GOVERNMENT INSURANCE INVESTMENTS.

Thames Advertiser, Volume XVI, Issue 5185, 4 June 1885, Page 3

GOVERNMENT INSURANCE INVESTMENTS.

...' ,» ■■ J,. (■ "■' ■!. [P«r Press Association.] i : r Wellington,, Wednesday/.'. The Treasury has permitted the following letter, from the Colonial Treasurer.to the : Chairman of the Finance Commissioner of the Government' Insurance Association, to be published, on account of its general interest:-"l have the honour to state' that I think it is desirable the Association should ' comd 'to .an agreement \ with the'Governmerit as to the nature of the iavoatment bf'the funds of the Association! In consequence of .its guarantee, Government is,largely interested'in the nature .of the Association's 'investments; Still I recognize that it is undesirable! that Government.should interfere with! the Board's investments beyond the.measure required for Government's own protection. I am of opinion that requisite security : on one side, and freedom on the 'other,may be attained by prescribing the nature'of investments and the minimum of Government Such seems to have! been the intention of the Act, judging from Olauso 74, which gives the Governor. in-Council power to declare what are to be' deemed proper securities. before • such power is exercised. I should like to. agree 'with'the/Board as to its being exercise in,a manner' that ■ will be acceptable; ~My I pro-; posal is : that the Board shall be' limited ; to four;ctaes of inyestmenis }.- r (l) : ijoans, on policies; (2) purchase of debentures,; bonds, obligations,, or. insoribed stock, secured "on the consolidated revenue' of New Zealand, which I ( will hereinafter! describe as Government .'securities;! (3) : debentures',issued":under. parliamentary! authority by local bodies V- (4,) loans on mortgage of freehold property. I propose'; that for any investments outside of these four classes, the Board shall obtain special: authority .from the Governor in Council. I purpose, moreover, that the Board shall bo bound to invest two-fifths of its entire assets in Government securitieß, r 'auy in- ; vestments beyond ; that amount,..to "be at the! 1 option of the Board ;' ! tlio 'AuditorGeneral to decide incase of dispute! are current assets from tihie to time.], If these,;terms', are acceptable will, endeavonr!, to. have 'effect', given to' them by. Order-in-Council, and. I will at once re-; duce the amount of Government securities you hold to the minimum before'stated.— l Julius Yodel.'! ? •;■ ... „■•..(.., .;.!:>