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The group which lies about 400 miles N.E. from Fiji contains several islands, of which Savai'i and Upolu are the largest. The total area is 1,133 square miles.

It was also decided that the phosphate island of Nauru (Pleasant Island), lying in 0.33° south latitude, and 166 55° east longitude, should be administered by New Zealand conjointly with the United Kingdom and Australia.

By Order-in-Council of 30th July, 1923, the coasts of the Ross Sea, with the adjacent islands and territories, were declared a British settlement under the name of the Ross Dependency. The dependency was placed under the jurisdiction of the Governor-General of New Zealand.

Arrangements were made in 1925 for the administration of the Tokelau or Union Islands, part of the colony of Gilbert and Ellice Islands, to be taken over by New Zealand. This transfer was effected as from February 11th, 1926, on the publication of the Union Islands Orders in Council, 1925, in the respective Government Gazettes. The islands are administered by the Administrator of Western Samoa on behalf of New Zealand.

Climate.

The climate is temperate and very healthy, the death rate in recent years being less than 9 per 1.000. The temperature is more equable than in the British Isles. While the summers are as cool as those of England, the winters are as warm as those of Italy. The mean annual temperature at Auckland (58°) is nearly the same as at Rome; at Wellington (55°) nearly the same as at Milan; at Dunedin (51°) nearly the same as at London. The extreme range of temperature at Wellington in 1937 was 42.9°, from 76-0° on the hottest day in summer to 33.1° on the coldest day in winter. Rainfall is over 200 inches annually on parts of the West Coast of the South Island, but as low as 20 inches in Central Otago and in parts of Canterbury. In the North Island rainfall averages over 100 inches per annum on the central mountain and up ranges, Bay on the east coast, however, having only 35 inches per annum.

to 80 inches on the Taranaki Coast, parts of Hawkes

The average birth rate for the 5 years 1933-1937 was 166 per 1,000 living, and the average death The birth rate rate for the same period 8*5. in 1937 was 17-29 per 1,000; the death rate in that year was 9:08. New Zealand has the lowest rate of infant mortality in the world, a fact attributed to such matters as climate, virility of race, comparative absence of large industrial undertakings, and partly to legislative and educative measures. The average rate for the last 5 years was 31.6 per 1,000 births, and the rate for the year 1937 was 31.2.

History.

New Zealand was discovered in 1642 by the Dutch navigator, Tasman, who, however, did not land upon its shores. In 1769 it was visited by Captain Cook, who in that year, and during subsequent voyages, explored its coasts. The country subsequently became a resort for whalers and traders, chiefly from Australia, as well as a field for the labours of the Missionary Societies from 1814. In 1840 the native chiefs ceded the sovereignty of New Zealand to the British Crown by the Treaty of Waitangi, concluded by the British Consul, Captain Hobson, and the islands became a British colony. The aborigines, called Maoris, are a remarkable people-a branch of the Polynesian race. According to their own traditions, their forefathers came

about 750 years, or thirty generations ago, from Hawaiki, which was probably Hawaii in the Sandwich Islands, or Sava'i, in the Navigator, or Samoa, group. They were divided into about twenty different tribes, analogous to the clans of the Highlands of Scotland. There have been two Maori wars; the first lasted from 1845 until 1848; the second lasted from 1860, with little intermission, until 1870. But fully half the tribes have always been friendly to the English; and many of them fought on the side of the Colonial Govern. ment against their own countrymen. Permanent tranquility was established in 1871 throughout the country. An agitation amongst certain tribes in 1881, which threatened for a time to create a disturbance, was promptly quelled. Contrary to the results found in other civilised countries the Maoris in New Zealand are steadily increasing. This increase has been accompanied by a considerable dilution of blood through inter-marriage with Europeans. It is estimated that at most only 50 per cent. are now of pure Maori descent. estimated Maori and half-caste population at 31st March, 1938, was 86,767, almost all of whom dwelt in the North Island.

Constitution.

The

The country was at first a dependency of New South Wales, but was created a separate Colony by the Charter of 16th November, 1840. Its settlement was largely effected by the New Zealand Company, with a royal charter, which was surrendered in 1850.

