RESERVE BANK

Evening Post, Volume CXXXIV, Issue 43, 19 August 1942, Page 3

RESERVE BANK

£20,000,000 FOR HOUSING

A profit of £350,241 for the year is shown in the annual accounts of the Reserve Bank of New Zealand, presented to the House of Representatives last night. This profit is paid into the Consolidated Fund. Sterling exchange, states the report, has been on a slightly higher level than in previous years, and stood at over 18| millions at the end of March. Advances to the State during the year amounted to over 29 millions. The Marketing Department's debits at March 31 totalled £7,720,000, an increase of £4,794,000 compared with the previous year. The report explains that large quantities of butter and cheese for which suppliers had been paid but for which no payment is yet due from the United Kingdom Government, accounted for most of the increase. Advances to this Department averaged about 1\ millions more than in the previous-year. Other advances to the State total £22.000,000, an increase of £6,500,000. Housing Department advances accounted for £20,000,000. Parliamentarians have always shown curiosity regarding the rate of < interest charged by the Reserve Bank} to the State, and this is now made clear. The report states that rates for accommodation to the Government were reduced from July 26, 1941. when they were fixed at 1 per cent, per annum for the first five millions and 1\ per cent, thereafter. , A summary of foreign exchange transactions during the year shows that the principal items received were from • the following:—Exports. £72,774,000; interest, dividends, legacies repatriated capital and private debts due in New Zealand, £4,231,000, and trade debts due in New Zealand, including overseas earnings of New Zealand firms, £2,897,000.

Payments through the exchange system included imports (excluding Government goods), £39,623,000; interest, dividends, repatriated capital, and private debts, £3,782,000; trade debts due overseas, including earnings in New Zealand of overseas firms, £2,294,000; Government debt service and State imports, £43,501,000, and local body debt service £1.800,000. During the year £9,980,000 sterling was made available in London to meet charges in respect to the Dominion's war expenses.