CO129-557-5 Estimates 1937 19-8-1936 - 7-8-1937 — Page 55

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The only other income of the Home is the interest on £12,000 4% Funding Loan, which can be looked upon to produce about $7,500 per annum, which reduces the net deficit to about $42,500 per annum.

To realise how the finances of the Home have come to such a plight, I think facts must be looked at squarely and we can only come to the following conclusions.

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First of all, contributions from Sharp's Estate which had been for some years between $80,000 and $90,000 per annum suddenly fell to the present level owing to reduced rates of interest current in

current in the Colony since 1930 when money was poured into it.

The actual amount spent on the building of the Home was at

least $2/300,000 more than was originally intended, owing to the decline in exchange in 1930, and consequently the Home had less surplus cash for investment.

It will be seen, therefore, that owing to circumstances beyond our control the income we expected to receive was seriously depleted, while expenses, due to low exchange, have risen above the figure at which it was estimated the Home could be carried on.

It could reasonably be expected that patients should pay an increased fee to meet at least a portion of the increased expense, but as a practical proposition we fear that this cannot be applied; neither do we wish to put an increased burden on sick people.

The Committee of Management, therefore, have come to the conclusion that it is essential the Home be endowed with sufficient income to make up the deficit, and maintain the skilled nursing at the present low price to patients for the lasting benefit of the Colony.

The Government has been approached and it is hoped they will make an annual contribution of $15,000 to the Home provided it can raise the balance of $25,000 per annum from other sources.

The Committee feel that this should be capable of accom- plishment and therefore suggest an endowment fund of not less than $500,000 should be raised which at 5% would give the required

income.

It is realised that the sum required is somewhat large in these days of depression, but, as the Home has enough actual cash