STATE-GUARANTEED ADVANCES OFFICE (REPORT BY THE SUPERINTENDENT OF THE), FOR THE YEAR ENDED 31st MARCH, 1910.

Appendix to the Journals of the House of Representatives, 1910 Session I, B-13

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1910. NEW ZEALAND.

STATE-GUARANTEED ADVANCES OFFICE (REPORT BY THE SUPERINTENDENT OF THE), FOR THE YEAR ENDED 31st MARCH, 1910.

Presented to both Houses of the General Assembly by Command of His Excellency

ADVANCES TO SETTLERS BKANCH. Sixteenth Annual Report and Balance-sheet. Four thousand one hundred and thirty-one applications for loans, amounting to £ 1,539,150, were received during ilie year. The advances actually granted during the year numbered 2,745, amounting to £1,095,120. The Board had, up to the 31st .March, 1910, authorized 28,735 advanoes, amounting to £10,245,265. Applicants to the number of 3,013 declined the grants offered them, amounting to £1,219,990, so that the advanoes authorized to the 31st March, 1910, numbered 25,722, and amounted to £9,025,275 net. The total amount of advances actually paid over during the year for both the Advances to Settlers and Advances to Workers Branches was £1,457,472 lis. lOd. Classified according to provincial districts, the total number and amount of advances authorized to date are : — XT . , Amount of Advances Pltmnoial . Nu J? b " of authorized. District. Applications. £ Auckland 7,556 2,343,103 Taranaki 3,942 1,750,769 Hawke'sßay 1,386 412,390 Wellington 7,419 2,773,793 Marlborough ... ... ■•■ ••■ • •• 862 354,930 Nelson 430 131,315 Westland ... ... •■• ••• 608 145,085 Canterbury 2 > 495 820 >310 Otago ' 1,797 702,130 Southland .- .- 811,440 Total ... ... ••• 28,735 £10,245,265 Classified according to provincial districts, the advances authorized during the year ended 31st March, 1910, are, — , , Amount of Advances Provincial ' Number oi authorized. District. Applications. £ Auckland • LgJ 331,440 Taranaki - "^BO Hiwke'sßav ••■ ••• ••• 15 ° 40,255 H.i kesl-.tv ... 298,316 Wellington ... ' Marlborough - g 38 625 Nelson ... ••■ ••• •• _. ..'.., ... ~ , 14 17,555 ... 304 104,310 Canterbury ... 675 Siand ::: ::: ::: ::: .:: j* 4uio Total , , .., 3.201 £1,038,340

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The advances outstanding are as follows : — .. . Amount. Number. £ s d Not exceeding £500 ... ... ... 11,261 2,280,512 16 1 Exceeding £500, but not exceeding £1,000 ... 2,136 1,643,694 3 2 Exceeding £1,000, but not exceeding £2.(MX) ... 955 1,326,670 (i 9 Exceeding £2,000, but not exceeding £3,000 ... 156 416,756 111 Total ... ... ... ... 14,508 £5,667,633 7 11 The average amount of the advances now outstanding is £391. Number and amounts advanced on freehold and leasehold :— .. i Amount. Number. £ g d On freeholds ... ... ... ... 8,686 4,160,187 0 11 On leaseholds ... ... ... ... 5,616 1,383,776 17 8 On freeholds and leaseholds (combined) 206 123,669 9 4 Total ... ... ... ... 14,508 £5,667,633 7 11 The average freehold advance is £+79, the average leasehold advance is £ - 24(i. and the average freehold and leasehold (combined) is £600. Number and amounts advanced on rural and urban and suburban land : — .. , Amount. Number. £ _ (| On rural land ... ... ... ... 9.172 3,786,717 6 6 On urban and suburban land ... ... 5,336 1,880,916 1 5 Total ... ... ... ... 14,508 £5,6(17,633 7 11 The average rural advance is £413, and the average urban and suburban advance is £352. The amounts of the advances granted during the rear ended 31st March, 1910, are as follows :— ~ , Amount. Number. £ 8 d Not exceeding £500 ... ... ... 2,302 675,120 0 0 Exceeding £500, but not exceeding £1,000 ... 319 227,010 0 0 Exceeding £1,000, but not exoeeding £2,000 ... 103 141,300 0 0 Exceeding £2,000, but not exceeding £3,000 ... 21 51,690 0 0 Total ... ... ... ... 2,745 £1,095,120 0 0 The average amount of the advances granted for the year is £399, and the tenure of the securities is— XT , Amount. Number. £ 8 d On freeholds 1,548 637,430 0 0 On leaseholds ... ... ••■ ■■■ 1,175 437,315 0 0 On freeholds and leaseholds (combined) ... 22 20,375 0 0 Total ... .. 2,745 £1,095,120 0 0

