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ADVANCES TO LOCAL AUTHORITIES BRANCH. LAND FOR SETTLEMENTS BRANCH, GUARANTEED MINING ADVANCES BRANCH, AND NATIVE LAND SETTLEMENT BRANCH. The first annual balance-sheet in respect of each of these branches is herewith submitted. The operations of the Advances to Local Authorities and hand for Settlements Branches were not extensive for the two months during which the Act was in force up to the end of the financial year; but a very large expansion of business in the Uians to Local Authorities Branch must be looked for immediately. The usefulness of the Department to local authorities would be much increased if the present complicated procedure for obtaining loans were simplified. The restrictions at present existing cause delays, expense, and irritation, and are quite unnecessary after the ratepayers have expressed approval of the loan. J. W. Poynton, Superintendent. State-guaranteed Advances Offioe, Wellington, 19th July, 1910.

BALANCE-SHEET.—ADVANCES TO SETTLERS BRANCH. Statement of Liabilities and Assets at 31st March, 1910. Liabilities. Assets. £ s. d. £ s. d. £ s. d. £ s. d. 3-per-cent. loans, re- Investment Account— deemable Ist April, Advances on mort--1945 .. .. 2,000,000 0 0 gage .. .. 9,343,660 0 0 Sundry loans .. 2,223,800 0 0 Less repayments .. 3,680,686 6 2 Advances on account 5,662,973 13 10 of loans .. .. 1,520,000 0 0 Mortgage instalments receivable—over5,743,800 0 0 due .. .. .. .. 4,659 14 1 Accrued interest payable on deposits .. 20 10 2 Interest receivable —overdue .. .. 18,189 14 3 Accrued interest payable on account of Interest receivable —accrued.. .. 44,457 15 2 loans .. .. .. .. 82,988 0 0 Bills receivable .. .. .. 25 10 7 Reserve Fund .. .. .. 50,000 0 0 Office Furniture Account .. .. 202 19 8 •Sinking Fund Reinvestment Account 44,189 18 8 Insurance Premiums Account .. 71 7 10 Suspense Account .. .. ..' 8,499 8 9 Amounts transferred to Workers Branch 120,000 0 0 Advances Suspense Account .. .. 31,751 4 5 Sinking Fund Account (Public Trustee) 57,438 0 0 Fire Loss Suspense Account .. .. 3,561 11 6 Cash in hand and in Profit and Loss Account .. .. 86,136 14 6 bank .. .. 145,31112 7 —« ■ Less unpresented £5,995,892 8 0 cheques .. .. 57,438 0 0 ■ 87,873 12 7 £5,995,892 8 0 •This sum, which represents the amount of Sinking Fund set up in accordance with the provisions of the Government Advances to Settlers Act, 1908, hai since the 31st March, 1910, betn paid over to the Public Trustee in order to comply with section 30 of the New Zealand State guaranteed Advances Act, 1909. J. W. Poynton, Superintendent. W. N. Hinchxiffe, N.Z.S.A , Accountant. New Zealand State-guaranteed Advances Office, Wellington, 15th June, 1910. Examined and found correct. —Robert J. Collins, Controller and Auditor-General. 25th July, 1910.

Statement of Profit and Loss Account for the Year ended 31st March, 1910. Dr. £ s. d. Cb. £ s. d. To Management Expenses Account .. 8,846 5 2 By Interest Account—gross profits .. 50,684 12 10 Loss on realisation of security .. 5 0 10 Balance—net profits for the year ended 31st March, 1910 .. 41,833 6 10, £50,684 12 10 £50,684 12 10 Loan-flotation charges written off .. 6,439 7 9 Balance as at 31st March, 1909 .. 50,742 15 5 Balanoe—net profits carried forward 86,136 14 6 Net profits for the year .. .. 41,833 6 10 £92,576 2 3 £92,576 2 3

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