GOVERNMENT INSURANCE ASSOCIATION.

Wairarapa Daily Times, Volume VII, Issue 2007, 4 June 1885, Page 2

GOVERNMENT INSURANCE ASSOCIATION.

Sir Julius Yogol, as Chairman of the Finance Committee of the Government Insurance Association, has addressed the following letter to the Treasury Department : Sm,—l have the honour to state that I think it is desirable the Association should come to an agreement with the Government as to the nature of tlio investment of the funds of the Association. In consequence of its guarantee, the Government are largely interested in the nature of the Association's investments. Still, I recognise that it is undesirable the Government should interfere with the Board's investments beyond the measure required for the Government's own protection. I am of opinion that the requisite security, on the one side, and freedom on the other, may be attained by prescribing the nature of the investments, and the minimum of Government securities. Such seems to have been the intention of the Act, judging from Clause 74, which gives the Governor-in-Council power to declare what are to be deemed proper securities. Before such power is exercised, I should like to agree with the Board, as to its being exercised, in a manner that will be acceptable, My prqpos,al is, that tlio Board shall be limited to four clajps of investments. 1, Loans on policies, 2. Purchase of debentures, bonds, obligations, or inscribed stock, scoured on the consolidated revenue of Now Zealand, which I Will hereinafter describe as Government securities, 3. Debentures issued under Parliamentary authority by local bodies. 4. Loans on mortgage of freeholdproperty, I propose that for any investments outside of these four classes the Board shall obtain special authority from the Govoru-nor-in-Council, I propose, moreover, that the Board shall be boui d to invest two-fifths of its entire assets in Government securities; any investments beyond that amount to be at the option of the Board. The Auditor-General to decide, in case,of dispute, what are the current assets from time to time. If these terms are acceptable to you I will endeavour to have effect given to them by Order-in-Council, and 1 will at once reduce the amount of Government securities you hold to the minimum before stated.