PUBLIC ACCOUNTS FOR THE FINANCIAL YEAR 1939-1940. PART III. PREPARED BY THE TREASURY DEPARTMENT. CERTIFIED TO BY THE CONTROLLER AND AUDITOR-GENERAL. ALSO STATEMENT SHOWING THE PUBLIC DEBT OF THE DOMINION AS ON THE 31st MARCH, 1940.

Appendix to the Journals of the House of Representatives, 1940 Session I, B-01-part03

B.—l [Pt. lIIJ.

1940. NEW ZEALAND.

PUBLIC ACCOUNTS FOR THE FINANCIAL YEAR 1939-1940. PART III. PREPARED BY THE TREASURY DEPARTMENT. CERTIFIED TO BY THE CONTROLLER AND AUDITOR-GENERAL. ALSO STATEMENT SHOWING THE PUBLIC DEBT OF THE DOMINION AS ON THE 31st MARCH, 1940.

I—B, 1 jPr. Ill]

B.—l (PT. lII]

CONTENTS.

PAOB TABLE I.—THE PUBLIC DEBT Oil' NEW ZEALAND OUTSTANDING ON 31st MARCH, 1940 .. 3 TABLE lI.—STATEMENT OF ADVANCES BY THE RESERVE BANK TO THE GOVERNMENT BY WAY OF OVERDRAFT OUTSTANDING ON 31st MARCH, 1940 .. .. 9 TABLE lII.—STATEMENT OF LOANS GUARANTEED BY THE GOVERNMENT .. .. 10 TABLE IV.—STATEMENT OF THE PUBLIC DEBT FUNDED IN TERMS OF SECTION 8 OF THE FINANCE ACT, 1922 .. .. .. .. .. .. .. .. 11 TABLE V.—STATEMENT OF SINKING FUNDS ACCRUED TO THE 31ST MARCH 1940 .. .. 12 TABLE VI.—STATEMENT OF RECEIPTS AND DISBURSEMENTS OF THE SINKING FUNDS DURING THE FINANCIAL YEAR ENDED 31st MARCH, 1940 .. ... .. 12-13 TABLE VII.—STATEMENT OF TRANSACTIONS IN CONNECTION WITH THE PUBLIC DEBT IN THE YEAR ENDED 31ST MARCH, 1940 .. .. .. .. .. 14 TABLE VIII.—STATEMENT, AS AT 31st MARCH, 1940, SHOWING ANALYSIS OP THE PUBLIC DEBT ACCORDING TO THE EXPENDITURE APPEARING IN THE DEPARTMENTAL BALANCE SHEETS PREPARED IN TERMS OF SECTION 57 OF THE FINANCE ACT, 1932 .. .. .. .. .. .. .. .. 15

THE PUBLIC DEBT OF NEW ZEALAND. TABLE I.—STATEMENT OF SECURITIES CHARGED ON THE PUBLIC REVENUES OF NEW ZEALAND AND OUTSTANDING ON 31st MARCH, 1940.

B. -1 HPt. 11l

PUBLIC ACCOUNTS, 19 39-1 94 0

3

Annual Charge. Domicile of Principal. Nominal i — — Amount Due Date. j I Remarks outstanding. J g Nominal w , T , Q , roKlo xr r „ 1-2 Interest. When payable. New Zealand. London. Australia. rtS , • 1 __ , New Zealand Loahs Act, 1932: — £ s. d. % £ £ s. d. £ s d £ Debentures aud Stock .. .. 1,615 0 0 Various. .. .. .. 1,615 0 0 ' Unpresented 600 0 0 1 Sept., 1937 5J 33 1 Mar. and 1 Sept. 600 0 0 !. !! 1 0 , 2,000 0 0 15 Nov., 1938 4| 90 15 May „ 15 Nov. 2,000 0 0 .. I Subject to conversion under New 200 0 0 20 April, 1939 9 20 April and 20 Oct. '200 0 0 " " f Zealand Debt Conversion Act. 500,000 0 0 15 Sept., 1940 3J 16,250 15 Mar. and 15 Sept. 500,000 0 0 . . 1,000,000 0 0 15 Dec., 1940* 4 40,000 15 June „ 15 Dec. .. 1,000,000 0 0 * Repayable at the option of the Government at any time prior to 5 0 0 15 Dec., 1940 4-l- .. 15 June ,, 15 Dec. 5 0 0 .. .. Subject, to conversion under New no AAt , „ ,, . ,, ,, _ , ,, , ,, Zealand Debt Conversion Act. 98,445 0 0 1 Mar., 1941 2f 2,707 1 Mar. „ 1 Sept. .. 98 445 0 0 10,300 0 0 1 July, 1941 4J 464 1 Jan. „ 1 July .. ' 10 300 4,613,505 0 0 15 July, 1941t 3 138,405 15 Jan. „ 15 July 4,613,505 0 0 .. .! f Repayable at the option of the Government at par on or after 15th July, 1939, 011 three months' 7,000 0 0 1 Aug., 1941 4| 315 1 Feb. ,, 1 Aug. .. 7 qqq 3,001,215 0 0 15 Nov., 1941 J 3f 112,546 15 May „ 15 Nov. 3,001,215 0 0 !. .! J Repayable at the option of the Government at par on or after 15th November, 1938, on three 37,000 0 0 1 Mar., 1942 4 1,480 1 Mar. „ 1 Sept. 37,000 0 0 .. .. months' notice. 1 Feb., 1943 .... .. .. .. _ _ Option t.o repay £10,884,628 matur- . „ p , . ing 1st February, 1963. ' .. .. .. .. .. ., Option to repay £9,840,855 matur1,730,225 0 0§ 15 Mar., 194311 3J 60,558 15 Mar. and 15 Sept. 1,730,225 0 0 .. .. S Securities co™erted 9 under New 11,948,645 0 0 15 Mar., 1943 1| 4 477,946 15 Mar. „ 15 Sept. 11,948,645 0 0 .. .. S S ConvSn A™ 1932—33, with condition of interest free of income-tax continued up to the interest date coinciding with or next following the pre-conversion maturity date, after which the rate of interest is automatically adjusted to 4 per cent., as follows: £347,215, 15th March, 1941; £1,383,010, 15th September, 1941: total, £1,730,225. || Repayable at the option of the | Government at par on or after Carried forward .. 22,950,755 0 0 .. .. 850,803 j .. 21,835,010 0 0 1,098,445 0 0 17,300 months^'^ofee/ 940 '

