Not Profit Of £195,811

Northern Advocate, 27 July 1938, Page 4

Not Profit Of £195,811

f Sv*\-uii io “Northern Aavocaie.’’’) WELLINGTON, This Day. 1 ho Reserve Bank of New Zealand earned a not profit for the year ended March 31 Inst of £105.811. This is shown in the annual' report ol the Board of Directors ol the hank, which was tabled in the House of Representatives yesterday by the Minister of Finance, the Hon. W. Nash. ‘•Alter making provision for rebate on unmatured British 1 reasury Bills, depreciation in other assets and superannuation and retiring allowances for the staff, the net profit for the year totalled £195.811." the report states. "This amount has been paid into the Public Account to the credit of the Consolidated Fund. The increase of £48.668 on the previous year's net profits was due partly to the fact that the Dairy Industry Account of the Primary Products Marketing Department was in operation throughout the year, compared with about six months in the previous year, partly to a large average holding of investments, and partly to increased sales of sterling. Profits Affected. "Ever since the bank commenced operations,” the report adds, “its profits have been affected by the low rate at which British Treasury Bills have been obtainable in London, The average rate yielded by such bills acquired by the bank last year was 11/0.96 per cent., compared with 11/2 and 11/11 respectively during the previous two years. “In addition, the totaL amount of salaries was raised by certain adjustments made during the year, as well as by the normal increase in the average salaries, which may be expected to continue for some years, in view of the comparatively low age of members." The report points out that the total of notes outstanding was higher at all times during the year than at the corresponding date of the previous year, and the amount outstanding at the end of the year, £13,553.546/10/-, exceeded the figure at March 31, 1937, by £431.736. These figures ropi’osent the j aggregate of the notes held by the trading banks and by the public. Note Circulation. The effective note circulation —the notes actually in the hands of the public—increased from £8,790.175 on March 22. 1937, to £9,536,178 on March 28, 1938. The expansion of the circulation during the past year was to bo expected, having regard to the increase in the turnover of domestic trade and in the national wages bills during the year.