8.—6

10

NEW ZEALAND CONSOLS ACCOUNT. The acceptance of deposits from the public for investment in Government securities was authorized in 1894 by the New Zealand Consols Acts (consolidated in 1908), and such deposits were inscribed in the Treasury registers in the form of New Zealand Consols. As investments in inscribed stock have taken the place of New Zealand Consols, there have been no transactions in consols for many years, and the outstanding balance (£475,992) has remained the same since 1914. The Consols matured on the Ist February, 1925, and in terms of the Acfc were paid off out of the Consolidated Fund. Except for some small amounts unclaimed, which have since been paid off, the amount was included in the sums applied in 1924-25 out of ordinary revenue surpluses for reduction of debt. Under these circumstances there was no reason to retain the system, and the Act was repealed last session by section 11, Finance Act, 1925. Authority was also taken to transfer the cash (£7) and investments (£475,985) to the Ordinary Revenue Account, which, as previously indicated, had met the liability to the investors. WAR EXPENSES ACCOUNT. This account was closed by the Finance Act of last year. Since then finality has been reached in the settlement of outstanding transactions between the New Zealand Expeditionary Force and Australian Forces in Egypt, whereby the Commonwealth Government has agreed to pay the sum of £45,000 to the Dominion Government in full and final settlement. This amount, when received, will be applied towards reduction of war loans. DEATH-DUTY-STOCK REDEMPTIONS. Death-duty stock issued under the authority of the War Loans and Discharged Soldiers Settlement Acts amounted to £1,848,200 on the Ist April, 1925, and was increased to £2,019,350 at the 31st March last by the issue of further similar stock under the authority of the Finance Act, 1920, section 15 (Electric-power Works), and the State Advances Act, 1913. Up to the 31st March, 1926, death-duty stock amounting to £635,890 had been presented in payment of duty. Further reductions in this form of security to the amount of £237,640 have also been effected by conversion into ordinary inscribed stock at the request of the holder and in cases where the whole of the death-duty stock has not been required in satisfaction of the duty payable. FREE-OF-INCOME-TAX SECURITIES. The conversion scheme inaugurated in September, 1922, by which the public were afforded an opportunity of converting free-of-tax securities into inscribed stock (not free of tax) has been availed of to the extent of £3,128,450. This sum, together with renewals and redemptions, has accounted for a reduction of £13,426,071, the total outstanding at the 31st March, 1926, being £38,307,334. LOANS FALLING DUE. Loans falling due in the next seven years ending with the year 1933, excluding Imperial debt repayments and Treasury bills, are :—

New Zealand Consols Account.

War Expenses Account.

Death-duty-stock redemptions.

Free-of-income-tax J securities.

Loans falling due.

I Year ending 31st March, London. Australia. New Zealand. Total. I £ £ £ £ 1927 .. .. .. 1,000 587,100 2,146,200 2,734,300 1928 .. .. .. .. 81,100 8,253,366 8,334,466 1929 .. .. .. 13,000 .. 14,452,265 14,465,265 1930 .. .. .. 29,569,840 .. 12,186,558 41,756.398 1931 .. .. .. .. 59,400 21,051,971 21,111,371 1932 .. .. .. 200 334,900 1,190,590 1,525,690 1933 .. .. .. .. 410,850 4,248,893 4,659,743 Totals.. .. £29,584,040 £1,473,350 £63,529,843 £94,587,233