influenced by diplomatic pressure, London newspaper agitation, or local farmers' petitions, and Armour's meat has remained in cold storage.

The New Zealand Parliament held two sessions in 1921, a short emergency one in March to arrange certain important matters before Mr. Massey's departure for the London Imperial Conference, and a second commencing just before Mr. Massey's return on September 30 to deal with current legislation and Imperial matters. Tariff revision and financial reconstruction formed the important business. Provision was also made for a consolidation of the laws, the creation of a Forestry Department, and the passing of a Maintenance Order Enforcement Act reciprocal with Great Britain.

The new Customs Tariff Bill approved by the House on December 9 passed through all its stages in seven days. To assist revenue it increased the taxation on luxuries. Out of 604 items it gave preference to Great Britain on 409 (200 more than under the old tariff), the increased favour to British manufacturers being enthusiastically approved. The tariff was divided into three categories-British, General, and Intermediate, the latter applying to foreign countries entering into reciprocal agreement with New Zealand. A special duty varying from 24 per cent. to 25 per cent. is leviable on goods from countries having depreciated exchanges when the goods concerned compete with New Zealand industries, or are subject to a preferential surtax in favour of the British Dominions. The Minister of Customs has discretionary power to exempt countries-a provision inserted in favour of France and Belgium. Dominion manufacturers took strong exception to preference being given to Australia, as the Commonwealth Government had not granted it to New Zealand, and to enable the Dominion to negotiate for a reciprocal arrangement, the Prime Minister, by an amending resolution, had Australia placed on the same footing as countries outside the Empire. Mr. Massey declared it absurd that the two countries out together in the Pacific should not perceive that their interests in all things were identical. On December 9 the Australian House of Representatives passed a Bill extending preferential tariff treatment to New Zealand.

The Financial Statement delivered on November 4 disclosed a sound financial position. The revenue (34,260,9607.) exceeded the expenditure (28,128,7307.) by 6,132,2301. Compared with the previous financial year, there was an increase of 8,000,000l. of revenue and 4,346,0007. in expenditure, the latter being due to Railways, 1,905,000l.; Post and Telegraphs, 646,000l.; Education, 428,000l.; and Interest and Sinking Funds, 528,000. The Public Works absorbed 3,141,000l. Loans for 1,474,0007. were paid off and others for 8,662,000l. were renewed, leaving the net Public Debt, 197,500,000l., of which War Loans total 81,538,000l. The sum of 335,000l. was allocated for the New Zealand Division of the Royal Navy, of which a nucleus has been formed by the Imperial Government's presentation ship,

H.M.S. Chatham. The territorial defence forces have been reorganised, and the permanent establishments reduced.

Estimated revenue for the coming year was placed at 28,000,000l. (Customs, 4,900,000l., Land and Income Tax, 7,700,000l.), plus 4,920,000l. cash balance, brought forward, giving an anticipated surplus of 3,653,000l. over estimated expenditure, 29,266,000l., for the year 1921-22.

The seriously depreciated prices of wool and other staple products improved towards the end of the year, and there was then a growing feeling that the country had passed the worst of its troubles. Mr. Massey thought the new season promised to be one of the best for many years. It was stated that the Government was in earnest in its effort to economise. An Economy Commission of senior departmental officers had suggested methods to save money, and some far-reaching recommendations would require the consideration and sanction of Parliament before they could be made effective. The permanent and casual employees numbered 51,000 or 4:19 per cent. of the population, and salaries and wages formed the biggest item of the expenditure. It was evident that wages would have to be cut down or staffs reduced. Later, the Prime Minister said that 2,000,000. had already been economised, and a further 1,250,000l. was expected. The revenue, moreover, had increased by 2,000,000. The State's total revenue-producing assets exceeded 130,000,0001. Coincident with the fall in the cost of living, public service salaries would be cut, starting with Cabinet Ministers and Members of Parliament. The Governor-General had asked to be included. The State's finances were to be maintained in a sound position, and taxation would be reduced. Since the Budget had been compiled the financial outlook had improved. Even without the surplus brought forward from the previous year, the year 1921-22 would show a surplus.

