"THE CONSOLIDATED STOCK ACT, 1884" (REPORT ON THE WORKING AND OBJECTS OF).

Appendix to the Journals of the House of Representatives, 1892 Session I, I-07

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1892. NEW ZEALAND.

PUBLIC ACCOUNTS COMMITTEE.

"THE CONSOLIDATED STOCK ACT, 1884" (REPORT ON THE WORKING AND OBJECTS OF).

Brought up 17th August, 1892, and ordered to be printed.

EEPOET. The Public Accounts Committee have made inquiry into the working and objects of " The Consolidated Stock Act, 1884," and have examined Mr. Heywood, Secretary to the Treasury, and Mr. Gavin, Assistant Controller and Auditor, thereon, and have the honour to report the information contained' in the attached printed paper. A. B. Guinness, 17th August, 1892. Chairman.

APPENDIX. STATEMENT BY THE SECEETAEY TO THE TBEASUBY IN EEFEBENCE TO "THE CONSOLIDATED STOCK ACT, 1884:" ITS SCOPE AND THE WOBKING, SO FAB AS IT EELATES TO THE SINKING FUND ACCBETIONS OF THE PUBLIC DEBT. The provisions of this part of the Act have probably been less understood than those of any other financial measure which has passed the Legislature. Its principal feature is the providing of relief to the taxpayer from the burden of finding year after year the necessary funds for the payment of sinking funds agreed to be paid when the loans were originally raised. Sir Julius Vogel, when indicating the scheme in his Financial Statement, and again when explaining the provisions of the Bill to the House, in 1884, stated, inter alia, that " Sinking Funds were condemned by experience and by all modern writers and financiers," and that " the colony was not called upon to make these yearly payments whilst, at the same time, for other purposes, it was borrowing money." He pointed out two ways by which relief could be obtained : (1) By not having to pay Sinking Fund ; (2) By a reduction of the rate of interest by the process of conversion : and to effect both these results the Act under consideration was framed. Of course, it must be understood that, having entered into a contract with the bondholders to pay a sinking fund, that part of our engagements has to be absolutely carried out. But the Act affords relief in this way : After the increases which will reach the hands of the Sinking Funds Trustees have been ascertained each year, an equivalent amount of money is raised by the issue of debentures under the Act, and is paid into the Consolidated Fund, by which process the taxpayer is saved from having to find the required amount during the year. The effect of this operation is this : the debt (as regards loans having Sinking Funds) of 1884 has remained stationary for, by just as much as the yearly Sinking Fund increments have been ascertained, a precisely similar amount of stock, or rather debentures, has been created, so that the moneys which are accumulating in reduction of the debt are met and counterbalanced by the creation of the new stock or debentures, and the original debt remains as it was on the 31st March, 1884. As an illustration, say that the debt was £7,500,000. Now, the Sinking Fund accretions since 1884 amount to £2,117,000 ; the debt would therefore be lowered to £5,383,000 ; but debentures under the Stock Act have been issued during the same period amounting to £2,117,000, and, adding this to the reduced sum of £5,383,000, brings back the amount of the debt to the original sum of £7,500,000, and in the meantime the Government have been relieved from the anxiety, and the country from the burden, of having to provide yearly some £260,000 extra revenue for the last eight years. The Act does not interfere with the ordinary ultimate use of the accrued Sinking Funds, which may be devoted to the extinguishment of the debt in respect of which they were paid ; but it provides the"alternative plan of "conversion," whereby the Sinking Funds become released, and are applied to pay off the debentures or stock which had been created for the purpose of affording relief in the payment of the Sinking Fund. Let me again illustrate the working of the Act either way. There are two loans of a million each, having sinking funds, existing on the 31st March, 1884. The eight years' accretions of Sinking Fund, to the 31st March, 1893, we will say, amount to £170,000. Debentures under the Act have been created for this £170,000, and are of course outstanding. On the 31st March, 1893, £85,000 worth of debentures of each loan fall clue, and it is decided to pay off one out of the I—l. 7.

