8.—9

In considering these figures it must not be thought that the growth of the Office has been assisted by anything in the nature of a monopoly in the classes of work which it undertakes. Trustee and administration work and numbers of the other duties performed by the Department are undertaken by well-established concerns and professional and private individuals throughout the country, thus providing a large amount of useful and stimulating competition. It is frequently urged that the success of the Department is due to its favoured position, arising from its legislation and special powers. This is erroneous, and the true explanation of its growth is that it is the natural consequence of the conditions of modern life which render desirable corporate trusteeship in some form or other, combined with the safety which it offers. As was said a few years ago by a member of a well-known trust concern, "It was becoming increasingly recognized year by year that the day was rapidly passing when persons were to be found willing to accept the position of private trustee." Government Superannuation Funds. 19. The Public Trustee is entrusted with the care of the investments of the National Provident Fund, and of the three large Government Superannuation Funds —namely, the Public Service Superannuation Fund, the Teachers' Superannuation Fund, and the Government Railways Superannuation Fund. In the case of the Public Service Superannuation Fund the actual granting of loans is attended to by the Public Service Superannuation Board, but it has been possible for the Public Trustee to render assistance in this respect by making available suitable investments at times when the funds held by that Board for investment have been in excess of the applications on hand —a facility that has been of material benefit to the fund. In the case of the other three funds the investments are selected by the Public Trustee from those held on behalf of the Common Fund. The allocation of the investments is made as from the first day of the month following the receipt of the moneys, including interest collected under existing investments, so that there is no loss to the funds by delay in obtaining suitable investments. Apart from the finding of suitable investments for new moneys and arranging renewals of maturing mortgages, the organization of the Public Trust Office is made available for their management and administration. The whole service rendered in connection with these funds is maintained for the low charge of 2\ per cent, on the interest collected. The investments of the funds are distributed throughout the Dominion, and with its wide representation the Office has every facility for conducting the large volume of work arising out of their administration. Local Bodies' Superannuation Funds. 20. On the 31st March last the sum of £195,472 was held on behalf of four superannuation funds set up in pursuance of the provisions of the Local Authorities Superannuation Act. These moneys form part of the Common Fund, and bear interest accordingly. As the moneys are made up of comparatively small contributions received at monthly intervals, and as calls on the funds may be made at short notice, it would in the ordinary course be a difficult matter for the local bodies to arrange close investment at a satisfactory rate of interest. In the Common Fund of the Public Trust Office, however, the smallest instalment begins to earn interest immediately it is received and continues to do so until it is withdrawn. Further, there is no cause for anxiety regarding the security for investments, as they enjoy the State guarantee in respect of both principal and interest. Miscellaneous Accounts and Funds. 21. As at the 31st March, 1928, the sum of £99,955 was held on behalf of the following accounts and funds :— New Zealand Sheepowners' Acknowledgment of Debt £ to British Seamen Fund . . . . . . 46,066 Electric-power Schemes Deposits Act . . . . 500 Government Fire Insurance Fund .. .. .. 53,070 Government Stores Marine Insurance Fund .. .. 3)9 £99,955

18