B.— 1 IPt. 11l

PUBLIC ACCOUNTS, 1 939-1940

THE PUBLIC DEBT OF NEW ZEALAND. TABLE I.-STATEMENT OF SECURITIES CHARGED ON THE PUBLIC REVENUES OF NEW ZEALAND AND OUTSTANDING ON 31st MARCH, 1940—continued.

4

Annual Charge. Domicile of Principal. Nominal . ■ j Amount Due Date. «g| | | Remarks. outstanding. «| j When payable. New Zealand. London. Australia. as -*- i interest-. j ! _ £ a. d. % £ £ s. d. £ a. d. £ Brought forward .. 22,950,755 0 0 .. .. 850,803 .. 21,835,010 0 0 l,098,44o 0 0 17,300 New Zealand Loaks Act, 1932 QOTltitlll&jl. Debentures and Stock —continued. 7,339,656 4 9 1 Mar., 1944 330,284 1 Mar. and I Sept. .. 7,339,656 4 9 16,000,000 0 0 1 Jan., 1940-5* 3J 560,000 1 Jan. „ 1 July .. 16,000,000 0 0 .. * The stock will be redeemed by purchases at or under par exclusive of accrued interest or by halfyearly drawings at par, in sums of £100, commencing 1st July, 1940. The New Zealand Government have undertaken to repay by instalments as set out below the whole of this issue by 1st January, 1945 : In the year ending 31st December, 1940, £2,000,000; 1941. £3,500,000; 1942, £3,500, 000; 1943, £3,500, 000; 1944, £3,500,000. These instalments will be made available by two equal payments in each year on or before the 30th June and I the 31st December respectively, commencing 30th June, 1940. i During the periods 5th to 20th I June and 5th to 20th December ! in each year commencing in 1940, holders of stock, including holders I of stock drawn in accordance with the above provisions, will have the option of converting such stock in sums of £100 as to one- ! half into New Zealand Government per cent, stock, 19491954, and as to one-half into New Zealand Government 3-| per cent, stock, 1955-1960, at rates to be published from time to time. 199,500 0 0 15 Feb., 1945 5 9,975 15 Feb. „ 15 Aug. .. 199,500 0 0 7,580,907 11 10 1 Mar., 1945 4J 341,141 I Mar. „ 1 Sept. .. 7,580,907 11 10 142,500 0 0 15 Mar., 1945 4 5,700 15 Mar. 15 Sept. 142,500 0 0 .. .. 9,659,980 1 I 1 April, 1945 3 289,799 1 April „ 1 Oct. 2,500 0 0 9,657,480 1 1 Carried forward .. 63,873,298 17 8 .. .. 2,387,702 .. 21,980,010 0 0 41,875,988 17 8 17,300

THE PUBLIC DEBT OF NEW ZEALAND. TABLE I.—STATEMENT OF SECURITIES CHARGED ON THE PUBLIC REVENUES OF NEW ZEALAND AND OUTSTANDING ON 31st MARCH, 1940-continued.

B.—l [PT. Ill].

PUBLIC ACCOUNTS, 1939-1940

5

Annual Charge. Domicile of Principal. Nominal j Amount Due Date. ! i I j outstanding. ° £ | jr omiEal Remarks. Interest When payable. New Zealand. London. Australia, ___ Brought forward .. 63,873,298 17 8 .. .. 2,387,702 .. 21,980~010 0*0 17 *8 17^300 New Zealand Loans Act, 1932 —continued. Debentures and Stock —continued 2.090 Q09 1 9 1 T)pp ji oi Ann j. i t j , t, „ , -,vyo,„uu i y i Dec., 4 Z 94,090t 1 June and 1 Dee. .. 2,090,909 1 9 .. * Repayable at the option of the Government on or after 1st Decern - ber, 1925, by giving three months' t notice in the London Gazette. f Interest suspended in terms of agreefC'SS I n ,iJt- iSS. 5 '•""••• >-W.v 12,886,110 3 9 .. Go.,™.. 9,840,85o 0 0 15 Feb., 1946+ 4 393,634 15 Feb. „ 15 Aug. 9,840,855 0 0 .. .. J Repayable at the option of the Government at par on or after 15th February, 1943, on three X '!fMno ° 1 fpril, 1946 3 36,862 1 April „ 1 Oct. 1,228,743 9 0 .. .. months notice. ' 0 1 pril, 1„46§ 4 17,393 1 April „ 1 Oct. 434,828 15 0 .. .. § Repayable at option of the holders Anril l<Ufi on 14 days'notice. ' • ■ ■ • •. .. .. Option to repay £8,963,205 maturing a A S pi '? 4 114,042 15 Mar. and 15 Sept. 2,851,050 0 0 .. .. loth April. 1949. 11 99?'fin« ifi K ? x ep " ,!tl !, 66 ' 525 15 Mar " '• 15 Sept. 1,127,200 0 0 120,000 0 0 83,300 11,2-1 ,608 16 5 1 Nov., 1947 4| 504,972 1 May ,, 1 Nov. .. 11,221,608 16 5 1 '' 1948 '' • - • • • ■ ■. .. Option to repay £19,225,465 matura « 30 Nov., 1948 4 179,868 31 May and 30 Nov. 4,496,690 0 0 i.0,500 0 0 1 Jan., 1949 4 420 1 Jan. „ 1 July 10,500 0 0 e ., 1949 .. .. # _ Option to repay £5,000,000 matur8,963,205 0 0 15 April, 1949j| 4 358,528 15 April and 15 Oct. 8,963,205 0 0 .. .. || option of the Government- at par on or after 15th April, 1946, on three 1K , f . in . n months' notice. 5 ay, 1949 .. .. _ .. .. .. Option to repay £776,125 3J per cent, and £11,707,980 4 per cent, securities maturing 15th May, ° 2 J 3 5 ee " 1949 5 375,000 15 June and 15 Dec. .. 7,500,000 0 0 .. o ooo'aoa a a ? 5 6 u'' 8,750 15 June „ 15 Dec. 250,000 0 0 0 0 1 Feb.. 1951 s| 111,595 1 Feb. „ 1 Aug. .. 1,250,000 0 0 779,000 Gamed forward .. 129,007,299 3 7 .. .. 5,293,686 I .. 51,183,082 4 0 76,944,616 19 7 879,600

