XVIII

8.—6

Prior to the date when the Government assumed office the lending operations of this Department had to be restricted owing to insufficiency of capital. As the funds became more plentiful, and previous commitments had been provided for, the limits of loans which could be granted by the Board were gradually increased, and in June last the Government found itself in a position to remove altogether the restrictions which had previously been placed on the lending of moneys under the three branches of the Department. A great change has taken place in the Local Authorities Branch of the Department especially. The large commitments, with insufficient funds to meet them, which existed during the early period of the year 1912-13 have been provided for, and a good credit balance has been established. Honourable members are fully aware that the difficulties in the way of providing funds during the financial year ended the 31st March, 1913, were serious. The money-market at Home was not favourable for borrowing, especially in view of the heavy redemption loans which were in prospect, and, owing to the stringency in New Zealand, it was practically impossible for the Post Office Savings-bank to provide money for lending purposes. The following table will show the financial position of the three branches as at the 31st March, 1912, 1913, and 1914 :— Summary Showing State op Branches. Commitments. 31st March, 31st March, 31st March, 1912. 1913. 1914. £ £ £ Advances to Settlers .. .. .. 158,685 132,260 230,675 Advances to Workers .. .. .. 557,823 62,849 187,000 Advances to Local Authorities . .. 821,515 676,905 262,225 £1,538,023 £872,014 £679,900 Funds. ■ Advances to Settlers .. .. .. 519,401 611,790 . 795,644 Advances to Workers .. .. .. 1,215 187,565 283,184 Advances to Local Authorities .. .. 163,643 410,031 555,474 £684,259 £1,209,386 £1,634,302 LOCAL BODIES' LOANS ACT. Amending legislation will be introduced this session extending the purposes for which loans may be authorized by the Advances Board. POST AND TELEGRAPH DEPARTMENT. The volume of business done by the Post and Telegraph Department again shows a steady and satisfactory increase, the revenue received during the year amounted to £1,257,537, exceeding that of the previous year by £89,560. The revenue derived from the sale of postage-stamps advanced by nearly £48,000, some portion of which must be ascribed to the increase in parcel-post business due to the substantial reduction in the rates made on the Ist January, 1913. The Savings-bank deposits during the year reached a total of £11,286,702, and the withdrawals £11,041,454, while the amount standing at the credit of depositors was £17,131,414, an increase of £801,156 over the previous year. The increasing excess of deposits over withdrawals during the past few months of the year points to a general improvement in the financial position of all classes of the community. The money-order and postal-note business continues to show a steady increase, the total value of issues and sales respectively during the year reaching considerably over £4,000,000. The increase in past years in the number of telephone-exchange subscribers has been more than maintained, and this increase, coupled with the demand for