2,9997271,1679311,732,3532,808,2142,215,372
3,000-3,999192388265665,8811,327,668894,758
4,000-4,9999215498413,304683,588428,950
5,000-9,9997319177454,7191,244,585535,488
10,000 and over1025..117,371400,443..
     Totals149,319188,049214,16554,757,50573,014,83279,157,125

In 1937-38, increases in the figures for that year over those for 1936-37 were disclosed in all categories, the position being roughly that the higher the income level, the greater the percentage increase in the amount of assessable income. The increase in the total of the assessable incomes of individuals for 1938-39 was, on the other hand, entirely clue to larger aggregates in the lower income groups, the aggregates for each income category above the £800-£899 group being smaller than in 1937-38.

ASSESSABLE EARNED INCOME.

Earned income is defined as all income derived from any source by a taxpayer (not being a company or a public or local authority) by reason of his personal exertions. Pensions and superannuation are regarded as earned income. Earned income is, of course, exempted from the surtax of 33⅓ per cent. on standard rates which is payable on unearned income of individuals but not of companies. The following table shows the distribution of earned income of individuals over the various sources, both absolutely and in proportion to assessable income, for 1938-39 and the two preceding tax-years.

Source.Assessable Earned Income.Proportion of Assessable Income.
1936-37.1937-38.1938-39.1936-37.1937-38.1938-39.
 £££Per Cent.Per Cent.Per Cent.
034,564,83045,119,34855,588,48997.3697.8193.07
12,024,0922,383,9042,425,54394.4994.7195.24
23,509,7765,080,3665,361,34494.1195.4295.31
S90,342154,440123,35195.1590.1297.40
44,901,4439,651,2075,597,25992.3094.4893.67
5248,324432,723502,46697.5397.7798.39
6251,005364,989467,64092.6195.2395.48
744,48053,51550,83198.0398.8097.29
8404,410393,552388,7085.475.065.45
914,37014,01710,42493.9495.4097.58
     All groups46,053,07263,648,06170,516,05584.1087.1789.08

While assessable earned income has increased by 82.7 per cent. during the last three years, “unearned” assessable income of individuals has increased by 0.3 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 of individuals for the various categories according to the size of assessable income.

Amount of Assessable Income.Assessable Earned Income.Proportion of Assessable Income.
1936-37.1937-38.1938-39.1936-37.1937-38.1938-39.
£ £££Per Cent.Per Cent.Per Cent.
Under 30018,344,55222,473,38725,132,82991.1892.5593.38
300- 3999,173,35113,238,98517,571,33688.0091.1193.39
400- 4994,443,5135,931,2747,340,84082.7886.1988.74
500- 5992,771,0993,636,9284,048,45579.4883.1584.74
600- 6991,790,2682,471,6622,763,31677.0081.1383.29
700- 7991,405,3381,888,7802,009,70676.6180.7981.08
800- 8991,070,0771,501,1731,603,79974.4479.6281.89
900- 999817,1951,154,7231,175,15874.5578.7180.27
1,000-1,9993,839,5896,214,1485,689,54472.6780.2480.31
2,000-2,9991,242,2352,223,0161,787,67771.7179.1680.69
3,000-3,999433,9511,046,694681,30465.1778.8476.14
4,000-4,999278,377546,981300,41967.3580.0270.04
5,000-9,999353,734966,732411,67277.7977.6876.68
10,000 and over89,793353,57876.5088.30
     Totals46,053,07263,648,06170,516,05584.1087.1789.08

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.

Commencing with the tax-year 1931-32, certain classes of non-assessable income are taken into account in determining the rate of tax. Statistics of total returnable income were introduced in 1935-36. The total returnable income is obtained by adding to the assessable income the amount of any non-assessable income of the classes used for rate determination. The classes concerned comprise dividends from companies trading in New Zealand, interest on New Zealand Government securities issued free of tax, and interest on company debentures issued free of tax or with a floating rate of interest.

Those classes would include the greater part of any non-assessable income received by persons whose returns are included in the statistics. Attention has been previously drawn to the omission of two important types (income derived from other British countries where income tax is leviable, and income from farm lands of under £3,000 unimproved value) of income, and the total returnable income of the individuals covered by the statistics is thus not necessarily equivalent to their “total” income.

The following table gives particulars of the number of returns and total returnable income of individuals according to size of income:—

Amount of Total Returnable Income.Number of Returns.Total Returnable Income.
1936-371937-38.1938-39.1936-37.1937-38.1938-39.
£ £   £££
Under 30084,675100,715110,78919,852,57223,993,76526,677,335
300- 39930,48342,46255,27110,349,34114,419,61418,687,307
400- 49912,12515,59718,6425,367,3896,876,8488,208,068
500- 5996,5358,1548,9653,546,2334,428,1094,809,622
600- 6993,7114,8845,3002,389,3283,145,9513,414,804
700- 7992,6533,3253,4451,976,7162,480,6222,568,059
800- 8991,8412,3492,3781,549,3761,987,3442,008,733
900- 9991,2631,6701,6661,194,0251,581,5991,575,245
1,000-1,9994,4906,4005,8106,030,9028,641,6587,833,333
2,000-2,9998981,4061,1462,161,5803,389,3482,728,458
3,000-3,9992975023861,015,1391,727,6871,297,073
4,000-4,999145230164641,6031,017,537727,505
5,000-9,9991683001741,093,6891,997,9451,150,746
10,000 and over355529508,489813,879470,578
     Totals149,319188,049214,16557,676,38276,501,90682,156,866

From a comparison of the foregoing table with that based on the amount 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 1938-39 there were 77 cases where the amount of “assessable” income of individuals was over £5,000, the aggregate assessable income being £535,488: on the basis of total returnable income there were 203 cases, aggregating £1,621,324, with incomes exceeding £5,000.

EXEMPTIONS.

In the case of individuals, certain statutory deductions are made from the assessable income, and income-tax is paid on the balance. Absentees are not usually entitled to the benefit of these exemptions. The exemptions in force during the tax-year 1938-39 were—

  1. A general exemption of £210.

  2. An exemption of £50 in respect of a dependent husband or wife.

  3. An exemption not exceeding £50 in respect of a housekeeper employed by a widow or widower with dependent children.

  4. A sum of £50 for each child, grandchild, adopted child, or stepchild under the age of eighteen years who is dependent on the taxpayer.

  5. Contributions not exceeding £50 towards the support of a widowed mother or mother-in-law.

  6. Life-assurance premiums, National Provident Fund, superannuation, and similar contributions. The maximum exemption under this head was 15 per cent. of assessable income where the total income did not exceed £2,000, or 15 per cent. of assessable earned income if the total income exceeded £2,000.

In the statistics the exemptions are applied in the order in which they appear in the foregoing list. For example, a married man with two children is entitled to the following exemptions: Personal, £210; wife, £50; children, £100; and life assurance premiums, &c. The total exemption is thus £360 (plus life assurance premiums, &c.). Assuming that his assessable income is £300, the exemptions are reduced to a total sufficient to make the taxable balance “nil” and are recorded as personal, £210; wife, £50; and children, £40.

The next table shows the average amount of exemption allowed in the tax-year 1938-39 for each £100 of assessable income.

Amount of Assessable Income.Exemptions per £100 of Assessable Income.
Personal.Wife, Housekeeper.Children.Mother, Mother-in-law, &c.Life Assurance, &c.Total.
£ £££££££
Under 30081.38.61.80.31.293.2
300- 39961.610.59.80.42.985.2
400- 49947.38.211.30.34.371.4
500- 59938.46.49.30.34.659.0
600- 69932.35.37.60.24.549.9
700- 79927.84.36.50.24.343.1
800- 89924.73.75.90.24.438.9
900- 99922.03.25.10.24.434.9
1,000-1,99915.42.23.70.14.525.9
2,000-2,9998.41.12.10.14.215.9
3,000-3,9995.90.61.30.14.612.5
4,000-4,9994.20.41.10.03.69.3
5,000-5,9994.00.10.70.02.37.1
6,000-6,9993.00.30.60.02.36.2
7,000-7,9992.20.2....2.14.5
8,000-8,9992.40.10.2..1.94.6
9,000 and over1.60.20.30.15.47.6
    Totals54.57.45.80.33.071.0

The total exemptions granted to individuals during the tax-year 1938-39 amounted to £56,200,659, of which “personal” accounted for £43,158,949; wife, &c., £5,852,561; children, £4,627,062; widowed mother, &c., £224,284; and life-assurance premiums, &c., £2,337,803. The comparatively low figure shown as exemptions for children results, of course, from the application of the previously mentioned rule relating to the reduction of potential exemptions.

TAXABLE BALANCE AND TAX ASSESSED.

After all exemptions have been deducted from the assessable income the balance of income (if any) is taxed in accordance with the schedule relating to the particular tax-year.

Exemptions being practically limited to individuals, this is the only class in which the assessable income and taxable balance are not generally identical. The next table gives for this class particulars of taxable balance and of total tax assessed for the various income categories in 1938-39 and the two preceding tax-years.

Amount of Assessable Income.Taxable Balance.Total Tax Assessed.
1936-37.1937-38.1938-39.1936-37.1937-38.1938-39.
£ £££££££
Under 3001,112,2511,502,5081,836,641112,324151,351180,318
300- 3991,548,2572,184,1582,785,985151,041212,145264,531
400- 4991,597,2002,017,7382,367,012160,419204,517235,560
500- 5991,462,6421,837,0321,957,071151,597193,376204,331
600- 6991,178,7441,537,8041,662,520126,703168,562180,616
700- 7991,046,5111,336,0281,409,799116,952151,842160,925
800- 899888,7321,171,2451,195,720103,275138,581141,341
900- 999714,851966,680952,44386,132120,300117,280
1,000-1,9993,953,5815,785,9515,251,690570,287841,884770,861
2,000-2,9991,470,7572,389,3541,864,173286,494464,598367,182
3,000-3,999594,1261,176,843782,997139,603280,080195,165
4,000-4,999380,723020,026388,857115,154175,332116,718
5,000-9,999420,9761,168,314501,558151,965432,465193,716
10,000 and over114,375387,66449,150164,646
    Totals, Class I16,483,72624,081,34522,956,4662,321,0963,699,6793,128,544

While the foregoing table shows the aggregate taxable balance and amount of tax assessed in respect of individuals in receipt of the various amounts of assessable income, it does not indicate the number of individuals with taxable balances of different amounts or the tax-assessed categories.

Tables showing the analyses by size of taxable balance and by size of tax assessed are published in the Statistical Report on Prices, &c., but space limitations preclude their repetition here. In the tax-year 1938-39, 131,906 individuals contributed to the income-tax revenue, and of these, 12,397 cases were assessed for under £1 of tax, 72,099 for over £1 and under £10, and 41,854 for over £10 and under £100. At the other end of the scale, 182 individuals had incomes which were liable for a tax of £1,000 or over.

The rates of tax payable by individuals for the tax-year 1938-39 and the two preceding years were 1s. 8d. in the pound, increased by 1/100 d. for every £1 of taxable income where the taxable income did not exceed £5,500. Incomes over that amount paid 6s. 3d. in the £1, increased by 1/150 d. for every £1 of taxable income in excess of £5,500, with a maximum rate of 8s. 2d. in the £1. An additional tax of 33⅓ per cent. on these rates was imposed in respect of unearned income. Tax is payable on the amount of the taxable balance, but, as explained previously the rate of tax is determined by the amount of the total returnable income.

The next table gives, in respect of incomes of individuals, particulars for the last three tax-years of the amount of tax assessed for each of the ten groups of sources, together with various averages for 1938-39:—

Source.Total Tax assessedAverage Tax assessed, 1938-39.
1936-37.1937-38.1938-39.Per ReturnPer Taxpayer.Per £1 Assessable Income.Per £1 Taxable Balance.
 £££££s.d.s.d.
0740,605989,5651,206,6487130523
1153,116199,557216,330758118210
2198,678317,190337,87431411229
35,40110,9747,82737461320
4506,8861,277,354542,745708311030
57,76315,95624,48223331020
611,14617,83227,56829391228
71,4691,5582,371212701124
8695,235869,057762,18337392237
979763651626321020
     Totals2,321,0963,699,6793,128,54415240929

COMPANY INCOMES.

It is perhaps desirable to draw attention to the fact that the term “companies” as it is used in connection with these statistics has been given a wider meaning than that which is commonly assigned to it. A definition of the term will be found on page 684.

The various statutory exemptions which are granted to individuals do not apply in the case of companies. The numbers of returns and taxpayers, also the amounts of assessable income and the taxable balance, are identical in the case of companies.

The following table gives particulars of the number of taxpayer companies and their aggregate assessable incomes for each of the three tax-years 1936-37 to 1938-39:—

Amount of Total Assessable Income.Number of Returns and TaxpayersTotal Assessable Income.
1936-37.1937-38.1938-39.1936-37.1937-38.1938-39.
£    £££
Under 1001,2501,3151,33747,96550,39753,038
100- 19962565070988,89492,495102,480
200- 29940150250997,724121,129124,323
300- 399311415467106,140141,224160,366
400- 499283280336125,793125,649150,297
500- 599212248278115,007133,373150,007
600- 699179181263115,981116,869170,343
700- 799135192196100,614143,525146,694
800- 899123146175103,646123,441147,806
900- 999115138166109,451130,768157,225
1,000- 1,999606795898853,7041,108,4131,260,320
2,000- 2,999244339385599,339824,607950,896
3,000- 3,999157178196540,100613,718674,423
4,000- 4,99978143136349,596643,324604,005
5,000- 5,999488586259,149466,307484,093
6,000- 6,999465172299,756332,353465,917
7,000- 7,999243740179,989275,657302,472
8,000- 8,999242228203,211187,138238,812
9,000- 9,999181525173,246141,778236,997
10,000-19,999881211221,227,2171,691,4491,705,440
20,000-29,999324361822,7731,042,1761,482,554
30,000-39,999182323611,011774,290791,783
40,000-49,999121416557,257619,767708,049
50,000-99,9993239342,252,2472,756,8582,338,180
100,000 and over1825273,962,1095,842,3376,167,740
     Totals5,0735,9976,58513,901,91918,499,04219,774,260

In comparison with the previous year, the figures for 1938-39 showed increases of 588 (9.8 per cent.) in the number of taxpayer companies and £1,275,218 (6.9 per cent.) in the amount of assessable income. These rises are small, both absolutely and relatively, compared with the corresponding increases for the tax-year 1937-38, when the number of taxpayers and the amount of assessable income were respectively 924 (18.2 per cent.) and £4,597,123 (33.1 per cent.) in excess of the 1936-37 figures.

Of the total assessable income of companies for 1938-39, £12,862,154 was derived from commerce, trade, or business; £4,588,594 from industry or manufacture; £131,839 from farming; £911,778 from transport or communication; £147,196 from building or construction; £301,649 from mining or extraction; £664,379 from investments; and £166,671 from entertainments, sport, or recreation.

The table hereunder shows the amounts of total returnable income of companies and tax assessed thereon, classified according to the size of the assessable income. This is a continuation of the preceding table, and the two may be read in conjunction.

Amount of Total Assessable Income.Total Returnable Income.Total Tax Assessed.
1936-37.1937-38.1938-39.1936-37.1937-38.1938-39.
£ £££££££
Under 10066,80278,819101,4112,7782,9503,062
100- 19990,73896,644113,3955,1295,4085,932
200- 299101,656126,671128,8996,1157,4877,759
300- 399114,211142,345171,1167,0199,20710,538
400- 499130,284131,843156,0718,7168,92610,483
500- 599116,156154,645235,9938,4229,98711,257
600- 699116,811119,207172,1409,0489,08213,286
700- 799102,246152,242147,6698,21911,71311,912
800- 899107,481125,577149,1768,91910,53112,814
900- 999111,002132,256166,6779,86611,72814,288
1,000- 1,999868,8961,128,3481,287,08696,077123,680141,349
2,000-2,999613,118843,394961,07594,182127,065147,515
3,000-3,999567,454621,002729,964106,215119,611135,354
4,000- 4,999351,333680,827658,75282,722155,566144,761
5,000- 5,999264,347474,448519,36970,575130,220136,788
6,000- 6,999326,782363,557471,69688,894101,615144,337
7,000- 7,999184,116281,244308,91161,19993,24997,920
8,000-8,999205,171189,244239,86171,89666,53985,317
9,000- 9,999175,171150,965243,25863,42953,18388,874
10,000-10,9991,231,9671,729,3941,785,245456,566613,899631,340
20,000-29,999848,0411,088,5161,584,625301,733390,816536,756
30,000-30,999611,858802,647844,361200,494251,439279,536
40,000-49,999582,579652,167765,252208,972209,634250,478
50,000-99,9992,296,1892,836,2502,441,374831,2391,002,283829,444
100,000 and over4,092,1185,971,2886,292,3821,263,0851,851,3442,049,142
     Totals1,276,52719,073,54020,675,7584,071,5095,377,1625,800,242

The figures shown in respect of total returnable income, classified according to the size of that income, do not vary greatly from the figures in the foregoing table. The difference between the assessable income and the total returnable income for 1938-39 amounted to only £901,498, or 4.6 per cent of the assessable income. This difference is spread more or less evenly in proportion to the size of income.

The same scale of income-tax rates was in operation during each of the three years covered by the table, and the variations in the amount of tax assessed are therefore due to movements in the amounts of assessable income. The actual rate of tax payable by a company having a taxable income not exceeding £5,500 was 1s. in the £1, increased by 1/100 d. for every £1 of taxable income. On incomes of over £5,500 the rates were 5s. 7d., increased by 1/150 d. for every £1 in excess of £5,500, with a maximum rate of 7s. 6d. in the £1. Companies do not pay the additional tax of 33⅓ per cent. on unearned income.

On the average, income-tax levied on companies in 1938-39 absorbed 29.3 per cent. of the assessable income for that year, compared with 29.1 per cent. in 1937-38 and 29.3 per cent. in 1936-37. The percentages of tax assessed to total returnable income were 28.1 per cent. in 1938-39 and 1937-38, and 28.5 per cent. in 1936-37.

Preliminary figures of company incomes for the tax-year 1939-40 are available and are presented hereunder.

In comparison with the previous year, the figures for 1939-40 show an increase of 455 (6.5 per cent.) in the number of tax-paying companies, £962,593 (4.6 per cent.) in the amount of assessable income, and £1,761,787 (13.4 per cent.) in the amount of tax assessed. The taxation figure for 1939-40 includes the additional 15 per cent. imposed by the War Expenses Act, 1939.

The average assessable income and the average tax assessed per return were £2,944 and £1,074 respectively in 1939-40.

COMPANIES.—TAX-YEAR 1939-40.

Amount of Assessable Income.Number of Taxpayer:;.Total Assessable Income.Total Returnable Income.Tax assessed.
£  £££
Under 2002,209165,895202,48220,061
200- 299605147,748149,55318,790
300- 399449154,748161,53419,862
400- 499374165,748174,70121,828
500- 599326176,809306,57924,183
600- 699269173,489175,78524,107
700- 799187140,028141,96120,041
800- 899188159,391164,76223,687
900- 999144136,232138,21220,370
1,000- 1,9999401,313,8041,384,833225,497
2,000- 2,9994161,008,3321,031,404210,808
3,000- 3,999226782,092793,593195,148
4,000- 4,999117521,300523,012150,430
5,000- 5,999111609,987639,362202,724
6,000- 6,99967433,861459,420158,002
7,000- 7,99943318,719320,955125,896
8,000- 8,99927228,717229,920100,834
9,000- 9,99925237,049239,361105,195
10,000-19,9991452,085,5032,263,958935,637
20,000-29,999601,483,8121,549,344654,368
30,000-39,999331,159,4751,209,665527,801
40,000-49,99922990,0321,037,878418,433
50,000-99,999271,880,3972,010,181834,111
100,000 and over306,263,6856,714,0932,532,767
     Totals7,04020,736,85322,022,5487,570,579

Of the total of 7,040 companies, the assessable income was less than £1,000 in 4,751 cases, this figure representing 67.5 per cent. of the total number. The aggregate assessable income of these companies, however, amounted to only 6.8 per cent. of the total assessable income of all companies. On the other hand, the 317 companies which had assessable incomes of £10,000 and over accounted for £13,862,904 (66.8 per cent.) of the assessable income and £5,903,117 (78.1 per cent.) of the tax assessed.

NON-RESIDENT TRADERS.

A non-resident trader is defined as any person who, being in New Zealand, carries on business there without having any fixed and permanent place of business or abode in the Dominion. Returns made by agents for non-resident traders and returns by the consignees of overseas goods sold on consignment account are included in this class.

The principal data for the tax-years 1937-38 and 1938-39 in respect of nonresident traders are given in the following table:—

Amount of Total Assessable Income.Number of Returns and Taxpayers.Total Assessable Income.Total Tax Assessed.
1937-38.1938-39.1937-38.1938-39.1937-38.1938-39.
   ££££
Under 10095881131,72825,8182,0481,548
100- 19920018328,36426,1831,8901,676
200- 2991108827,48022,2151,9111,505
300- 399755725,78319,4191,9061,597
400- 499393917,34017,3331,2351,322
500- 599222012,09610,929880814
600- 699271717,55711,1421,539934
700- 799172212,86616,6561,2301,558
800- 899131410,87911,9051,0651,017
900- 9991089,5007,534923701
1,000-1,999372449,65834,8195,5714,033
2,000-2,999151537,32636,7746,5915,898
3,000 and over91178,67296,15026,41233,209
     Totals1,5321,309359,315336,87753,20155,812

SOCIAL SECURITY RETURNS.—INCOMES OF INDIVIDUALS.

The Social Security Act, 1938. and regulations under it, require every person of the age of sixteen years or over to furnish annually a declaration of income (other than salary or wages) for the year ended 31st March. The requirements of the Act cover both males and females, and Maoris as well as Europeans, but omit persons receiving total disability war pensions. Part II of the declaration comprises a statistical questionnaire on which is required to be shown the total income of the individual, including salary or wages, and the data quoted hereunder are derived from these statements for the year ended 31st March. 1939. The income dealt with, therefore, is the income from all sources.

This information is of particular interest in that it extends to all persons of sixteen years of age or over, irrespective of the size of the income, and therefore gives an indication of the relative distribution of incomes throughout the community, whereas the data obtained from the income-tax returns is practically confined to incomes of £200 and upwards.

Although declarations for the year ended 31st March. 1939. were required to be furnished by 31st May, 1939, many thousands were received long after that date, and the present statement deals with returns coming to hand up to 16th April, 1940. The total number of returns received up to that date was 955,134, of which 485,674 were for males and 462,060 for females; in 7,400 cases no data of any kind had been entered in the questionnaire. The number of returns was substantially less than should have been furnished. It is believed, however, that the great majority failing to supply returns had little or no income apart from salary or wages; in such cases, having no further social security tax (or very little) to pay, many did not appreciate, despite considerable publicity given to the requirements, that a return was still necessary.

In addition to the 7,400 returns on which no data of any kind was furnished, some 43,690 (31,300 males, 12,390 females) were incomplete in respect of income, and a further 2,773 (2,545 males, 228 females) were cases of amending, duplicate, final returns, &c. The number of returns available for tabulation was therefore 901,271 (451,829 males, 449,442 females). Of these, 18,500 males and 206,000 females had no income, while a further 2,138 males and 427 females recorded a loss of income for the year.

The aggregate income returned by males was £114,651,000 and by females £23,057,000, an average of £266 and £95 per caput for males and females respectively. In computing these averages, cases of no income and loss of income have been excluded. It should be remembered that these averages relate to persons of sixteen years of age and upwards and obviously include many people not engaged in gainful occupations. The distribution of incomes in fairly broad divisions is as follows (this information, in much greater detail for males, was published in the June, 1940, issue of the Monthly Abstract of Statistics, and for females in the December issue of the same publication):—

Total Income.Number of Cases.Aggregate Income.
Males.Females.Total.Males.Females.Total.
£   £(000).£(000).£(000).
No income18,500206,000224,500......
Under £5026,658103,819130,4776171,6052,222
50- 9946,22758,782105,0093,3634,1587,521
100- 19998,93756,057154,99414,7517,65322,404
200- 299138,65713,521152,17834,5093,23137,740
300- 39967,4264,97372,39922,8311,70024,531
400- 49921,5811,97923,5609,50787510,382
500- 59910,3901,08411,4745,6365886,224
600- 6995,8996876,5863,7934434,236
700- 7993,7654824,2472,8063593,165
800- 8992,5513382,8892,1522852,437
900- 9991,8091861,9951,7101771,887
1,000-1,9995,6688546,5227,5351,1538,688
2,000-2,9999881501,1382,3633522,715
3,000-3,999328483761,1191641,283
4,000-4,9991432216563699735
5,000-7,49910225127609145754
7,500-9,9993287027270784
10,000 and over30442
     Totals449,691449,015898,706114,65123,057137,708

The distribution of incomes below £200 in fairly full detail is given in the next table. Omitting persons with no income or with net loss of income, 16.4 per cent. of males and 58.2 per cent. of females came within this category. Some 0.6 per cent. of males and 7.0 per cent. of females had incomes of less than £50, 3.5 per cent. of males and 25.0 per cent. of females had incomes of less than £100, and 8.5 per cent. of males and 45 per cent. of females had incomes of less than £150.

Total Income.Number of Cases.
Males.Females.Total.
No income18,500206,000224,500
Under £138,39556,78265,177
£    
13-256,27319,30625,579
26-385,86115,26421,125
39-496,12912,46718,596
50-512,4723,3575,829
52-6413,64720,52034,167
65-7710,68113,73724,418
78-9012,52413,94626,470
91-996,9037,22214,125
100-1035,9094,38210,291
104-11612,18211,72623,908
117-12912,0499,72721,776
130-14212,0578,82720,884
143-1494,6013,5798,180
150-1557,9133,13511,048
156-16812,4515,59018,041
169-18113,5364,35817,894
182-19412,9793,45616,435
195-1995,2601,2776,537

AGGREGATE PRIVATE INCOME.

The concept of “aggregate private income” is obviously open to divergent interpretations. For the purpose of the estimates shown below, it is taken to consist of the gross income of persons from wages, salaries, pensions, investments, &c., and the net income (gross receipts, less expenditure incurred in earning them) of business houses, farmers, professional men, landlords, employers of labour, &c. Capital receipts—e.g., from deceased person's estates, repayments of debts, &c.—are excluded.

The computation for the latest year is based mainly on a consideration of the receipts from the social security charge under the Social Security Act, 1938, this charge having replaced the employment charge under the Employment Promotion Act, which formed the basis of previous estimates. Under the Employment Promotion Act certain classes of income were exempt from the charge, necessitating estimates based on other relevant data to cover them. The Social Security Act extended the charge to most of the classes in question, and they are now included under the main headings.

The extension of the charge to cover incomes of companies has permitted a computation showing the full amount of company income. Previously dividends of companies were returned by recipients as “other” income, and consequently a comparison of this item for 1938-39 with previous years is affected. Company income is similarly affected, and it should be noted that for 1937-38 and previous years the amounts shown under this heading consist mainly of undistributed income and income-tax payments. As a result of the information now available, these amounts in previous computations were found to be understated and have been revised accordingly.

It is probable that the estimate understates the aggregate private income, owing in some cases to failure to furnish returns of “other” income or to the inclusion 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.”

The receipts for any year from the 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 during the preceding year. For the 1938-39 computation, therefore, the 1938-39 receipts from the charge on wages and salaries and the 1939-40 receipts from that on other incomes are taken.

1934-35.1935-36.1936-37.1937-38.1938-39.
* Not fully comparable with previous years—see letterpress.
 £(m).£(m).£(m).£(m).£(m).
Salaries and wages65.772.585.998.6109.5
Other income of individuals31.840.454.555.552.8*
Pensions (under Pensions Act and War Pensions Act)3.13.34.76.06.5
Sustenance payments0.31.11.71.40.7
Company income (including income-tax-payments)5.57.010.511.516.0*
     Totals106.4124.3157.3173.0185.5

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).
1934-3565.761.740.738.3106.4
1935-3672.558.351.841.7124.3
1936-3785.954.671.445.4157.3
1937-3898.657.074.443.0173.0
1938-39109.559.076.041.0185.5
1939-40111.7****

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 Production.Value of Goods available for Consumption.
 £(m).£(m).£(m).
1934-35106.497.090.0
1935-36124.3114.2102.1
1936-37157.3135.8123.9
1937-38173.0135.2133.3
1938-39185.5134.8135.7

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.

Wheat, flour, and bread prices have been controlled almost without intermission since 1914-15, superphosphates since October, 1931, and motor-spirits from 1933. Road services have been subject to regulation in regard to fares and freight rates since 1931; aircraft fares are also regulated. [For fuller details see pp. 785-786 of the 1940 Year-Book.]

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 have been 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.

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, and in August, 1940, extensive regulations regarding grading and packing of all New-Zealand-grown fruit (other than berries) were gazetted.

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; prices were also to be fixed by the Tribunal for goods that had not previously been on the market. 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 provided that prices of goods and services should not be raised above the prices ruling on 1st September, except as might be specifically authorized by the Minister of Industries and Commerce. A clause in the regulations also prohibited the hoarding of goods. These regulations were superseded by the Control of Prices Emergency Regulations of 29th December, 1939, which constituted the present Price Tribunal. The general functions of this tribunal are to investigate complaints with respect to prices charged for goods or services, to issue orders fixing the maximum or minimum wholesale or retail price at which any particular goods may be sold, and to take any steps as in its opinion may be necessary to prevent profiteering or the exploitation of the public.

Foodstuffs generally, and sugar, wheat, and flour specifically, were brought under the control of the Government by emergency regulations made on 4th September, 1939.

Arrangements for the purchase of New Zealand's exportable surplus of meat, wool, dairy-produce, scheelite, woolly sheep-skins, and tallow by the United Kingdom Government were made shortly after the outbreak of the present war at agreed upon prices. Particulars of the several contracts entered into may be found on pp. 357-360.

The preceding paragraphs give a very brief survey of the development of price-control in its more important aspects. Several commodities have had their prices fixed in the past, but the regulations have since been revoked (e.g., potatoes). Those in operation at present (November, 1940) are:—

Commodity.Unit.Price.Remarks.
* To yield ¾; bushel of cured fruit.
Retail £s.d. 
   Bread2 lb. loaf00Main centres and centre boroughs, &c., cash; delivery, ½d., extra (maximum). Rest of Dominion, 6d. cash; up to ½d. extra allowed for delivery.
   Matches, woodenBox001Maximum price when not sold in packets.
   MeatLb...Price-increases granted in July of ½d. per pound for all types, and in August 1d., to be reduced by three steps, each of ½d. per pound, in November and December, 1940, and January, 1941, respectively.
   NailsLb.007 to..
  010 
   Nuts and bolts....four centres, wholesale price plus not more than 35 per cent.
   OrangesDozen017 toRetail price according to “count.” Four chief centres.
  032
   Repairs (boot and shoe)PairVariousAccording to size and type of repair.
SugarLb.004Cash over counter, four chief centres.
Wholesale     
   ButterLb.013½ toFor local consumption, according to grade.
  01
   FlourTon13106Price to bakers in four chief centres.
   Lemons“Measure case”*045 toAccording to grade.
  069 
   Motor-spiritsGallon (Imp.)022 toWholesale price, according to locality, for standard spirit. Retail price, approximately 3d. per gallon higher.
  02
   OnionsTon400Minimum price for f.a.q. grade.
   OrangesCase130 toWholesale price, according to “count.” Four chief centres.
  160
   Board products (Whakatane Mills)TonVariousMaximum price.
   Sacks—     
     NewEach013Maximum prices.
     Old,,011Maximum prices.
     FlourEach0011Maximum prices.
   Storage batteries....Maximum discounts allowed to the retailer.
   Superphosphates—     
     44-46 per cent.Ton396North Island price to consumer.
     44-46 per cent.Ton426South Island; price to consumer.
Export, manufacture, &c.—     
   Wheat (milling)—     
     TuscanBushel0511Prices to South Island mills, plus a subsequent payment of 3d. per bushel.
     HuntersBushel061
     PearlBushel063
   Tobacco (raw leaf)—     
     Flue-curedLb.0110½Average price to grower.
     Air-driedLb.01Average price to grower. (Minimum price, 1s. 2d. f.o.b. or f.o.r.)
   Scrap metal—     
     Cast ironTon500First grade. Price for delivery to purchaser.
     Cast ironTon4150Second grade. Price for delivery to purchaser.
     OtherVariousVariousAccording to kind and grade.
   RagsLb.VariousAccording to kind and grade.
   Blue codLb.008Minimum price f.o.b. for export.
Produce under United Kingdom purchase agreements      
   ButterLb.011.39 toAccording to grade, price f.o.b.
  013.015 
   CheeseLb.008.17 toAccording to grade, price f.o.b.
  008.57625 
   MeatLb.VariousAccording to kind and grade.
Wool, greasyLb.01Overall average price at brokers' warehouse.
Tallow and hog greaseTon13120 toAccording to grade and packing.
  4476 

Prices of wheat shown in the foregoing statement are those ruling in November, 1940. 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 index 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, social-security tax, and national-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.
1930983959946966964974
1931848827843829837845
1932773761770751764775
1933724719732700719732
1934781760765743762774
1935863811814811825835
1936893848846845864870
1937977935933957951956
193810089819611006989991
1939105110321039109210541052

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 covered 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 index for the three food groups reached its peak (1165) in 1920. Following a sharp fall in 1922 to 958, the index rose slightly, and remained fairly constant till 1931, when the index again began to fall rapidly. The lowest point was reached in 1933, the Dominion index (732) being only 4.1 per cent. above July, 1914. Since then the index has shown a continuous upward movement and is now well above the 1930 level. 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.

From the peak level of 1921 prices in the groceries group fell steadily though slowly until 1933, when the low point of 819 was reached. Prices rose generally during 1934 and 1935, but in 1936 there was again an appreciable fall. An increase of 67 points was recorded in 1937, and although there was a small downward movement of 12 points in 1938 the index for 1939 shows a substantial increase over the previous year. In both 1938 and 1939, the major cause of the movements was the price ruling for potatoes.

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.
1930928922883924914932
1931899876842887876891
1932856837804863840857
1933813780787832803819
1934815837817850830845
1935884904858900887899
1936852871854870860878
1937912941916971935945
1938899930909949922933
1939104510551028110310581067

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 farther on. 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.
1935887881869916888
1936881898872911894
1937921965925989950
19389399929601006974
193910441043101810541040
Group 1b.—Bread, Flour, Oatmeal, Potatoes, and Onions.
1935845878807853846
1936789807792796796
1937854871854914873
1938827839829865840
19391005100998510851021
Group 1c.—Sugar.
193510621084107110811075
193610831108109711151101
193711661212118711981191
193811381203116011981175
193912421303125913081278

There has been a marked upward movement in the indexes for general groceries (Group 1A) and for sugar (Group 1C) although the increase in the latter has been relatively less than in the former. The indexes in Group 1B have fluctuated somewhat during the period covered by the table, the increase of approximately 20 per cent. in the 1939 index as compared with 1938 being due almost entirely to the abnormal prices ruling for potatoes during 1939.

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.
1930942954905954939939
1931819836766778800807
1932742761667680713722
1933652708617625651661
1934680704612651662666
1935761787698744748749
1936821839729789795801
1937915935873887903902
1938947983913920941940
193910061030965985997999

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 was apparent. The 1933 annual average index (661) is considerably below that for any year during the preceding decade, while the 1934 Dominion figure recorded a rise of only five points as compared with 1933. From 1935 a continuous upward trend has been exhibited, and prices have now reached the level ruling in 1929.

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 decline in 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 of 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; although there was only a 2-point increase from 1938 to 1939. The level at which the index now stands is the highest recorded since 1920.

MEAT.—INDEX NUMBERS.

Year.Auckland.Wellington.Christchurch.Dunedin.Average of Four Centres.Dominion Weighted Average. (1926-30 = 1000.)
193010529901023100510181033
1931829781897815831834
1932729702817714741747
1933705678769650701714
1934827740838725783796
1935919756863789832846
1936977835924866901912
193710729319909959971003
1938113610211035111210761075
1939108710161102117010941077

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. 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.

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 lot, 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.

HOUSE-RENT.—INDEX NUMBERS.

YearAuckland.Wellington.Christchurch.Dunedin.Average of Four Centres.Dominion Weighted Average (1926-30 = 1000).
1930953132697395810531007
19318761241926936995953
19327631063823846874844
1933693937748799794766
1934696929747792791758
1935719964755802810774
1936770997777821841804
19377911023800838863828
19388151061833865894858
19398601073839892916887

House-rents reached a peak level in 1929, after which 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 1940 places the expiry-date at 30th September, 1941. The 1939 and 1940 amending Acts 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 1939, illustrate this point:—

Group.Weighted A wage 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.
Groceries10521104..521067
Dairy-produce10009973..999
Meat1083106221..1077
Three food-groups10491056..71052
House-rent91682492..887

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, 1939.

Centre.Group I: Groceries.Group II: Dairy-produce.Group III: Meat.Groups I-III: Food Groups.Group IV: House-rent.
Auckland1045100610871051860
Wellington10551030101610321073
Christchurch102896511021039839
Dunedin110398511701092892
Whangarei1083101611801103887
Hamilton1156101210571075911
Waihi1130102611101092579
Rotorua1164101811341110910
Gisborne113910359521034745
Napier11039799581009850
Dannevirke106698110221024736
New Plymouth108397010171024901
Wanganui1123100610741070744
Taihape1161101710771086801
Palmerston North1104100610921071910
Masterton1110101410701067863
Blenheim110199011091072743
Nelson1084101810991071840
Greymouth105310369931024772
Ashburton101296310371008891
Timaru106896510761042824
Oamaru108499410461043791
Alexandra1206101311431126673
Gore111098511241080715
Invercargill110696511181070767
Weighted average for Dominion106799910771052887

Ashburton, Christchurch, Auckland, and Greymouth are the cheapest in respect of prices of groceries, while Alexandra has the highest index for this group. Greymouth, Gisborne, and Wellington are dearest in respect of prices of dairy-produce; and the Whangarei index for meat is highest, followed by Dunedin and Alexandra. Ashburton shows the lowest prices for dairy-produce, while meat is cheapest in Gisborne and Napier.

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 candles—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.     
19301112968988897991
19311108951995892987
19321020925993894958
1933860931987781890
1934807886976695841
1935900873974713865
1936952879955762887
19371002915977802924
193810409741025816964
193910839981032849991

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. (IV.)Fuel and Light. (V.)Clothing, Drapery, and Footwear. (VI.)Miscellaneous. (VII.)All Groups combined. (I-VII.)Increase per Cent. over July, 1914.
Groceries. (I.)Dairy-produce. (II.)Meat. (III.)Three Food Groups. (I-III.)
* Month of July.
1914*624719759703535585686601628..
19157708028328035385937466466767.6
191676988090885754163787171272415.3
1917836933982920553728103179478625.2
19189419681038985566782121689885035.4
1919982102510681027581852147697591245.2
19201206118411141165613101316531131101962.3
1921122812579541134680113115091153103464.6
1922110098581395872410451274110395251.6
1923104310098629657929981173105595952.7
19241060105392010058599851139103398456.7
1925104410431008103091299311111015100459.9
1926104710459941026962100210601013101060.8
1927101510109379831000100510171033100159.4
1928103310069791004101410119951002100660.2
1929973999105210131019992980986100459.9
19309329391033974100799194798698156.2
193189180783484595398786998690644.3
193285772274777584495881497383833.4
193381966171473276689081697679526.6
193484566679677475884183297380828.7
193589974984683577486582898083733.3
193687880191287080488783799386437.6
19379459021003956828924915105092347.0
19389339401075991858964936105495151.4
1939106799910771052887991960108699057.6

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 1939 being 24.5 per cent. above that for 1933.

The diagram which follows illustrates the fluctuations of retail prices and house-rents from 1914 to 1939, 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.

Daring 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 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 on Prices, &c., for 1937.

Indexes in the new series have been prepared, annually from 1914 onward, and monthly commencing with 1936.

WHOLESALE PRICES.—GENERAL INDEX NUMBERS.—BASE: 1926-30=1000.

Year.Index Number.
1914748
1915805
1916882
19171024
19181225
19191282
19201536
19211428
19221194
19231115
19241120
19251114
19261053
19271001
1928994
1929988
1930963
1931902
1932878
1933904
1934909
1935937
1936946
19371021
19381036
19391071

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.1914.1935.1936.1937.1938.1939.
1. Foodstuffs, &c., of vegetable origin—      
    A. Agricultural produce842102386110529151323
    B. Fresh fruit and vegetables7648978019069261055
    C. Milled agricultural products644743770791783776
    D. Other foods and groceries of vegetable origin61311271110113111301189
    A-D. Four subgroups combined6341018979103610111123
2. Textile manufactures535780769810806815
3. Wood and wood products582954997108211501184
4. Animal products—      
    A. Meats94185291891910421011
    B. Semi-manufactured animal products (not foods)8386388411135704691
    C. Leather676961979115311391129
    D. Other foods and groceries of animal origin785734791850881965
    A-D. Four subgroups combined843807869924973992
5. Metals and their products91910561069124912961277
6. Non-metallic minerals and their products—      
    A. Mineral oils116411301159120711521235
    B. Coals539934963103710611085
    C. Other non-metallic minerals and their products600986973100710171023
    A-C. Three subgroups combined82110281050110610941140
7. Chemicals and manures954840826833840861
       All groups combined748937946102110361071

In the next table index numbers are given by classes from 1913 to 1939, 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.

WHOLESALE PRICES.—INDEX NUMBERS BY CLASSES.—BASE: 1926-30 = 1000.

Year.Consumers' Goods.Producers' Materials, &c.Imported Commodities.Locally-produced Commodities.All Classes combined.Classes I and II Combined.Classes III and IV combined.
Class I: Foodstuffs.Class II: Non-Foods.Class III: Materials for Building and Construction.Class IV: Materials for other Industries.
Average 1926-301000100010001000100010001000....
1913705597795774768664724660778
1914766605792791772716748699791
1915895618780840783835805780827
1916943715876920894865882849911
1917101385010711095108494210249481090
1918108912831315126013781016122511691272
1919113413891251133814421063128212401319
1920123116371527169117911190153613991655
1921120114771531152315891210142813161525
1922100813381241123613201024119411451237
1923104112221129110911791027111511161114
1924106212021136111511611063112011201120
1925108211251144112111451072111411001126
1926101310731060106910721028105310381067
192799610011024999100899310019981004
1928101299197499098510079941003986
1929101697996698197510069881001977
1930903956976962959967963960965
1931837923954919938853902873927
1932783923924905933802878841910
1933801935987932986793904857944
1934824920990935977815909864947
1935915933992937980878937922949
19369179321019950979901946923966
193796697811721035106296610219711065
193899297912151039107298710369861078
1939108810001206105410841052107110511088

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 nearly 200 points since 1932. The greatest increase over the seven years' period (305 points) occurred in the “foodstuffs” class.

