8.—6

XXXI

FINANCIAL RESPONSIBILITIES. To BE PROVIDED BY LOANS. The following table indicates generally the loan-moneys required during the twelve months commencing Ist September, 1919, also the unexhausted authorities for borrowing already provided, or to be provided this session, the cash balances available at that date, and the sources from which it will be necessary to secure the loans.

In addition to the above new requirements the Treasury will also have to raise money to carry on the development-works and other State activities now in progress throughout the Dominion. Accumulated Surplus. It is not, in my opinion, wise to raise the £12,500,000 required for discharged soldiers settlement by public subscription in New Zealand, nor is it feasible to float a loan for the purpose outside New Zealand. I purpose, therefore, to provide this amount from the accumulated surplus, which it is hoped will be restored to the full amount, £15,239,561, by the 31st March, 1920, leaving a balance after making this provision of accumulated surplus £2,739,561. The Reserve Fund securities, which at present amount to £800,000, have proved of great assistance during the war-time, and it is, in my opinion, advisable to strengthen these securities by utilizing £1,200,000 of the remaining accumulated surplus in order to bring the total Reserve Fund securities up to £2,000,000.

For Y. iar ending 31st August, 1920. Requirements. Yields Interest to Amount. Cash in Unexhausted Hand and Authority, &c., and New Imprest, 1st Authority. September, 1919. Cash in Source of Hand and Supply. Imprest, 1st September, recoup Consolidated Fund. For cost N.Z. Expeditionary Force and treatment of sick and wounded, repatriation, &c. 1919. £ 8,775,000 £ £ 7,914,788* From the public in New Zealand No. Gratuities and allowances Discharged soldiers settlement 6,050,000 12,500,000 Finance Acts (191.8), 7,914,788* £15,695,215, of I which £10,000,000 is now being raised in New Zealand Discharged Sol- 1,420,860 d i e r s Settlement Loans Act, 1919, £11,079,140 Discharged Sol- Nil d i e r s Settlement Loans Act, 1919, £2,000,000 1,420,860 1,420,860 Surplus revenue (see paragraph following) Nil From the public in New Zealand Yes. Land for settlements on account of soldiers 2,000,000 Nil Yes. Total for soldiers .. 29,325,000 Public works Education buildings, &c. 500,000 500,000 £2,090,000 435,689 To be provided 1919 Nil (£500,000 for current year and £750,000 for subsequent years) 435,689 From the public in New Zealand Nil From the public in New Zealand 435,689 Nil No. No. Total £30,325,000 * A considerable portio: iers have not yet reached the Tr of this has alrci ,dy been spent, but vouol ■easury.