8.-6

XIV

CHARGES FOR INSCRIPTION AND MANAGEMENT OF STOCK In last year's Budget I mentioned that prior to the Ist May, 1908, a sliding scale of charges was in force with the Bank of England for the inscription and management of our stock, but that on the date mentioned a fixed payment to the bank for each million of stock inscribed was agreed upon. The effect of this alteration was to grant some relief to the Treasury at the time, but as our debt has considerably increased since then, the amount now annually payable to the Bank of England is in excess of the amount which would have been payable had the original agreement been maintained. The result of revising the agreement was, in short, to afford temporary relief only, and to saddle us with higher charges in the future. Efforts have been made to procure a more equitable arrangement with the Bank of England, but the terms asked by the bank could not be agreed to in the interests of the Dominion. The amount annually paid to the Bank of England now exceeds £21,000, and, with the prospect of considerable conversions before next December, this annual charge will shortly be further increased. With a view of avoiding these higher charges the Government has, as honourable members are aware, introduced legislation which will enable more favourable arrangements to be made regarding future loans.

POST OFFICE SAVINGS-BANK. The following table will show the relative sums borrowed from the Post Office for each of the years ended 31st March, 1912, 1913, and 1914 :—

Comparison of Post Office Investments in New Zealand Government Securities during the Years ended 31st March, 1912, 31st March, 1913, and 31st March, 1914, respectively, showing Purposes to which Money was applied.

Amount. Date borrowed. Price of Currency Years. Rate of Interest. Annual Cost, including Redemption. Borrowed for Issue. £ 8,000 7,000 1913. April 25 May 16 ( April 25 to I June 27 89 89 27 27 % 3| 3i % 3* £ s. d. 4 6 9 4 6 9 Naval Defence Act Account. ,y 500,000 1 I 99# 30/50 4 4 4 2 2 Public Works, £200,000; Advances to | ""[Settlers, £125,000 ; Advances to Local If Authorities, £75,000 ; Land for Settlelaments, £100,000. Charges and expenses, £3,000,000 loan. Public works. 100,000 100,000 100,000 100,000 Julv 11 Aug. 5/6 Aug. 6/14 Sept. 26 Par 981 98| 100J 30/50 30/50 30/50 16 4 4 4 4 4 2 6 4 2 7 4 2 7 4 3 11 ?j 27 16 3* 4 4 5 8 4 5 2 Redemption of debentures, 13th November, 1913 (Aid to Public Works, 1908). Charges and expenses, £3,000,000 loan. 25,000 35,000 Oct 30 Dec. 1 90 981 jj jj 18,000 1914. 16 4 4 4 11 Redemption of debentures due 15th January, 1914 (Advances to Settlers). Redemption of debentures due 1st July, 1914 (Advances to Settlers). Charges and expenses, £3,500,000 loan. Jan. 2 98f 100,000 ; Jan. 15 99 16 4 4 4 10 100,000 30,000 Jan. 29 Feb. 27 99J 102J 16 16 4 4. 4 4 7 3 19 10 jj jj 11, 223, 000

Fund or Account. 1911-12. 1912-13. 1913-14. £ Consolidated Fund (Treasury bills) State Coal-mines Account Scenery Preservation Account 'ublic Works Fund 500,000* 20,000 5,000 76,750 £ 175,000* 25,000 15,000 49,000 £ 200,000* 14,000 115,000* * These amounts were repaid during the respective financial years.