The high prices ruling for potatoes during 1939 were reflected by the 96-point increase in the “Foodstuffs” class index since 1938, and a similar cause operated in producing the 408-point increase in the “Agricultural Produce” sub-group shown on the previous page.

The following diagram 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.
1930120617121003124312791267244710621283
19319891301679767965115521911177984
19329341109625622870110220731162892
19338391165671755867115721101416896
19347671518127388810891200218015541109
1935913157682296710721260216917051102
1936104615961107123912281321214817081250
1937109216511768153514231365248217921440
193812101752117694713401396275218161367
193912311635109894312901543272919541324

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 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 lower prices received for wool in 1938 were reflected in the 1938 index for all groups, this recording the first fall (73 points) of any consequence since 1932. In 1939 the meat group registered its first decrease since 1932, while the wool index fell still further, the all groups figure being 43 points below the 1938 level.

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.
19311029141972692110351219244110651052
19329741189641671914115821661107934
19338571093621598831115020781375861
19348101415121891110701183215714851089
1935806157781484410141228216516821046
193699315731049113711791311209617321205
1937105416231705143713791362233417521397
1938119617251254125713641378262118051386
193912121677110487712911444274318571320
1940131017341457115814561292261421401479

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 1932-33 to 1218 in the following year. A recession in wool values caused a fall to 814 in the 1934-35 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 1937-38, and a further fall of 150 points in 1938-39.

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 since has resulted in a series of increases.

The purchase of the exportable surplus of New Zealand's meat, wool, and dairy-produce by the United Kingdom Government at prices somewhat in advance of those ruling in the 1938-39 season was arranged shortly after the outbreak of war, and the effect of this arrangement is reflected in the indexes for 1939-40, particularly in the meat and wool groups.

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 declared values of commodities for import—i.e., prices in the exporting country plus 10 per cent. to cover freight, &c. expressed in terms of New Zealand currency.

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 approximately 300 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 Croups.
1926100100100100100100100
192794999994979599
192890110109929894100
19298610610591989499
193084838389949197
193177636487838690
193275565887788383
193378565892778679
193476717291798680
193575707291858983
193675808191889086
193779929499949791
1938788789100969894
193979848610110210298

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 1939 is shown to be in the ratio of 79: 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, manures, 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 1939 (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.
19141000100010001000
19291636149213211599
19301628116812871562
1931149088112061447
19321250*79511741334
19331150*79212091266
19341150*99512151287
19351150*97912531331
19361250*112112651376
19371450*130013651470
19381500*122413851514
19391500*117814321576

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 ruling in 1934, particularly in the early months of that year. The 1937 index, revealed an increase of 179 points over 1936 and of 321 points over 1935, and was the highest since 1929, but the 1938 index exhibited a fall of 76 points, with a further decrease of 46 points ill 1939.

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 345 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. Each individual share and group of shares is “weighted” in accordance with the number and value of shares held in New Zealand. 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.

Industrial shares have been separated, and index numbers computed back to 1938. These are included in the following tables of annual and monthly index numbers.

SHARE-PRICES INDEX NUMBERS—ANNUAL, BY GROUPS, 1933-39.

(Base: Average for each group, 1926 = 1000.)

Group.1933.1934.1935.1936.1937.1938.1939.
Industrial—       
   Frozen meat835914884829796737668
   Woollens923115912721232119310461066
   Gas105312351308118910741002855
   Timber411547623709662630650
   Minerals753883107710751016912869
   Miscellaneous (Industrial)848105411931176122411211090
Other—
   Miscellaneous (other)12171241
   Banks742779776721734675623
   Insurance1190145015791471150614031367
   Loan and agency545660583601667557460
     All groups combined8229601026986993916869
     Industrial groups..........960910

NOTE.—These index numbers are comparable horizontally but not vertically.

SHARE-PRICES INDEX NUMBERS—MONTHLY, 1937-40.

(Base: All groups—Average for all groups combined, 1926=1000. Industrial shares—Average for industrial groups combined, 1926 = 1000.)

Month.1937.1938.1939.1940.
All Groups.Industrial Shares.All Groups.Industrial Shares.All Groups.Industrial Shares.All Groups.
January9961009958916871979935
February993997946910866980940
March995994944893855985944
April9939909368928511023976
May1009966928920875941899
June999962917903859888852
July1003978933910870918891
August1013966923890855932897
September992921885879843956918
October988939893908869939905
November964907870943904933903
December963895859957916....
     Annual average—All groups993..916..869....
     Industrial groups..960..910......

The international comparisons of share-prices indexes (see pp. 805-806 of 1940 Year-Book) have now been discontinued, owing to the difficulty of obtaining more recent comparable data.

SUMMARY OF PRICE MOVEMENTS.

The following table gives a summary (on base 1926-30 = 1000) for the last ten years of the movements in the more important series of price index numbers:—

Year.Retail.WholesaleExport.Import.Share Prices, All Groups.
Food.All Groups.Locally-produced Items.Imported Items.All Groups.All Pastoral and Dairy-produce.All Groups.
193097498196795996383283892924
193184590685393890262864385748
193277583880293387856658382712
193373279579398690456458586832
193477480881597790970972484972
1935835837878980937697720821038
193687086490197994679981682998
193795692396610621021926941871005
19389919519871072103687289386927
1939105299010521084107183986587880

The extent of the rise in prices in the various groups since the outbreak of the present war is shown in the following table, which has as the base for each column August, 1939, the last pre-war month.

SUMMARY OF PRICE INDEX NUMBERS, AUGUST, 1939, to NOVEMBER, 1940.

(Base: August, 1939= 1000.)

Retail.WholesaleExport.Share.
Food.All Groups.Locally-produced Items.Imported Items.All Groups.All Pastoral and Dairy-produce.All Groups.Industrial.All Groups.
* Provisional figure.
1939—         
   August100010001000100010001000100010001000
   November106210321021102810251031102910601057
1940—         
   February100410181006107910491170115711011099
   May101710341023114210931163115310571051
   August100910471002122011301152114410471049
   November10251057*1011126511611163115510481056

The index covering imported items included in the wholesale price index shows the greatest increase (265 per cent.), followed by the export price index covering all pastoral and dairy-produce (16.3 per cent.).

Food prices in the retail group and locally-produced items in the wholesale group have advanced very slightly. This is due to the abnormally high prices ruling for potatoes in August and November, 1939; consequently increases in the price of foods other than potatoes are veiled to some extent.

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 (sec 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.1914.1930.1931.1932.1933.1934.1935.1936.1937.1938.1939.
Provision of—           
  Food, drink, &c.665111410549959639679911068116512481266
  Clothing, footwear, and textiles6071027969923921924927979103510631122
  Building and construction6541031969916898897910979105111221126
  Power, heat, and light656109610389903739739751047110711571194
  Transport by water65411351073102599199810451105119012091217
  Transport by land61710579889268999209401008107010931116
  Accommodation, meals, and personal service660976917868828824849928101710381077
Working in or on—           
  Wood, wicker, sea-grass, and fibre634108710069579138999161014109711511179
  Metal717111410509879389369521048112512091241
  Stone, clay, glass, and chemicals5841036973935911893886980105911121139
  Paper, printing, &c.7571189112610581026101910511130119312471250
  Skins, leather, &c.6001049980938919905896976105410901116
  Mines and quarries66410409849379289389651010107611171117
  The land (farming pursuits)519809701550516528541694824849859
  All groups combined6231017942864833839858950103610811100

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.

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, when the all-groups index registered a further advance of 86 points or 9.1 per cent.

In 1938 and 1939 the general index showed further increases of 45 and 19 points respectively, and in the earlier portion of 1940 remained almost stationary. In July, 1940, an application was made under the Rates of Wages Emergency Regulations 1940, fixing wages in industry, to meet the increased cost of living. The decision of the Court of Arbitration was an increase of 5 per cent. in all rates of remuneration in awards, industrial agreements, and apprenticeship orders, as from the 12th August.

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 1939 is that for the group “working on the land ” (859), followed by “accommodation, meals, and personal service ” (1077). 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.

EFFECTIVE WEEKLY WAGE RATES.

The index numbers quoted in the foregoing discussion relate to nominal wage-rates—that is, they are based on actual or equivalent 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.
19309811017101010371030
193190694295210401051
193283886490510311080
193379583388710481116
193480883988710381098
193583785890310251079
193686495096111001112
19379231036101511221100
19389511081105511371109
19399901100110311111114

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. As from 1st April, 1939, the employment promotion legislation was replaced by the Social Security Act, 1938, under which the wages-tax was increased to 1d. for every 1s. 8d. of wages. A further tax on wages, also at the rate of 1d. in 1s. 8d., was imposed as from 21st July, 1940, the proceeds of which are to be devoted to war purposes. 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.1926-30.1914.1935.1936.1937.1938.1939.
Provision of—       
  Food, drink, &c1000601896966105311281144
  Clothing, footwear, and textiles1000596,633910961101510431100
  Building and construction1000633887954102410931097
  Power, heat, and light1000600891957101110571090
  Transport by water10005929451000107610931100
  Transport by land1000588896961101910411063
  Accommodation, meals, and personal service1000680875956104710681109
Working in or on—       
  Wood, wicker, seagrass, and fibre1000588851942101810681094
  Metal1000647860946101510911120
  Stone, clay, glass, and chemicals1000576866959103510871112
  Paper, printing, &c1000637884950100210481050
  Skins, leather, &c1000574858934100810421068
  Mines and quarries1000637927970103310711071
  The land (farming pursuits1000675705903107111041116
All groups combined1000623858950103610811100

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 1939 index for the “paper, printing, &c., ” group is 21 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 Group191419351936193719381939
Provision of—      
  Food, drink, &c556911100211312151233
  Clothing, footwear, and textiles552875953107311051162
  Building and construction613873980111211921198
  Power, heat, and light6009131014115412181264
  Transport by water5939701054120412221229
  Transport by land547856948108911141136
  Accommodation, meals, and personal service443757891105510771119
Working in or on—      
  Wood, wicker, seagrass, and fibre577851982115512161215
  Metal6559451051119712851319
  Stone, clay, glass, and chemicals529814933112111771204
  Paper, printing, &c72310461129123013251329
  Skins, leather, &c527801911107011371170
  Mines and quarries6119221008114111851186
    All groups combine587894995113811951216

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.1926-30.1914.1935.1936.1937.1938.1939.
Provision of—       
  Food, drink, &c.1000542888978110411851203
  Clothing, footwear, and textiles1000574911992111711501212
  Building and construction10006308981008114312261232
  Power, heat, and light10005979031002114012041250
  Transport by water10005629211000114311601167
  Transport by land10005789051002115111771201
  Accommodation, meals, and personal service10005138791034122412501298
Working in or on—       
  Wood, wicker, seagrass, and fibre1000578853984115812191248
  Metal1000612882981111812001232
  Stone, clay, glass, and chemicals10005778751002120512641294
  Paper, printing, &c.1000615891960101711281131
  Skins, leather, &c.1000571868987116012331268
  Mines and quarries10006189341021115612001201
All groups combined1000587894995113811951216

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 riding 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 employed in private homes (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.1914.1935.1936.1937.1938.1939.
Provision of—      
  Food, drink, &c.390767809853869950
  Clothing, footwear, and textiles5348518939329771029
  Accommodation, meals, and personal service83610741176126312941334
  Working in paper, printing, &c.487892979105510951110
All groups combined602903961101510551103

The all-groups index for 1939 is 9.2 per cent. above the previous peak level recorded in 1929 and 1930 (1010), while the individual groups range from 5.5 to 11.4 per cent. higher.

WAGE RATES: ALL ADULT WORKERS.

A series of index numbers has been computed (on the base 1926-30 = 1000) for all adult workers; this varies but little from the index for adult males, as the latter exercise the predominant influence in the composition of the base. Index numbers for the last ten years available are:—

Year.Index.
19301016
1931942
1932868
1933839
1934844
1935862
1936951
19371034
19381080
19391100

WAGE-RATES OF JUVENILE WORKERS.

During 1936, the compilation of index numbers 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 to a limited extent only, 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.1914.1935.1936.1937.1938.1939.
Juvenile Males.
* No provision made in awards for juvenile females.
Provision of—      
  Food and drink6659861061118712411260
  Clothing, footwear, and textiles54476387499010101032
  Building and construction592850933103910391073
  Transport by land6099511020109511121156
  Accommodation, meals, and personal service5628921006112211241136
Working in or on—      
  Wood, wicker, seagrass, &c.55476587099010871156
  Metal487830982115611891209
  Stone, clay, glass, and chemicals511941996125413081294
  Paper, printing, &c.609777876974974974
  Skins, leather, &c.746848939105311971209
  Mines and quarries114216921793200420282028
  The land (farming pursuits)680684988113411891217
All industrial groups619807986112411641191
Juvenile Females.
Provision of—      
  Food and drink51210341124124012481287
  Clothing, footwear, and textiles6408451044124012871318
  Working in paper, printing, &c.*11111207130213641380
All industrial groups6169101078124812891320

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.

Schedules showing the unweighted averages of award rates of wages for all occupations as prescribed in awards of the Arbitration Court are contained in the 1940 and previous issues of the Year-Book, but considerations of space preclude their inclusion on this occasion. For the latest data in this connection, readers are referred to the Statistical Report on Prices, Wage-rates, &c.

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 1935 to 1939. 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, with certain exceptions (and those only in recent years), 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.1914.1935.1936.1937.1938.1939.
Provision of— Males.    
  Food and drink11351011988947944944
  Clothing, footwear, and textiles1000978948888888888
  Building and construction988977923866866866
  Power, heat, and light10611017978902883870
  Transport by water109310751045911911911
  Transport by land10441028996905905905
  Accommodation, meals, and personal service13251039974891891891
Working in or on—      
  Wood, wicker, seagrass, &c.993989947866866866
  Metal1008953924866866866
  Stone, clay, glass, and chemicals10261017969872872872
  Paper, printing, &c.948927918896866866
  Skins, leather, &c.10391037994901901901
  Mines and quarries981953924866866866
All groups combined1041999963890888888
Provision of— Females     
  Food and drink976976940867867867
  Clothing, footwear, and textiles1006990960901901901
  Accommodation, meals, and personal service12171041975891891891
  Working in paper, printing, &c.976954941903867867
All groups combined10541000962898896896

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.1926-30.1914.1935.1936.1937.1938.1939.
Provision of— Males.     
  Food and drink100011281005982942939938
  Clothing, footwear, and textiles100010231000969908908908
  Building and construction100010111000944886886886
  Power, heat, and light10001041998960885867854
  Transport by water10001014997970845845845
  Transport by land100010161000968880880880
  Accommodation, meals, and personal service100012751000937857857857
Working in or on—       
  Wood, wicker, seagrass, &c.10001002997955874874874
  Metal100010581000970909909909
  Stone, clay, glass, and chemicals100010091000952857857857
  Paper, printing, &c.10001021998989965933933
  Skins, leather, &c.100010031000959869835869
  Mines and quarries10001016988957897897897
All groups combined10001041999963890888888
Provision of— Females.     
  Food and drink100010001000963889889889
  Clothing, footwear, and textiles100010161000970911911911
  Accommodation, meals, and personal service100011691000937856856856
  Working in paper, printing, &c.10001013991977938900900
All groups combined100010541000962898896896

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), and cooks and stewards while at sea (from nine hours to eight hours per day).

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, although in a few cases in 1940 increases in hours worked have been permitted in some industries of special importance in the war economy. This matter is dealt with in more detail in the next succeeding section (page 733).

SUMMARY OF INDEX NUMBERS.

The following table gives a summary for the last ten years of the movements in index numbers covering both wage-rates and hours of labour:—

WEEKLY WAGE RATES, HOURLY WAGE RATES AND AVERAGE HOURS.

(Base 1926-30 = 1000).

Year.Nominal Weekly Wage-rates.Hourly* Wage-rates:Males.Hours worked
Adults.Juveniles.
Males.Females.Combined;Males.Females.Males.*Females.
* Excluding the agricultural and pastoral group.
19301017101010161020101010069991000
19319429529429499799479991000
19328649058688589488969991000
19338338878398219108779991000
19348398878448139078789991000
19358589038628079108949991000
19369509619519861078995963962
1937103610151034112412481138890898
1938108110551080116412891195888896
1939110011031100119113201216888896

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 ail 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, as from 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 much progress has already been achieved in this connection (vide, page 474).

Prior to the passing of the Social Security Act, 1938 (vide Section XXV), 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 (Australia), 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 has rectified 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 a little later 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 reduce 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 subsequent sessions of Parliament have been 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 in 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 the 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 Wages Protection and Contractors' Liens Act, 1939, consolidates 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 Rural Housing Act, 1939, makes further provision for housing facilities in rural localities, while the Small Farms Amendment Act, 1939, provides that Crown land subject to the Act may be disposed of by way of renewable lease.

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.

VARIOUS MEASURES NECESSITATED BY WAR CONDITIONS.

The Labour Legislation Emergency Regulations 1940, which superseded regulations of a similar nature issued on 14th September, 1939, give the Minister of Labour power to suspend, by Order published in the Gazette, the provisions of any Act, or of any award or industrial agreement under the Industrial Conciliation and Arbitration Act, or of any voluntary agreement, in so far as they relate to conditions of employment. As the title of the regulations suggests, the powers conferred upon the Minister are intended to be of a temporary nature, and the main object of the regulations is to overcome the effects of the shortage of skilled workers in certain industries which are essential to the efficient prosecution of New Zealand's war effort. This has been effected mainly by permitting the working of shifts and by extending the number of hours that may be worked in any one week. In addition, apprenticeship conditions in certain industries have been relaxed and additional apprentices engaged, while, in the clothing and related trades, the female basic-wage provision has been removed to enable women workers over twenty-one years of age without previous experience to be employed.

The various Labour Legislation Suspension Orders that have been issued under the authority of the foregoing regulations lay down the conditions of employment under which shifts and extended hours may be worked, and the rates of pay in connection therewith. The more important industries, &c., that have been the subject of suspension orders are as follows: Public works for emergency or defence purposes, ammunition-manufacturing works, timber-mills in certain localities, woollen-mills, shearing operations, tinsmithing and sheet-metal works, &c., engaged mainly in manufacturing dairy equipment, clothing and related trades, tanneries, in certain districts, and cheese-factories.

An important and far-reaching step has been taken by the Government in connection with the control of work on wharves, &c., in order to ensure the utmost expedition in the loading, unloading, and storage of cargo. The Waterfront Control Commission Emergency Regulations, issued under the authority of the Regulations Act, 1936, provides for the appointment of a Waterfront Control Commission of three persons and the appointment of Waterfront Controllers and other officers at the various ports. The Commission has been given very extensive powers, including the employment of labour and the prescription of terms and conditions of such employment, and the rates of remuneration. It may also make provision for a guaranteed weekly minimum payment. The whole of the provisions of the New Zealand Waterside Workers' award and of the provisions of the Labour Disputes Investigation Act, 1913, and certain provisions of the Industrial Conciliation and Arbitration Act in so far as they relate to that award, have been suspended.

The Rates of Wages Emergency Regulations, issued in May, 1940, provide that the Arbitration Court, from time to time, on the application of any industrial union or association of employers or workers, may amend by general order the provisions of all awards and industrial agreements in force in so far as they determine rates of remuneration. No such amendment can be made at less than six-monthly intervals. In making a general order the Court is required to take into account (a) the economic and financial conditions affecting trade and industry in New Zealand; (b) the cost of living; (c) any rise or fall in the cost of living since a previous order was made; (d) all other relevant considerations. Under these regulations, rates of payment in all awards, &c., were increased by 5 per cent. as from 12th August, 1940.

Under the Strike and Lockout Emergency Regulations 1939, strikes and lockouts were forbidden, and also the encouragement of strikes and lockouts. The regulations provide for the appointment of Emergency Disputes Committees to deal with any dispute that may arise.

FACTORIES ACT.

Important amendments to the law are contained in the Factories Amendment Act, 1936. A brief summary of the provisions of the original Factories Act which was passed in 1891 and the progressive changes that have been enacted in wage-rates and working-conditions during the intervening period may be found on page 825 of the 1940 issue of the Year-Book. The definition of a factory was widened to include all establishments where one person is employed (two persons being the minimum previously, 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-five 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 which any worker may be employed.

The minimum rate of pay was 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 were 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 now 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 was 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.

As in the case of the Factories Act, important amendments were made to the Shops and Offices Act 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 in shops 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 (previously forty-eight) 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.

The minimum rate of pay was raised from 10s. to 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.

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.

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 could be dismissed, or 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 was dismissed or his wages were 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 was placed 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.

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 appointed under the Act 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 ½d. 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. Additional precautions were provided to ensure that unlawful lights, &c., are not taken into mines, and further safeguards were made to alleviate the danger to the health of miners from the presence of dust in mines. Provision was also made for the Minister to 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 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, while a prescribed minimum of space for the seamen's quarters is also 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 bettor 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, and Inspectors of Factories have power to inspect the accommodation and to require that improvements be made where necessary.

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 356), were to be taken into account, but future rates were not to be lower than those fixed by the Act.

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.

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 ten working-days' 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. The maximum hours that may be worked without payment at overtime rates are eighty per fortnight from the second week in June to the end of August, eighty-eight per fortnight from the beginning of September to the end of December, and ninety-two hours per fortnight from the beginning of January to the end of the first week in June.

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 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. The present standard of 2s. 4d. per hour (plus the 5-per-cent. increase as from 12th August, 1940) works out at £4 18s. for a forty-hour week.

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 lbs. for adult female workers. The basic wage applies (as an absolute minimum) 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 (January, 1941), come up for review by the Court.

By a general order issued under the authority of the Rates of Wages Emergency Regulations 1940, the Arbitration Court increased by 5 per cent. the wage-rates under all awards and agreements as from 12th August, 1940. This matter is referred to in more detail on page 733.

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 latter years of the 1914-18 war and in the years immediately following. Similar action has already been taken during the present war, an allowance ranging up to £13 per annum having been granted to officers in the lower wage and salary scales as from 12th August, 1940. 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, 19,31, 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' hens.

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 of 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, nor 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 over the mortgage. If, in the case of the death or bankruptcy of a person entitled to a lien or charge, 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, workers 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 3hort 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. A section of the Native Housing Amendment Act, 1938, established a special fund to provide houses for those Natives unable to furnish the security or to make the payments which the Board would ordinarily require. In addition to the provision of housing under the Native Housing Act, dwellings for Maoris are provided in the ordinary course of the Native-land development schemes. Particulars of the numbers of houses erected, &c., are included in Subsection C of Section XVII.

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 and its progress to date is included in Section XXIII, Building and Construction. Further provision of housing-facilities in rural localities is contained in the Rural Housing Act, 1939, which empowers local authorities 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.

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 period, 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 an 1 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, 1941.

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 was 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 1878 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 be 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 war of 1914-18, 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 has now been 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 fleeing 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. The registration of one union was cancelled under the authority of this amendment on 12th November, 1940.

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.

By virtue of regulations issued in May, 1940, the Court is empowered to amend by general order the rates of pay under all awards or agreements (see page 733).

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 filing 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 mot. 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 of compensation were 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 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 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 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 at present is as follows:—

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).

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 three 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. Formerly such proceedings were taken in the Arbitration Court, but regulations issued on 1st March, 1940, under authority of section 70 of the Statutes Amendment Act, 1939, established a separate Court known as the Compensation Court for the hearing of workers' compensation cases. The new Court has all the powers inherent in a Court of record, and all references in the Workers' Compensation Act, 1922, or in the Workers' Compensation Rules 1939 to the Court of Arbitration are now deemed to be references to the Compensation Court. In certain cases proceedings are 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 546-547 of this Year-Book.

Although the Employment Promotion Act was repealed by the Social Security Act, the functions of the Employment Division of the Labour Department continued to foster 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. The Employment Division has now been placed under the control of the National Service Department. 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 raised 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. The number of unions registered under this Act as at the end of 1939 was five only; the registrations of four were cancelled during the year and one new union was registered. Unions registered under the Act may also be 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 Southland.Taranaki.Marlborough.Nelson.Westland.North Island.South Island.Dominion.Totals.
Number of Unions.
1935293529247331......131
19363969313011272217201
193746803835123832210239
193846844035123842212248
193949864536122953215264
             
Membership.
19351,0379761,10994515790255......4,344
19361,1711,597919849314291001919121,4136,442
19371,6841,8281,154904266311313924292,3518,441
19381,9221,8881,2681,033357361116926212,4009,131
19392,0591,9751,3141,010350321218745212,8799,893

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 arc seen in the increases of approximately 128 per cent. since 1935. 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.

The membership of workers' unions rose year by year, without exception, from 17,989 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 Districts.
Northern.Wellington.Canterbury.Otago and Southland.Taranaki.Marlborough.Nelson.Westland.North Island.South Island.Dominion.Totals.
Number of Unions.
19351018367951991815....3410
1936114956711130132721....9487
1937111887011229153027....17499
19381028462103281227261120466
193996805896241226251123442
             
Membership.
193521,66119,06613,14011,3621,1796066691,900....11,34680,929
193655,28338,53822,46820,8524,2936371,8193,522....38,155185,527
193752,78649,66927,28624,1383,5767892,0683,219....69,455232,986
193861,73848,44625,81323,0043,8088471,8382,8442833880,572249,231
193960,92047,41125,35323,5523,6389511,7403,1392843787,665254,690

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
193516586523140191511410
193613885954543363357487
19371437890485039261213499
19381317473474641271017466
19391237063513938301018442
           
Membership.
19012,7593,0184,0324,8152,0732,5201,6512,900..23,768
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
19393,2984,9138,95611,65015,06626,96142,69624,733116,417254,690
           
Percentage of Total Membership.
190111.6112.7016.9620.268.7210.606.9512.20..100.00
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
19391.291.933.524.575.9210.5916.769.7145.71100.00

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, which provided 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 1939 are shown according to industrial group, and membership according to industrial group and district.

Industrial Group.Membership—Industrial Districts.
Northern.Wellington.Canterbury.Otago and Southland.Taranaki.Marlborough.Nelson.Westland.North Island.South Island.Dominion.Totals.Number of Unions.
Provision of—             
  Food, drink, &c879530269368248..6033....562,46353
  Clothing, footwear, and textiles8412050712..5........27813
  Building and construction30532722319916..22........1,09233
  Power, heat, and light..8273111............5532110
  Transport by water17252512101465....2413814
  Transport by land1609061102..............4137
Accommodation, meals, and personal service2674413469256181849..16..1,30340
Working in or on—             
  Wood, wicker, seagrass and fibre105534418............31453415
  Metal119829227............3835817
  Stone, clay, glass, and chemicals331171........355..9211
  Paper, printing, &c.829736458......10....27821
  Skins, leather, &c.922113..............457
  Mines and quarries1....15..............163
  Land (farming pursuits)20553510....10......2,1952,32511
Miscellaneous82012..............1972379
Totals2,0591,9751,3141,010350321218745212,8799,893264

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 nearly 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 1939.

Industrial Group.Membership—Industrial Districts.Number of Unions.
Northern.Wellington.Canterbury.Otago and Southland.Taranaki.Marlborough.Nelson.Westland.North Island.South Island.Dominion.Totals.
Provision of—             
  Food, drink, &c.7,1244,9383,7693,9224179638228284373,50324,50068
  Clothing, footwear, and textiles5,7104,6263,7252,920......10......16,99121
  Building and construction10,7099,9115,1383,901995321228155....1,40932,76769
  Power, heat, and light1,185870..203147..........1,0753,4805
  Transport by water1,5611,994116660............8,31212,64322
  Transport by land3,5322,2611,3501,164344110236186....19,88429,06721
  Accommodation, meals, and personal service6,0055,9142,7712,032482145207480......18,03628
Working in or on—             
  Wood, wicker, sea-grass, and fibre1,4811,33971360260..1122....8,11712,34528
  Metal4,729498259651............6,07412,21120
  Stone, clay, glass, and chemicals1,275280..57875..73......2502,53117
  Paper, printing, &c.52030215725......33....2,4424,03713
  Skins, leather, &c.4322819145..............8497
  Mines and quarries1,881..4645026..601,603......4,06626
  Land (farming pursuits)34630120..............28,36428,8605
Miscellaneous14,43014,1677,2405,6991,092279543622....8,23552,30792
Totals60,92047,41125,35323,5523,6389511,7403,1392843787,665254,690442

INDUSTRIAL ASSOCIATIONS.

At 31st December, 1939, there were 22 industrial associations of employers and 40 of workers, the former having 133 affiliated unions and the latter 218. 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.
1938.1939.1938.1939.1938.1939.1938.1939.
Provision of—        
  Food, drink, &c.452430562628
  Clothing, footwear, and textiles........441918
  Building and construction332626554747
  Transport by water1110102255
  Transport by land1144111212
  Accommodation, meals, and personal service2226261199
Working in or on—        
  Wood, wicker, seagrass, and fibre2266442119
  Metal1144441313
  Stone, clay, glass, and chemicals11442255
  Paper, printing, &c.221212322011
  Skins, leather, &c.11331144
  Mines and quarries........1226
  Land (farming pursuits)1133........
Miscellaneous1225664641
Totals20221241333940229218

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 1939 is estimated at approximately 50 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 realizing 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 Males Unemployed.Proportion per Thousand Male Wage-earners.
* No Census was taken during the year 1931.
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, 1926*10,69434
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. Those registered for relief but not considered to be immediately eligible, or whose circumstances wore 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 Annual 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 showing the lowest and peak periods for total on Registers in each year, 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.
1931—     
  Highest7,60043,000..3,99054,590
  Lowest6,70038,000..6,40051,100
1932—     
  Highest6,54045,100..22,01073,650
  Lowest7,00037,000..10,52054,520
1933—     
  Highest (30th September)4,30144,743..30,39179,435
  Lowest (18th February)5,39439,963..20,51065,867
  1934—     
  Highest (20th January)3,63535,9331,08727,83668,491
  Lowest (22nd December)2,13128,3035,92320,48156,838
1935—     
  Highest (31st August)2,58124,81715,34718,06160,806
  Lowest (16th February)3,18724,9366,94818,25053,321
1936—     
  Highest (18th January)2,23317,36515,17921,72556,502
  Lowest (19th December)2,03710,08520,1646,78639,072
1937—     
  Highest (31st July)2,6365,59722,2108,23638,679
  Lowest (18th December)7373,33612,29413,72230,089
1938—     
  Highest (24th September)7717438,06129,05738,632
  Lowest (12th March)1,0862,73510,87415,20429,899
1939—     
  Latest (11th March)649777,25624,08732,069

NOTE.—Data for above table are only available for quarterly periods prior to 30th September, 1932.

The payment of sustenance was superseded as from 1st April, 1939, by an unemployment benefit which is paid from the Social Security Fund in terms of the Social Security Act, 1938 (see Section XXV). The numbers in receipt of such benefits (since their inception) are as under:—

NUMBER OF PERSONS IN RECEIPT OF UNEMPLOYMENT BENEFIT.

Date.Number in Force.
1939— 
29th April4,915
27th May5,565
1st July7,036
29th July8,009
26th August8,066
30th September6,805
28th October6,015
25th November4,924
30th December5,042
1940— 
27th January4,200
24th February3,995
30th March4,053
27th April4,896
25th May5,146
29th June6,048
27th July6,187
31st August4,850
28th September4,286

PROMOTION OF EMPLOYMENT.

The arranging of full-time work for physically fit men whom it is not possible to absorb in private employment was until recently the function of the Employment Division of the Department of Labour, but the Employment Division is now under the control of the National Service Department. The following table shows the number of men in full-time subsidized employment (8th April, 1939, to 19th October, 1940), under the various schemes:—

NUMBERS OF MEN IN FULL-TIME SUBSIDIZED EMPLOYMENT

Date.Assisted on Own Farms (Scheme 4A).Farm-lands Development (Scheme 4B).Training of Farm Labour (Scheme 4F.)Building Trades’ Apprentices (Scheme 16).Trainees in Industry (Scheme 16A).General (Scheme 13).Total.
* The farm-lands-development scheme was temporarily suspended on 26th August, 1940, and reopened on 3rd October, 1940.
1939.       
8th April49530..438..12,50413,521
6th May50532..444..11,28112,307
3rd June149621..467..11,64212,879
1st July185726..479..12,55213,942
29th July..1,220..492..13,30515,017
26th August..1,650..516..13,52915,695
23rd Sept...2,450..529..13,40716,386
21st October..3,340..521212,65216,515
18th Nov..3,7947510611,94816,265
16th Dec...3,90610502711,24715,672
1940.       
13th Jan...3,62414498710,28514,428
10th Feb...3,3591748879,86613,737
9th March..3,4351847579,41213,347
6th April..3,6292145278,62712,736
4th May..4,0411544278,39312,898
1st June..3,8361542778,37312,658
29th June..3,5794841678,35812,408
27th July..3,51214341069,41213,483
24th August..3,018292397710,11113,825
21st Sept...2,885*567389810,62614,475
19th October..2,746749359810,13313,995

Details of the schemes now in operation are given, together with a short summary of the main schemes previously in force and now discontinued:—

Scheme 4A: Assistance on Own Farms.—This scheme, as latterly constituted, provided a sustenance allowance varying (according to the number of dependants), from 15s. to £2 13s. per week to families working on their own properties but who were not entirely able to support themselves. This assistance was discontinued in June, 1939, and the 185 then being assisted were transferred to emergency-benefit assistance under the Social Security Act.

Scheme 4B : Farm-lands Development.—This scheme provides subsidies of up to 75 per cent. of the labour cost of improvement work, both of a developmental and maintenance nature. Though primarily for the purpose of providing temporary employment, the scheme is most valuable at the present time in that it affords opportunity for increased production.

Scheme 4F : Farm Labour Assistance Plan.—This was reintroduced in September, 1939, to provide an adequate supply of farm labour and also to provide training in farm duties. Originally the subsidy was £1 per man per week for six months only. In view of the urgent demand for increased production, the scheme was enlarged from 27th May, 1940, the subsidy now being £1 10s. per week for the first six months and 15s. for the second six months. Provision is also made for certain house allowances to married men.

Scheme 13: Full-time Employment with Local Bodies, &c.—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. and £2 5s. per man-week for single and married men respectively, to, in some cases, the full wages cost at ordinary labourers’ rates.

Scheme 16: Subsidizing of Apprentices in Building Trades.—This scheme provides financial assistance primarily to meet the shortage of carpenters, joiners, and bricklayers. The subsidies cover short-term apprenticeships up to three years’ duration at the rate of £1 per week, reducing to 10s. per week in the third year for carpenters’ apprentices, and £1 5s. per week, reducing to 10s. per week for bricklayers’ apprentices. No new contracts have been entered into under this scheme since 30th April, 1940.

Scheme 16A : Subsidizing of Workers in Industry.—A subsidy on the wages of unskilled labour during the period of training in a skilled occupation.

Of the schemes now discontinued (particulars of which have been given in previous issues of the Year-Book), Scheme No. 5 was for several years 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 immediately prior to its cessation on 31st March, 1939, was 77.

The Small-farm Scheme is now administered entirely by the Department of Lands and Survey, and the gold-mining scheme was taken over by the Mines Department as from 1st April, 1939.

STATE PLACEMENT SERVICE.

The State Placement 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). At first confined to males, the Service was extended to females in April, 1939.

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 140,000 engagements since the inauguration of the scheme.

An analysis of positions filled during the fifteen months ended 31st March, 1940 (males only), 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, 1939, TO 31ST MARCH, 1940 (MALES ONLY).

District.Permanent.Temporary.CasualTotal.
Auckland4,6873,8952,45211,034
Hawke's Bay6845781,3432,605
Taranaki5931353371,065
Wellington3,9373,5324,49211,961
Nelson and Marlborough52318368774
Westland43112452607
Canterbury1,3211,3672,6305,318
Otago1,3401,0434,8687,251
Total13,51610,85716,24240,615

Female placements effected from 1st October, 1939, to 31st March, 1940, numbered 1,284; no information is available for the period prior to the 1st October, 1939.

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, 1940, there were, at these centres, 4,144 placements (1,662 girls and 2,482 boys); of these placements, 3,638 were permanent and 506 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 Statistical Report on Factory and Building Production. During 1938, of the twenty-three groups of factory industries which are of sufficient importance to justify consideration, five had maximum employment in February, four in December, three each in March, June, and November, two in January, and one each in April, May, and October. In the case of seven groups, minimum employment occurred in January, four in April, two each in March, July, and August, and one each in February, May, September, October, November, and December. The principal group (animal food) had the maximum in February and the minimum in July, while for all industries in combination the maximum was in March and the minimum in August. In the building trade the maximum occurred in November 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:—

  1. Public Works Department.

  2. Public Works Department and local authorities.

  3. Local authorities only.

  4. Employment Promotion Fund.

Until recently, complete annual statistics covering all phases of this employment were not available. Those for years prior to 1937-38 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. In the following table statistics for years prior to 1937-38 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.

* 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.

† Figures on new basis—not comparable with previous years.

19001,8251,2433,068
19051,4072,1193,526
19101,7623,9295,691
19152,4942,2344,728
19201,4952,4983,993
19251,6145,1516,765
19305,3805,48710,867
19316,3656,05712,422
19325,2554,1829,437
19333,2133,5206,733
19343,9684,6138,581
19354,0944,8218,915
19364,1595,6059,764*
19379,2478,06417,311*
193811,3718,44719,818
193912,9529,70822,660
194011,00010,60521,605

There are now more comprehensive figures available on which figures for the last three years in the above table have been based. Figures on the new basis include, 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, for the last five years, is as follows, the figures quoted representing the averages of weekly returns:—

Month.1936.1937.1938.1939.1940.
January13,79119,30720,16522,82421,198
February14,94220,06320,64622,28519,896
March15,83120,10221,26823,06819,603
April16,02620,00321,34422,42618,811
May15,94619,69221,18821,82518,171
June15,55119,39221,55321,65317,168
July15,54219,01622,35821,26817,181
August15,90518,97623,20921,07617,246
September16,88419,08223,66123,12016,665
October18,25719,40723,85123,24116,046
November18,87819,96223,33122,23115,668
December19,19820,20523,24521,720..

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, 1939, are presented in the following table. The figures shown are for those employed at 15th (or nearest representative day) of each month. 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 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.
Boroughs16,143October12,717April15,027
Counties7,753August6,110April7,046
Harbour Boards3,310February2,707July3,000
Urban transport districts1,741Various1,662April1,713
River districts737July622March670
Town districts503September303May408
Urban drainage districts470August401June440
Rabbit districts219November193September206
Land-drainage districts251March163October197
Road districts216October174April201
Gas-lighting district57May42November48
Railway district14August and February13Various13
Water-supply districts26August6June14
Totals30,746September25,369April28,983

The institutional staff of public hospitals and charitable institutions under the control of Hospital Boards was as follows at 31st March, 1939:—

Nature of Staff.Number.
Stipendiary medical328
Other professional and technical334
Nursing3,850
Indoor, domestic2,630
Outdoor514
Miscellaneous229
Total7,885

The staff of Hospital Boards other than the institutional staff listed above totalled 430 on 31st March, 1939, making a total of 8,315 persons in the employ of Hospital Boards at that date.

Chapter 41. SECTION XLI.—INDUSTRIAL DISPUTES.

INTRODUCTORY.

THE compilation of statistics 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 thus 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 methods 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 on 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
193123...24376,35648,48644,544
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...527311,41129,91632,129
193872...7210311,38835,45642,104
193966...6663615,68253,80160,394

In calculating 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. Although the year 1939 saw the greatest number of workers involved (15,682), it was only slightly in advance of 1920, the next highest year, with 15,138 workers; in both years the industries most affected were mining and shipping. 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 1939.

The number of disputes in 1939 was slightly lower than in 1938, but the number of workers involved is the highest recorded since the inception of the statistics; this was mainly due to the inclusion of two strikes in the Auckland district, one involving approximately two thousand drivers, and the other over a thousand freezing-works' employees. Working days lost and estimated loss in wages were considerably higher than in the previous year.

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.
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
1939651....6614,811871....15,682

The table following illustrates the duration of disputes during 1939:—

Duration.Number of Disputes.Number of Workers involved.Number of Working-days lost.Estimated Loss in Wages.
    £
1 day and less409,4636,0657,138
Over 1 day but not over 2102,3514,2675,206
Over 2 days but not over 349872,5594,102
Over 3 days but less than 1 week55742,2762,200
1 week but less than 2 weeks31,4717,3558,672
2 weeks but less than 4 weeks14146,2106,750
4 weeks and over342225,06926,326
Totals6615,68253,80160,394

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 five years had the greatest number both of strikes and of workers involved.

Year.Northern.Taranaki.Wellington.Marlborough.Nelson.Westland.Canterbury.Otago and Southland.Totals.
Number of Disputes.
19357...1......4......12
19361935......113243
193732...5...164452
193831412......1210372
19392328...1209366
          
Number of Workers involved
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
19399,430981,355...103,66789023215,682

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 1936 under the heading “Miscellaneous" was one of wool and grain store workers; of the three in 1938, two were of wool-store workers and one of general labourers, and the one in 1939 was of shearers.

Industrial Group.1935.1936.1937.1938.1939.
Number of Disputes.     
Provision of—     
  Food, drink, &c...271214
  Clothing, footwear, and textiles....1....
  Building and construction..2423
  Power, heat, and light..1..1..
  Transport by water51417179
  Transport by land..11..2
Working in or on—     
  Wood, &c.13122
  Metal..1311
  Stone, clay, glass, chemicals, &c...33113
  Paper, printing, &c.1....1..
  Mines and quarries—     
    Coal-mines310142029
    Gold-mines24122
    Quarries..1......
Miscellaneous..1..31
        Totals1243527266
Industrial Group.1935.1936.1937.1938.1939.
Number of Workers involved.     
Provision of—     
  Food, drink, &c...1372,5903,0003,729
  Clothing, footwear, and textiles....106....
  Building and construction..122366131250
  Power, heat, and light..300..114..
  Transport by water2983,1923,5341,6431,153
  Transport by land..1039..2,024
Working in or on—     
  Wood, &c.1003927020155
  Metal..466902089
  Stone, clay, glass, chemicals, &c...1034581,189464
  Paper, printing, &c.550....29..
  Mines and quarries—     
    Coal-mines6802,3183,0294,3677,627
    Gold-mines69529452922263
    Quarries..40......
Miscellaneous...400...6658
      Totals2,3237,35411,41111,38815,682

Out of a total of 245 disputes during the five years, 88, involving 19,864 workers, occurred in connection with mining and quarrying; while in the shipping industry there were 62 disputes involving 9,820 workers. For a number of years prior to 1934, 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. In 1938 and 1939, however, the mining industry again became the predominant group. A more detailed analysis of disputes occurring during 1939 is given below.

Industrial Group.Number of Disputes.Number of Firms affectedNumber of Workers involved.Number of Working-days lost.Estimated Loss in Wages.
Directly.Indirectly.Total.
Provision of—      £
  Food, drink, &c.14143,3983313,7292,0702,210
  Building and construction33250..2501,047991
  Transport by water9201,153..1,15320,86423,961
  Transport by land25512,024..2,0241,060916
Working in or on—       
  Wood, &c.22155..15529864
  Metal11819910
  Stone, clay, glass, chemicals, &c.35464..4646,7456,376
  Mines and quarries—       
    Coal-mines29377,627..7,62721,43925,596
    Gold-mines22263..263263263
Miscellaneous118..867
      Totals6663615,35033215,68253,80160,394

CAUSES.