Down to 1847 the Executive and Legislative and a constitutional form of Government was estaCouncils were both nominated by the Governor, blished by the Imperial Statute 15 & 16 Vict., cap. 72. By that Act New Zealand was divided into six provinces, afterwards increased to ten, Taranaki, Wellington, Nelson, Canterbury, Otago, but subsequently reduced to nine-viz., Auckland, Hawke's Bay, Westland, and Marlborough each governed by a Superintendent and Provincial Council, elected by the inhabitants under a franchise which practically amounted to household suffrage.

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By an Act of the General Assembly, 39 Vict., No. XXI., passed in 1876, the provincial system of government abolished. The powers previously exercised by superintendents and provincial officers were now exercised by the Governor or by local boards. The provincial system being abolished, provision was made for the division of the Dominion into counties and boroughs, and the necessary machinery for their self-government was provided.

A Central Legislature, called the General Assembly, was also established by the Imperial Statute of 1852, consisting of the Governor (now GovernorGeneral), a Legislative Council, and House of Representatives. The Governor-General is assisted by an Executive Council, composed of the Responsible Ministers of the Dominion for the time being, according to the usual practice of Parliamentary Government. The Legislative Councillors are appointed by the Governor-General, and up to 1891 held their seats for life. Under the Act passed in that year, future appointments were made tenable for seven years only. The members of the House of Representatives are chosen by electors possessing a liberal franchise. Every elector, male or female, is qualified to become a member (the Women's Parliamentary Rights Act, passed in 1919, gives women the right to be elected to either house). The House of Representatives now consists of 80, including 4 Maori members elected by the natives. Legislation in 1934

provided for four-yearly Parliaments in place of three-yearly, but the three-yearly basis was restored by legislation in 1937. The session is usually from June to October.

Payment of Members of the Legislative Council is at the rate of 315l. a year. Members of the House of Representatives receive 450l. per annum.

The Electoral Act, 1893, extended to women (of both races) the right to register as electors, and to vote at the elections for members of the House of Representatives. In 1919 they were made elegible as members of the House of Representatives. The first woman member was elected in September, 1933.

The franchise for European representation is as follows:-Every adult person, other than aliens, lunatics, and certain criminal offenders, if resident one year in the Dominion and three months in an electoral district, is required to be registered as an elector.

The property qualification was abolished by "The Electoral Act Amendment Act, 1896," and residence alone now entitles a man or woman to have his or her name placed upon an electoral roll. Compulsory enrolment of electors was introduced

in 1924.

For Maori representation every adult Maori resident in the district can vote, and no registra tion is required. There are four Maori electoral districts.

For most local bodies the qualification is a property or residential one. Women can vote and are eligible

for election as well as men.

The control of native affairs, and the entire responsibility of dealing with questions of native government were transferred in 1863 from the British to the New Zealand Government. In 1865 the seat of Government was removed from Auckland to Wellington, on account of the central position of the latter city.

Local Government.

For the purposes of local government the Dominion is divided into 124 municipalities and 129 counties; the latter being sub-divided into 16 road districts and 63 town districts, besides River, Drainage, Water Supply, Local Railway, Harbour, Electric Power, Fire, and Rabbit Districts, a special Tramway District, a Transport District, and a Gaslighting District. For the year ended 31st March, 1937, the total receipts of the above local authorities amounted to £20,226,593 and their expenditure to £20,222,715. Their outstanding loans at the same date amounted to £66,950,378 (net £57,463,370), including loans from the State Advances Office and Main Highways Board and also of £1,609,372 (net £457,514), inscribed by the Treasury under the nowrepealed Local Bodies' Loan Acts and outstanding at 31st March, 1937. A class of local district not included in the statistical returns for which the above statistics are compiled consists of the Hospital Districts. The receipts of Hospital Boards for the year ended 31st March, 1937, amounted to £2,192,348 and the expenditure to £2,127,854.

Education.

