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The full amount of £400,000 available by way of advances from the Consolidated Fund, under the statutory provision contained in section 16 of the Act, has now been received and invested. One-third of this amount lias, however, been credited to the Rural Intermediate Credit Redemption Fund in accordance with the provision contained in section 17 of the Act, so that only £266,666 13s. 4d. is available for the Board's lending operations. The growth of the investments during the year, and the figures published in the first appendix to this report, indicate that a steady increase in the volume of the Board's business may confidently be looked for. It is quite clear from the experience of the Board so far that its business will be somewhat costly to operate. This is unavoidable on account of the number of small loans granted and the special precautions which are necessary in lending upon security of stock and chattels. Accordingly, the Board could not have shown a profit on the year's workings but for the fact that it received the benefit of the profit interest derived from the moneys advanced by the Legislature, which, in terms of the Act, are free of interest for a period of ten years. This position was obviously anticipated when the legislation was enacted by Parliament. The total investments and accrued interest thereon at the 30th June, 1930, amount to £505,943 12s. Bd. This amount, however, includes the investments of the Rural Intermediate Credit Redemption Fund, which total £139,921 9s. Bd. This fund, which amounted to only £67,329 18s. 7d. at the 30th June, 1929, has been augmented by one-third of all advances received during the year from the Consolidated Fund, under section 16. In addition, one-half share of the profits to the 30th June, 1929, £280 10s. 4d., has been added and invested, while interest on the investments amounting to £4,694 2s. 3d. has accrued and been added to the fund. The fund has been credited with a further £2,089 19s. 7d. representing one-half share of the profits for the year to 30th June, 1930, but these profits had not, of course, been invested at 30th June, 1930. Investments of the Redemption Fund are, by statute, earmarked for the redemption of debentures issued by the Board, and cannot be used for any other purpose. The investments in the course of the Board's ordinary business amount to £322,507 10s. 5d., classified as follows : — £ s. d. Advances to associations under Part II .. 156,833 11 2 Advances to farmers under Part 111 . . 154,209 19 4 Bills discounted .. .. .. .. 11,463 19 11 £322,507 10 5 The temporary investments held to provide funds for settlement of loans nearing completion amount to £38,300. 54. Issue of Debentures.—With the balance of the loan from the Consolidated Fund which was received during the year and the additional funds provided through repayments, partial or complete, of the existing loans, sufficient finance was available to enable the requirements of applicants to be provided for throughout the year ended 30th June, 1930, including the earlier portion of the winter months of the present year, during which months of the year the demand upon the part of farmers for financial assistance is most marked. In view of the increased volume of applications received later and the indications which existed of the further expansion of the Board's business, it was found necessary to make arrangements for a public issue of debentures, and this was made at the close of the Board's financial year. These debentures were offered to investors, through the Public Trustee acting as fiscal agent for the Board and his organization throughout the Dominion, on the following terms : — - p . , Rate of Interest. Denomination of eno(:t - Per Cent. Debentures. Twelve months . . .. 4-1 £l 00, £250, £500. Five years . . . . 5h . • £100, £250, £500, £1,000.

3 —B- 14.

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