19

8.—9

Local Authorities' Superannuation Funds. 21.* By regulations prescribed by Order in Council dated the 10th March, 1923, in pursuance of the Local Authorities Superannuation Act, 1908, it is provided that the treasurer of every fund established under that Act shall from time to time, at intervals of not less than one month, pay over to the Public Trustee all moneys deducted from the salaries of contributors to the fund and for the time being in his hands. The regulations also provide that all moneys so paid over shall form part of the Common Fund of the Public Trust Office, and that on the requisition of the local authority concerned the Public Trustee shall from time to time pay to that local authority such moneys as may be required to meet claims on the fund. As a medium for the investment of money the Common Fund is eminently suited to the requirements of local authorities' superannuation funds. Contributions to the funds are comparatively small, and they are made at frequent intervals. Then, again, withdrawals for payment of allowances take place frequently, and the retirement of a contributor at short notice may involve a call on the fund for a substantial payment. In view of these circumstances the benefit derived from investment in the Common Fund is obvious from a consideration of the following advantages : — (1.) Both capital and interest are guaranteed by the State. There is thus no possibility of loss through depreciation of securities. (2.) Interest begins to run immediately an amount is received by the Public Trustee, no matter how small the amount may be. Thus no loss of interest is incurred as a result of the accumulation of funds to invest in a suitable security. (3.) Interest earned on moneys at credit is capitalized yearly on the Ist April and thus itself earns interest from that date. (4.) Interest is earned on the total amount at credit —no small " broken " amounts lie uninvested. (5.) The fund is always " liquid," so that when a call is made on it the cash is available immediately. There is no possibility of having to realize investments at short notice on unfavourable terms. (6.) Payments may be made anywhere in New Zealand free of charge. On the 31st March, 1926, the Public Trustee held £150,904 on behalf of four funds established- under the provisions of this Act. Miscellaneous Accounts and Funds. 22. The sum of £162,216 was held in the Common Fund on the 31st March, 1926, on behalf of the following miscellaneous accounts and funds : — New Zealand Sheepowners' Acknowledgment of Debt £ to British Seamen Fund . . . . . . 60,404 Sundry deposit accounts .. . . . . . . 4,024 Proceeds of mortgages discharged under section 75 of the Property Law Act, 1908, and under section 117 of the Land Transfer Act, 1915 .. . . 862 Unclaimed moneys (held pending expiry of statutory period before being paid to the Consolidated Fund) 55,700 Government Fire Insurance Fund .. .. .. 41,226 £162,216 Insurance Companies' Deposits. 23. In pursuance of the Insurance Companies Deposits Act, 1921-22, deposits amounting to £1,051,827 (including accrued interest) were held on the 31st March, 1926, on behalf of various insurance companies transacting business in the Dominion. That total included £50,000 deposited by one company which commenced operations in New Zealand during the year, and £32,500 deposited by two companies which extended their operations during the year to classes of business for which additional deposits were required.