11

8.—6,

RESERVE FUND, LONDON. The Reserve Fund in London of £2,000,000 is invested in gilt-edged securities; the interest earned by the fund during the past year amounting to £90,550. PUBLIC DEBT. The gross public debt at the 31st March, 1926, was £238,855,478, as compared with £227,814,647 twelve months previously. The debt is allocated as follows : — £ Ordinary .. .. .. .. .. 125,992,741 War .. .. .. .. .. 75,333,648 State advances .. .. .. .. 27,771,153 Discharged soldiers settlement .. .. .. 9,757,936 £238,855,478 The increases are — £ Ordinary debt .. .. .. .. .. 6,055,882 State advances .. .. .. .. .. 6,334,973 £12,390,855 Decreases — £ Discharged soldiers .. .. .. .. 51,950 War debt .. .. .. .. 1,298,074 £1,350,024 leaving the net increase in the gross debt at £11,040,831. Of the increased debt of £11,040,831, State advances (settlers, workers, and local authorities) absorbed £6,334,973, or 57 per cent. The total borrowed for ordinary debt purposes was £6,859,566, but by redemptions out of Ordinary Revenue Account (£445,513), from other accounts (£356,071), and by the removal from the debt of debentures totalling £2,100, the increase in ordinary debt for the year was reduced to £6,055,882. The movement in the gross debt during the year is shown by the following :— New loans raised during the year for— £ Public works .. .. .. .. .. 3,939,870 Waihou and Ohinemuri Rivers improvement .. .. 69,000 Electric supply .. .. .. .. .. 830,000 Deteriorated lands .. .. .. .. 2,000 Education loans .. .. .. .. .. 478,650 Hauraki Plains settlement .. .. .. .. 70,000 Main highways .. .. .. .. .. 500,000 Railways improvement ' .. .. .. .. 500,000 Samoan loan .. .. .. .. .. 15,000 Swamp drainage .. .. .. .. .. 35,000 State advances .. .. .. .. .. 6,346,955 Charges and expenses:— Public works . . .. .. .. .. 294,032 Electric supply .. .. . . . . . • 42,005 Main highways .. .. .. .. , .. 42,004 Railways improvement .. .. .. .. 42,005 State advances .. .. .. .. . . 168,018 £13,374,539

Reserve Fund.

Public debt.

New loans during the year.