RESERVE BANK

New Zealand Herald, Volume LXXIV, Issue 22847, 30 September 1937, Page 7

RESERVE BANK

ADVANCES TO STATE HOW BUSINESS WAS DONE TREASURY ' BILL ISSUES Details of advances made to the Government for various purposes are given in the annua] report of the Reserve Bank of Xciv Zealand, which was presented to Parliament on Tuesday night. Dealing with advances to the Dairy Industry Account, the report says the overdraft of £0,225,90S at March 31 represented advances of £16,220,520 less receipts in respect of sales amounting to £9,991,612. all the figures being New Zealand currency.

The accommodation provided under the heading "For Other Purposes" consisted of £IOO,OOO for the Housing Account, £700,000 in connection with the provision of funds in London for the repayment of Southland Power Board loans, and £1,000,000 for general pur-, poses. All of these sums were made available against the issue of three months' Treasury bills. The amount provided for general purposes was repaid before the end of the financial year, leaving a balance of £BOO,OOO advances to the State at that date. Form of Returns The manner in which these transactions are shown in the weekly returns is discussed in the report, which says its Statutory form might permit of some items being included under one of several headings. Accommodation pranted to the Government against Treasury bills, for example, might bo included alternatively under "Discounts —Treasury and Local Body Bills"; "Advances to the State or State Undertakings"; or possibly, "Investments." If the most important consideration were to show tho total amount of Treasury bills held by the bank at any time, regardless of how they had been acquired, the amount might bo shown under the heading of "Discounts." If, however, Treasury bills wero issued to the public, and some of these bills were discounted for u third party (for example, ono of tho trading banks) at a time when tho Heservo Bank hold bills which had been taken direct from the Treasury, to combine tho two holdings would show neither tho amount ol the accommodation which had been granted by the bank to tho Treasury, nor tho extent to which assistance had been given to tho market. Details ol Advances It has therefore been decided to include under tho heading of discounts only such bills as are discounted for third parties, and to show as il Advances to the State" any temporary accommodation granted to the Treasury whether against Treasury bills or otherwise. This procedure will reveal at any time the extent to Which tho power to grant accommodation to tho Treasury unuer Section 15 of the Reserve Bauk of New Zealand Amendment Act, 1936, has been exercised.

Long-dated Government securities, whieu can now be held by the bank without limit as to amount, aro included under tbe heading ot "investments." FARMING IN AUSTRALIA VIEWS OF PLANT EXPERT SEARCH FOR FEED GRASSES [llY TELEGRAPH —CHESS ASSOCIATION] WELLINGTON. Wednesday Confirmation of the view recently expressed by New Zealand farmers on their returning from a tour of the eastern States of Australia that farming methods there were backward compared with those practised in New Zealand was given by Mr. L. Corkhill, plant geneticist, who has been studying pasture cultivation and plant breeding at Canberra. Mr. Corkhill returned to Wellington to-day to rejoin the Grasslands Division of the Plant Research Station at I'almerston North, to which ho was formerly attached. "Farm management and methods certainly aro backward in Australia, compared with our own," Mr. Corkhill said. "This is particularly noticeable in connection with tlio Jong periods of drought' which occur there. There is room for improvement in their methods of feed conservation. They pay little attention to tliis work, and in that respect .1 think their management is poorer than ours. It is largely because they have such large holdings."

Mr. C'orkhill said scientific workers in Australia concentrated more on the introduction of feed plants to provide pasturage in every 'possible type ol country, Australia having a great range of climatic conditions. Not only grasses and clovers, but all varieties of wheat, oats and shrub species were being introduced. What they were looking for was something that would give feed in drought years that sheep would eat but rabbits would leave alone.

FARMERS' RETURNS

COSTS AND THE GUARANTEE [n\* TKLKCIIAPH —OWN CORIIKSPON DENT] KAITAIA, Wednesday Farm costs were discussed at a mooting of the Kaingaroa branch of the Farmers' Union. The following remit was carried unanimously:— "That it be n recommendation to the provincial executive of tho New Zealand Farmers' Union and the dairy associations to immediately arrange a conference and appoint a committee — (a) to prepare and publish a report showing the average returns and comparative costs of production on the farm, and estimated under the guaranteed price, upon three classes of dairying land, namely, partly improved, semi-improved, ami fully improved, and low hills; (b) to formulate a petition to be signed by dairy farmers throughout the Dominion and presented to Parliament expressing tho views of dairy farmers with regard to the Government's guaranteed price for the current season, and the standard of living for the average working farmer."

WHOLESALE EGG PRICES The Auckland Fgg Marketing Committee announces that wholesale egg prices are unchanged, as follows: — Hen: First grade, Is 4}d a dozen; H, Is 3-J(I; O, Is lid. Duck: First grade, Is 41d; 13, Is 3jdj C, Is 'ljd. Country storekeepers' minimum buying prices for first grade eggs are: —Hen, Is u dozen; duck, Is.