GOVERNMENT LIFE INSURANCE ASSOCIATION.

Hawke's Bay Herald, Volume XXII, Issue 7180, 4 June 1885, Page 3

GOVERNMENT LIFE INSURANCE ASSOCIATION.

r . Wellington, Wednesday. ' : ••_ .-.The, Treasury have permitted the folei>: lowing letter from the Colonial TreaCv : surer to the chairman of the Finance ;£i.l . Committee of the Government Inaurf^ ance Association to be published, on ;% ''■"■ account of its general information: — h ? •::-,• •" I have the honor to state that I think h! : it- ia desirable the association should ■£;.';- come to an agreement with the Governfr;, ment- as to the nature of the inveßtfe: mentaof the funds of the association. S?;v In consequence of its guarantee the 8%. "Government. are deeply interested in the $}, : ) : :\nature of the association's investments, !^ ; / rjatill I recognise that it is undesirable i|r. ; ; ' that the Government should interfere 14".. .Vith the. Board's investments beyond A?\r^ the measure, required for the GovernPv* , jment's own protection. lam of opinion the requisite security on one side f|?V ; and freedom^ on the other may be at-|&-Stained by prescribing the nature of f|£%/4p vestments and the minimum of the securities. Such seems to sly^fiaye been the, intention of . the wj^p'Aiai, judging from clause 74, which Mi*X*fmveß the Gpvernor-in-Council power to, declare what are to be deemed |f|pf*£proper securities. Before such power exercised I should like to agree Kf^Tyith the Board as to its being exer|^M;f ciaed iri.a.manner that will be acceptable. is that the Board shall be B^p*limited~to four classes of investments :-r H^^(l)*lQa4s; on^ policies ; :(2) purchase^ of B^Kdeb^ntMe' ; ibondsj, •;; obligation, or in-

soribed stock scoured on the consolidated revenue of New Zealand which I will hereinafter describe aa Government securities ; (3) debentures issued tinder Parliamentary authority by local bodies ; (4) loans on mortgage of freehold property. I propose that for any investments outside of these fourolasses the Board shall obtain special authority from the Governor-in-Council. I propose, moreover, that the Board shall be bound to invest two-fifths of its entire assets in Government securities, any investments beyond that amount to be at the option of the Board. The Auditor-General to decide in case of dispute what are current assets from time to time. If these terms are acceptable to you I will endeavor to have effect given to them by Order in Council, and I will at once reduce the amount of the Government securities you hold to the minimum as before stated. — Julius Vogei.."