In the next table the causes of disputes which occurred 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 dismissal of a worker on allegedly insufficient grounds, or, until recently, the employment of non-unionists. Since 1936, however, all adult workers who are subject to any award or industrial agreement have been required to be members of a union, and unless there are no unionists available no employer may employ a non-unionist.

“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.1935.1936.1937.1938.1939.
Number of Disputes.     
Wages413142626
Hours1121124
Employment411121621
Other working-conditions16152414
Sympathy.........11
Other causes21...3..
      
Number of Workers involved.     
Wages1,3451,7863,6824,5585,588
Hours91,5772,1391062,077
Employment4012,7641,9411,6934,062
Other working-conditions3201,1963,6494,6753,084
Sympathy......55871
Other causes24831..301..

The following table gives further details for the year 1939:—

Cause.Number of Disputes.Number of Firms affected.Number of Workers involved.Number of Working-days lost.Estimated Loss in Wages.
     £
Wages26395,58830,22632,779
Hours45532,0771,1141,013
Employment21224,0627,0257,637
Other working-conditions14183,08411,08113,843
Sympathy148714,3555,122
    Totals6663615,68253,80160,394

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. “Otherwise" also includes cases where a third party has assisted in the settlement, but has not been appointed formally under the Acts.

Method of Settlement1935.1936.1937.1938.1939.
Number of Disputes.
Negotiations under Act3915146
Private negotiations between parties523305345
Substitution..4..4..
Otherwise477115
Number of Workers involved
Negotiations under Act7802,0292,4842,4361,189
Private negotiations between parties1,0082,2247,6208,76110,241
Substitution..643..167..
Otherwise5352,4581,307244,252

Further information for the year 1939 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 Act61,18913,53213,776
Private negotiations between parties4510,24111,40512,987
Substitution........
Otherwise154,25228,86433,631
    Totals6615,68253,80160,394

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.

Method of Settlement1935.1936.1937.1938.1939.
Number of Disputes.
In favour of workers315172420
In favour of employers313171322
Compromise236138
Indeterminate412122216
      
Number of Workers involved.
In favour of workers1562,9272,1762,8064,086
In favour of employers9108574,4783,7235,356
Compromise9841291,0951,1861,630
Indeterminate2733,4413,6623,6734,610
      
Number of Working-days lost.
In favour of workers2,9079,3345,4787,6839,687
In favour of employers8,7912,11616,93517,3707,467
Compromise6,5804762,5891,54826,181
Indeterminate2855,0544,9148,85510,466

Of disputes ending definitely in favour of one party or the other during the five years, workers succeeded in seventy-nine instances and employers in sixty-eight. In the previous five years (1930-34) workers were successful in twenty-five instances and employers in forty-one.

In the following table the causes and results of disputes occurring during 1939 are shown in conjunction:—

Result.Cause.
Wages.Hours.Employment.Other Working-conditions.Sympathy.Other.Totals.
Number of Disputes.
In favour of workers6..671..20
In favour of employers8..113....22
Compromise61...1....8
Indeterminate6343....16
        
Number of Workers involved.
In favour of workers1,059..1,0041,152871..4,086
In favour of employers2,133..1,9651,258....5,356
Compromise1,46317..150....1,630
Indeterminate9332,0601,093524....4,610
        
Number of Working-days lost.
In favour of workers1,093..2,5021,7374,355..9,687
In favour of employers1,613..3,1122,742....7,467
Compromise25,82754..300....26,181
Indeterminate1,6931,0601,4116,302....10,466

Chapter 42. SECTION XLII.—INDUSTRIAL ACCIDENTS.

INTRODUCTORY.

As a result of an international conference of official statisticians held 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 that all accidents likely to incapacitate the injured person for at least forty-eight hours be reported to an Inspector of Factories. Reports are prepared by Inspectors of Factories in connection with each such accident causing loss of work amounting to three days or more. 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 reports of all accidents involving loss of work for three days or more are supplied by the respective Departments to the Census and Statistics Department for detailed 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, individual reports of all accidents involving loss of three days or more are now being furnished, although information as to duration of disability and compensation paid is not available.

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 reportable 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 mines or of scaffolding operations, nor are compensation data in respect of mining accidents.

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 and mining accidents.

† Including medical expenses.

‡ See letterpress.

    ££
19344,9112.0214,90780,83716.5
19355,5872.3735,58793,16616.7
19367,7032.6837,702122,62415.9
19379,3943.0509,385181,05419.3
193812,5533.1089,807196,22520.0

Compared with the previous year (leaving out of consideration 2,742 mining accidents, which were not reported prior to 1938), the total shows an increase of 417, the greatest numerical movement (355) having occurred in the Railways group, while the greatest percentage movement (over 36 per cent.) was in the Post and Telegraph group.

The distribution of industrial accidents in 1938 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 and mining accidents.

‡ Excluding mining accidents.

    ££
Factory4,2972,0444,29679,36918.5
Public Works2,4006,6722,39849,23720.5
Scaffolding217*2179,27042.7
Railways2,5495,9112,54853,56221.0
Post and Telegraph3481,7893484,78713.8
Mining2,742****
All classes12,5533,1089,807196,22520.0

It is usual for scaffolding accidents to involve the highest compensation per accident, owing to the proportionately greater number which terminate fatally. There were six fatalities in this group during 1938, while the group having the next highest average compensation per accident (Railways) included seventeen fatalities.

Compared with 1937, 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 tailoring and electrical engineering.

In the table following, industrial accidents during the year 1938 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, &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 and mining accidents.

‡ Excluding mining accidents.

Provision of—   ££
  Food, drink, &c.2,5975.3242,59638,49414.8
  Clothing, footwear, and textiles1150.2411151,97417.4
  Building and construction—     
  Public Works2,3256.6962,32347,02920.2
  Scaffolding217*2179,27042.7
  Power, heat, and light1062.0041062,84626.8
  Communications and land transport—     
  Post and Telegraph3481.7893484,78713.8
  Railways2,5495.9112,54853,56121.0
  Personal services60.146611619.3
Working in or on—     
  Wood, seagrass, &c.3821.38038212,12531.7
  Metal6721.57367213,44020.0
  Stone, clay, glass, &c.3512.3113518,69424.8
  Paper, printing, &c.1070.8171073,00028.0
  Skins, leather, &c.250.6202565926.4
Mining2,742****
Miscellaneous110.3911123021.0
All groups12,5533.1089,807196,22520.0

The following table shows for the last five years available, 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.
  £ £ £ £
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
19389,53011.1236228.941880.69,80720.0

Normally the average amount of compensation paid in respect of fatalities is 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 had 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, 1934-38, but excludes mining accidents, which are available for the last year only:—

Cause.Temporary Disability.Permanent Partial Disability.*Fatality.Total.Percentage of Total Accidents.
* Including permanent total disability cases as follows: 1934, 2; 1935, 2; 1936, Nil; 1937, 3; 1938, Nil, total, 7.
Machinery—     
  Prime movers501..510.1
  Transmission8292930.3
  Lifting-machinery5753196151.6
  Power-working machines2,54142152,9677.9
Vehicles2,07652482,1765.8
Explosions and fires98123161,0202.7
Poisonous, hot, and corrosive substances313223170.9
Electricity93341000.3
Falls of persons—     
  From elevations1,96747262,0405.4
  Into excavations2831..2840.8
  Slipping and stumbling on the level3,2211513,2378.7
Stepping or. or striking against fixed objects—     
  Stepping on341....3410.9
  Striking, against1,6531131,6674.5
Falling objects, not being handled by the person injured1,0822571,1143.0
Falls of earth94832169962.7
Handling of objects—     
  Heavy7,51111717,62920.4
  Sharp2,7074312,7517.4
  Hand-trucks, &c.7544..7582.0
  Continual handling4752..4771.3
Hand-tools—     
  In hands of person injured—     
    Glancing of tool5,0039525,10013.6
    Breaking of tool1203..1230.3
    Flying particles74623..7692.1
    Other1,0826..1,0882.9
  In hands of other than person injured51219..5311.4
Animals2223..2250.6
Miscellaneous—     
  Strains, sprains, and septic wounds undefined as to cause (sustained while slaughtering)2302..2320.6
  Doors, windows, covers, gates (excluding elevators)349223530.9
  Other344443520.9
      
Summary.
Factories16,0516013216,68444.6
Public Works9,032189409,26124.7
Scaffolding1,13738201,1953.2
Railways8,833162549,04924.2
Post and Telegraph1,208631,2173.3
    Totals36,26199614937,406100.0

In mines, the majority of the accidents occurred in connection with the operating of mine trucks; other predominating causes were falls of coal, slipping on uneven surfaces, and pieces of coal dislodged by the miners'tools.

LENGTH OF EXPERIENCE AT PROCESS.

FACTORY ACCIDENTS ONLY.

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 1936, 1937, and 1938. The necessary information was not available in all cases, the number covered being approximately 94 per cent.

Length of Experience at Process.1936.1937.1938.
Number of Cases.Percentage of Total.Number of Cases.Percentage of Total.Number of Cases.Percentage of Total.
Under 6 months71123.11,06326.896724.0
6 months and under 1 year2528.23719.33318.2
1 year and under 2 years33010.745511.448412.0
2 years and under 3 years3039.83558.941510.3
3 years and under 4 years31310.12696.72736.8
4 years and under 5 years2247.32817.02025.0
5 years and under 10 years56018.257814.563215.7
10 years and under 20 years2819.13839.644811.1
20 years and over1083.52335.82786.9
    Totals3,082100.03,988100.04,030100.0

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.1936.1937.1938.
Number of Cases.Percentage of Total.Number of Cases.Percentage of Total.Number of Cases.Percentage of Total.
Under 161354.11453.51443.4
16 to 2075923.291721.988220.7
21 to 2459218.172817.475817.8
25 to 3488226.91,25229.81,28130.1
35 to 4445013.864115.362314.6
45 to 542898.83217.73438.0
55 and over1685.11854.42295.4
    Totals3,275100.04,189100.04,260100.0

NATURE OF INJURY.

A classification of accidents according to the nature of the injuries sustained gives the following results for the last five years; the figures for 1938 include mining accidents.

Nature of Injury.1934.1935.1936.1937.1938.Totals, 1934-38.
* Traumatic only; in addition there were in 1937, 76 surgical amputations., and in 1938, 81.
Contusions and abrasions9878141,5801,8733,4698,723
Burns and scalds1631952304264141,428
Concussions2924606956238
Cuts and lacerations1,7272,1632,6753,0483,36312,976
Punctures2642913585046752,092
Amputations82104140100*80*506
Dislocations2326434752191
Fractures1802173143965121,619
Sprains and strains1,1151,2342,1302,7643,60810,851
Other and ill-defined3415191731673241,524
    Totals4,9115,5877,7039,39412,55340,148
       
Cases where septic poisoning followed—      
  Number7498551,0041,3031,6025,513
  Percentage of all accidents15.315.313.013.912.813.7

A feature of special interest brought out by this table is the relatively high percentage of accidents in which septic poisoning followed. The increased proportion of contusions, &c., in 1938, is due to the inclusion of mining accidents.

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 1934-38 are given in the following table. Mining accidents in 1938 are included.

Part of Body affected.1934.1935.1936.1937.1938.Totals, 1934-38.
Head10491159163244761
Eyes2272162963985921,729
Rest of face6794103151163578
Neck1522333150151
Back4215137738461,2693,822
Thorax and contents2232223474645851,841
Abdomen and contents89111188195253836
External genitals1211242435106
Upper limbs—      
  Collarbone and shoulder1041221672483781,019
  Arm2983144335226992,266
  Hand and wrist6607779911,2291,5125,169
  Finger and thumb1,4501,6362,2002,6983,25111,235
Lower limbs—      
  Pelvis, hip, and thigh95104155185329868
  Leg4194397388221,2053,623
  Ankle and foot6276899491,2111,6165,092
Undefined or multiple1002261472073721,052
    Totals4,9115,5877,7039,39412,55340,148

Accidents to the fingers and hands form a large proportion of total accidents. Out of the total of 40,148 accidents classified during 1934 to 1938, 16,404 cases were recorded where fingers or hands were affected.

A tabulation made for 1938 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 12,553 accidents tabulated, 1,832 came under this category; of the 161 cases of amputations (of which 80 were traumatic and 81 were surgical), 137 resulted in loss of some part of the fingers or thumbs; contusions of the feet numbered 522, and cuts and lacerations of the hands 561; of the 3,608 sprains, 1,124 resulted in injury to the back, while sprained thighs, legs, and feet accounted for a further 1,174.

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. Information as to time lost is not available for mining accidents, and these are therefore excluded.

Duration.1934.1935.1936.1937.1938.Totals, 1934 to 1938.
Number.Number.Per Cent.Number.Per Cent.Number.Per Cent.Number.Per Cent.Number.Per Cent.
1 week or under9861,12320.11,51919.71,87419.92,02320.67,52520.1
1 week to 2 weeks1,5401,71930.72,48832.32,96631.63,20832.711,92131.9
2 weeks to 4 weeks1,3541,51827.22,12327.62,65028.22,60926.610,25427.4
4 weeks to 6 weeks4054618.25897.77588.17988.13,0118.0
6 weeks to 13 weeks3394287.75967.76206.66606.72,6437.1
13 weeks to 6 months861122.01251.61821.91661.76711.8
Over 6 months26330.6430.6630.7640.72290.6
    Total specified cases of temporary disability4,7365,39496.57,48397.29,11397.09,52897.136,25496.9
Cases where employee did not return or duration not stated......10.050.110.170.1
Permanent partial disability1471763.21932.52402.52402.49962.6
Fatality28170.3260.3360.4420.41490.4
    Totals4,9115,587100.07,703100.09,394100.09,811100.037,406100.0

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 1938 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 less5399846634122
Over 1 week and up to 2 weeks63101599
Over 2 weeks32124619
Final Cause.     
Incipient septic poisoning309432014161
Strains137441228257
Other causes188331933122
    Totals63412051754140
Percentage of all accidents14.744.8723.5029.7340.23

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 hand is regarded as a 50-por-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.

1934.1935.1936.1937.1938.

* Excluding scaffolding accidents.

† Excluding mining accidents.

Total cases resulting in—     
  Temporary disability4,7365,3947,4849,1189,529
  Permanent partial disability147176193240240
  Fatality2817263642
Total4,9115,5877,7039,3949,811
Calendar days lost per accident1261059110398
Hours lost per 100,000 man-hours worked (i.e, severity-rate)*1,5321,5561,4511,6191,653

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 1934-38 has varied between 1,451 (in 1936) and 1,653 (in 1938). The extent of the toll on industry exacted by industrial accidents is realized when it is considered that during the five years 1934-38 one hour was lost as a result of such accidents out of every sixty-five hours worked in the industries covered by the above table.

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 1934-38 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.10,389193510,587481,271
  Clothing, footwear, and textiles52729255899143
  Building and construction—      
  Public Works8,810182389,0301044,303
  Scaffolding1,13738201,195259*
  Power, heat, and light3501653712091,811
  Communication and land transport—      
    Post and Telegraph1,208631,21754457
    Railways8,833162549,0491143,429
  Personal services349..438181,139
Working in or on—      
  Wood, seagrass, &c.1,32317241,4991991,403
  Metal2,154105112,270133989
  Stone, clay, glass, &c.1,0254471,0761461,442
  Paper, printing, &c.33826..36498365
  Skins, leather, &c.9012..102192588
Miscellaneous432..4542101
    All industries36,26199614937,4061031,530

MINING ACCIDENTS.

The preceding table does not include reports of mining accidents, which are available for 1938 only. In that year there were 2,742, of which 13 cases were fatal, and 47 suffered permanent disability. More detail is available in the Statistical Report on Prices, &c., for 1938.

An investigation was made as to the extent to which mining employees had suffered more than one accident during the year. It was found that 367 had two accidents during the year, 113 three accidents, and 20 four accidents or more, making a total of 500 cases in which more than one accident was involved.

LOSS OF EARNING-POWER INVOLVED.

Provision is made in certain cases for the actual impairment of wage-earning capacity to be stated. Of the 254 cases of permanent partial incapacity in 1938, the question as to what wages the employee would earn on resumption was answered in 151 cases. In 139 cases it was reported that, though dismemberment or disablement had occurred, no diminution of earning-power had taken place. In 12 oases, however, definite impairment eventuated, in some cases to a serious extent.

HOUR OF OCCURRENCE.

The following tabulation of industrial accidents, according to the hour of occurrence, shows the effects of fatigue during the working-day, mining accidents in 1938 are included:—

Time of Occurrence, to nearest Hour.Year.Causes, 1934-38.
1934.1935.1936.1937.1938.Machinery.Falls of Persons.Handling Objects.Hand Tools.Other.
8 a.m.216241324362419135278447322380
9 a.m.4695047508921,1183565671,146848816
10 a.m.7288091,1131,2631,6445087541,7811,2121,302
11 a.m.7098461,0821,3371,7025537541,8041,2891,276
12 noon433463631750900328465928713743
1 p.m.166192257305443169221342265366
2 p.m.4504767238861,2773655261,133806982
3 p.m.5246061,0081,1721,5354917471,4989631,146
4 p.m.4845998111,1271,2411936801,234859996
5 p.m.254272334430449168274500281516
Other hours3544364836779622475526652911,157
Not stated4998909181780125318146476
Not applicable75459710246832333586
    Totals4,9115,5877,7039,39412,5533,9015,94612,0298,03010,242

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 (five-day) 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.1934.1935.1936.1937.1938.Totals, 1934-38.
* Excluding accidents to Post and Telegraph employees.
Under 13303454546076492,385
1 and under 25246088701,0861,4144,502
2 and under 37338201,1271,3611,7155,756
3 and under 47058671,1761,3871,8095,944
4 and under 54694876598409633,418
5 and under 64394826678441,0553,487
6 and under 75096059571,0551,5944,720
7 and under 85016238501,2011,3974,572
8 or over2883374034585001,986
Not stated1571851981999991,738
Not applicable734396101110423
    Totals*4,7285,4027,4579,13912,20538,931

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 and 1938.

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 economies of consumption in the Dominion. 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 lacunae 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. Exports are normally valued on an f.o.b. basis, but an adjustment has been made in the export values used in the following computation to arrive at a basis similar to that used in the assessment of the value of production. The result of this computation gives a close approach to the value of all goods available for use in the Dominion. Generally speaking, there is now 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, although the influence of held-over stocks 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 recovery in production and in exports is revealed by the 1934 figure, while the value of imports and of goods available for use 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.£
1926110.844.452.1118.584.7
1927111.644.547.3114.380.1
1928120.152.943.5110.776.5
1929126.653.946.5119.281.4
1930120.945.149.3125.184.4
193197.635.435.197.364.7
193283.633.324.775.049.3
193383.836.025.373.147.7
193498.847.126.778.450.7
193597.041.334.390.057.8
1936114.251.639.5102.165.1
1937135.862.050.1123.978.3
1938135.259.457.5133.383.4
1939134.855.656.5135.783.9
      
INDEX NUMBERS (1926 = 100).
1926100100100100100
1927101100919695
1928108119839390
19291141218910196
193010910295106100
19318880678276
19327575476358
19337681496256
193489106516660
19358893667668
1936103116768677
19371231409610592
193812213411011298
193912212510811599

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 and later the Social Security 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 14 per cent., corresponding figures for other years being—1931-32, 33 per cent.; 1932-33, 25 per cent.; 1933-34, 29 per cent.; 1934-35, 18 per cent.; 1935-36, 22 per cent.; 1936-37, 27 per cent.; 1937-38, 30 per cent.; and 1938-39, 37 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 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 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.  
1927111.544.567.047.3114.35941
1928115.751.064.745.8110.55941
1929120.351.269.151.1120.25743
1930126.747.379.456.0135.45941
1931121.744.177.641.8119.46535
1932115.245.969.331.7101.06931
1933121.852.369.532.0101.56832
1934129.561.767.833.8101.66733
1935124.853.271.644.0115.66238
1936134.260.673.651.3124.95941
1937145.266.378.963.4142.35545
1938141.962.379.671.0150.65347
1939141.758.583.269.8153.05446
  Totals for thirteen years1,650.2698.9951.3639.01,590.36040

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 thirteen years covered by the table the proportions were 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 1938-39. 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 from 1932-33 to 1937-38 was arrested in 1938-39 due to the policy of restriction of imports, introduced in December, 1938.

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
192897979795
1929103108105102
1930119118118114
19311168810499
1932103678883
1933104688983
1934101718982
19351079310193
193611010810999
1937118134124112
1938119150132118
1939124148134118

The low points during the thirteen years covered by the table were reached in 1931-32 to 1933-34. The figures for those years indicate a decrease by comparison with 1926-27 of 11 to 12 per cent. in the aggregate volume of goods available for use and of 17 to 18 per cent. in the volume per head, the decreases, as compared with 1929-30 being as much as 25 per cent. and 27 to 28 per cent. respectively. The 1934-35 aggregate volume is slightly in excess of the 1926-27 figure—while by continued increases the 1938-39 total was as much as 34 per cent. in excess of the 1926-27 figure, and, on a per head basis, 18 per cent. above the level in that year.

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 flow 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 under review, 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 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 period covered. 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.

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.—BASE: 1926-27 = 100.

Year ended 30th June,All Goods.Goods other than Capital Goods.
Volume.Value.Price Level.Volume.
Total.Per Head.Total.Per Head.
1927100100100100100100
19289795979710099
192910510211196116113
193011811411695122118
19311049986909590
1932888369868075
1933898372868478
1934898278878982
193510193908910293
19361099910090111101
193712411212194129116
193813211812099121108
193913411811410111299

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.

NEW ZEALAND PRODUCE CONSUMED IN THE DOMINION.

Statistics of the value of production are given in the Miscellaneous section of this Year-Book. From these and the export statistics it is possible to compute the ratio of internal consumption of New Zealand produce 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) 1934-35 to 1938-39; for exports, partly as there is a lag between production and export, the calendar years 1935-39 have been adopted.

Produce.Consumed in New Zealand.Exported.
 Per Cent.Per Cent.
Agricultural and pastoral3268
Forest9010
Mining6238
Factory and other982
Total5347

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.

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 as follows:—

 Consumed in New Zealand.Exported.
 Per Cent.Per Cent.
Butter1981
Cheese694
Beef6337
Mutton4852
Lamb496
Pig-meat3961

The foregoing estimates are based on statistics of production, exports, and stocks held for export (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.

DAIRY-PRODUCTS AND MEATS.

Butter and Cheese.—Estimates of the quantities of butter and cheese used for New Zealand consumption can now be obtained from information collected by the Internal Marketing Division of the Marketing Department. Information from this source is available in respect of the last two years only, but is on a more reliable basis than hitherto.

Butter used for New Zealand consumption has approximated 27,000 tons per annum during the last two years, or equivalent to 38 lb. per head of population.

Out of an annual total production of approximately 90,000 tons of cheese, only 3,200 to 3,500 tons are consumed in New Zealand. This represents an annual consumption of cheese of from 4½ lb. to 5 lb. per head of population.

Whole Milk.—While the available data on which to base an estimate of milk-consumption are somewhat meagre, it would appear that the average consumption per head is approximately ⅝ 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. (inclusive of bone) annually, the average annual consumption per head being from 140 lb. to 150 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 recent years, the average annual consumption over the three years ending 1939-40 being 1,180,000 cwt., equivalent to 82 lb. per head of population. New Zealand's consumption requirements account for 48 per cent. of total production in the case of mutton, but only 4 per cent. in the case of lamb.

Pig Meat.—Consumption of pork within the Dominion accounts for an annual average consumption of 145,000 cwt., the average amount per head of population being about 10 lb. Exports of New Zealand pork were maintained at a very high level during the three years ending 1938-39, an average of approximately 655,000 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 170,000 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 milkGallon25-302122½37
ButterLb.382430½32
CheeseLb.4½-594
Meats—     
  Beef (including veal)Lb.140-150*6911262
  Mutton and lambLb.8230816
  Pig-meatsLb.22421957
Total, meats mentionedLb.249*141212125

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 in connection with Canadian meat-consumption is the high level of pig-meat 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. It would seem that the consumption of dairy-products is considerably lower in the United Kingdom than in any of the other three countries.

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.

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 years 1938-39 and 1939-40 indicate decreases to 135,000 and 139,300 short tons respectively, but in both cases the decreased totals were associated with increases in the production of wheatmeal and wholemeal as compared with previous years. The annual consumption of flour per head has declined from 200 lb. some years ago to approximately 174 lb. in the last three years. Statistics of wheatmeal and wholemeal production for 1938-39 and 1939-40 which, in the absence of figures of stocks, may be taken to approximate consumption, aggregated 8,400 short tons in the former year and 9,900 short tons in the latter year, or averages of 10½ lb. and 12 lb. respectively 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 ½ 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 short tons annually for some years, but latterly production has declined, there being only 3,057 short tons produced in 1939-40. In addition, from 3,500 to 4,000 short 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 4 lb. of oatmeal and 4⅔ 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 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, but for the reasons just stated these fall far short of the total consumption of the Dominion.

The commodities mentioned under this and previous headings comprise what may be described as basic foodstuffs. Data indicative of consumption of these commodities do not suggest any marked falling-oil during the depression years, although material changes are observed in the consumption of some of these commodities. 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 survey of the poultry industry in New Zealand was conducted in November, 1929, by the Farm Economics Section of the Department of Agriculture. From figures ascertained in this survey it would appear that the annual consumption of eggs in New Zealand per head of population approximated 25 dozen. Although no figures of egg-production are available on which to base a later estimate, there is no reason to believe that, apart from the depression years, there has been any material alteration in regard to New Zealand consumption.

Fresh Fruits.—Estimates of Dominion consumption of New-Zealand-produced fruits are particularly difficult in view of the fact that in rural localities—and even 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 385. From the 1939-40 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 Fruit1930.1940.
Total.Per Head.Total.Per Head.
 lb.(000).lb.lb.(000).lb.
Apples37,13124.993,49257.2
Pears6,6044.410,1656.2
Peaches5,7913.99,0895.6
Nectarines6570.41,1930.7
Apricots2,1421.43,4992.1
Plums2,5381.74,2802.6
Oranges16,93311.324,29114.9
Lemons2,8441.93,7552.3
Bananas19,04212.834,75821.3

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. On the other hand, the fact that urban lands are now being used more intensively for building purposes has no doubt brought about heavier demands on rural land for the production of fruit and vegetables for local consumption. The increased consumption of apples and pears in 1940 as compared with the immediately preceding years has resulted through greater quantities being made available, due to restrictions imposed by war conditions on the export of New Zealand fruit. 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.

Dried Fruits,—The following table, showing imports of dried fruits in 1926, 1933, and from 1935 to 1939, illustrates the changes in consumption of these commodities:—

Commodity.Unit of Quantity.1926.1933.1935.1936.1937.1938.1939.
Raisins and sultanasTon4,0373,7654,6984,7305,0974,1754,782
  Per headLb.6.45.56.76.77.25.86.6
CurrantsTon469538597781844636661
  Per headLb.0.70.80.91.11.20.90.9
DatesTon1,2381,7221,9841,4983,0862,3561,524
  Per headLb.2.02.52.82.14.33.32.1
PrunesTon8748089301,0471,2051,2111,198
  Per headLb.1.41.21.31.51.71.71.7
ApricotsTon217223405569466627378
  Per headLb.0.30.30.60.80.70.90.5

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, fell to 19,629 cwt. in 1934-35 (a poor fruit production season), increased to 34,071 cwt. in 1935-36, and fell to 33,004 cwt. in 1936-37, and 30,796 cwt. in 1937-38. The year 1938-39 established a record level of 44,312 cwt. The quantities of imports of canned fruits in 1927 and from 1932 to 1939 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 during the earlier years.

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
19398672,8866,511151848

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 1939 low figures for imports, and record figure of New Zealand production, of canned fruit reflect the effect of the policy of import restriction.

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 7,000 to 8,000 tons, or approximately 10 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 1932-33, and for each of the years 1934-35 to 1939-40. In some cases the figures relate to the previous calendar year.

Commodity.Unit of Quantity.1925-261932-331934-351935-361936-371937-381938-391939-40.

* 1928 figures.

† Figures not available.

‡ Includes other ice-cream products.

§ Approximate.

Dominion Totals.
Fresh sea fishTon18,75513,45913,96115,56115,31415,51715,62515,000
Canned fishTon1,9469991,3371,6771,9602,3852,5082,063
Refined sugarTon67,23277,27467,68776,82678,75981,76071,55281,516
SaltTon31,68732,15034,47533,78935,06540,28036,74946,085
Maizena and cornflourTon1,0611,4101,5411,6281,8531,7441,6491,271
Sago and tapiocaTon1,5821,5051,4411,3681,1941,0961,1371,130
RiceTon3,2743,1443,9003,6403,8063,9263,2884,712
Desiccated coconutTon363513655621802866711703
MustardTon1168511912310211710491
PeelTon176238328328335331448382
Confectionery (including chocolate)Ton10,100*8,4149,54610,18711,58512,14212,71613,269
Ice-cream (factory production)Thousand gallons273*277397381431742659916
Aerated watersThousand gallons1,3041,7011,6942,0252,8512,6022,769
TeaTon4,8074,6494,5404,4525,0164,7694,9895,084
TobaccoTon1,9761,8822,1562,2042,4912,7003,0133,000§
          
Per Head of Population.
Fresh sea fishLb.3020202222222221
Canned fishLb.3.11.51.92.42.83.43.52.8
Refined sugarLb.10911398110112115100112
SaltLb.5147504850575163
Maizena and cornflourLb.1.72.02.22.32.62.52.31.8
Sago and tapiocaLb.2.62.22.12.01.71.51.61.6
RiceLb.5.34.65.65.25.45.54.66.5
Desiccated coconutLb.0.60.80.90.91.11.21.01.0
MustardOz.3.02.02.72.82.32.62.32.0
PeelOz.4.55.67.67.57.67.410.08.3
Confectionery (including chocolate)Lb.16*12141516171818
Ice-cream (factory production)Pint1.6*1.42.01.92.23.73.34.5
Aerated watersGallon0.91.11.11.31.81.61.7
TeaLb.7.86.86.66.47.16.77.07.0
TobaccoLb.3.22.83.13.23.53.84.24.2§

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.1926.1932.1935.19361937.1938.1939.
* Including locally produced cider.
Beer (ale and stout)—       
  Total (000 gallons)12,9498,86811,15912,93515,06117,12617,369
  Per head (gallons)9.25.87.18.29.510.710.7
Potable spirits—       
  Total (000 gallons)658323338385411442505
  Per head (gallons)0.470.210.220.240.260.280.31
Wine*       
  Total (000 gallons)262151270290293322298
  Per head (gallons)0.190.100.170.180.180.200.18

FUEL AND LIGHTING.

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).
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
193991,9558,02799,982

Consumption of other commodities for fuel or lighting purposes is shown in the following table. No data are available as to consumption of firewood.

Item.Description.Unit.1926.1932.1934.1935.1936.1937.1938.1939.
CoalTotal consumptionMillion tons2.51.92.12.22.22.32.32.4
CoalDomestic consumptionMillion tons0.90.80.90.90.90.90.80.9
KeroseneIlluminatingMillion gals.2.32.61.71.82.61.61.91.5
CandlesTotal consumptionMillion lb.3.72.52.52.32.11.71.51.7
GasTotal consumptionMillion cub. ft.3,3723,4383,2823,2633,3243,4443,5403,591
ElectricityTotal consumptionMillion units2886156677107758569761,109

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 Post 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 definite term, 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 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, 1940) fourteen national broadcasting-stations as follows:—

Station.Aerial Energy.Frequency.Wave-length.
 Kilowatts.Kilocycles.Metres.
1YA, Auckland10.00650462
1YX, Auckland0.15880341
1ZM, Auckland0.751,250240
2YA, Wellington60.00570526
2YC, Wellington5.00840357
2YD, Wellington0.20990303
2YH, Napier5.00750395
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 and stations 2YH (Napier) and 4YZ (Invercargill) are the main 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.

During the twelve months ended 31st March, 1940, transmission-time of stations in operation aggregated 50,038 hours, of which 31 hours 10 minutes were lost owing to technical faults and power failures. The main stations transmit almost continuously from 6 a.m. to 11.30 p.m. each day; while the alternative stations transmit from 5 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, 1940, shows that, of the total transmitting-time, 68.29 per cent. was devoted to music; 13.80 per cent. to news, reports, and announcements, &c.; 3.73 per cent. to educative and general talks; 3.31 per cent. to children's sessions; 5.61 per cent. to plays and sketches; 2.24 per cent. to church and devotional services; 1.48 per cent. to sporting commentaries and sporting talks; and 1.54 per cent. to miscellaneous.

Notable artists from overseas were engaged during the year for the programmes, but owing to the war conditions the number of these was smaller than in previous years. The usual practice was followed of giving broadcasting engagements to the best musical and other talent available in New Zealand. During the year ended 31st March, 1940, seventy-three concerts by New Zealand musical societies, choirs, &c., were broadcast, and approximately sixteen hundred performances were given by local artists.

The writing of plays, serials, and features is now a recognized branch of the National Broadcasting Service. An increasing number of plays by New Zealand authors is being broadcast every year, and the Service endeavours to give encouragement to local radio-play writers by the payment for plays that are reasonably close to broadcasting standards, the holding periodically of play-writing competitions, and the tendering of expert advice where plays of promise fall below the standard of acceptance.

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.

Recordings have also been made of authentic Maori songs, chants, and hakas, while the Centennial celebrations provided opportunities for recording Maori ceremonies. These Maori recordings have a distinct historic interest, and are regarded as a valuable acquisition to the library of the Service.

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 representatives.

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 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. except Sunday.

  4. 10.28, 10,29, and 10.30 p.m. except Sunday.

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).

The programmes of the national stations are published each week in the weekly journal, the New Zealand Listener, which was first issued by the National Broadcasting Service on 30th June, 1939.

SHORT-WAVE BROADCASTS.

The war has brought about a closer relationship than ever with the British Broadcasting Corporation, and the rebroadcasting from England of short-wave broadcasts of news, commentaries, and speeches has become a daily feature of the programmes, upon which the listening public has come to depend for its knowledge of world affairs.

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 license-fee for a receiving-station, which from 1st April, 1925, had been £1 10s., per annum, was reduced to £1 5s. per annum as from 1st April, 1935.

As at 31st March,Auckland.Wellington.Canterbury.Otago.Dominion.Licenses per Hundred of Population.
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
1940107,843127,11764,29446,428345,68221.07
(30th September, 1940)114,732124,69764,94647,198351,57321.51

An indication of the increased popularity of radio entertainment may be gained from the fact that at 31st March, 1940, approximately 85 per cent. of the households in New Zealand were is possession of licensed radio-receiving sets.

A summary of all radio licenses issued in New Zealand as at the 31st March, 1940, follows.:—

District.Receiving-stations.Radio-dealers.Other.Total Licenses.
Auckland107,8434139108,265
Wellington127,1173909127,516
Canterbury64,294176964,479
Otago46,428149146,578
Dominion345,6821,12828346,838

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 each of the last five years was: 1936, 411; 1937, 564; 1938, 811; 1939, 966; and 1940, 997.

A penalty is attached to the operating of unlicensed radio apparatus, and convictions for this offence during the last five years numbered: 1935, 932; 1936, 983; 1937, 1,076; 1938, 903; and 1939, 1,169.

A comparison of the density of radio licenses as at the 31st December, 1939, in the six loading countries where licenses are issued is as follows:—

Country.Percentage of Licenses to Population.
Denmark22.12
Sweden21.52
New Zealand21.00
Great Britain19.48
Netherlands17.21
Australia16.80

FINANCIAL STATISTICS.

During the four calendar years 1932 to 1935 the income of the Broadcasting Board (abolished as from 1st July, 1936) was £98,129, £125,629, £166,535, and £197,135 respectively, and during the six months ended June, 1936, £114,182. Expenditure (including appropriation to reserves) during the same period was—1932, £95,772; 1933, £123,236; 1934, £162,598; 1935, £194,632; six months ended June, 1936, £66,545.

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, 1939, and 1940:—

 Nine Months ended 31st March, 1937.1937-38.1938-39.1939-40.
 ££££
Programmes56,029109,526122,427110,410
Maintenance of plant15,78534,45838,30741,318
General administrative and running expenses17,42728,54929,96533,724
Subsidies to private “B” stations1,9221,334541203
Depreciation of assets14,94534,76646,58547,766
Other expenses6413,8025,86933,731
Total expenditure£106,749£212,435£243,694£267,152

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, 1939, and 1940, amounted to £311,817, £359,599, and £407,992, and the excess of income over expenditure to £99,382, £115,905, and £140,840 respectively.

NATIONAL COMMERCIAL BROADCASTING SERVICE.

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 noncommercial 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). The stations in the four main centres operate for eighteen hours daily, while Station 2ZA, Palmerston North, operates for seven hours daily. 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. Kilowatts.Frequency. Kilocycles.Wave-length. Metres.
1ZB11,070280.4
2ZB11,130265.5
3ZB11,430209.7
4ZB11,280234.4
2ZA¼1,400214.3

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 1939-40 income totalled £172,131, and expenditure £150,085, making a net profit for the year of £22,056. Corresponding figures for the previous financial year were—Income, £161,179; expenditure, £150,581; net profit, £10,598.

The programmes of the commercial stations contain a high percentage of entertainment, as compared with commercial announcements or direct advertising.

Sessions of informative value to the public include sporting broadcasts; home service sessions, film excerpts; gardening; child psychology; health lectures; returned soldiers' sessions; book reviews; cultural, travel, and topical talks. A comprehensive service is rendered to the community in various sessions; announcements and programmes, including broadcasts in connection with sickness and accident, losses of motor-vehicles or missing persons, blood-transfusion service, safety-first propaganda, direct assistance in the raising of funds for ambulance services, children's health camps, charities, and public-welfare assistance generally.

The Service maintains a close connection with the Organization for National Security. The broadcasting of war news is restricted to the British Broadcasting Corporation's short-wave transmissions which are relayed from all stations at frequent intervals. The Service also participates in the work of the Radio Co-ordination Committee, and through this medium gives its facilities to the broadcasting of Ministerial statements and other information connected with the war effort.

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, 1940, a further advance of 48 per cent. has been recorded, the total horse-power of hydro-electric generators at the latter date being 486,891.

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.

For a number of years there had been persistent demands that the Government itself should develop the power resources of the Dominion for the benefit of the people generally. This culminated in the passing of the Aid to Water-power Works Act in 1910, 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.

* The last two units, which will complete the development of this station, are now being installed.

† Construction work is proceeding on all five of these stations.

‡ No development work has yet been undertaken on this station.

§ The fourth unit of 15,000 kW. is now being installed.

Arapuni*106,950123,000150,150171,000175
Karapiro....90,000100,000100
Horahora10,30012,86010,30012,80027
Mangahao19,20024,00019,20024,000895
Waikaremoana—     
Upper station....40,00044,400440
Tuai (middle station)52,00062,20052,00062,200675
Pirihaua (lower station)....40,00044,400370
Cobb River....21,00026,2501,920
Arnold River (Kaimata)3,0603,6003,0603,60042
Lake Coleridge34,50040,64034,50040,640486
Highbank....25,20028,000330
Waitaki§45,00050,00075,00083,33370
Lake Tekapo....21,60024,00080-105
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 12,800 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. (since rewound and now rated at 21,000 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 head works 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., and the station is now being completed by the installation of two more units of the same rating.

Preliminary work has been commenced for the development of another large station on the Waikato River at Karapiro, the ultimate capacity to be 100,000 kVA. In the course of this development the site of the present station at Horahora will be submerged.

To ensure adequate water-supplies to the stations on the Waikato River during the periods of peak loading in the winter months it has been considered advisable to conserve the heavy spring and summer run-off, and measures to control the flow of the river at its source in Lake Taupo are now in progress.

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.

Following the completion of the Mangahao station, a commencement was made on the first stage (40,000 kVA.) of the development of the middle (or Tuai) station at Waikaremoana, and power was turned on to this capacity in November, 1929. With the bringing into operation of the third unit (22,200 kVA.) in December, 1939, this development was completed, and in the same year work was begun on the lower station at Piripaua. The full development of 44,400 kVA. is being undertaken.

These four stations in the North Island—viz., Horahora, Arapuni, Mangahao, and Waikaremoana—have been linked up and are operated as one system, while connections also exist with all the larger generating stations (hydro or steam driven) operated by supply authorities. This enables power to be supplied to or drawn from these as required.

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. A third unit has now been installed but is not yet under commercial load, while a fourth unit is in process of installation. Measures are being taken to raise the level of and control the outflow from Lake Tekapo in order to ensure an adequate supply of water to the Waitaki station during the winter months, and a single unit of 24,000 kVA. is being incorporated in the control works. Another single unit of 28,000 kVA. is to be installed at Highbank to make use of the surplus water available in the winter months in the Rangitata irrigation race.

In October, 1936, the Government took over the Southland Electric-power Board's system, including the generating station at Lake Monowai, and in February, 1938, acquired the Grey Electric-power Board's generating plant at Kaimata, on the Arnold River. During 1939 a grid system paralleling that in the North Island was established by linking these two stations with the Coleridge-Waitaki scheme, already interconnected. The Dunedin City Council's hydro-station at Waipori is also linked to the system, enabling power to be supplied to or drawn from this station if required.

Construction of a generating station on the Cobb River with an ultimate installed capacity of 26,250 kVA. had been undertaken by a private enterprise, the Hume (Cobb River) Electric-power Co., Ltd. The undertaking has been acquired and will be completed by the Government.

The following table for the last five years covers those State systems in actual operation in each year:—

1935-36.1936-37.1937-38.1938-39.1939-40.
 £££££
Capital outlay13,240,36015,661,23016,399,11217,255,48418,238,990
Total revenue1,040,6491,217,5291,468,6991,697,1171,932,264
Power purchased306....46,235156,481
Working and management expenses197,968225,305300,235350,540375,827
Interest585,268629,799589,645602,244592,127
Sinking fund..10,169164,553626,042484,811
Depreciation97,341329,204173,61596,912141,226
Total costs918,7251,194,4771,279,9681,722,8641,931,720
      
 Number.Number.Number.Number.Number.
Units generated792,864,909946,928,8511,070,666,4751,239,363,1841,396,940,397
Units purchased236,134....22,186,83766,426,276
Totals793,101,043946,928,8511,070,666,4751,261,550,0211,463,366,673
Units sold713,371,996856,018,126947,612,9001,117,652,7481,292,522,678

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 for this purpose were the cities, boroughs, counties, and town districts, but with the extension of electric supply into the country areas a wider organization became necessary. This was first provided under the Electric-power Boards Act of 1918, which 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, Hastings, Masterton, Lower Hutt, Petone, Blenheim, Greymouth, and Oamaru are included.