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accrued Sinking Fund, and to convert the other into stock. By the first process the original debt is lessened by £85,000, but the same amount represented by debentures issued in respect of the accretions of Sinking Fund since 1884 is left outstanding. By the second process, the original debt being converted to the extent of £85,000, a similar amount of Sinking Fund becomes released, and is applied to pay off the same amount of debentures raised to provide for the accretions ; so that the old debt remains, under a new name, and the new debt is extinguished. We therefore revert in both cases to the status quo ante, thus : — £ £ £ Debt in 1884 (£85,000 due 31 st March, 1893) ... 1,000,000 (£85,000 due 31st March, 1893) ... 1,000,000 2,000,000 Sinking Funds accrued to 31st March, 1893 ... ... 170,000 — 1,830,000 Debentures created under Act ... ... ... ... 170,000 Debt in 1893 ... ... ... .. £2,000,000 Debt in 1893 ... ... ... ... ... 1,000,000 Less amount due paid out of accrued Sinking Funds ... 85,000 • £915,000 Amount of debentures (part of £170,000) raised under the Act, equivalent to the accretions ... ... ... 85,000 Debt as in 1884 ... ... ... ... £1,000,000 Debt in 1893 ... ... ... ... ... 1,000,000 Less amount due 31st March and converted ... 85,000 915,000 New loan, represented by conversion ... ... ... 85,000 £1,000,000 Amount of debentures (part of £170,000) ... ... 85,000 Less amount paid off out of Sinking Funds set free ... 85,000 Debt as in 1884 ... ... ... ... £1,000,000 I hope that these examples will enable my meaning to be understood. The estimate of Sinking Fund accretions for the year ending the 31st March, 1893, amounts to £283,354, subject to a deduction of £3,054 to adjust over-estimates of previous years. The net estimate for the year is therefore reduced to £280,300. The estimated accretions are thus made up : — Contributions of Sinking Fund ... ... ... ... 104,018 Interest on foreign investments ... ... ... ... 14,526 Interest on Government securities ... ... ... ... 164,810 £283,354 These accretions must steadily increase year after year: First, by the natural process of the investment of the Sinking Fund and of the interest on these investments ; secondly, by the increased amount of " drawn " converted bonds belonging to the Consolidated Loan, 1867. I may explain, in connection with this " drawing " loan of 1867 —the feature of %vhich is that Government shall go on paying 5 per cent, interest and 1 per cent, sinking fund on the original loan of £7,283,100 until the debt is extinguished—that £4,252,500 of the bonds have been converted into debentures, and interest at 5 per cent, on these new debentures is charged under "The Consolidated Stock Act, 1884;" but, as these converted bonds are drawn from time to time, they revert back to and again form part of the amount on which the interest chargeable under " The Consolidated Loan Act, 1867," is payable. In other words, the interest on these drawn converted bonds is an additional contribution of sinking fund of this loan. As more than half of the original loan has been converted, and there had been £1,510,600 of bonds drawn to 31st March, 1884, it follows that the remaining portion of the loan to be drawn must largely consist of the converted bonds, and the amount of these that are annually drawn must necessarily increase year by year. This increase will best be seen by the subjoined table:— Converted. Unconverted. £ £ 1885 " Drawing" ... ... ... ... 72,400 77,400 1886 „ ... ... ... ... 107,400 49,100 1887 „ ... ... ... ... 122,800 42,400 1888 „ ... ... ... ... 131,600 40,900 1889 „ ... ... ... ... 133,400 48,600 1890 „ ... ... 144,000 47,600 1891 „ ... ... ... ... 146,600 54,500 1892 „ ... ... ... ... 158,300 52,200

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The late Secretary to the Treasury (Mr. Gavin) wrote on this subject in 1885, as follows : — " With regard to the Interest and Sinking Fund payable by the colony in respect of the Consolidated Loan of 1867, a curious effect has been produced by the recent conversion. The amount converted was £3,651,700, and debentures for that amount, bearing the same rate of interest, were issued in exchange. Now, as the annual charge in respect of the original loan of £7,283,100 is constant until the whole of the loan is paid off, it would appear at first sight that the conversion of a portion of the loan into debentures bearing precisely the same rate of interest would not at all affect the annual charge ; but this, curiously enough, is not so. Whenever the drawings encroach upon the converted bonds—as happened at the last drawing—the bonds given in exchange for the converted bonds drawn assume a new character, and may be said to represent a new loan, taking the place of the loan paid off by the drawings. At the last drawing, £72,400 of converted debentures were drawn; the charge for interest became therefore increased by £3,620 per annum, or 5 per cent, on £72,400, and such charge must go on increasing year by year, measured by the encroachment of the drawings upon the converted bonds, until it reaches £182,585 per annum, or 5 per cent, on £3,651,700. This increase of the annual charge on the Consolidated Fund for interest is, however, to a certain extent nominal, because the Sinking Fund set free from year to year by the drawing of converted bonds will increase exactly in the same proportion as the increase of interest. The additional interest, in short, follows the additional amount set free." The " Sinking Fund set free" referred to by Mr. Gavin is paid into the Public Account, and is used to redeem an equal amount of debentures created to meet the yearly accretions of the Sinking Funds as a whole. 19th July, 1892. J as. B. Heywood, Secretary, to the Treasury.