A Government system of primary education was established in 1877. The central administration is vested in a Minister of Education, and the local control is in the hands of nine Education Boards, and of School Committees with functions subordinate to those of the Boards. Number of primary schools (called "public schools "), 2,378; scholars on roll, 203.266. Primary education is free. ecular, and

compulsory. There are also 16 intermediate schools or departments in operation, with a total enrolment of 4,387 pupils. In addition, for native (Maori) education there are 141 village schools maintained by the Government under the control of the Minister, eleven Native mission schools, and eight denominational boarding schools. Scholars on roll of village schools, 9,642 (including 1,089 Europeans); on the roll of mission schools, 632; and on roll of boarding schools, 501, of whom 188 hold Government free places. The cost of native school education in 1937-38 was £155,025. In the Chatham Islands five schools are maintained. The schools in Cook Islands and Western Samoa are subject to inspection at intervals by an Inspector of the New Zealand Education Department. During the year 1937, 306 private primary schools with a roll number of 27,931 were registered under the Education Act. A School Journal providing suitable reading matter is provided by the Department and issued free to all children in Government and registered private schools. A comprehensive system of physical education and schemes of dental and medical inspection are in operation in the primary schools, the latter now being under the control of the Department of Health. There were 1,344 students in training at four colleges in 1937 situated at Auckland, Wellington, Christchurch and Dunedin to qualify for teaching appointments. The number of adult primary school teachers in 1937 was 6,226. head of primary education was for 1937-38, £2,798,073. The total expenditure by the Government under the There is a system of contributory superannuation for teachers giving an annuity of one-sixtieth of the average of the final three years' salary for each year of service up to forty years.

Secondary education is provided at secondary schools, combined schools, district high schools and schools under each heading in 1937, being 40, 6, 86, technical high schools, the numbers of operative and 21 respectively, with a total roll number as follows:-Secondary schools, 14,101; district high schools (secondary departments), 4,389; combined schools 2,113; technical high schools and technical day schools, 7,833. In addition 55 private secondary schools were registered under the Education Act, and with two endowed schools the total roll number was 5,210. Of the total number of children in attendance at Government post-primary schools, 99 per cent. are holders of free places which carry free secondary education. Provision is made for manual instruction in both primary and secondary schools, cookery, dressmaking, woodwork, elementary agriculture, dairy-work, and the various branches of elementary science being included in the subjects taken. Instruction of a technical or vocational character is provided at a large number of technical schools and classes, besides the technical high schools mentioned above, the courses of instruction followed being commercial and general, industrial, domestic, agriculture, and art. The total number of students attending such classes in 1937 was 13,430, of whom 7,814 received free education.

For higher education there are four endowed colleges affiliated to the University of New Zealand, and each specializes in one or more directions. At Dunedin the special subjects are mining, medicine, dentistry, veterinary science, and domestic science; at Christchurch, engineering and technical science: at Wellington, law and science; at Auckland, commerce, engineering, and architecture. There is an agricultural college at Lincoln possessing a large endowment and an experimental farm of a very complete character. Another agricultural college

connected with the New Zealand University, Massey College, has been established at Palmerston North. The number of students on the books of the University Colleges was, in 1937, 5,010, of which number 2,005 were receiving wholly or partly free education. The number of students at the two Agricultural Colleges was 228. The total expenditure by the Government on university education in 1937-38 was 152,396.

The Child Welfare Act, 1925, provided for the creation of a special branch of the Education Department known as the Child Welfare Branch. The Act was designed 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. Honorary associates of either sex are appointed, 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. Child Welfare Officers are also appointed for the investigation of all cases coming before the Courts. The Act gives very wide discretionary powers to the Magistrates of these special Courts in dealing with children. The ordinary procedure of requiring the child to plead, of taking evidence on oath, and, in fact, 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 the child.'

The Children's Court may exercise jurisdiction over any young person under eighteen years of age charged with any offence. Such cases would be referred by a Stipendiary Magistrate or Judge of the Supreme Court.

In order to provide for the greater protection of infants of unmarried mothers and for the assistance and guidance of the mothers themselves, Child Welfare Officers, on being notified of such births, investigate each case and 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, etc.

An amending Act of 1927 raises the age of a "child" from sixteen to seventeen years, and provides for the registration and inspection of all private or denominational institutions where children are maintained apart from their parents or guardians.

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, of all applications for the adoption of children and for widows pensions; (3) supervises all children and young persons placed under the field officers by order of the Court; and (4) provides for the maintenance, education, and training of all afflicted children who are deaf, blind, feeble-minded or have speech-defects.

