The retiring Committee have now to present the usual Annual Report of their proceedings for the past year.

During this period the Committee have held 27 meetings, besides eight General and Special Meetings of the Chamber.

The Committee deeply regret having to record the loss of two members of the Chamber by death during the past year—Mr. H. Tewsley, and Mr. James A. Walcott, both for many years associated with this Chamber, and successively the Chamber's representatives on the Harbour Board at the time of their decease. The vacancy on the Harbour Board thus caused has been filled by the appointment of Mr. G. C. Matheson.

The commencement of the period covered by this Report found our commercial interests in a state of extreme trial and depression, caused in great measure by the reaction of the monetary crisis in the Home country which followed the failure of the City of Glasgow Bank. Our staple Wool fell to a very low range of value, trade was impeded by dear money and by the extremely stringent policy which the Banks and other monetary institutions were compelled for the time to adopt, and the resulting depression was all the more severely felt in that it followed closely upon a period of very free money facilities and an undue inflation of values, accompanied by much speculation, especially in landed property. It is surely no small testimony to the general soundness of our trade and the prudence of our traders, as well as to the substantial character of our resources, that this time of trial has been passed through without serious disaster, and that in the Otago district comparatively few commercial failures and none of importance have occurred. There is good ground for believing that the bad times are passing away, and that we are now entering upon a period of renewed prosperity. Nothing is lacking in the resources of the country—abundance of fertile soil for agriculture, excellent pastures, an unrivalled climate, facility of communication by rail and ready means of shipment of produce with a short land carriage,—these are advantages which united compare favorably with those of any country in the world, and should enable us to hold our own in the race of competition. The time of trial through which we have passed ought not to be without its uses in enforcing the lessons of prudence and economy and the application of diligent and persevering effort to the development of these resources.

The harvest of grain in this and the Canterbury districts although it has not come up to what was at one time expected, is nevertheless the largest crop ever produced in New Zealand. A large quantity of Wheat is being exported at a value which gives a fair return to the farmer. A new point of much importance, particularly to the southern districts, has also been established in finding a market in Europe for our surplus produce of Oats at prices for the better qualities which, with moderate rates of freight, will pay the producer. Happily, also, a great improvement has occurred in the value of wool, and there appears to be a marked revival of mining enterprise throughout the mining districts.

The Committee therefore consider that they have good grounds for congratulating the Chamber upon the hopeful outlook for the future.

The annexed statements of Imports and Exports exhibit a marked decrease of the former from all countries, with the single exception of Mauritius, for the year ending 30th June, 1880, as compared with the year preceding, which may be taken as indicative of the prudent action of importers in the curtailment of their operations during the period of depression. The total decrease amounts to no less than £653,000. The value of exports shows also a decrease, but to the much smaller extent of £112,000. A separate return shews that the export of Wool for 1879-80 exhibits an increase of 2,251,305lbs. on that of the previous year.

Through the courtesy of the Commissioner of Railways, returns are furnished giving summary of traffic on the Middle Island Railways for the years ending 26th June, 1880 and 1879; also for the four-weekly period ending 24th July for each year.

A point of much importance in connection with the Railway Returns is the increased consumption of native Coal for railway purposes. The use hitherto almost exclusively of imported Coals over certain portions of the line has been a needless extravagance of the administration of a very hurtful character, involving not only a serious loss to the public of the very considerable difference of cost, but, the payment out of the Colony of a large sum which would otherwise be applied in the prosecution of an important local industry. It is to be hoped that the Government will issue peremptory instructions for the use of local the coal in neighbourhood of its production, wherever its use can be shown to be possible at a cost not greater than that of imported coal.

The following subjects have been brought by the Committee under the consideration of the Chamber at large, which, after discussion, expressed its views by resolutions which were dealt with in accordance with its instructions:—Property Tax, Alteration of Tariff, Otago Central Railway, Harbour Board's Borrowing Powers Bill.

Property Tax.

Resolutions were passed condemnatory of the tax, and proposing alterations.

Alteration of Tariff.