For the year the aveiage freehold advance was £4 12. tin- average leasehold advance £372, and the average freehold and leasehold (combined) £926. The total sum raised by the Government on debentures For investment on mortgage since the Department was started is ' £5.748,51 id. Fourteen thousand live hundred and eight mortgagors are now indebted to the Department to the extent of £5,007,033 7s. lid. in respect of principal moneys, an increase during the year of 1,398 mortgagors, owing £510.502 Bs. 7d. The gross profits for the year ended 81st March, 1910, were E50.684 12s. 10d., and the cost of management and expenses'of the Department £S.S4O ss. 2d., being 015 per cent., or 3s. per £100, on capital employed (the cost of the previous year was 010 per cent., or 3s. lOd. per £100). The net profits amounted to £41,833 6s. lOd. A sum of £57,438 has been added to the sinking fund established under section 30 of the Slate-guaranteed Advances Act, 1909, bringing the total amount standing to the credit of that account to £101,627 18s. Bd. . Seventeen freehold and thirteen leasehold securities have for various reasons been realized by the Department up to the present time. In one case this year a loss of £5 Os. lOd. has been niade. There are, however, on the Department's hands two securities which are not satisfacto'rv. At present they are leased at a nominal rental, awaiting a favourable opportunity for realization. . ..... Mortgagors continue to meet their half-yearly payments of interest and principal in a manner creditable to themselves and highly satisfactory to the Department, the stringency in the moneymarket apparently not affecting to'anv noticeable extent their ability to meet their payments. The total amount of interest collected for the year amounted to £241,405 Is. lid., an increase on the previous year of £35,077 os. Id. The total amount of interest collected from the time

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advances were first made up to the 31st March, 1910, amounted to the sum of £1,663,784, in addition to the repayments of principal, .£3,670,020, making a grand total of £5,339,810. Applications are now being carefully examined when first received before a valuation is ordered. If the grant of a loan is considered doubtful, the facts are submitted to the Board for preliminary consideration. When the property offered is not considered satisfactory for a loan, the application is declined and the valuation fee returned. In this way delays are avoided, and loss of the fee —which to a poor man is considerabli —prevented. The term for repayment of small loans is too long, and should lie reduced. The improvements on many small holdings are not of a lasting nature, and deteriorate rapidly. Thirty-six and one-half years is an unreasonable time to have small sums owing. The shorter term would mean a difference of a few pence per week only in more rapid repayments of principal—the interest, of course, being the same. An inspector of securities is needed on the office stall. Many of the office mortgages are on properties in remote places. The experience of such an officer would lie very useful in checking valuers' reports when further advances are applied for, and where the local valuer is too sanguine as to the prospects of his particular district, The phenomenal good fortune of the Department up to the present cannot be expected to continue indefinitely, and provision should be made for writing down any doubtful securities, and debiting them againsl the ample Reserve fund provided to meet losses. This cannot lie done unless a fairly accurate estimate of the value of the Department's securities is periodically obtained. The volume of business transacted during the year has been very large, and a word of praise is due to the staff for the care and attention given by them to their work. J. W. PoYNTON, Superintendent. State-guaranteed Advances Office, Wellington, 19th July, 1910.

