CO129-576-10 Estimates 1940 6-10-1939 - 22-10-1940 — Page 14

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of which are the Note Security Fund ($5,480, 119) and the Nickel Coinage Security Fund ($1,493,069).

About $1,700,000 in these two was held on current

account on 31.12.38. Perhaps also some of the

amounts held on fixed deposit can be used to fill up

But none of this seems to be very sound

the gap.

finance.

expected

The state of affairs on 31.12.39 is:

Surplus Balances (revenue a/c)

(revenue a/c) $13,627,526

Advances against loans

$13,949,309

'Overdraft'

321,783

If no more money is borrowed, it will, on

Surplus Balances (revenue a/c)

31.3.41, on the basis of these Estimates be:-

$13,186,818

315,510,395

$2,323,577

Advances against loans

'Overdraft'

If $11,140,000 can be raised on account of

the 1934 Loan, this overdraft will be wiped out, and a cash balance of $8,816,423 will take its place, and if any part of the special war revenue is raised before it is spent, that figure will be increased

correspondingly for a time. But there are two

objections to taking these hypotheses for granted. In the first place, it is quite possible that nothing like eleven million dollars in cash can advantageously be raised for the 1934 Loan during the financial

year. In the second, it is much more likely that the collection of the war revenue will lag behind the spending of it. As soon as the building of the

two new minesweepers is put in hand, Government will be committed to paying out 3 million dollars of

this revenue.

A