Accretions of Sinking Fund.—Estimate for 1892-93.

Debentures or Scrip issued for Increases of Sinking Fund, and Amounts redeemed.

STATEMENT AND TABLES SUPPLIED BY ME. J. C. GAVIN, ASSISTANT CONTBOLLEB AND AUDITOE. (Memorandum.) Audit Office, 20th July, 1892. One of the objects of the provisions of "The Consolidated Stock Act, 1884," was: That to the extent to which the sinking funds increased year by year after the 31st March, 1884, so should money be borrowed in aid of revenue, thereby causing the net debt in respect of loans with sinking funds to remain stationary. By " net debt "is meant the debt represented by debentures outstanding, less the sinking funds. No interference with the obligations then existing to maintain the sinking funds was contemplated, and none has since taken place. They were to go on growing in

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Estimate for 1892-93. Adjustment to 31st March, 1891. Net Estimate for 1892-93. sew Zealand Loan, 1863 (1914) (1915) STew Zealand Consols, 1867 immigration and Public Works Loan, 1870 .. Auckland Loan, 1863 jyttelton and Christchurch Railway Loan, 1860 Janterbury Loan, 1862 )tago Loan, 1862 £ s. d. 8,100 0 0 .. I 9,450 0 0 .. ; 218,202 0 0 .. ; 35,073 17 8 .. i 1,863 4 6 .. I 5,331 1 6 498 17 10 4,775 8 11 £ s. d. 413 0 0 Dr. 5,153 17 8 291 15 6 468 18 6 61 2 2 864 11 1 £ s. d. 8,160 0 0 9,450 0 0 218,015 0 0 29,920 0 0 2,155 0 0 5,800 0 0 560 0 0 5,640 0 0 Total .. 283,354 10 5 I Dr. 3,054 10 5 280,300 0 0

Issued. i I Redeemed. .884-85 .. .885-86 .. .886-87 .. .887-88 .. .888-89 .. .889-90 .. .890-91 .. .891-92 .. .. £247,700 .. 252,200 .. 251,000 .. 258,184 .. 263,200 .. 275,200 .. 288,000 .. 282,300 Out of Sinking Funds set free by annual "drawings" of New Zealand consols and other releases, — 1884-85 .. .. .. .. £72,400 1885-86 .. .. .. ..106,900 1886-87 .. .. .. .. 164,100 1888-89 .. .. .. .. 131,600 1889-90 .. .. .. .. 133,400 1890-91 .. .. .. .. 144,000 1891-92 .. .. .. .. 350,671 1,103,071 ■ ■ ■ 2,117,784 £2,117,784 Balance outstanding .. 1,014,713 £2,117,784