Thirty-two Boards—viz., Bay of Islands, North Auckland. Waitemata, Auckland, Franklin, Central Waikato, Cambridge, Te Awamutu, Waitomo, Thames Valley, Bay of Plenty, Poverty Bay, Wairoa, Hawke's Bay, Central Hawke's Bay, Dannevirke, Opunake, South Taranaki, Wanganui-Rangitikei, Manawatu-Oroua, Horowhenua, Hutt Valley, Tararua, Wairarapa, Grey, North Canterbury, Malvern, Springs-Ellesmere, Banks Peninsula, 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 Tauranga and Otago Boards purchase power in bulk from other authorities, although both now receive a part of their supply direct from the Government stations. The Southland station now operates tinder Government control (since 13th October, 1936). The Westland Board has delegated its license to a private company for a term of years, while three others—viz., Lake Wakatipu, Buller, and Reefton—were not actively functioning during 1939-40.

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 ElectricitySale of Material (Profit).Totals.*Capital Charges.Power.Totals.*
* Includes other items.
 £££££££
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
193914,380,0812,789,26822,5442,846,052915,4141,469,5022,708,997
194015,038,9783,172,91423,4643,239,2601,087,7061,667,7453,140,742

Revenue in the foregoing table is exclusive of moneys derived from rates. Rates, inclusive of arrears, brought in £4,045 in 1939-40. 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 were, during 1939-40, forty-nine establishments operated by other organizations, seven of which represented 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,
1938.1939.1940.
Stations .No9899100
Persons engaged (both sexes) No.3,4273,7393,991
Salaries and wages £929,6861,032,0431,120,554
Consumers No.388,719407,463426,505
Number of—    
  Ranges 63,93078,70292,323
  Milking 22,58724,85027,184
  Water-heaters 77,01991,711106,878
Generators (capacity)—    
  Main kVA.337,573338,845355,145
  Standby .kVA118,508119,370120,377
Route-miles of lines Miles.24,40725,98227,358
Revenue—    
  Current—    
    Retail £4,186,4954,537,0944,994,938
    Bulk £1,382,8081,650,2672,000,817
  Other (including rates) £122,638124,871130,297
      Total revenue £5,691,9416,312,2,327,126,052
     
Expenditure—    
  Working expenses £2,799,9663,242,4193,758,396
  Capital charges £2,137,9232,550,6052,663,661
      Total expenditure £4,937,8895,793,0246,422,057
     
Appropriations £422,328373,811509,617
Capital outlay—    
  Total expenditure £36,985,70238,672,79740,642,783
  Depreciation £5,474,7545,599,4775,965,689
  Net value at 31st March £31,510,94833,073,32034,677,094
Units—    
Generated (000)1,252,5621,413,5181,631,332
  Per head of mean population Units786877999
  Sold (retail) (000)975,5041,108,8571,281,124
  Bulk sales (000)957,5511,152,9611,370,985

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:— (a) Generating stations:—

  1. Generating solely.

  2. Generating and purchasing, but generating bulk of supplies of power.

(b) Distributing stations:—

  1. Generating and purchasing, but purchasing bulk of supplies of power.

  2. Purchasing solely.

The following table sets out the main particulars of all stations classified in this manner for the year ended 31st March, 1940:—

Generating only.Both Generating and Purchasing.Purchasing only.Totals.
Mainly Generating.Mainly Purchasing.
Stations No.22131847100
Capital outlay to date£ 6,670,70915,469,7268,536,3319,966,01740,642,783
Present net value £5,548,24013,458,8197,162,4998,507,53634,677,094
Revenue £613,1461,937,8302,200,3632,374,7137,126,052
Working-expenses £161,610624,8441,397,0551,574,8873,758,396
Capital charges and appropriations£ 413,2841,307,228703,016749,7503,173,278
Units generated (000)377,6801,179,60574,047..1,631,332
Units purchased (000)..97,025581,674694,9641,373,663
Units sold—      
  Bulk sales (000)254,251978,06279,55459,1181,370,985
  Retail sales (000)66,920155,371498,783560,0501,281,124

EMPLOYEES AND WAGES.

The following summary, covering all stations, shows for the year ended 31st March, 1940, 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 Wages paid out of Revenue from Sale of Energy.
    £££
Secretaries, managers, engineers3291330157,368130157,498
Clerical staff599359958143,99150,288194,279
Wage-earning employees2,682212,703766,7302,047768,777
    Totals3,6103813,9911,068,089152,4651,120,554
       
(b) Salaries or Wages not paid directly out of Revenue from Sale of Energy.
    £££
House-wiring174..17439,784..39,784
Trading departments73118419,9851,77021,755
New construction-works1,126..1,126303,789..303,789
    Totals1,373111,384363,5581,770365,328
    Grand totals4,9833925,3751,431,64754,2351,485,882

CAPITAL OUTLAY.

The following figures of capital outlay to 31st March, 1940, do not include the outlay in stocks of materials and capital invested in trading departments.

Class of Expenditure.Expenditure to Slot March, 1940.
 £
Land in connection with power- house, headworks, cottages, &c.287,085
Power-house buildings, cottages, &c.2,193,222
Generating plant, headworks, &c.8,902,240
Special standby plant1,659,382
Main transmission-line and main substations7,735,560
Distribution system, substations, land, cottages, &c.12,841,285
Public (street) lighting484,312
Office and store buildings, workshops, garages, houses, and service buildings958,063
Loose tools, meters, instruments, furniture, trucks, motor-cars, and equipment1,380,889
Interest during construction1,930,854
Loan conversion premiums117,395
Miscellaneous (cost of raising loans, law-costs, &c., and other capital expenditure)2,152,496
    Totals40,642,783

Owing to changes in the accounting methods of the Hydro-electric Branch of the Public Works Department, figures of capital expenditure during the year 1939-40 are not available on a basis comparable with that of previous years. Approximately £1,250,000 was expended during the year on extensions and additions to transmission and distribution lines, substations, &c., while additions to generating capacity, nearly all in the Government system, accounted for not less than £500,000.

ASSETS AND LIABILITIES.

The following statement of assets and liabilities summarizes the financial position of the industry as at 31st March, 1940, in addition to setting out the state of reserves and invested funds:—

Assets.
 ££
Capital expenditure40,642,783 
  Less amounts written off, &c.1,287,756 
  39,355,027
Stocks and trading department capital 1,267,025
Reserve funds accrued (invested outside the undertakings)—  
  Sinking funds 2,387,661
  Depreciation funds 843,557
  Renewal and other funds 542,035
Cash in hand and hank, sundry debtors, &c. 2,778,250
  £47,173,555
Liabilities
 ££
Capital raised32,810,887 
  Less repaid1,785,986 
  Balance owing 31,024,901
Other liabilities (including sundry creditors) 1,107,253
Reserves—  
  Sinking fund reserve 4,012,667
  Depreciation reserve 4,677,933
  Renewal fund reserve 486,140
  Accident fund reserve 68,305
  Other special reserves 3,172,309
  General reserve 1,023,174
Credit balance, Revenue Account 1,600,873
  £47,173,555

POWER PLANT.

Particulars relating to the power plant in use during the year ended 31st March, 1940, 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-turbines102473,812174,084119477,896
Gas-engines....61,81961,819
Oil-engines106814628,0115628,692

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.
19361,031,699731,6021,763,3011,548,956214,345
19371,141,958815,7051,957,6631,727,429230,234
19381,252,562954,2852,206,8471,933,055273,792
19391,413,5181,155,4522,568,9702,261,818307,152
19401,631,3321,373,6633,004,9952,652,109352,886

REVENUE.

Revenue is derived chiefly from the sale of energy, and in 1939-40 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 1939-40 represented less than 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.
 ££££££
19364,726,97012,53666,30017,72144,6334,868,160
19375,022,90319,75062,80716,84216,1345,138,436
19385,569,30334,97760,63517,1489,8785,691,941
19396,187,36147,28660,38010,1387,0676,312,232
19406,995,75546,03865,41112,0486,8007,126,052

EXPENDITURE.

A study of the expenditure figures reveals that overhead costs, comprising management expenses and capital charges, are in most years, slightly greater than prime costs, which may be taken as the operating-expenses. During the year ended 31st March, 1940, however, of the total expenditure recorded (£6,422,057), 49.96 per cent. represented overhead expenses, while operating-expenses or prime costs stood at 50.04 per cent.

The table following gives an analysis of expenditure:—

Item.Year ended 31st March,
1936.1937.1938.1939.1940.
Operating Expenditure.
 £££££
Cost of power1,056,9061,155,6181,382,0141,657,8272,008,989
Cost of generation80,94985,66490,52292,390110,679
Fuel11,54010,34612,6349,39742,639
Stores4,4002,8835,3613,8634,771
Repairs43,98334,59944,00844,68340,231
Standby plant37,93350,32074,011100,555127,142
Cost of transmission81,61872,92472,404101,327187,781
Cost of distribution463,316521,787600,469685,879659,950
Public (street) lighting24,72625,43429,81129,00931,162
    Totals1,805,3711,959,5752,311,2342,724,9303,213,344
      
Miscellaneous Expenditure.
 £££££
Cost of management308,640331,276403,195442,127463,832
Insurance18,89721,46822,99327,02627,484
Losses from trading5,2902,8504,3985,3879,686
Other expenditure61,61664,92858,14642,94939,050
    Totals394,443420,522488,732517,489545,052
      
Capital Charges.
Interest1,372,1151,357,0951,263,5971,276,2431,299,358
Sinking fund235,071227,912391,450876,029781,014
Depreciation reserve411,413521,900322,818254,716369,636
Loan repayment73,01393,51998,323106,757129,419
Exchange62,01986,76661,73536,86084,234
    Totals2,153,6312,287,1922,137,9232,550,6052,663,661
    Grand totals4,353,4454,667,2894,937,8895,793,0246,422,057

The distribution of the expenditure per unit sold is given hereunder:—

Year ended 31st March,
1936.1937.1938.1939.1940.
 d.d.d.d.d.
Operating-expenses0.280.270.290.290.29
Capital charges and miscellaneous expenses0.390.380.320.330.29
    .Totals0.670.650.610.620.58

APPROPRIATION OF SURPLUS.

The following table shows the appropriations of net surplus for years ended 31st March:—

1936.1937.1938.1939.1940.
 £££££
Renewal Fund18,78244,25433,500100,00739,445
Reserve Fund15,09912,90215,96723,155223,827
Other225,624259,323372,861250,649246,345
    Total appropriated259,505316,479422,328373,811509,617

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.1936.1937.1938.1939.1940.
 H.P.H.P.H.P.H.P.H.P.
Auckland North3,1263,1263,1463,0973,067
Auckland
Auckland South118,445118,445182,877183,831182,881
Gisborne56,27956,27956,27956,03984,039
Hawke's Bay
Taranaki North12,79612,87912,87915,05715,061
Taranaki1,4951,4951,4951,4951,495
Wellington North33,070½33,037½33,037½33,037½32,034½
Wellington1,5304,5634,6044,5594,504
Nelson and Marlborough2,777
Westland9,3969,3559,2109,40010,000
Canterbury59,80359,83359,81859,81859,818
Canterbury South
Otago81,766½81,407½79,60480,782½80,722½
Southland13,401½13,821½13,223½13,223½13,269
    Totals393,885½394,241½456,173460,339½486,891

The following table gives an analysis of the purposes for which plants were generating power as at the 31st March, 1940:—

District.Mining.Electric Supply.Flax-mills.Sawmills.Flour-mills.Dairying.Construction Works.Freezing-worksPaper-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 N712,920......20..4..523,067
Auckland......20..4..523,067
Auckland South876181,993..............12182,881
Gisborne..84,027       1284,039
Hawke's Bay..............
Taranaki North..14,600......427..20..1415,061
Taranaki..1,455..............401,495
Wellington N..32,020......8......32,034½
Wellington..          
Nelson4,410..5..30......594,504
Marlborough          
Westland5009,100..400............10,000
Canterbury..59,62426..119........4959,818
Canterbury S
Otago65078,617..761........1,387½80,722½
Southland64510,0168........1,2001,400..13,269
    Totals2,742478,78234412180485..1,2241,4001,632486,891

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, 1940, showing 19,468 estates of a value of £62,622,175.

At 31st March,Total Value of Estates in Office, including Unrealized Assets.Funds at Credit of Estates and Accounts.
 ££
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
194062,622,17537,958,525

New estates which came into the Office during the year ended 31st March, 1940, numbered 3,164, and represented a value of £5,880,776. The classification of these and of the estates under administration at 31st March, 1940, is as follows:—

New Estates during 1939-40.Estates under Administration at 31st March, 1940.
Number.Value.Number.Value.
  £ £
Wills estates1,4612,940,0237,54720,378,320
Trust and agencies326796,4592,6498,128,631
Intestate estates598368,1922,5611,585,573
Mental patients' estates486484,9272,4732,827,627
Miscellaneous estates2931,291,1754,23829,702,024
     Totals3,1645,880,77619,46862,622,175

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, 1940, held moneys to the total of £23,810,641. The total amount invested by the Public Trust Office as at 31st March, 1940, on behalf of the estates and funds under administration was £38,080,587.

During the year ended 31st March, 1940, 7,204 wills were deposited with the Public Trustee, and 2,681 were withdrawn on account of the death of the testator or for other reasons, the net increase for the year being 4,523. The number of wills on deposit at the 31st March, 1920, was 25,792; by 1930 it had increased to 68,253; while at 31st March, 1940, it had risen to 97,675.

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 1939-40, wills to the number of 4,391 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, 1939, 629 private and 35 public companies were registered, and 17 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.
* Limited by guarantee.
  £ £ £
Under £1,00021386,1501*..1*..
£1,000 and under £2,000169202,37511,250....
£2,000 and under £3,00073159,61524,000....
£3,000 and under £4,00040126,47726,000....
£4,000 and under £5,0002085,05014,000....
£5,000 and under £6,00028141,600210,500210,000
£6,000 and under £7,0001168,35016,000....
£7,000 and under £8,000751,200214,500....
£8,000 and under £9,000540,200........
£9,000 and under £10,000327,000........
£10,000 and under £15,00028306,389889,500110,000
£15,000 and under £20,00010162,099460,000....
£20,000 and under £50,00015368,6128210,000370,000
£50,000 and over7665,30031,529,000104,395,000
    Totals6292,490,417351,934,750174,485,000

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.
* See letterpress.
  £
19205019,563,933
19213373,498,208
192241713,125,494
192350213,006,085
192456521,367,310
192562114,760,398
192665510,748,231
19276988,701,808
192873610,984,907
192990312,472,057
19308936,702,675
19317958,283,581
19328126,865,769
19338307,300,999
1934933200,739,139*
193581024,238,018
19369429,934,903
19378886,113,476
19388246,575,619
19396818,910,167

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 and under £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 £10,0001199,50082,55371,61379,458
£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 £100,00017410,556,8828,020,4837,217,8243,421,090
£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 period 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. Then 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
     Totals7,39955,793,62149,270,54420,460,066

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 addition to the public and private companies for which statistics have been shown, there were 212 overseas companies operating in New Zealand at 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 1,821 applications for letters patent during 1939, 700 of these being filed with provisional specifications, and 1,121 with complete specifications. Patent fees for the year amounted to £10,647.

The total number of applications received up to 31st December, 1939, was 82,854, and the patents in force in New Zealand at that date numbered 8,099. 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.1937.1938.1939.
New Zealand719688704
Great Britain435533454
Australia264278266
United States158148182
Germany17314181
Netherlands1911348
France23819
Canada71813
Sweden61012
Switzerland647
Union of South Africa437
Denmark476
Federated Malay States....5
Belgium463
Italy333

A large number of the applications for patents deal with telephony and telegraphy, the figures for 1939 and 1938 being 512 and 578 respectively. These show a considerable increase on the average yearly number for the quinquennium 1933-37 (389).

The total number of applications during 1939 in respect of trade-marks was 694, and the fees received totalled £3,255. Of the total applications (remarks above regarding joint applicants are relevant here also), 334 were made by residents of New Zealand, 128 came from Great Britain, 86 from Australia, 76 from the United States, 31 from Germany, and 13 from Canada.

The number of applications for registration of designs totalled 137, and the fees received for the year were £159.

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.
19302,1031,265169
19312,065999151
19321,845925161
19331,761814143
19341,766915146
19351,730943185
19361,8361,096124
19371,832889193
19381,960860160
19391,821694137

For the year 1939 the total receipts of the Patent Office were £14,134 and the payments £6,846, leaving a surplus of £7,288 as compared with £7,964 in 1938.

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 Marine Department.

Inspections of boilers and machinery during the year ended 31st March, 1940, numbered 104,558, made up as follows:—

Boiler inspections— 
  Stationary, portable, and traction boilers4,778
  Steam-pressure vessels4,245
  Air-receivers1,078
    Total boilers10,101
  
Machinery inspections— 
  Lifts3,398
  Cranes513
  Hoists1,599
  Machines driven by steam power10,987
  Machines not driven by steam power77,450
  Electric-power supply station units150
  Tractors360
      Total machinery94,457
      Grand total104,558

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 1939-40. The number of accidents reported as caused by machinery were: Fatal, 4; non-fatal, 129.

In 1939-40 now boilers to the number of 654, representing an aggregate of 2,121 horse-power, were inspected and tested before being used. Of these, 330, of a total horse-power of 1,094, were made in New Zealand.

Revenue and expenditure in connection with inspection of machinery for the last five years have been as follows:—

1935-36.1936-37.1937-38.1938-39.1939-40.
Revenue—£££££
  Inspection fees, &c.19,56620,08220,87221,56222,418
  Examination fees, &c.423593604618547
      Totals19,98920,67521,47622,18022,965
Expenditure18,34920,89222,04521,74722,523

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 521. Of this number, 401 were successful and 120 failed in their examinations. Four hundred and seventy-two certificates were issued, 401 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 obtainable. Since statistical information as to production in each of the major productive activities is readily available, 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.

It should be noted that production of material commodities only is taken into consideration in these statistics.

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 these 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 remained substantially the same 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 a close approximation 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 counted once only. For example, the gross value of agricultural products in 1938-39 is estimated at £29.2 million; but, as the major part of this was utilized for the purpose of adding value to live-stock, the net value only (£9.2 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, &c.,” 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 estimates of value of production from the year 1900-01 are quoted in the following table. 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
1936-378.847.132.74.00.53.626.712.4135.8
1937-388.640.733.84.20.64.130.013.2135.2
1938-399.237.438.84.40.64.030.514.9134.8

The total value of production for the year 1938-39 has been computed at £134,800,000. This figure represents a decrease of £400,000 as compared with the 1937-38 total of £135,200,000.

Agricultural production in 1938-39 increased by £600,000, or by 7.0 per cent. in comparison with the year 1937-38, due chiefly to a general increase in prices.

Pastoral production totalled £37,400,000, a decrease of £3,300,000 (8.1 per cent.), as compared with 1937-38 (£40,700,000), a decline in the numbers of sheep and pigs being principally responsible. A decrease in the price of wool was more than set off by increased production.

No change is recorded in the aggregate value of the dairy-production group, the decline in the volume of dairy-produce being offset by an increase in the guaranteed prices for butter and cheese.

The value of mineral production increased by £200,000 in 1938-39, while fisheries production was maintained at the same level as in the previous year.

Factory production—i.e., value created by factory processes—at £30,500,000 established a new record, £500,000, or 1.7 per cent. above the level of 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.).

The increase of £1,700,000 in the “Building and Miscellaneous” group, is consequent on increased housing construction during 1938-39.

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 Numbers of Volume of Production (1928-29 = 1000).Index Numbers of Producers' Price (1928-29 = 1000).
Total.Per Head.Total.Per Head.Total.Per Head.
  £(m.)£     
1900-01812,01033.941.72684834655761039
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
1918-191,174,62885.672.96768441027658822
1919-201,217,15093.176.57358851088676813
1920-211,258,31399.479.07859141105710827
1921-221,291,37693.772.6740840997742843
1922-231,317,154100.476.2793882948836930
1923-241,339,786104.177.78228991029799874
1924-251,367,978119.987.694710141111852913
1925-261,399,583110.879.28759171016861903
1926-271,427,569111.578.1881904951926951
1927-281,447,657120.183.0949961987961974
1928-291,464,582126.686.410001000100010001000
1929-301,482,805120.981.595594390710531040
1930-311,504,02297.664.97717517631010984
1931-321,521,22883.655.0660637690957923
1932-331,533,25283.854.76626336541012968
1933-341,545,62898.863.978074072610741019
1934-351,556,92397.062.37667217391037976
1935-361,568,432114.272.890284380911151042
1936-371,582,244135.885.8107399388912071117
1937-381,598,570135.284.6106897990611791081
1938-391,616,650134.883.4106596590511771066

INDUSTRIAL EFFICIENCY.

In keeping with modern trends of industrial planning and organization in overseas countries the Legislature of the Dominion introduced a measure, in 1936, designed “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.” This legislation became operative as the Industrial Efficiency Act, 1936, and under it the Bureau of Industry was constituted.

The Bureau of Industry, which meets at frequent intervals, is comprised of both “ordinary” and “special” members appointed by the Minister of Industries and Commerce. The “ordinary” members are Government employees who are appointed because of some special knowledge or qualifications appropriate to the administration of the Act. “Special” members may be appointed to represent various types of industries, and may include representatives of the workers in those industries. At the present time there are eleven “ordinary” members and four “special” members. Of the former, three are executive officers of the Department of Industries and Commerce, and the Act provides that the Secretary of the Bureau shall be an officer of that Department. Of the “special” members, two are representatives of manufacturers and two ore representatives of primary industries.

The Industrial Efficiency Act charges the Bureau with a number of functions, the principal of which is the making of recommendations to the Minister of Industries and Commerce for the administration of the Act. In addition to its advisory functions, the Bureau is the licensing authority under the Act, and besides preparing plans for industries it is charged with maintaining a continuous survey of industries, of industrial finance, and of industrial methods, as well as collaborating with the Department of Scientific and Industrial Research and the New Zealand Standards Institute.

The Act provides for the formulation of an industrial plan for the organization of any industry or related industries, but so far, only two industrial plans, relating to the pharmacy and flax industries respectively, have been brought into operation. Plans for a number of other industries have, however, been provisionally formulated and have been the subject of lengthy discussions with the industries concerned.

An industrial plan sets out, for the most part in general terms, what might be described as a code for the better organization of the industry, and defines the functions of the industrial committee, which is appointed in each case to administer the plan. Such a plan cannot be put into operation until a majority of those engaged in the industry indicate their acceptance, and where a plan is accepted the Act provides for the appointment of an industrial committee representing the employers, the workers, and the Government.

It is, however, the portion of the Act relating to industrial licensing that has engaged the greater attention of the Bureau of Industry. Up to November, 1940, thirty-five industries had been brought under the licensing provisions of the Act. Licensing is usually a prerequisite to planning, and involves control being exercised over the entrance of new units into the respective industries, as well as the imposition of appropriate conditions on licenses in order to ensure that the industry is being carried on by licensees in a manner calculated to conform to industrial efficiency and the national interest.

Provision is made in the Act for all decisions of the Bureau of Industry to be subject to appeal to the Minister of Industries and Commerce by persons who consider themselves aggrieved by the decisions, and this section of the Act has been availed of to a considerable extent. Although a number of appeals have been successful, the proportion of these, to the total decisions of the Bureau, is under 1 per cent.

As an indication of the extent to which businesses have become subject to the Industrial Efficiency Act it may be mentioned that there are about 7,000 licensed units, of which the distributive or semi-distributive industries are by far the largest proportion. There are some 3,500 resellers of motor-spirits licensed, nearly 600 pharmacists, some 500 fish-retailers, and nearly 2,000 fishermen. So far as manufacturing industries are concerned, the total number of units is not large, many licensed industries having less than six units, while others range up to seventy.

In addition to the above functions, the Bureau of Industry is charged with making recommendations to the Government on applications made by industrial enterprises for financial assistance from the State.

On 1st November, 1940, the following thirty-five industries were subject to licensing under the Industrial Efficiency Act. The dates in brackets are those on which the industries concerned were first brought under the 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 by a fisherman for sale of fish (not trout, whitebait, or oysters). (15th April, 1937.)

  • Export of fish (not salmon, trout, whitebait, or oysters). (15th April, 1937.)

  • Preservation for sale, in hermetically sealed cans, jars, or other containers, of fish (not trout). (28th September, 1939.)

  • Sale by retail of fish (not trout, whitebait, or rock- oysters). (28th September, 1939.)

  • Sale by wholesale of fish (not trout, whitebait, or rock-oysters). (28th September, 1939.)

  • Manufacture for sale of footwear. (7th September, 1939.)

  • Canning of fruit and vegetables. (8th February, 1940.)

  • Manufacture of gut from casings. (30th May, 1940.)

  • Manufacture for sale of macaroni. (13th June, 1940.)

  • Manufacture of malt-extract. (14th December, 1939.)

  • Importation and/or wholesale distribution of motor-spirits. (10th December, 1936.)

  • Retail sale and distribution of motor-spirits. (10th December, 1936.)

  • Manufacture of nails. (5th April, 1939.)

  • Refining of used oil. (8th August, 1940.)

  • Taking from oyster-beds of oysters. (4th February, 1937.)

  • Manufacture of paper-pulp or paper products. (28th September, 1939.)

  • Milling of Phormium products. (5th October, 1939.)

  • 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 for sale of bituminous roofing material. (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 of the industries listed above in many cases serve only in a general way to indicate the scope of the industries as licensed, full details being available in the relevant licensing notices.

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 persons (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 per cent. and 89.46 per cent. respectively.

A statement of the voting in individual electorates in 1938 is given in the 1940 Year Book, (pp. 922-925).

BY-ELECTIONS.

During 1940 two by-elections were held, one in the Auckland West electorate due to the death of the late Right Hon. M.J. Savage, P.C., M.P., and the other in the Waipawa electorate due to the death of the late Mr. A. E. Jull, M.P. The date of the former election was 18th May, 1940, and of the latter, 16th November, 1940. The results of these by-elections were as follows:—

Auckland West.
Names of Candidates.Number of Votes recorded.
Carr6,151
Fortune2,958
Kennedy15
Naden8
Pickles132
Watson375
  Informal68
    Total9,707
The number of electors on the roll was 16,170.
Waipawa.
Names of Candidates.Number of Votes recorded.
Christie3,189
Harker4,913
  Informal34
    Total8,136
The number of electors on the roll was 10,685.

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, in November, 1940, 46 club charters and 140 wine-makers' licenses.

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

NOTE.—There was no referendum taken in 1931, on grounds of economy.

The voting results in each electorate in 1938 are shown on page 927 of the 1940 Year-Book.

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 for 1938 are also shown on page 927 of the 1940 Year-Book.

RELIGIOUS PROFESSIONS.

The following table presents a summary of the religious professions of the population as recorded at the general census of 1936, together with comparative figures for the preceding census of 1926. Detailed statistics are contained in a special census volume (Vol. VI.—Religious Professions).

The figures quoted below are exclusive of Maoris, but a summary of the religious professions recorded by the Maori population may be found in the census volume referred to in the previous paragraph, while much greater detail is given in the special volume devoted solely to Maoris (Vol. III.—Maori Census).

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

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 rattling of 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 also permits sweepstakes and art-unions (as defined) under certain specified conditions.

During the year ended 31st March, 1940, 513 licenses were issued under the authority of section 42 (above), of which 290 were for works of art, 210 for small amounts of alluvial gold, and 13 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:—

1935-36.1936-37.1937-38.1938-39.1939-40.
Number of lotteries 91110913
Gross sales£157,762224,657207,464182,109260,611
Commission on sales£23,66433,69931,12027,31639,092
Expenses£26,07632,53729,23726,36534,022
Prizes£45,00055,00050,00045,00065,000
Net proceeds£63,022103,42197,10783,428122,497
Lottery duty£15,77622,46520,74618,21126,061
Net profit£47,24680,95676,36165,21796,436

Of the net profits in 1939-40, £51,000 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.

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 Sumner 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. 26m. 05s. to 10h. 26m. 50s., the letter O (__ __ __), 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. 29ra.; 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 9h. 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.

Reference to pages 932-935 of the 1940 Year-Book, or pages 812-815 of the 1939, issue, will give a brief description of the main tourist attractions in New Zealand.

MINERAL WATERS AND SPAS.

For information concerning the mineral waters and spas of New Zealand reference should be made to the 1940 and earlier editions of the Year-Book, which contain a short description of the Rotorua and Te Aroha spas, while in the 1913 issue of the Year-Book will be found detailed analyses of the various mineral waters throughout New Zealand.

REVIEW OF LEGISLATION, 1940.

Acts passed to date of adjournment: Public Acts, 31; Local Acts, 6; Private Acts, 1.

The following is a brief synopsis of the more important public Acts passed by the General Assembly during the 1940-41 session up to the adjournment on 13th December, 1940.

The Emergency Regulations Amendment Act, 1940, extends the powers to make emergency regulations conferred by the Emergency Regulations Act, 1939, and extends the provisions of that Act to the Cook Islands and Samoa.

The Land and Income Tax Amendment Act, 1940, prescribes higher basic rates of income-tax, extends the exemption in respect of dependent children to children brought to New Zealand under a Government scheme and supported by the taxpayer, makes State trading Departments liable for income-tax, exempts certain classes of incomes from taxation, and provides for the payment of income-tax in advance by instalments. The Act also provides that any registered charge securing land-tax secures all unpaid land-tax, and remains a charge on the land in respect of which it is payable.

The Social Security Amendment Act, 1940, imposes a liability for the payment of social-security charge on certain non-resident companies and imposes the same liability on public authorities. The Act also provides that companies shall be entitled to an allowance for land-tax in the computation of chargeable income. Family benefits, where payable, are now in respect of each child in excess of one.

The Finance Act, 1940, relates to public revenues and loans, and authorizes certain prescribed borrowing by the Government and validates certain public expenditure, and authorizes the imposition and collection of a national security tax. Provision is made for an increase in the rate of sales tax and for the imposition and collection of death duties at increased rates. Power is taken for the postponement of the 1941 census.

The National Savings Act, 1940, enables members of the public to invest moneys which may in turn be borrowed by the Government for authorized purposes. Two methods of investment are provided for—(a) the deposit of funds in National Savings Investment Accounts to be administered by the Postmaster-General; (b) the purchase of National Savings Bonds. Investments will carry interest at rates to be prescribed, and, in the case of National Savings Investment Accounts, the amounts invested will not be repayable until the expiration of a prescribed period.

The War Pensions Amendment Act, 1940, amends the definition of the expression “dependant” in relation to members of the Forces, and provides that in certain cases the War Pensions Board may apportion a veteran's allowance between the veteran and his dependants.

The War Pensions Extension Act, 1940, extends the provisions of the War Pensions Act, 1015, to members of the Forces serving in connection with the present war.

The Rural Housing Amendment Act, 1940, makes certain amendments of a minor nature to the Rural Housing Act, 1939.

The Thames Borough Commissioner Amendment Act, 1940, provides for the conversion of the Thames Borough and the Thames Harbour Board Loans, and extends the period of the term of office of the Thames Borough Commissioner.

The Reserves and other Lands Disposal Act, 1940, provides for the disposition of certain reserves, Crown lands, and other lands, and validates certain transactions relating to land.

The Housing Amendment Act, 1940, extends the purposes for which moneys in the Housing Account may be expended, extends the purposes for which land may be acquired under the principal Act, authorizes the construction of access ways, and provides that certificates of title may be granted for land subject to the principal Act, and which is not comprised in any existing certificate of title.

The Carriage by Air Act, 1940, gives effect in New Zealand to a convention signed in Warsaw for the unification of certain rules relating to international carriage by air.

The Local Legislation Act, 1940, confers certain powers on various public bodies and validates certain transactions entered into by local authorities.

The Health Amendment Act, 1940, provides that the conservation of public health in areas outside the jurisdiction of local authorities is to be a function of the Health Department, and states the obligation of local authorities to provide sanitary works. The procedure relating to the issue of closing orders in respect of insanitary premises is amended, and power is given to isolate “carriers” of infectious diseases. The provisions of the principal Act as to the quarantine of ships are modified, and provision is made in respect of the quarantine of aircraft. Provisions for the protection of infirm or neglected persons are extended, and protection from civil or criminal liability is given to persons acting under the authority of the principal Act.

The Finance Act (No. 2), 1940, authorizes, in Part I, the establishment of a linen-flax industry, restores the exemption of charitable gifts from death duties and gift duties, and extends the power to levy rates under the Swamp Drainage Act, 1915. Part II makes certain amendments to income-tax legislation. Part III relates to Government superannuation funds, the most important provision being that which authorizes contributors to Government superannuation funds to elect to accept reduced retiring-allowances in consideration of annuities to widows or approved dependants.

The Orchard and Garden Diseases Amendment Act, 1940, prohibits the introduction to New Zealand of diseased plants, &c., and provides for the making of regulations relating to the control and eradication of vegetable diseases.

The Electoral Amendment Act, 1940, provides for the voting at elections and polls of members of the Forces serving overseas.

The Excess Profits Tax Act, 1940, provides for the imposition and collection of an excess profits tax. Subject to certain exemptions, an excess profit is the amount by which an actual income exceeds a “standard” income as laid down in the Act.

The Termites Act, 1940, makes provision for the detection, control, and destruction of termites.

The War Pensions and Allowances (Mercantile Marine) Act, 1940, provides for the payment of pensions and allowances to members of the New Zealand mercantile marine and their dependants, in respect of death, disablement, or detention suffered by such members as a result of the present war.

The Native Purposes Act, 1940, amends the law relating to Natives and Native land, adjusts claims and disputes in relation to Native land, and confers certain jurisdiction on the Native Land Courts.

The Finance Act (No. 3), 1940, provides for the temporary relief from income-tax of “proprietary companies” establishing new industries, and makes certain adjustments in respect of the liability for social-security charge and national-security tax. It also authorizes companies to adjust dividends in respect of national-security tax, authorizes the payment of cost-of-living allowances to persons whose salaries or wages are payable out of public moneys, and restricts the registration of transfers of shares in bond-holding companies.

The Insurance Companies Act, 1940, provides for the deposit of security with the Public Trustee by local insurance companies. Special provisions are made in respect of companies undertaking business in connection with the Motor-vehicles (Third-party Risks) Act, 1928. Provision is also made relative to the winding-up of insolvent insurance companies.

The Small Farms Amendment Act, 1940, provides machinery for the taking of land for the settlement of discharged soldiers. Provision is made for the assessment and payment of compensation in respect of any land so taken.

The Finance Act (No. 4), 1940, makes provision for the granting of pensions to members of the Emergency Reserve Corps and to their dependants in respect of the death or disablement of such members in the course of their duty. Amendments are made to the social-security legislation, the most important of which is the provision that medical benefits under the Social Security Act may be provided by mutual arrangement between medical practitioners and patients.

The Sea Carriage of Goods Act, 1940, brings the law of New Zealand into conformity with the law in England relating to the carriage of goods by sea. The Act is based on the revised Hague rules which have been adopted in England by the Carriage of Goods by Sea Act, 1924.

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.

  • Islands annexed to New Zealand.

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 email 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, 1940, was 510, including 130 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 reading 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, 1940, was 720, 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.

  • Auckland Islands.

  • Campbell Island.

  • Antipodes Islands.

  • Bounty Islands.

  • Snares Islands.

  • Solander Island.

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, 1800, 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 of the group 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 is about thirty miles in circumference. 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) lying nearly north and south over a space of four to five miles; accepted position, 49° 41′ 15″ south, and longitude 178° 43′ cast. 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 islets, 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 bear 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. For the benefit of the trans-oceanic air services a meteorological station and an air-radio station have been established on this island. With the official staff, the population in April, 1940, was 20.

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 (in 1773) was Manuae, to which, with the adjacent islet of Te Au-o-Tu, he gave 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, to be followed later by European missionaries, on the various islands of the lower group. 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, To 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 months' 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 as 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 1939-40 was £48,943 and the expenditure £53,204.

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. In the administration of public health the Chief Medical Officer is assisted by a small European staff together with native medical practitioners. It is hoped that eventually at least one each of the latter will be resident on each island. During the year 1939-40, 1,079 injections were given, and at the hospital at Rarotonga 325 in-patients and 15,491 out-patients were treated.

The manufacture or importation of intoxicating liquor is prohibited absolutely, except 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.
* Uninhabited at time of census.
Aitutaki1,4311,719
Atiu9331,086
Mangaia1,2491,459
Manihiki416487
Manuae238
Mauke511652
Mitiaro238265
Palmerston9790
Penrhyn395467
Pukapuka526651
Rakahanga327290
Rarotonga3,9365,054
Suwarrow**
Takutea**
Nassau*18
    Totals10,08212,246

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 1940 the estimated population was given as 13,365. During the year ended 31st March, 1940, registered births for the island of Rarotonga numbered 190 (males 98, females 98); deaths, 93 (males 48, females 45); and marriages, 35.

EDUCATION.

Eleven Government schools are established on six islands of the Lower Group and at Pukapuka, and the Administration subsidizes the London Missionary Society for its seven schools established on the other islands. In addition, seven 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 is 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 1939, 3,090 children were being educated in the Cook Islands schools.

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, 1940, only two permanently inhabited islands, Mitiaro and Rakahanga, without radio-stations. The chief station is Raratonga Radio, which maintains direct communication with the substations and with Wellington, Apia, and Suva. For the year 1939-40, 5,573 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 five years are—

Year.Exports to New Zealand.Total Exports.Imports from New Zealand.Total Imports.
 ££££
193540,47253,59943,56661,676
193660,18267,55653,91372,576
193757,99686,33360,56386,534
193866,11073,18457,22774,789
193950,69756,68956,33473,559

Apart from copra exports (£5,984 in 1939), the bulk of the trade is with New Zealand. In 1939 other countries to which exports were sent were the United States, £4,690; and the United Kingdom, £1,293. Imports in 1939, exclusive of imports from New Zealand, came chiefly from the United Kingdom, £5,597; Australia, £4,014; and the United States, £4,011.

Exports of principal commodities during 1939 were—

 Quantity.Value.
  £
Oranges54,587 cases24,552
Bananas46,265 cases19,716
Copra912 tons5,984
Tomatoes10,860 boxes4,019
Orange-juice6,972 gallons1,307
Coconuts1,237 sacks464

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:—

19024,079
19063,822
19113,943
19163,880
19213,750
19263,795

The following comparison with the census taken on 20th April, 1926, shows an increase of 309 (8.14 per cent.) in the ten years:—

 Census, 1926.Census, 1936.
Native population—  
  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 4,281 at 31st December, 1939.

EDUCATION.

There are three Government schools, where agriculture, handicraft, domestic art, and woodwork form part of the curriculum. The average roll number of these three schools was 550 in 1939, with an average attendance of 94 per cent. In addition, there are nine schools under the control of the London Missionary Society, which are subsidized by the Administration. The average roll number for these schools during 1939 was 440.

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. Admissions to the hospital during the year 1939 numbered 105; out-patients treated, 13,820; and injections given, 4,198.

During 1939 births registered in Niue numbered 148; deaths, 77.

REVENUE AND EXPENDITURE.

Revenue of the Niue Island Administration for the year ended 31st March, 1940, was £7,342, and expenditure aggregated £13,430. No grants were received from the New Zealand Government.

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, which meets the requirements of the island, has been maintained by a Government steamer.

Radio communication is maintained by regular services with New Zealand and Western Samoa.

TRADE.

Exports and imports for the last five 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.
* Not available.
 ££££
193510,01012,07613,38015,288
193615,91522,99222,28024,662
193712,46923,32126,14229,309
193811,47915,04514,08016,380
1939*11,55412,53415,459

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 1939 were—

 Quantity.Value
  £
Bananas16,481 cases6,579
Kumaras123 tons2,529
Fancy baskets1,736 dozen1,510
Hats1,042 dozen568

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 in 1838, 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. In 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 been 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, 1940, compiled by the Administration are as follows: Males, 31,219; females, 29,711; total, 60,930.

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, 1940, consisted of 19 Europeans, 3 of whom were Medical Officers, and 137 Samoans, the latter including 14 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. At the present time, with the generous assistance of overseas research institutions, a determined effort is being made to isolate the cause of malignant jaundice. During 1939-40 there were 2,475 in-patients and 30,735 out-patients treated at the hospitals and dispensaries. 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 for 1939 were as follows:—

School.Number.School Population.Teaching Staff.
Grade II809,144222
Grade III41,62031
Teachers' Training-school1501
European school146718
Post-primary school1241

REVENUE AND EXPENDITURE.

The figures of revenue and expenditure for each of the last five years are:—

Year ended 31st March,Revenue.Expenditure.
 ££
1936111,867100,736
1937117,909116,613
1938139,450139,070
1939123,803119,233
1940131,416135,648

The principal sources of revenue are import and export duties, which for the calendar year 1939 returned £45,239 and £22,538 respectively. The public debt of the Territory at 31st March, 1940, was £102,210. 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, 1940, numbered 661, of whom 64 were Europeans, 76 of part Samoan blood, and 521 Native Samoans, the great majority of the Native Samoans being employed in the education and health services. There were, in addition to the foregoing, 240 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.
 ££
1930284,515275,355
1931194,447164,950
1932183,028150,902
1933173,837150,856
1934128,11792,784
1935189,298137,757
1936263,255167,020
1937352,436267,868
1938248,605196,272
1939220,409194,736

The principal item of export is copra, exports of which in 1939 totalled 12,536 tons, of a value of £108,078. Bananas of a value of £74,965, representing 199,905 cases; cocoa, £25,152 (650 tons); and rubber, £4,509 (48 tons); constitute the only other items of any importance.

Of the exports in 1939, £213,871 was the produce of Western Samoa, the remaining £6,538 being re-exports. Total exports in 1939 included £84,305 to New Zealand, £39,569 to the United Kingdom, £33,981 to the United States, and £30,386 to the Continent of Europe. The imports in 1939 came principally from New Zealand (£62,498), Australia (£38,113), the United Kingdom (£24,476), the United States (£20,157), Japan (£10,873), Netherlands East Indies (£9,986), Canada (£8,444), Fiji (£5,786), Burma (£4,492), and India (£3,784).

The trade turnover for 1939 shows a total of £415,145, as compared with £444,877 for the previous calendar year, a decrease of 6.7 per cent. The decline in trade was mainly due to the substantial fall in the exports of cocoa, the heavy floods in January, 1939, having ruined the year's crops.

Individual export duties, which in 1939-40 returned £22,538 (£33,153 gross, less refunds £10,615), are £1 10s. per ton on copra, £2 per ton on cocoa, 6d. per standard case or 3d. per bunch on bananas, and Id. per pound on rubber.

Vessels entered inwards at the Port of Apia during 1939 numbered 98, and represented an aggregate tonnage of 112,306. The tonnage of cargo brought by these vessels was 13,220, while cargo entered outwards totalled 31,489 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 1940 the population was 1,289.

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, whose term of appointment is five years, the four successive administrators to date having been appointed by the Australian Government.

