8.—6

XX

The smaller subscriptions, made chiefly out of the savings of the people through the Post Office Department, amounted to no less a sum than £1,415,000, and I want to thank the small investors for the great assistance they have given in providing so large a portion of the loan. I have mentioned above that during the early stages of the war the Imperial Government provided all the funds required by the Dominion, for war purposes. The amount so provided amounted to £14,410,000, but in addition to this amount there was a sum of £3,250,000 advanced for the redemption of certain loans which were maturing about the end of 1914, making a total of £17,660,000 advanced since the commencement of the war. The Dominion gave to the Imperial Government, as security for these several advances. Treasury bills and memoranda of agreement which were renewable year by year. While in London I arranged with the Imperial Government to extend the currency of the greater portion of these loans until 1945 and 1947. By doing so the necessity for going upon the London market during the war was avoided, and it will be recognized that a great saving to the Dominion has been effected. I am sure that the terms obtainable in the open market would have proved most costly to us, and it must be remembered that the country has saved underwriting, commission, brokerage, and other charges, which axe inseparable from the floating of a loan on the London market. It is important to remember that by deferring these heavy liabilities for so many years our financial position after the war will be given greater stability. LOAN FOR PUBLIC WORKS. The expenditure on public works during the war has been greatly curtailed, and in consequence it has been possible from time to time to borrow sufficient money from the Post Office to enable provision to be made for this expenditure. During the year 1916-17 amounts totalling £500,000 were thus borrowed from the Post Office, and there was at the 3.lst March an unexhausted authority for £745,100 available for further necessities. Although the public-works expenditure will be kept as low as possible during the current year, it will be necessary during this session to ask the House for an additional authority for £750,000. Of this amount £250,000 will be required for telegraph extension. No public loan will, however, be required for these purposes. RESULT OF THE YEAR'S OPERATIONS. Consolidated Fund : Ordinary Revenue Account, — £ Balance brought forward on Ist April, 1916 .. .. .. 2,166,077 Receipts during year, — £ Revenue .. .. .. .. 18,335,347 Other receipts — Recoveries on account of £ previous years .. 19,847 Sinking fund set free .. 12,353 32,200 £ 18,367,547 Expenditure during year, — Appropriations .. .. .. .. 14,058,770 — 4,308,777 Balance on 31st March, 1917 .. .. £6,474,854 This credit balance is large, and was intended by me to be so. The Dominion's financial war requirements are enormous, but not more than the country can stand. There is a considerable shrinkage in the revenue this year, and it is imperative that the Consolidated Fund should be in such a position that it can make up any loss of revenue, and also, if necessary, contribute a portion of the means required for carrying on the war.