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414] FOREIGN HISTORY.

at which a resolution was passed that the time had arrived when New Zealand ought to join in the scheme of Australian confederation, and a Federal League was formed. A petition was afterwards presented to Parliament praying that the ques- tion of confederation be submitted to the people. The Premier, Mr. Seddon expressed the opinion that he was ready to enter- tain the question as soon as the popular will was declared.

At a public meeting held on February 11 Mr. Seddon de- clared that the Old Age Pensions Bill had been a great success.

The cost to the public was no more than 150,000Z. a year. He claimed that the passing of the measure had advertised the colony, and shown what it was doing in the interests of humanity.

New Zealand was much concerned in the troubles in Samoa. The Government offered the imperial authorities a battalion of volunteers for service with the British and American forces in the islands. The troops were got ready to embark at a word from the Imperial Government.

At a meeting held at Auckland on May 18 Mr. Seddon stated that the revenue was 5,186,428Z. Nearly all the items showed an increase on the estimates. The expenditure of the year was 4,888,000Z. The public debt had increased by 2,000,000Z., of which 500,000Z. were incurred through advances to settlers.

The Parliament was opened on June 23. The usual vote of want of confidence, moved by Captain Russell, was rejected by 7 votes on September 28.

Mr. Seddon made his Budget speech as Treasurer on August 1. He claimed a surplus of 496,000Z., announcing further loans to the extent of 1,000,000Z. He said : " The good times we are now enjoying are real. There have been no booms or undue inflation. The colony's prosperity is founded on a sure and solid basis/'

The session was closed on October 24, and the Parliament expired by effluxion of time on December 11.

- The general elections, to the public surprise as well as to his own, resulted in the increase of Mr. Seddon's majority, which at the close of the polls rose to 34. This result was attributed to the publicans' and the Catholic votes being cast solid for the Government, while the Labour vote had slightly increased. The Prohibitionists voted against the Govern- ment.

A dispute with the Austrian Government was one of the novel incidents of the year. Austrian immigrants had recently been attracted to the North Island by the profits made in the digging of Kauri gum. It was an industry which had been unremunerative in the hands of native diggers, but that did not prevent the Government from opposing the introduction of the foreign adventurers, who worked more cheaply and were content with smaller returns. A correspondence with