GEOGRAPHICAL.

Nauru Island is barely ⅓ 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 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 7⅝. (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, 1940, have been as follows:—

Year ended 30th June.Exports.Shipments to New Zealand.
Nauru Island.Ocean Island.Total Shipments.Quantity.Per Cent. of Total.
* Estimate.
 Tons.Tons.Tons.Tons. 
1936500,600319,779826,379192,87923.3
1937577,600429,0001,006,600243,40024.2
1938836,250329,8501,166,100290,30024.9
1939924,250300,2671,224,517293,04723.9
1940932,000*315,000*1,247,000*404,000*32.4*

At the present time Australia and New Zealand absorb nearly the whole output, leaving very little for export to other countries. The estimated distribution during 1939-40 was as follows: Australia, 677,000 tons; New Zealand, 404,000 tons; United Kingdom, 40,000, and other countries, 126,000 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 £284,405 at 31st March, 1940.

At the 31st December, 1939, there were 1,733 Native inhabitants, who speak a language akin to that of the Gilbert Islanders. In addition there were 44 Natives of other Pacific Islands, and 1,512 Chinese, who have been introduced for the working of the phosphate-deposits. Europeans numbered 171, the total population being thus 3,460.

Revenue and expenditure and trade of the Nauru Administration for each of the last five years were—

Year.Revenue.Expenditure.Exports.Imports.
 £.£££
193523,48720,666474,393157,247
193624,90623,989469,607154,940
193753,34329,311513,989144,454
193829,42830,827546,683272,256
193933,08429,391605,974170,624

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, 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) of whale-oil. The owner or master of a vessel engaged in whaling or used as a floating whale-factory is liable to a fine 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.

The Whaling Industry Act, 1925, 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.

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 318t March.Year ended 31st December.Year ended 31st March.Overseas Passenger Arrivals.*Overseas Passenger Departures.*
* Excluding “through” passengers, and tourists on cruising liners.
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
1899796,359780,530789,838779,04918,99615,898
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
1907977,215961,598966,836949,65039,81223,877
19081,008,373985,320992,794973,45937,61823,853
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
19221,318,8841,301,2511,305,1201,283,54641,12830,396
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
19331,547,1241,538,0281,539,5901,530,11918,71321,308
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
19391,641,6391,624,7141,628,5121,611,36242,64837,685
1940..1,640,901..1,633,44731,43225,404

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.
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
193928,83317,11514,15889818.7311.129.2031.14

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.
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
1918193,34526,3716,0648,3842,2832,7471,3362,226
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
1928219,95026,6986,67115,0383,8806,0613,4304,802
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
1939205,26627,55810,40318,1765,4018,4814,9485,649

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 year 1914 onwards.
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
190425,67228.905270.595190.587010.78
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
193952,28832.111,4890.915710.358960.55

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.
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
1893-94242,7374,891,69520.15376,64612,153,06832.27
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
1916-17217,7435,051,22723.19177,5245,371,48630.29
1917-18280,9786,807,53624.23156,2024,942,75931.64
1918-19208,0306,567,62931.57172,6866,884,60939.87
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
1939-40257,5328,010,08931.1049,7512,081,10641.83

LIVE-STOCK.

Year.Horses.Total Cattle.Dairy Cows.Sheep.Pigs.Goats.
* Not enumerated.
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*
1897249,8131,138,067300,21919,687,954209,834*
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*
1940271,5814,533,0321,850,07131,062,875714,001*

TRADE.

Year.Excluding Specie.*Specie.
Exports.Imports.Exports.Imports.
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.££
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
190720,061,6412015016,539,70717227,316763,154
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
191633,281,0572819225,045,4032115105,8801,293,880
191731,517,072278820,742,130181170,475177,135
191828,480,5782414124,131,7922018835,610102,215
191953,907,925454030,309,167258362,150302,531
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
193958,049,31635121149,387,18330662,79525,364

TRADEcontinued.

Year.Exports of New Zealand Produce.
Wool.Frozen Meat.*Tallow.
QuantityValue.Quantity.Value.Quantity.Value.
* Includes exports of chilled beef.
 Lb.£Cwt.£Cwt.£
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
1908162,518,4815,332,7812,120,3033,188,515372,520481,335
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
1939277,391,71311,665,9095,906,25115,390,801582,740456,527

TRADEcontinued.

Year.Exports of New Zealand Produce.
Butter.Cheese.Gold.
QuantityValue.Quantity.Value.Quantity.Value.
 Cwt.£Cwt.£Oz.£
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
19392,443,29716,111,2071,677,2575,869,890176,3701,628,526

TRADEcontinued.

Year.Exports of New Zealand Produce.
Kauri-gum.Phormium Fibre.Timber (sawn and hewn).
QuantityValue.Quantity.Value.Quantity.Value.
 Tons.£Tons.£Sup.ft.£
18897,519329,59017,084361,18242,568,600176,608
18907,438378,56321,158381,78942,098,863181,689
18918,388437,05615,809281,51442,824,365182,431
18928,705517,67812,793214,54222,860,55187,581
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
19392,316112,6501,55124,73913,172,312155,652

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.

* In the debt tables the whole debt la shown (in pounds) at its nominal amount, that portion domiciled overseas not being converted to its New Zealand currency equivalent.

† 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, 1932-38, which was paid off in 1934-35.

 ££s.d.£££s.d.
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
1940322,907,536196159404,166322,501,881196109

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.
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 1925-20 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 1938-39), and social security taxation receipts (1939-40), were not paid into the Consolidated Fund.
 ££££££
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
191710,549,6547,805,54018,355,19414,058,7701,105,8371,775,513
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
194032,808,8885,165,27137,974,15937,654,82011,961,48311,241,226

LOCAL AUTHORITIES.*

Year ended 31st March,Receipts.Payments.Total Gross Indebtedness
Revenue.Other Receipts.Totals.
From Rates.From other Sources.
 ££££££
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
19285,615,6729,786,2715,667,65121,069,59422,423,16766,404,172
19295,844,4959,583,5766,042,00721,470,07821,300,02469,294,619
19306,010,98710,746,7315,495,42722,253,14522,061,08871,207,539
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
19396,971,55011,750,6266,254,79224,976,96825,078,93568,206,674

* Exclusive of Hospital Boards.

LOCAL AUTHORITIES.*—LOAN INDEBTEDNESS.

(Exclusive of Inscribed Debt.)

As at 31st March,Counties.Boroughs.Harbour Boards.Electric-power Districts.Other.Totals.
 ££££££
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
19243,997,00922,075,0039,173,4844,740,8654,237,16841,223,529
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
19396,106,54430,600,6549,746,94012,471,3157,752,76266,678,215

* Exclusive of Hospital Boards.

† See note at foot of p. 861.

TRADING BANKS (AVERAGE OF FOUR QUARTERS).

Year.Assets.Liabilities.
Advances.Coin 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 liability for the outstanding notes of the trading banks as from 1st August, 1936.

 ££££££
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
190515,496,3954,006,10821,770,5251,468,97720,545,60122,144,168
190616,649,3294,593,95423,829,9331,574,25422,422,24324,143,008
190718,514,0454,836,71826,584,2391,644,64523,517,11125,334,348
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
191931,717,7208,017,15948,615,2097,087,54550,489,44457,861,393
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
192750,032,2037,874,97166,626,6766,510,01848,294,09656,321,397
192846,179,4637,511,83362,819,4856,374,04353,799,22161,850,595
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*63,417,29969,259,271
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
193954,745,801746,801*96,108,63767,279,45175,978,460

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.

  £££££
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
1893122,6842,386,0902,322,522263,568114,7603,241,998
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
1909359,7149,611,1209,499,320111,800395,80412,66,898
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
1917566,35117,106,52914,461,1092,645,360947,82129,196,390
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
1935-36840,67125,619,77523,533,5962,086,1791,40645952,916,352
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
1939-40960,56525,151,28729,462,838−311,5511,603,46758,002,003

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.

    £ ££
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
1908175,440,11141,358,913488,0842,050,0841,222,280383,472514,642
1909186,926,33742,561,041538,7402,307,5931,414,752441,099566,990
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
1919247,143,18335,498,203690,2914,604,0592,197,520646,4111,068,489
1920259,743,23437,859,247699,6745,276,7762,280,219691,2011,352,677
1921253,767,13138,680,982609,3834,850,8202,377,622723,2541,499,304
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
1927297,478,29447,089,652803,5354,995,0903,614,2171,015,2131,439,587
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
1930313,148,05847,644,098833,5055,069,0293,907,2881,123,8071,582,550
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
1938316,309,34144,123,535848,0504,802,2933,835,4001,485,4262,033,488
1939312,603,57541,738,112911,4845,094,3643,374,8521,323,3981,938,607

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 1925-26, figures relate to railway operation only.

‡ Capital cost written down by £10,400,000.

  £  Tons.££
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
18972,01815,577,3923,409,2184,439,3872,461,1271,286,158789,054
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
19223,02139,309,0978,717,20514,262,4406,321,3516,643,5916,237,727
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
19403,39063,059,18813,366,7988,283,0677,673,9508,761,6377,943,120

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.
  ££££
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
1938287118,69864,511230,46330,793
193926782,31844,171225,49029,950

Chapter 49. SECTION XLIX.—OFFICIAL.

GOVERNOR-GENERAL OF NEW ZEALAND.

His Excellency Marshal of the Royal Air Force, Sir Cyril Louis Norton Newall, G.C.B., O.M., G.C.M.G., C.B.E., A.M.

Military Secretary and Comptroller of the Household—Wing Commander Humphrey Charles Bevan, Royal Air Force Volunteer Reserve.

Official Secretary—D. E. Fouhy, Esq.

Aide-de-Camp—Captain Christopher John Holland-Martin, Royal Fusiliers.

Honorary Aides-de-Camp—Naval: Captain A. B. Fanshawe, R.N.; Captain E. Rotherham, R.N. Military: Lieutenant-Colonel (temp. Colonel) E. T. Rowllings; Lieutenant-Colonel (temp. Colonel) A. E. Conway, O.B.E.; Lieutenant-Colonel C. S. White, V.D.; Major J. G. Jeffery, M.C., V.D. Air: Wing Commander E. G. Olson; Squadron Leader J. Seabrook, A.F.C.; Squadron Leader M. R. Calder; Flight Lieutenant R. B. Bannerman, D.F.C.

His Excellency assumed office on the 22nd February, 1941.

Information concerning the Right Honourable Viscount Galway, P.C., G.C.M.G., D.S.O., O.B.E., who held the office of Governor-General from 12th April, 1935, to 3rd February, 1941, will be found in the 1940 number of the Year-Book. The Right Honourable Sir Michael Myers, P.C., G.C.M.G., Chief Justice, acted as Administrator from 4th February to 21st February, 1941.

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., 186528 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.G3 Sept., 18848 Oct., 1887.
25. AtkinsonSir Harry Albert Atkinson, K.C.M.G.8 Oct., 188724 Jan., 1891.
26. BallanceJohn Balance24 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.
36. 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., 19351 April, 1940.
40. LabourHon. Peter Fraser1 April, 194030 April, 1940.
41. LabourRt. Hon. Peter Fraser, P.C.30 April, 1940...

EXECUTIVE COUNCIL, 1941.

His Excellency the GOVERNOR-GENERAL.

Right Hon. P. Fraser, P.C., Prime Minister, Minister in Charge of Police, Legislative, Electoral, Audit, and High Commissioner's Departments.

Hon. W. NASH, Minister of Finance, Minister of Customs, Minister of Stamp Duties, and Minister in Charge of Land and Income Tax, Public Service, Superannuation, and Census and Statistics Departments.

Hon. D. G. SULLIVAN, Minister of Industries and Commerce, Minister of Supply and Munitions, and Minister in Charge of Scientific and Industrial Research Department.

Hon. H. G. R. MASON, Minister of Education, Attorney-General, Minister of Justice, and Minister in Charge of Prisons, Public Trust Office, and Patents, Designs, Trade-marks, and Copyright Office.

Hon. H. T. ARMSTRONG, Minister of Public Works, and Minister in Charge of Roads and Public Buildings, Housing, and State Advances.

Hon. R. SEMPLE, Minister of Railways, Minister of Transport, Minister of National Service, Minister of Marine, and Minister in Charge of Inspection of Machinery.

Hon. W. E. PARRY, Minister of Internal Affairs, Minister of Social Security, and Minister in Charge of Registrar-General's Office.

Hon. P. C. WEBB, Minister of Labour, Minister of Mines, Postmaster-General and Minister of Telegraphs, and Minister in Charge of Printing and Stationery Department.

Hon. F. JONES, Minister of Defence, and Minister in Charge of War Pensions.

Hon. F. LANGSTONE, Minister of Lands, Commissioner of State Forests, Minister of External Affairs, Native Minister, Minister for the Cook Islands, and Minister in Charge of Native Trust and Valuation Departments, Land for Settlements, Scenery Preservation, and Tourist and Health Resorts.

Hon. D. WILSON, M.L.C., Minister of Immigration, and Minister in Charge of Broadcasting, Government Life Insurance, and State Fire Insurance Departments, Associate Minister of National Service.

Hon. J. G. BARCLAY, Minister of Agriculture, and Minister of Marketing.

Hon. A. H. NORDMEYER, Minister of Health, and Minister in Charge of Mental Hospitals, Friendly Societies, and National Provident Fund Departments.

Hon. P. K. PAIKEA (representing the Native race).

Clerk of the Executive Council—C. A. Jeffery, C.M.G.

On 16th July, 1940, a special cabinet was formed to deal exclusively with matters relating to the war effort. For this purpose, the Hon. A. Hamilton and the Right Hon. J. G. Coates, P.C., M.C., were appointed to the Executive Council.

LABOUR MINISTRY.

Name and Office.From

Resigned portfolio, 21st January, 1941.

†Resigned portfolio, 12th June, 1940.

Eight Hon. Peter Fraser, P.C.— 
  Prime Minister30th April, 1940.
Walter Nash— 
  Minister of Finance30th April, 1940.
  Minister of Customs30th April, 1940.
  Minister of Stamp Duties30th April, 1940.
  Minister of Marketing30th April, 1940.*
Daniel Giles Sullivan— 
  Minister of Industries and Commerce30th April, 1940.
  Minister of Railways30th April, 1940.*
  Minister of Supply30th April, 1940.
Henry Greathead Rex Mason— 
  Minister of Education30th April, 1940.
Attorney-General30th April, 1940.
  Minister of Justice30th April, 1940.
Hubert Thomas Armstrong— 
  Minister of Health30th April, 1940.*
  Minister of Public Works21st January, 1941.
Robert Semple— 
  Minister of Public Works30th April, 1940.*
  Minister of Transport30th April, 1940.
  Minister of Marine30th April, 1940.
  Minister of National Service13th June, 1940.
  Minister of Railways21st January, 1941.
William Edward Parry— 
  Minister of Internal Affairs30th April, 1940.
Patrick Charles Webb— 
  Minister of Mines30th April, 1940.
  Minister of Labour30th April, 1940.
  Postmaster-General and Minister of Telegraphs30th April, 1940.
Frederick Jones— 
  Minister of Defence30th April, 1940.
William Lee Martin— 
  Minister of Agriculture30th April, 1940.*
Frank Langstone— 
  Minister of Lands30th April, 1940.
  Commissioner of State Forests30th April, 1940.
  Minister of External Affairs30th April, 1940.
  Native minister30th April, 1940.
  Minister for the Cook Islands30th April, 1940.
David Wilson, M.L.C.— 
  Minister of Immigration30th April, 1940.
Dr. David Gervan McMillan— 
  Minister of Marine12th June, 1940.*
James Gillispie Barclay— 
  Minister of Agriculture21st January, 1941.
  Minister of Marketing21st January, 1941.
Rev. Arnold Henry Nordmeyer— 
  Minister of Health21st January, 1941.
Parairea Karaka Paikea— 
Member of Executive Council without portfolio21st January, 1941.

NOTE.—The foregoing ministers, with the exception of the last four, were also members of the two previous Ministries, the first assuming office on 6th December, 1935, and the second on 1st April, 1940.

WAR CABINET.

The personnel of the War Cabinet (formed on 16th July, 1940) is: Right Hon. P. Fraser, P.C., Prime Minister; Hon. W. Nash, Minister of Finance; Hon. F. Jones, Minister of Defence; Hon. A. Hamilton; and Right Hon. J. G. Coates, P.C., M.C.

PARLIAMENTARY SESSIONS.

[For earlier Parliaments and sessions refer to pp. 59-60 of the 1930 and p. 986 of the 1940 editions 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.
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, 19391 Feb., 1940 
30 May, 194016 Dec., 1940 
12 Mar., 1941  

LEGISLATIVE COUNCIL.

ROLL OF MEMBERS OF THE LEGISLATIVE COUNCIL OF NEW ZEALAND, 31ST JANUARY, 1941.

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. MarkWellington9 Mar., 1936.
Brindle, Hon. ThomasWellington9 Mar., 1936.
Bums, Hon. ArchibaldAuckland22 June, 1934.
Campbell, Hon. ArchibaldOtago15 Dec., 1939.
Connelly, Hon. MichaelOtago9 Mar., 1936.
Cotter, Hon. JamesAuckland9 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.
Grounds, Hon. WilliamAuckland15 July, 1940.
Hanan, Hon. Josiah AlfredOtago15 July, 1940.
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.Canterbury22 June, 1934.
Robbins, Hon. Benjamin ConradAuckland9 Mar., 1936.
Rogers, Hon. William JamesWellington15 July, 1940.
Ryall, Hon. JohnNelson15 July, 1940.
Statham, Hon. Sir Charles Ernest, Kt.Wellington9 Mar., 1936.
Waite, Hon. Fred, D.S.O.Otago22 June, 1934.
Ward, Hon. Vincent AubreyWellington22 June, 1934.
Wilson, Hon. DavidWellington22 Sept., 1937.

HOUSE OF REPRESENTATIVES.

ROLL OF MEMBERS OF THE HOUSE OF REPRESENTATIVES, 31ST JANUARY, 1941.

Speaker—Hon. W. E. BARNARD. Chairman of Committees—R. MCKEEN. Clerk of the House: T. D. H. HALL, C.M.G., LL.B.

Name.Electoral District.
For European Electorates. 
Allen, John ManchesterHauraki.
Anderton, William TheophilusEden.
Armstrong, Hon. Hubert ThomasChristchurch East.
Atmore, HarryNelson.
Barclay, Hon. James GillispieMarsden.
Barnard, Hon. William EdwardNapier.
Barrell, Charles AbrahamHamilton.
Bodkin, William AlexanderCentral Otago.
Boswell, Charles WallaceBay of Islands.
Broadfoot, Walter JamesWaitomo.
Burnett, Thomas DavidTemuka.
Carr, Rev. Clyde LeonardTimaru.
Carr, PeterAuckland West
Chapman, Charles HenryWellington North.
Coates, Right Hon. Joseph Gordon, P.C., M.C.Kaipara.
Cobbe, Hon. John GeorgeManawatu.
Coleman, David WilliamGisborne.
Combs, Harry ErnestWellington Suburbs.
Cotterill, Joseph Bernard FrancisWanganui.
Cullen, Edward LutterellHawke's Bay.
Denham, William Mortimer ClarenceInvercargill.
Dickie, Harold GaltPatea.
Doidge, Frederick WiddowsonTauranga.
Endean, William PhillipsRemuera.
Forbes, Right Hon. George William, P.C.Hurunui.
Eraser, Right Hon. Peter, P.C.Wellington Central.
Frost, Rev. Frederick LedgerNew Plymouth.
Goosman, William StanleyWaikato.
Gordon, Edward Brice KillenRangitikei.
Grigg, Arthur Nattle, M.C.Mid-Cantor-bury.
Hamilton, Hon. AdamWallace.
Hargest, Brigadier James, D.S.O., M.C.Awarua.
Hodgens, JosephPalmerston North.
Holland, Sidney GeorgeChristchurch North.
Hultquist, Axel GordonBay of Plenty.
Jones, Hon. FrederickDunedin South.
Kidd, David CampbellWaitaki.
Kyle, Herbert Seton StewartRiccarton.
Langstone, Hon. FrankWaimarino.
Lee, John Alexander, D.C.M.Grey Lynn.
Lowry, Leonard GeorgeOtaki.
Lyen, William JohnWaitemata.
McCombs, Terence HendersonLyttelton.
Macdonald, Thomas LachlanMataura.
Macfarlane, Robert MafekingChristchurch South.
McKeen, RobertWellington South.
McMillan, Dr. David GervanDunedin West.
Martin, Hon. William LeeRaglan.
Mason, Hon. Henry Great-head RexAuckland Suburbs.
Massey, John NormanFranklin.
Meachen, Edwin PurcellMarlborough.
Moncur, Alexander FrancisRotorua.
Munro, James WrightDunedin North
Nash, Hon. WalterHutt.
Neilson, PeterDunedin Central.
Nordmeyer, Hon. Arnold HenryOamaru.
O'Brien, JamesWestland.
Osborne, Arthur GeorgeOnehunga.
Parry, Hon. William EdwardAuckland Central.
Petrie, Charles RobertOtahuhu.
Poison, William JohnStratford.
Ransom, Hon. Sir Ethelbert Alfred, K.C.M.G.Pahiatua.
Richards, Arthur ShaptonRoskill.
Roberts, BenjaminWairarapa.
Robertson, JohnMasterton.
Roy, James Alexander McLeanClutha.
Schramm, Frederick WilliamAuckland East.
Scrapie, Hon. RobertWellington East.
Skinner, Clarence FarringdonMotueka.
Stewart, Mrs. Catherine Campbell SwordWellington West.
Sullivan, Hon. Daniel GilesAvon.
Thorn, JamesThames.
Webb, Hon. Patrick CharlesBuller.
Wilkinson, Charles AndersonEgmont.
Williams, Charles MorganKaiapoi.
For Maori Electorates. 
Ngata, Hon. Sir Apirana Turupa, Kt.Eastern Maori.
Paikea, Hon. Paraire KarakaNorthern Maori.
Ratana, Haami TokouruWestern Maori.
Tirikatene, Eruera TihemaSouthern Maori.

JUDICIARY.

Judges of the Supreme Court and Court of Appeal, 1940.— 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, 1936).—Hon. H. F. Johnston.

Judges of the Arbitration Court.—A. Tyndall, W. J. Hunter.*

Judge of the Compensation Court.—P. J. O Regan.

HONOURS.

Since the preceding issue of the Year-Book the following honours have been conferred by His Majesty the King (in July, 1940), for services rendered to the Dominion of New Zealand:—

MILITARY DIVISION.

Knight Commander of the British Empire: Major-General J. E. Duigan, C.B., D.S.O. Commander of the British Empire: Colonel O. H. Mead, D.S.O., A.D.C.; Group-Captain L. M. Isitt, A.D.C. Officer of the British Empire: Lieutenant-Colonel A. E. Conway; Major J. G. McKay, V.D.; Wing Commander H. B. Burrell; the Reverend G. T. Robson, M.C.; Lieutenant H. A. Haynes, R.N. (Retired). Member of the British Empire: A. J. Harvey, Commissioned Gunner, R.N.; Flight Lieutenant I. E. Rawnsley; Flying Officer A. T. Giles; Squadron Sergeant-Major C. E. Howell; Staff Sergeant-Major W. L. Glanville; Regimental Sergeant-Major F. A. Wetherall; Warrant Officer J. E. Duncan.

President of Price Tribunal.

GOVERNMENT DEPARTMENTS.

LIST OF DEPARTMENTS OF THE NEW ZEALAND GOVERNMENT, WITH TITLES AND NAMES OF PERMANENT HEADS, DECEMBER, 1940.

Department.Permanent Head.
Title.Name.
AgricultureDirector-GeneralA. H. Cockayne, I.S.O.
AirChief of Air Staff and First Air Force Member of the Air BoardAir Commodore H. W. L. Saunders, M.C., D.F.C., M.M., R.A.F.
 Air SecretaryT. A. Barrow.
ArmyChief of the General StaffMajor-General Sir J. E. Duigan, K.B.E., C.B., D.S.O.
 Army SecretaryF. B. Dwyer.
AuditController and Auditor-GeneralC. G. Collins.
BroadcastingDirectorJ. Shelley, M.A. (Cantab.).
Census and StatisticsGovernment StatisticianJ. W. Butcher.
Crown LawSolicitor-GeneralH. H. Cornish, K.C., M.A., LL.M.
CustomsComptrollerE. D. Good.
EducationDirectorC. E. Beeby, M.A., Ph.D.
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 IndustryCommissionerG. A. Pascoe.
 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.
MarinoSecretaryL.B. Campbell, A.M.Inst.C.E.
Mental HospitalsDirector-GeneralT. G. Gray, C.M.G., M.B. Ch.B. (Aberd.), M.P.C.
MinesActing-Under-SecretaryC. H. Benney.
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.
National ServiceDirectorJ S. Hunter.
NativeUnder-Secretary and Native TrusteeO. N. Campbell.
NavyChief of the Naval Staff and First Naval MemberCommodore W. E. Parry, C.B., R.N.
 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 SuperannuationActing-SecretaryR. Sinel.
Public TrustPublic TrusteeE. O. Hales.
Public WorksEngineer-in-Chief and Under-SecretaryW. L. Newnham, M.Inst.C.E.
RailwaysGeneral ManagerE. Casey, A.M.Inst.C.E.
Scientific and Industrial ResearchSecretaryE. Marsden, C.B.E., D.Sc.
Dominion LaboratoryDirectorR. L. Andrew, 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 Corporation of New ZealandJoint Managing DirectorsA. D. Park, C.M.G.
T. N. Smallwood.
 ManagerG. E. Miller.
Housing Construction BranchActing-DirectorG. W. Albertson.
State Fire and Accident InsuranceGeneral ManagerJ. H. Jerram, I.S.O.
State ForestDirector and SecretaryA. R. Entrican, A.M. Inst.C.E.
TransportCommissionerG. L. Laurenson, A.M.Inst.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 same 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............
II490516................
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 hold 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.

  1. 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 set out for the Professional Division.

  2. 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.

  3. 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 bad 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, 1939, was 10,639, and the aggregate of annual salaries as at that date was £3,146,542. The numerical strength of the permanent staff at 1st April, 1940, was 11,664. The number of temporary employees, other than workmen, &c., in these Departments, as at 1st April, 1940, was 8,610, of whom 1,713 were shorthand-typists.

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 school-teachers. 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 Economic Adviser—R. M. Campbell, M.A., LL.B., Ph.D.

Stores, Indent, and Trade Officer.—C. Hoskin.

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—Now 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.

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. Ackland, (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, Government Life Insurance Building, Wellington. H.M. Trade Commissioner: R. Boulter, C.M.G., T. and G. Buildings, Grey Street (P.O. Box 369), Wellington.

Canada.—High Commissioner: Dr. W. A. Riddell, Government Life Insurance Building, Wellington. Trade Commissioner; W. F. Bull, Yorkshire House, Shortland Street, Auckland.

Australia.—Trade Commissioner: C. E. Critchley, M.B.E., D.I.C. Building, Wellington.

FOREIGN CONSULS.

CONSULS OF FOREIGN COUNTRIES RESIDING IN, OR WITH JURISDICTION OVER, NEW ZEALAND, DECEMBER, 1940.

Belgium.—Consul-General (with jurisdiction over New Zealand and Western Samoa): Armand Nihotte, Wellington. Consul: A. M. Ferguson, Auckland. Hon. Consul: Sir 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: Count Erik Hans Schack, Sydney. Consul for South Island: H. D. Acland, Christchurch. Consul: Stronach Paterson, Wellington. Vice-Consuls: W. Perry, Hokitika; C. G. Macindoe, Auckland.

Finland.—Consul (with jurisdiction over New Zealand): Paavo Simelius, Sydney. Vice-Consuls (honorary): C. E. Tudehope, Auckland; H. J. Buck, Wellington; Vaino Sareìius, 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.

Japan.—Consul-General: (Vacant.) 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, Sydney. Vice-Consuls: M. F. Vigeveno, Wellington; G. N. Francis, Christ-church. 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. Honorary 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); 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. Consul-General: Professor Kazimierz Wodzicki, Wellington.

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. Consul: J. T. Martin, Wellington. Vice-Consuls: J. T. E. 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: Inayotullah Cemal Ozkaya, London. Honorary Consul: E. G. Cowell, Auckland.

United States of America.—Consul-General: (Vacant.) Consuls: J. G. Groeninger, Auckland; R. English, Wellington. Vice-Consuls: L. A. Bachelder (honorary), Auckland; J. E. Horner, Wellington. Consular Agents: H. P. Bridge, Christchurch; H. Reeves, Dunedin.

Uruguay.—In charge of consulate: F. D. Burnett, Wellington.

Yugoslavia.—Honorary Consul: John Totich, Auckland.

Appendix A. APPENDICES.

(a) 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 To 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 Te 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 Hoke's war. Native hostilities near Wellington. To 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 Ngaruawahia. 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 Te 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 Settlors 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 paid. 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.

1916. 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. Powers of Arbitration Court restored. 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. 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. 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. 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. AV. Nash in connection with loan conversions. North Island East Coast Railway opened for passenger traffic as far as Wairoa. Declaration of war with Germany. Emergency war legislation passed and Ministry of Supply established. Recruitment for 2nd New Zealand Expeditionary Force. Reserve Bank Amendment Act passed, giving greater control to Minister of Finance. Mine disaster at Huntly, eleven fatalities. Imposition of petrol restrictions. Visit of Hon. P. Eraser to London in connection with Empire war effort. Arrangement for purchase of primary products by Imperial Government. New Zealand Centennial Exhibition opened 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. Petrol restrictions lifted for holiday period.

1940. One-hundredth anniversary of the proclamation of British sovereignty over New Zealand; also of first organized settlement. Numerous celebratory functions held to mark the Centennial year. The United Kingdom Government represented at official Centennial functions by the Marquis of Willingdon. Departure of First Echelon of Second New Zealand Expeditionary Force, followed later by further echelons and reinforcements. Bank-notes of new design issued. Welcome given to crew of H.M.S. “Achilles” on return to New Zealand after River Plate battle. Reimposition of petrol restrictions; subsequent adjustments made during year. Establishment of separate Compensation Court to administer the Workers' Compensation Act, 1922. Arrival of Dr. W. A. Riddell as first High Commissioner for Canada. Large sums lent to Government free of interest for the duration of the war. Death of the Prime Minister, the Right Hon. M. J. Savage, P.C.; succeeded in office by Hon. P. Fraser. Severe flooding in Taieri district. Universal superannuation became operative. Trans-Tasman air service commenced. New dental clinic and training centre opened in Wellington. Centennial Exhibition closed. Electrification of the Paekakariki-Wellington section of Main Trunk Railway. Auckland West by-election. Work on Paeroa-Pokeno line temporarily abandoned. Reserve Bank rediscount rate lowered to 2 per cent. National register of man-power compiled. First secret session of New Zealand Parliament. Declaration of war on Italy. R.M.S. “Niagara” sunk off New Zealand coast by enemy mine. Campaign for salvage of waste materials launched. Increases in taxation to meet war expenditure. Finance Emergency Regulations issued, controlling capital utilization and flow of capital to and from overseas. Death of Sir Walter Carncross, former Speaker of the Legislative Council. Hon. P. Fraser appointed a member of the Privy Council. National Savings Act passed. Special War Cabinet of five members formed. Cessation of voluntary recruiting. Wages payable under awards of the Court of Arbitration increased by 5 per cent. Mortgages Extension Emergency Regulations issued. Proclamation of enrolment of First Division of the General Reserve under National Service Emergency Regulations. Economic conference called to consider the stabilization of costs, wages, and prices. First party of British children arrived under evacuation scheme. First flight of South Pacific air service between Honolulu and Auckland. Departure of New Zealand delegation for Empire Economic Conference at Delhi. Cost-of-living bonus granted to/Civil servants. Death of Mr. A. E. Jull, M.P. for Waipawa. Issue of national war loan. Ballots for military service—territorial and overseas. Appointment of Marshal of the Royal Air Force, Sir Cyril Newall, as Governor-General announced. National savings scheme inaugurated by opening of national savings accounts and issuing of national savings bonds. Excess Profits Tax Act passed. Derailment of “Limited” express at Mercer, two fatalities. Coal-mine explosion at Ten Mile, near Greymouth, five fatalities. First deregistration of a union under Industrial and Conciliation Amendment Act, 1939. Number of vessels became victims of enemy raiders in Pacific. Island of Nauru bombarded by enemy raider.

(b) 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.

BIBLIOGRAPHY AND LIBRARIES.

ANDERSEN, Johannes Carl (editor): Annals of New Zealand Literature. Wellington. Authors' Week Committee. 1936.

ANDERSEN, Johannes Carl (editor): 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.

SCHOLEFIELD, Guy Hardy: Copyright publications received in the General Assembly Library. (Annual.) Wellington. Government Printer. 1940.

SERLE, Percival: Bibliography of Australasian Poetry and Verse. Melbourne. University Press. 1925.

TAYLOR, Clyde Romer Hughes: A select list of books relating to New Zealand and certain Pacific islands, 1912-1939. Bibliographical List No. 6 of the Alexander Turnbull Library, Wellington. 1940. (A separated reprint of this Year-Book list.)

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.

ELDER, John Rawson: The History of the Presbyterian Church of New Zealand, 1840-1940. Christchurch. Presbyterian Bookroom. 1940.

GREY, Sir George: Polynesian Mythology. New edition. Christchurch. Whitcombe & Tombs. 1929.

POMARE, Sir Maui, and James Cowan: Legends of the Maori. 2 vols. Wellington. H. H. Tombs. 1930. (Vol. 2 in 1934.)

WARREN, Alwyn K: Prayers in Time of War. Christchurch. Caxton Press. 1940.

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.

GARDNER, Roy: The Basis of Prosperity in New Zealand. Dunedin. Coulls, Somerville, Wilkie. 1939.

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.

MILNER, Tan Frank George: New Zealand's Interests and Policies in the Far East. New York. Institute of Pacific Relations. 1940.

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.

REEVES, William Pember: State Experiments in Australia and New Zealand. 2 vols. London. Allen & Unwin. 1925.

SUTCH, William Ball: Recent Economic Changes in New Zealand. Auckland. Whitcombe & Tombs. 1936.

SUTCH, William Ball: Price fixing in New Zealand. New York. Columbia University Press. 1932.

SUTHERLAND, Allan: Numismatic History of New Zealand. New Plymouth. Avery. 1939.

WEBB, Leicester Chisholm: Government in New Zealand. Wellington. Department of Internal Affairs. 1940.

WILSON, Ethel Wilson: Land Problems of the Forties. Dunedin. Reed. 1936.

WOOD, Frederick Lloyd Whitfeld: New Zealand in the World. Wellington. Department of Internal Affairs. 1940.

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.

MARAK, 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. 1940.

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.

BEAGLEHOLE, John Cawte: The University of New Zealand: an historical study. Wellington. Council for Educational Research. 1937.

BEEBY, Clarence Edward: The Education of the Adolescent. Wellington. Council for Educational Research. 1937.

BEEBY, Clarence Edward: Intermediate Schools of New Zealand. Wellington. Council for Educational Research. 1938.

BUTCHERS, Arthur Gordon: The Education System. Auckland. National Printing Co. 1932.

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.

KANDEL, Isaac Leon: 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.

MCQUEEN, Henry Charles: Vocational Guidance in New Zealand. Wellington. Council for Educational Research. 1940.

NICOL, John: Technical Schools of New Zealand. Wellington. Council for Educational Research. 1940.

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. Auckland. Whitcombe & Tombs. 1939.

GARDINER, Hugh: Skyways of Maoriland. Wellington. McKenzie, Thornton, & Cooper. 1934.

PHILATELIC, 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.

SMYTH, Patrick: Te Reo Maori, a guide to the study of the Maori language. Auckland. Whitcombe & Tombs. 1939.

WALL, Arnold: The Mother-tongue in New Zealand. Wellington. Reed. 1936.

WALL, Arnold: New Zealand English. Auckland. Whitcombe & Tombs. 1938.

WILLIAMS, Herbert William: A Dictionary of the Maori Language. Wellington. Government Printer. 1932.

WILLIAMS, William Leonard: First Lessons in Maori. Tenth edition. Christchurch. Whitcombe & Tombs. 1940.

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. Blackwood. 1925.

GUTHRIE-SMITH, William Herbert: Mutton-birds and Other Birds. Christchurch. Whitcombe & Tombs. 1914.

GUTHRIE-SMITH, William Herbert: Sorrow and Joys of a New Zealand Naturalist. Lunedin. Reed. 1936.

HUDSON, George Vernon: Beetles of New Zealand. Wellington. Ferguson & Osborn. 1934.

HUDSON, George Vernon: 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.

PHILLIPS, William John: The Fishes of New Zealand, vol. 1. New Plymouth. Thos. Avery. 1940.

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.

COCKAYNE, Leonard: New Zealand Plants and their Story. 3rd edition. Wellington. Government Printer. 1927.

COCKAYNE, Leonard: The Vegetation of New Zealand. 2nd edition. Leipzig. Engelmann. 1928.

DOBBIE, Herbert B.: New Zealand Ferns. 3rd edition. Wellington. Whitcombe & Tombs. 1931.

LAING, Robert M., and Ellen W. Blackwell: Plants of New Zealand. 4th edition, revised and enlarged. Christchurch. Whitcombe & Tombs. 1940.

OLIVES, 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.

ANDERSEN, Johannes Carl: Maori String Figures. Board of Maori Ethnological Research memoir, vol. 2. Wellington. Ferguson & Osborn. 1927.

BEATTIE, Herries: Tikao Talks. Traditions and Tales. Wellington. Reed. 1939.

BEST, Elsdon: Fishing Methods and Devices of the Maori. Dominion Museum Bulletin No. 12. Wellington. Government Printer. 1929.

BEST, Elsdon: Games and Pastimes of the Maori. Dominion Museum Bulletin No. 8. 1925.

BEST, Elsdon: The Maori. 2 vols. Wellington. Polynesian Society. 1924.

BEST, Elsdon: The Maori As He Was. Wellington. Government Printer. 1925.

BEST, Elsdon: The Maori Canoe. Dominion Museum Bulletin No. 7. Wellington. Government Printer. 1925.

BEST, Elsdon: Maori Storehouses and Kindred Structures. Dominion Museum Bulletin No. 5. Wellington. Government Printer. 1916.

BEST, Elsdon: 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.

BEST, Elsdon: Maori Mythology and Religion. Dominion Museum Bulletin No. 10. Wellington. Government Printer. 1922.

BEST, Elsdon: The Maori System of Agriculture. Dominion Museum Bulletin No. 9. Wellington. Government Printer. 1925.

BEST, Elsdon: The Pa Maori. Dominion Museum Bulletin No. 6. Wellington. Government Printer. 1927.

BEST, Elsdon: Polynesian Voyagers. Maori Schools of Learning. (Dominion Museum Monographs Nos. 5 and 6.) Wellington. Government Printer. 1923.

BEST, Elsdon: Tuhoe, the Children of the Mist. 2 vols. Wellington. Polynesian Society. 1925.

BEST, Elsdon: The Whare Kohi (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.

BUCK, Peter Henry: Vikings of the Sunrise. New York. Stokes. 1938.

BUICK, Thomas Lindsay: The Discovery of Dinornis. New Plymouth. Avery. 1936.

BUICK, Thomas Lindsay: The Moa Hunters. New Plymouth. Avery. 1937.

COWAN, James: The Maori Yesterday and To-day. Christchurch. Whitcombe & Tombs. 1930.

FAMOUS Maori Songs. Wellington. Charles Begg and Co. 1939.

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 (Makereti): The Old-time Maori. London. Victor Gollanez. 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.

SMITH, Stephenson Percy: Hawaiki: Lore of the Whare Wananga. (Memoir of the Polynesian Society, vols. 3 and 4.) 2 vols. New Plymouth. Avery. 1913-15.

SUTHERLAND, Ivan Lorren George: The Maori Situation. Wellington. H. H. Tombs. 1935.

SUTHERLAND, Ivan Lorren George: (editor): The Maori People To-day. A general survey. Wellington. New Zealand Institute of International Affairs. 1940.

MEDICINE.

BRYSON, Elizabeth: Learning to Live. Wellington. Reed. 1938.

FULTON, Robert: Medical Practice in Otago and Southland in the Early Days. Dunedin. Otago Daily Times. 1922.

MACLEAN, Hester: Nursing in New Zealand. History and reminiscences. Wellington. Tolan. 1932.

NEW ZEALAND Department of Health. Annual report Centennial number. Historical account of development of public health and hospital systems in New Zealand. Wellington. Government. Printer. 1939.

ROBB, Douglas: Medicine and Health in New Zealand. Auckland. Whitcombe & Tombs. 1940.

SKINNER, William Henry and H. B. Leatham: Pioneer Medical Men of Taranaki, 1834-1880. New Plymouth. Avery. 1933.

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.

BUCHANAN, R. D.: The Pastoral Industries of New Zealand. London. Philip Allan. 1935.

COPLAND, Douglas Berry: Wheat Production in New Zealand. Auckland. Whitcombe & Tombs. 1920.

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.

HILGENDORF, Frederick William: Wheat in New Zealand. Christchurch. Whitcombe & Tombs. 1939.

LESLIE, Allan. Diseases of Breeding Ewes. Wellington. Whitcombe & Tombs. 1938.

MCKAY, Richard Alexander: A History of Printing in New Zealand, 1830-1940. Wellington Club of Printing House Craftsmen. 1940.

NEW ZEALAND Department of Scientific and Industrial Research: Scientific and Industrial Research, 1927-1938. Wellington. Government Printer. 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.

ALLEY, Geoffrey Thomas: With the British Rugby Team in New Zealand, 1930. Christchurch. Simpson & Williams. 1935.

COSTON, H. E. Towner: Speckled Nomads: a tale of trout in two rivers. London. Faber and Faber. 1938.

DONNE, Thomas Edward: The Came Animals of New Zealand. London. Murray. 1924.

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. 1926.

HINTZ, O. S.: The New Zealanders in England. London. Dent. 1931.

NEW ZEALAND Alpine Journal. Annually. 1892.

NICHOLLS, Mark F.: With the All Blacks in Springbokland, 1928. Wellington. Watkins. 1928.

OLIVER, Charles Joshua, and E. W. Tindill: The Tour of the Third All Blacks, 1935. Wellington. Wright and Carman. 1936.

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.

MCCORMICK, Eric Hall: Letters and Art in New Zealand. Wellington. Department of Internal Affairs. 1940.

SMITH, Elizabeth Maisie: A-History of New Zealand Fiction from 1862. Wellington. Reed. 1939. (Excellent bibliography.)

Poetry.

ALEXANDER, William Frederick and Archibald Ernest Currie: Treasury of New Zealand Verse: new edition. Auckland. Whitcombe & Tombs. 1926.

DUGGAN, Eileen: New Zealand Poems. London. Allen & Unwin. 1940.

HARVEY, John Russell: Selected Poems. Christchurch. Caxton Press. 1940.

