B.—l [PT. 11l

PUBLIC ACCOUNTS, 1937 - 1 9 38.

TABLE VII.—TRANSACTIONS IN CONNECTION WITH THE PUBLIC DEBT IN THE YEAR ENDED 31st MARCH, 1938.

Details of above. External debt— £ s. d. 1. London (see note at end of table regarding Rural Advances bonds) .. .. Increase .. 120,000 0 0 . 2. Australia — £ s. d. -7-; 1 Decreases: Redemptions .. .. .. .. .. .. 92,600 0 0 Increase: Rural Advances bonds (see note at end of table) .. .. 83,300 0 0 ... Net decrease 9,300 0 0 Internal debt— —: 3. Long-term debt — Increases— New issues for capital works— £ s. d., £ s. d. Public Works Fund : General Purposes Account.. 3,899,726 3 1 Main Highways Account .. .. .. 1,676,800 0 0 State Forests Account .. .. .. 200,000 0 0 5,776,526 3 I New issues for redemptions .. .. .. .. .. 40,000 0 0 New issues for premiums on conversion .. .. .. .. 185 0 0 New issues for conversion of Treasury bills .. .. .. 1,425,000 0 0 Rural Advances bonds (see note at end of table) .. .. .. 4,009,750 0 0 11,251,461 3 1 Decreases — Redemptions from— Public Debt Repayment Account .. .. .. .. 1,621,211 3 1 Sinking Funds — Greymouth Harbour Board Debt .. ... .... .. 111,813 17 5 Electric supply .. . . .. .. .. .. 1,750 0 0 State coal-mines .. .. . . .. .. .. 9,180 0 0 Samoan loans .. .. .. .. .. .. 4,245 0 0 Nauru and Ocean Islands .. .. .. .. .. 39,675 0 0 Consolidated Fund .. .. .. .. .. .. 205 0 0 Loans Redemption Account .. .. .. .. .. 7,292,938 15 0 9,081,018 15 6 Net increase .. .. 2,170,442 7 7 Notes. —(1) For details of redemptions from Public Debt Ilepayment Account, see parliamentary paper 8.-2. (2) Money for new issues was borrowed at the following rates : 2£ per cent., £10,000 ; 3 per cent., £5,287,241 3s. Id.; 3per cent., £470,285 : total, £5,776,526 3s. Id. (3) Former shareholders of Reserve Bank and State Advances Corporation who now hold 4 per cent, stock have the option of requiring redemption of such stock on giving fourteen days' notice —£40,000 was borrowed during the year at 3 per cent, to meet such redemptions, which totalled £36,813 155., leaving £3,186 ss. unused at 31st March, 1938. (4) Included in the item Loans Redemption Account, £7,292,938 15s. is a redemption of £7,250,000. Cash for this was acquired from the sn le of State Advances Corporation stock received in exchange for State Advances Office mortgages taken over by the State Advances Corporation £3,250,000, and similar stock held by the Public Debt Redemption Fund £4,000,000. 4. Floating debt Increases — £ s. d. £ s. d. New issues for housing at I;[ per cent. .. . . . . . . 1,600,000 0 0 New issues for capital works at 2A per cent. .. .. .. 75,000 0 0 —— 1,675,000 0 0 Decrease — Bills issued 1936-37 converted into long-term securities .. .. .. .. 1,425,000 0 0 Net increase .. £250,000 0 0 5. Deed of hypothecation— Paid off .. .. .. .. .. .. .. Decrease .. 2,700,000 0 0 Note.—Cash for paying off the deed of hypothecation was acquired from the sale of State Advances Corporation stock held by Discharged Soldiers Settlement Account in respect of mortgages taken over from that Account by the State Advances Corporation. 6. Rural Advances bonds — £ s. d. Incorporated in Debt chargable on the Public Revenues .. .. Decrease .. 4,213,050 0 0 Note.— 111 terms of the Rural Advances Act, 1926, Rural Advances bonds were secured on the Rural Advances Branch of the State Advances Office, and interest was payable out of the Consolidated Fund and recoverable from that branch. The State Advances Corporation absorbed the Rural Advances Branch of the State Advances Office, and the mortgages on which the bonds were secured were thus merged in the general assets of the Corporation. In terms of section 7of the Finance Act, 1937, the bonds are now charged on the pubfic revenues in respect of both interest and principal, while the Rural Advances Act, 1926, was repealed in terms of section 10 of the same Act. In the table above, Rural Advances bonds have been incorporated in the amount of the Public Debt outstanding at 31st March, 1938, according to the domicile of the bonds —viz., London, £120,000 ; Australia, £83,300 ; New Zealand internal long teim, £4,009,750 —and to the extent of these figures the increases shown under these headings are not actual increases in the debt.

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Outstanding. ' ' ; - Increase. — Decrease. 31st March, 19S7. 31st March, 1938. External debt— £ s. d. £ s. d. £ s. d. London .. .. .. .. 156,737,016 7 2 156,857,016 7 2 + 120,000 0 0 ! Australia.. .. .. .. 891,900 0 0 882,600 0 0 — 9,300 0 0 Internal debt— Long-term debt .. .. .. 127,716,283 4 8 129,886,725 12 3 + 2,170,442 7 7 Floating debt .. .. .. 2,325,000 0 0 2,575,000 0 0 + 250,000 0 0 287,670,199 1110 -290,201,34119 5 Deed of hypothecation .. .. 2,700,000 0 0 .. — .2,700,000 0 0 Rural Advances bonds .. .. 4,213,050 0 0 .. — 4,213,050 0 0 294,583,249 11 10 290,201,341 19 5 - 4,381,907 12 5