TREASURY BILLS

Poverty Bay Herald, Volume LXI, Issue 18484, 24 August 1934, Page 7

TREASURY BILLS

YEAR’S OPERATIONS reserves Liquidation (Parliamentary Reporter.) WELLINGTON, this day. “Apart from renewals ami conversions, the Treasury bills issued under the Banks Indemnity (Exchange) Act during the year amounted to £29,384,732, of which £12,360,197 had been repaid by March 31," stated the Minister of Finance, the lit. Hon. .J. G. Coates, in presenting the Budget in the House of Representatives last night. “Thus the net increase for the year was £17,024,535,' and this, added to £2,380,337 of bills carried forward from the previous year, resulted in £19,404,872 of this class of Treasury bills, of which £16,319,672 bore interest at 5 per cent, per annum and the balance at rates varying,from 2§ per cent, to 4 per cent., being outstanding on March 51, 1934. Bills to more than this amount have recently been redeemed with the proceeds from the sale to the Reserve Bank of New Zealand of surplus sterling. “In so far as revenue bills are concerned, tlie .published accounts, show that Treasury bills issued during the year amounted to £39,606,077, including issues in renewal. The total accommodation received, however, was £11,346,000, of which £6,977,000. was obtained from the banks and £4,369,000 from Government accounts and the public. The balance consisted of issues in renewal of these bills and also of the £1,585,000 of hills outstanding on March 31, 1933. The, hills issued had a currency not exceeding six months, and were discounted at rates ranging from 2-4 per cent, to 3 per cent, in the case of bills taken up by Government accounts and the public, and 5 per cent, per annum in the case of hills issued to the banks. .

“In the aggregate £37,758,968 of revopuc hills was paid oil, the amount being £1,867,109 less than the issues during the year. The result was that by March 31 last revenue bills outstanding had been increased to £3,452,IC9, “As a result of all these, operations, the floating debt as at March 31 last amounted try £22,856,981, as compared with £3,965,337 as at Jlnrcli 31, 1937, an increase of £18,891,644 for the year. The greater part of the bills issued under the Batiks Indemnity (Exchange) Act were redeemed on August 1 last, and the balance of this class of bill will be repaid shortly. “Although it does not form part of the public debt in the. ordinary sense of the term, there is also- the liability under the arrangements made for linin'* elation of reserves by the hypothecation of discharged soldier settlement securities to two of the hanks. Tips is a self-contained arrangement whereby theliability incurred to secure immediate liquidation for the consolidated fund will lie gradually repaid from the capital .inpayments received under the table mortgages in which the reserves are invested. The amount of the liability is now £4,050,000, ■ representing a net increase of £1,800,000 during the last financial year.",.-