8.—6

IV

LAND FOR SETTLEMENTS ACCOUNT. During the past year debentures amounting to £530,040 were issued for the purchase of estates, premiums received on sale of debentures realised £5,445. £16,000 was received for interest on moneys invested, while rents and other money from the estates came into the account to the extent of £206,103. On the oiher side, the acquisition of the estates cost £188,278, interest on debentures L' 188,012, first, payment for sinking fund established for repayment of debentures 660,166, and other expenses £3,160. The balance of the account at the close of the year was £729,320. THE PUBLIC DEBT, The gross public debt on the 31st March last was £64.179,040, as against £62,191,040 at the close of the previous year, or an increase of £1,988,000 for the year. Of the million loan authorised last session for public works. £943,600 wits received during the year; the balance, £56.400, already placed, will come to credit during this year. For the purchase of lands for close settlement, debentures to the amount of £530,040 were issued under "The Land for Settlements Consolidation Act, 1900.': and £65,975 under "The Maori Lands Settlement Act, 1905," for acquisition of lands from Maori owners. To enable grants to be made to local authorities 6180,000 had to be borrowed, and £'150,000 was obtained to meet the requirements of the Advances to Settlers Office, and £20,000 to carry out the provisions of the Advances bo Workers Act. A further sum of £10,000 for scenery-preservation was provided, and £60,000, representing debentures for accretion to sinking funds, were disposed of. The conversion operations are responsible for an increase of £21,001. Notwithstanding the disturbed state of the money-market, no difficulty has been found in obtaining all the money required, whether for renewal or new loans, on the most satisfactory terms, a premium of 2 per cent,, being obtained for many sales, and as high as 1 per cent, was received for renewals in several cases. £2,168,766 fell due during the year. Of this large sum £1,648,466 were renewed. 6255,300 converted at par, £261,800 paid off, and £3,200 remained outstanding, the debentures not having been presented. Of the increase of the debt the following items may be stated to be of a direotly interest-producing character :— £ For purchase of land for settlements .... .... 596,015 For railway construction and additions to open lines 525,000 For loans to local bodies .... .... .... 180,000 For advances to settlers ... .... .... 150,000 For advances to workers .... .... .... 20,000 For New Zealand Consols deposit .... .... 1,384 Total .... .... ...£1,472,399 LOANS TO LOCAL BODIES ACCOUNT. Dp to the 31st March last the total amount of debentures created and issued and carried into this account was £2,743,100, and the total disbursements have l )een —to local bodies, £2,194,138; to Lands and Survey Department, towards opening up blocks of hind for settlement, £473,733; and to Public Works Fund, £89,800, in exchange for debentures under " The Roads and Bridges Construction Act, 1882." The balance at credit of the Loans to Local Bodies Account on the 31st March, 1906, was £784. Debentures for £180,000 were created and issued during the past year, and refunds of unexpended balances of grants amounting to £613 were received. Payments on account of loans were made during the year to local bodies £133,629, and towards opening np blocks of land for settlement 647,871, leaving at the end of last year a balance of £397 to the credit of the account.