8,—14.

It. will be seen that, although the amount lent during the year shows a considerable advance on that lent during the previous year, the net investments contracted slightly — evidencing the excellent manner in which periodical repayments under loans have been met. 29. Financial Position of Associations. —In June, 1935, a return of the financial position of all associations at the dates of their last accounts showed that 42 associations had 2,141 members, of whom 1,008 had received advances which were still current at the dates of the respective accounts. The membership of the individual associations varied from 21 to 209. The subscribed capital totalled £76,934, as compared with £75,005 shown by the return compiled in the previous year. The paid-up capital amounted to £4,137. Reserves stood at £962 12s. 9d., as compared with £1,014 for the previous year. The amounts owing to the Board by associations in respect of loans to their members totalled £204,748, while the amounts owing to associations by their members stood at £203,925. Repayments received from borrowers after the close of the various financial years had reduced the total amount owing by associations to the Board to £195,513, as shown above. These figures represent a decrease on the previous year, when the figures were £259,975 and £259,747 respectively. The average total of current advances for each association was £4,855, while the average per individual member was £202. The investments of individual associations varied from £440 to £26,649. These figures represent the balances owing under current advances and not the total business which has been transacted by associations. DIRECT LOANS. 30. Only a little more than one-half of the amount advanced under this method during the year ended 30th June, 1934, was advanced during the year under review. The system has continued to receive the support of dairy companies, a large number of which have made their guarantees available to suppliers. During the year the Board, for adequate reasons, reduced the limit fixed in respect of the guarantee of one company and cancelled the limits in respect of six other companies. The number of guarantees of companies accepted and in force at the 30th June, 1935, was 63, while guarantees from a few individuals were also held. 31. Position of Direct Loans.-—The position of the loans generally is sound, and any losses which can reasonably be anticipated are amply covered by the reserves created by the Board. Two losses sustained during the past year have been written off against the Board's reserves. 32. Business transacted under Part 111 of the Act.—The loan-moneys advanced during the year ended 30th June, 1935, totalled £16,924, as compared with £33,199 for the year ended 30th June, 1934. Thirty-one new loans (as distinct from further advances under existing loans) were taken up by borrowers direct from the Board during the year ended 30th June, 1935, and there were 391 loans current at the end of the year. The amount owing to the Board under this heading at the 30th June, 1935, was £62,339, as compared with £76,266 at the 30th. June, 1934. These figures show only the net investments after crediting repayments received from borrowers. DISCOUNTING. 33. During the year the Board, for adequate reasons, reduced the limit fixed for the acceptance of the endorsement of one company and cancelled the limits in respect of seven others. At the 30th June, 1935, the number of companies the endorsements of which had been accepted and were still in force was 47, while endorsements had been accepted from individuals in some cases. 34. Business transacted. —The discounts effected during the year totalled £1,717, as compared with £4,839 for the year ended 30th June, 1934. The total value of bills and notes outstanding at the 30th June, 1935, was £1,457, as compared with £2,310 at the 30th June, 1934. Twenty-nine new bills and notes were discounted during the year ended 30th June, 1935, and there were 29 bills and notes current at the end of the year.

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