7 oo NEW ZEALAND 



3 6 -7-3; (1910) 39-io. 4;(i9ii) 38.0.2. The imports and exports for the first six months 

 of 1912 were: imports, 10,281,641 ; exports, 14,339,086. 



The Preferential Tariff takes the form of a surtax on certain goods not being the produce 

 or manufacture of some part of the British Dominions. Out of the total of 486 items on 

 the Tariff 193 are scheduled under the surtax. The surtax was legalised in 1903. The 

 New Zealand Official Year Book says: "The value of imports from foreign countries has 

 never assumed large proportions, ranging from 13.5 to 17 per cent, of the total during the 

 past ten years. From 1899 to 1904 there was a steady increase, but since the latter year 

 the proportion has fallen a result ho doubt in a large measure due to the preferential 

 treatment of British goods." 



Reciprocity is provided for under the Customs Duties Act 1908, where any country, 

 being part of the British Dominions, agrees to reduce or abolish a duty against New Zealand 

 products or manufactures. Treaties under this Act are in force between New Zealand and 

 the Union of South Africa, Southern Rhodesia and Canada. 



Railways. The chief asset in which loan money has been invested in the Dominion is 

 the Railways. It is also the most profitable. According to the Railways report for the 

 year ended March 31, 1912 the year's earnings (which exceeded those of the previous year 

 .by 182,327) were 3,676,509, and the expenditure 2,465,896, showing a net profit on 

 working of 1,210,613, equal to a return of 3.98 per cent on the capital invested in the opened 

 lines and 3.70 on the opened and unopened lines. The lines opened for traffic were 2,808 

 miles, and the capital cost 30,506,089; the capital cost of opened and unopened lines was 

 32,689,179 in 1912. The entire railway system, with the exception of a few miles of private 

 lines used for specific purposes, is now owned and controlled by the government. 



Defence. The most interesting fact in connection with the Defence Forces has been 

 the operation of the compulsory training provisions of the Defence Act of 1909 (amended 

 1910). That Act provides for the gradual military training of every male New Zea- 

 lander from the age of 12 years to the age of 25, after which he must Serve in the Reserve 

 up to the age of 30. There are no distinctions and no exemptions; but those who, in 

 consequence of religious convictions, have a conscientious objection to bearing arms, 

 may be trained as far as possible in the non-combatant branches, of which ambulance 

 work is made a special feature. From 12 to 14 a boy is a junior cadet; then he is trans- 

 ferred to the senior cadets and becomes a member of the Military Forces, although not 

 liable to be called out to fight. He remains a senior cadet until 18, at which age he is 

 drafted into the Territorial Force and is liable to be called out at any time for service 

 within the Dominion. At 25 he is transferred to the Reserve till 30, when he is dis- 

 charged but is still liable to be called back to his regiment in case of war. The number 

 of Territorials and senior cadets registered or serving up to March 25, 1912 were as 

 follows: Territorials under 21 6,309; registered for enrolment 22,214; senior cadets 

 30,560; territorials over age but desirous of continuing service 2,862; total 61,945. 

 The training of the cadet and soldier is strictly territorial, that is to say, except for the 

 one week a year spent in camp, training is carried out within reach of the man's home and 

 at convenient times. It is pointed out by the military authorities that the New Zealand 

 Territorial Force cannot be fairly compared with the Territorial Force of the United 

 Kingdom, which has the regular army and special reserve in front of it. The New Zea- 

 land Territorial Force is the New Zealand Army, and the Permanent Force (officers, 

 warrant and non-commissioned officers) are its auxiliaries to control, guide and instruct 

 it. The Force will be about 30,000 strong, and is organised in field and coast defence 

 units, with practically the same establishment for peace as for war. Nine officers of the 

 New Zealand Staff Corps were in 1912 undergoing instruction in England and two in 

 India; the number of imperial officers interchanged and on loan from the imperial army, 

 serving with the New Zealand forces, was 15. 



Finance. The budget of the new Minister of Finance was presented in the House of 

 Representatives on August 6, 1912. The actual revenue for 1911-12 was 11,032,544, 

 being 603,534 in excess of the estimate, and the actual expenditure 10,604,677, being 

 264,309 under the estimate. The gross public debt at the end of the financial year 

 (March 31, 1912) amounted to 84,352,913, and the net debt (i.e. less accrued sinking 

 fund) to 82,193,310. The following were the principal purposes for which the various 

 amounts were borrowed and applied: Maori War, 2,537,000; Defence 3,369,952; 

 Railways 26,154,970; Roads and Bridges Construction and Lands Improvements 