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amount as before ; but, so far as the " net debt " in respect of loans with sinking funds was concerned, the effect of such annual growth was to be counterbalanced by borrowing year by year a sum of money equal in amount to the growth of the sinking funds for the year. The accompanying tables are designed to show the result of the working of the Act to the 31st March, 1892, solely with regard to the aid to revenue afforded by its provisions. Table No. 1 shows the sinking funds in hand at the 31st March, 1884 ; the additions thereto during the eight years ended the 31st March, 1892 ; the amounts applied to the redemption at due date of debentures held by the public ; the amount released under the provisions of "The Public Debts Sinking Funds Act, 1868," and "The Consolidated Stock Act, 1884," respectively ; and the balance of the sinking funds in the hands of the Trustees on the 31st March, 1892. Table No. 2 shows the accretions of the sinking fund of each loan in each of the eight years ended the 31st March, 1892. Table No. 3 shows the amount of the debentures issued by the Treasury from year to year against the annual accretions of sinking funds; the amount of such debentures redeemed out of the sinking funds " set free ; " and the balance outstanding. It is unnecessary to explain how the amount of debentures issuable is determined, or what are sinking funds " set free," as the Consolidated Stock Act itself affords all the information needed. Table No. 4 shows the sources whence were derived the accretions of sinking funds for these years. Table No. 5 shows the amount of the interest charged upon the Consolidated Fund in each year since 31st March, 1884, in respect of the debentures issued against the accretions of the sinking funds. Table No. 6 shows the "net debt" at 31st March, 1884, in respect of loans with sinking funds, viz., £7,854,850 15s. 8d ; but as a portion of the sinking funds then in the hands of the Trustees was subsequently released to the amount of £476,190 16s. 2d., and became applicable to the services of the Government, that amount must be added to the " net debt" as at 31st March, 1884, making a total of £8,331,041 lis. lOd. Of the amount released, £129,793 Bs. was paid into the Consoli-dated-Fund, and became revenue of the years in which it was so paid. £ s. d. 1885-86... ... ... ... ... ... ... 25,000 0 0 1886-87... ... ... ... ... ... ...104,749 6 7 1888-89 44 1 5 £129,793 8 0 These moneys were released and paid to revenue under section 18 of "The Public Debts Sinking Funds Act, 1868," because they were respectively found to be in excess of the sum required at the time to be held by the Trustees, which, invested at compound interest, together with future periodical contributions from the Consolidated Fund similarly invested, would yield an amount sufficient to redeem at maturity the bonds in respect of which the sinking funds were created. The remainder of the amount referred to in table No. 6 as released became payable into the Public Works Fund, under section 9of "The Consolidated Stock Act, 1884." In 1886-87 there was paid £8,311 17s. 9d.; in 1891-92, £316,532 Bs. -5d.; and since 31st Marsh last £3,900, making together £328,744 6s. 2d. In addition to which there are Waitara Harbour Board securities of the nominal value of £17,653 25., which were transferred to the Treasury by the Commissioners of the Public Debts Sinking Funds, making in all £346,397 Bs. 2d. carried into the Public Works Fund from this source. Table No. 7 shows the net debt at 31st March, 1892, which it will be seen equals the net debt at 31st March, 1884, in the preceding table; thus exemplifying the result contemplated at the time of the introduction of the Consolidated Stock Bill in the House of Bepresentatives by the Hon. the Colonial Treasurer, Sir Julius Vogel. Having thus referred to the accompanying tables, I shall briefly state the result of the operations under the Act. During the past eight years the revenue has been aided by money borrowed from time to time, to the extent of £2,117,784, at a total charge for interest of £241,737 16s. 3d.; but, through the conversion of loans with sinking funds into consolidated stock, sinking funds have been set free, thereby enabling the Treasury, in accordance with the provisions of the Act, to repay £1,261,371 of the amount so borrowed, leaving a debt of £856,413, which, unless further releases take place, will constitute part of the permanent debt of the colony. Should no further releases take place the sinking funds will, of course, be applied to paying off the loans to which they relate ; but should the loans be converted the sinking funds will be set free, and, as provided by law, the debentures issued as against the "increases" will be the first charge thereon. Any excess of sinking fund in that case will pass into the Public Works Fund, the effect being an increase of net debt to the amount of the excess so paid. With regard to the extent to which debentures may be issued in future against increases of the sinking funds, I have prepared a further statement showing the outstanding amount of each loan at 31st March, 1892, for redemption of which at maturity a sinking fund has been provided ; the due date of the debentures ; and the rate per cent, of the annual contribution to the sinking fund from revenue. Until these loans respectively mature or are converted, the sinking funds will grow year by year, and, to the extent of such growth, the power to borrow in each year may be exercised ; always, of course, with the result that the " net debt" will remain unaltered. I need hardly say that, should further conversions of outstanding loans take place, the issue of debentures for increases of the sinking funds will be diminished more or less according to the extent of the conversions. I should add that until the "drawing" loan of 1867 is finally paid off—probably about 1903—there will always be an amount of sinking fund " set free " annually, equal in amount to the converted bonds of that loan held by the Government which may happen to be drawn in each year. The amount so set free will be applicable to the redemption of debentures issued against the additions of the sinking fund. James C. Gavin, Assistant Controller and Auditor.

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TABLE No. 1. Table showing the Accumulated Sinking Funds at 31st March, 1884 and the Accretions thereof to the 31st March, 1892; also the Amount applied by the Trustees to the Redemption of Debentures at their due Date, the Amount released under "The Public Debts Sinking Funds Act, 1868," and "The Consolidated Stock Act, 1884," respectively, and the Balance remaining in the hands of the Trustees on 31st March, 1892.

