8.—9

(5.) The fund is always " liquid," so that on the maturity of a loan the necessity of realizing investments on an unfavourable market cannot arise. Further, no loss of interest can occur as a result of realizing investments before the maturity date of the loan in order to have the moneys available for the redemption of debentures. (6.) Instalments may be paid anywhere in New Zealand free of exchange, and no deductions of any kind are made from either principal or interest. 24. Besides the funds mentioned above, on the 31st March the Public Trustee held the sum of £7,966,689 on behalf of twelve (Government sinking funds. Miscellaneous Accounts and Funds. 25. The sum of £158,132 was held on the 31st March, 1925, on behalf of miscellaneous accounts and funds. The whole of the amount was invested in the Common Fund. Following are details : — New Zealand Sheepowners' Acknowledgment of Debt to £ British Seamen Fund . . . . .. . . 53, 834 Sundry deposit accounts .. . . . . . . 21,192 Proceeds of mortgages discharged under section 75 of the Property Law Act, 1908, and under section 117 of the Land Transfer Act, 1915 .. . . 4,123 Unclaimed moneys (held pending expiry of statutory period before being transferred to Consolidated Fund) . . .. . . . . . . 54,137 Government Fire Insurance Fund .. .. .. 24,846 £158,132 A large amount of the cash held at the beginning of the financial year on behalf of the New Zealand Sheepowners' Acknowledgment of Debt to British Seamen Fund was paid over at the order of the trustees in connection with the purchase of Flock House. Had the funds not been liquid, difficulties might have been experienced by the trustees in financing the purchase. Being invested in the Common Fund, the moneys were available immediately they were required, and earned full interest to the date they were disbursed. Unclaimed Lands. 26. Funds held by the Public Trustee on the 31st March, 1925, in connection with the administration of unclaimed lands under Part IV of the Public Trust Office Act, 1908, amounted to £1,348. Unclaimed Property. 27. The sum of £9,242 was also held by the Public Trustee on the 31st March, 1925, in connection with the administration, under Part 111 of the Public Trust Office Act, 1908, of unclaimed property. Trustee for Debenture-holders. 28. A capacity in which the Public Trustee has been called upon to accept appointment within the past few years is that of trustee for debenture-holders. The duties of the Public Trustee are in each case fully set out in the deed of trust under which he is appointed. Generally speaking, full provision is made for the Public Trustee to enter in upon the security on default in payment of interest or of instalments of principal, in order to protect the interests of the lenders. On the 31st March, 1925, there were thirty-five of such trusts in the Office. The total nominal value of the debentures which were subject to tliose trusts was £763,248.

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