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purpose in any one year, bringing up the total amount transferred from revenue in aid of public works since 1891 to £6,430,000, an amount which it would have been necessary to borrow had we not had such a buoyant revenue. In other words, had we not. been able to transfer this large sum from revenue we would have had to borrow £6,430,000 more than we have done, or to have reduced our public-works expenditure by that amount. The value of this course will be recognised when I say that interest at per cent, for one year on that sum would amount to £225,050, so that it may be justly said we are now saving at that rate per annum. RESULTS OF THE YEAR. The results of the transactions for the year may be summarised thus :— £ Balance brought forward, Ist April, 1907 ... ... ... ... 717,825 Receipts during year— Revenue ... ... *... £9,055,946 Other receipts ... ... ... 8,043 £9,063,989 Expenditure during year-— Appropriations ... ... ... 8,213,965 Excess of receipts over expenditure ... ... ... 850,024 1,567,849 Transfer Works Fund ... ... ... ... 800,000 Balance, 31st March, 1908 ... ... ... ... ... £767,849 It may be interesting to members at this stage to place before them the figures of the revenue and expenditure for the past five years for the purpose of comparison:— Excess of Year. Revenue. Expenditure. Revenue over Expenditure. £ £ £ 1907-8 9,055,946 8,213,965 841,981 1906-7 8,399,075 7,774,926 624,149 1905-6 7,584.359 7,122,340 462,019 1904-5 7,282,870 6,635,902 646,968 1903-4 7,021,386 6,434,281 587,105 The increase for five years in revenue is £2,034,560; the increase in expenditure, £1,779,684. TREASURY BILLS. It is very gratifying to me to be able to inform honourable members that I was able to see my way to further reduce the Treasury bills, which stood for so many years at £700,000, by the sum of £150,000. this, with the £150,000 paid off last year, making £300,000 in all, and leaving £400,000 outstanding on the 31st March last. PUBLIC WORKS EOND. This account had a balance of £359,400 to start the year with. £864,600 came to credit from loan-moneys ; £13,514 from premiums on sale of debentures ; £800,000 from Consolidated Fund; and from other receipts £1,640; making the total available for ways and means, £2,039,154. The expenditure out of these moneys amounted to £1,886,591, leaving a balance of £152,563 to the credit of the account. I would point out that the charges and expenses of raising loanmoneys amounted to £5,027, and that the premiums received not only paid the whole of the charges and expenses, but gave us a credit balance beyond that of £8,487. CONVERSION ACCOUNT. The dealings in the Conversion Account, though not so large as in the previous year, were still very important. For the conversion of debentures £340,676 of 3i-per-cent. stock was issued, and £332,700 debentures were converted. As all

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