C—9a

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(c.) Financial adjustments : It would be advisable to bring down legislation to stabilize and adjust the various accounts affected by the proposals, and it is considered that remissions and reductions in value, where necessary, should be met by an annual charge on the Consolidated Fund extending over a period of ten or twenty years, with interest compounded at the rate of 4 per cent, per annum. Where, however, capital has been provided out of Consolidated Fund surpluses, future adjustments in interest and rent should automatically follow a reduction in the capital liability of the several funds to the Consolidated Fund. (2.) That the regulations be amended to provide for the following, viz. : — (a.) The extension of financial assistance on current account. (b.) The extension of financial assistance regarding second mortgages. (3.) That action be taken under existing authorities for the following, viz. : — (a.) Postponements and remissions of rents under section 7 of the Discharged Soldiers Settlement Act, 1915. (_.) Postponements of instalments to the end of the term of the mortgage under section 16 of the Discharged Soldiers Settlement Amendment Act, 1917. I have, &c, J. B. Thompson, The Hon. Minister of Lands, Wellington. Under-Secretary for Lands. (Enclosures: Sohedule and Appendix.)