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The population of New Zealand in 1936 was found by the census to be 1,573,810 persons, including the Maoris, who numbered 82,326. The population of Cook and other Pacific Islands was 16,350 on census of 30th April, 1936, Western Samoa 55,946 on census of 4th November, 1936, and Tokelau Islands 1,170 on census of 4th November, 1936. The estimated population of New Zealand proper (including Maoris), on 30th June, 1938, was 1,604,244. The population of the four principal urban areas estimated as at 1st April, 1938, was as follows:

Auckland

Wellington.
Christchurch
Dunedin

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Industry and Trade.

All the productions of the temperate climates of Europe and Asia can be cultivated with success in New Zealand. There are extensive coal mines and gold fields. The total gold entered for exportation from the Dominion up to 31st December, 1937, was valued at N.Z. 102,682,8741. The wool exports in 1937 amounted to 282,339,148 lbs., valued at N.Z. 19,070,240l. In 1856 they amounted to 2,559,618 lbs., valued at 146,070l. The trade in frozen meat, which began in 1882, with an export of 15,244 cwt., valued at 19,3391., had developed an export in 1889 cwt., valued at 1,698,750., in 1913, 2,578,693 cwt., of 656,822 cwt., valued at 783,3741., in 1898, 1,551,773 valued at 4,449,9337., in 1925, 3,414,205 cwt., valued at 11,174,567!., and in 1937, 5,400,916 cwt., valued cwts., valued at 740,6207., in 1900 to 2,976,085 cwts.. at N.Z. 14,689,618. Butter exports rose from 172,583 at the same time increased from 102,849 cwt. valued at N.Z. 16,986,4771., in 1937. Cheese exports (229,1117.) to 1,647,255 cwt. (N.Z. 5,371,8781.). The live stock in New Zealand, 1938, preliminary returns cattle, 4,507,227 against 578,430 in 1878; sheep horses, 279,324 against 137,768 in 1878; (final figure), 32,378,774 against 13,069,338 in 1878; pigs, 755,222 against 207,337 in 1878. in 1937 was 43,199,893 acres; in 1936-37 221,790 area of occupied holdings over one acre in extent acres were in wheat (for threshing only), having a total yield of 7,168,963 bushels. Of an 315,704 acres under oats for all purposes 74,772 acres were threshed, giving a total yield of 3,525,430 bushels.

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Auckland, Dunedin, Invercargill, Lyttelton, Napier, Nelson, Wellington, and Timaru are ports of registry, and had, on 31st December, 1937, 482 vessels registered, of 99,542 (net) tons in the aggregate.

The imports consist chiefly of textiles, apparel, hardware and machinery, sugar, tea, tobacco, alcoholic beverages, books, stationery, paper, motor vehicles and accessories, drugs and chemicals, and oils; and they are obtained almost entirely from the United Kingdom, Australia, the United States, Canada, Ceylon, India, Japan, Dutch East Indies, Pacific Islands, Germany, and France.

In 1937, 76 per cent. of New Zealand's exports went to the United Kingdom, 6 per cent. to other British countries, and 18 per cent. to foreign countries. Corresponding percentages for imports were 50, 24, and 26 respectively.

British preference is a marked feature of the Customs tariff, many items for instance being dutiable at 20 per cent. when of British origin and 40 per cent. when foreign. New Zealand has also reciprocal tariff agreements with Australia, Canada, British South Africa, Belgium and Germany. In accordance with an agreement entered into at the Imperial Economic Conference at Ottawa in 1932, goods the produce of the United Kingdom and certain other British Countries were made free of surtax as from 14th October, 1932. In addition, on certain items reductions in duty were made, and on certain other items additional preference was given to British countries by imposition of duty or an increased duty on foreign produce.

The Customs tariff was reviewed in 1934 as a result of investigation by a Royal Commission on the Tariff, and a comprehensive Customs Act (No. 14 of 1934) was passed in October of that year.

Approximately 47 per cent. of all imports are admitted duty free, subject (with certain exceptions) to a primage duty of 3 per cent. ad valorem, while twothirds of the balance are subject to ad valorem duties and one-third to specific duties. Of imports from the United Kingdom in 1936, 53 per cent. came in free of duty, 81 per cent. received benefit of preferential tariffs against foreign goods; and 96 per cent. was either free or received benefit of preferential tariff against foreign goods.