B.—l [Pt. 11l

PUBLIC ACCOUNTS, 1939-1940

THE PUBLIC DEBT OF NEW ZEALAND. TABLE I.-STATEMENT OF SECURITIES CHARGED ON THE PUBLIC REVENUES OF NEW ZEALAND AND OUTSTANDING ON 31st MARCH, 1940—continued.

6

Annual Charge. Domicile of Principal. _ SEE? Due Date. " j ! | | Remark*. outstanding. ® £ 1 Nominal When payable. New Zealand. London. ; Australia. gg 4- j interest. ; Brought forward .. 129,007,299 3 *7 .. .. 51,183,082 4 0 76,944,616 19 7 New Zealand Loans Act, 1932 Stock —continued. 776,125 0 0* 15 May, 19521 3* 27,164 15 May and 15 Nov. 776,125 0 0 .. .. * Securities converted under New 11 707 980 0 0 15 Mav, 1952+ 4 468,319 15 May „ 15 Nov. 11,707,980 0 0 .. .. Zealand Debt Conversion Act, ' ' " 1932-33, with condition of inj terest free of income-tax continued up to the interest date coinciding with or next following the pre-conversion maturity date, after which the rate of interest is automatically adjusted to 4 per j cent., as follows: £23,225, 15th May, 1941; £752,900, loth November, 1941 : total, £776,125. f Repayable at the option of the Government at par oil or after ! 15th May, 1949, on three months' notice. 15 June 1952 . . . • . • • - • • • - Option to repay £9,498,775 maturing 15th June, 1955. 1 July 1952 .. • ■ • ■ • • • - • • Option to repay £12,000,000 maturing 1st July, 1955. 15 Jan., 1953 .... .. •• Option to repay £9,124,559 12». 4d. maturing 15th January, 1957. 5,000 000 0 0 1 Feb., 19541 3£ 175,000 1 Feb. and 1 Aug. .. 5,000,000 0 0 .. {Repayable at the option of the Government at par on or after 1st February, i949, on three months' notice. 31 May 1954 . • • • • • • • • • • • Option to repay £5,538,110 maturing 31st May, 1958. 9 498,775 0 0 15 June, 1955 § 4 379,951 15 June and 15 Dec. 9,498,775 0 0 .. .. § Repayable at the option of the ' ' Government at par on or after 15th June, 1952, on three months' notice. 12 000.000 0 0 1 July, 1955|| 3 360,000 1 Jan. „ 1 July .. 12,000,000 0 0 .. || Repayable at the option of the Government at par on or after 1st July, 1952, on three months' notice. 15 Oct. 1955 .. .. • • - • • • • • Option to repay £3,989,100 maturing 15th October, 1960. Carried forward .. 167,990,179 3 7 .. .. 6,704,120 .. 73,165,962 4 0 93,944,616 19 7 879,600

B.—l [PT. III!.

PUBLIC ACCOUNTS, 1939-1 940

THE PUBLIC DEBT OF NEW ZEALAND. TABLE I.—STATEMENT OF SECURITIES CHARGED ON THE PUBLIC REVENUES OF NEW ZEALAND AND OUTSTANDING ON 31st MARCH, 1940—continued.