ADVANCES TO WORKERS BRANCH. Third Annual Report and Balance-sheet. The Government Advances to Workers Act was passed on the 29th October, 1906. Applications for loans were first considered by (lie Board at its meeting on the Bth January, 1907. For the year ended 31st March, 1910, the applications received numbered 2,028, amounting to £550,651, as against 1,78+ applications, amounting to £472,989, for the previous year—an increase of 244 applications- in amount, £77,662. The advances actually granted during the year numbered 1,359, for £362,352 lis. Kid., which exceeds those of the previous year by 243, for £64,168 ss. lOd. from the Sth January, 1907, up to the 31s( March the Board hail authorized 4,253 advances, amounting to £1,071,225. Applicants to the number of 148 declined the grants offered them, amounting to £41,900, so that the net advances authorized to the 31st March, 1910, numbered 4,105, and amounted to £1,032,325. Classified according to provincial districts, the total advances authorized are as under :— ~ . . , -v i <■ Amount of Advances 1 '?v..K-ml Number oi authored. District. Applications. £ Auckland ... ... ... ... ... 1,110 250,275 Taranaki ... ... ... ... ... 114 27,045 Hawke'sßav ... ... ... ... ... 234 59,755 Wellington ... ... .. ... ... 1,026 275,875 Marlborough ... ... ... ... ... 136 34,460 Nelson ... ... ... ... ... 11l 24,995 Westland ... ... ... ... ... 135 28,265 Canterbury ... ... ... ... ... 900 246,780 Otago ... ... ... ••• .. 338 87,285 Southland ... ... ... ... ... 149 33,490 Total ... ... ... ... ... 4,253 £1,074,225 Classified according to provincial districts, the advances authorized during the year ended 31st March, 1910, are, — _ , , , v. —i, . •„( Amount of Advances Provincial Number of auth orked. District. Applications. £ Auckland .. • ... •.. .. -'00 111,310 Taranaki ... ... •■■ ■•■ ••• 47 11,445 Hawke'sßav ... ... ... ... ... HI 28,140 Wellington' ... ... ••■ •■• ■-• ''7 130,720 Marlborough ... ... ••• ••• •• 56 14,935 Nelson ... ■'■■ ••• ••• 36 8,315 Westland ... --- ••- 39 7,980 Canterbury ... ... ... ••• ■•■ 378 104,045 Otago 142 37,020 Southland ... ... --- ••• -•■ 68 16,515 Total ... ... ... ... •■• 1,854 £470,425

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The tenure of the advances outstanding is as follows : — x , . Amount, dumber. £ On freeholds ... ... ... ... 2,760 773,530 14 6 On leaseholds ... ... ... ... 275 45,075 0 0 Total ... ... ... ... 3,035 £818,605 14 6 The average freehold advance is £280, and the average leasehold advance is £164. The advances granted during the year ended 31st March, 1910, mi freehold and leasehold are as follows :— XT , Amount. Number. £ _, On freeholds 1,172 332,772 11 10 On leaseholds ... ... 187 29,580 0 0 Total ... ... ... ... 1.359 £362,352 11 10 For the year the average freehold advance was £284, and the average leasehold advance £155. The total sum raised by the Government on debentures for investment on mortgage to workers is £823,500. Three thousand and thirty live mortgagors are now indebted to the Department to the extent of £818,605 14b; 6d. in reaped of principal moneys, an increase during the year of 1,230 mort gagors, amounting to £330.057 lis. lOd. The gross profits for the' year ended 31st March, 1910, were £2,353 3s. Sd., and the cost of management and expenses of the Department £957 Os. 9d., being 0"12 per cent., or 2s. sd. per £100, on the capital employed. The net profits amounted to £1,396 2s. lid. A sum of £6,285 has lieen added to the sinking fund established under section 30 of the State-guaranteed Advances Act, 1909, bringing the total amount standing to the credit, of that account to £7,837 17s. The approval of the Right Hon. the Minister in Charge of the Department has been given to the supply to intending borrowers free of charge of complete plans and specifications of various types of buildings costing from £200 to £650. This will enable workers to get the very best type of building for the money, paid, besides giving the Department much better securities for its loans. Even the smallest building of the set, containing only three rooms, will have a hot- and cold-water system, a bath, and most convenient internal arrangements. Two extra rooms can be added as a' lean-to at a cost of about £75, should the house be found too small after being occupied. If there is no water-supply, tanks at a reasonable cost can lie used for the system. It is desirable to shorten the term for repayment of loans to workers. No building society lends money for 36£ years. Twenty years is long enough where there is a possibility of a fall in values as where the town or village in which the property on which the moneys are advanced is situated is dependent on some industry with a limited life, such as mining or sawmilhng. Before the present long term fur repayment is past, some of these places may be deserted. In localities where the industries are of a permanent nature, or the future of the place is certain to be progressive, and the values of the property are not likely to recede, a longer period for repaying the • principal could be given. These figures will prove that a repayment term of twenty years would not press heavily on the borrowers: The average advance to workers is under £270. In twenty years a loan of that amount with interest at 4£ per cent., would be wholly repaid by instalments of Bs. per week. Even the maximum loan of" £450 would be extinguished in that time, together with all interest, by a payment of 13s. 4d. per week—not so much as many workers are now paying as rent for btiildino-s much inferior to those that can be obtained by borrowers from the Department The more quickly the money is repaid, the sooner some other worker will get the use of it To lock it up for too long a time is not advisable either from the lender's point of view, regardmg it as a security, or from the public-utility aspect of the matter. The thanks of the Board are due to Mr. Woburn Temple, architect on the staff of the Labour Department, who has drawn the plans and specifications for the use of future borrowers. His expedience in the erection of homes for workers under the Workers' Dwellings Act ,n different places in the Dominion was most valuable. The reason why a type of building costing £650, being £200 above the maximum authorized to lie lent to workers, is included in his selection, is that some applicants may have some money saved and would add it to the maximum amount obtainable in getting a better home than could be built for that amount, From the number of small sums borrowed from he Department in the past many of the dwellings erected must be little better than whares. With the new system a much better kind of home will be common; and the instalments of principal and interest required to discharge the loan on it are so reasonable that they will be a very light burden. J. W. Poynton, Superintendent. State-guaranteed Advances Office, Wellington, 19th July, 1910.

