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scheme. It is anticipated that applications of this type will show a steady increase during the next few years. During the year under review, loans were granted involving a sum of £10,409, and the total loans outstanding at the end of the year amounted to £19,482. DISCOUNTING OF PROMISSORY NOTES Bills discounted by the Board during the year totalled £286, and the investments at the end of the year under this heading amounted to £138 REVENUE ACCOUNTS AND BALANCE-SHEET The accounts for the year ended 30th June, 1944, are being submitted by separate reference in terms of section 38 of the Act. Investments of the Redemption Fund show an increase of approximately £5,000 on the previous year's figures. Advances to associations have decreased by £30,000, but there is an increase in the Part 111 loans of £13,500. The amount now held by the Board in temporary investments, Government securities, and cash balances, aggregating £196,371, represents an increase of £25,375 on last year's figures. Expenditure for the year shows little variation, the main items being interest on loan capital, £12,000, and management expenses, £2,044. Revenue derived from the investment of funds available for the Board's normal lending activities has been augmented by the transfer of £4,948 from the Redemption Fund Income Account in terms of section 17 (3) (a) of the Rural Intermediate Credit Act. We agilin desire to record our appreciation of the valuable assistance rendered by the members of district boards and association directors, who have been responsible for the management of the bulk of the lending business. T.' N.' Smlmood } Joint Managing Directors.

RURAL INTERMEDIATE CREDIT BOARD Profit and Loss Account fob the Yeab ended 30th June, 1944 Dr. £ Or. £ Management expenses .. .. .. 2,044 Interest on advances to associations .. .. 4,169 Travelling-expenses . . .. .. 8 Interest on advances to farmers . . . . 448 District board members' fees .. • . 7 Discount on bills discounted .. .. 12 General expenses .. .. .. • ■ 15 Interest on Government securities .. .. 4,328 Audit fees .. .. .. .. 75 Interest on short-term investment .. .. 219 Interest paid to Treasury .. .. .. 12,000 Sundries .. .. .. .. .. 25 Transfer from Redemption Fund Income .. 4,948 £14,149 £14,149 Balance-sheet as at 30th June, 1944 Liabilities £ £ Assets £ Establishment grant from Consolidated Investments of the Rural Intermediate Credit Fund .. .. .. 10,000 Redemption Fund and premiums on conLess expenditure to date .. .. 7,765 version: Government securities at cost and — 2,235 interest accrued .. .. .. .. 255,182 Advances from Consolidated Fund for pre- Advances to associations for preliminary expenses 58 liminary expenses of associations . . . . 850 £ AdvancesfromConsolidatedFundundersectionl6 400,000 Advances to associations .. .. 86,534 Rural Intermediate Credit Redemption Fund: Less reserve .. .. .. 1,679 Accumulated interest on investments and — 84,855 share of profits .. .. .. ..120,711 Advances to farmers .. .. 19,482 Rural Intermediate Credit Reserve .. .. 19,511 Less reserve .. .. .. 991 Reserve (premiums on conversion of Redemption 18,491 Fund investments) .. .. .. 1,137 Bills discounted .. .. .. 138 Sundry creditors .. . . .. ..11,545 Less rebate of interest .. .. 5 133 Overdue interest on advances .. .. 6 Accrued interest on advances .. . . 847 Sundry debtors .. .. .. .. 46 Government securities and accrued interest .. 157,864 Short-term investment and accrued interest .. 25,115 Cash at bank and in transit .. .. . . 13,392 £555,989 £555,989 T.' N.' Wlw F ood A ' N ' Z '' FRA N / - } Joint Managing Directors. W. G. Dent, 8.C0m., A.R.A.N.Z., for Chief Accountant. I hereby certify that the Balance-sheet and accompanying accounts have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby.—C. G. Collins, Controller and Auditor-General.

Approximate Cost of Paper.—Preparation, not given ; printing (507 copies), £3.

Authority: E. V. Paul, Government Printer, Wellington. —1944.

Price 3d.]

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