MARRIS, Charles A. (editor): New Zealand Best Poems of (1940). An annual publication since 1932. 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. Second series. 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. Christ-church. 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. Christchurch. Whitcombe & Tombs. 1938.

(BRODIE, John): The Little Country, by John Guthrie (pseud.). London. Nelson. 1935.

(BRODIE, John): So They Began, by John Guthrie (pseud.). London. Nelson. 1936.

COWAN, James: Hero Stories of New Zealand. Wellington. K. H. Tombs. 1935.

COWAN, James: Tales of the Maori Bush. Wellington. Peed. 1934.

COWAN, James: Tales of the Maori Coast. New Plymouth. Avery. 1930.

COWAN, James: 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.

LEE, John Alexander: The Hunted. London. T. Werner Laurie. 1936.

(LYTTELTON, Edith): Promenade, by G. B. Lancaster (pseud.). Sydney. Angus & Robertson. 1938.

MINDER, Jane: The Story of a New Zealand River. 2nd edition. Wellington. Whitcombe & Tombs. 1938.

MULGAN, John Alan Edward: Man alone. London. Selwyn & Blount. 1939.

RAWLINSON, Gloria: Music in the Listening Place. London. Cassell. 1938.

SARGESON, Frank: A Man and his Wife. Christchurch. Caxton Press. 1940.

SATCHELL, William B.: The Greenstone Door. 2nd edition. Wellington. Whitcombe & Tombs. 1935.

SCANLAN, Nelle M.: Pencarrow, London. Jarrolds. 1935.

SCANLAN, Nelle M.: Tides of Youth. London. Jarrolds. 1935.

SCANLAN, Nelle M.: Winds of Heaven. London. Jarrolds. 1935.

SCANLAN, Nelle M.: Kelly Pencarrow. London. Robert Hall. 1939.

WEST, Joyce M.: Sheep Kings. Wellington. H. H. Tombs. 1937.

WHITE, John: Revenge, a love tale of the Mount Eden tribe, edited by A. W. Reed. Wellington. Reed. 1940.

(WILKINSON, Iris Guiver): Check to Your King, by Robin Hyde (pseud.). London. Hurst & Blackett. (A life of Charles, Baron de Thierry, in the form of a novel.) 1936.

(WILKINSON, Iris Guiver): The Godwits Fly, by Robin Hyde (pseud.). London. Hurst & Blackett. 1939.

(WILKINSON, Iris Guiver): 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.

HOLCROFT, Montague Harry: The Deepening Stream. Cultural influences in New Zealand. Christchurch. Caxton Press. 1940.

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.

SEWELL, Arthur: (editor): 1840 and after. Essays. Auckland University College. 1940.

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.

ANDERSEN, Johannes Carl: Place Names of Banks Peninsula. Wellington. Government Printer. 1927.

BAUKE, William: Where the White Man Treads. New edition. Auckland. Wilson & Horton. 1928.

BEAGLEHOLE, John Cawte: Exploration of the Pacific. Oxford University Press. 1935.

BEAGLEHOLE, John Cawte: The Discovery of New Zealand. Wellington. Department of Internal Affairs. 1939.

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.

Du FAUR, Freda: The Conquest of Mount Cook. 2nd edition. London. Allen & Unwin. 1936.

GILKISON, Walter Scott: Peaks, Packs, and Mountain Tracks. Auckland. Whitcombe & Tombs. 1940.

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.

HARROP, Angus John: My New Zealand. London Jarrolds. 1939.

HERBERT, Arthur Stanley: The Hot Springs of New Zealand. London. H. K. Lewis. 1921.

MCCLYMONT, William Graham: The Exploration of New Zealand. Wellington. Department of Internal Affairs. 1940.

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.) Landon. 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.

REEVES, William Pember: 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.

TURNER, Samuel: The Conquest of the New Zealand Alps. London. T. Fisher Unwin. 1922.

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.

JENKINSON, Sidney Hartley: New-Zealanders and Science. Wellington. Department of Internal Affairs. 1940.

SCHOLEFIELD, Guy Hardy: Who's Who in New Zealand and the Western Pacific. 3rd edition. Wellington. Rangatira Press. 1932.

SCHOLEFIELD, Guy Hardy: (editor): A Dictionary of New Zealand Biography. 2 vols. Wellington. Department of Internal Affairs. 1940.

(WILKINSON, Iris Guiver): Journalese, by Robin Hyde (pseud.). Auckland. National Printing Co. 1934.

Personal.

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 Northcroft: 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.

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.

MACDONALD, Sheila: The Member for Mount Ida (Scobie Mackenzie). Wellington. Ferguson & Osborn. 1938.

PEARSON, Henry Greenleaf: Richard Cockburn Maclaurin. New York. Macmillan. 1937.

COWAN, James: Sir Donald MacLean. The story of a New Zealand statesman. Wellington. Reed. 1940.

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.

MATHEW, Felton: The Founding of New Zealand. The journals of Felton Mathew, first Surveyor-General. Edited by J. Rutherford. Auckland University College. 1940.

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. 1934.

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.

FOCKEN, Charles M.: Lord Rutherford of Nelson. Auckland. Whitcombe & Tombs. 1937.

EVE, Arthur Stewart: Rutherford, being the life and letters of the Right Hon. Lord Rutherford, O.M. Cambridge University Press. 1939.

REED, Alfred Hamish (editor): Early Maoriland Adventures of J. W. Stack. Dunedin. Reed. 1935.

REED, Alfred Hamish (editor): 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.

WILLIAMS, Frederic Wanklyn: Through Ninety Years. Notes on the lives of William and William Leonard Williams. Auckland. Whitcombe & Tombs. 1939.

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, and W. T. G. Airey: Short History of New Zealand. 6th ed. Wellington. Whitcombe & Tombs. 1938.

CONDLIFFE, JOHN Bell, and W. T. G. Airey: 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.

COWAN, James: Settlers and Pioneers. Wellington. Department of Internal Affairs. 1940.

MAKING New Zealand. Pictorial surveys of a century. 2 vols. Wellington. Department of Internal Affairs. 1940.

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.

SIMPSON, Helen Macdonald: The Women of New Zealand. Wellington. Department of Internal Affairs. 1940.

SWEETMAN, Edward: The Unsigned New Zealand Treaty. Melbourne. Arrow Printery. 1939.

WOODHOUSE, Airini Elizabeth (editor): Tales of Pioneer Women collected by the Women's Institutes of New Zealand. Auckland. Whitcombe & Tombs. 1940.

Special.

AKAROA and Banks Peninsula, 1840-1940. Akaroa. Akaroa Mail Co.

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.

BUICK, Thomas Lindsay: New Zealand's First War. Wellington. Board of Maori Ethnological Research. 1926.

BUICK, Thomas Lindsay: The Treaty of Waitangi. 3rd edition. New Plymouth. Avery. 1936.

BUICK, Thomas Lindsay: Waitangi Ninety-four Year 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.

CHAPPLE, Leonard James Bancroft, and H. C. Veitch: Wanganui. Wanganui Historical Committee. 1939.

COAD, Nellie Euphemia: New Zealand from Tasrnan 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.

GILKISON, Robert: Early Days in Dunedin. Dunedin. Whitcombe & Tombs. 1938.

GRAY, Arthur James: An Ulster Plantation: the story of Kati Kati settlement. Dunedin. Reed. 1938.

HARCOURT, Melville: The Day before Yesterday. A short history of the Bay of Islands. Dunedin. Reed. 1940.

HARROP, Angus John: England and the Maori Wars. London. New Zealand News. 1937.

HOWARD, Basil: Rakiura, a history of Stewart Island. Dunedin. Reed. 1940.

LORD, Edward Iveagh: Old Westland, a story of the golden West Coast of the South Island of New Zealand. Christchurch. Whitcombe & Tombs. 1939.

LOVELL-SMITH, Edgar Macleod: Old Coaching Days in Otago and Southland. Christchurch. Lovell-Smith & Venner. 1931.

MACDONALD, Colin A.: Pages from the Past. Blenheim. Duckworth. 1933.

MCDONALD, Kenneth Cornwell: History of North Otago. Oamaru. Oamaru Mail Co. 1940.

MCDONALD, Rod: Te Hekenga: early days in Horowhenua. Compiled by E. O'Donnell. Palmerston North. Bennett. 1929.

MCINTOSH, Alastair Donald: Marlborough, a provincial history. Blenheim. Marlborough Provincial Historical Committee. 1940.

MCKENZIE, Norman R.: The Gael Fares Forth. Wellington. Whitcombe & Tombs. 1935.

WORRELL, William Parker: New Zealand. London. Benn. 1935.

MULGAN, Alan Edward. The City of the Strait. Wellington and its province. Wellington. Reed. 1939.

PRATT, Major Albert Rugby: Pioneering Days of Southern Maoriland. London. Sharp. 1932.

RUTHERFORD, James, and W. H. Skinner (editors): The Establishment of the New Plymouth Settlement, 1841-43. New Plymouth. Avery. 1940.

VENNELL, Charles William: Such Things Were. The story of Cambridge, New Zealand. Wellington. Reed. 1939.

WARD, Louis E.: Early Wellington. Wellington. Whitcombe & Tombs. 1929.

WILSON, James Gordon, and others. History of Hawke's Bay. Wellington. Reed. 1939.

WILSON, Sir James Glenny: Early Rangitikei. Christchurch. Whitcombe & Tombs. 1914.

WILY, Henry Evon Robert Luxmore: South Auckland. Early settlement and development. Pukekohe. Franklin Printing Co. 1940.

YESTERDAY and to-day in Otago. Dunedin. Coulls, Somerville, Wilkie. 1940.

SAMOA.

(BUCK, Peter Henry): Material Culture of Samoa, by To 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 Age in Samoa. New York. William Morrow. 1928.

NEEFGEN, 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.

BEAGLEHOLE, Ernest and Pearl: Ethnology of Pukapuka (Cook Islands). Honolulu. Bishop Museum Bulletin 150. 1938.

(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.

(c) 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.
Acclimatization1894430
Agriculture in New Zealand (by M. Murphy, F.L.S.)1912809
“Britomart,” Mission of, at Akaroa in August, 184019271012
Building-stones1892194
Cancer in New Zealand—a statistical study1926889
Chatham Islands, the1900531
Cheviot Estate, the1895264
Christchurch to West Coast, journey from1899548
Coal-deposits of New Zealand, the1900479
Cook Islands, the laws of1902573
Co-operative system of constructing public works1894234
Dairy Farm Survey1938429
Education system of New Zealand, the1925816
Effect of nativity order on infant mortality1925835
Exotic trees in Canterbury1904569
External trade of New Zealand, the1915858
Fauna, the194036
Forest-trees and the timber industry1899470
Frozen-meat trade, the1894311
Geology19407
Gold-dredging industry, the1899509
Government training-ship “Amokura”1913942
Hanmer Thermal Springs1905631
Hemp industry, the1900477
H.M.S. “New Zealand”1913932
Kauri-gum1900489
Labour in New Zealand1894362
Lakes of New Zealand193211
Land and income tax assessment1913884
Laws of England and New Zealand, difference between1896281
Libraries1940928
Live-stock production—A review baaed on standard values and units1929990
Local Government in New Zealand1925845
Maori, ancient, his amusements, games, &c.1907707
Maori, ancient, his clothing1908734
Maori, chant (tangi)1907711
Maori, colour-sense of the1905637
Maori, marriage customs1906638
Maori, mythology1900536
Maori, neolithic, the1902578
Maori, place-names1919936
Maori, religion1901530
Maori, sociology1903641
Maori, songs1908739
Marlborough Sounds, the1901517
Midland Railway, the1894386
Mineral Waters and Spas1940935
Mineral waters of New Zealand1913896
Moa, heir of the1899517
Mortality rates, New Zealand1927995
Mount Cook, a night on1900525
Mount Cook, a night on district, the1899554
Mount Cook, a night on its glaciers, and the Hermitage1898552
Mount Sefton, ascent of1900519
New Zealand Contingents for South Africa1900449
New Zealand International Exhibition1907701
Otago lakes, the1901523
Patents, designs, and trade-marks1893350
Plants of New Zealand, the194028
Pumice-stone deposits of New Zealand1900486
Railways in New Zealand, their history and progress1894377
Rivers of New Zealand19326
Ross Dependency1938900
Scenic wonderland, a1898565
Sheep, crossbreeding of1894308
Sheep-farming1894302
Shipping companies—  
  New Zealand Shipping Company1895392
  Shaw, Savill, and Albion Company1895393
  Union Steam Ship Company of New Zealand1895389
Southern Alps, the1894474
State farms1894243
Sydney Pageant, the1901527
Terman intelligence tests in New Zealand schools1925823
Thermal-springs district1905614
Timber-trees of the world1903605
Tokaanu to Raetihi1899539
Topographical nomenclature of the Maori1919936
Totalizator, the1926838
Tourist Attractions1940932
Tree-planting1906611
Tuhoeland1899546
Varieties of soil1892193
Wages and working-hours in New Zealand1919860
Waihi Gold-mining Company1897432
Waikato district and through to Wanganui1899520
Waiouru to Mangaonoho1899543
Wanganui River, up the, to Tokaanu1900509
Wattle-growing in the Auckland Provincial District1897430
Wellington-Manawatu Railway, the1895381
Wellington Municipal Milk Supply1925777
West Coast Sounds, the1894482
White Island, a day on1906637

INDEX.

A.

Abattoirs, Slaughtering at, 402-404.
Aborigines (see Maoris).
Accident Funds, 278, 280, 282, 283.
Accident Insurance, 625-629.
State, 628.
Accidents—
Automobile, 106, 164, 178, 298.
Cases treated in Hospitals, 114, 116.
Causes of, 776.
Deaths from, 99, 105, 108, 114, 116, 164, 278, 298, 433, 775, 819.
Frequency Rates, 773-775.
Industrial, 773-782, 819.
Mining, 433, 439, 774.
Railway, 106, 278, 773-782.
Time lost through, 779.
Traffic, 106, 298.
Tramway, 106.
Acclimatization of Fishes, 426.
Accommodation Licenses, 825.
Accounts, National Savings, 518.
Accounts, Public, 490-539.
Acreage and Yield of Crops, 373-388, 855.
Acreage of Holdings, 316, 317, 662, 676.
Acts passed in 1940, 829-831.
Actuarial Valuation of Superannuation Funds, 557, 559, 560, 562.
Ad valorem Duties, 243.
Added Value in Manufacturing, 442, 443, 451, 456, 457.
Adjustment of Farm Liabilities, 362.
Adjustment of Mortgages, 362, 536, 650.
Administration, 19-27.
Adopted Children, 69.
Adult Education, 161.
Adult Suffrage, 26.
Adulteration of Food, 121.
Advances—
Bank, 588, 592-596, 865.
Building Societies, 644-648.
By State (see State Advances and State Aid).
Advertising by Radio, 800.
Aerated-water Factories, 462.
Aero Clubs, 300, 304.
Aerodromes, 300, 307.
Aeronautical Radio Service, 313.
Afforestation, 409-412, 417-421, 816.
Bondholders, 813.
Companies, 419-421.
After-lifetime, Average, 86.
Age Benefits, 542, 550.
Age Distribution, 54.
Age, Mean—
At Death, 86.
At Marriage, 77.
Agents, Overseas, 880.
Ages—
Of Cancer Decedents, 103.
Of Hospital Patients, 114.
Of Industries, 455.
Of Infants dying, 94-97, 109.
Of Injured Employees, 777.
Of Inmates of Charitable Institutions, 134, 135.
Of Inmates of Mental Hospitals, 137.
Of Issue left, 90, 92.
Of Maoris dying, 107.
Of Migrants, 41.
Of Offenders probationed, 174.
Of Parents, 64-71, 90, 91.
Of Patients in Public Hospitals, 114.
Of Persons dying, 85, 86, 107, 670.
Of Persons marrying, 76-78.
Of Population, 54.
Of Prisoners, 172.
Of Public-school Pupils, 148, 149.
Of Tubercular Decedents, 100.
Aggregate Private Income, 695, 785.
Aggregate Wealth, 670.
Aggregation of Land, 326.
Agreement, Ottawa, 233, 242, 251.
Agricultural and Pastoral Production, 338-408, 821, 855.
Value of, 340-348, 821.
Agricultural Bursaries, 161.
Agricultural Clubs, 154.
Agricultural Colleges, 144, 159, 160.
Agricultural Machinery, 349, 405, 466.
Agricultural Policy, Developments in, 349-371.
Agricultural Produce—
Consumed locally, 346-348, 787-791.
Exported, 201-220, 346-348, 788.
Gross Farming Income, 340-348.
Price Index Numbers, 343, 345, 709.
Restriction of Imports of, 350.
Agricultural Workers Act, 739.
Agriculture, 338-408, 855.
Department of, 339.
(Emergency Powers) Act, 364, 368.
Executive Commission of, 368, 369.
Research in, 339, 370.
Aides-de-Camp, 870.
Air Bases, 301, 307.
Air Force, 190, 307.
Air Mails, 303, 306.
Air Transport and Aviation, 300-308.
Aircraft, 300-308.
Construction, 301.
Licensing and Control, 302-306.
Aitutaki Island, 2, 836.
Alcoholic Liquors—
Brewed, 462.
Consumption of, 794.
Duty on, 244, 245, 247, 248, 505, 506.
Sale of, 825.
Alienation of Land, 317, 325, 328, 330.
Aliens—
Migrants, 41.
Naturalization, 45.
Race Aliens, 42.
Allowances, Family, 550.
Allowances, Sustenance, 502, 695, 759, 760.
Alluvial-gold Mining, 429, 430.
Amalgamation of Local Authorities, 565.
Amortization of Debt, 497, 499, 519, 521, 522, 527, 573, 579.
Amusements-tax, 505, 513, 514.
Anchorage (Suwarrow) Island, 2, 837.
Angling, 427.
Animal Life, 18.
Annexed Islands, 2, 34, 833-842.
Annual Value Ratings-stem, 568.
Annuities, 619, 623.
Ante-natal Services, 133.
Anthracite, 433.
Antimony-ore, 429.
Antipodes Islands, 1, 833.
Apiculture, 407.
Apolima Island, 843.
Apparel, Duty on, 245.
Appeal Court (see Courts).
Apples, 385.
Consumption of, 791.
Duty on, 350.
Exported, 203-220.
Purchase by State, 359, 364.
Apprentices, 748, 762.
Appropriations, Expenditure under, 497.
Arbitration Act, 718, 719, 726, 740-742, 745-748.
Unions registered under, 754-757.
Arbitration Court, 22, 718, 729, 733, 740, 745, 875.
Award Wage-rates, 725.
Area—
Commanded by Irrigation Schemes, 365.
Of Cook and other Islands, 2, 836.
Of Exotic Forests, 417, 421.
Of Forests, 410.
Of Lakes, 7.
Of Land Holdings, 316, 317, 676, 680.
Of New Zealand, 1,2,316.
Of Orchards, 374, 383-386.
Of Provincial Districts, 47.
Top-dressed, 382.
Under Crops, 373-388, 855.
Under Cultivation, 318, 373-388.
Army, 181-186.
Arrivals, 39-45, 851.
Articles on Special Subjects in Previous Issues, 901.
Artillery, Permanent, 183.
Art-unions, 513, 827.
Asbestos, 432.
Asiatics, 42.
Assessable Income, 681-693.
Assessment Court, 582.
Assessment of Income-tax, 508, 689.
Assets—
Of Afforestation Companies, 419.
Of Bankrupts, 664, 666, 869.
Of Banks, 588, 592, 865.
Of Building Societies, 648.
Of Electric-power Undertakings, 808.
Of Fire-insurance Companies, 631.
Of Friendly Societies, 641.
Of Life-assurance Companies, 623, 624.
Of Local Authorities, 574, 668.
Of Manufacturing Industries, 453, 454.
Of Reserve Bank, 588.
State, 668.
Assigned Estates, 663-667.
Assisted Immigration, 43.
Associations, Industrial, 757.
Assurance, Life, 616-624.
Asylums, 136-139.
Benevolent and Orphan, 133-135.
Atafu Island, 3, 847.
Atiu Island, 2, 836.
Atlantic Salmon, 426.
Auckland—
Broadcasting Stations, 797, 801.
Building Values, 477.
Dwelling Construction Costs, 489.
Dwellings, 474, 478.
Fires, 635.
Population, 47, 48, 49, 50, 52.
Rainfall, 13, 17.
Retail Prices, 700-706.
Sales-tax Receipts, 517.
Shipping, 259-261, 262, 265, 266.
Sunshine, 15, 17.
Temperature, 15, 17.
Trade of Port, 257-261, 265, 266.
Tramways, 279, 281-284.
Wind, 16.
Auckland Islands, 1, 833.
Audit of Expenditure, 491.
Auriferous Mining, 428-430.
Australia—
New Zealand Tourist and Trade Commissioner in, 880.
Railways, 274.
Reciprocal Trade with New Zealand, 254.
Trade Commissioner for, in New Zealand, 881.
Authority, Statistical, 29.
Automatic Telephones, 312.
Automobiles (see Motor-vehicles).
Autonomy, Local (see Local Authorities).
Avarau (Palmerston) Island, 2, 837.
Aviation and Air Transport, 300-308.

B.

Bachelors marrying, 75, 76, 77.
Backward Children, 145, 154-156.
Bacon and Ham, Consumption of, 789.
Bacon produced, 460.
Balance of Overseas Payments, 196-198.
Balance of Trade, 191-199.
Balances of Public Accounts, 491.
Balance-sheet, State, 668.
Ballots for Military Service, 182.
Bananas, Consumption of, 791.
Banking and Currency, 585-615, 865, 866.
Bank-notes, 586, 588, 591, 592, 598, 610-612, 865.
Denominations of, 599, 612.
In Circulation, 591, 598, 865.
Tax on, 505, 513.
Bankruptcy, 663-667, 869.
Banks Indemnity (Exchange) Act, 519, 614.
Banks, Overseas Funds of, 197, 600.
Banks, Savings—
Post Office, 600-602, 606, 866.
School, 602.
Trustee, 603, 606.
Barley, 361, 369, 374, 375, 378.
Barren Land, 316, 318.
Basic Wage, 724, 740-742.
Beans, 374, 375.
Beds, Hospital, 131, 132.
Beef—
Chilled, 217, 218, 366, 395, 403, 460.
Consumption of, 788-790.
Exports of, 203-220, 403.
Beer—
Consumption of, 794.
Duty on, 244, 245, 248, 505.
Production of, 462.
Bees, 407.
Beet, Sugar, 367.
Belgium, Trade Agreement with, 256.
Benefit Societies, 640-643.
Benefits, Social Security, 127, 132, 139, 540-551.
Benevolent Asylums, 133-135.
Benevolent Societies, 640-643.
Bibliography—
General, 888-900.
Statistical, 28-33.
Big-game Fishing, 425.
Bills, Treasury, 519, 522, 524, 595.
Birthday Honours, 875.
Birthplaces of Persons naturalized, 45.
Births, 58-71, 852.
In Cook Islands, 838.
In Niue, 841.
In State Maternity Hospitals, 132.
Biscuit-factories, 461.
Bitumen-surfaced Roads, 286.
Bituminous Coal, 433, 434.
Blind, Benefits for the, 544.
Blind, School for the, 156.
Blocks of Flats, 477, 478, 487.
“Blue Books”28.
Blue Cod, Fixed Price for, 698.
Board of School-children, 152.
Boat-building Works, 467.
Boats, Fishing, 423.
Bobby Calves, 361.
Boer War Pensions, 550, 555.
Boilers, Inspection of, 818-820.
Bond-issuing Companies, 419, 813.
Bonds, National Savings, 518.
Boot and Shoe Factories, 463.
Boot and Shoe Repair Prices for, 698.
Boroughs, 563, 565-580.
Bridges in, 286.
Capital and Unimproved Values, 584.
Deltas, 578, 864.
Employees of, 765.
Housing, 476-480, 569.
Mileage of Streets, 286.
Population of, 52.
Borrowing-powers of Local Authorities, 566.
Borstal Institutions, 170, 172.
Boundaries of New Zealand, 1-3.
Bounty Islands, 1, 833.
Brass-foundries, 465.
Bread—
Consumption of, 790.
Fixed Price for, 697, 698.
Law re Sale of, 121.
Breeding-ewes, 390, 392.
Breeds of Cattle, 395, 396.
Breeds of Sheep, 391.
Breweries, 462.
Bricks, Consumption of, 470.
Brickworks, 465.
Brides and Grooms, 72-79.
Bridges, 286, 485.
Bridle-tracks, 286.
Brigades, Fire, 639.
Briquetting and Carbonizing of Coal, 434.
British Nationality, 45.
British Phosphates Commission, 2, 848.
British Preference, 233, 242-245, 251-255.
British Sovereignty, 2, 20.
British Trade Representatives, 881.
Broadcasting, 795-801, 828.
Commercial, 800.
For Schools, 158.
Time Signals, 798, 828.
Weather Forecast, 11, 304.
Brown-top, 381.
Budgets, Household, 700, 707.
Building and Construction, 468-489.
Building Costs, 482, 486, 488, 489.
Building Industry, Training of Apprentices, 762.
Building Materials, 469-471, 486.
Building Permits, 475-481.
Building Societies, 644-648.
Deposits, 604.
Buildings, 468-489.
Building-stones, 436.
Bullion, Exports of, 200-220, 429, 430, 859.
Bullion Production, 428-430.
Bureau of Industry, 822-824.
Bursaries, 151, 159.
Bush, 318, 410.
Bushel Units, Weights of, 373.
Business Failures, 663-667, 869.
Business Premises erected, 487.
Butter (see Dairy-produce).
Butter-fat Yields, 399.
By-elections, 825.

C.

Cabinet, 24.
Members of, 871.
War, 24, 871, 872.
Cabinetmaking, 467.
Cable Tramways, 285.
Cables, Ocean, 314.
Cadets, 181, 185.
Call, Deposits at, 591, 594, 648.
Campbell Island, 1, 833.
Camps, Health, 124.
Canada—
New Zealand Tourist and Trade Commissioner in, 880.
Reciprocal Trade with New Zealand, 255.
Trade Commissioner in New Zealand, 881.
Cancer, 99, 101-103, 108, 114, 116.
Candle-factories, 463.
Capital—
Expenditure of Government, 499.
Invested in Electric-power Undertakings, 804-808.
Invested in Factories, 455.
Invested in Railways, 270, 500, 868.
Invested in Telegraph Construction, 311.
Invested in Telephone Construction, 312.
Invested in Tramways, 280, 283.
National, 670.
Of Banks, 585, 588, 590.
Of Joint-stock Companies, 813-817.
Capital Value of Land, 581-584.
Rating on, 568.
Carbonizing and Briquetting of Coal, 434.
Cargo handled at Ports, 257-261.
Car-miles run by Trams, 279, 281, 285.
Carnegie Corporation, 158.
Carrots, 381.
Carry-over of Wool, 393, 394.
Casein (see Dairy Produce).
Cassiterite, 432.
Casualties in the War (1914-18), 186.
Casualties, Shipping, 268.
Cattle, 389, 395, 396, 401, 403, 856.
Causes of Accidents, 776.
Causes of Death, 98-109, 138,
Causes of Fires, 636.
Causes of Industrial Disputes, 769.
Causes of Insanity, 136.
Cawthron Institute, 370.
Cement-concrete Roads, 287.
Cement-works, 464.
Cemeteries, 123.
Census, 28, 34-38, 46-49, 55, 757.
Of Dwellings, 471,473.
Of Poultry, 406.
Of Religions, 826.
Ordinance, 28.
Unemployment Statistics, 472, 758.
Centennial Celebrations, 23.
Centennial Coinage, 609.
Central Reserve Bank, 197, 198, 199, 222, 585-588, 598-600, 605, 610-615.
Cereals, 374-378.
Consumption of, 790.
Certificated Teachers, 157.
Certificates—
Engine-drivers’, 819.
Land Titles, 320.
Marine Officers’, 267.
Certification of Seed, 340, 379.
Chaff, 377, 380.
Charitable Aid, 126-130.
Charitable Institutions, 126, 133-135.
Chatham Islands, 1, 832.
Schools, 144, 153.
Cheese (see Dairy-produce).
Chemical Fertilizer Works, 467.
Chemists, Registration of, 122.
Cheque-paying Banks, 585-600, 865.
Chewings Fescue, 381.
Chief Justice, 875.
Child Welfare, 93, 124, 145, 154-156, 175.
Childbirth, Deaths in, 99, 103-105, 114, 116, 132.
Children—
Adopted, 69.
Affected by Divorce Proceedings, 81.
Born, Sexes of, 62, 69,71.
Left by Parents dying, 90-93.
Offences by, 155, 175.
Children under One, Deaths of, 93-98, 109, 852.
Children’s Courts, 154, 175.
Children’s Homes, 133-135, 155.
Chilled Beef, 217, 218, 366, 395, 403, 460.
Chinese, 42.
In Nauru, 849.
In Western Samoa, 844.
Chou Moellier, 381.
Christchurch—
Broadcasting Stations, 797, 801.
Building Values, 477.
Dwelling Construction Costs, 489.
Dwellings, 474, 478.
Fires, 635.
Population, 49, 50, 53.
Rainfall, 13.
Retail Prices, 700-706.
Sales-tax Receipts, 517.
Sunshine, 15, 17.
Temperature, 15, 17.
Tramways, 279, 281-284.
Chronological List of Events, 883-888.
Cinematograph Film-hire Tax, 505, 515.
Cinnabar, 432.
Cities, Population of, 50, 52, 53.
Citrus Fruits, 367, 383-386.
Consumption of, 791.
Civic Planning, 569.
Civil Aviation, 300-307.
Civil Law Cases, 163.
Civil List, 24.
Civil Marriages, 72, 78.
Civil Service (see Public Service).
Claims, Insurance, 616-639.
Classification of Industries, 456-458.
Classification of Public Debt, 521.
Clearings, Bank, 597.
Clergy of each Denomination, 79.
Marriages by, 78.
Climate, 11-17.
Clinics, Ante-natal, 133.
Clinics, School Dental, 125.
Clocks, Public, 829.
Clothing-factories, 463.
Clothing-prices, 706, 707.
Clover-seed (see Grass-seed).
Club Charters, 825.
Clubs, Aero, 300, 304.
Clubs, Rifle, 185.
Clubs, Working-men’s, 640.
Coachbuilding-works, 466.
Coal—
Consumption of, 433, 449, 794.
Exports of, 203-218, 200, 429.
Production of, 428, 433.
Used in Factories, 449.
Coal-miners’ Relief Fund, 439, 737.
Coal-mining, 433-435.
Coal-resources, 433.
Coastal Shipping, 263, 265.
Coastal Trade, Tonnage, 258, 259, 261.
Coastal Vessels registered, 263.
Coast-line, 3.
Cocksfoot, 381.
Coin held by Banks, 588, 592, 865.
Coin imported and exported, 199, 202, 203, 206, 225, 226, 857.
Coinage, 607-610.
Coin-in-slot Telephones, 312.
College of Pharmacy, 123.
Colleges—
Agricultural, 144, 159, 160.
Military, 184.
Naval, 188.
Training, 156.
University, 144, 159-161, 853.
Collieries, 433-435.
State, 434.
Colonization, 20.
Combined Schools, 144, 150, 153.
Commerce, Overseas, 191-261, 263-266, 857-860.
Commercial Afforestation, 419-421.
Commercial Air Transport, 302-307.
Commercial Aircraft, Licensing and Control, 302.
Commercial Broadcasting, 800.
Commercial Failures, 663-667, 869.
Commissions, Mortgagors’ Liabilities Adjustment, 651.
Commodities, Consumption of, 783-794.
Community Centre, 162.
Companies, Bond-issuing, 419, 813.
Companies, Co-operative Dairy, 397.
Companies, Income of, 684, 690-692, 695.
Companies, Joint-stock, 813-817.
In Manufacturing Industries, 455.
Companies, Private, 813-817.
Companies Share Price Indexes, 715-717.
Companies, Taxation of, 509, 513, 540, 681-685, 690-692.
Comparisons with Other Countries—
Birth-rates, 61.
Cancer Death-rates, 102.
Cattle, Number of, 396.
Consumption of Primary Products, 789.
Dairy Cows, Number of, 402.
Dairy-produce, Production of, 400.
Death-rates, 87, 90.
Friendly Societies, 643.
Health Insurance, 729.
Imports of British and Foreign Origin, 232-234.
Imports of United Kingdom Origin, 232-234.
Infant-mortality Rates, 93.
Live-stock (see Cattle, Sheep, &c).
Marriage-rates, 74.
Natural-increase Rates, 61.
Pigs, Number of, 402.
Population, 57.
Production—
Dairy-produce, 400.
Wool, 394.
Radio Licenses, 800.
Railways, 274.
Sheep, Number of, 392.
Telephones to Population, 311.
Tuberculosis Death-rates, 101.
Vital Statistics (see Births, Deaths, &c.).
Compensation Court, 752, 875.
Compensation, Workers’, 625, 626, 628, 750-752, 774, 775.
Compulsory Education, 140.
Compulsory Military Service, 181, 182.
Conciliation Councils, 745-748.
Concrete-surfaced Roads, 286.
Condensed-milk Factories, 461.
Conditional Licenses, 825.
Confectionery-factories, 461.
Confinement—
Deaths in, 103-105, 114, 116, 132.
Maternity Hospital Cases, 132.
Conflagrations, 635.
Conjugal Condition of Persons marrying, 75.
Conjugal Rights, Restitution of, 80.
Consent to Marriage, 72.
Conservation of Forests, 410-412.
Consolidated Fund, 495-498, 862.
Constitution, 24.
Of Cook Islands, 835.
Of Local Districts, 564.
Of Western Samoa, 843.
Construction and Building, 468-489.
Construction of Aircraft, 301.
Construction of Railways, Cost of, 270, 500, 868.
Construction of Roads, 286-293.
Consuls, Foreign, 881.
Consumers’ Goods, Imports of, 227, 228.
Consumption of—
Building Materials, 469-471.
Coal, 433, 449, 794.
Commodities, 783-794.
Electricity, 284, 448, 794.
Farm-produce, 346-348, 787-791.
Meat, 788-790.
Timber, 415, 470.
Wheat and Flour, 376, 790.
Wool, 393, 467.
Contagious Diseases, 110, 114,115, 117, 124.
Contribution, Social Security, 540.
Control of Exports, 198.
Control of Imports, 198, 222-224, 245.
Control Survey, 333.
Conversion of Debt, 522, 579.
Conveyance of Children to School, 152.
Convictions in Magistrates’ Courts, 167, 854.
Convictions in Supreme Court, 168, 854.
Convictions, Summary, 167, 168, 854.
For Drunkenness, 167, 176, 177, 179.
For Traffic Offences, 167, 178.
Of Juveniles, 175.
Of Maoris, 177.
Of Women, 176.
Cook and other Pacific Islands, 2, 834-842.
Bibliography, 900.
Exports to, 221.
Imports from, 241.
Population, 34, 838, 840.
Radio-stations, 838.
Trade, 839, 841.
Cook’s Visits to New Zealand, 20.
Co-operative Dairy Companies, 397.
Co-operative Pig Marketing, 366.
Co-operative Public Works, 729, 753.
Copper, 431.
Cordial-factories, 462.
Corn Crops, Acreage and Yield of, 375-378, 855.
Coroners’ Inquests, 164.
Correspondence Classes, 144, 153.
Cost of Living, 697-717.
Cost of Railway Construction, 270, 500, 868.
Costs—
Building, 482, 486, 488, 489.
Dairy-farm, 357.
Dwelling, 488, 489.
Farm, 345, 362-364, 368, 369.
Reading, 292.
Council, Executive, 24.
Members of, 871.
Council, Legislative, 21, 24.
Members of, 873.
Council of Primary Production, 370.
Counties, 563, 565-580.
Bridges in, 286.
Capital and Unimproved Values, 583, 584.
Debt, 578, 864.
Employees of, 765.
Housing, 480.
Mileage of Roads, 286.
Population of, 51.
Country Lands, Mortgages on, 654, 658-662, 672,673,677.
Country Library Service, 162.
Country Quota, 25.
Courts—
Appeal, 170.
Arbitration, 22, 718, 729, 733, 740, 745, 875.
Assessment, 582.
Bankruptcy, 663.
Children’s 154, 175.
Compensation, 752, 875.
Divorce, 80.
Judges of, 875.
Magistrates’, 163, 166-168, 176-179, 854.
Native Appellate, 329.
Native Land, 329.
Of Review, 651, 875.
Supreme, 80, 163, 168, 854, 875.
Cover, Fire, 631-638.
Cow-testing, 340, 398.
Cranes, Inspection of, 818-820.
Crayfish, 423, 424.
Creameries, 398.
Cream-separators on Farms, 349.
Credit, Rural Intermediate, 537.
Creditors’ Petitions, 664.
Credits-in-aid, 491-493.
Crematoria, 123.
Crested Dogstail, 381.
Crime, Law and, 163-180.
Criminals, Habitual, 173.
Crops, 318, 372-388, 855.
Crown Lands, 316, 322-327.
Crown Tenants, 325.
Advances to, 323-327.
Cultivation, Area in, 318, 373-388.
Currency and Banking, 585-615, 865, 866.
Curriculum, School, 146.
Curtis Islands, 833, 834.
Customary Land, 328.
“Customs Aerodromes,” 302.
Customs Tariff and Revenue, 242-256, 350.
Customs Taxation, 242-256, 505, 506.
Cycle-works, 466.

D.

Daily Incidence of Fires, 638.
Dairy Cows, 389, 395, 401, 402, 856.
Dairy Industry, 340-348, 355-357, 358, 359,397-400,461.
Dairying Machinery, 349, 466.
Dairy-produce, 340-348, 397-100.
Consumption of, 346-348, 788-790.
Export of, 203-220, 358, 398-400, 859.
Export Price Indexes, 711-713.
Factories, 397, 398, 461, 816.
Fixation of Prices, 356, 698.
Grading of, 397.
Gross Farming Income, 340-346.
Guaranteed Prices of, 356.
Local Consumption of, 346-348, 788-790.
Marketing of, 355-357, 359, 361, 400.
Processing of, 461.
Production of, 398, 461, 821.
Purchase for War Purposes, 358, 359, 698.
Retail Prices Index, 702, 704, 705, 707.
Danger (Pukapuka) Island, 2, 837.
Dangerous Drugs and Poisons, 122.
Dates of Maturity of Public Debt, 522, 524, 525, 580.
Dates of Principal Events, 883-888.
Daylight Saving, 827.
Dead-births, 69-71, 98, 132.
Deaf, School for the, 145, 155.
Dealing in Coin, Restriction on, 610.
Death Duties, 505, 510-512.
Estates certified for, 669, 670.
Deaths, 60, 82-109, 852.
Accidental (see Accidents).
Distribution over Year, 84.
Due to Earthquakes, 10.
From Infantile Paralysis, 116.
From Puerperal Causes, 99, 103-105, 114, 116, 132.
From Violence, 99, 105, 108, 114, 116, 164, 298.
In Coal-mining Accidents, 433.
In Hospitals, 113-116.
In Mental Hospitals, 137.
In State Maternity Hospitals, 132.
Of Friendly Society Members, 641.
Of Infants, 93-98, 108, 852.
Of Insured Persons, 618, 619, 620, 622.
Of Maoris, 59, 107-109.
Debentures, General and Local Government, 509, 519, 574.
Debenture-tax, 509.
Debits, Bank, 597.
Debt, Conversion of, 522, 579.
Debt of Local Authorities, 130, 530, 574-580, 863, 864.
Debt, Public, 518-530, 861.
Debtors’ Petitions, 664.
Deceased Persons, Estates of, 669, 670.
Decrees in Divorce, 80.
Deeds Registration, 319.
Defective Children, 145, 154-156.
Defectives, Mental, 136-139.
Defence, 181-190, 307.
Expenditure on, 190, 497, 521.
Pensions, 555.
Deferred-payment Lands, 322, 325.
Deficits, 495.
Degrees, University, 118, 145, 159.
Demography, 34-57.
Denominational Schools, 144, 149.
Denominations of Bank-notes, 599, 612.
Denominations of New Zealand Coins, 608.
Density of Population, 55.
Dental Nurses, 125.
Dental Treatment of School-children, 125.
Dentists, Registration of, 119.
Departments, Government, 876.
Reports of, 32.
Departures, 39-14, 851.
Dependencies, 1, 34, 832-850.
Dependent Children, Care of, 145, 154-156, 175.
Dependants of Soldiers, 552, 553.
Deposits, 588, 593-595, 600-604, 605-607, 648, 865, 866.
By Insurance Companies, 616, 630, 831.
Interest-rates, 605-007, 648.
With Building Societies, 604, 607, 648.
With Local Authorities, 607.
With Savings-banks, 600-604, 606, 866.
With Trading Banks, 591, 593-595, 605.
With Trading Companies, 604, 607.
Depreciation Allowance, 508.
Depreciation of New Zealand Currency, 612-615.
Designs, Registration of, 818.
Destination—
Of Emigrants, 41.
Of Exports, 203, 206-219.
Of Shipping, 264.
Detention, Reformative, 156, 171, 173.
Development of Lands, 324, 330, 761.
Diagrams (see Graphs).
Diphtheria, 99, 108, 109, 110, 111, 115,117.
Diplomas, 118, 145.
Disabilities from Industrial Accidents, 775, 776, 778-781.
Discharged Mental Patients, 137.
Discharged Mortgages, 652, 654.
Discharged Soldiers (see Soldiers).
Discharged Soldiers Settlement, 324, 327, 535.
Discount Rates, 605.
Discovery of New Zealand, 19.
Diseases, Notification of, 110, 117.
Diseases, Principal, Deaths from, 99-105, 107-109, 114-116.
Diseases treated in Hospitals, 114-116.
Disputes, Industrial, 745-748, 766-772.
Dissolution of Marriage, 79-81.
Dissolution of Parliament, Dates of, 870.
Distribution of Marriages, 75.
Distribution of Population, 46-54.
District High Schools, 144, 150, 153, 853.
District Nurses, 133.
Districts, Electoral, 25.
Districts, Local, 563.
Districts, Military, 183.
Diversification of Farm Production, 365-368.
Dividend (Totalizator) Duty, 514.
Dividends, Bank, 590.
Dividends, Bankruptcy, 664, 665, 869.
Divorce, 79-81.
Divorced Persons remarrying, 75.
Domains, Public, 318, 323.
Domicile of Debt, 518, 523, 578.
Dominion of New Zealand, 1, 22, 832.
Draft Wool Allowance, 369.
Drainage Districts, 563, 565-580, 765.
Dredging, Gold, 429, 430.
Drilling, for Oil, 435.
Drills, Prospecting, 438.
Drivers’ Licenses, 293.
Drowning Accidents, 105, 164.
Drugs, 121, 122.
Drunkenness, 167, 176, 177, 179.
Ducks, 406.
Dunedin—
Broadcasting Stations, 797, 801.
Building Values, 477.
Dwelling Construction Costs, 489.
Dwellings, 474, 478.
Fires, 635.
Population, 49, 50, 53.
Rainfall, 13.
Retail Prices, 700-706.
Sales-tax Receipts, 517.
Shipping, 259-261, 262, 265, 266.
Sunshine, 15, 17.
Temperature, 15, 17.
Trade of Port, 257-261, 265, 266.
Tramways, 279, 281-284.
Wind, 16.
Duration of Incapacity, 779.
Duration of Marriage, 66, 81.
Duration of Strikes, 767.
Dutiable Imports, 242-246.
Duties—
Customs and Excise, 242-256, 505, 506.
Death, 505, 510-512.
Export, 246, 505, 846.
On Interest Receipts, 505, 513, 522.
On Agricultural Produce, 350.
On Lottery Tickets, 513, 827.
On Overseas Passenger-tickets, 513.
Stamp, 513.
Dwellings—
Advances for, 332, 531-537, 538, 644-648.
Census Enumerations, 471, 473.
Costs of, 488, 489.
Erected, 475-481, 487-489.
Maori, 332.
Private, 471, 481, 487-489.
Rents, 703-705, 707, 744.
State, 474.
Untenanted, 474.
Workers, 474, 533-535, 538, 743.