Resolutions at first meeting (24th November) accepted Government's proposals, with the exception of the excessive rates on green fruit, and preserved fruits, and suggested the re-imposition of the tea and sugar page 5 duties At the second meeting (June 1st, 1880) a duty of sixpence per gallon on beer was recommended. The re-imposition of school fees and the land tax were also recommended as alternatives to the property tax.

Otago Central Railway.

Resolutions were adopted recommending its construction as far as Sutton Stream.

Harbour Board Borrowing Powers Bill.

Resolutions were carried approving of the borrowing powers being granted to the extent of £250,000.

The Committee has also had under its consideration from time to time the following subjects:—

Bankruptcy Law.

This subject, which seems to be without finality, has been frequently under discussion. Communications have been received from other Chambers urging joint action in the alterations then before Parliament. On the return of Mr. W. D. Stewart to Dunedin, the amendments were discussed with that gentleman, and after deliberation thereon, the Committee were unable to suggest further alterations to those embodied in the Bill then under discussion, in which were embraced in the majority of their previous recommendations. Legislation has been postponed till next session.

Great Britain and her Colonies.

A second circular bearing on this subject has been received by this Chamber from the Board of Trade of Montreal, in which the Chamber is again invited to co-operate by nominating a delegate to the proposed Convention in London for consideration of a Colonial Federation of the Colonies with the Mother Country, to be held next month. It was suggested to other Chambers that Sir Julius Vogel represent them at any meeting of delegates to be then held in London in pursuance of the suggestion of the Canadian Board of Trade.

Melbourne Exhibition.

At a meeting held April 20th, the following gentlemen were nominated as the Melbourne Exhibition Committee, viz.:—W. H. Reynolds, L. O. Beal, W. N. Blair, A. Burt, E. B. Cargill, R. Gillies, W. M. Hodgkins, J. Roberts, J. B. Mudie, Professor Ulrich, G. M'Lean, and J. S. Webb, with power to add to their number.

It is expected that numerous exhibits of local manufactures and of general interest will be sent to Melbourne.

Fire and Marine Insurance Companies' Bill.

This measure, which took the public by surprise, was fully discussed at a meeting of Committee last month, when the Committee expressed themselves as being entirely opposed to the provisions of the Bill prescribing that Foreign Insurance Companies should deposit securities with the Public Trustee. Further, that inasmuch as the nature of the Bill had otherwise not been considered by the public generally, the Committee were of opinion that it should be withdrawn for the present session. Intelligence has since come to hand that the Bill is withdrawn.

American Duties on Wool.

On the invitation of the Committee of the Auckland Chamber, the Committee joined with other Chambers in the Colony in a memorial to the President of the United States, urging that the interests of both countries would be best advanced by a removal of existing obstacles to free commercial intercourse, and by substituting an ad valorem, duty on wools the produce of New Zealand and Australia at a rate which would admit those of New Zealand without injury to the lower grades of American growth. The Committee would call attention to the table of imports and exports, by which it will be seen that whilst Otago imports American manufactures to the extent of £93,430, America on the other hand takes nothing whatever in return from Otago. And for the whole of New Zealand the figures are as follows for 1879: Imports, £438,399; Exports, £59,679

In conclusion, your Committee would point out that several subjects suggested by the previous Committee remain over for their successors. Amongst these may be mentioned a Weekly Market Day, the formation of an Exchange, the experiment of a Change Hour—all of which your Committee believe will greatly facilitate increased intercourse between those engaged in the commerce of this Port and the agricultural, pastoral and other interests of Otago.

The accounts of the Chamber for the past year have been duly audited and are appended