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Released. Loans having Sinking Funds. Sinking Funds at 31st March, 1884. Accretions from 31st March, 1884, to 31st March, 1892. Total. Applied by the Trustees to the Redemption of Debentures due, held by the Public. Under the Applicable to the \ T>«.w.**i„-i*.4.« Redemption Pa * a £ f lnto of Debentures I p nMi . Wnvl .„ issued for Accretions', l aD S° Tl °- JiS of Sinking Fund, i * uua - Under tlie Consolidated Stock Act, 1884. at 31st March, 1892. Balances of Sinking Funds Act, 1868, and paid into Consolidated Fund. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. New Zealand Loan of 1856 481,406 2 11 48,743 0 10 530,149 3 9 450,000 0 0 25,149 3 9 55,000 0 0 New Zealand Loan of 1860 79,005 18 2 38,326 6 1 117,332 4 3 25,000 0 0 38,304 0 0 53,924 9 3 103 15 0 New Zealand Loan of 1803 580,867 16 7 328,971 5 11 .915,839 2 6 104,749 6 7 179,248 11 8 284,161 1 2 347,680 3 1 New Zealand Consolidated Loan of 1867 106,804 3 11 1,412,771 8 0 1,519,575 11 11 501,900 0 0 1,016,500 0 0 1,175 11 11 New Zealand Immigration and Public Works Loan of 1870 71,153 0 8 220,460 7 4 291,613 8 0 291,613 8 0 Auckland Loan of 1863 13,147 9 3 12,187 16 1 25,335 5 4 25,335 5 4 Wellington Loan of 1866 8,590 1 5 1,955 17 9 10,545 19 2 44 1 5 2,190 0 0 8,311 17 9 Lyttelton and Christchurch Railway Loan of 1860 42,867 0 1 35,555 5 11 78,422 6 0 78,422 6 0 Canterbury Loan of 1862 3,329 1 0 3,G85 1 8 7,014 2 8 7,014 2 S Otago Loan of 1862 41,778 10 4 31,543 10 7 73,322 0 11 73,322 0 11 Totals 1,434,949 4 4 2,134,200 0 2 |3,509,149 4 6 951,900 0 0 129,793 8 0 1*1,261,391 15 5 |t346,397 8 2 879,666 12 i * The amount actually redeemed was £1,261,371. See Table No. ! f The amount actually brought to account by the Treasury to 31si Add securities of the Waitara Harbour Board, forming part oi Sinking. funds of the loan of 1863 brought to account since 31: i March, 1892, was the sinking funds of the New Zealand Loan of 1860, released it March, 1892 £ s. a. 324,844 6 2 17,653 2 0 3,900 0 0 £346,397 8 2

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TABLE No. 2. Table showing the Addition to the Sinking Fund of each of the under-mentioned Loans in each Year from 1884-85 to 1891-92, both inclusive.

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1884-85. 1885-86. 1886-87. 1887-88. 188S-89. 1889-90. 1891-92. 1890-91. Total. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. New Zealand Loan of 1856 10,861 1 4 19,618 5 1 Dr. 33 14 8 5,667 10 4 4,390 19 8 i 6,282 2 6 1,175 1 9 781 14 10 48,743 0 10 New Zealand Loan of 1860 5,863 12 2 5,964 11 7 ; 4,729 8 11 4,778 12 5 4,976 10 4 4,534 19 9 3,780 5 3 3,697 19 8 38,326 6 1 New Zealand Loan of 1863 41,261 0 4 45,373 18 8 41,563 4 6 41,011 16 3 42,771 17 4 38,653 14 8 44,078 10 11 34,257 3 3 328,971 5 11 Consolidated Loan of 1867 147,850 0 4 155,116 17 4 I 163,304 13 11 170,895 2 9 179,778 4 7 189,369 1 1 198,131 0 0 208,326 8 0 1,412,771 8 0 Immigration and Public Works Loan of 1870 24,102 4 6 23,482 5 5 : 24,442 2 11 28,719 11 11 27,924 11 3 31,750 7 10 33,787 5 0 220,460 7 4 26,251 18 6 Auckland Loan Act of 1863 1,312 11 4 1,360 14 10 1,336 4 7 1,341 3 4 1,403 2 10 1,500 3 6 2,084 15 1 1,849 0 7 12,187 16 1 Wellington Loan Act of 1866 . 698 13 8 730 17 525 16 8 1 5 10 1,955 17 9 Lyttelton and Canterbury Railway Loan of 1860 3,733 16 6 4,001 11 11 : 4,013 19 8 4,199 17 4 4,361 5 9 4,644 16 9 5,409 10 7 5,190 7 5 35,555 5 11 Canterbury Loan Ordinance of 1862 .. 392 2 1 407 16 7 ' 419 19 3 430 16 6 469 11 4 484 5 4 557 11 1 522 19 6 3,685 1 8 Otago Loan Ordinance of 1862 3,360 1 7 3,525 4 1 | 3.4H 2 9 3,464 5 9 3,745 6 5 3,877 4 2 5,491 6 4 4,668 19 6 31,543 10 7 239,435 3 10 259,581 7 1 ' 243,712 18 6 258,041 3 2 270,618 2 0 277,270 19 0 292,458 8 10 293,081 17 9 2,134,200 0 2