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ADVANCES TO LOCAL AUTHORITIES BRANCH. LAND FOR SETTLEMENTS BRANCH, GUARANTEED MINING ADVANCES BRANCH, AND NATIVE LAND SETTLEMENT BRANCH. The first annual balance-sheet in respect of each of these branches is herewith submitted. The operations of the Advances to Local Authorities and hand for Settlements Branches were not extensive for the two months during which the Act was in force up to the end of the financial year; but a very large expansion of business in the Uians to Local Authorities Branch must be looked for immediately. The usefulness of the Department to local authorities would be much increased if the present complicated procedure for obtaining loans were simplified. The restrictions at present existing cause delays, expense, and irritation, and are quite unnecessary after the ratepayers have expressed approval of the loan. J. W. Poynton, Superintendent. State-guaranteed Advances Offioe, Wellington, 19th July, 1910.

BALANCE-SHEET.—ADVANCES TO SETTLERS BRANCH. Statement of Liabilities and Assets at 31st March, 1910. Liabilities. Assets. £ s. d. £ s. d. £ s. d. £ s. d. 3-per-cent. loans, re- Investment Account— deemable Ist April, Advances on mort--1945 .. .. 2,000,000 0 0 gage .. .. 9,343,660 0 0 Sundry loans .. 2,223,800 0 0 Less repayments .. 3,680,686 6 2 Advances on account 5,662,973 13 10 of loans .. .. 1,520,000 0 0 Mortgage instalments receivable—over5,743,800 0 0 due .. .. .. .. 4,659 14 1 Accrued interest payable on deposits .. 20 10 2 Interest receivable —overdue .. .. 18,189 14 3 Accrued interest payable on account of Interest receivable —accrued.. .. 44,457 15 2 loans .. .. .. .. 82,988 0 0 Bills receivable .. .. .. 25 10 7 Reserve Fund .. .. .. 50,000 0 0 Office Furniture Account .. .. 202 19 8 •Sinking Fund Reinvestment Account 44,189 18 8 Insurance Premiums Account .. 71 7 10 Suspense Account .. .. ..' 8,499 8 9 Amounts transferred to Workers Branch 120,000 0 0 Advances Suspense Account .. .. 31,751 4 5 Sinking Fund Account (Public Trustee) 57,438 0 0 Fire Loss Suspense Account .. .. 3,561 11 6 Cash in hand and in Profit and Loss Account .. .. 86,136 14 6 bank .. .. 145,31112 7 —« ■ Less unpresented £5,995,892 8 0 cheques .. .. 57,438 0 0 ■ 87,873 12 7 £5,995,892 8 0 •This sum, which represents the amount of Sinking Fund set up in accordance with the provisions of the Government Advances to Settlers Act, 1908, hai since the 31st March, 1910, betn paid over to the Public Trustee in order to comply with section 30 of the New Zealand State guaranteed Advances Act, 1909. J. W. Poynton, Superintendent. W. N. Hinchxiffe, N.Z.S.A , Accountant. New Zealand State-guaranteed Advances Office, Wellington, 15th June, 1910. Examined and found correct. —Robert J. Collins, Controller and Auditor-General. 25th July, 1910.

