8.~6.

Copy of Prospectus of 1935 London Loan. NEW ZEALAND GOVERNMENT £3 PER CENT. INSCRIBED STOCK, 1952-1955. (Interest payable Half-yearly at the Bank of England on the Ist January and the Ist July.) Issue of £8,000,000. Authorized to be raised, under the New Zealand Loans Act, 1932. A First Payment of Interest, at the rate of 15s. per £100 Stock, will be made on the Ist January, 1936. Price op Issue £98 10s. per Cent. Payable as follows:— £ s. On Application . . .. . . .. ..50 per cent. On Tuesday, Ist October, 1935 .. .. .. 93 10 „ £98 10 The Government of New Zealand undertake to observe forthwith the conditions prescribed under the Colonial Stock Act, 1900, as notified in the Ijondon Gazette of the 14th December, 1900, in order that Trustees may invest in this Stock under the powers of the Trustee Act, 1925, unless expressly forbidden in the instrument creating the Trust. The Governor and Company of the Bank op England give notice that, on behalf of the Agents appointed for raising and managing Loans under the above Act, they are authorized to receive applications for £8,000,000 New Zealand Government £3 per cent. Inscribed Stock, 1952-1955. If not previously redeemed, the Stock will be repaid at par at the Bank of England on the Ist July, 1955; but the New Zealand Government reserve to themselves the right to redeem the Stock, in whole on in part, by drawings or otherwise, at par on, or at any time after, the Ist July, 1952, on three calendar months' notice having been given in The Times of such intended redemption. In the latter event the Stock will cease to bear interest on the date fixed for such redemption. The New Zealand Government Stock issued and payable in London and the interest thereon so payable, the property of persons not domiciled in New Zealand, are not, and will not be, subject to any taxes, duties, or levies by the Dominion. By Act 40 and 41 Vict. Ch. 59, the revenues of the Dominion of New Zealand alone will be liable in respect of this Stock and the dividends thereon and the Consolidated Fund of the_ United Kingdom and the Commissioners of His Majesty's Treasury will not be directly or indirectly liable or responsible for the payment of the Stock or of the dividends thereon, or for any matter'relating thereto. The proceeds of the Issue will be applied to the repayment on the Ist October, 1935, of New Zealand Government £5 per Cent. Inscribed Stock, 1935-1945, of which due notice is being given in the London Gazette and The Times. The total amount of this Stock now outstanding is £10,135,800, and the balance of the moneys required for repayment is being provided by the New Zealand Government so that the present operation involves an actual reduction in the Public Debt. The transactions of the New Zealand Ordinary Revenue Account for the year ended 31st March, 1935, including £1,578,000 provided from revenue for the redemption of debt and without recourse to reserves, resulted in a surplus of £626,000. The Exports from New Zealand during the financial year ended the 31st March, 1935, amounted to £44,918,000 and the Imports to £32,568,000, resulting in a favourable visible balance of trade of £12,350,000. Returns at present to hand in respect of the current financial year indicate that a favourable balance is being maintained. The gross Public Debt of the Dominion on the 31st March, 1935, was £280,580,000, being a decrease compared with the previous year of £22,210,000. This reduction was brought about chiefly by the redemption in full of all short-term debt, Treasury Bills totalling £22,857,000 being paid off during the year. An increase of £3,300,000 in long-term debt was offset by the redemption of a further £2,653,000 of this class of indebtedness, the net result on all public debt transactions thus being the reduction of £22,210,000 already referred to. The redemptions include a portion of the War Debt, which has been reduced from £81,840,000 in 1921 to £65,330,000 on 31st March, 1935. This shows a total reduction in the War Debt of over £16,500,000 since 1921. All Reparation moneys received from Germany have been applied in the reduction of War Debt. The new loan moneys received during the year were applied principally to Public Works (Railways, Electric Power, Telephone and Telegraph Extensions, and other productive works).

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