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TABLE No. 3. Table showing the Accretions of Sinking Fund in each Year from the 31st March, 1884, to the 31st March, 1892, together with the Amount of Debentures issued in each Year under Section 6 of "The Consolidated Stock Act, 1884," and the Amount of such Debentures redeemed out of Sinking Funds set free by the Operation of the Act.

Total amount of debentures issued during the eight years ended the 31st £ March, 1892.. .. .. .. .. .. .. 2,117,784 Debentures actually redeemed as above .. .. .. .. £1,103,071 Redeemed early in 1892-93 out of sinking funds set free before the 31st March, 1892 .. .. .. .. .. .. .. 158,300 . 1,261,371 Remaining outstanding .. .. .. .. £856,413

TABLE No. 4. Sources whence were derived the Accretions of Sinking Fund, amounting to £2,134,200, during the Eight Years ended the 31st March, 1892 (approximate).

* This item requires explanation : it can hardly be called the produce of investment in New Zealand securities, for the reason that the bonds upon which the amount is computed are cancelled and cannot be sold. The scheme of the loan, which originally amounted to £7,283,100, is this : There is an annual charge of G per cent, per annum, out of which is first paid 5 per cent, to the bondholder; what is left constitutes the drawing fund for the year; or, put in another way, the drawing fund is composed of the fixed annual charge of 1 per cent, on the original amount of the loan added to 5 per cent, on the total amount of drawn bonds for the time being, which, of course, increases yearly, until all the bonds are drawn and the debt extinguished. The drawn bonds now amount to £2,939,800.

TABLE No. 5. Statement showing the Interest paid in each Year since "The Consolidated Stock Act, 1884," came into Operation in respect of Debentures issued under the Provisions thereof to an Amount equal to the "Increases" of the Sinking Funds, during the Period from the 31st March, 1884, to the 31st March, 1892.

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Financial Year. Accretions of Sinking Fund. Debentures issued. Debentures redeemed. .884-1885 .885-1886 .886-1887 .887-1888 .889-1889 .889-1890 .890-1891 .891-1892 £ s. a. 239,435 3 10 259,581 7 1 243,712 18 6 258,041 3 2 270,618 2 0 277,270 19 0 292,458 8 10 293,081 17 9 £ s. d. 247,700 0 0 252,200 0 0 251,000 0 0 258,184 0 0 263,200 0 0 275,200 0 0 288,000 0 0 282,300 0 0 £ s. d. 179,300 0 0 164,100 0 0 131,600 0 0 133,400 0 0 144,000 0 0 350,671 0 0 Totals .. 2,117,784 0 0 2,134,200 0 2 1,103,071 0 0

Contributions of Sinking Fund from Eevenue. Produce of Investments in New Zealand Government Securities. Produce of Investments in Bonds of other Colonies, &c. Total. lew Zealand Loan of 1856 few Zealand Loan of 1860 few Zealand Loan of 1863 few Zealand Consolidated Loan of 1867 lew Zealand Immigration and Public Works Loan of 1870 .uckland Loan of 1863 Vellington Loan of 1866 jyttelton and Christchurch Railway Loan of 1860 .. lanterbury Loan of 1862 Itago Loan of 1862 £ s. d. 9,101 0 0 126,304 0 0 582,648 0 0 £ s. d. 28,582 13 11 22,570 8 2 202,055 2 7 818,920 0 0* £ s. d. 20,160 0 11 6,654 17 11 612 3 4 11,203 8 0 £ s. d. 48,743 0 10 38,326 6 1 328,971 5 11 1,412,771 8 0 178,000 0 0 5,056 0 0 675 0 0 5,459 15 6 1,042 11 5 42,460 7 4 1,672 0 7 238 0 4 220,460 7 4 12,187 16 1 1,955 17 9 12,370 0 0 1,795 0 0 9,330 0 0 17,302 10 4 1,603 10 5 16,029 6 4 5,882 9 7 286 11 3 6,178 4 3 35,555 5 11 3,685 1 8 31,548 10 7 Totals 925,285 0 0 1,113,566 4 8 2,134,200 0 2 95,348 15 6

.885-86 .886-87 .887-88 .888-89 .889-90 .890-91 .891-92 £. s. a. 10,133 7 0 21,898 10 3 29,976 6 11 35,442 19 4 41,170 19 5 48,135 14 6 54,979 18 10 Total £241,737 16 3

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TABLE No. 6. Debt at 31st March, 1884.

