8.—6.

Loans paid off during the year: — By transfers of cash from— £ Ordinary Revenue Account .. .. 1,359,849 Discharged Soldiers Settlement Account .. 4,100 Land for Settlements Account .. .. 150,800 State Advances Office .. .. .. 300,008 War Expenses Account .. .. .. 7,296 Total payments by transfer of cash .. 1,822,053 By sinking funds released and proceeds H.M.S. "New Zealand" .. .. .. 859,544 By loans raised in 1923-24 for redemptions in 1924-25 .. .. .. .. 46,590 Redemption of Treasury Bills issued in anticipation of loan from Public Works Loan proceeds .. .. .. .. 500,000 Discount on securities redeemed below par .. 21,779 £3,249,966 Net increase as shown by above figures .. 6,198,286 Add gross debt at 31st March, 1924 .. .. 221,616,361 Gross debt at 31st March, 1925 .. £227,814,647 In addition to the above transactions, securities to the amount of £10,022,517 were renewed, £400,550 converted, and £2,929,042 debentures and inscribed stock and £8,400,000 Treasury bills were redeemed, infeach case by the issue of new securities of an equal face value. The gross debt at the 31st March, 1925, was held as under . . „ Amount. Gross Annual Charge. Where held. £ £ New Zealand .. .. 104,043,959 4,563,370 Australia .. .. .. 2,952,200 129,483 London .. .. .. 120,818,488 5,299,101 £227,814,647 9,991,954 Annual sinking funds .. .. .. .. 740,860 Repayment of funded debt .. .. .. 333,289 Total gross charge .. .. .. .. 11,066,103 Estimated recoveries from trading and other accounts 2,240,617 Net annual charge at 31st March, 1925 .. £8,825,486 The assets of the Dominion, as shown in table No. 17 attached to this Statement, have appreciated considerably, and largely reflect the increase in debt. Although in some quarters the increase in the debt is viewed with misgivings, I see no reason for doubt as to the ability of the country to carry the liability so long as the policy followed by the Government of devoting borrowed money to the creation of good assets of a reproductive and interest-bearing nature is continued, and provided our rate of development on these lines is not ahead of the power of the community to make profitable use of the capital so raised. FUNDED DEBT. Payments amounting to £1,851,930 were made in 1924-25 in respect of £27,532,164, loans advanced by the Imperial Government, which were funded in terms of the agreement dated 6th September, 1922.

Funded debt.

18