XLIII

8.—6

The following arc the particulars : — 31 per cent. £1,000,000 due Ist March, 1928, or Ist March, 1925, or after on giving six months' notice. 4| „ £7,414,141 due Ist December, 1945, or Ist December, 1925, or after on giving six months' notice. 5 „ £11,100,000 due Ist June, 1947, or Ist June, 1929, or after on ' giving six months' notice. 5| „ £9,900,000 due Ist September, 1928. 3| ~ £168,421 Memorandum of security. 5 „ £40,511 £29,623,073 The question of placing the debt on an improved basis has engaged my attention for some time past, and I am now pleased to announce that an arrangement satisfactory to New Zealand has been made. It has been decided to fund £27,532,164 on a 6-per-cent. annuity basis, which will heave the effect of automatically discharging this sum from the public debt of New Zealand in about thirty-seven years; this leaves aside £2,090,90!) State Advances debt redemption as that office has its own provision for sinking fund. The conditions include the concession that the whole or part of the funded debt may be redeemed at any time, thus enabling advantage to be taken of any future reduction in interest rates. This transaction will relieve the annual permanent charges by £53,000, and there is the further advantage that the portion of the accumulated sinking funds relating to this debt now vested in the Public Trustee under the Finance Act, 1918 (No. 2), will be available for reduction of the public debt. LOANS FALLING DUE. The loans falling due during the seven years ending with the year 1929 are as follow :—

In connection with the large amount which matures during the current year I am pleased to state that I have been able to make satisfactory arrangements for redemption or renewal without materially increasing the annual charge for interest. TRUSTEE INVESTMENT IN GOVERNMENT SECURITIES. It has been represented that the legislation of certain Australian States does not permit of investment of trust funds in New Zealand Government securities, whilst, on the other hand, the New Zealand Trustee Act legalizes investments by New Zealand trustees in Commonwealth or Australian State stocks. lam therefore endeavouring to obtain reciprocal arrangements which should assist in maintaining the balance between the Commonwealth and the Dominion, whose financial interests are closely related.

Year ending 31st March, London. Australia. New Zealand. Total. 1923 1.924 1925 1926 1927 1928 1929 £ 55,300 1,747,200 338,100 £ 639,450 3,300 12,200 £ 8,207,606 7,798,365 11,210,247 15,494,557 3,606,220 2,578,260 3,025,310 £ 8,902,356 9,548,865 11,560,547 15,494,557 4,342,520 3,678,260 12,925,310 1,000 1,000,000 9,900,000 735,300 100,000 13,041,600 1,490,250 51,920,565 66,452,415