TABLE No. 7. Debt at 31st March, 1892.

*It is not strictly correct to say that this amount was outstanding, because, while the.Treasury might have issued debentures for £2,131,200 os. 2d. (see Table No. 1), it only issued £2,117,781. Deducting the difference between these two amounts from £872,808 4s. 9d., there remains £855,392 4s. 7d., which, on the other hand, has to be increased by the following small sums released, but not applied by the Treasury in 1886-87, £17 lis. Bd.; in 1891-9-2, £3 3s. 9d. These being added, the result is £850,413, as stated in Table No. 2.

TABLE No. 8.

* Trustees have dispensed with further contributions from the Treasury. t The contribution from the Treasury annually is 1 per cent, on the amount of the original loan —£7,283,100, and 5 per cent, on the amount of the drawn bonds; the amount, including £210,500 drawn in March last, is now £2,939,800. } Exclusive of £103 15s. belonging to loan of 1860, matured.

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ibtat 31st March, 1884. AdjLsted. Loans with Sinking Funds. Gross Debt. Sinking Funds in hand. Net Debt. Add for Sinking Funds subsequently released. Total. £ s. d. 500,000 0 0 93,100 0 0 1,519,400 0 0 5,915,000 0 0 £ s. d. 481,406 2 11 79,005 18 2 586,867 16 7 106,804 3 11 £ s. d. 18,593 17 1 14,094. 1 10 932,532 3 5 5,808,195 10 1 £ s. d. £ s. d. 18,593 17 1 93,018 11 1 1,321,442 11 2 5,808,195 10 1 STew Zealand Loan of 1856 .. Sfew Zealand Loan of 1860 .. Sew Zealand Loan of 1863 .. Sf. Z. Consolidated Loan of 1867 Slew Zealand Immigration and Public Works Loan of 1870 Auckland Loan of 1863 Wellington Loan of 1866 liyttelton and Christchurch Railway Loan of 1860 Canterbury Loan of 1862 )tago Loan of 1862 1,000,000 0 0 31,600 0 0 13,500 0 0 71,153 0 8 13,147 9 3 8,590 1 5 928,846 19 4 18,452 10 9 4,909 18 7 78,924* 9 3 388,910 7 9 8,355 19 2 928,846 19 4 18,452 10 9 13,265 17 9 77,700 0 0 22,800 0 0 110,700 0 0 42,867 0 1 3,329 1 0 41,778 10 4 34,832 19 11 19,470 19 0 74,921 9 8 34,832 19 11 19,470 19 0 74,921 9 8 Totals ,9,289,800 0 0 1,434,949 4 4 7,854,850 15 8 476,190 16 2 8,331,041 11 10

Loans with Sinking Funds. Balance of Old Debt at 31st March. 1892. Sinking Funds in hand at 31st March, 1892. Net Old Debt 01dDebt 31st March, 1892. converted. Debentures for Increases of Sinking Funds outstanding at 31st March, 1892. Total. Slew Zealand Loan of 1856 New Zealand Loan of 1860 [STew Zealand Loan of 1863 S\Z. Consolidated Loan of 1867 Sew Zealand Immigration and Public Works Loan of 1870 .. Auckland Loan Act of 1863 Wellington Loan Act of 1866 .. Lyttelton and Christchurcli Railway Loan of 1860 Canterbury Loan Ordinance of 1862 Dfcago Loan Ordinance of 1862.. & 50,000] £ s. a. 55,000 0 0; 103 15 o| 347,680 3 l! 1,175 11 11 £ s. a. j 0.5,000 0 0 Cr. 103 15 0 531,119 16 11 il, 159,024 8 1 £ £ s. d. 23,593 17 1 25 6 1 149,722 14 3 396,271 8 0 £ s. d. 18,593 17 1 93,018 11 1 1,321,442 11 2 5,808,195 16 1 878,800 1,160,800 93,100 640,600 4,252,300 1,000,000 19,800 291,613 8 0 25,335 5 4; 708,386 12 0 0.5,586 5 4 li',800 13,500 220,460 7 4 12,187 16 1 0.234 2 3 928,846 19 4 18,452 10 9 13,265 17 9 71,500 I | | 78,422 0 0 0.6,922 6 0 0,200 3,685 1 8 34,832 19 11 17,00092,000 7,014 2 8 j I 73,322 0 ll 1 9,985 17 4 18,677 19 1 5,800 24,700 35,555 5 11 31,543 10 7 19,470 19 0 74,921 9 8 Totals 3,289,900. .879,066 12 11 2,410,233 7 1 5,048,000| 1*372,808 4 ' 9 [8,331,041 11 10 :.. J