In October the 1,221,447 white inhabitants had 664,819 open State Savings Bank accounts with 43,352,0317. in credit balances and 100,343 private Savings Bank accounts with 3,841,0827. to credit.

A Mortgages and Deposits Extension Bill extended the moratorium to June 30, 1922.

The Land Revenue (1,734,4177.) was a record. The division of large holdings into small freeholds, for which the country is eminently suited, was continued. Nearly 18,000 returned soldiers have been settled on the land or in dwelling houses and in commercial positions. Those trained for civil vocations have made excellent progress in their careers, and of 9,000 placed on the land only 266 have forfeited their leases. 17,839,970l. was advanced for farms, 8,559,2741., dwellings, 6,358,4591., and current account, 2,922,0571.; 1,156,4337. had been repaid.

A Highways Bill provides for the construction and maintenance of 2,000 miles of arterial main roads. The construction of railway lines of paramount importance was pushed on, and English firms were given orders for a 3,500,000l. supply of loco

motives and equipment for the State railways. A State Forestry Service, with a Forest Advisory Board, representative of officials, sawmillers, sawmilling employees, distributors, and others, has been created by Act of Parliament, establishing a School of Forestry and setting aside areas for State Forests.

For thirty-three years New Zealand enjoyed a favourable annual trade balance, but after a war period of unprecedented prosperity, economic conditions changed rapidly, and in seventeen months, while exports amounted to 68,000,000l., imports reached 85,000,000l. The resulting pessimism of traders and producers was hardly justified, for, during 1914-19, the excess of Dominion exports over imports had totalled 60,559,5847., and the important part New Zealand can take in international trade in the near future is indicated by her sales to the Department of Imperial Government Supplies, from March, 1915, to March, 1921, of a large variety of foodstuffs and raw materials, valued at 158,576,644. The congestion caused by the heavy importation has been relieved, and the first nine months to September 30 disclosed a favourable trade balance of 1,063,8521. of exports (36,466,7271.) over imports (35,402,8751.). Improving produce prices were also reported. Many sheep-farmers have turned to dairying and mixed farming, so that, though sheep declined from 23,919,970 to 23,236,328, the cattle increased from 3,101,945 to 3,112,742, and pigs from 266,829 to 342,227.

The census of April, 1921, showed a population of 1,218,270 white (an 11 per cent. increase on 1917), and 49,000 Maoris. September quarter gave a net increase of 6,713 persons and an estimated population, under Dominion jurisdiction, of 1,294,793 persons (661,490 males and 632,853 females). A large number of immigrants under the ex-service men Översea Settlement Scheme arrived in the Dominion. A unique distinction was the 3,000 increase in Maori population since the previous census.

During 1921, the export of butter and cheese reached the record value of 20,000,000l. and helped to tide over the financial stringency, but the high prices were not maintained at the close of the year. However, there commenced an improvement in wool for which the prices had not only descended to unprofitable levels, but the demand earlier in the year had entirely ceased, particularly for cross-breds, which constitute a large part of New Zealand's total production. The unloading of the enormous Imperial accumulations frightened buyers, and had caused a great slump in the market. A British-Australasian Wool Realisation Association, formed to adjust the disposal of accumulated clips, materially improved the wool-growers' position. After the half-year, competition grew and prices rose. Wellington December sales America stimulated the market by buying choice wools heavily at 1d. to 2d. above the improved October levels. Bradford and the Continent competed strongly for the remainder, and even inferior grades of coarse cross-breds appreciated in value. Over 90 per cent. of the 15,579 bales were sold, and spirited bidding caused the sale of 85 per cent. of the lots offered at Christchurch.