7

Annual Charge. Domicile of Principal. Nominal ——; — Amount Due Date. Remarks. outstanding. interest! When payable. New Zealand. London. Australia. | £ s. d- % £ £ s. d. £ s. d. £ Brought forward .. 167,990,179 3 7 .. .. 6,704,120 .. 73,165,962 4 0 93,944,616 19 7 879,600 New Zealand Loans Act, 1932 —continued. Debentures and Stock —continued. 362,450 0 0 1 Jan., 1956 3 10,873 1 Jan. and 1 Julv 362,450 0 0 100,000 0 0 1 Jan., 1956 4 4,000 1 Jan. „ 1 July 100,000 0 0 1 Nov., 1956 .. .. .. .. .. .. Option to repay £5,000,000 maturing 1st November, 1971. 9,124,559 12 4 15 Jan., 1957* 3i 319,360 15 Jan. and 15 July 9,124,559 12 4 .. .. * Repayable at the option of the Government at par on or after 15th January, 1953, on bree months' notice. 1,417,000 0 0 15 Jan., 1957 35,425 15 Jan. „ 15 Julv 1,417,000 0 0 46,900 0 0 15 Jan., 1957 3 1,407 15 Jan. „ 15 July 34,000 0 0 12,900 0 0 670,084 14 11 15 Jan., 1957 3£ 23,453 15 Jan. „ 15 July 670,084 14 11 93,720 0 0 1 Feb., 1957 3 2,812 1 Feb. „ 1 Aug. 93,720 0 0 1,417,000 0 0 15 May, 1957 2£ 35,425 15 May ,. 15 Nov. 1,417,000 0 0 5,769,753 13 7 15 May, 1957 3 173,093 15 May „ 15 Nov. 5,769,753 13 7 1,535,086 0 0 15 May, 1957 3| 53,728 15 May „ 15 Nov. 1,535,086 0 0 1,417,000 0 0 15 Aug., 1957 2| 35,425 15 Feb. „ 15 Aug. 1,417,000 0 0 5.171,932 14 0 15 Aug., 1957 3 155,158 15 Feb. „ 15 Aug. 5,171,932 14 0 2,122,260 0 0 15 Aug., 1957 4 84.890 15 Feb. „ 15 Aug. 2,122,260 0 0 1,417,000 0 0 15 Feb., 1958 2£ 35,425 15 Feb. „ 15 Aug. 1,417,000 0 0 2,189,835 3 8 15 Feb., 1958 3| 76,644 15 Feb. „ 15 Aug. 2,189,835 3 8 19,225,465 0 0 1 Mar., 1958f 4 J- 865,146 1 Mar. ,, 1 Sept. .. 19,225,465 0 0 .. f Repayable at the option of the Government at par on or after 1st March, 1948. on three months' notice. 5,538,110 0 0 31 May, 1958J 4 221,524 31 May „ 30 Nov. 5,538,110 0 0 .. .. i Repayable at the option of the Government at par on or after 31st May, 1954, on three months' notice. ! 1,417,000 0 0 15 June, 1958 2J 35,425 15 June „ 15 Dec. 1,417,000 0 0 1,521,250 0 0 15 June, 1958 53,243 15 June „ 15 Dec. 1,521,250 0 0 1,417,000 0 0 15 Sept., 1958 2| 35,425 15 Mar. „ 15 Sept. 1,417,000 0 0 1,261,400 0 0 15 Sept., 1958 3J 44,149 15 Mar. „ 15 Sept. 1,261,400 0 0 2,842,000 0 0 15 Dec., 1958 2J 71,050 15 June „ 15 Dee. 2,842,000 0 0 4,317,372 10 5 15 Dec., 1958 3 129.521 15 June „ 15 Dec. 4,317,372 10 5 1,170,245 18 7 15Mar., 1959 3 35,107 15 Mar. „ 15 Sept. 1,170,245 18 7 1,572,260 0 0 15 Mar., 1959 3J 55,029 15 Mar. , 15 Sept. 1,572,260 0 0 630,640 0 0 15 Mar., 1959 4 25,226 15 Mar. „ 15 Sept. 630,640 0 0 2,980,679 0 0 15 July, 1959 3 89,420 15 Jan. „ 15 July 2,980,679 0 0 380,000 0 0 15 July, 1959 3f 14,250 15 Jan. „ 15 July 380,000 0 0 Carried forward .. 245,118,183 11 1 .. .. 9,425,753 .. 131,055,601 11 6 113,182,981 19 7 879,600

13.—1 [i'T. Hi],

PUBLIC ACCOUNTS, 1939-19 40.

THE PUBLIC DEBT OF NEW ZEALAND. TABLE I.—STATEMENT OF SECURITIES CHARGED ON THE PUBLIC REVENUES OF NEW ZEALAND AND OUTSTANDING ON 31st MARCH, 1940—continued.

8

a. JL \Ji} UUUUXIXXJ.JJU * — — _____ , Annual Charge. Domicile of Principal. Nominal • i i ) RpttiatI^^ Amount Due Date. i to t I j outstanding. j © § Nominal When payable. ! -STew Zealand. London. Australia. i -£■£ Interest. 1 J i Sfl i l_ l" M | j 1 : j Brought forward .. 245,118,183 11 1 .. -° 9,425,753 .. 131,055,601 11 6 113,182,981 19 7 879,600 I New Zealand Loans Act, 1932 Debenture™Mid Stock —continued. 1,703,035 14 1 15 Oct., 1959 3 51,091 15 April and 15 Oct. 1,703,035 14 1 4 245 535 0 0 15 Nov , 1959 3 127,366 15 May „ 15 Nov. 4,24o,53o 0 0 3 989' 100 0 0 15 Oct. 1960* 34 139,619 15 April „ 15 Oct. .. 3,989,100 0 0 .. * Repayable at the option of the Go- ' ' ' vemment at par on or after 15th October, 1955, on three months' notice. 10 884 628 0 0 1 Feb., 1963t 4 435,385 1 Feb. „ 1 Aug. 378,638 14 4 10,505,989 5 8 .. f Repayable at the option of the Government at par on or after 1st February , 1943, on three months' notice. 5 000 000 0 0 I Nov.. 1971} 5 250,000 1 May „ 1 Nov. .. 5,000,000 0 0 .. t Repayable at the option of the Go- ' ' vernment at par in whole or in part on or after 1st November, 1956, on three months' notice. 1 381 854 8 6 Various free .. .. 1,376,854 8 6 5,000 0 0 .. § The currency of the major portion ' of this loan is for the duration of the war and six months after. | Total Debentures and Stock 272,322,336 13 8 .. -■ 10,429,214 .. 138,759,665 8 5 132,683,071 5 3 879,600 Funding Agreement with Imperial m.M .1 SI 1 June, IMS" .. 1 Jnn. 1 Bee. .. m.mU , .. II Government 23 752 19 211 1 Dec., 1957*" •• 1,164,867ft 1 June „ 1 Dec. .. 23,522,752 19 2 .. terms of section 8, Finance Act, , .. -,i <- 1922. Details of original loan as Total Funded Debt .. 24,100,199 10 7<U .. 1,193,230 .. 24,100,199 10 7 fundedjhown in B.-l fPt. II], j 1j Details on page 11. ** Approximately. ft Payments suspended in terms of agreement with Imperial GovernTreasury notes .. .. 1,080,000 0 0 Various .. 4| 48,600 30 June and 31 Dcc. .. 1,080,000 0 0 meut - 1,080,000 0 0 .. •• 48,600 .. .. 1,080,000 0 0 Treasury bills .. .. 5,000,000 0 0 Various .. 1 50,000 Various .. .. 5,000,000 0 0 2,310,000 0 0 „ 1-i 28,875 „ .. .. 2,310,000 0 0 5,000,000 0 0 „ ..2 100,000 „ .. .. 5,000,000 0 0 1,085,000 0 0 „ .. 2£ 27,125 „ .. .. 1,085,000 0 0 12,010,000 0 0 „ ..3 360,300 „ .. .. 12,010,000 0 0 Total Treasury bills .. 25,405,000 0 0 .. -• 566300 .. 25,405,000 0 0 •• Carried forward .. 322,907,536 4 3 .. ■■ 12,237,344 .. 164,164,665 8 5 157,863,270 15 10 879,600