Statement of Profit and Loss Account for the Year ended 31st March, 1910. Dr. £ s. d. Cb. £ s. d. To Management Expenses Account .. 8,846 5 2 By Interest Account—gross profits .. 50,684 12 10 Loss on realisation of security .. 5 0 10 Balance—net profits for the year ended 31st March, 1910 .. 41,833 6 10, £50,684 12 10 £50,684 12 10 Loan-flotation charges written off .. 6,439 7 9 Balance as at 31st March, 1909 .. 50,742 15 5 Balanoe—net profits carried forward 86,136 14 6 Net profits for the year .. .. 41,833 6 10 £92,576 2 3 £92,576 2 3

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Statement of Interest Account for the Year ended 31st March, 1910. Dr. £ s. d. £ s. d. Or. £ s. d. £ s. d. To Interest paid on loans 179,011 19 11 By Interest received on Less accrued interest at mortgages .. 234,867 9 10 31st March, 1909 .. 15,743 6 8 Interest reoeived on 163,268 13 3 bank balances .. 1,023 12 7 Interest paid on deposits 40 1 5 Interest received on Less accrued interest at amounts trans31st March, 1909 .. 19 16 11 ferred to Workers 20 4 6 Branch .. .. 5,562 1 1 Accrued interest payable on deposits at Interest received on 31st March, 1910 20 10 2 balance purchaseAccrued interest payable on loans at money .. .. 11 18 5 31st March, 1910.. .. .. 32,933 0 0 241,465 111 Balance of interest gross profits trans- Less interest overdue and accrued at ferred to Profit and Loss Account .. 50,684 12 10 31st March, 1909 .. 57,185 10 7 184,279 11 4 Interest receivable— £ s. d. Overdue at 31st March, 1910 .. 18,189 14 3 Accrued at 31st March, 1910 .. 44,457 15 2 62,647 9 5 £246,927 0 9 £246,927 0 9

Statement of Management Expenses Account for the Year ended 31st March, 1910. Dr. £ s. d. Or. £ s. d. To Audit Department .. .. .. 200 0 0 By Consent fees .. .. .. 27 5 0 Court costs .. .. .. .. 33 5 0 Mortgage fees .. .. .. 282 10 0 Petty general expenses .. .. 23 0 0 Production fees .. .. .. 340 8 9 Postages and telegrams .. .. 518 10 9 Rates—Refund of amounts paid by DePost Office services .. .. .. 500 0 0 partment.. .. .. .. 12 17 0 Printing and stationery .. .. 404 210 Release fees .. .. 263 8 0 Registration and search fees.. .. 702 5 8 Balance transferred to Profit and Loss Salaries .. .. 6,423 18 6 Account .. .. .. .. 8,846 5 2 (unauthorised) 133 19 1 6,557 17 7 Solicitors' costs .. .. .. 718 i Sundries .. .. .. .. 3 10 6 Telephones .. .. 24 7 0 Travelling expenses .. .. .. 48 1 3 Valuation Department—Agency work .. 750 0 0 £9,772 13 11 £9,772 13 11