Banking and Currency.

Of the following banks which have branches in the Dominion, the first two are New Zealand Institutions :-Bank of New Zealand, National Bank of New Zealand (Limited), Union Bank of Australia (Limited), Bank of New South Wales, Bank of Australasia, and Commercial Bank of Australia (Limited). The total amount of their deposits in New Zealand for the year 1937 (average of four quarters), was £66,842,692. The net note circulation at 27th December, 1937, was £11,679,389. There is also a Post Office Savings Bank established in the Dominion, having on 31st March, 1938, 928 branches; the amount deposited therein at that date was £63,146,930. The trustee savings banks number five, and the total amount to credit of depositors at March 31st, 1938, was £13,339,416.

The currency and legal tender was formerly British sterling, but New Zealand currency is at present at a discount as compared with sterling. The Reserve Bank of New Zealand commenced operations from 1st August, 1934. Reserve Bank notes are now legal tender and the note-issues of other banks have been called in. Section 8 of the Finance Act, 1932-33 (No. 2) empowered the Minister of Finance to arrange with the Master of the Royal Mint (England) for a special issue of silver and bronze coinage of distinctive design for circulation in New Zealand. The silver coins and the bronze halfpenny are now in circulation.

All monetary values given in the New Zealand section are expressed in N.Z. currency unless the contrary is stated.

Government Life Insurance Department. commenced This department to transact business in 1870. It is under the management of the Government Insurance Commissioner, and is conducted almost exactly on the same principles as those generally adopted by private mutual life offices.

It has canvassing agents, and pays its own expenses including postage and taxes. Besides its low premiums the Department makes a feature of its liberal and sympathetic administration.

with

Profits belong absolutely and entirely to the policyholders themselves and aro distributed annually in the form of compound reversionary bonuses. The basis employed in the actuarial valuation-the most stringent in use by Austra lasian Offices, namely, the O.M. (British Offices) interest at 3% Tables indicates the strength of the Department and when taken in conjunction with the fact that the rate of interest earned on the funds, although fallen in sympathy with the general economic trend, is just over 41% constitutes the best possible augury of future bonus prospects. The figures for the last five years in respect of new business, premium income, funds, and total business in force are as follows:

New Year. Business. L

1933 1,295,656 1934 1,661,348 1935 2,005,995 1936 2,863,801 1937 3,431,940

Premium Funds at Business Income. end of year. in Force.

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649,082 8,965,061 23,574,469 667,488 9,241,764 24,084,621 668,946 9,578,673 25,051,292 719,197 9,952,311 26,897,975 765,146 10,349,248 29,409,136 State Fire and Accident Insurance. Fire Branch.

In 1903 an Act was passed "to establish a State Fire Insurance Office and to make other provisions for the insurance and protection of insurable property in New Zealand against loss or damage by fire." The statute provided for the establishment of an office to be administered by a General Manager appointed by the GovernorGeneral, and for the necessary staff.

The Board of the Office consists of the Minister of Finance, the General Manager, the Financial Adviser to the Government, and three other persons appointed by the Governor General, of whom at least one must be an officer of the Public Service. The appointed members hold office for two years with eligibility for re-appointment.

The Department opened for business with branches and agencies throughout the Dominion in 1905. The opening of the office resulted in a reduction in the rates then current of 33 per cent. on dwellings and the less hazardous risks, and of 10 per cent. on all others.

Under an Amending Act passed in 1922, the Board may, when and as often as it considers that the funds are sufficient to meet all the actual and contingent liabilities of the Department, declare a rebate to insured persons in respect of premiums thereafter becoming payable. The first rebate of 15 % was declared for a period of 12 months from 1st August, 1923. The rebate was reduced to 10 % during 1924-25 but increased to 12 % at January, 1926. This rate remained until 1st September, 1933, when an additional rebate of 12% on dwellings situated in areas where there is adequate fire protection, and 7% on dwellings and farm risks situated in other

areas, was granted. As from the 1st December, 1936, the rebate in operation was made a permanent rating reduction from premiums, and, in addition, a further bonus to policyholders ranging up to 25% was declared.