E.

Early History, 19-21.
Early Statistical Records, 28.
Earned Income, 685.
Earthquakes, 7-10.
Deaths due to, 10.
Economic Pensions, 554.
Education, 140-162, 853.
Boards, 140-142.
Endowments, 142, 145, 323.
Expenditure on, 145, 153.
Education Gazette, 158.
Educational Associations, Workers’, 161.
Educational Research, 161.
Effective Wage-rates, 720.
Eggs, 361, 366, 791.
Elections, General, 824.
Electoral Districts, 25.
Electoral Qualifications, 26, 565.
Electors, Compulsory Registration of, 26.
Electric—
Current, 448, 802-811.
Power Boards, 563, 565-580, 804, 864.
Power in Factories, 448.
Power on Farms, 349.
Railways, 269, 270.
Tramways, 279-284.
Electricity, Consumption of, 794.
By Tramways, 284.
Electricity Generation and Supply, 365, 802-811.
Emergency Benefits (Social Security), 547, 550.
Emigration, 39-43, 44, 851.
Empire Air Training Scheme, 307.
Employees—
Afforestation Companies, 420.
Building and Construction, 472, 482-485.
Electric-supply, 807.
Factory, 442-448, 456-459.
Fishing Industry, 423.
Hospital Boards’, 765.
Legislation affecting, 728-753.
Local Authority, 764.
Mining, 429, 433, 435, 437.
Postal, 315.
Public Service, 879.
Public Works, 763.
Railway, 277.
Tramway, 279, 284, 285.
Unions of, 728, 754-757.
Wage-rates of, 447, 484, 718-725, 734-736.
Employers’ Liability, 625, 626, 750-752.
Insurance, 625, 626.
Employers’ Unions, 754.
Employment and Unemployment, 758-765.
Employment Bureaux, 758, 762.
Employment Placement Scheme, 762.
Employment Promotion, 758-765.
Fund, 501, 759.
Taxation, 501, 505, 515.
Employment, Seasonal Fluctuations in, 458, 763.
Enactments affecting Labour, 728-753.
Enactments of 1940, 829-831.
Endowments, Education, 142, 145, 323.
Endowments, National, 323, 409.
Engine-drivers’ Certificates, 819.
Engineering-works, 465.
Engines—
Employed in Factories, 448.
Employed on Farms, 349.
Inspection of, 818.
Railway, 271.
Ensilage, 374, 377, 380, 382.
Entertainments-tax, 505, 513, 514.
Entrepôt Trade, 206, 209, 218.
Entry, Ports of, 257.
Estate Duty, 510.
Estates—
Acquired for Settlement, 326.
Administered by Public Trust Office, 812.
Assigned, 663-687.
Passed for Death Duty, 669, 670.
European Settlement in New Zealand, 20.
Examinations—
Education Department, 145, 152.
Electric-tram Drivers’, 819.
Engine-drivers’, 819.
Marine Officers’, 267.
Medical, of School Children, 124.
Medical Practitioners’, 119.
Mining, 439.
Of Motor-vehicles, 293.
Teachers’, 145.
University, 118, 119, 145.
Excess-profits Tax, 504, 831.
Exchange (Currency), 586, 612-615.
Banks Indemnity (Exchange) Act, 519, 614.
Effect on Trade Statistics, 191-195.
Exchange Pool, 614.
Expenditure on, 497, 615.
New Zealand- London, 613.
Reserve, 588.
Exchanges, Telephone, 312.
Excise Duties, 245, 248, 506.
Executive Council, 24.
Members of, 871.
Exemptions from Taxation—
Income-tax, 507, 508, 687.
Land-tax, 508, 676-678.
Exhibition, Centennial, 23.
Ex-nuptial Births, 66, 67-69.
Exotic Trees, Planting of, 417-421.
Expectation of Life, 86.
Expeditionary Forces, 182, 185, 888.
Expenditure—
Audit of, 491.
Broadcasting, 800, 801.
Defence, 190, 494, 497.
Education, 145, 153.
Local Authority, 128, 290, 573, 863.
Public, 490-503, 862.
Explorers, 19.
Export Control—
Dairy-produce, 355, 400.
Export Licenses, 198, 614.
Fruit, 385.
Honey, 408.
Kauri-gum, 436.
Meat, 405.
Export Duties, 246, 505, 846.
Export Licenses, 198, 614.
Export Prices, 219, 711-713, 714, 717.
Export Surplus, 191-198.
Exports, 191-221, 257-261, 857-860.
Commandeer of, 22, 357-360.
Dairy-produce, 203-220, 358, 399.
Excess of Imports over, 192, 193, 195.
Meat, 203-220, 402-405.
Minerals, 200-220, 429.
Of Ports, 257-261.
Specie, 199, 202, 203, 206.
Timber, 203-220, 416.
Valuation of, 191, 200.
Value in British Currency, 191-198.
Value on Gold Basis, 193.
Values, Index Numbers, 193.
Volume, Index Numbers, 193, 219.
Wool, 203-220, 392-394.
External Migration, 34, 39-45, 851.
External Trade, 191-261, 857-860.
Extra-marital Conceptions, 66.

F.

Factories, 440-467.
Accidents in, 773-782.
Act, 734.
Classification of, 456-458.
Dairy, 397, 398, 461, 816.
Employees, 442-448, 456-459.
Expenses of Operation, 442-453.
Growth of Production, 442.
Promotion of, 440, 822-824.
Size of, 445.
Fair Rents Act, 704, 732, 744.
Fakaofu Island, 3, 847.
Fallow Land, 318, 374.
Family Allowances, 550.
Family Benefits, 544, 550.
Family Budgets, 700, 707.
Farm Costs, Reduction of, 362, 363.
Farm Economy, Some Aspects of, 340-371.
Farm Employees, Working Conditions, &c., 739.
Farm Expenditure Indexes, 345, 715.
Farm Finance, Provision of, 323, 362, 532-538.
Farm Holdings, 316, 317, 660-662, 671-680.
Farm Implements, 349, 405.
Manufacture of, 466.
Farm Liabilities, Adjustment of, 362.
Farm Machinery, 349, 405.
Farm Produce—
Consumption of, 346-348, 787-791.
Export of, 200-220, 346-348, 857-859.
Marketing of, 352-362, 400, 405.
Purchase for War Purposes, 357-360.
Farm Producers’ Prices Indexes, 343-345.
Farmers—
Advice for, 339.
Financial Assistance to, 323-327, 362, 532-538, 761.
Mutual Fire Insurance, 638.
Provision of Labour for, 364, 371, 761.
Taxation of, 508.
Farming, 338-408.
Farming Income, Gross, 340-348.
Farming Industry, Subsidies to, 363, 761.
Farming Lands, Mortgages on, 533, 654, 658-662, 672-680.
Fathers—
Ages of, 64, 90, 91.
Duration of Marriage of, 66.
Fauna, 18.
Feeble-minded, Schools for, 156.
Fellmongering-works, 466.
Female Suffrage, 22, 26.
Female Wage-rates, 723, 724, 727.
Fern Lands, 318.
Fertilizer Factories, Chemical, 467.
Fertilizer used, 382.
Fertilizers, Prices of, 369, 698.
Fertilizers, Subsidies on, 363, 369.
Fibre, Phormium (see Phormium).
Fidelity-guarantee Insurance, 625, 628.
Field Crops, 374-382.
Film-hire Tax, 505, 515.
Finance, Farm, 323, 362, 532-538.
Finance of Local Authorities, 127-130, 570-580, 863, 864.
Hospital Boards, 127-130.
Finance, Public, 490-539, 861, 862.
Financial Assistance to Soldiers, 536.
Fire Brigades, 1139.
Fire Districts, 414, 563, 565-580.
Fire Inquests, 164, 637.
Fire Insurance, 630-639.
State, 638.
Fire Losses, 632-639.
Fireblight, 386.
Fire-prevention in Forests, 413.
Fires, Daily Incidence of, 638.
Fires on Vessels, 268.
First Births, 62, 65-67.
First Offenders’ Probation, 174.
Fish, 422-427.
Consumption of, 793.
Exported, 203-218, 423.
Fisheries, 422-127.
Fishing, Big-game, 425.
Fishing-boats, 423.
Five-day Week on Public Works, 753.
Fixation of Prices, 356-360, 367, 369, 697-699.
Fixed Deposits, 591, 594, 648.
Flats erected, 477, 478, 487.
Flax (see Phormium).
Flax Lands, 318.
Flax, Linen, 368.
Flax Plan, 823.
Floating Debt, 519.
Flocks—
Fowls, 407.
Sheep, 391.
Floods, 16.
Flora, 18.
Flotation of Loans, 518.
Flour—
Consumption of, 376, 790.
Fixed Price for, 697, 698.
Importation of, 350.
Flour-mills, 461.
Flying, 300-308.
Flying Clubs, 300, 304.
Fodder Crops, 374, 380.
Fog, 15.
Signals, 267.
Food and Drugs, Sale of, 121.
Food, Retail Prices of, 700-703, 704, 707, 717.
Foodstuffs, Consumption of, 787-793.
Footwear Factories, 463.
Forecasts of Weather, 11, 304.
Foreign Consuls, 881.
Foreign Immigrants, 41.
Foreign Vessels entered and cleared, 263.
Foreigners naturalized, 45.
Forest Fire-prevention, 413.
Forest Trees, 414.
Forest Produce consumed locally, 415, 788.
Forest Produce exported, 201-220, 416, 860.
Forestry, 318, 409-421.
Value of Production, 821.
Forty-hour Week, 726, 734, 753.
Foster-homes for Children, 155.
Foundries, 465.
Foveaux Strait Oysters, 424.
Fowls, 406.
Fowl-wheat, 377.
Fractions, Totalizator, 514.
Franchise, General Government, 26.
Franchise, Local Government, 27, 565.
Free and Dutiable Imports, 2-12-246, 249.
Free Education, 140-160.
Freehold, Crown Land made, 325.
Freehold Land, 316, 325.
Free Radio-licenses, 799.
Freezing-works, 460, 816.
Freight—
Carried by Air-transport, 303.
Carried by Shipping, 257-261.
Carried by Trains, 275-277, 868.
Train-mileage, 274, 275, 277.
Frequency Pates of Accidents, 773-770.
Fresh-water Fisheries, 425-427.
Friendly Societies, 640-643.
Frozen Meat exported, 203-220, 260, 358, 402-405, 858.
Fruit, Export of, 203-220, 358, 369.
Fruit Industry, 359, 369, 383-386.
Fruit Marketing, 359, 361, 383-386.
Fruit-export Control, 369, 385.
Fruit-preserving Factories, 462.
Fruit, Purchase by Government, 359.
Fruits, Consumption of, 791-793.
Fruits, Production of, 385.
Fuel and Light, Retail Prices of, 706, 707.
Fuel and Lighting, Consumption of, 794.
Fuels and Lubricants, Imports, 227, 228.
Funded Debt, 528.
Funds, Government Sinking, 528.
Funds of Public Account, 490-503.
Funds, Superannuation, 556-562.
Funeral Funds, 642.
Fungus exported, 204, 205.
Furniture-making Works, 467.

G.

Gales, 16.
Gaols, Prisoners in, 170-174, 854.
Gardens, Acreage in, 318, 383.
Gas, Consumption of, 794.
Gas-lighting District, 563, 570-580, 765.
Gasworks, 464.
Gauge, Railway, 270.
Geese, 406.
General Assembly, 21, 873, 874.
General Elections, 824.
Generating Stations, 803.
Geodetic Survey, 335.
Geographic Board, 337.
Geographical Features, 3-7.
Geological Survey, 437.
Geology, 7.
Geysers, 3.
Gift Duty, 510, 512.
Gilbert and Ellice Islands, 3.
Glaciers, 5.
Goats, 856.
Gold Coin, Export of, 199, 610.
Gold, Discovery of, 21.
Gold exported, 203-220, 429, 859.
Duty on, 246, 505.
Gold Reserves, 588.
Goldfields, Subsidized Roads on, 437.
Gold-mining, 428, 429.
Gonorrhœa, 118.
Goods available for Use. Value of, 783-785.
Goods carried on Railways, 275-277, 868.
Goods, Consumption of; 783-794.
Goods-service Licenses, 297.
Government Agents abroad, 880.
Government Departments, 876.
Reports of, 32.
Government Insurance, 623, 628, 638.
Government Railways, 269-278, 868.
Superannuation Fired, 560.
Government Roads, 286-288.
Government. System of, 20.
Government Valuations, 581-584.
Governor-General, 870.
Powers, Duties, &c., 24.
Grading—
Of Dairy-produce, 339, 397.
Of Fruit, 386.
Of Honey, 340.
Of Phormium Fibre, 340.
Of School-teachers, 141.
Graduated Land-tax, 507.
Grain Crops, 318, 375-378, 855.
Grain-mills, 461.
Granite, 436.
Grapes, 339, 373, 386.
Graphs—
Births, Deaths, Natural Increase, and Marriages, 60.
Cattle, Dairy-cows, and Pigs, 401.
Imports, 232.
Infant Death-rates, 96.
Retail Prices Indexes, 708.
Sheep and Breeding-ewes, 392.
Tuberculosis and Cancer Death-rates, 101.
Value of Merchandise Imports, 232.
Wholesale Prices Indexes, 711.
Grass Lands, 318, 374, 380-383.
Grass-seed, 374, 381.
Certification of, 340, 370.
Exported, 203-220.
Green Crops, 318, 374, 380-383.
Greenstone, 436.
Greenwich Mean Time, 827.
Groceries, Retail Prices of, 701, 705, 707.
Gross Farming Income, 340-348.
From Exports, 346-348.
From New Zealand Consumption, 346-348.
Indexes, 343, 345.
Gross Indebtedness, 519, 575-579, 861, 863.
Mortgage Indebtedness, 657.
Of Local Authorities, 575-579, 863.
Grounds for Divorce, 80.
Growth of Population, 35-40, 60, 61.
Guarantee Fund, Fruit Export, 363, 369.
Guaranteed Prices, 356.
Gum, Kauri, 435.
Exported, 203-220, 429, 860.

H.

Habitual Criminals, 173.
Habitual Drunkards, 176.
Hail, 16.
Half-castes, 35, 56.
Ham and Bacon, Consumption of, 789.
Ham and Bacon Curing, 460.
Harbour Boards, 563, 565-580, 765, 864.
Harbours (see also Ports), 3.
Harvests, 375-388, 855.
Hawaiki, 19.
Hay, 374, 377, 380, 382.
Heads of Government Departments, 876.
Health Camps, 124.
Health Insurance, 544, 547, 548-550, 729.
Health, Public, 117-139.
Heavy-traffic Fees, 292, 295.
Herald Islets, 834.
Herd-book Societies, 395.
Hervey Islands, 2, 837.
Hides and Skins exported, 203-220.
Hides, Marketing of, 361.
High Commissioner for United Kingdom, 881.
High Commissioner’s Office, 880.
High Schools, 144, 150-152, 153, 853.
Technical, 144, 150-152, 153, 853.
Higher Education, 159, 853.
Highway Districts, 288.
Highways, 287-293.
Taxation, 292, 506.
History, 19-23, 883-888.
Hobson’s Proclamation, 20.
Holdings (see Land Holdings).
Homes, Benevolent, 133-135.
Homes, Children’s, 133-135, 155.
Homicide, 99, 105, 164, 169, 180.
Honey, 361, 408.
Export Control, 408.
Exported, 204-218.
Levy on Exports, 247.
Honours conferred, 875.
Hops, 318, 361, 388.
Hops, Export of, 204, 205, 217, 218.
Horse-racing Taxation, 505, 513.
Horses, 389, 405, 856.
Horticultural Station, 340.
Horticulture, 383-387, 388.
Hosiery-factories, 463.
Hospital Benefits, 548, 549, 550.
Hospital Boards, 126-130, 548, 549, 563, 573.
Employees of, 765.
Employees’ Retiring-allowances, 561.
Finances of, 127-130.
Hospital Districts, 563.
Hospitals, 111-116, 126-139.
Maternity, 131-133, 549.
Mental, 136-139, 548.
Private, 131,548,549.
Private Mental, 138, 548.
Public, 111-116, 130.
St. Helens, 132, 549.
Hot Springs, 3.
Hotels, Licensed, 825.
Hours of Labour, 725-727.
In Factories, 458.
House of Representatives, 21, 25.
Members of, 874.
Household Budgets, 700, 707.
House-rents, 703-705, 707, 744.
Houses (see Dwellings).
Housing, 471, 473-481, 487-489, 531-539, 569, 743.
Of Maoris, 332.
State, 332, 474, 478, 538, 743, 830.
Survey, 473, 569, 744.
Humphrey (Manihiki) Island, 2, 837.
Husbands’ Petitions in Divorce, 81.
Hydatids, 110, 112, 116, 118.
Hydraulic Sluicing, 430.
Hydro-electric Power, 5, 6, 365, 802-811.
Used for Industrial Purposes, 448, 811.
Hygiene, 117.
Dental, 125.
Social, 118.

I.

Ice-cream, 793.
Illegitimate Infants—
Births of, 66, 67-69, 70.
Deaths of, 95.
In Benevolent Institutions, 135.
Legitimation of, 68.
Protection of, 155.
Immigration, 36, 39-45, 851.
Assisted, 43.
Early, 20.
Restriction on, 44, 753.
Imperial Airways, 303.
Imperial Government—
Produce purchased by, 357-360.
Implements, Farm, 349, 405.
Manufacture of, 466.
Import Control Regulations, 198, 222-224.
Import Licenses, 198, 222-224.
Import Prices Indexes, 713, 717.
Imported Commodities, Prices Indexes, 710, 713, 714.
Imports, 191-199, 222-241, 249-256, 857.
Diversion of, 232-234, 257.
Excess of Exports over, 192, 193, 195.
Free and Dutiable, 242-245, 249-251.
Of Ports, 257.
Purpose or Use of, 227.
Restrictions on, 198, 222-224, 245, 350.
Specie, 199, 225, 226, 857.
Value in Sterling, 191-198.
Value of, Index Numbers, 193.
Value on Gold Basis, 193.
Volume of, Index Numbers, 193.
Improved-farm Settlements, 323, 326.
Improvements, Value of, 583, 584.
Incapacity from Industrial Accidents, 773-782.
Income, Aggregate Private, 695, 785.
Income, Gross Farming, 340-348.
Incomes, 681-696.
From Social Security Returns, 693-696.
Income-tax, 505, 507, 508-510, 681-693, 829.
Increase in Population, 35-40, 60, 61.
Indebtedness, Mortgage, 657.
Indebtedness of Local Authorities, 130, 530, 574-580, 863, 864.
Indebtedness, Public, 518-530, 861.
Index Numbers—
Deaths, Sex-ratio, 84.
Export Prices, 711-713, 714, 717.
Farm Expenditure, 345, 715.
Farm Producers’ Prices, 343-345.
Farm Production Volume, 343, 345, 348.
Goods Available for Consumption, 784-787.
Gross Farming Income, 343, 345.
Hours of Labour, 725-727.
House-rent, 704, 705, 707.
Import Prices, 713, 717.
Marriage-rates, 74.
Population, 57.
Prices of Consumers’ Goods, 710.
Prices of Imported Commodities, 710, 717.
Prices of Locally-produced Commodities, 710, 717.
Producers’ Prices, 822.
Farm, 343, 345, 348.
Production, 822.
Farm, Volume of, 343, 345, 348.
Ratio of Customs Revenue to Imports, 249.
Retail Prices, 345, 699-708, 715, 717, 720.
Share Prices, 715-717.
Value of Exports, 193, 784.
Value of Imports, 193, 784.
Value of Production, 343, 822.
Volume of Exports, 193, 219.
Volume of Goods Available for Use, 786, 787.
Volume of Imports, 193.
Volume of Production, 343, 345, 348, 822.
Volume of Total Trade, 193.
Wage-rates, 719-724, 727.
Wholesale Prices, 708-711, 714, 715, 717.
Indians, 42.
Indigenous Forest, 414.
Individuals, Incomes of, 684-690, 693.
Individualization of Native Land, 329.
Industrial Accidents, 773-782, 819.
Industrial Associations, 757.
Industrial Classification, Companies, 816, 817.
Industrial Conciliation and Arbitration, 718, 719, 726, 740-742, 745-748, 754.
Industrial Disputes, 745-748, 766-772.
Industrial Efficiency, 123, 440, 822-824.
Industrial Life Assurance, 616, 620, 622.
Industrial Planning, 440, 822-824.
Industrial Unions, 729, 754-757.
Industries—
Classification of, 456-458.
Important, 460-467.
Licensing of, 822-824.
Manufacturing, 440-467.
Industry, Bureau of, 440, 822-824.
Industry, Organization of, 456, 822-824.
Inebriates, 167, 176, 177, 179.
Infancy, Diseases of, 98, 109.
Infant Mortality, 93-98, 852.
Maori, 108.
Infantile Paralysis, 110, 111, 116, 118.
Infant-life Protection, 93, 133, 154.
Infectious Diseases—
Control of, in Schools, 124.
Hospital Cases, 114, 115.
Notification of, 110, 117.
Injuries (see Accidents).
Inland Air Mails, 306. Inland Fisheries, 425-427.
Inmates—
Of Charitable Institutions, 133-135.
Of Gaols, 170-173, 854.
Of Hospitals, 111-116, 131.
Of-Mental Hospitals, 136-139.
Inquests, 164.
Insanity, 136-139.
Insolvency, 663-667, 869.
Inspection, Medical, of Schools, 124.
Inspection of Dairies and Dairy Factories, 339, 397.
Inspection of Machinery, 818-820.
Instruments, Duty on, 505, 513.
Instruments, Registration of, 319.
Insurance, 616-639, 831.
State, 623, 628, 638.
Intercensal Population, 34, 38, 39.
Interest—
Credited by Savings-banks, 601, 602, 603, 866.
On Local Authorities’ Debt, 573, 579.
On Mortgages, 656.
On Public Debt, 525.
Payments Overseas, 196, 525, 579.
Rates (see Rates of Interest).
Recouped to Consolidated Fund, 496.
Reduction of, 368, 522, 531, 536, 579, 606, 651.
Tax on, 505, 513, 522.
Interference, Radio, 799.
Inter-Island Passengers, 47.
Intermediate Credit, 350, 537.
Intermediate Schools, 144, 149.
Internal Marketing, 360, 361, 367, 380, 384.
Internal Migration, 47.
International Comparisons (see Comparisons).
International Payments, 196, 525, 579.
International Standardized Death- rates, 88-90.
Intestate Estates, 812.
Intoxicating Liquor—
Consumption of, 794.
Sale of, 825.
Invalidity Pensions, 550.
Invalids’ Benefits, 544, 550.
Investment Certificates, 518.
Investment Societies, 644-648.
Deposits, 604.
Investments, State, 521.
Investments, Totalizator, 514.
Invisible Imports and Exports, 196-198.
Iron, Consumption of, 470.
Iron-foundries, 465.
Iron-ores, 428, 430, 438.
Irrigation and Water-supply, 365.
Islands—
Administered on Mandate, 2, 34, 842-849.
Annexed, 2, 34, 833-812.
Outlying, 1, 833.
Issue of Bank-notes, 586, 588, 591, 592, 598, 610-612.
Issue of Deceased Parents, 90-93.
Issue, Previous, of Parents, 64.

J.

Jam-factories, 462.
Joint-stock Banks, 589-600, 865.
Joint-stock Companies, 813-817.
In Manufacturing Industries, 455.
Journal of Agriculture, 340.
Journal, School, 158.
Judicial Separation, 80.
Judiciary, Members of, 875.
Justice, 163-180, 854.
Juvenile Offenders, 155, 175.
Juvenile Wage-rates, 724, 727.

K.

Kauri-gum, 435.
Exported, 203-220, 429, 860.
Kermadec Islands, 2, 34, 833.
Kindergarten Schools, 146.
King George V Memorial Fund, 124.

L.

Labour Department Employment Bureaux, 758, 762.
Labour Disputes, 745-748, 766-772.
Labour Disputes Investigation Act, 748.
Labour, Hours of, 725-727.
In Factories, 458.
Labour Laws and Allied Legislation, 728-753.
Labour Ministry, 872.
Labour on Farms, State Assistance, 364, 371, 761.
Labour Shares, 730.
Lake Wakatipu Steamer Service, 270, 271, 273.
Lakes, 6.
Lamb—
Consumption of, 788, 789.
Exported, 203-220.
Lambs, 389, 390-393.
Lambs slaughtered, 402.
Land and Income Tax, 368, 505, 507-510, 671-680, 681-693, 829.
Land Boards, 322.
Maori, 329.
Land Development, 323, 330.
Land Districts, 322, 326.
Land Drainage Districts, 563, 565-580, 765.
Land for Discharged Soldiers, 324, 327.
Land for Settlements, 326.
Land, Government Valuation of, 581-584.
Land Holdings, 316, 317.
Mortgages on, 658-662, 671-678.
Value of, 658-662, 671-680.
Land, Occupation of, 316-319.
Land Offices, 322.
Land, Purchase of, 322-327.
Land Tax, 368, 505, 507, 508, 671-680.
Land Tenure and Settlement, 316-332.
Land Titles, Registration of, 319.
Land Transfer System, 319.
Land, Valuation of, 581-584.
Landing-grounds, 300.
Lands open for Selection, 324.
Land-settlement Accounts, 500.
Lapsed Assurance Policies, 618, 620.
Latest Statistical Information (see Forefront of Book).
Law and Crime, 163-180, 854.
Law, Mortgage, 649.
Laws affecting Labour, 728-753.
Laws enacted in 1940, 829-831.
League of Nations, 2.
Lease, Renewable, 323, 325.
Leasehold-landholdings, 316, 317, 325.
Legacy Duty, 511.
Legal Education, 159.
Legal Roads. Unformed, 286.
Legal-tender, 609, 610-612.
Legislation—
Labour and Allied, 728-753.
Passed in 1940, 829-831.
Statistical, 28.
Legislative Council, 21, 24.
Members of, 873.
Legitimation Act, 68.
Lemons—
Consumption of, 791.
Fixed Price for, 698.
Marketing of, 361, 367.
Letter-boxes, 309.
Letters Patent, 818.
Letters posted, 309, 867.
Letter-telegrams, 311.
Levies by Hospital Boards, 126-130, 573.
Levy—
Fruit Inspection, 386.
Honey Exports, 247.
Meat Exports, 247.
Wool Research, 247, 370.
Liabilities—
Farm, Adjustment of, 362.
Mortgage, Adjustment of, 536, 650.
Of Afforestation Companies, 419.
Of Bankrupts, 664, 665, 667, 869.
Of Banks, 588, 591, 598, 865.
Of Building Societies, 647.
Of Electric-power Undertakings, 808.
Of Fire-insurance Companies, 631.
Of Friendly Societies, 641.
Of Life-assurance Companies, 622.
Of Local Authorities, 130, 574.
Of Reserve Bank, 588.
Library Service, Country, 162.
Licensed Houses, 825.
Licenses—
Aerodromes, 301.
Air Pilots’, 305.
Aircraft Navigators’, 305.
Anglers’, 427.
By Local Authorities, 517, 570-572, 825.
Commercial Aircraft, 302.
Companies’, 513.
Export, 198, 614.
Ground Engineers’, 305.
Imports, 198, 222-224.
Motor-vehicle, 293-298.
Publicans’, 825.
Radio, 799.
Ross Sea Whaling, 850.
Sharebrokers’, 513.
Transport, 296-298.
Licensing, 825.
Of Industries, 440, 822-824.
Poll, 826.
Life Assurance, 616-624.
Death-rates, 622.
State, 623.
Life, Expectation of, 86.
Life Table, 87.
Lifts, Inspection of, 818-820.
Light and Fuel, Retail Prices of, 706, 707.
Light Dues, 268.
Lighthouses, 267.
Lignite, 433, 434.
Lime and Cement Works, 464.
Lime for Top-dressing, 382.
Limestone, 436.
Lincoln Agricultural College, 144, 159, 160, 370.
Linen Flax, 368.
Linseed, 374, 375.
Liquidations of Companies, 813.
Liquor, Consumption of, 794.
Literature, New Zealand, 888-900.
Live-stock, 389-408, 856.
Carried on Railways, 276, 277, 868.
Slaughtering of, 402-404.
Loans—
Allocation of, 521.
By Building Societies, 646.
Conversion of, 522, 579.
Dates of Maturity of, 522, 524, 580.
Domicile of, 518, 523, 578.
Of Hospital Boards, 130.
Of Local Authorities, 130, 530, 533, 566, 574, 575-580, 863, 864.
On Assurance Policies, 623.
Raised for War Purposes, 521, 523.
Redemption of, 497, 499, 519, 521, 522, 597 579.
Local Authorities, 563-580, 863, 864.
Advances to, 475, 533, 570.
Amalgamation, 565.
Assets of, 574, 668.
Debt of, 130, 530, 574-580, 863, 864.
Employees of, 764.
Employment Subsidies, 762.
Expenditure of, 128, 290, 573, 863.
History of, 563.
Levies on, by Hospital Boards, 126-130, 573.
Liabilities of, 130, 533, 574.
Receipts of, 127, 570-572, 863.
Subsidy from Main Highways Account, 290, 364.
Superannuation, 560.
Taxation by, 517, 567, 570-572.
Local Consumption of Produce, 783-794.
Local Government (see Local Authorities).
Local Option, 826.
Local Railway District, 563, 570-580.
Local Taxation, 517, 567, 570-572.
Location of Debt, 522-526, 578, 580.
Location of New Zealand, 1.
Lockouts, 745, 748, 766-772.
Locomotives, 271.
Lodges, Friendly Societies, 640-643.
London, Exchange on (see Exchange).
London Prices of Gold, Average, 429.
London Prices of New Zealand Stock, 525.
Losses from Fires, 632-639.
In Forests, 413.
Lotteries, 827.
Duty on, 513, 827.
Lubricants and Fuels, Imports, 227, 228.
Lucerne, 374, 380.
Lunacy, 136-139.
Lupins, 375.

M.

Macaulay Island, 833, 834.
Machinery—
Accidents, 776, 819.
Factory, 448, 454, 457.
Farm, 394, 405, 466.
Inspection of, 818-820.
Magistrates’ Courts (see Courts).
Magistrates, Superannuation of, 560.
Mails, 309.
Air, 303, 306.
Main Highways, 287-293.
Account, 289, 503.
Construction and Maintenance, 287, 290, 292.
Districts, 288.
Expenditure on, 289, 292, 503.
Finance, 288-292.
Taxation, 288, 289, 292, 503, 506.
Standards, 291.
Maize, 361, 374, 375, 381.
Malnutrition of School-children, 124.
Malthouses, 462.
Malting Barley, 369.
Mandated Territories, 2, 842-850.
Mangaia Island, 2, 836.
Manganese-ore, 428, 431.
Mangolds, 374, 381.
Manihiki Island, 2, 837.
Manono Island, 843.
Manuae Island, 2, 837.
Manufacturing Production, 440-467, 822-824.
Manures used for Top-dressing, 382.
Maori Electorates, 25, 824.
Maori Land Boards, 329.
Maori Schools, 144, 148, 150, 152.
Maori War Benefits, 546, 550.
Maori War Pensions, 550.
Maori Wars, 21.
Maoris, 19.
Births of, 59, 71.
Children attending Schools, 144, 148, 150, 151, 853.
Deaths of, 59, 107-109, 164.
Half-castes, 35, 56.
In Mental Hospitals, 139.
In Prisons, 177.
Infant Mortality of, 108.
Lands, 328-332.
Marriages of, 79.
Members of Parliament, 25, 875.
Offences by, 177.
Population, 34, 55.
Poultry kept by, 406.
Schools for, 143, 144, 145, 148, 152.
Map of New Zealand [End of Volume].
Maps, Sale of, 337.
Marble, New Zealand, 436.
Marine Officers’ Certificates, 267.
Market Gardens, 318, 383.
Marketing, Internal, 361.
Marketing of Dairy-produce, 355-357, 400.
Marketing of Farm-produce, 352-362, 400.
Marriages, 60, 65-67, 72-81, 852.
Masseurs, Registration of, 121.
Massey Agricultural College, 144, 159, 160, 370.
Matches, Fixed Price for, 698.
Materials used in Factories, 450.
Maternal Mortality, 103-105, 132.
Maternity Allowances, 561, 562.
Maternity Benefits, 549, 550.
Maternity Hospitals, 132, 549.
Maternity Nurses, 120, 133, 549.
District, 133.
Maternity Services, 132.
Matured Assurance Policies, 618, 619, 620.
Maturity of Loans, Dates of, 522, 524, 580.
Mauke Island, 2, 836.
Mean Population, 38, 39, 851.
Mean Time, 827.
Measures and Weights, 122, 333.
Meat—
Consumption of, 788-790.
Export Control, 405.
Export of, 203-220, 402-405, 858.
Fixed Price for, 698.
Freezing-works, 460, 816.
Inspection of, 339.
Levy on Exports, 247.
Local Consumption of, 788-790.
Purchase for War Purposes, 358-359, 698.
Retail Prices of, 703, 704, 705, 707.
Medical Benefits, 548, 550.
Medical Inspection of Schools, 124.
Medical Practitioners, 118, 548.
Medical Services, 118-133, 548-551.
In Cook Islands, 837.
In Western Samoa, 844.
Members of Lodges, 640, 643.
Members of Parliament, 24, 873-875.
Mental Hospitals, 136-139, 548.
Mercantile Marine, 262-268.
Pensions for Members of, 831.
Merchandise, Exports of, 191-198, 200-221.
Merchandise, Imports of, 191-198, 222-241, 249-251.
Mercury, 428, 429, 432.
Metal Reserves of Banks, 588, 592, 611, 865.
Meteorology, 11-17, 304.
Midwives, 120, 133, 549.
Migration, External, 34, 39-45, 851.
Migration, Internal, 47.
Mileage of—
Commercial Air Services, 303.
Main Highways, 288, 290, 291.
Railways, 270, 274, 278, 868.
Roads, 286.
Telephone Lines and Wire, 312.
Tramway Routes, 279, 285.
Mileage-tax, 288, 289, 292, 505, 507.
Military Colleges, 184.
Military Districts, 184.
Military Establishments, 184.
Military Forces, 181-186.
Military Pensions, 550, 551-555.
Milk—
Consumption of, 788-790.
Control of Prices of, 699.
For School-children, 124, 154.
Used in Dairy Factories, 397, 461.
Examination and Testing of, 122, 340, 396.
Milking-machines, 349.
Milk-products (see Dairy-produce).
Milling-wheat, 376.
Mills, 440-467.
Mineral Waters, 829.
Minerals, 428-139.
Miners’ Benefits, 545, 550.
Miners’ Pensions, 550.
Miner’s Phthisis, 439, 545.
Minimum Wage-rates, 718-725, 734-736, 741, 753.
Mining, 428-439.
Accidents, 105, 433, 439, 774, 781.
Act, Examinations under, 439.
Acts, 737.
Advances, 438.
Produce consumed locally, 788, 794.
Produce exported, 200-220, 429.
Scholarships, 438.
Subsidized Prospecting, 438.
Value of Production, 428, 821.
Ministers of each Denomination, 79.
Marriages by, 78.
Ministries, Successive, 870.
Ministry, Labour, 872.
Minors, Marriages of, 72, 78.
Mission Schools, 144, 148, 838, 841, 845.
Missionaries, Arrival of, 20.
Mitiaro Island, 2, 836.
Monetary Benefits, Social Security, 541-551.
Money-orders issued and paid, 310, 867.
Morbidity, 110-116, 641.
Morioris, 19.
Mortality (see Deaths).
Of Insured Persons, 622.
Of Members of Friendly Societies, 641.
Mortgage Corporation, 532.
Mortgage Exemption, 508, 660, 676-678.
Mortgage Indebtedness, 657.
Mortgagee, Rights of, 650.
Mortgagees’ Indemnity Insurance, 513, 627.
Mortgages, 362, 649-662, 671-678.
State Advances, 532-537.
Mortgagors and Lessees Rehabilitation Act, 362, 531, 533, 536, 651, 663, 704.
Mortgagors Liabilities Adjustment Commissions, 651.
Mortgagors’ Relief, 362, 531, 533, 536, 650.
Mothers, Ages of, 64-71.
In Illegitimate Cases, 68.
In Still-born Cases, 70.
Motion-picture Film-tax, 505, 515.
Motive-power in Factories, 448.
Motor Traffic Offences, 178.
Motor Transport, 284, 288, 293-298.
Motor-engineering Works, 466.
Motor-omnibus Traffic, 284, 288, 293, 294, 296.
Motor-spirits—
Consumption of, 794.
Fixed Prices for, 698.
Restrictions on Use of, 295.
Taxation on, 245, 248, 288, 289, 296, 507.
Motor-vehicles—
Accidents, 106, 164, 178, 298.
Country of Manufacture, 295.
Dormant Registrations, 294.
Drivers’ Licenses, 292, 293.
Duty on, 245.
Examination of, 293.
Insurance, 626, 627.
Licensed for Goods-services, 295-298.
Licensed for Passenger-services, 295-297.
Operated by Tramway Authorities, 284.
Registration: Licenses, Fees, &c., 288, 289, 292, 293-298, 507.
Registration of, 293-295.
Speed Limit, 293.
Taxation, 288, 289, 292, 505, 507.
Motor-vessels registered, 262.
Motor-works, 466.
Mountains. 3.
Multiple Births, 63-65.
Municipal Tramways, 279-285.
Municipalities (see Boroughs).
Mutton, Consumption of, 788-790.
Mutton exported, 203-220, 402.
Mutual Fire Insurance, 633, 638.

N.

Nails, Fixed Prices for, 698.
Nassau Island, 2, 837.
National Broadcasting Services, 11, 158, 304, 795-801, 828.
National Endowments, 323, 409.
National Expenditure Adjustment Act, 368, 531, 606, 657, 704, 744.
National Military Reserve, 185.
National Parks, 318, 323.
National Prohibition, 826.
National Provident Fund, 561.
National Savings Accounts, 518, 604.
National Savings Act, 830.
National Savings Bonds, 518.
National Security Tax, 516.
National Wealth, 670.
Nationality, 45.
Of Migrants, 41.
Of Naturalized Persons, 45.
Of Vessels, 263.
Native Appellate Court, 329.
Native Bush, 318, 374, 409, 414.
Native Constables, 165.
Native Fresh-water Fishes, 425.
Native Grasses, 318, 382.
Native Housing, 332.
Native Land Court, 329, 831.
Native Lands, 316, 328-332.
Native Population, 34, 55.
Native Schools, 144, 148, 150, 152, 153, 853.
Native Succession Duty, 512.
Native Trust Office, 329.
Native-land Purchase, 328.
Natives (see Maoris).
Nativity, Order of, 62, 70.
Natural Increase of Population, 36, 61.
Naturalization, 45.
Nauru Island, 2, 847-849.
Bibliography of, 900.
Naval Cadetship Examinations, 145, 188.
Naval Defence, 186-190.
Expenditure on, 190.
Naval Reserve, 187, 190.
Naval Station, 187.
Navigators Islands (see Western Samoa).
Neo-natal Deaths, 95-98, 109.
Nephrite, 436.
Net State Indebtedness, 529, 861.
New Zealand Coinage and Currency, 607-612.
New Zealand Mean Time, 827.
New Zealand Representatives Abroad, 880.
New Zealand University, 144, 145, 159-161, 853.
Newspapers—
Posted, 309, 867.
Registered, 310.
Night Letter-telegrams, 311.
Nisi Decrees in Divorce, 80.
Niue Island, 2, 34, 221, 839-842.
No-license Issue, 826.
Nomination of Assisted Immigrants, 43.
Non-resident Traders, Incomes of, 692.
Note-issue, 586, 588, 591, 598, 610-612.
Notes in Circulation, (sec Bank-notes).
Notification of Births, 58.
Notification of Diseases, 110, 117.
Noxious Weeds Eradication, 363.
Nukunono Island, 3, 847.
Nullity of Marriage, 80.
Nurseries and Plantations, 318, 383, 417-421.
State, 417.
Nurses—
Dental, 125.
District, 133.
Maternity, 120, 133, 549.
Pensions for, 552.
Plunket, 133.
Registration of, 120.
Retiring-allowances to, 561.
School, 124.

O.

Oatmeal, Consumption of, 790.
Oats, 374, 375, 377, 380, 855.
Duty on, 350.
Exported, 204, 205.
Varieties of, 377.
Observatory, Time Signals from, 798, 828.
Occupation of Land, 316-318.
Occupation with Right of Purchase, 323, 325.
Occupations of Bankrupts, 666, 667.
Ocean Cables, 314.
Ocean Island, 847-849.
Offences, 163-180.
By Children, 154, 175.
By Maoris, 177.
By Women, 166, 168, 176, 178.
Reported to Police, 180.
Offenders Probation Act, 174.
Officers’ Certificates (Marine), 267.
Officers’ Training Corps, 184.
Offices Act, Shops and, 735.
Official Assignees, 663-667.
Official Representatives Abroad, 880.
Officiating Ministers, 79.
Oil-wells, 435.
Old-age Pensions, 22, 550, 729.
Old-peoples’ Homes, 133.
Omnibus Traffic, 284, 288, 293, 294, 296.
Omnibuses licensed, 294.
Onekaka Iron-ore, 430, 438.
Onions, 361, 374, 380.
Duty on, 350.
Fixed Price for, 698.
Opium, Prohibition of, 122.
Opossum-skins exported, 214, 217, 218.
Opticians, Registration of, 120.
Oranges—
Consumption of, 791.
Fixed Price for, 698.
Marketing of, 361, 367.
Orchards, 318, 374, 383-386.
Orchard-tax, 386.
Ordinance, Census, 28.
Ordinary Life Assurance, 616-619, 622-624.
Organization of Industry, 456, 822-824.
Organization, Statistical, 28-33.
Origin of Immigrants, 41.
Origin of Imports, 225, 229-241.
Ornamental Stones, 436.
Orphanages, 133-135.
Orphanhood, 90-93.
Orphans’ Benefits, 544, 550.
Ottawa Agreement, 233, 242, 251.
Outlying Islands, 1, 833.
Out-patients, 131.
Maternity Hospitals, 133.
Output, of Factories, 442, 443, 456-458, 459.
“Overcrowding” in Dwellings, 473.
Overdraft Authorities, 593.
Overdraft Rates, 605.
Overseas Air Services, 303.
Overseas Air-mails, 307.
Overseas Companies, 813-817.
Overseas Funds of Banks, 197, 588, 592, 600.
Overseas Parcel-post, 310.
Overseas Payments, 196-198, 525, 579.
Overseas Representatives, 880.
Overseas Shipping, 257-261.
Overseas Trade, 191-261, 857-860.
Overseas-passenger Duty, 513.
Overtime in Factories, 458.
Oysters, 423, 424.