Statement of Receipts and Expenditure for the Year ended 31st March, 1910, Dr. Receipts. £ sd. t Cr. Expenditure. £ s. d. To Cash in hand and in bank at 31st By Advances on mortgage .. .. 1,095,120 0 0 March, 1909 .. .. .. 28,087 86J Advances Suspense Account .. 36,160 12 7 Advances Suspense Acoount 43,112 18 7 Audit Department .. 200 0 0 Bills Receivable Account .. .. 103 0 0 Court costs .. .. 103 1 6 Consent fees .. 27 5 0 Fire Loss Suspense Account .. 7,001 18 2 Court costs .. .. .. 69 16 6 Insurance Premiums Account .. 541 7 5 Fire Loss Suspense Account .. 8,373 2 6 Interest on loans .. .. 179,011 19 11 Insurance Premiums Account .. 576 13 3 Interest on deposits .. 40 1 5 Interest on balance purchase-money 11 18 5 Loan-flotatation Charges Account .. 6,439 7 9 Interest on bank balances.. .. 1,023 12 7 Office Furniture Account .. 46 0 0 Interest on mortgages .. .. 234,867 910 Petty general expenses .. 23 0 0 Interest on amounts transferred to Postages and telegrams .. .. 619 2 3 workers .. .. .. 5,562 1 1 Poet Office services 500 0 0 Mortgages and instalments repaid .. 545,527 16 5 Printing and stationery .. .. 429 210 Mortgage fees .. .. .. 282 10 0 Profit and Loss Account—Loss on Production fees .. .. 343 0 9 realization of seourity .. 5 0 10 Postages refunded .. .. 0 11 6 Production fees refunded .. 2 12 0 Rates .. .. .. .. 12 17 0 Registration and search fees 1,218 15 0 Registration and search fees .. 516 9 4 Sinking Fund Account .. 57,438 0 0 Release fees .. .. .. 263 8 0 Salaries.. .. .. 7,123 18 6 Solicitors' costs .. .. .. 215 6 Solicitors' costs .. .. .. 10 810 Sundries .. ... .. 23 13 2 Suspense Account .. .. 5,713 3 4 Suspense Account .. .. 6,991 8 0 Sundries .. .. 27 3 8 Temporary advances on account of Telephones .. .. .. 24 7 0 loans .. .. .. .. 585,000 0 0 Temporary advanoes to Workers Temporary Advances to Workers Branch .. .. .. 375,000 0 0 Branch refunded .. .. 400,000 0 0 Travelling-expenses ... 48 1 3 Unauthorised Account —part salary Unauthorised Account—Salaries .. 250 12 5 refunded .. .. .. 116 13 4 Valuation Department— Valuation fees .. 6,69112 9 Fees .. .. .. .. 5,214 7 9 Workers Branch refunds— Agency work .. .. 750 0 0 Salaries .. . ■ 700 0 0 Valuation fees refunded and transPostages and telegrams.. .. 100 0 0 ferred .. .. .. 1,477 5 0 Printing and stationery.. .. 25 0 0 Cash in hand and in bank at 31st March, 1910 .. .. 87,873 12 7 £1,868,413 2 0 £1,868,413 2 0 J. W. Poynton, Superintendent. W. N. Hinchliffe, N.Z.S.A Accountant. New Zealand State-guaranteed Advances Office, Wellington, 15th June, 1910. Examined and found correct. —Robert J. Collins, Controller and Auditor-General. 15th July, 1910.

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ADVANCES TO WORKERS BRANCH. Statement of Liabilities and Assets at 31st March, 1910. Liabilities. £ s. d. Assets. Advances on account of loanß .. .. 703,500 0 0 Investment Account — £ s. d. £ s. d. Advances from Settlers Branch.. .. 120,000 0 0 Advances on mortgage .. 870,005 0 0 Accrued interest payable on account of Less repayments .. 51,664 4 11 advances .. .. .. .. 5,988 8 9 818,340 15 1 Suspense Account .. .. .. 53 14 2 Mortgage instalments receivable—Overdue 264 19 5 Advances Suspense Aocount .. .. 15,437 2 6 Interest receivable —Overdue .. .. 1,286 16 11 Fire Loss Suspense Account .. .. 89 7 0 Interest receivable—Accrued .. .. 5,010 17 0 * Sinking Fund Reinvestment Account .. 1,552 17 0 Insuranoe Premiums Account .. .. 7 3 8 Reserve Fund .. .. .. 1,514 9 0 Sinking Fund Aocount—Public Trustee 6,285 0 0 Cash in hand and in bank at 31st March, 1910 17,350 12 1 Lees unpresented cheques 410 5 9 16,940 6 4 £848,135 18 5 £848,135 18 5 * This sum, which represents the amount of Sinking Fund set up in accordance with the provisions of the Government Advances to Settlers Act, 1908, has since the 31st March, 1910, been paid over to the Public Trustee in order to comply with section 30 of the New Zealand State-guaranteed Advances Act, 1909. J. W. Poynton, Superintendent. W. N. Hinchliffe, N.Z.S.A., Accountant. New Zealand State-guaranteed Advances Office, Wellington, 15th June, 1910. Examined and found correct. —Robert J. Collins, Controller and Auditor-General. 25th July, 1910.

