11

8.—9

In addition to the above-mentioned investments the following special investments were held on the 31st March, 1922, on behalf of various estates and funds : — £ Government securities . . . . . . . . 99,846 Local bodies'debentures .. .. .. 243,220 Private debentures . . .. . . .. 2,447 Mortgages .. .. .. .. .. 1,148,150 £1,493,663 The Common Fund investments made during the past year totalled £1,393,176. The classes of investment were as follows :— £ £ Mortgages .. .. .. .. .. 511,534 Local bodies' debentures — Borough Councils and Town Boards . . 244,886 County Councils and River and Road Boards . . . . . . 305,856 Harbour Boards . . . . . . 55,650 Electric-power Boards . . . . 250,250 856,642 Government securities .. .. .. .. 25.000 £1,393,176 Investment in Goveenment Securities. 22. On the 31st March, 1922, the sum of £315,386 was received from the Treasury, that amount being the balance of instalments payable for the financial year with respect to the War Loan sinking funds. Arrangements are in hand to invest £200,000 of that amount in New Zealand inscribed stock at oj per cent. Overdue Interest. 23. In common with other lending institutions, the Office has experienced difficulty in collecting some of the interest payable under its mortgages, while at the same time it has been necessary to maintain the regularity of payments of income to clients whose money is invested in the Common Fund of the Office. The payment of this income is guaranteed by the State, and clients have not been called upon to wait for their money beyond due date. The value to beneficiaries of investment in the Common Fund has been very fully demonstrated during the past year, and, irrespective of the fact that certain mortgagors have failed to pay the interest on their loans, the payment of income due to clients has continued without fail. At the end of the year under review the amount of interest outstanding showed a reduction on previous months, and it is confidently expected that the amount ultimately unrecovered will be very small. As a result of the financial stringency the collection of interest on local-body loans has become increasingly difficult. In some cases payment has been made only after persistent demands, and this has involved a large amount of additional correspondence. Considering the very large amount of money invested, the interest on which for the past year amounted to £682,452, and the financial stringency at present being felt, the interest outstanding is not very great, but it has only been by constant effort that this result has been achieved. The policy of the Office at the present time is to deal with all mortgagors as leniently as possible consistently with the safety of the moneys invested. Each individual case is treated on its merits, and everything is done to meet the mortgagors as far as possible. Advances to Estates and Beneficiaries. 24. The financial resources of the Office have proved to be of the utmost advantage to estates under administration during the past year. As already mentioned, the conditions have been extremely unfavourable to the realization of assets without