The Chairman, in moving the adoption of the report, said: Gentlemen, having laid before you the report, I will move the adoption of it by the Chamber. In doing so I shall not venture to detain you by making many remarks. We have to regret that during the past year we have lost two very valuable members of the Chamber, whom I am sure we are all sorry to miss on the present occasion. Our old friend, Mr Walcott, was always a very active member of the Chamber, and he has rendered excellent services in connection with the Committee; and Mr Tewsley always took a very active part in everything affecting the commercial interests of the port. Both these gentlemen were our representatives at the Harbour Board at the time of their decease, and the vacancy has been filled up, as mentioned in the report, by the nomination of Mr Matheson. I trust the members of the Chamber will be satisfied with the services rendered by the Committee during the past year. You are aware that it has always been a somewhat difficult thing to keep the Committee of the Chamber actively working, and it has been the fashion in time past to grumble a good deal at the inactivity of the Chamber as represented by its Committee. But, gentlemen, you must consider that work of this sort falls upon a somewhat limited number. I am sure I can say for the members of the Committee that they have given very active and hearty service whenever it has been called for from them, and I trust that their labours on behalf of the commercial community have not been altogther without benefit. I do not quite take the same view page 7 of the purpose of a Chamber of Commerce which seems to be entertained by many of the commercial community, who look upon it as a sort of independent machine, which is to keep a close watch over all mercantile interests and continually busy itself by looking into and raising questions bearing upon those interests. I look upon it more as an organisation to be used by the mercantile community, and its efficiency will very largely depend upon what that community make it. Of course its efficiency depends in some measure upon your appointing good members on the Committee to do your work, but it must chiefly and mainly depend upon the interest taken by the mercantile people generally in what concerns them, and it is for the mercantile men to use the Chamber of Commerce, and to set it in motion in respect of matters they look upon as important. The Committee have, I think with good reason, to congratulate the Chamber at the present meeting upon the very much more cheerful prospect of affairs generally, as compared with what they were this time last year. We were then suffering from great depression, both from scarcity of money and the low price of produce, and although we have not quite got into the position we should like to occupy, still in many respects there has been improvement, and I think we may take credit in any case as a mercantile people for the manner in which a very severe crisis has been passed through without anything like a serious disaster or breakdown in trade generally. There have been fewer failures of any consequence, in Otago, and particularly in Dunedin, than in any other part of the Colony, and I think we must show to the world at large as a very prudent and careful commercial people. This view is further borne out by the great restriction in transactions, which is apparent in the diminution of imports to the extent of £653,000. I may say that that is not due to any want of enterprise, or any disinclination to take the fullest benefit of the markets, but is simply the result of prudence, suited to meet the stringency of the times. A number of subjects have been under consideration during the year, which have been referred to the Chamber from time to time, and upon which opinions have been expressed and given effect to. In fact, it has been the practice of the Committee to seek the opinion of the Chamber at large in all matters of serious importance. One or two matters have been dealt with by the Committee of the Chamber, the most important perhaps of which is the one upon which we agreed to join in a petition to America for some remission of the very heavy—the prohibitive duties upon wool going into the United States. I do not know that in the present state of the political world there, this representation is likely to be at all successful, but it is very much to be desired that we should have something like reciprocity of action on the part of our American friends, and that while we continue to take a large portion of their manufactures, they should be content to admit upon something like reasonable terms a produce like wool, which is a first necessity for their manufactures. I will not detain you with further remarks, gentlemen, but simply move the adoption of the report, and express the hope that if members have any matters to bring forward they will do so.

Mr R. Stout had much pleasure in seconding the adoption of the report. He thought the statistics given in the report were very credit- page 8 able to Otago, especially those that had been given by the Commissioner of Railways, which showed that notwithstanding the depression the traffic had gradually and surely increased. As to the imports falling off, no doubt one of the reasons for that was that merchants had been more careful in sending orders Home; but he believed there was another reason, viz., that our local manufactures were gradually increasing, so that the imports, unless our population increased, could not be expected to keep up to their old level. It was not necessary to comment on the report, for it seemed very full and able, and he felt sure that members of the Chamber would be thankful to the Committee for the exertions and care they had exercised in looking after commercial matters during the past year. He could only say that he hardly agreed with the Chairman as to the functions of a Chamber of Commerce. He looked upon it that the Chamber ought to be a body appointed strictly to watch over the commercial interests of Dunedin and neighbourhood—at any rate, of Otago; because, if this were not done, there was such a thing as competition in trade, and the result might be that other ports would gain advantages which Dunedin did not share. In other ports the Chambers of Commerce strictly looked after their own commercial interests, and he thought Dunedin should have an institution for the same purpose.

The adoption of the report was put and carried unanimously.