8.-l [Pt. JIT],

PUBLIC ACCOUNTS, 19 39-19 40.

THE PUBLIC DEBT OF NEW ZEALAND. TABLE I.—STATEMENT OF SECURITIES CHARGED ON THE PUBLIC REVENUES OF NEW ZEALAND AND OUTSTANDING ON 31st MARCH, 1940-continued.

1 ;;: - ; ' ;": ! ' I By the Repayment of the Public Debt Act, 1925, means are provided whereby the whole of the public debt other than that raised for State Advances purposes and those portions for which separate sinking funds exist will be extinguished in approximately sixty years from the time of coming under the provisions of the Act. The total of loans coming within the provisions of the Repayment of the Public Debt Act, 1925, is £249,344,651 lis. 9d. The Public Debt Redemption Fund Capital Account established under this Act comprises investments of sinking funds accumulated under former legislation and now invested with the State Advances Corporation £3,250,000 and the Public Trustee £7,986,688 lis. 2d.: total, £11,216,688 lis. 2d. The interest on the Redemption Fund capital is paid over to the Consolidated Fund as a set-off against the annual payments made by the latter fund to the Repayment of the Public Debt Account -viz., i per cent, of the public debt coming under the provisions of the Act, together with 4 per cent, of the debt redeemed in accordance with the Act. Sinking funds as indicated exist for the extinction of portions of the debt to which the provisions of the Repayment of the Public Debt Act, 1925, do not apply: The balances of these sinking funds at the 31st March, 1940, were as follows : State Coal-mines Account, £5,502 3s. Bd.; Electric Supply Account, £12,648 os. 2d.; Westport Harbour Account, £391,516 12s. 2d. ■ Samoan Loan Suspense Account, £1 lis. lid. ; Nauru and Ocean Islands, 16s. lid. : total, £409,669 4s. lOd. In addition to the special sinking funds mentioned above, special provision exists for the repayment of that portion of the debt funded by agreement with the Imperial Government, particulars of which are given on page 11. It was estimated that this portion of the debt would under the original agreement be extinguished during the financial year ending on the 31st March, 1958. Payments have been suspended by arrangement with the Imperial Government.

TABLE II.—ADVANCES BY THE RESERVE BANK TO THE GOVERNMENT BY WAY OF OVERDRAFT OUTSTANDING ON 31st MARCH, 1940.

2—B. 1. [Pt. lII].

9

i ; Annual Charge. Domicile of Principal. Nominal —— — —— Amount Due Date. >g-g j Remarks. outstanding. . Interest 1 When payable. Hew Zealand. London. Australia. ds £ s- <1- % £ £ s. d. £ s. d. £ Brought forward .. 322,907,536 4 3 .. .. 12,237,344 .. 164,164,665 8 5 157,863,270 15 10 879,600 Amortization Charges. £ 2,077,225* Repayment of the .. .. j * Estimated. Public Debt Act, 1925 458,700f Funded Debt .. .. .. | .. r Represents principal repayment also suspended by agreement with Imperial Government. 6,000J State Coal-mines .. .. .. j Payable from the State Coal-mines Sinking Fund Account. Estimated. 10,8595 Westport Harbour .. .. .. § £3,859 sinking fund, 4£ per cent. - Sinking Fund payable in respect of sinking funds 2,552, 784 used for redemption; and £7,000 „ ... II sinking fund, 1 per cent, payable Total securities charged on 322,907,536 4 3 .. .. 14,790,128 .. 164,164,665 8 5 157,863,270 15 10 879,600 on £700,000 Westport Harbour the Public Revenues and — Loans. outstanding at 31st March, 1940

I Authority for Advances. Particulars of Advances. | Account. j Amount. £ s. d. .Marketing Act, 1936, Section 10 .. .. .. .. Advances in respect of dairy-produce purchased for export and sale Dairy Industry Account .. .. 2,600,231 0 3 Marketing Amendment Act, 1937, Section 9 .. .. Advances in respect of primary products purchased for sale .. Internal Marketing Account .. .. '22 1'949 7 0 Marketing Amendment Act, 1939, Section 5 .. .. Advances in respect of meat purchased for export and sale .. Meat Industry Account .. .. 584*372 8 9 Marketing Amendment Act, 1939, Section 5 .. .. Advances in respect of fruit purchased for export and sale .. Fruit Industry Account .. .. 10 5 Marketing Amendment Act, 1939, Section o .. .. Advances in respect of sundry products purchased for export Sundry Products Account .. .. 18 3 and sale Total advances as at 31st March, 1940 .. .. .. .. .. .. .. .. .. __ £3 526 640 4 8

B.—l [PT. ITT],

PUBLIC ACCOUNTS, 1 939-1940.

TABLE III.—LOANS GUARANTEED BY THE GOVERNMENT. Contingent Liability outstanding on 31st March, 1940.

