8.—9,

7. An essential to the working of the Common Fund system is the investment in safe securities of the moneys forming the fund, so that the yield for the estates and funds whose moneys are invested in it may be as high as monetary conditions permit and is consistent with the security of investment required in respect of trust funds. Obviously the supervision of securities and the conduct of the Common Fund operations necessitate very close attention indeed during the present period of depression, and the work involved has increased in volume by reason of applications for postponement of payment of interest or repayments of principal. I have just made reference to the considerations which must weigh with the Public Trustee in dealing with such applications ; subject to these, the endeavour of the Public Trustee is to meet mortgagors wherever possible, and substantial relief has been afforded by the suspension of principal repayments and the postponement of interest-payments on satisfactory arrangements being made by the mortgagors. 8. By reason of the abnormal economic conditions prevailing the favourable realization of estate assets and the collection of instalments of principal from mortgage investments made on the amortization plan have been difficult. Consequently the flow of moneys into the Office has been diminished, and the volume of investments made by the Public Trustee has not been as great as during recent years. None the less, new loans to the very substantial total of £3,519,340 were completed during the year, and, in addition, renewals of existing loans totalling £1,953,962 were granted. This volume of investment will indicate the magnitude of the work involved and the extent of the financial accommodation which the Department affords throughout the Dominion. 9. On a previous occasion the Public Trustee has drawn attention to the fact that there is an increasing tendency on the part of private investors and trustees to retire from the field of private investments, more particularly mortgages on the security of farming-lands, leaving investments of this nature to those organizations which have the machinery to obtain an adequate flow of applications and to supervise the investments when made. This in itself is another indication of the value to estates of the Common Fund system of investments, in that, as I have said, beneficiaries and investors whose estates or moneys are invested in the Common Fund do not have to concern themselves with individual mortgages. 10. Prompt steps were taken by the Government to deal with the many problems arising out of the Hawke's Bay earthquake disaster, and the Public Trustee has from the commencement been closely associated with the administration of the Earthquake Belief Fund and with the carrying-out of the relief work in Hawke's Bay. 11. Immediately after the earthquake representatives of the Government visited the affected area to ensure that proper provision was made for the immediate requirements of sufferers, and as a first step Government funds amounting to over £3,000 were made available for this purpose. Members of the Cabinet visited all parts of the district in order to acquaint themselves personally with the special needs arising out of the disaster. A general desire to assist personal distress caused by the earthquake having been manifested, a public fund for the relief of sufferers was opened in the Prime Minister's name, and a generous response was made instantly and has continued up to the present. A central committee in Wellington, with the Prime Minister as chairman and the Public 'Trustee as executive officer, was set up to administer the fund, and in turn this committee set up local relief committees throughout the earthquake area to attend to the detail work in regard to relief there. The relief funds contributed are being applied towards the relief of distress, the provision of'food and clothing, the making-good of personal losses, and the restoration of private dwellings damaged by the earthquake. The rehabilitation of the residential areas is proceeding rapidly, and, as a result of the expeditious and practical assistance given, almost all of the residents of the area have returned to their homes. x .12:-Although the relief funds contributed are at call, the Public Trustee is crediting interest at : sj per cent.; resultingm astrbstantial increment tothe amount; available for-'relief. Further practical assistance given by him has been the provision, without charge, of a competent and experienced staff to administer the fund upon the general lines laid down by the central committee. 13. While on the subject of earthquake relief measures I think it is fitting to make a brief reference to the services which, at the direction of Government, were rendered to earthquake sufferers and residents of the area by various Departments of State. The instant aid rendered by the Navy was of inestimable value. The

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