8.—6.

The transactions in the accounts of the Paeroa-Waihi Railway, the Hutt Railway and Road Improvement, the Railways Improvements Authorisation Act, and the Cheviot Estate Act are fully set out in the several separate accounts accompanying my Budget, and do not call for special remark THE LAND FOR SETTLEMENTS ACCOUNT. The acquisition of lands for close settlement was vigorously pushed forward during the past year, with the result that the purchase-money of estates and incidental expenses relating thereto represent a total outlay of £820,652, or very nearly double the amount expended during the previous year. My colleague the Minister of Lands has placed before you a full report upon these transactions. The position of the account at the close of the past year stood thus: Balance brought forward, £716,698; loan and other receipts, £492,428 ; receipts derived from estates, £185,763 ; making a total of £1,394,889 : the expenditure was represented by the purchase-moneys as above, £820,652; management expenses, £2,445; charges and expenses of raising loans, £4,957; and £162,760 for interest; making in all £990,814: thus leaving an available balance of £404,075 at the close of the year. THE CONVERSION ACCOUNT. The operations within the Conversion Account have been numerous and of magnitude during the past year. Three-and-a-half-per-cent. inscribed stock has been created to the amount of £1,663,913 to provide for £892,800 of debentures converted, and £724,600 of debentures redeemed at maturity; charges and expenses amounted to £26,089. THE NEW ZEALAND CONSOLS ACCOUNT. Deposits in our New Zealand Consols did not find much favour, owing to the higher rates for interest universally prevailing. Only £1,117 was lodged during the year. THE LOANS TO LOCAL BODIES ACCOUNT. Up to the 31st March last the total amount of debentures created and carried into this account was £2,563,100. The total net disbursements have been—to local bodies, £2,046,023 ; to Lands and Survey Department, towards opening up blocks of land for settlement, £426,493; and to the Public Works Fund, £89,800, in exchange for debentures under " The Roads and Bridges Construction Act, 1882 " ; or, in all, £2,562,316 The balance at credit of the Loans to Local Bodies Account on the 31st March, 1905, was £5,521. Debentures for £151,000 were created and issued during the past year. Payments on account of loans were made —to local bodies, £116,936 ; and towards opening up blocks of land for settlement, £38,801 ; leaving at the end of the year a balance of £784 to the credit of the account. Of the total amount of debts inscribed to the Ist February last (which does not include grants to the Lands Department), the following figures indicate the rates and the amounts thereunder of the loans granted. £ Loans at 5-per-cent. rate .... .... .... 22,102 4| „ .... .... .... 1,050,423 4 „ .... .... .... 110,582 3J „ .... 972,007 £2,155,114 On account of the strain on the funds of this account caused by the constant demands for loans, applications amounting to £70,465 were declined in order that assistance might be distributed amongst areas in the backblocks, where the necessitous condition of the roads and bridges must claim priority in dealing with applications for loans. I am glad to be enabled to report that the payments of the half-yearly instalments in respect of their debts continue to be fully and punctually made by the local authorities,

III