8.—6

XIII

CHAEGES FOE INSCEIPTION OF STOCK. The charges made by the Bank of England for the management and inscription of our stock in London amount to close on £20,000 per annum. Prior to the Ist May, 1908, a sliding scale of charges had been agreed upon with the bank under which the charges diminished as the quantity of the inscribed stock increased. On the date mentioned, however, a new arrangement was entered into, and a fixed rate per million of stock was agreed upon. The change brought about savings in the charges which were temporary only, and by 1914, assuming that the two loans coming due in that year are replaced by stock, the annual saving will be converted into an annual loss, which will progress at a yearly increasing amount as our national debt increases. I approached the Bank of England when in London with a view of obtaining a reconsideration of the charges, but so far no definite conclusion has been arrived at. PROCEEDS OF LAND SALES. It will be remembered that section 5 of the Land Laws Amendment Act, 1912, provided, amongst other things, that from the Ist April, 1913, all proceeds of sales of land should be credited to the Land for Settlements Account, instead of to the Consolidated Fund. These moneys will for the future, therefore, be devoted to the purchase and settlement of other lands. POST OFFICE SAVINGS-BANK. With a view of bringing the rates of interest payable to depositors in the Post Office Savings-bank more into line with the current market rates, it was decided to increase the amount of interest to depositors from 3j to 3| per cent, from the Ist May, 1913, in respect of sums not exceeding £300. In consequence of this increased rate payable to depositors by the Post Office it became necessary for the Treasury to increase the rate payable in respect of debentures issued to the Post Office for the investment of its funds. The rate payable by the Treasury was accordingly raised from 3f per cent, to 4 per cent, from the 14th May, 1913. The following table will show the relative sums borrowed by the Treasury from the Post Office for each of the years ending the 31st March, 1912 and 1913 : — Comparison of Post Offjcb Investments in New Zealand Government Securities during the Years ended 31st March, 1912, and 31st March, 1913, respectively, showing Purposes to which Money was applied.

Fund or Account. 1912. 1913. Consolidated Fund (Treasury bills) State Coal-mines Account Scenery Preservation Account Public Works Fund i.id to Water-power Works Account .. Irrigation and Water-supply Account.. Railways Improvements Account . . . Loans to Local Bodies Account Land for Settlements Account Native Land Settlement Account Sew Zealand State-guaranteed Advances' — Advances to Workers ,, Local Authorities .. Guaranteed Mining Advances • • f £ 500,000* 20,000 5,000 76,750 10,000 50,000 525,850 254,500 425,000 222,000 5,000 £ 175,000* 25,000 15,000 49,000 50,000 10,000 15,000 125.300 80,000 261,000 2,094,100 2,094,100 805,300 * These amounts were repaid during the respective financial years.