Enclosure No.1.
222
I rise to move the resolution standing in my name.
A detailed exposition of the financial position 1939,
1940-41 and the estimates for 941-42 is contained in the
memorandum already in the hands of Honourable Members.
We
Let me first summarise that financial position.
closed the year 1939 and entered the year 1940 with a general
reserve balance of $17,091,170, a handsome sum, but largely a
nominal one. Most of the money had already been expended as
advances in anticipation of loans, It was to improve the
liquid position that Government in June last floated the second
tranche of the 1934 Dollar Loan of which Government itself took
up $5,790,000 and obtained cash to the extent of $5,640,000.
That reserve of $17,000,000, it is hoped, will not be appreciably
diminished at the end of the current 15 months; in fact the
memorandum, perhaps a little optimistically, anticipates a small
increase. But it must be remembered that of the 17 million
dollars with which we hope to commence the naxt financial year
the $5,790,000 already referred to has only a paper existence
and represents an accounting expcdient to moet past expenditure
from future revenuo, while by the end of next year a total of
over 4 million dollars will have been advanced in anticipation
of a future loan. The real reserve is, therefore, considerably
short of the desiderated 10 million dollars, which sum is based
on past figures of revenue and expenditure and is inadequate in present circumstances, being less than 2 months contemplated
expenditure for next year. I have dealt with this matter of
reserves at the outset to anticipate, and I hope prevent, any
suggestion that we have an adequate hump on which we can draw