H.—26.

Investment of the Fund. —The total investments of the fund at each rate of interest were as I» n »T , follow :— |; r Inscribed stock — £ s. d. 4 per cent. .. .. .. .. .. .. 498,110 0 0 Rural Advances bonds— 5 per cent.* .. .. .. .. .. .. 236,155 10 0 Rural intermediate credit bonds— 5J per cent.* .. .. .. .. .. .. 29,000 0 0 Debenture securities —■ £ a. d. 4J per cent. .. .. .. .. 276,011 2 9 5 per cent.f .. .. .. .. 12,560 0 0 5J per cent.f ■ • • ■ • • • • 6,240 0 0 5J per cent.f .. .. .. .. 2,000 0 0 6 per cent.f ~ .. .. .. 187,827 5 5 484,638 8 2 Mortgage securities — 4| per cent. .. .. .. .. 75,570 0 0 5 per cent. .. .. .. .. 37,062 411 s|-per cent.f .. .. .. .. 5,059 0 9 6 per cent.f . . .. . . . . 1,347,995 6 0 6J per cent.f .. .. .. .. 6,643 9 8 1,472,330 1 4 £2,720,233 19 6

* Subject to an interest-tax at the rate of 20 per cent, charged on all interest on and from Ist April, 1933. Vide section 6, Finance Act, 1932-33. f Interest on and from Ist April, 1933, 20 per cent, lower than the rate prescribed by the securities or to the rate of 4J per cent, per annum, whichever rate is the higher. Section 5, Local Authorities Interest Reduction and Loans Conversion Act, 1932-33. % Subject to a reduction of 20 per cent., but not to be reduced below the rate of 5 per cent, per annum. Part 111, National Expenditure Adjustment Act, 1932.

A special payment into the fund was made by Treasury (amounting to £30,420), being the amount of the reduction in the interest-rate of the four classes of securities. The above total includes £20,849 18s. 7d. invested on Stipendiary Magistrates' account. The average rate of interest earned for the financial year on the mean funds was £5 Bs. 4d. per cent., a reduction of 3s. 2d. per cent, as compared with the previous year. In this connection it must be understood that the amount of interest due and outstanding and interest accrued but not due at the balance date is taken into account in arriving at the before-mentioned rate. Reference to the balance-sheet discloses the sum of £47,173 lis. 9d. is overdue on mortgage securities. The Courts, acting under the powers contained in the Mortgagors and Tenants Relief Act, 1933, have written off during the year the sum of £6,848 4s. 9d., being arrears of interest; in addition, the rate of interest has been reduced from 5 per cent, to as low as 2 per cent, in a number of cases for periods varying from one to three years. Operations of the Fund. —The following comparative statement shows the operations of the fund (to the nearest pound) as disclosed in the Revenue Accounts and balance-sheets for the ten-year period ended 31st March, 1935.

R. Masters, Chairman.

3

Income. Expenditure. Contributions. Interest on Year ' Arrears o7 Miscel " Hpfmuls Pensions < A tSion" Miscel- AccumuBmployees. Employer. *'"35" Oontribu- laneous - Expenses. laneoIls - lated Funds. menus. Hons. £ £ £ ££££ ££ £ 1925-26 .. 257,378 102,436 132,993 3,805 277 53,362 316,400 6,920 185 2,317,399 1926-27 .. 246,635 100,669 139,369 899 328 45,341 322,759 7,881 28 2,429,290 1927-28 .. 249,301 100,955 146,351 439 504 50,193 338,138 7,932 2,124 2,528,454 1928-29 .. 253,593 101,130 147,040 332 269 44,234 351,396 8,070 1,176 2,625.943 1929-30 .. 263,424 201,707 154,612 146 405 50,107 367,490 8,158 2,472 2,818,004 1930-31 .. 271,423 102,289 162,888 264 422 40,754 381,243 8,418 8,775 2,917,154 1931-32 .. 190,347 102,757 168,453 238 486 48,552 431,922 8,650 2,277 2,888,034 1932-33 .. 226,420 141,038 166,814 447 302 45,345 472,288 7,620 387 2,897,415 1933-34 .. 228,650 144,129 157,200 651 4,464 37,551 486,925 7,180 1,287 2,899,564 1934-35 .. 238,844 149,766 153,333 185 19,086* 40,065 488,836 7,429 6,997 2,917,452 Liabilities. Assets. Sundry Creditors. Sundry Debtors. „ Other, Investments SfStth" v ear - Accumu- including (including riwm Oash at Miscellated Fund. Pen- lie- Em- Govern- Accrued Em- Em- ".L" Bank. laneous. sions. funds, ployees. ment Interest). ployees. ployers. ' 555 "r! Depart- paramenia. menfs. £ £ £ £ £ £ £ £ £ ££ 1925-26 .. 2,317,399 2,276 3,162 3,286 1,002 2,339,705 5,763 109 34,421 11,320 307 1926-27 .. 2,429,290 3,059 922 1,587 22,075 2,474,867 20,942 241 23,103 1,691 589 1927-28 .. 2,528,454 3,526 1,983 1,903 19,072 2,577,894 21,305 215 12,253 5,195 2,576 1928-29 .. 2,625,943 3,825 943 2,232 14,739 2,678,470 18,118 255 10,881 4,062 398 1929-30 .. 2,818,004 4,323 1,340 676 17,012 2,862,747 17,267 126 25,067 1,457 246 1930-31 .. 2,917,154 4,097 1,735 517 14,178 2,974,146. 14,391 277 12,074 1,004 288 1931-32 .. 2,888,034 3,566 1,617 4,725 54,472 2,979,354 16,101 243 20,406 326 483 1932-33 .. 2,897,415 3,056 1,444 398 14,853 2,892,282 24,541 212 61,510 652 2,469 1933-34 .. 2,899,564 . 2,684 1,692 212 3,386 2,882,531 29,191 231 56,922 1,018 2,147 1934-35 .. 2,917,452 3,302 904 288 10,803 2,777,030 13,957 198 73,625 130,378 2,062