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to the farming community generally. During the year the new money advanced to borrowers was £3,180,533, of which £1,880,978 was advanced on mortgage of freehold lands—chiefly country properties—and £791,287 was lent to local bodies for the carrying-out of works of public utility. The balance of the total amount advanced was invested in securities of a miscellaneous nature, such as Government debentures, &c. 6. The total amount of funds invested at the 31st March, 1925, was £22,106,190, including £14,255,120 advanced to private borrowers and £5,832,542 lent to public bodies. 7. Large as is the present business of the Office, there is abundant evidence that it will be still further increased in the near future. The liberal policy which has been pursued by the Office in making concessions to clients by way of reduction of fees, and the providing of additional services without charge, has resulted in attracting a large amount of prospective business in the form of wills held on deposit on behalf of living testators. The growth in this department of the Office work has been remarkable. The number of wills held for safe custody on the 31st March last was 44,102, the new wills deposited during the year having amounted to 4,420. At the present time new wills are being received for deposit at the rate of from four hundred to five hundred per month, and in addition it is known that many wills in which the Public Trustee is nominated as executor are held by banks and solicitors. It is therefore evident that within the next few years a large amount of lucrative business must come to the Office for administration. One feature which has added to the popularity of the Office and has been a factor in the large growth of the wills-for-deposit business is the provision which was incorporated in the Public Trust Office Amendment Act, 1913, permitting of the appointment of advisory trustees to co-operate with the Public Trustee in the administration of an estate. This provision has been largely availed of by farmers and by business men who have desired to obtain the benefit of administration by the Public Trustee, but who have at the same time wished to associate with him in the management of the estate a person possessing intimate knowledge of its details, such as a business or farming associate, family solicitor, or banker. 8. I desire to draw special attention to the reply of the Public Trustee to certain criticism which has been levelled against the Common Fund of the Public Trust Office. Much of the criticism has been based on misconception of the true nature of the fund, and the Public Trustee's statement is a vindication of the principles on which the fund is established, and a demonstration of the security which it has afforded to estates during the recent difficult times through which the country has been passing. 9. The principle of State trusteeship for the administration of estates continues to attract attention in many countries. During the year just closed several inquiries have been received by the Public Trustee, who has in each case furnished full and detailed information on the constitution and work of the New Zealand Public Trust Office. Amongst the inquiries was one from the Federated Malay States, where a Public Trust enactment has been in force for some years. The value of the principle is being demonstrated by the constant and steady progress which is being made in countries where Public Trustees have been appointed. In particular the Public Trust Office in England shows constant growth in the number and value of trusts committed to the charge of the Public Trustee. His report for the year ended 31st March, 1924, shows that in that year the aggregate value of new business amounted to £15,463,118, and that the total value of assets under administration at the end of the year reached a sum of £175,760,000, apart from large quantities of settled land which had not been valued. 10. As evidence of the wide spread of information regarding the Public Trust Office of New Zealand, it is interesting to note that during the year just closed an inquiry was received from a gentleman residing in Kirin, Manchuria, China, who desired the Public Trustee to undertake some agency work in New Zealand on his behalf. The inquiry resulted from the receipt by the person interested of a copy of the Public Trust Office handbook giving particulars of the work performed by the Public Trustee.

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