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THE PUBLIC WOEKS FUND. The year 1898-99 closed with a credit balance of .£70,856, and during the financial year 1899-1900 the fund was augmented by receipts consisting of .£310,000 of old loan-moneys, and =£300,000 of advances made against the million loan authorised last session; £450,000 was also transferred from the Consolidated Fund, and some miscellaneous receipts, amounting in all to £2,116, were added, making a total of £1,062,116 by which the moneys in the fund were supplemented. In order to make my figures clearer I have omitted amounts charged on both sides of the account. The expenditure during the year amounted to £993,223, and the balance of cash and advances at the close of last year was £139,749. Details of the receipts and expenditure will be found in Table No. 1 attached hereto. I have previously stated that, owing to the unsatisfactory state of the English money-market, caused by the varying phases of the war in South Africa, no attempt has been made to float the last million loan, but very satisfactory arrangements have been made with our bankers, whereby advances are being obtained so as to provide funds for the monthly requirements of the Public Works Fund. LAND FOE SETTLEMENTS ACCOUNT. Large areas of land were acquired last year for settlement purposes, and the outlay, including expenses, totalled £374,148. Besides this, the account was charged with £95,182 for interest paid by the Consolidated Fund upon debentures issued to provide funds for the purchase of estates. To meet the whole of this expenditure debentures amounting to £448,000 were created and sold, and with £46,355 derived from rents, £223 from small recoveries, and £28,141 of balance brought over from the preceding year, the receipts amounted to £522,719, and, the expenditure as above being £469,330, there remained an available balance of £53,389 to begin the current year with. LOANS TO LOCAL BODIES ACCOUNT. The balance in hand to credit of this account at the commencement of last year was £4,350. Refunds of unspent balances of loans were received amounting to £876, and one hundred and fifteen thousand five hundred pounds' worth of debentures was created and issued during the year. These sums, amounting to a total of £120,726, have enabled payments on account of loans to be made during the year —to local bodies £68,770, and towards opening up blocks of lands for settlement £31,363, leaving at the end of last year a balance of £20,593 to the ciedit of the account. Up to Hist March last the total amount of debentures created and issued and carried into this account was £1,354,900, and the total disbursements have been —to local authorities, £999,542; to Lands and Survey Department, towards opening up blocks of land for settlement, £244,965 ; and to Public Works Fund, £89,800, in exchange for debentures under " The Roads and Bridges Construction Act, 1882." The business connected with the granting of loans to local authorities has very largely increased. Late legislation has widened the field wherein local bodies can apply for assistance, and they have not been slow to take advantage of the opportunities offered. As indicated in my Budget of last year, a direct concession of \ per cent, has been made in the amount of instalments in respect of repayments of loans granted; and further concessions in the way of reducing the amounts of these instalments while extending the periods were also provided in the Amendment Act of last session. Fourteen County Councils, ten Road Boards, three Borough Councils, and two Drainage Boards have availed themselves of these concessions by readjusting their existing loans as from the Ist February last under the provisions of the Amendment Act of last year. The readjustments amount to £447,121, and the reduction in the payment of interest and other charges is £3,881 per annum. As the Act provides only for adjustments taking effect from the Ist February in each year, only a few were able to avail themselves of the

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