There is no liability on account of called-up capital, the sum of £2,000 originally advanced for preliminary expenses having been repaid in 1913. The funds and reserves as at the end of December, 1937, totalled £1,113,830. The net income and net losses for each of the five years to that date have been as follows::-

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The Government Accident Branch, attached since 1925 to the State Fire Insurance Office, was opened in 1901, for the purpose of transacting Personal Accident Insurance and Employers' Liability Insurance. General accident business is undertaken, but the branch opened more especially with a view to relieve einployers of labour of the liability imposed upon them by "The Workers' Compensation for Accidents Act, 1900." This Act greatly extended the liability of employers, and gave to a workman the right of compensation for all injuries arising out of, and in the course of, his employment, not attributable to his own serious and wilful

misconduct.

This liability has been extended by subsequent Acts, the principal amendments being in 1908, 1920,

1922, 1926 and 1936.

The present scale of compensation is as follows:(a) Where death results from the injury and the workman leaves any total dependants, the compensation shall be a sum equal to two hundred and eight times his weekly earnings, or the sum of 500l., whichever of those sums is the larger, but not exceeding in any case 1,000l.

(b) If

an

the dependants are only partially dependent upon the workman's earnings, the compensation is to be such sum as is reasonable and proportionate to the injury to such dependants, but not exceeding the amount payable under paragraph (a). (e) In either of the above cases the employer is also liable for medical and burial expenses not exceeding 501., and amount not exceeding this sum can be claimed where there are no dependants. (d) Where a workman is totally incapacitated for work, he is entitled to a weekly payment of 66% of his average weekly earnings, with a maximum of 41. 108. per week and a minimum of 21. per week. Persons employed otherwise than by way of manual labour, whose earnings exceed 400l. a year, are excluded from the benefits of the Act. (e) Where the workman is partially incapacitated only, the compensation is 663 % of the loss of wages, with a maximum of 41. 10s. per week. () In addition to the compensation for incapacity, medical or surgical expenses are allowed, not exceeding 11.

Weekly payments under paragraphs (d) and (e) above are not to extend over a longer period than six years, and the aggregate amount is not to exceed 1,000l.

The Department's policies cover the full liability of an employer to his workmen under the Workers' Compensation Act, and also suitably protect him against liability under the Deaths by Accident Compensation Act, and the Common Law.

Personal accident policies are also issued securing amounts for accidental death and permanent total or partial disablement, and weekly allowances during temporary disablement, whether caused by accident or sickness.

Under the Government Accident Insurance Amendment Act of 1924, the Department is authorised to underwrite all classes of Accident Insurance accepted by Accident Insurance Companies, and the office now accepts motor-vehicle (third party risk), motor car comprehensive, public risk, burglary, plate glass and fidelity guarantee insurance.

Accident Branch during the last five years have The premium income and claims of the been as follows:

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Premium
Income.
£

Claims. £

Year ending 31st December, 1933 80,207 48,593 1934 84,727 62,035 1935 97,766 66,172 1936 113,649 76,471 1937 147,719 99,502 Public Works.

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All the more important public works of New Zealand are in the hands of the Government and other public bodies, comparatively few having been undertaken by companies. In 1870 a great impetus was given to the development of the country by the inauguration of the "Public Works Policy," which provided for carrying out works in advance of settlement, and for immigration.

Roads.-The first public works initiated were roads, many thousands of miles having been constructed. Developments of motor road transport have since necessitated a change in the construction and maintenance of main roads. A Main Highways Board for the whole Dominion was established in 1923 under the authority of the Main Highways Act, 1922, and at 31st March, 1938, that Board controlled 12,136 miles of the main roads in the two Islands. The object of the change of policy was to make the construction and maintenance of main highways, suitable for modern traffic, more of a national than a local undertaking. Under legislation passed in 1936, the principal arterial routes, comprising some 4,000 miles of main highways, were classified as State Highways, the maintenance and improvement of which are financed wholly from the Main Highways Account.

Road and railway formation works are carried out under contracts, but principally by the cooperative system, under which the Government provides all materials and lets the work of construction to parties of labourers and artisans at rates fixed by Government officers on the ground. These rates are calculated so that an average workman will be able to earn the current rate of wages ruling in his trade in the district where the large bridges are built by contract, let after work is situated. Buildings and most of the inviting tenders through the Press; but the Public Works Department frequently erects

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