8.—9

30

As the shareholdings of the Public Trustee are so large it is not out of place to make in this report some reference to the share-market and the conditions which in his extensive dealings he has found to exist during the past year. The financial conditions have on the whole been fairly satisfactory. The high prices which obtained for primary products for the two or three preceding years had restored the balance of trade, and the share-market received attention from investors. Unfortunately, the improved conditions did not continue throughout the year. As has been pointed out elsewhere in this report, the prices of primary products have now fallen very considerably, and the balance of trade for the past year has been adversely affected. It is felt that new financial difficulties will present themselves duringfthe coming winter, and the share-market will react in sympathy with the changed conditions. The changing financial barometer is carefully watched, and every endeavour is made to enable estates to secure the greatest gain from the realization or retention of investments. As has been mentioned on previous occasions, the Public Trustee has the benefit of the services of the Financial Adviser, whose expert advice is available in considering dealings in shares as well as general financial and commercial matters. Intestate Estates. 44. With the advance of knowledge on the subject there is not the same reluctance to make wills as formerly existed. As a consequence the number of persons dying intestate is gradually decreasing. There seems to be a widespread idea that when a person dies intestate the Public Trustee or the Crown takes one-third of the estate before any distribution is made to the next-of-kin. This erroneous opinion is so frequently encountered that I deem it advisable to refer to it in this report. There is no justification whatsoever for it, for no more is charged by the Public Trustee for the administration of an intestate estate and no more death duties are payable to the Crown than if the intestate had made a will disposing of his estate in the manner in which it devolves under the law governing the distribution of intestate estates. Of course, where a person dies intestate and no next-of-kin can be traced, then the balance of the estate goes to the Crown as bona vacantia. Keference has been made earlier in this report to the important changes which have recently been made in the law of England as to the distribution of intestate estates. Mental Patient Estates. 45. The estates of persons committed to mental hospitals in New Zealand are by statute placed in the Public Trust Office in cases where no committee is appointed by the Supreme Court. Where a private committee is appointed he is obliged to render to the Public Trustee an annual statement of account of his administration. During the past year 346 mental patient estates, valued at £406,444, were reported for administration. Aged and Infirm Persons Protection Act. 46. The provisions of the Aged and Infirm Persons Protection Act are still being largely availed of in suitable circumstances, and in a number of cases the Public Trustee has been appointed manager. The special provisions of the Act have been dealt with in previous reports, and during the past year nothing of special interest has arisen in connection with the administration of these estates. Agencies. 47. The Public Trustee is empowered to act as attorney or agent. Persons resident in New Zealand or elsewhere who by reason of health, absence from the Dominion, or other causes are unable to conduct the management of their affairs are thus enabled to entrust them to the Public Trustee. As I have pointed out on previous occasions, agency work is steadily increasing. In a number of cases the Public Trustee has acted as agent for wealthy principals for very long periods.