10

i AMnnrcT ' K,ATE * Accumulated Loans guaranteed. Authority for Government Guarantee. • i Due Date. Seeking Remarks. OUTSTANDING. I j, raD . LOANS OF LOCAL AUTHORITIES. £ £ j % % £ s. d. Auckland City Council (Grey Lynn Borough Local Bodies' Loans Amendment Act, 1908 .. < ?o'~nn \ 45,000 «T }q Ug "' i tf \ 1 27,420 15 6 "1 Loan) * J '° j u §*> 1 " ' 2 j i {j n <}er subsec. (6) of sec. 10 of i Christchurch City Council .. .. Local Bodies' Loans Amendment Act, 1908 .. .. 9,500 3 Deo., 1942 ! 4J 1J 8,752 5 8 | Local Bodies' Loans Amendj Cambridge Borough Council .. .. Local Bodies' Loans Amendment Act, 1908 .. .. 5,000 30 April, 1942 j 4| 1 3,061 17 8 )> ment Act, 1908, one-half of Levin Borough Council .. .. .. Local Bodies' Loans Amendment Act, 1908 .. .. 18,000 19 June, 1942 I 4| li 16,067 1 6 the sinking fund is payable by { Port Chalmers Borough Council .. .. Local Bodies' Loans Amendment Act, 1908 .. .. 3,500 1 July, 1942 J 4} 1 2,160 19 9 the Treasury. | Taihape Borough Council .. .. Local Bodies' Loans Amendment Act, 1908 .. .. 25,000 1 Aug., 1942 ] 4 j 1 14,843 10 3 j Auckland City Council (Electric-power Ex. Local Bodies' Loans Act, 1913, Part IV .. .. 500,000 16 Mar., 1942 j 6j 2| 368,613 0 8 .. tension Loan) Havelock North Town Board .. .. Local Bodies' Loans Act, 1913, Part IV .. / \ 21.075 <j J '! u ! y ' to - \ 1,650 J \ 1 July, 1948 : 5 1J 1,145 18 7 Te Puke Town Board .. .. .. Local Bodies' Loans Act, 1913, Part IV .. " .. 11,000 1 Jan., 1948 il 1 J 7,192 0 4 Wanganui Hospital Board .. .. Local Bodies' Loans Act, 1913, Part IV, and .. 1,500 1 April, 1943 j 6£ 2§ 1,043 14 7 Hospitals and Charitable Institutions Amendment Act. 1920 (No. 2) | Oamaru Harbour Board .. .. Finance Act, 1937, see. 42 .. .. .. j .. 97,231 1 April, 1952 j 4 Nil .. Repayable by half-yearly instal- ! mentSi Total Local Authorities Loans .. , 736,806 : STATE ADVANCES CORPORATION STOCK AND DEBENTURES. : Special Series .. .. .. .. State Advances Corporation Act, 1936, sec. 25 .. 7,845,750 J 1 Aug., 1960 3jj .. i „ ■■ 6,500,000 j 1 Aug., 1963 3f .. ; ........ „ .. 6,500,000 1 1 Aug., 1966 3f- .. I ......... „ .. 6,500,000 1 Aug., 1969 3| .. j ........ „ .. 6,500,000 I 1 Aug., 1972 3| .. | .......... „ .. 6,500,000 1 Aug., 1975 3§ .. „ ■ .. .. .. „ .. 430,000 1 May, 1940 3 Series "A" ........ ,, .. 478,960 1 Sept. 1955-60 3f .. Series "B" .. „ .. 2,946,440 1 June, 1944 3J .. Total State Advances Corporation Loans 44,201,150 j

B.—l [PT. lII].

PUBLIC ACCOUNTS, 1 939 -1 940.

TABLE IV.—Particulars of the Public Debt funded in Terms of Finance Act, 1922, Section 8.

11

j T , , „ . , j Amount of Funded Annual Charge. ! Amount of Debt : TotaJ Debt outstanding I fuTiripH [to „ f | , When payable. 31st March, 1940. 31st March; 1940 Interest. 4 ° ? Total - Finance Act, 1922, sec. 8:— £ £ £ £ £ £ Advances from the Imperial Government funded in terms of the above Act on the basis of an annuity of 6 per cent. Interest at the rate of £4 19s. 5-88d. per cent, per annum, — Public Revenues Amendment Act, 1914, sec. 8 (War Expenses) 2,067,41! 237,040 1,830,371 .. .. 124,045 1 June and 1 Dec. Public Amendment Act, 1915, see. 5 (War Expenses) 8,105,992 929,395 7,176,597 ,. .. 486,360 1 .June „ 1 Dec. Finance Act, 1916, sec. 35 .. .. .. .. 4,736,842 543,104 4,193,738 .. .. 284,212 1 June „ 1 Dee. War Purposes Loan Act, 1917 .. .. .. .. 4,830,000 553,785 4,276,215 .. .. 289,800 1 June „ 1 Dec. Finance Act, 1918, sec. 10 .. .. .. .. 6,600,000 756,725 5,843,275 .. 396,000 1 June „ 1 Deo. Total War Loans .. .. .. .. j 26,340,245 3,020,049 23,320.196 .. 1,580,417 Kaval Defence Act, 1909 .. .. 963,131 3S5,684 577,447 .. .. 57,787 J June and 1 Dec. Aid to Public Works and Land Settlement Act. 1910 .. 191,010 21,900 169,110 .. .. 11,460 1 June „ 1 Dee. Land for Settlements Act, 1908 .. .. .. .. 37,778 4,332 33,446 .. ! 2,266 1 June „ 1 Dec. Totals .. .. .. .. .. 27,532,164 3,431,965 24,100,199 * * 1,651,930* ___ ! . ■ —— — ■■ ~ 1 =i _j * Annual instalment of principal and interest £1,651,929 16s. 8d., but all instalments subsequent to 1st June, 1931, have been suspended. The amount of interest and repayment of debt varies with each instalment, and details will again be shown when payment of instalments is resumed.

B.—l [PT. lIIJ

PUBLIC ACCOUNTS, 1939-1940.

