8.—13 A.

The capital outstanding on mortgage accounts is £50,790,020, including the current account advances referred to above. The average loans on respective classes of securities are as follows :— £ Residential. . . . . . . . .. . . .. .. 587 Rural .. . . , . . . .. .. . . 1,145 Current account .. . . . . . . . . .. .. 478 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 :—

21. Staff. —Following the transfer of the balance of the discharged soldiers settlement loans to the Corporation towards the end of last year and the establishment of branch offices, it was found that farther staff was needed to complete the organization both at Head Office and at the District Offices. Another matter which has caused some difficulty in providing the necessary personnel at the various centres has been, the acceleration of the mortgage-adjustment work by the Court of Review and the Adjustment Commissions. When additional Commissions were appointed the Corporation was required to allocate more officers to this branch of the work to obviate delay in presenting the Corporation's cases when the Adjustment Commissions' programmes had been arranged. There has also been a need for the appointment of additional Property Supervisors to cope with the new business activities arising from the extension of the special-loan policy. Owing to the various changes and extensions in the Corporation's work it has been necessary to call upon the staff to give some additional time, beyond the normal working-hours, to ensure that prompt attention was given to the special work that has arisen during the past financial year. The Board is fully appreciative of the loyal co-operation and willing service given by the administration officers and all sections of the office and field staff. A. D. Park, Chairman of Directors. T. N. Small wood, Deputy Chairman of Directors. G. A. Lewin 1 , v - , B. C. Am™

13

Disposition and Appropriation of Profits for Year ending Percentage per Annum Percentage Percentage 31st March, 1938. of the Stock Issue of Gross of Gross plus Capital. Earnings. Profits. £ £ s. d. Gross earnings .. .. .. ..2,433,100 5-713 (5 14 3) 100-000 Less capital charges: Interest .. .. 1,532,801 3-599 (3 12 0) 62-998 Gross profits .. .. .. .. 900,299 2-114 (2 2 3) 37-002 100-000 Less management expenses and depreciation 212,185 0-498 (0 9 11) 8-721 23-568 of fixed assets 688,114 Reserve for losses (ex State and Corporation) .. 106,000 0-249 (0 5 0) 4-357 11-774 Surplus for year ended 31st March, 1938, due to 582,114 1-367 (1 7 4) 23-924 64-658 the Crown — 2-114 (2 2 3) 37-002 100-000 Add excess income-tax provision for 1936-37 3,937 £586,051 _