8.-6

XXXVI

The Government has no intention of moving towards a reversion to political control of the Public Service, but on the contrary proposes to ask Parliament to strengthen the existing law. FINANCE. War Loans. At the end of the financial year the loans arranged by the Treasury on account of war expenditure amounted to £80,089,02-5, of which £53,748,780 was raised in New Zealand, and £25,840,000 was advanced by the Mother-country mainly for the maintenance of our troops in the field. I submit hereunder a statement showing the amounts borrowed under the various authorizing Acts: —

Statement of War Loans authorized, and the Total Amounts raised in New Zealand and London respectively, with Charges and Expenses thereon, as at 31st March, 1920.

The annual charge for interest and sinking fund on these loans amounts to £4,489,770, made up as follows : — Annual Interest and, Sinking Fund chargeable against the Consolidated, Fund on Moneys borrowed for War Purposes as at 31st March, 1920. Annual interest charges— £ £ On 2,810 at 3 per cent. .... .... 85 On 1,168,421 at 3£ per cent. .... .... 40,895 On 4,744,750 at 4 per cent. .... .... 189,790 On 50,108,383 at 4£ per cent. .... .... 2,254,877 On 24,004,661 at 5 per cent. .... .... 1,203,233 £80,089,025 £3,688,880 Sinking fund— 1 per cent, on £80,089,025 .... .... .... 800,890 £4,489,770 The capital liability and interest charges incurred in connection with the amounts advanced by the Imperial Government are set out in the following statement: —

Authorizing Acts. Public Revenues Amendment Act, 1914 .. Public Revenues Amendment Act, 1915 . . Finance Act, 1916 War Purposes Loan Act, 1917 Finance Act, 1918 Finance Act, 1918 (No. 2) Amount Raised in Now authorized. Zealand. £ £ 2,000,000 10,000,000 2,093,750 10,000,000 11,572,450 28.000,000 23,273.535 20.000,000 13,420,520 10,000,000 3,388,525 Advanced by Imperial Government. " £ 2,0(57,411 8.105.992 4,736,842 4,830,000 I 6,600,000 Total Amount raised.* £ 2,067,411 10,199,742 16,309,292 28,103,535 20.020,520 3.388,525 Totals 86,000,000 53,748,780 26,3-10,2451 80,089,025 * Including charges and expenses, f Actual amount advanced .. The capital liability thereon £ .. 25,840,000 500,245 £26,340,245