Statement of Profit and Loss Account for the Year ended 31st March, 1910. Dr. £ s. d. Cr. £ s. d. To Management Expenses Account .. 957 0 9 By Interest Account gross profits .. 2,353 3 8 Balance net profits for the year .. 1,396 211 £2,353 3 8 £2,353 3 8 Loan-flotation charges written off .. 1,423 18 5 Balance as at 31st March, 1909 .. 1,542 4 6 Balance net profits transferred to Re- Net profits for the year .. .. 1,396 211 serve Fund* .. .. .. 1,514 9 0 £2,988 7 5 £2,938 7 5

Statement of Interest Account for the Year ended 31st March, 1910. Dr. £ s. d. £ s. d. Cr. £ s. d. £ 9 . d. To Interest paid on loans .. 16,548 8 5 By Interest on mortgages .. 24,837 16 t Less accrued interest at Interest on bank balances 106 18 0 31st March, 1909 .. 2,682 1 8 24,944 14 1 13,866 6 9 Lesß interest overdue and accrued at Accrued interest payable on loans at 31st March. 1909 .. .. 3,472 7 9 31st March, 1910 .. .. .. 5,988 8 9 - Interest paid on amounts transferred 21,472 6 4 from Settlers Branoh .. .. 5,562 1 1 Interest receivable— Balance Interest Account —Gross profits Overdue at3lstMarch, transferred to Profit and Loss Account 2,353 3 8 1910 .. .. 1,286 16 11 Accrued at 31st March, 1910 .. .. 5,010 17 0 6,297 13 11 £27,770 0 3 £27,770 0 3

Statement of Management Expenses Account for the Year ended 31st March, 1910. Dr. £ s. d. Cr. £ s . d To Postages and telegrams .. .. 100 0 0 By Court costs .. .. .. .. 012 0 Printing and stationery .. .. 27 16 0 Production fees .. .. .. 17 17 0 Salaries .. .. .. .. 700 0 0 Release fees .. .. .. .. 16 15 0 Solicitors' oosts .. .. 120 3 6 Sundries .. .. .. .. 0 8 2 Valuation fees .. .. 44 13 5 Balance transferred to Profit and Loss Account .. .. .. .. 957 0 9 £992 12 11 £992 12 11 ' i ■

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Statement of Receipts and Expenditure for the Year ended 31sfc March, 1910. Dr Receipts. £ s. d. Cr. Expenditure. £ s. d. To cash in hand and in bank at 31st By Advances on mortgage .. .. 362,352 11 10 March, 1909 .. .- •• 596 3 4 Advances Suspense Account .. 47,863 18 0 Advances Suspense Account.. .. 56,285 210 Court costs .. .. •• 410 0 Court costs .. .. • • 5 2 0 Fire Loss Suspense Account .. 250 0 0 Fire Loss Suspense Account .. 89 7 0 Insurance premiums account .. 36 11 5 Insuranoe premiums account .. 33 9 7 Interest on loans .. .. .. 16,548 8 5 Interest on bank balances .. .. 106 18 0 Interest on amounts transferred from Interest on mortgages .. .. 24,837 16 1 Settlers Branch .. .. .. 5,562 1 1 Mortgages and instalments of principal Loan-flotation Charges Account .. 1,423 18 S repair] .. .. 26,295 0 0 Postages and telegrams .. .. 100 0 0 Production fees 17 17 0 Printing and stationery .. "... 27 16 0 Registration and search fees ■ .. 428 6 9 Registration and search fees .. 428 6 9 Release fees 16 15 0 Salaries 700 0 0 Sundries .. • • 016 2 Solicitors' oosts .. .. .. 120 d b Suspense Acoount 527 12 8 Sinking Fund Account .. .. 6,285 0 0 Temporary advances on account of loan 375,000 0 0 Sundries .. .. •• 0 8 Temporary advances from Settlers Suspense Account .. .. 551 13 6 Branch •• 375,000 0 0 Temporary advances from Settlers Valuation fees " .. .. 1,290 4 7 Branch refunded .. .. 400,000 0 0 Valuation Department fees .. .. 1,260 7 U Valuation fees refunded .. .. 74 11 0 Cash in hand and in bank at 31st March, 1910 .. .. .. 16,940 6 4 £860,530 11 0 £360,530 11 0 J. W. Poynton, Superintendent. W. N. Hinchliffe, N.Z.S.A., Accountant. New Zealand State-guaranteed Advances Office, Wellington, 15th June, 1910. Examined and found correct.—Robert J. Collins, Controller and Auditor-General. 25th July, 1910.