P.

Pacific Cable, 314.
Pacific Islands, Annexed, 2, 833-842.
Packet Licenses, 825.
Palmerston Island, 2, 837.
Pan-American Airways, 304.
Papers, Parliamentary, 32.
Paralysis, Infantile, 110, 111, 116, 118.
Parcel-post, 309, 310.
Parents—
Ages of, 64-71, 90, 91.
Duration of Marriage of, 66, 81.
Issue left by, 90-93.
Previous Issue of, 64.
Parks, National, 318, 323.
Parliament, 21-27.
Members of, 873, 874.
Parliamentary Elections, 21, 824.
Parliamentary Papers, 32.
Parliamentary Under-Secretaries, 24.
Parliaments, Successive, 873.
Parry (Mauke) Island, 2, 836.
Party-line Telephones, 312.
Passenger-mileage, Tramways, 279, 281, 285.
Passengers—
Aero Club, 305.
Commercial Aircraft, 303.
Inter-Island, 47.
Motor-vehicle, 284, 297.
Overseas, 39, 851.
Railway, 275, 868.
Tramway, 279, 281, 285.
Passenger-service Licenses, 297.
Passenger-tickets. Duty on, 513.
Passion-fruit, 318.
Passports, 43.
Pastoral and Agricultural Production, 338-408, 855, 856.
Value of, 821.
Pastoral Produce—
Consumed locally, 346-348, 787-791.
Export Prices Indexes, 712, 714, 715, 717.
Exported, 201-220, 346-348, 858, 859.
Gross Farming Income, 340-348.
Prices Indexes, 343, 345, 348.
Pasture Grasses, 374, 382.
Patents, Designs, and Trade-marks, 818.
Patients in Mental Hospitals, 136-139.
Patients in Public Hospitals, 111-116, 127-131.
Payments Overseas, Balance of, 196-198.
Peaches, 385, 791.
Peaks, Altitude of, 3, 4.
Pears, 361, 385.
Consumption of, 791.
Purchase by State, 359, 364.
Peas, 374, 375.
Export of, 203-220.
Pelts. Export of, 203-220, 260.
Penal Institutions, 170-173.
Penalty on Unpaid Rates, 571.
Penrhyn Island, 2, 837.
Pensions, 540, 550-562, 695, 830, 831.
Permanent Building Societies, 644-648.
Permanent Heads of Departments, 876.
Permanent Military Forces, 183.
Permits and Passports, 43, 44.
Permits, Building, 475-481.
Personal Accident Insurance, 626.
Petitions—
Bankruptcy, 664.
Divorce, 79-81.
Petrol—
Consumption of, 794.
Fixed Prices for, 698.
Restrictions on Use of, 295.
Taxation on, 245, 248, 288, 289, 296, 507.
Petroleum, 435.
Pharmaceutical Benefits, 548.
Pharmacy, 122.
College of, 123.
Plan, 823.
Phormium, 318, 387.
Fibre exported, 203-220, 860.
Grading of Fibre, 340.
Mills, 464.
Phosphate Rock, 436.
From Nauru Island. 2, 847-849.
Phthisis, 98, 99-101, 107-109, 110, 111, 116, 131, 138.
Maori Deaths from, 107-109.
Miner’s, 439, 545.
Physical Education, 145, 154.
Physiography, 1-7.
Pickle-factories, 462.
Pig Products, 365.
Pig-meat, Consumption of, 788-790.
Pig-recording, 366.
Pigs, 365, 389, 400-402, 856.
Pigs slaughtered, 404.
Pilots, Air, 300, 305, 307.
Pisciculture, 426.
Placement Service, 762.
Plant Research, 340, 370, 413.
Plantations, 318, 374, 383, 417-421.
State, 417.
Plants, New Zealand, 18.
Platinum, 428, 432.
Pleasant (Nauru) Island, 2, 847-849.
Plumbers, Registration of, 121.
Plunket System, 93, 133.
Plural Births, 63.
Poisons, 105, 122.
Police Force, 164-166.
Offences reported to, 180.
Superannuation, 556.
Policies, Insurance, 616-639.
Poliomyelitis, 110, 111, 116, 118.
Polling—
At General Elections, 824.
At Licensing Polls, 826.
Population, 34-57, 851.
Age Distribution, 54.
Of Cook Islands, 34, 838.
Of Kermadec Islands, 34, 834.
Of Nauru Island, 849.
Of Niue Island, 34, 840.
Of Tokelau Islands, 34, 847.
Of Various Countries, 57.
Of Western Samoa, 34, 844.
Of World, 56.
Pork, Consumption of, 789.
Pork exported, 203-220, 404.
Portfolios of Ministers, 872.
Ports—
Of Entry, 257.
Of Registry, 262.
Shipping of, 265.
Trade of, 257-261.
Post Office Employees, 315.
Accidents to, 773-782.
Superannuation of, 556.
Post Office Investment Certificates, 518.
Post Office Savings-bank, 600-604, 606, 866.
Postal and Telegraphic, 309-315, 867.
Postal Notes, 311, 867.
Post-primary Education, 144, 150-152, 153, 853.
Post-war Changes, 22.
Potatoes, 374, 378.
Duty on, 350.
Export of, 203-220, 378.
Varieties of, 379.
Pottery-works, 465.
Poultry, 366, 406.
Poultry-runs Registration, 366, 407.
Pounamu, 436.
Power Boards, 563, 565-580, 804, 864.
Power, Electric (see Electric).
Power used in Factories, 448.
Power used on Farms, 349.
Preferential Tariff, 242, 251-256.
Pregnancy, Diseases, &c., of, 99, 103-105, 110, 111, 116, 117,132.
Premiers, Successive, 870.
Premium Income, 616-639.
Prevention of Crime Act, 172.
Prevention of Forest-fires, 413.
Prevention of Profiteering Act, 699.
Previous Issue of Parents, 64.
Price Investigation, 697.
Price Levels, Spread in, 345.
Prices, 697-717.
Effect on Exports, 192, 219.
Effect on Farm Expenditure, 345, 714.
Effect on Imports, 192.
Fixation of, 356, 357-360, 367, 369, 696-699.
Guaranteed, 356.
Of Fertilizers, 369.
Of Gold, 429.
Of New Zealand Stocks, 525.
Producers’, 345, 822.
Primage Duty, 243, 248.
Primary Production, Council of, 370.
Primary Products—
Consumption of, 346-348, 787-791.
Marketing of, 352-362, 400, 405.
Purchase for War Purposes, 357-360.
Primary Schools, 144, 146-149, 153, 853.
Principal Events, 883-888.
Printing Establishments, 466.
Prisons and Prisoners, 170-174, 854.
Prisons Board, 171, 173.
Private Assignments, 666.
Private Companies, 813-817.
Private Dwellings, 471-481, 487-489.
Private Gardens, 383.
Private Hospitals, 131, 549.
Private Income, Aggregate, 695, 785.
Private Mental Hospital, 138.
Private Radio-stations, 314.
Private Railways, 278.
Private Savings-banks, 603, 606.
Private Schools, 144, 148, 150, 153, 853.
Private Wealth, 668-670.
Probation, 174.
Probationer Teachers, 157.
Proclamation of British Sovereignty, 2, 20.
Producers’ Equipment—Imports, 227, 228.
Producers’ Materials—Imports, 227, 228.
Production—
Agricultural and Pastoral, 338-408, 821, 855, 856.
Dairy, 398,461,821.
Districts, Exports of, 257.
Diversification of Farm, 365-369.
Factory, 440-467, 821.
Fisheries, 821.
Local Consumption of, 346-348, 783-794.
Mineral, 428-439, 821.
Timber, 415, 821.
Value of, 696, 820-822.
Volume of, 343-348, 822.
Wool, 392-395.
Professors, University, 159, 160.
Profiteering, Prevention of, 699.
Profit-sharing, 730.
Programmes, Radio, 797, 801.
Prohibited Immigrants, 44.
Prohibited Imports, 245.
Prohibition Issue, 826.
Prohibition Orders, 177.
Promotion of Employment, 761-763.
Promotion of Industries, 440, 822-824.
Prorogation of Parliament, Dates of, 873.
Prospecting, State Aid to, 438.
Prospecting-drills, Government, 438.
Protection of Wages, 742.
Provident Fund, National, 561.
Provincial Districts, 564.
Area and Population of, 47.
Building and Construction in, 482.
Dairy Factories in, 398.
Factory Production in, 443.
Stone Quarries in, 437.
Provincial Education Boards, 140.
Provincial Governments, 22, 269, 564.
Provisional State Forests, 409.
Public Clocks, 829.
Public Companies, 455, 813-817.
Public Debt, 518-530, 861.
Repayment of, 497, 499, 519, 521, 522, 527.
Public Domains, 318.
Public Finance, 490-539, 861, 862.
Public Health, 117-139.
Diplomas, 118.
Public Hospitals (see Hospitals).
Public Reserves, 316, 318, 323.
Public Schools, 140-158, 853.
Public Service, 877-879.
Board of Appeal, 879.
Civil Service Act Pensions, 550, 555.
Cost-of-living Bonuses, 741.
Employees, 879.
Entrance Examination, 145, 879.
Superannuation, 556-560.
Public Trust Office, 812.
Public Wealth, 668.
Public Works—
Accidents, 773-782.
Employees, 763.
Five-day Week on, 753.
Fund, 498-500, 862.
Programme, 753.
Railway Construction, 270, 500.
Road Construction, 287, 500.
Publicans’ Licenses, 825.
Publications—
Census and Statistics Department [facing p. 1], 28-32.
Department of Agriculture, 339.
Education Department, 158.
General Bibliography, 888-900.
Lands and Survey Department, 337.
Mines Department, 438.
Register of, 310.
Statistical Bibliography, 28-33.
Publishing Works, 466.
Puerperal Accidents, &c., 99, 103-105, 110, 111, 116, 117, 132.
Puisne Judges, 875.
Pukapuka Island, 2, 837.
Pulmonary Tuberculosis (sec Phthisis).
Pulse Crops, 375.
Pumice, 428.
Pumpkins, 381.
Punishments by Courts, 166-180.
Pupils, School, 146-154, 853.
Purchase of Land for Settlement, 324-327.
Pure Food Laws, 121.
Purpose or Use of Imports, 227.

Q.

Quackery-prevention, 122.
Quadruplets born, 63.
Quarries, 436, 773.
Quartz Mining, 429, 430.
Quicksilver Mining, 428, 429, 432.
Quinnat Salmon, 423, 426.
Quinquennial Census, 34-38, 46-49, 55, 757, 826.
Quorum—
Executive Council, 24.
House of Representatives, 26.
Quota, Country, 25.
Quotations, New Zealand Stock, 525.

R.

Rabbit Districts, 363, 563, 565-580, 765.
Rabbit-skins exported, 203-220.
Race Aliens, 42.
Racing, Tax on, 505, 513.
Radio Advertising, 800.
Radio Broadcasting, 314, 795-801.
Weather Forecasts, 11, 304.
Radio Communication, 313, 838, 841.
Radio Fog-signals, 267.
Radio Licenses, 799.
Radio Stations, 797, 801.
Radio Time-signals, 798, 828.
Radio-beacons, 267, 303.
Raffle-tickets, Duty on, 513, 827.
Rail-cars, 271.
Railway Accidents, 106, 278, 298, 773-782.
Railway District, 563, 570-580, 765.
Railway Equipment—Imports, 227, 228.
Railway Fares, School-children’s, 152.
Railways, 269-278, 868.
Private, 278.
Revenue and Expenditure, 272-275, 495, 496, 501, 868.
Superannuation Fund, 560.
Rain Forests, 414.
Rainfall, 12-14, 17.
Rakahanga (Reirson) Island, 2, 837.
Rarotonga Island, 2, 836.
Rateable Value of Land, 584.
Rates collected by Local Authorities, 517, 570-572, 809, 863.
Rates of Exchange, 586, 612-615.
Rates of Interest—
On Building Societies’ Deposits, 607, 648.
On Fixed Deposits, 605, 607.
On Friendly Societies’ Funds, 642.
On Local Authorities’ Debt, 578.
On Mortgages, 656.
On Public Debt, 522, 525.
Paid by Savings-banks, 606.
Reduction of, 368, 522, 531, 579, 651, 657.
Rates of Wages, 447, 484, 718-725, 734-736, 741.
Emergency Regulations, 733, 741.
Rates of War Pensions, 552.
Rating by Local Authorities, 567.
On Unimproved Value, 567.
On Urban Farm Lands, 567, 582.
“Real” or Effective Wage-rates, 720.
Rebate of Rates, 572.
Receiving-homes, 133-135, 155.
Reciprocal Tariff and Trade, 251-256.
Records, Early Statistical, 28.
Recruiting—
Air Force, 307.
Military, 181-185.
Naval, 188-190.
Police, 165.
Redemption of Loans, 497, 499, 519, 521, 522, 527, 579.
Redemption of Mortgages, 649.
Reduction of Interest, 368, 522, 531, 536, 579, 651, 657.
Reduction of Mortgages, 362, 536, 650.
Reduction of Public Debt, 519.
Reduction of Rent, 704, 744.
Reduction of Wages, 719, 741.
Re-exports, 206, 209, 218.
From United Kingdom, 209.
Reformative Detention, 156, 171, 173.
Refuge Homes, 133-135, 154-156.
Refund of Rates, 572.
Refunds to Racing Clubs, 514.
Regional Planning, 569.
Registered Articles posted, 309.
Registered Companies, 813-817.
Registered Mortgages, 652-657.
Registered Vessels, 262.
Registrars, Marriages before, 72, 78.
Registration—
Of Adopted Children, 69.
Of Apiaries, 408.
Of Applicants for Employment, 759.
Of Births, 58.
Of Chemists, 122.
Of Companies, 813.
Of Dairies, 398.
Of Dairy Companies, 397.
Of Deaths, 82.
Of Deeds, 319.
Of Dentists, 119.
Of Designs, 818.
Of Electors, 26.
Of Friendly Societies, 640.
Of Industrial Unions, 754.
Of Land Titles, 319.
Of Maori Births, 59.
Of Marriages, 72.
Of Masseurs, 121.
Of Maternity Nurses, 120.
Of Medical Practitioners, 118.
Of Midwives, 120.
Of Mortgages, 652-654, 655.
Of Motor-vehicles, 293-295.
Of Newspapers, 310.
Of Nurses, 120.
Of Onion Growers, 380.
Of Opticians, 120.
Of Orchards, 386.
Of Patents, 818.
Of Pharmaceutical Chemists, 122.
Of Plumbers, 121.
Of Poultry-runs, 407.
Of Private Schools, 149.
Of Still-births, 58, 69.
Of Surveyors, 333.
Of Trade-marks, 818.
Of Trade-unions, 754.
Of Unemployed, 758-763.
Of Vessels, 262.
Registry, Ports of, 262.
Regulation of Prices, 697-699.
Reirson (Rakahanga) Island, 2, 837.
Relief. Charitable, 127-129.
Relief Fund. Coal-miners’, 439.
Relief of Mortgagors, 362, 531, 533, 536, 650.
Relief of Unemployed, 438, 546, 550, 759-765.
Religious Denominations—
Marriages by Ministers of, 78.
Officiating Ministers, 79.
Religious Professions, 826.
Renewable Leases, 322, 325, 326.
Rent Reduction, 704, 744.
Rent Restriction, 704, 732, 744.
Renters, Film, Taxation of, 505, 515.
Rents, House, 703-705, 707, 744.
Repatriation, 326, 327.
Repayment of Public Debt, 497, 499, 519, 521, 522, 527.
Reports, Departmental, 32.
Representatives abroad, 880.
Representatives, House of, 21, 25.
Members of, 874.
Reproduction Rate, 37.
Research, Agricultural, 339, 370.
Research, Coal, 433.
Research, Educational, 161.
Research Institute, Wheat, 370, 376.
Research, Mining, 438.
Research, Silvicultural, 413.
Reserve Bank, 197, 198, 199, 222, 585-588, 598-600, 605, 610-615.
Reserves, Bank, 590.
Reserves, Military, 181-185.
Reserves, Naval, 190.
Reserves, Public, 316, 318, 323.
Restitution of Conjugal Rights, 80.
Restoration. Salary and Wages, 720, 741.
Restriction, Immigration, 44.
Restrictions on Imports, 198, 222-224, 245.
Retail Prices, 345, 699-708, 714, 715, 717.
Retardate Children, 145, 154-156.
Returnable Income, 686.
Revaluations, 582.
Revenue, Customs, 247-251, 505, 506.
Revenue, Local Authority, 128, 570-572, 863.
Revenue, Public, 490-503, 862.
Revenue, Railway, 272-274, 868.
Revenue, Social Security Fund, 502, 541.
Reverted Securities, 537.
Review, Court of, 651, 875.
Review of Legislation, 829-831.
Rhodes Scholarships, 160.
Rifle Clubs, 185.
River Districts, 563, 565-580, 765.
Rivers, 5.
Road Districts, 563, 565-580, 765.
Bridges in, 286.
Mileage of Roads, 286.
Road Transport, 284, 295-299.
Reading Costs, 292.
Roads, 286-299.
On Goldfields, Subsidized, 438.
Taxation, 245, 248, 288, 292, 29-3, 503, 505, 506.
Rock Oysters, 423, 424.
Rocks, Geological Account of, 7.
Rolling-stock—
Railway, 271.
Tramway, 279, 284.
Roman Catholic Schools, 149.
Root Crops, 318, 374, 380.
Ross Dependency. 2, 3, 850.
Bibliography, 900.
Whaling, 850.
Rotorua Thermal Springs, 829.
Royal Naval Reserves, 190.
Royal New Zealand Air Force, 307, 308.
Rural Advances, 537.
Rural Education, 152-154.
Rural Housing, 475, 480, 570, 830.
Rural Intermediate Credit, 350, 537.
Rural Mail Deliveries, 309.
Rural Mortgages, 533, 654, 658-662, 672-678.
Rural Mortgagors Final Adjustment Act, 362, 650.
Rural Population, 48.
Country Quota, 25.
Rye-grass, 381.

S.

Sacks, Fixed Price for, 698.
Sailing-vessels registered, 262.
St. Helens Hospitals, 132, 549.
Salaries and Wages. Estimate of, 695.
Salaries of Members of—
Executive Council, 25.
House of Representatives, 26.
Legislative Council, 24.
Salary and Wage Cuts, 719, 741.
Salary and Wage Restoration, 720, 741.
Sale of Food and Drugs, 121.
Sales of State Timber, 416, 417.
Sales Tax, 505, 516.
Salmon. Acclimatization of, 426.
Samoa (see Western Samoa).
Sanatoria, 111, 131.
Sanitary Plumbing, 121.
Sanitation, 117-125.
Sash and Door Factories, 464.
Sauce factories, 462.
Sausage-casing, Expert of, 203-220.
Savage (Niue) Island, 2, 34, 839-842.
Savai’i Island, 843.
Savings Accounts (National), 518, 830.
Savings Bonds (National). 518, 830.
Savings-banks, 600-604, 606, 866.
Sawmills, 415, 464.
Scaffolding Accidents, 773-782.
Scenic Reserves, 318.
Scheelite, 358, 431.
Schemes, Unemployment Relief, 761.
Scholarships, 159, 438.
School Committees, 140-142.
School Journal, 158.
School Savings-banks, 602.
School System, 142-144.
School-children, 144-162, 853.
Board and Conveyance of, 152.
Dental Treatment of, 125.
Medical Inspection of, 124.
Schools, 144-162.
Consolidation of, 152.
Dental Clinics, 125.
Of Agriculture, 159, 160.
Of Mines, 159, 438.
School-teachers, 156-158.
Superannuation, 559.
Scrap-metal, Fixed Price for, 698.
Scrub Lands, 318.
Sea-fisheries, 422-425.
Seals, 424.
Seamen Act, Shipping and, 738.
Season Tickets, Railway, 275.
Secondary Education, 144. 150-152, 153, 853.
Second-growth Land, 318.
Secular System of Education, 140.
Seed-gardens, 318, 383.
Seeds, Grass and Clover—
Certification of, 340, 370.
Exported, 203-220.
Seismology, 7-10.
Selections of Lands, 324-327.
Senior Cadets, 181, 185.
Sentences on Criminals, 166-180, 854.
Separate Rates, 567.
Separation, Judicial, 80.
Separators, Cream, 349.
Service, Public (see Public Service).
Service-car Licenses, 294, 295-297.
Services—
Air, 307.
Army and Navy, 181-190.
Sessions, Parliamentary, Successive, 873.
Settlement and Colonization, 20.
Settlement of Industrial Disputes, 745-748, 770-772.
Settlement of Land, 322-327.
Settlement. Small-farm, 326, 368, 831.
Settlers, Advances to, 323, 327, 531-539.
Sex Proportions, 37.
Sexes of Children born, 62, 63, 69, 71.
Sexes of Factory Employees, 444-448.
Share Prices. Index Numbers, 715-717.
Sharebrokers’ Licenses, 513.
Shares in Building Societies, 645.
Shares, Labour, 730.
Shearers’ Wage Rates, 742.
Shearing-machines on Farms, 349.
Sheep, 389, 390-392, 856.
Sheep and Lambs slaughtered, 402.
Sheep-skins and Pelts exported, 203-220, 358.
Sheep-skins, Purchase for War Purposes, 358, 360.
Sheet-metal Works, 465.
Shipbuilding-works, 467.
Shipping, 262-268.
Shipping and Seamen Act, 738.
Ships (see Vessels).
Shoe and Boot Repairs, Fixed Prices for, 698.
Shoe-factories, 463.
Shops and Offices Act, 735.
Short-time in Factories, 458.
Shortwave Broadcasts, 798.
Sick Funds, 278, 439, 501, 642, 737.
Sickness, 110-116, 544, 547, 548, 550, 641.
Signals, Time, 798, 828.
Silica Sand, 428.
Silver, 428, 429, 430.
Coins, New Zealand, 608-610.
Exported, 203-220, 429.
Silviculture, 417, 421.
Singapore Naval Base, 187.
Sinking Funds, State, 528, 861.
Skins and Hides, Export of, 203-220.
Slaughter of Animals for Food, 402-404.
Slaughterhouses, 339, 402-404.
Slot Telephones, 312.
Sluicing, 430.
Small Farms Act, 326, 368, 831.
Snares Islands, 1, 833.
Snowfall, 15.
Soap-factories, 463.
Social Hygiene Regulations, 118.
Social Security, 540-551, 693, 695, 829.
Benefits, 127, 132, 139, 540-551, 760.
Fund, 502, 541.
Registration Fee, 540.
Taxation, 502, 504, 505, 515, 540.
Social Welfare, 127-129.
Soil Erosion, 411.
Soil Surveys, 370.
Solander Island, 1, 833.
Soldiers, 181-186.
Acquisition of Land by, 326, 327, 831.
Financial Assistance to, 535, 536.
Loan Indebtedness, 521.
Pensions, 550, 551-555.
War Bursaries for Dependants, 151.
Source of Income, 683.
South Africa, Reciprocity with, 253.
South African War Pensions, 550, 555.
Southern Alps, 3, 4, 11, 12.
Sown Grasses, Extent of, 318, 374, 380-382.
Spas, 829.
Special Articles in Previous Issues, 901.
Special Parliamentary Reports, 33.
Special Rates, 567.
Special Schools, 154-156.
Specie, Movement of, 199, 857.
Specific Customs Duties, 244.
Speed Limit, 293.
Spinsters marrying, 75, 76, 77.
Spirits, Consumption of, 794.
Spread in Price Levels, 345.
Staff Corps, 183.
Stakes, Tax on, 514.
Stamp Duties, 505, 513.
Estates certified for, 669.
Standard Surveys, 336.
Standardized Death-rates, 88-90.
For Cancer, 102.
Standardized Marriage-rates, 73.
Standards, Administration of—
Length, 333.
Weights and Measures, 122.
Standards, Main Highway, 291.
State Advances, 474, 521, 531-539, 743.
Corporation, 474, 532.
Mortgagors in Arrears, 537.
Reverted Securities, 537.
State Afforestation, 409-414, 417.
State Aid to—
Aero Clubs, 300, 304.
Afforestation, 418.
Building, 332, 474, 531-539.
Crown Tenants, 323.
Discharged Soldiers, 326, 327, 535.
Farming Industry, 322-327, 362-365, 371, 761.
Fruit Industry, 360, 364, 369.
Hospital Boards, 126-130.
Housing, 332, 474, 531-539.
Immigrants, 43.
Kauri-gum Industry, 436.
Local Authorities, 126-130, 290, 572.
Manufacturing, 440, 532, 823.
Mining, 437-439.
Prospecting, 438.
Purchasers of Private Land, 327.
Settlers, 323-327, 531-539.
Soldiers, 536.
Unemployed, 758-765.
Water-power Development, 802-804.
Wheats-growing, 350, 375.
Workers, 531-537.
State Assets and Liabilities, 668.
State Coal-mines, 434, 501.
State Employment Bureau, 758.
State Finance, 490-539, 861, 862.
State Forests, 409, 417, 501.
State Highways, 288.
State Housing, 332, 474, 478.
State Indebtedness, 518-530, 861.
State Insurance—
Accident, 628.
Fire, 638.
Life, 623.
State Lands (see Crown Lands).
State Maternity Hospitals, 132, 549.
State Placement Service, 762.
State Railways, 269-278, 868.
State Schools, 140-162, 853.
State Water-low, Supply, 803.
Stations, Radio, 797, 801.
Statistical Authority, 29.
Statistical Information, Latest [see For-front of Book].
Statistical Legislation, 28.
Statistical Organization, 28-33.
Statistical Publications—
Bibliography, 28-33.
Census and Statistics Department [facing p. 1], 29-32.
Statistical Records, Early, 28.
Statistical Summary, 851-869.
Status of Aliens, 45.
Statute of Westminster, 23.
Statutes of 1940, 829-831.
Steam-vessels registered, 262.
Sterling Exchange—
Holdings of, 588, 600.
Rates, 613.
Standard, 612.
Sterling Values of New Zealand Currency, 612.
Sterling Values of Trade, 191-199.
Stewart Island, 1, 832.
Oysters, 424.
Population, 52.
Still-births, 69-71, 98, 132.
Registration of, 58, 69.
Stipendiary Magistrates’ Courts (see Courts).
Stock, Live (see Live-stock).
Stock, Quotations for, 525.
Stone-quarries, 436.
Stones, Building and Ornamental, 436.
Stranding of Vessels, 268.
Street-cars, 279-285.
Streets and Roads, Length of, 286.
Strikes, 745, 748, 766-772.
Stud Sheep, 390, 391.
Students, University, 144, 159-161, 853.
Subdivision of Land, 326.
Submarine Cable, 314.
Subscribers, Telephone, 312.
Subsidies—
Main Highways, 289, 291, 503, 572.
On Rates, 572.
To Aero Clubs, 300, 304.
To Farming Industry, 363, 761.
To Hospital Boards, 126-130.
Subsidized Employment, 759-762.
Subsidized Prospecting, 438.
Subsidized Roads on Goldfields, 438.
Succession Duty, 510, 511.
Suffrage, 22, 26, 565.
Sugar Beet, 367.
Sugar, Consumption of, 793.
Sugar, Duty on, 244.
Sugar, Fixed Price for, 698.
Suicide, 99, 106, 108, 164.
Sulphur, 432.
Summary Convictions, 168, 854.
Summer Time (Daylight Saving), 827.
Sunday Island, 833.
Sunshine, 15, 17.
Superannuation, 556-562, 830.
Superannuation, Social Security, 541.
Superphosphate and Fertilizer Factories, 467.
Superphosphate, Fixed Prices for, 369, 698.
Supplementary Benefits (Social Security), 549.
Supreme Court (see Courts).
Surpluses, Consolidated Fund, 495.
Surrenders, Life Assurance, 618, 620.
Surtax, 243, 248.
Surveys, 333-337.
Geological, 437.
Of Coal Resources, 433.
Of Housing, 473, 569.
Of Ships, 267.
Survey System, 333.
Sustenance Allowances, 502, 695, 759, 760.
Suwarrow Island, 2, 837.
Sweepstakes, 827.
Swordfish, 425.
Sympathetic Strikes, 766-772.
Syphilis, 99, 118, 136.
Syrians, 42, 43.

T.

Table Mortgages, 532, 652, 657.
Takutea Island, 2, 837.
Tallow exported, 203-220, 358, 858.
Tallow, Purchase for War Purposes, 358, 360, 698.
Tanneries, 466.
Tariff Commission, 242.
Tariff, Customs, 242-256.
Tasman Empire Airways, 303.
Tasman’s Discovery of New Zealand, 19.
Tax, Land and Income, 368, 505, 507-510, 671-680, 681-693, 829.
Taxation, 504-517, 862.
Customs, 242-256, 505.
Employment Promotion, 501, 505, 515.
Local, 517, 567, 570-572.
Main Highways, 288, 289, 292, 296, 503, 506.
Motor-spirits, 245, 248, 288, 289, 292, 296, 507.
Orchards, 386.
Racing, 505, 513.
Sales, 505, 516.
Social Security, 502, 505, 515, 540.
War, 244-246, 504-506, 507, 510, 516, 517.
Taxis, 294.
Taxis, Air, 302-305.
Taxpayers, Income, 681-693.
Taxpayers, Land, 671-680.
Tea, Consumption of, 793.
Tea, Duty on, 244, 248.
Teachers’ Examinations, 145.
Teachers’ Superannuation Fund, 559.
Teachers’ Training Colleges, 156.
Teaching Aids, 158.
Teaching Profession, 156-158:
Technical Education. 144, 150-152, 153, 853.
Telegraph Services, 311, 313.
Telegraph, Time Signals by, 829.
Telephones, 311-313.
Temperature Records, 14, 17.
Tenants, Relief of, 650.
Tenure of Occupied Land, 317.
Tenures, Selection Lands, 322-327.
Terminating Building Societies, 644-648.
Termites, 831.
Territorial Air Force, 300, 307.
Territorial Forces, 181-184.
Third-party Risks Insurance, 627, 630.
Three Kings Islands, 1, 833.
Thunder, 16.
Tidal Survey, 336.
Tile-making, 465.
Timber—
Carried on Railways, 276, 277.
Consumption of, 415, 470.
Export Duty on, 246.
Exports of, 203-220, 416, 860.
Import Duty on, 245.
Imports of, 416.
Output, 415.
Plantations, 318, 374, 383, 417-421.
Resources, 410.
Sales, 416, 417.
State Activity, 416-418.
Trees, 411, 414-416, 418, 421.
Time lost—
In Factories, 458.
Through Industrial Accidents, 779.
Through Industrial Disputes, 766-771.
Time Service and Mean Time, 798, 827-829.
Tin, 432.
Tinware-works, 465.
Tire-tax, 245, 288, 289, 292, 507.
Title, Certificates of, issued, 320.
Titles, Compulsory Registration of, 319.
Tobacco, 367, 374, 386.
Consumption of, 793.
Duty on, 244, 247, 248.
Excise Duty on, 246, 248.
Exports of, 202, 203, 204, 205.
Fixed Price for, 367, 698.
Imports of, 225, 226, 227, 228, 235.
Toheroa, 423.
Tokelau Islands, 3, 34, 846.
Toll Communications, 311.
Tongareva (Penrhyn) Island, 2, 837.
Ton-miles, Railway, 277.
Tonnage handled at Ports, 257-261.
Tonnage of Registered Vessels, 262.
Tonnage of Shipping, 262-266.
Top-dressing, 382.
Topographical Surveys, 336, 365.
Total Returnable Income, 686.
Totalizator Investments, 514.
Totalizator, Taxation, 514.
Tourist Agents abroad, 880.
Tourist Attractions, 829.
Tourists, 39-40.
Tourists’ Rail Tickets issued, 276.
Town Districts, 563, 565-580.
Bridges in, 286.
Capital and Unimproved Values, 584.
Debt, 578.
Government Housing in, 478.
Mileage of Streets, 286.
Population, 53, 54.
Town Land, Mortgages on, 654, 658-662, 672-678.
Town-planning, 569.
Tractors on Farms, 349, 405.
Trade, 191-261, 857-860.
Agreements, 251-256.
Balance of, 191-199.
Cook Islands, 839.
Nauru, 849.
Niue Island, 841.
Of Ports, 257-261, 265.
Representatives, 880, 881.
Volume of, 193.
Western Samoa, 846.
Trade-marks, 818.
Trade-unions, 728, 754-757.
Trading Accounts, State, 501.
Trading Banks, 589-600, 865.
Trading Companies’ Deposits, 604, 607.
Traffic—
Accidents, 106, 278, 298.
Motor, 295-299.
Offences, 167, 176, 178.
Railway, 275-277.
Tramway, 277-285.
Training Farms, 155.
Training of Air Force, 300, 307.
Training of Defence Forces, 181-185.
Training of Police Recruits, 165.
Training of Teachers, 156.
Train-miles run, 271, 275, 277, 888.
Tramway District, 563, 568, 570-580.
Tramways, 279-285.
Accidents, 106, 298.
Cable, 285.
Transfer, Land, 319-321.
Transhipments of Cargo, 260.
Transit Trade, 209, 260.
Trans-Pacific Air Service, 304.
Transport, 262-308.
Co-ordination Board, 296.
Districts, Urban, 563, 565-580, 765.
Equipment, Imports, 227, 228.
Licensing Act, 296.
Trans-Tasman Air Service, 303.
Trawlers, 423.
Treasury Bills, 519, 522, 524, 595.
Treaty of Waitangi, 20, 319, 328.
Tree-planting, 417-421.
Trees, Indigenous, 414.
Trend of Population, 37.
Triennial Parliaments, 26.
Triplets born, 63.
Tropical Diseases in Samoa, 844.
Trout, Acclimatization of, 426.
Trustee, Native, 331.
Trustee, Public, 812.
Trustee Savings-banks, 603, 606.
Tuberculosis, 98, 99-101, 107-109, 110, 111, 116, 118, 131, 138.
Infant Mortality, Rate for, 98.
Maori Deaths from, 107-109.
Tung-oil Industry, 318, 367.
Tungsten-ore, 428, 429, 431.
Turkeys, 406.
Turnips, 374, 381.
Tussock Land, 318, 373, 382.
Twins and Triplets born, 63.

U.

Unclaimed Moneys, 601.
Undergraduates, 159.
Undesirable Immigrants, Exclusion of, 44.
Undeveloped Land, Settlement of, 323.
Undischarged Bankrupts, 663.
Unemployment, 472, 752, 758-765.
Benefits (Social Security), 546, 550, 760.
Convictions under Employment Promotion Act, 167.
In Building Industry, 472.
Small Farms Scheme, 326, 368.
Taxation, 502, 505, 515, 540.
Unexercised Overdraft Authorities, 593.
Unimproved Occupied Land, 318.
Unimproved Value of Land, 581-584.
Holdings, 658-662, 671-680.
Land-tax assessed on, 508, 679.
Rating on, 567.
Union (Tokelau) Islands, 2, 3, 846.
Unions, Trade, 728, 754-757.
United Kingdom, High Commissioner for, 881.
University Education, 144, 159-161, 853.
University Examinations, 118, 145.
University Professors, 159, 160.
University Scholarships, 159.
Unproductive Land, 316, 318.
Untenanted Houses, 474.
Upolu Island, 843.
Urban Areas—
Dwellings, 474.
Eire Losses, 635, 636.
Population, 49, 50.
Urban Drainage Districts, 563, 565-580, 765.
Urban Drift, 48.
Urban Farm Lands, Rating on, 368, 567, 582.
Urban Population, 48.
Urban Security, Mortgages on, 654, 658-662, 672-678.
Urban Transport District, 563, 565-580, 765.
Use or Purpose of Imports, 227.

V.

Valuation of Exports, 191, 200.
Valuation of Land, 581-584.
Value added in Manufacturing, 442, 443, 451, 457.
Value, in Sterling, of Dominion Trade, 191-198.
Value of—
Currency, 612-615.
Exports, Effect of Prices on, 192, 219.
Farm Production, 340-346, 820-822.
Goods available for Use, 690, 783-787.
Land Holdings, 658-662, 671-680.
Materials used in Factories, 442, 443, 450.
Production, 696, 820-822.
State Property, 668.
Veal slaughtered and exported, 404.
Vegetables, Consumption of, 790.
Vehicles—
Motor (see Motor-vehicles).
Railway, 271.
Tramway, 281, 284.
Venereal Diseases, 99, 116, 118, 136.
Vessels—
Employed in Fishing Industry, 423.
Entered and cleared, 263-266.
Nationality of, 263.
Registered, 262.
Survey of, 267.
War, 186-190.
Wrecked, 268.
Veterans’ Allowances, War, 550, 554.
Village-settlements, Tenures, 322.
Vinegar-factories, 462.
Vineyards, 318, 386.
Violent Deaths, 99, 105, 108, 114, 116, 164, 298.
Virgin Bush, Area of, 318, 374, 409.
Visible Trade-balance, 191-199.
Visitors to New Zealand, 39-40.
Visual Aids in Teaching, 158.
Vital Statistics, 58-116, 852.
Cook Islands, 838.
Niue Island, 841.
Viticulture, 318, 386.
Vocational Guidance, 152.
Volcanoes, 3.
Volume of Exports, 193, 219.
Volume of Farm Production, 340-348.
Volume of Goods available for Use, 785-788.
Volume of Trade, 193.
Voluntary Contributions to Hospitals, 127, 128.
Voluntary Mental Patients, 137.
Voluntary Enlistment, 181-185.
Voting—
At General Elections, 824.
At Licensing Polls, 826.
Qualifications, 26.
Vouchers, Audit of, 491.

W.

Wage, Basic, 724, 740-742.
Wage-earners, 757.
Wage-rates, 447, 484, 718-725, 734-736, 741.
Wages—
And Working Conditions, 732-743, 745-748, 753.
Estimate of, 695.
Increases in, 733.
Legislative Changes in, 740-742.
Lost through Industrial Disputes, 766-771.
Of Afforestation Employees, 420.
Of Building Employees, 482-484.
Of Electric-supply Employees, 807.
Of Factory Employees, 442-448.
Protection of, 742.
Reduction of, 719, 741.
Restoration of Cuts in, 720, 741.
Shearers’, 742.
Waitangi, Treaty of, 20, 319, 328.
Waitangi Treaty Site, Gift of, 319, 418.
Wakari Private Mental Hospital, 139.
War, 181-190, 307.
Bursaries for Soldiers’ Dependants, 151.
Cabinet, 24, 183, 871, 872.
Expenditure, 491, 497, 505.
Indebtedness, 521, 523.
Measures affecting Farm Produce, 357-360, 370.
Measures affecting Financial Transactions, 615.
Measures affecting Labour Legislation, 733, 748.
Pensions, 550, 551-555, 830, 831.
Taxation, 244-246, 504-506, 507, 510, 516, 517.
Veterans’ Allowances, 550, 554.
Warships, 186-190.
Water-power, 365, 802-811.
Water-supply and Irrigation, 365.
Water-supply Districts, 563, 564-580, 765.
Wealth, 668-680.
Weather, 11-17.
Weights and Measures, 122, 333.
Wellington—
Broadcasting Stations, 797, 801.
Building Values, 477.
Dwelling Construction Costs, 489.
Dwellings, 474, 478.
Fires, 635.
Population, 47, 48, 49, 50, 52.
Rainfall, 13, 17.
Retail Prices, 700-706.
Sales-tax Receipts, 517.
Shipping, 259-261, 265, 266.
Sunshine, 15, 17.
Temperature, 15, 17.
Trade of Port, 257-261, 265, 266.
Tramways, 279, 281-284.
Wind, 16.
Western Samoa, 2, 3, 842-846.
Bibliography of, 900.
Naturalization, 45.
Population of, 34, 844.
Radio-communications, 313.
Westminster, Statute of, 23.
Whale-oil, 423, 424, 850.
Whales and Whaling, 424, 850.
Wheat, 374, 375-377, 380, 855.
Consumption of, 376, 790.
Duty on, 350.
Export of, 204, 205.
Fixed Prices for, 697, 698.
Research Institute, 370, 376.
Restriction on Imports, 350.
Varieties of, 376.
Whey Butter, 398.
White Island Sulphur, 432.
Whitebait, 423, 425.
Whole Milk, Consumption of, 789.
Wholesale Licenses, 825.
Wholesale Prices, 708-711, 714, 715, 717.
Widowers, Remarriages of, 75.
Widows—
And Orphans, 93.
Benefits, 543, 550.
Pensions for, 550.
Remarriages of, 75.
Wills administered by Public Trust Office, 812.
Wind, 16.
Wine, Consumption of, 794.
Wine Licenses, 825.
Wine-makers’ Licenses, 825.
Wire (Telephone), Miles of, 312.
Wireless (see Radio).
Withdrawals from Savings-banks, 601-603, 866.
Wives’ Petitions in Divorce, 81.
Women—
Deaths of, in Childbirth, 103-105, 114, 116, 132.
Offences by, 166, 168, 176, 178.
Police, 166.
Suffrage for, 22, 26.
Wage-rates of, 447, 723, 724, 727.
Working-hours of, 725, 726.
Wool, 392-395.
Draft Allowance, 369.
Export Price Index, 712.
Exported, 203-220, 358, 858.
Purchase for War Purposes, 358, 393, 698.
Purchases of, 393.
Research, 370.
Stocks of, 394.
Used at Local Mills, 393, 467.
Woollen-mills, 467, 816.
Wool-scouring Works, 466.
Workers, Advances to, 531-537.
Workers’ Compensation, 625, 626, 628, 750-752, 774, 775.
Insurance, 626.
Workers’ Dwellings, 474, 533-535, 538, 743.
Workers’ Educational Association, 161.
Workers’ Unions, 728, 754-757.
Workers’ Weekly Railway Tickets, 276.
Working Conditions, Wages and, 732-743, 745-748, 753.
Working Railways Account, 272, 501.
Working-days lost through Industrial Disputes, 766-772.
Working-hours, 725-727.
Working-men’s Clubs, 640.
World Comparisons (see Comparisons).
World’s Population, 56.
Wrecks, 268.

Y.

Yields of Butterfat, 399.
Yields of Crops, 375-388, 855.
Youths, Subsidized Employment of, 762.

Z.

Zoology, 18.