THIRTY MILLIONS

Lake Wakatip Mail, Issue 4011, 4 August 1931, Page 2

THIRTY MILLIONS

THE ACCUMULATED SURPLUSES WHERE THE MONEY HAS GONE WELLINGTON, July 28. The accumulated surpluses of the dominion have again come into prominence as a result of their discussion in the House in connection with the Dotation of the recent London loan. There seemed to be an impression in the minds of many critical members that these millions have practically disappeared, and the Government had to defend itself against a charge of misrepresentation for taking credit for the existence of a comfortable credit during hard times. When the Financial Statement is presented on Thursday one of the tables attached to it will give the full details of this fund, showing exactly how it has been applied and disclosing the reassuring fact that a large proportion of these accumulations are still in sufficiently “ liquid ’’ form to bo of assistance to the country in meeting current deficits. For the year ended March 31 last the deficit is already disclosed, so that the accumulated surpluses account will show the following debits: —

To balance revenue and expenditure—--1921-22 £279,831 J928-29 713,966 1930-31 1,600,000 It isjpvident, consequently, that over two aim a-half millions sterling of the surpluses have been used up to meet deficits. The same fund has also been drawn upon in flourishing years to make payments into the Public Works Fund for capital expenditure to the extent of £3,250,000, which is saving the taxpayer interest on loans to that amount. Loans have been redeemed out of the fund to the total of £6,657,901, another heavy saving of interest, and Bank of New Zealand shares have been bought from it, the expenditure under this heading, £984,375, constituting an in-terest-earning investment worth considerably more than the lace value credit item in the fund. Discharged soldiers’ settlement has been financed from this fund to the extent of £13.700,000, and some proportion of this, the largest expenditure, must be still regarded as an asset, though subject to considerable depreciation. Another important item is £2,000.000 in the reserve fund securities account, from which one and a-half millions have been temporarily withdrawn to finance the rehabilitation of Hawke's Ba.w The Government has also taken £255,400 from the accumulated surpluses lor subsidies for relief of unemployment, an item which may be regarded as “ written off " in the same way as expenditure to meet deficits. However, with all its expenditures, the fund should disclose liquid assets comprising investments totalling about £714,000, apart from the half-million ■ remaining to the credit of the reserve fund securities account and such solid assets as tin* Bank of New Zealand shares and an advance of £272,100 to the Rural Intermediate Credit Board.