8.—6

XXVII

Advances made by Treasury: Schedule I. £ Mining .. .. .. .. .. .. .. .. .. 46,481 Kauri-gum .. .. .. .. .. .. .. .. .. 75,000 Loans to employers for workers' dwellings .. .. .. .. .. 3,620 Loans to local bodies (annual interest receivable £85,000, capitalized at 4 per cent.) .. 2,125,000 Samoa (loan) .. .. .. .. .. .. .. .. 95,000 Repatriation (advances outstanding 31st March, 1924) .. .. .. .. 579,674 Discharged soldiers settlement— £ Balance on mortgage .. .. .. .. .. .. 17,805,900 Securities acquired by the Crown and in course of realization .. .. 1,234,000 19,039,900 £21,964,675 Investments of Qash Balances of Public Account, : Schedule 11. £ Ordinary Revenue Account .. .. .. .. .. .. .. 3,074,337 State Forests Account .. .. .. .. .. .. .. 144,700 State Coal-mines Account .. .. .. .. .. .. .. 20,000 Public Works Fund (General Purposes Account) .. ... .. .. .. 150,000 Railways Improvement Authorization Act 1914 Account .. .. .. .. 821,000 Electric-supply Account .. .. .. .. .. .. .. 1,053,008 Cheviot Estate Account .. .. .. .. .. .. .. 202,640 General Purposes Relief Account .. .. .. .. .. .. 23,500 Education Loans Account .. .. .. .. .. .. .. 41,100 War Expenses Account .. .. .. .. .. .. .. 87,760 Land Assurance Fund Account .. .. .. .. .. .. 73,890 Main Highways Account Revenue Fund .. .. .. .. .. 237,000 Land for Settlements Account .. .. .. .. .. .. 100,000 National Endowment Account .. .. .. .. .. .. 75,000 National Endowment Trust Account .. .. .. .. .. .. 7,000 Discharged Soldiers Settlement Account .. .. .. .. ~ 68,500 Discharged Soldiers Settlement Loans Act 1920 Depreciation Fund Account . . 211,250 Nauru and Ocean Islands Account .. .. .. .. .. .. 40,000 £6,430,685 PUBLIC-DEBT EXTINCTION. The cost of the public debt is an outstanding problem in every country, especially in those that have war debts, the charges and repayment of which must be met out of revenue. A reduction in the charges of the debt lightens the annual burden and should be coincident with a reduction in taxation. In Great Britain since the Armistice there have been some very substantial surpluses—viz., £45,700,000 in 1921-22, £101,500,000 in 1922-23, and £48,000,000 in 1923-24. The British Government has steadily adhered to the application of surpluses for debt-reduction. New Zealand being in process of development and therefore a borrowing country, the Government thought it better to use the surpluses for revenue-earning purposes in the way of development rather than for reduction of debt. It is intended to proceed with the Public Debt Extinction Bill introduced last session, but which was, in view of the great importance of the proposals it contained, held over to afford honourable members ample opportunity to make themselves thoroughly familiar with its provisions. The Bill proposes to substitute a regular and definite programme for reducing the public debt, instead of continuing to pile up an asset of funds which is not readily available, and which eventually may occasion financial embarrassment. The safe-keeping of the accrued sinking funds is adequately provided for. They will be preserved intact, but the interest they earn is to be added to other funds available for public-debt reduction, and will be applied annually to that purpose and no other. There is nothing in the Bill which will prevent the continued application of surplus revenue to debt-reduction purposes for which provision was made in section 24 of the Finance Act of 1921-22. •" ' ; v ;