Loan eonversion.

New borrowing.

8.—6.

Redemptions of long term debt during the financial year amounted to £7,761,435, the funds for the purpose being derived from the following sources :— For debt repayment— £ £ Repayment of Public Debt Act, 1925 .. .. 922,310 Reparations and war credits .. .. .. 132,725 Separate Accounts . . . . . . . . 957,805 — 2,012,840 From issues in redemption . . . . .. .. 5,748,595 £7,761,435 Of the redemptions effected, £4,000,000 was London debt, £23,170 was held in Australia, and the balance in New Zealand. Thanks to the generosity of Great Britain in extending the moratorium on our funded war debt and certain other debts due to the British Government, no payments were made in respect of this portion of the debt during last financial year. The major debt operation during the year was, of course, the conversion to which I have already referred, although it was not operative until the commencement of this financial year. Due to this fact, the debt table as at 31st March, 1933 (8.-l [Pt. Ill]), presented with this statement does not reflect the result of the conversion operations. In order to show the present position an up-to-date statement giving the new maturity dates, and domicile of the debt, in summary form, has been included in Table No. 17 attached. The debt operations for last financial year may be summarized as follows :— £ Debt as at 31st March, 1932 .. .. .. 281,942,800 Plus net increase in floating debt as previously mentioned . . .. .. . . 935,337 282,878,137 Less net reduction in long term debt .. 255,179 Public debt as at 31st March, 1933 .. £282,022,958 Classification of Debt. £ Ordinary .. .. .. .. .. 173,146,340 War .. .. .. .. .. 66,743,041 Discharged soldiers settlement . . . . . . 6,870,476 State advances .. .. .. .. 35,863,101 £282,622,958 To provide the funds for carrying on a limited programme of public work's and land development during the current year, the Government is offering stock and debentures bearing interest at 3f per cent., to mature on the 15th November, 1941. A copy of the prospectus in respect of the issue may be obtained from the Treasury, any trading bank, Stock Exchange, or moneyorder office in New Zealand. In addition, the sale of Post Office investment certificates has recently been resumed. The new form of issue will, I think, be even more popular than the certificates previously on sale, as some new features have been introduced. In fact, the new issue is on the lines of the British national savings certificates in that, although a definite currency of six years is provided for, the certificates will have a graduated redemption value after a period of six months from the date of issue. In addition, if not presented for payment, the certificates will remain interest bearing for a period of four years after the fixed maturity date. The redemption value for the fixed period of six years has been calculated on the basis of approximately 3|- per cent., interest compounded.

2—B. 6.

9