8.-9 A

10

£ s. d. Total for which the office was liable to account ... ... 5,407,356 3 3 Less funds specially invested ... ... ... ... 173,948 13 10 Balance ... ... ... ... £5,233,407 9 5 Disposed of as follows, — Investments— £ s . d. Mortgages ... ... ... 4,411,893 15 1 Government securities ... 122,758 0 0 Local bodies'debentures ... 260,925 5 0 Land Settlement Finance Act debentures ... ... 153,136 17 3 Advances to estates by way of overdraft ... ... 72,997 5 1 Fixed deposits in bank ... 1,062 18 0 5,022,774 0 5 Other assets — Office premises and furniture ... ... ... 73,869 17 3 Mortgage securities acquired ... ... ... 5,765 8 5 Interest accrued due but not re- £ s. d. ceived ... ... ... 57,709 16 2 Interest overdue ... ... 2,006 2 9 — 59,715 18 11 Advances to Agents by way of imprest ... ... 1,350 0 0 Unauthorized expenditure to be refunded out of Profit and Loss Account ... ... ... 82 11 11 Cash in hand ... ... ... ... 69,849 12 6 £5,233,407 9 5 Statement showing the Amounts invested and the Respective Rates of Interest on 31st March, 1912. Debentures—£l74,37B at 4 per cent.; £379,533 at 4i per cent.; £2,800 at 4| per cent.; £67,325 at 5 per cent.; £639 at 6 per cent. Mortgages — £1,817,465 at per cent.; £457,600 at 4| per cent.; £1,733,207 at 5 per cent. Fixed deposits—£s3l at 5 per cent. Totals—£l74,37B at 4 per cent.; £2,196,998 at U per cent.; £460,400 at 4| per cent.; £1,801,065 at 5 per cent.; £639 at 6 per cent: total, £4,633,480. From 31st March, 1912, until 21st January, 1913, the uniform rate asked by the office on all investments on mortgage was 5 per cent. This was raised to 5h per cent, on the date last mentioned. With regard to securities submitted for loans, these are reported upon by the District Manager or Agent from whom they come. They are then specially valued by a Government Valuer. If the amount to be lent is £10,000 or upwards an additional valuation is obtained from an outside valuer. They are then submitted to the Board, usually consisting of the Public Trustee, the Government Life Insurance Commissioner, the Superintendent of the New Zealand State-guaranteed Advances Department, gentlemen familiar with the business of appraising mortgage securities; and these have the occasional assistance of the Surveyor-General. No advance is made beyond three-fifths of the valuation, and in many instances that came under our notice not more than half was lent. The period of the loan is limited to five years, and if not paid off then the loan is only renewed on a fresh valuation. Testing the character of the securities by the cases of the exercise of the power of sale or of entry into possession or legal proceedings for the recovery