TABLE V.—STATEMENT of SINKING FUNDS ACCRUED to the 31st March, 1910, in respect of various Loans.

TABLE VI.—STATEMENT of the RECEIPTS and DISBURSEMENTS of the SINKING

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PUBLIC DEBT £ s. d. £ s. d. Samoan Loan Sinking Fund, — Funds held in Deposits Account, Samoan Loan Sinking Fund Account.. .. 1 11 11 Electric Supply Sinking Fund,— Funds held in Electric Supply Sinking Fund Account— North Island Scheme .. .. .. .. .. .. 2,107 19 6 South Island Scheme .. .. .. .. .. .. 10,540 0 8 12,648 0 2 Westport Harbour Loans Sinking Fund,— Funds held by the Public Trustee .. .. .. .. .. 391,516 12 2 404,166 4 3

RECEIPTS. £ s. d £ s. d. STATE COAL-MINES SINKING FUND Accumulation held on 31st March, 1939, — In State Coal-mines Sinking Fund Account .. .. .. .. .. 11,767 3 8 11,767 3 8 SAMOAN LOAN SINKING FUND Accumulation held on 31st March, 1939,— In Deposits Account, Samoan Loan Sinking Fund Account .. .. .. 1 14 11 Contribution by Samoan Treasury .. .. .. .. .. .. 5,129 17 0 5,131 11 11 ELECTRIC SUPPLY SINKING FUND Accumulation held on 31st March, 1939, — In Electric Supply Sinking Fund Account— South Island Scheme .. .. .. .. .. .. .. 10,321 2 3 Transfer from Electric Supply Account in accordance with section 12 of the State Supply of Electrical Energy Act, 1917, — North Island Scheme .. .. .. .. .. .. .. 530,169 13 9 South Island Scheme .. .. .. .. .. .. .. 54,961 0 11 Interest on Investments — North Island Scheme .. .. .. .. .. .. .. 162 15 8 South Island Scheme .. .. .. .. .. .. .. 16 17 6 595,631 10 1 WESTPORT HARBOUR LOANS SINKING FUND:— Finance Act, 1928, section 13, — Accumulated funds as at 31st March, 1939 .. .. .. .. .. 367,076 6 6 Subsection (4) (a) —Contribution for the financial year 1939-40 .. .. 7,000 0 0 Subsection 4 (d) —Contribution at the rate of 4 J per cent, per annum in respect of Sinking Funds used to 31st March, 1939, to redeem debentures .. .. .. .. .. .. .. .. 3,858 15 0 Interest on Investments .. .. .. .. .. .. .. 13,606 10 8 391,541 12 2

B.—l [Ft. lII].

PUBLIC ACCOUNTS, 1939-1940.

FUNDS during the FINANCIAL YEAR ended 31st March, 1940.

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I ' " ~ - DISBURSEMENTS. £ «. d. STATE COAL-MINES SINKING FUND Securities redeemed in terms of section 22 (2) of the Finance Act, 1928 .. .. .. 11,765 0 0 Finance Act, 1939 (No. 2), section 3 (4) — Balance transferred to Loans Redemption Account .. .. .. .. .. 238 11,767 3 8 ■reair— rei SAMOAN LOAN SINKING FUND Loans redeemed in terms of section 4 of the Finance Act, 1932 (No. 2) .. .. .. 5,130 0 0 Accumulation held in Deposits Account, Samoan Loan Sinking Fund Account, on 31st March, 1940 1 11 II 5,131 11 11 ELECTRIC SUPPLY SINKING FUND:— Securities redeemed in terms of section 23 (1) of the Finance Act, 1928 .. .. .. 570,983 9 11 Advances to Southland Electric-power Board repaid .. .. .. .. .. 12,000 0 0 Accumulation held in Electric Supply Sinking Fund Account on 31et March, 1940, — North Island Scheme .. .. .. .. .. .. .. .. 2,107 19 6 South Island Scheme .. .. .. .. .. .. .. .. 10,540 0 8 595,631 10 1 WESTPORT HARBOUR LOANS SINKING FUND:— Finance Act, 1928, section 13, — Annual fee for administering fund .. .. .. .. .. .. 25 0 0 Accumulation held by the Public Trustee on 31st March, U)40 .. .. 391,516 12 2 391,541 12 2

B.—l [PT. Ill].

.5 PUBLIC ACCOUNTS, 1 9 39-1940.

TABLE VII.—TRANSACTIONS IN CONNECTION WITH THE PUBLIC DEBT IN THE YEAR ENDED 31st MARCH, 1940.

