8.—6

V

The British Government recently offered an inducement to holders to convert this 5-per-cent. stock into 4|-per-cent., maturing in 1943, but after considering the advantages of retaining the present holding, which earns about £5 ss. per cent, until maturity in 1929, it was decided not to apply for conversion. New Zealand Inscribed Stock in London and Loan Charges. I referred last year to a reduction in the Bank of England charges for the management of New Zealand inscribed stock in London dating as from 1913, and that a refund of £30,676 Avould be made, but subject to Imperial taxation paid by the bank amounting to £14,383. Representations were made as to a remission of this taxation, and I have since been advised that altogether £23,293 has been refunded. As regards loan expenses, further minor reductions in charges should result in a saving of £3,750 on the last loan. Purchase of New Zealand Stock. A purchase was recently effected, at a profitable discount, of our 4-per-cent. stock maturing in 1929. An amount of £250,000 was secured for cancellation in terms of section 24 of the Finance Act, 1921-22. The transaction will represent a saving over the period of five years of about £60,000 in premium and interest. 1924 Loan. Although I was able to finance the last year and provide additional large sums for the Advances Office without outside borrowing, I decided in May to place a loan of £5,000,000 in London, £3,000,000 of which was for public works, £1,000,000 for advances to settlers, and £1,000,000 for advances to workers. The issue was 4J per cent, at £95, and I am pleased to state that the loan was subscribed fourfold, and, moreover, immediately went to a small premium. The interest-yield of the loan to investors is £4 14s. 9d. per cent, per annum. To assist in meeting the heavy demands that have been made, I have arranged to obtain some additional capital on the same terms for State-advances purposes. The following table of comparison with recent issues of other Dominions indicates the high credit of New Zealand in London : —■

PUBLIC WORKS FUND. The expenditure on public works was practically the same as that for the year 1922-23, and amounted to £3,749,160 —the bulk being for railway-construction, additions to open lines, roads, &c, and telegraph-extension. My colleague the Honourable the Minister of Public Works will at a later date submit important proposals making for continued progress with developmental works, and you will be asked to provide by legislation for next year's expenditure. I propose to meet the requirements of the current year with £3,000,000 of the loan recently raised in London, and to supplement this amount by again transferring the sum of £1,000,000 from surplus revenue.

Date. Borrower. Amount of Loan. Rate per Cent. Date Maturing. Issued at Interest Return per Cent. 1924. February 26 March 11 ». 25 April 4 May 8 ,, 19 South Africa New South Wales .. South Australia Queensland New Zealand Commonwealth of Australia New South Wales .. £ 4,000,000 16,419,000 1,650,300 12,700,000* 5,000,000 10,000,000 5 5 5 H 5 1933-43 1935-55 1932-42 1926-29 1944 1935-45 99 97f 98 99J 95 100 £ s. d. 5 1 0 5 2 7 5 2 0 5 10 7 4 14 9 5 0 0 „ 29 10,000,000 5 1935-45 95 5 5 3 * Approximat ;e.