H.—'26

Balance-sheet. —On the 31st March the total assets of the fund, which include provision for the outstanding accounts, amounted to £3,209,585 os. Bd. The balance-sheet appended gives full particulars as to the liabilities and assets. Investment of the Fund. —The total investments of the fund at each rate of interest were as follows :— New Zealand Government inscribed stock — £ s. d. £ s. d. 3J per cent .. .. .. .. 327,214 0 6 4 per cent. .. .. .. .. 702,715 10 0 1,029,929 10 6 Mortgage Corporation of New Zealand inscribed stock — 3f per cent. .. .. .. .. .. 50,000 0 0 Debenture securities— 3| per cent. .. .. .. .. 251,194 2 9 per cent. .. .. .. .. 429,275 3 6 5 per cent.* .. .. .. 1,980 0 0 6 per cent.* .. .. .. .. 22,500 0 0 704,949 6 3 Mortgage securities— 3 per cent. .. .. .. .. 20,000 0 0 3| per cent. .. .. .. .. 4,000 0 0 4| per cent. .. .. .. .. 32,891 2 8 4J per cent. .. .. .. .. 469,036 9 3 4J per cent. .. .. .. .. 487,610 10 5 4J per cent. .. .. .. .. 3,561 15 0 5 per cent. .. .. .. .. 15,290 10 0 6 per cent.| .. .. .. .. 218,535 7 1 6J per cent.f .. .. .. 1,843 9 8 1,252,769 4 1 £3,037,648 0 10

* Interest on and from Ist April, 1933, 20 per cent, lower than the rate prescribed by the securities or to the rate of 4-J per cent, per annum, whichever rate is the higher—Section 5, Local Authorities Interest Reduction and Loans Conversion Act, 1932-33. f 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 £16,268 16s. lid.), being the amount of the reduction in the interest-rate of the two classes of securities. The above total includes £23,973 10s. 6d. invested on Stipendiary Magistrates' account. The average rate of interest earned xor the financial year on the mean funds was £4 ss. 2d. per cent., a reduction of 9s. lid. 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 £12,913 2s. 7d. 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 £9,438 16s. 5d., whilst the Board, acting under the provisions of section 77 of the same Act, has written off £566 ss. 9d. 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, 1939 :—

3

Income. Expenditure. Contributions. Interest on Arrears of Miscel- Rpfnrulq Ppmirvna frwtint? Miscel- AccumuEmployees. CoX£ laneoM - Exposes. Iane ™ 8 - lated Funds. ££££££££££ 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 1931-32 .. 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 1938-39 .. 370,400 244,114 130,688 227 1,347 64,220 527,726 7,691 20,314 3,199,010