B.—IB.

administered by the various branch offices will, subject to repayments and new loans granted in the interim, be as follows : —

Accounts, 1938-39. The Revenue Accounts and Balance-sheet which are appended supply details of the Profit and Loss Account and assets and liabilities respectively as at the close of the financial year. Although these statements are to a large extent selfexplanatory, the following comments will assist in a comparison with the figures for the previous year.

Interest due and received:—

Notes. —(a) The figures for the years 1933-34 and 1934-35 relate to State Advances Office loans only, the Corporation having been established on Ist August, 1935. (b) The year 1936-37 was the first complete financial year of the Corporation's management, and during that period the reduction in the interest-rate was effective for a proportion of the accounts. (c) In 1937-38 further accounts were adjusted to the lower rate of interest, and the interest on discharged soldiers settlement loans (representing an investment of approximately £11,000,000) was included for a full year for the first time. (id) Figures under " Interest received " include both current interest and payments on account of arrears. The progress and improvement in the percentage of interest received is satisfactory, and in the absence of any major setback in the income of mortgagors of the Corporation, who are, of course, spread over all phases of the population of the Dominion, it is hoped that the present favourable position of the Corporation's collections will be maintained. Revenue Accounts. —The gross revenue for the year from all sources was £2,393,177, compared with £2,433,100 for 1937-38, and shows a reduction of £39,923, due principally to the reduced rate of interest now payable on a large number of existing mortgages which have been adjusted either in terms of orders under the Mortgagors and Lessees Rehabilitation Act or of section 39 of the State Advances Corporation Act. It is probable that these features will also have some further bearing on this account during the ensuing year. There is an increase of £37,133 in the interest paid on the Corporation's stock and debentures, which is accounted for by the issue of additional securities during the period. As a result of these variations in the gross receipts and payments of interest the amount available for transfer to Profit and Loss Account —viz., £819,071 —is £81,227 less than the gross income for 1937-38.

7

Farm. Residential. Total. District. Number. Amount. Number. Amount. Number. Amount. £ £ £ Auckland .. .. .. 4,428 4,086,425 10,977 5,587,306 15,405 9,673,731 Hamilton .. .. .. 4,736 6,561,466 4,083 2,839,701 8,819 9,401,167 Napier .. .. .. 1,479 1,754,720 3,011 1,409,865 4,490 3,164,585 New Plymouth .. .. 2,571 3,081,080 2,529 1,162,774 5,100 4,243 854 Wellington .. .. 2,376 3,047,642 12,573 8,613,658 14,949 11,661,300 Nelson .. .. .. 1,646 1,410,754 1,992 841,582 3,638 2,252,336 Christchurcli .. .. 2,453 2,697,455 7,493 3,749.861 9,946 6,447,316 Dunedin .. .. .. 1,090 1,176,817 1,634 809,096 2,724 1,985,913 Invercargill .. .. 1,750 2,312,570 983 477,909 2,733 2,790,479 Total L1 22,529 26,128,929 45,275 25,491,752 67,804 51,620,681

V J j ai + m v. Net Interest Interest 0 , . Percentage of Year ended 31st March, received Shortage. Receipts to Net Interest due. £ £ £ Per Cent. 1934 .. .. 1,96627 1,562,707 403,420 79-48 1935 .. .. 1,91311 1,711,446 202,165 89-43 1937 .. .. 1,733,047 1,665,559 67,488 96-11 1938 .. .. 2,404,385 2,348,385 56,000 96-67 1939 .. .. 2,167,024 2,152,024 15,000 99-31