§ In accordance with the intention of my predecessor, which seemed to me thoroughly sound, I have devoted the surplus revenue, the old Sinking Fund of 1904–5, to strengthening the Exchequer balance by repayment of deficiency advances. Thus, the Committee will see that £1,414,000 of these advances were paid off. We started the financial year with a balance of £7,430,000. We close the year with a balance of £10,451,000. The increase is mainly due to the realised surplus of the year which has now become the old Sinking Fund of 1905–6—;namely, £3,460,000. To this has to be added the balance of the bullion account—;£285,000; while we have to deduct £584,000, the excess of issues on capital account over borrowings during 1905–6, and the loss on Exchequer bonds created under the Finance Act of 1905, and issued at a discount—;namely, £146,000. The net growth in the balance for the year is thus £3,021,000.