Loans with Sinking Funds. Debentures j outstanding 'at 31st March, | 1892. Due Date of Debentures. Rate of j « ; „v:„„ w „„ j Debentures issued Sinking ! bl "i t " 1 .fJ^ d ! for Estimated Fund j slst a March 1892 ! Accretions taper cent, j mst maron, itaji I 1892-93. New Zealand Loan of 1856 New Zealand Loan of 1863 New Zealand Loan of 1863 New Zealand Consolidated Loan of 1867 New Zealand Immigration and Public Works Loan of 1870 Auckland Loan of 1863 Lyttelton and Christchurch Railway Loan of 1860 Canterbury Loan of 1862 Otago Loan of 1862 £ 50,000 ! July 1, 1894.. 378,800 ! July 15, 1914.. 500,000 Nov. 1, 1915.. 1,100,800 Annual drawing I 1,000,000 j June 1, 1907.. 19,800 i June 1, 1896.. 1 t £ s. d. 55,000 0 0 I 347,680 3 1 1,175 11 11 £ s. d. 17,610 0 0 218,615 0 0 2-4 2 291,613 8 0 25,335 5 4 29,920 0 0 2,155 0 0 71,500 ■ 1893-96 17,000 : 1915-16 92,000 i July 1, 1898.. 3,289,900 j 2 1 1 78,422 6 0 7,014 2 8 73,322 0 11 5,800 0 0 560 0 0 5,640 0 0 Totals 879,562 17 11J 280,300 0 0

1.—7.

Approximate Cost of 'Batpetr* —Preparation, nil; printing (1,350 copies), £8.

Bobeet J. Collins, Accountant to the Treasury. The Treasury, 25th July, 1892, James B. Heywood, Secretary.

Statement showing Conversion Operations, 1891 (furnished at the request of the Committee).

By Authority: Geoege Didsbuey, Government Printer, Wellington.—lB92. Price (id.]

2—l. 7.

9

No. Due Date. Description. Amount for conversion. Amount converted. Bate. Converted into Sj % Stock. bv £ y HolLr. Bel eased. Sinking Funds. To be released. Increase of Public Debt by conversions. By Government. Accrued. Balance. £ £ £ £ £ s. d. £ s. d. £ s. d. £ s. d. £ 1 Mar .-Dec, 1891 Part of 1863, 6 % loan .. 417,000 417,000 104-110 68,768 365,818 424,782 1 2 424,782 1 2 17,586 2 1 July, 1891 Part of 1860, 6 „ 74,100 74,100 104 7,072. 69,992 92,228 9 3 74,575 7 3 17,653 2 0 2,964 3 1 Jan., 1893 Consolidated Stock, 1867, 5 % loan 64,000 1893/97 Lyttelton and Christch'eh Railway, 6 % loan 77,700 6,200 109-115 6,878 78,422 6 0 6,200 0 0 72,222 6 0 678 5 15 April, 1894 Westland, 5 % loan .. 50,000 50,000 107J 53,750 3,750 6 1 June, 1896 Auckland, 6 „ 31,600 11,800 114 13,452 25,335 5 4 11,800 0 0 13,535 5 4 1,652 7 Mar., 1896 Nelson, 7 „ 15,000 8 1 July, 1898 Otago, 6 „ 116,700 24,700 116J-117J 29,015 73,322 0 11 24,700 0 0 48,622 0 11 4,315 9 1915/16 Canterbury, 6 „ 22,800 5,800 136 7,888 7,014 -2 8 5,800 0 0 1,214 2 8 2,088 Stock created t o pay expenses of conversi on (estimat ed) 16,556 16,556 Total .. 868,900 589,600 133,073 506,116 701,104 5 4 499,357 8 5 66,153 2 0 135,593 14 11 49,589