8.—13 a

The capital outstanding on mortgage accounts is £50,379,573, including the current account advances referred to above. The average loans on respective classes of securities are as follows : —■ £ Residential.. .. . . .. .. . . .. .. 557 Rural .. .. .. .. .. .. .. .. 1,173 Current account .. .. .. .. .. . . .. 458 The cash position at the end of the year was satisfactory, having regard to the loan commitments outstanding. Tabulated statement of profits and percentages appears hereunder : —

Profits and Percentages.

24. Organization and Staff. —-The change in the constitution of the Corporation as the result of the passing of the State Advances Corporation Act, 1936, necessarily affected the status of the staff. The legislation provided that all persons who on the commencement of the Act were permanent officers of the Corporation should thereupon be deemed to be officers of the Public Service within the meaning of the Public Service Act, 1912, and should hold office accordingly as if they had been appointed under that Act. Special provision was made in regard to the superannuation rights of officers with a view to safeguarding the position of those officers who were formerly officers of the Public Service and contributors to the Public Service Superannuation Fund. Officers who were not previously contributors to the Public Service Superannuation Fund but who, in the meantime, had been appointed as permanent officers of the Corporation were given the right to become contributors to the Public Service Superannuation Fund. In the year under review the organization has developed rapidly. New business has expanded, additional mortgage assets to the total value of approximately £11,500,000 have been transferred to the Corporation for administration, existing branch offices have been increased in scope, and five additional branches and two sub-offices have been opened, and from being dependent upon the Valuation Department for all field services the Corporation now has complete field representation by its own officers, in both urban and rural spheres. The Board feels that the district representation which it now has through its branch offices and field staff is such that the Corporation should be well equipped to give efficient service to its mortgagors and to potential borrowers, and to cope with the problems of the future.

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Disposition and Appropriation of Profits for Year Percentage per Annum Percentage Percentage ending 31st March, 1937. of the Stock Issue of Gross of Gross plus Capital. Earnings. Profits. £ £ s. d. Gross earnings .. .. .. .. 1,983,513 4-864 (4 17 4) 100-000 Less Capital charges—Interest .. .. 1,236,282 3-032 (3 0 8) 62-328 Gross profits .. .. .. .. 747 ,231 1-832 (1 16 8) 37-672 100-000 Less Management expenses and depreciation 129,882 0-319 (0 6 5) 6-548 17-382 of fixed assets 617,349 Reserve for losses (ex State and Corporation) 102,500 0-251 (0 5 0) 5-168 13-717 514,849 Dividends ... .. .. .. 4,558 0-011 (0 0 3) 0-230 0-610 Surplus for year 1936-37 .. .. .. 510,291 1-251 (1 5 0) 25-726 68-291 (1 16 8) 37-672 100-000 Plus Superannuation Reserve not now required 14,749 525,040 Less Additional income-tax due, 1935-36 .. 58,020 Surplus due to Crown .. .. .. £467,020