ADVANCES TO LOCAL AUTHORITIES BRANCH. Statement of Liabilities and Assets as at 31st March, 1910. Liabilities. £ s. d. Assets. £ s. d. Sundry loans .. •• .. 400,000 0 0 Advances on mortgage .. .. .. 10,000 0 0 Accrued interest payable on account of Interest receivable-Accrued .. 7 13 5 loans .... •• •• 901 7 2 Sinking Fund Account—Public Trustee .. 4,000 0 0 Profit and Loss Account .. .. 636 3 3 Cash in hand and in bank .. .386,257 10 6 £400,901 7 2 £400,901 7 2 J. W. Poynton, Superintendent. W. N. Hinchliffe, N.Z.S.A., Accountant. New Zealand State-guaranteed Advances Office, Wellington, 15th June, 1910. Examined and found correct—Robert J. Collins, Controller and Auditor-General. 25th July, 1910.

Statement of Profit and Loss Account for the Period ended 31st March, 1910. Dr i Cr - To Balance interest account .. ..£636 8 3| By Balance .. .. .. ..£636 3 3

Statement of Interest Account for the Period ended 31st March, 1910. Db g i. d. I ' Ck. £ ». d. To Accrued interest payable on loanß at 31st By Interest received on bank balances .. 257 10 6 March 1910 .. 901 7 2; Interest receivable-Accrued at 31st March, 1910 .. .. .. .. 7 13 5 Balanoe transferred to Profit and Loss Account .. .. .- .. 636 3 3 £901 7 2 £901 7 2 r " !—■■■ ■■■in "■«

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Statement of Receipts and Expenditure for the Period ended 31st March, 1910. Dr. Receipts. £ s. d. ! Cb. Expenditure. £ a. d. To Advances on account of loans .. 100,000 0 0 By Advances on mortgage .. .. 10,000 0 0 Interest on bank balances .. .. 257 10 6 Sinking Fund—Public Trustee .. 4,000 0 0 Cash in band and in hank at 31st March, 1910 .. .. .. 386,257 10 6 £400,257 10 6 £400,257 10 6 J. W. Poynton, Superintendent. W. N. Hinchliffe, N.Z.S.A., Accountant. New Zealand State-guaranteed Advances Office, Wellington. 15th June, 1910. Examined and found correct—Robert J. Collins, Controller and Auditor-General. 25th July, 1910.

GUARANTEED MINING ADVANCES BRANCH. For the period ended 31st March, 1910: Transactions, Nil. LANDS FOR SETTLEMENT BRANCH. Capital liabilities transferred from I Sinking Funds held by Public Trustee £232,793 17 3 Treasury .. .. ..£5,874,938 0 o| For the period ended 31st March, 1910: Transactions, Nil. NATIVE LAND SETTLEMENT BRANCH. For the period ended 31st March, 1910: Transactions, Nil. J. W. Poynton, Superintendent. W. N. Hinchliffe, N.Z.S.A., Accountant. New Zealand State-guaranteed Advances Office, Wellington, 4th July, 1910. Examined and found correct.—Robert J. Collins, Controller and Auditor-General. 25th July, 1910. Approximate Cost ol Paper.— Preparation, not given; printing (1,800 copies), £ 9 7s. 6d. By Authority : John Mackay. Government Printer, Wellington.—l9lo. Price 6d.]

LANDS FOR SETTLEMENT BRANCH. Capital liabilities transferred from I Sinking Funds held by Public Trustee £232,793 17 3 Treasury .. .. ..£5,874,938 0 o| For the period ended 31st March, 1910: Transactions, Nil.

NATIVE LAND SETTLEMENT BRANCH. For the period ended 31st March, 1910: Transactions, Nil. J. W. Poynton, Superintendent. W. N. Hinchliffe, N.Z.S.A., Accountant. New Zealand State-guaranteed Advances Office, Wellington, 4th July, 1910. Examined and found correct. —Robert J. Collins, Controller and Auditor-General. 25th July, 1910. Approximate Cost of Paper.— Preparation, not given; printing (1,800 copies), £9 7s. 6d.

By Authority : John Mackay. Government Printer, Wellington.—l9lo. Price 6d.]

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