Details or above. External debt — 1. London— Increases— New issues for capital works— £ s. d. £ s. d. £ s. d. Public Works Fund : General Purposes Account .. .. 2,480,245 0 0 Public Works Fund: Electric Supply Account .. .. 93,500 0 0 Main Highways Account .. .. .. .. .. 500,500 0 0 3,074,245 0 0 New issues for War Expenses Account .. .. ... .. 109,200 0 0 3,183,445 0 0 Decreases — Redemptions from— Loans Redemption Account .. .. .. .. .. .. 165,323 18 0 Renewals and conversions to internal floating debt .. .. ; ..1 •' .. 1,389,450 0 0 Renewals to interna! long-term debt .. .. .. .. .. 618,416 13 4 2,173,190 11 4 t. Increase .. .. .. .. .. .. £1,010,254 8 8 Internal debt — 2. Long-term debt— Increases — New issues for capital works — Public Works Fund : General Purposes Account .. .. 5,175,576 4 1 \Public Works Fund : Electric Supply Account .. .. 560,738 911 Main Highways Account .. .. .. .. .. 182,388 15 11 State Coal-mines Account .. .. .. .. .. 25,000 0 0 5,943,703 9 11 New issues : War Expenses Account .. .. .. . ■ 1,726,854 8 6 New issues for redemptions .. .. .. .. .. •• •• 35,000 0 0 New issues to cover costs, charges, and expenses of conversions .. .. .. 94,922 15 1 Issues in conversion of floating debt .. .. .. .. .. ... .4,500 jOOO 0. 0 • Issues in renewal of external debt .. .. .. .. .. •• 618,416 13 4 . — 12,918,897 6 10 Decreases — Redemptions from — Public Debt Repayment Account .. .. .. .. 328,£17 9 6 Sinking Funds— £ s. d. Electric Supply .. .. .. 570,983 911 State Coal-mines .. .. .. 11,765 0 0 Samoan Loans .. .. .. 5,130 0 0 Nauru and Ocean Islands .. .. 33,445 0 0 621,323 9 11 Loans Redemption Account .. .. .. 47,346 15 0 996,887 14 5 Long-term securities converted to floating debt (Treasury bills) .. .. .. 2,875,000 0 0 3,871,887 14 5 Increase .. .. .. .. . .. •• £9,047,009 12 5 3. Floating debt— r—t-i Increases — New issues for capital works — Public Works Fund : General Purposes Account .. .. 1,710,000 0 0 Public Works Fund : Electric Supply Account .. .. 185,000 0 0 Main Highways Account .. .. . . •. .. 1,925, 000 0 0 State Forests Account .. .. .. .. .. 400,000 0 0 4,220,000 ,0 .0. New : issues for War Expenses Account .. .. .. ... 1,250,000 0 ,0 New issues for Housing .. .. . .. ..vl 5,100,000 0 0 New issues to cover costs, charges, and expenses on renewals of external debt .. 95,550 0 0 New issues for conversion of long-term debt .. .. .. .. .. 4,264,450 0 0 14,930,000 0 0 Decreases — Redemptions from — Public Debt Repayment Account .. .. .. .. .. 1,550,000 0 0 Conversions to long-term debt .. .. .. .. .. •• 4,500,000 0 0 6,050,000 0 0 Increase .. .. .. .. .. -• •• £8,880,000 0 0 Notes (I) For details of redemptions from Public Debt, llepaymcnt Account, see parliamentary paper 8.-2. (2) Money for new issues was borrowed at the following rates : tt per cent,., £1,800,000 ; 2 per cent., £1,000,000 ; 2J per cent., £1,585,000 ; 2| per cent,., £#8,445; 3 per cent., £5,869,553 9s. lid.; 3} per cent £132,200 ; 4 per cent., £8,007,422 IBs. Id.; 4J per cent., £1,080,000 ; interest free, £1,381,854 Bs. (id.: total, £21,(114,475 13s. (id. (3) Former shareholders' of Reserve Bank and State Advances Corporation who now hold 4-per-cent. stock have the option of requiring redemption of such stock on giving fourteen days' notice. £35,000 was borrowed during the year at 3 per cent, to meet such redemptions, which totalled £33,510 15s. od., the balance £1 489 sb. od., together with £0,354 10s. od., brought forward from the previous year leaves £7,843 15s. Od. unused at the 31st. March, 1940.

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Outstanding. | Increase. 31st March, 1939 31st March, 1940 I (Nominal Amount). (Nominal Amount). External debt —- £ d. ' £ s - d. £ a. d. London.. .. .. .. .. .. .. 156,853,016 7 2 157,863,270 15 10 1,010,254 8 8 Australia .. .. .. .. .. .. 879,600 0 0 879,600 0 0 Internal debt— Long-term debt .. .. .. .. .. 129,712,655 16 0 138,759,665 8 5 9,047,009 12 5 Moating debt .. .. .. .. .. •• 16,525,000 0 0 25,405,000 0 0 8,880,000 0 0 303,970,272 3 2 322,907,536 4 3 18,937,264 1 1

B.—l [Pt. Ill]

PUBLIC ACCOUNTS, 1939-1940. TABLE VIII.—ALLOCATION OF THE PUBLIC DEBT AS AT 31st MARCH, 1940, ACCORDING TO THE EXPENDITURE APPEARING IN THE DEPARTMENTAL BALANCE SHEETS PREPARED IN TERMS OF SECTION 57 OF THE FINANCE ACT, 1932. £ Railways .. .. .. .. .. .. 72,452,539 Hydro-electric Schemes .. .. .. .. .. 14,171,199 Post and Telegraph Services .. .. .. .. 15,968,317 Public Buildings, Schools, and Sites .. .. .. 17,975,954 Roads and Highways .. .. .. .. .. 38,415,108 Harbours and Lighthouses .. .. .. .. 2,163,657 State Forests .. .. .. .. .. .. 2,838,958 Housing.. .. .. .. .. .. .. 11,558,945 Land Settlement and Improvement .. .. .. 26,968,914 Shares in Bank of New Zealand .. .. .. .. 875,000 Shares in Reserve Bank of New Zealand .. .. .. 1,628,669 Investment in State Advances Corporation .. .. .. 38,048,983 Share in Nauru and Ocean Island Phosphates .. .. 284,405 Development of Mining .. .. .. .. .. 1,080,438 Tourist Resorts .. .. .. .. .. .. 746,202 Immigration .. .. .. .. .. 3,317,292 War and Defence (including £3,086,054 in respect of present war) 65,917,296 Miscellaneous Assets and Services .. .. .. .. 7,572,294 £ Cash and Investments in hand .. .. 1,288,991 Less exchange .. .. .. 365,625 923,366 £322,907,536 B. C. Ashwin, Secretary to the Treasury. A. R. F. Mackay, M.Com. (N.Z.), Ph.D. (Lond.) Accountant to the Treasury. The Treasury, Wellington, 25th June, 1940. Examined and found correct. Cybil G. Collins, Controller and Auditor-General. Audit Office, 26th June, 1940.

By Authority: E, V. Paul, Government Printer, Wellington. —1940, Price 6d.'\

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