At the

The Dominion's prosperity was seriously threatened by the diminishing net returns from its meat supplies, and in sympathy with reforms suggested by representative producers the Government, late in December, introduced legislation to create a Meat Pool. Despite the strenuous opposition of London firms, a Meat Pool Conference in Wellington of producers, export organisations, meat freezing companies and others, supported the principle of a compulsory Pool and a national scheme for marketing New Zealand meat. A committee was appointed to operate the scheme during the current season. It is proposed to create a purely co-operative organisation, managed and controlled entirely by the producers and their business experts with Government advice and financial assistance. A Board of Control in New Zealand, with a subsidiary London Associated Board, is to handle the whole Dominion output, stringently grade it, with separate brands and handlings eliminated, and market it all abroad as New Zealand produce, regulating supplies and effecting economies in working and freight costs.

During 1921, as the result of successful experiments in England, it was proved possible commercially to develop the 63,000,000 tons of limonite ore deposits at Parapara and the large quantities of titaniferous iron-sand on the Taranaki coast, the latter depending solely on the provision of sufficient cheap electricity. Efforts were made to acquire trawlers for the fishing industry; a new industry capable of growth was the manufacture of meat-flour; tobacco growing was attempted at Nelson; experimental shipments of fruit to the United Kingdom and to Honolulu were successfully made, and the honey, poultry, and other subsidiary industries showed much activity. Both in the North and in the South Island, various installations, forming parts of the great 20,000,000l. Dominion scheme of hydroelectric development, were commenced. The new direct American lines of steamers from San Francisco, and the Canadian Government steamers from Vancouver, were most successful. The Government did not favour a State and Producers' Line suggested by the Farmers' Union.

Other items of interest during the year were the reported discovery of gold in Westland; the completion of the great Otira tunnel; the fears of an eruption of Mt. Ruapehu, caused by rumblings; the closer co-operation of the churches and the exchange of pulpits by all denominations, save one; the Anglican Church's recognition of Ratana, the Maori miracle-worker and faith-healer; the operation of a system of crediting wages to prisoners for their labour; the re-opening of tourist traffic; the successful tours of South African and New South Wales Rugby footballers and the great enthusiasm displayed for all sports and pastimes, and the gift by 3,000 New Zealand woolgrowers of 178,000l. (their share of Imperial Government's wool profits) to a relief fund for sailors (or dependents) who served during the war, between Great Britain and New Zealand.

PART II.

CHRONICLE OF EVENTS

IN 1921.

JANUARY.

1. The New Year Honours included five barons, five Privy Councillors, two Companions of Honour, twenty-one baronets, and sixty-nine knights. The new barons were Sir William Beardmore, Bt.; Sir Ernest Cable; Mr. M. L. Vaughan-Davies, M.P.; The Right Hon. Sir H. B. Marshall, and Colonel J. Stewart-Mackenzie.

Revocation of the order of maximum prices with regard to eggs.

2. The Santa Isabel, a Spanish twin-screw vessel of 3,000 tons, struck a reef off the Island of Salvora on the coast of Galicia, and only 56 out of 300 passengers and crew were saved.

3. The late Lord Glenconner left unsettled property of the gross value of 819,4791.

tion.

An increase of 38. 6d. per shift in miners' wages came into opera

4. Lord Grey of Fallodon was presented with the Freedom of the City of Glasgow.

The late Lady Wantage left estate valued at 1,300,000l.

5. Archdeacon J. H. Greig was appointed Bishop of Gibraltar.

7. The Prince of Wales visited the office of The Times.

For the first time a woman was elected foreman of a jury at Dudley Quarter Sessions.

8. Lord Reading was appointed Viceroy of India in succession to Lord Chelmsford who was due to retire in April.

10. Increased telephone charges came into force, and were received with many protests by traders' associations in London and the country. Restrictions on the export of coal and on bunker supplies were

withdrawn.

12. A bye-election at Hereford resulted in the return of Mr. S. Roberts (Co.-U.) by a majority of 2,259 over his Liberal opponent.

The late Mr. D. M. Currie, who left a fortune of 996,000l.

A