CO129-550-1 Estimates 1935 14-9-1934 - 15-9-1934 — Page 58

COPY.

Enclosure No.2.

65

Colonial Treasurer:

The resolutions standing in my name are in connection

with approved loan works.

It will be recollected that before the issue of

31% Bonds in July, 1934, and in anticipation of such borrow- ing the financing of the loan works was done out of surplus balances. At the end of June, 1934, $8,422,267.62 had been advanced. Between that date and 31st December $5,654,799.68 was spent leaving $217,067.30 overdrawn on loan account and this has been met from surplus balances pending further borrowing. Your approval of this is, therefore, requested.

During 1935 further sums must be advanced and as

our cash resources will at the moment allow of this form of economical finance I am asking for authority to utilise part of this surplus in this manner and so save interest charges.

Reference to Appendix VI p. 117 of the 1935 Estimates will shew that the expenditure on loan works during 1935 is estimated at $4,727,680 and of this amount $456,148.-- (not including Crown Agents charges) was expended at the end of February. I am now asking for $2,000,000.-- out of surplus balances to carry on for the first six months of this year when the position will be again reviewed as to whether further borrowing will be necessary or not.

It will be remembered that Ordinance 11 of 1934, 33706 authorises the Governor to borrow up to a sum not exceeding

twenty-five million dollars.

I now move

1. That this Council approves of the sum of $217,067.30

2.

on account of loan works being met from surplus balances during the financial year 1934 pending

the issue of a further loan.

That this Council approves of the sum of $2,000,000.--

on account of loan works being met from surplus

balances during the financial year 1935 pending

the issue of a further loan.