H— 26

Investment of the Fund. —The total investments of the fund at each rate of interest were as follows :— New|Zcaland Government inscribed stock — £ s. d. £ s. d. 3| per cent. .. .. .. . . 226,530 0 0 4 percent. .. .. .. .. 466,560 0 0 693,090 0 0 Rural Advances bonds— 5 percent.* .. .. .. .. .. 236,155 10 0 Mortgage Corporation of New Zealand inscribed stock— 3§ per cent. . . . . .. . . .. 50,000 0 0 Debenture securities— per cent. .. . .. .. 240,635 16 2 4J per cent. .. .. .. .. 423,861 16 11 5 per cent.f .. . . .. . . 1,980 0 0 5J per cent.f . . . . .. .. 600 0 0 6 per cent.f . . .. .. . . 33,500 0 0 700,577 13 1 Mortgage securities— 3 percent. .. .. .. .. 20,225 0 0 3f per cent. . . . . . . .. 4,000 0 0 4 J per cent. .. .. .. .. 10,809 6 8 4J per cent. .. .. .. .. 423,767 5 8 4| per cent. .. .. .. .. 400,480 12 3 5 percent. .. .. .. .. 13,316 3 1 5J per cent.J .. .. .. .. 1,705 3 0 6 per cent.f .. .. .. .. 378,682 5 8 6f per cent.f •• •• ■■ 1,843 9 8 1,254,829 6 0 £2,934,652 9 1 * Subject to an interest-tax at the rate of 20 per cent, charged on all interest on and from Ist April, 1933. Vide section 6, Finance Act, 1932-33. f Interest on and from Ist April, 1933, 20 per cent, lower than the rate proscribed by the securities or to the rate of 4J per cent, per annum, whichever rate is the higher. Section 5, Local Authorities Interest Reduction and Loans Conversion Act, 1932-33. { Subject to a reduction of 20 per cent., but not to be reduced below the rate of 5 per cent, per annum. Part 111, National Expenditure Adjustment Act, 1932. A special payment into the fund was made by Treasury (amounting to £18,648), being the amount of the reduction in the interest-rate of the four classes of securities. The above total includes £22,338 16s. 6d. invested on Stipendiary Magistrates' account. The average rate of interest earned for the financial year on the mean funds was £4 15s. Id. per cent., a reduction of 3s. 7d. per cent, as compared with the previous year. In this connection it must be understood that the amount of interest due and outstanding and interest accrued but not due at the balance date is taken into account in arriving at the before-mentioned rate. Reference to the balance-sheet discloses that the sum of £30,172 is overdue on mortgage securities. The Courts, acting under the powers contained in the Mortgagors and Lessees Rehabilitation Act, 1936, have written off during the year arrears of interest totalling £5,769 13s. 7d. ; whilst the Board, acting under the provisions of section 77 of the same Act, has written off £342 10s. Operations of the Fund.—The following comparative statement shows the operations of the fund (to the nearest pound) as disclosed in the Revenue Accounts and Balance-sheets for the twelve-year period ended 31st March, 1938 : —

3

Income. Expenditure. Contributions. Interest on Year. : wiippI i< Adminis- Mlacel- \cciimu--P'oyees. x I ~ tt fi=£ K ~ "' E~, >™ U&KSu. £ £ £ ££££ ££ £ 1926-27 .. 246,635 100,669 139,369 899 328 45,341 322,759 7,881 28 2,429,290 1927-28 .. 249,301 100,955 146,351 439 504 50,193 338,138 7,932 2,124 2,528,454 1928-29 .. 253,593 101,130 147,040 332 269 44,234 351,396 8,070 1,176 2,625,943 1929-30 .. 263,424 201,707 154,612 146 405 50,107 367,496 8,158 2,472 2,818,004 1930-31 .. 271,423 102,289 162,888 264 422 40,754 381,243 8,418 8,775 2,917,154 931-32 .. 190,347 102,757 168,453 238 486 48,552 431,922 8,650 2,277 2,888,034 1932-33 .. 226,420 141,038 166,814 447 302 45,345 472,288 7,620 387 2,897,415 1933-34 .. 228,650 144,129 157,200 651 4,464 37,551 486,925 7,180 1,287 2,899,564 1934-35 .. 238,844 149,766 153,333 185 19,086 40,065 488,836 7,429 6,997 2,917,452 1935-36 .. 256,249 148,512 151,599 176 8,770 44,804 494,988 7,250 1,477 2,934,240 1936-37 .. 306,292 164,668 142,831 689 2,551 45,644 498,677 7,150 1,901 2,997,898 1937-38 .. 344,583 175,544 137,751 327 323 53,454 515,044 7,543 8,201 3,072,185