B.—l [Pt. ll].

The moneys borrowed for the State Advances Account came within this latter class, and provision was made for redemption by means of a sinking fund to be built up from the profits of the State Advances Department. The moneys of the sinking fund were invested in mortgages, and these investments, together with the other mortgages of the State Advances Account, were transferred to the Mortgage (now State Advances) Corporation under the provisions of section 36 of the State Advances Corporation Act, 1934-35. The consideration given by the Corporation to the Minister of Finance for the State Advances securities consisted of stock and a contingent liability, and in the Public Accounts up to 31st March, 1937, the sinking fund was shown as being represented by contingent liability of the Corporation. The accounts for the year just closed show an entry abolishing the sinking fund, 8.-l [Pt. Ill], p. 13, and the position on 31st March, 1938, is that the debt outstanding for State Advances and Rural Advajices—viz., £34,214,743 9s. 2d. —is the only portion of the public debt for which no special provision is made for repayment. Summary of Public Debt Transactions. The transactions for the year of the Public Debt Accounts are detailed as follows:— £ g< d> Total debt as at 31st March, 1937 (8.-l [Pt. Ill], page 10) .. .. 290,370,199 1110 Reductions during the Year — From Ordinary Eevenue Account — Public Works Fund — £ s. d. General Purposes Account .. .. 5 0 0 State Advances Account . . .. 200 0 0 From Electric Supply Sinking Fund Account .. .. .. .. 1,750 0 0 From State Coal-mines Sinking Fund Account .. .. .. .. 9,180 0 0 From Discharged Soldiers Settlement Account — Deed of hypothecation redeemed from proceeds of the sale of stock of the State Advances Corporation .. 2,700,000 0 0 From Loans Redemption Account — War credits applied in redemption . . 2,255 0 0 Reparation moneys applied in redemption 400 0 0 State Advances Account moneys applied in redemption . . . . .. 100 0 0 Main Highways moneys applied in redemption .. .. .. 3,370 0 0 Nauru and Ocean Islands moneys applied in redemption .. .. .. 39,675 0 0 Samoan Loan Sinking Fund moneys applied in redemption .. .. 4,245 0 0 Greymouth Harbour Sinking Fund moneys applied in redemption .. 111,813 17 5 Public Debt Redemption Fund moneys : Proceeds of the sale of stock of the State Advances Corporation in terms of Finance Act, 1937, section 8 (3), applied in redemption of securities of — Ordinary Revenue Account — Miscellaneous .. .. .. 3,356,721 0 0 War Expenses .. .. .. 633,000 0 0 Public Works FundGeneral Purposes Account .. 9,679 0 0 State Forests Account . . .. 600 0 0 State Advances Account securities redeemed from the proceeds of the sale of stock of the State Advances Corporation .. .. .. 3,250,000 0 0 From Public Debt Repayment Account — Ordinary Revenue Account — War Expenses .. .. .. 1,033,872 12 11 Miscellaneous .. .. .. 406,868 10 2 Public Works FundGeneral Purposes Account .. .. 261,870 0 0 Land for Settlements Account .. 11,200 0 0 — ■ .. 11,836,805 0 6 278,533,394 11 4

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