8.—9

12

offering them at a great sacrifice, so that in many cases if estates had been compelled to find money for the payment of death duties and the liquidation of urgent liabilities they must have done so at the cost of a serious loss of capital. The financial strength of the Office has enabled it to make advances to estates in these circumstances, and so tide them over their difficulties until conditions improve and restore assets to what may be regarded as their normal value. The importance of this advantage enjoyed by the estates controlled by the Office must be obvious, and in a report made to the Head Office a District Public Trustee in one of the most important districts of the North Island states : ' It is gratifying to be able to record that in no instance has it been necessary for any estate, through financial difficulties, to be realized at a sacrifice. This pleasing statement is possible not because the estates themselves were financially strong, but because the Office out of its own funds has advanced to the estates sufficient to tide over pressing financial difficulties, and thus avoid serious capital losses. This obvious advantage, especially at a time like this, will make a striking appeal to farmers and business men, and I do not think its importance can be overstressed." The total amount on advance to estates and beneficiaries on the 31st March, 1922, was £308,206. Omice Reserves. 25. The Office reserves, which have been built up out of profits made by the Office in successive years, amounted on the 31st March, 1922, to the considerable sum of £451,585. They consist of— £ Amounts held in the Assurance and Reserve Fund . . 159,757 Amounts held in the investment Fluctuation Account to provide against any possible depreciation in the Office securities .. .. .. .. 49,283 (Note. —Both these amounts are invested in the same mode as are moneys held in the Common. Fund of the Office.) Office premises, plant, equipment, &c. . . . . 242,545 £451,585 Income-tax. 26. Section 14 of the Land and Income Tax Amendment Act, 1920, removed the exemption from income-tax which the Office had previously enjoyed. The Office is now assessed on its profits at the same rate as a commercial company.

Comparative Table indicating the Progress made by the Public Trust Office during the Decennial Period 1913-22.

Year ended 31at March. Total Value of Estates in Office, including Unrealized Assets. Funds at Credit Interest of Estates and , credited to Accounts. Estates. Bonus granted to Estates. Gross Income. Office Reserves. I 1913 .. 1914 .. .. .. ; 1915 .. • 1916 .. 1917 .. 1918 .. 1919 .. 1920 .. 1921 .. 1922 £ 11,268,311 12,282,883 13,580,936 13,598,744 15,065,583 17,153,031 19,242,347 20,860,686 22,364,319 25,497,779 £ £ 5,799,446 202,439 6,366,707 230,062 7,096,420 256,806 7,082,288 281,700 8,058,886 287,818 9,004,057 317,633 10,065,027 352,783 11,911,290 420,526 13,918,906 537,890 15,329,125 556,587 £ 202,439 230,062 256,806 281,700 287,818 317,633 352,783 420,526 537,890 556,587 £ 25,000 27,000 30,000 33,100 38,000 £ 72,067 82,517 88,296 103,763 129,008 162,614 194,452 240,469 244,091 220,794 £ 72,067 I 82,517 88,296 103,763 129,008 162,614 194,452 240,469 244,090 220,794 £ 7 \ 151,011 7 212,901 3 250,213 3 302,369 3 295,234 4 345,871 2 393,377 9 418,640 l> 437,414 4 451,585 Increase in preceding 12 months 3,133,460 I I 3,133,460 1,410,219 18,697 23,296 23,296*! 6*| 14,171 i * Decrease.