8.—6

III

Included in the investments are debentures issued for State Advances purposes amounting to £2,326,150. This satisfactory result justifies the opinion expressed in last year's Financial Statement that the Dominion had reached the end of the period of unrest and uncertainty, and that natural causes, if supported by economical and careful administration, would ensure a speedy recovery. The trade returns disclose steady progress and prosperous conditions, and indicate that everything this country produces can be sold or exchanged. For the financial year ended 31st March, .1924, the value of the exports exceeded the value of the imports by £7,250,000, there being an increase both in volume and value. After making due allowance for the interest payable in the United Kingdom on Government and local bodies' loans there remained a balance in favour of the Dominion. It will, of course, be understood that any debit balance must ultimately be transferred to the permanent or semi-permanent debt; therefore, having regard to borrowing in the United Kingdom by the Government and local bodies, it is incumbent on me to point out that a credit balance can only be sustained by increased production. Borrowing abroad must therefore be kept within relative limits, and care taken that imported capital is strictly applied to productive purposes. Accumulated Surpluses. The balance of accumulated surpluses brought forward on the Ist £ April, 1923, amounted to .. .. .. .. 5,637,090 Less transferred, 1923-24 .. .. .. .. .. 2,517,341 3,119,749 Add surplus of revenue over expenditure, 1923-24 .. 1,812,365 Add recoupment from Native Land Settlement Account of amount previously transferred to Loans Redemption Account .. .. .. 22,600 Balance forward on Ist April, 1924 .. .. £4,954,714 Balance made up of — Investments — £ State Advances securities .. .. 2,326,150 Bank of New Zealand shares .. .. 375,000 Sundry securities .. .. .. 373,187 Cash, including imprests .. .. 1,880,377 £4,954,714 Statement showing how Accumulated Surpluses have been applied. To Total accumulated surplus, £ By Transfers to — £ 1920-24 .. .. .. 26,799,257 Discharged Soldiers Settlement Account .. .. 13,500,000 Discharged Soldiers Depreciation Fund Account .. '00,000 Public Works Fund .. 1,500,000 Reserve Fund securities .. 2,000,000 Loans redemption .. .. 4,264,712 Education Loans Account .. 100,000 Balance revenue and expenditure, 1921-22 .. .. 279,831 State Advances securities .. 2,326,150 Bank of New Zealand shares .. 375,000 Sundry securities .. .. 373,, 187 Cash balance, 31st March, 1924 1,880,377 £26,799,257 £26,799,257