11

8.—21.

Statements, etc., relating to the Balances op the Public Wobks Fund— continued.

The cash in the colony on the 31st March, 1889, was, as stated above, £368,584 11s. 9d. On the. 2nd April it was reduced by withdrawals for various services to £260,266 18s. That balance grew to £391,239 6s. 6d. by the 17th May, and on the following day £150,000 was remitted by Bank of New Zealand drafts to the Agent-General. On the 30th of the same month £25,000 was remitted by drafts of the Colonial Bank of New Zealand, and on the 15th June £100,000 by Bank of New Zealand drafts. On the 22nd June the available balance at credit of the Public Account in the colony had fallen to £59,015 7s. lOd. Balances at 31st Makch, 1890. £ s. d. Part I.—Public Works Fund ... ... ...£145,701 10 7 Part ll.— „ ... ... ... 386,985 9 0 Part lII.— „ ... ... ... 426,805 15 4 Conversion Account ... ... ... ... 263,444 ;> 0 Government Loans to Local Bodies Account ... 1,799 15 2 1,224,736 15 1 Deduct Conversion and Government Loans to Local Bodies Accounts, at call 265,244 0 2 959,492 14 11 Deduct also Public Works moneys in the hands of officers of the Government 54,014 8 7 905,478 6 4 Deduct Amount in Investment Account ... ... ... ... 582,500 0 0 Cash balance ... ... ... ... ... £322,978 6 4 On the 31st March, 1890, the following were the cash, balances of the several funds in tire Treasury accounts:— £ s. d. Consolidated Fund ... ... ... ... ...£496,636 7 0 Public Works Fund... ... ... ... ... 322,978 6 4 Conversion Account... ... ... ... ... 263,054 15 6 Government Loans to Local Bodies Account ... ... 1,799 15 2 Suspense Account ... ... ... ... ... 43 3 11 1,084,512 7 11 Cash in the colony ... ... ... ... ... £329,931 7 4 Less nominal overdraft in London (see explanation on 45,418 19 5 page 13) £284,512 7 11" Bank drafts for remittances to London ... ... 800.000 0 0 £1,084,512 7 11 On the 31st March, 1890, there was a balance of £96,693 17s. actually at credit of the Public Account in London, which, together with the proceeds of bank drafts for £575,000 —part of the £800,000 shown in the above statement—was used for the interest and other payments. On the 30th April, 1890, the balance in the bank in London was £3,215 15s. 2d. The cash in the Public Account at Wellington on the 31st March, 1890, was £329,931 7s. 4d. Two days previous it was £157,969 19s. 6d. ; and on the 3rd April it was £221,876 6s. 4d. On the 19th April £150,000 was remitted by drafts of the Bank of New Zealand; on the 17th May, £150,000; on the 14th June, £100,000; and on the 12th instant, £100,000: leaving at credit £66,556 12s. Id.

Explanation of the Deduction of £300,000 from the Total of the Public Woeks Fund at 31st Makch, 1888, and of the like Sum from the Amount appearing in the Investment Account,. The moneys in Parts 11. and 111. are set apart for special purposes, and can be used for no other. In 1887-88 funds were required in Part I. in anticipation of the proceeds of one-half of the loan of ono million authorised in 1887; Part 111. being entitled to be credited with the other half. But, while the funds in Part I. were nearly exhausted, there were ample funds in Part 111., which, however, on account of the " ear-marking," could not be used in aid of Part I. While there was not power in the Loan Act of 1887 to borrow in England, there was no bar to the issue of debentures'in the colony. Accordingly, debentures for £300,000 were created, in which, under the authority of the 19th section of "The Public Eevenues Act, 1878," a portion of the moneys at credit of Part 111. was temporarily invested. This enabled a transfer of £150,000 to "be made to the credit of Part I.; the remaining £150,000 being left in Part lit as required by the Loan Act. The debentures are included in the investments stated at £305,000; but, as the-transaction took place entirely within the fund, and therefore made no addition to the cash, the £300,000 should be omitted from both sides of the account when dealing with the Public Works Fund as a whole The matter is explained on page v. of the Financial Statement of 1888.