RESERVE BANK OF NEW ZEALAND ANNUAL REPORT OF THE BOARD OF DIRECTORS AND STATEMENT OF ACCOUNTS FOR THE YEAR ENDED THE 31st MARCH, 1945

Appendix to the Journals of the House of Representatives, 1945 Session I, B-16

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1945 NEW ZEALAND

RESERVE BANK OF NEW ZEALAND ANNUAL REPORT OF THE BOARD OF DIRECTORS AND STATEMENT OF ACCOUNTS FOR THE YEAR ENDED THE 31st MARCH, 1945

Presented to both Houses of the General Assembly, pursuant to Section 20 of the Reserve Bank of New Zealand Amendment Act, 1936 ANNUAL REPORT To the Hon. the Minister or Finance. The Board of Directors presents hereunder the report on the operations of the Reserve Bank during the financial year ended 31st March, 1945. The net profit for the year, after making provision for depreciation and contingencies, amounted to £549,686 6s. 4d. This amount has since been paid into the Public Account to the credit of the Consolidated Fund. BALANCE-SHEET Major changes in the balance-sheet figures as at 31st March, 1945, as compared with those of the previous year were as follows : — Liabilities Bank Notes The total of notes outstanding at 31st March, 1945, was £(N.Z.)40,201,306, which represented an increase of approximately £(N.Z.)3-95 millions for the year. While this increase is considerably less than the increase of £(N.Z.)5-9 millions shown in the previous year, the contributing factors of full employment, high wages, overtime, the pay of the Services, and hoarding, referred to in the last report, are still applicable.

The following table shows the movements which have taken place in the note-circulation since the Bank commenced operations : — (£(N.Z.)000)

A« at last Monday in March, Increase. Inorease - 1935 .. .. .. 9,341 .. 6,236 1936 .. .. .. 10,153 + 812 7,105 + 869 1937 .. .. .. 13,179 +3,026 9,844 +2,739 1938 .. 13,554 + 375 9,536 - 308 1939 .. .. .. 15,334 +1,780 11,176 +1,640 1940 .. .. .. 18,379 +3,045 14,835 +3,659 1941 .. .. .. 21,441 +3,062 17,162 +2,327 1942 .. .. .. 24,132 +2,691 20,177 +3,015 1943 .. .. .. 30,348 +6,216 26,175 +5,998 1944 .. .. .. 36,253 +5,905 31,193 +5,018 1945 .. .. .. 40,154 +3,901 34,186 +2,993

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Demand Liabilities (a) State —The increase of approximately £(N.Z.)2 millions in these deposits from £(N.Z.)13-550 millions at 31st March, 1944, to £(N.Z.)15*586 millions at 31st March, 1945, represents a normal fluctuation arising from day to day transactions in the various Government accounts under this heading. (b) Banks.—Dating the year the total of trading banks' deposits with the Reserve Bank fluctuated between £(N.Z.)23-288 millions and a peak of £(N.Z.)38-596 millions. A repayment to the banks during the year of short-term New Zealand Government securities totalling £(N.Z.)7-115 millions is reflected in the net increase of £(N.Z.)4 millions in the total deposits at 31st March, 1945, compared with 31st March, 1944. Assets Sterling Exchange During the year sterling exchange receipts, particularly those arising from exports, have been high in comparison with the previous year. This factor, in conjunction with a decrease of approximately £(N.Z.)3 millions in outgoings of exchange, has effected a steady increase in the Reserve Bank's holding of sterling exchange, which moved from £(N.Z.)27-963 millions at 31st March, 1944, to £(N.Z.)48-125 millions at 31st March, 1945, a net increase of approximately £(N.Z.)20 millions. Advances (i) Marketing Department.—The Department maintains several accounts with the Reserve Bank, and the decrease of £(N.Z.)427,000 between 31st March, 1944: and 1945, represents the net movement in the aggregate advances outstanding in those accounts which were overdrawn at those dates. The Department s accommodation requirements for its marketing operations have been on a very much lower level during this year than in previous years, and over the major portion of the year advances made to individual accounts have been more than counterbalanced by credit balances in the other accounts maintained by the Department. (ii) Other Purposes.—The amount of £(N.Z.)27 millions outstanding at 31st March, 1945, represents a decrease of £(N.Z.)B-885 millions on the amount outstanding at the commencement of the financial year, as compared with an increase ol £(N.Z.)4*750 millions during the previous year. There has been no change in the rates for accommodation granted to the State or State undertakings throughout the year. These rates are as follows :— _ Per Cent. Marketing Department-— per Annum. First £(N.Z.)5,000,000 .. .. . . .. .. 1 • Thereafter .. .. ~ ~. If Other Advances (Treasury Bills) First £(N.Z.)5,000,000 .. .. .. .. ] Thereafter .... 11 1 2 Investments The principal factor in the increase in investments of £(N.Z.)I-224 millions is the value of New Zealand Government 3£ per cent. 1962-65 stock taken up in London by the Bank under its underwriting arrangement for the conversion in London of the 4J per cent. New Zealand Government Loan of £(5tg.)7,580,907 which matured on Ist March, 1945. The total amount offered for conversion was £(5tg.)17,238,187, comprised of the Ist March, 1945 maturity, referred to above, and the 3 per cent, loan of £(5tg.)9,657,280 which matured on Ist April', 1945 ; the latter of these two loans is mentioned here for convenience of reference, though the conversion took place immediately after the end of the year under review. Under the conversion arrangements the Bank agreed to take up in the new loan an amount equivalent to the total unconverted in the maturing loans up to a limit of £(stg.)4-5 millions. New cash, subscriptions were not invited, and the unconverted portion of the loans was repaid to holders at maturity. This procedure was similar to that followed in dealing with the loan maturity of the previous year. The Ist March, 1945, operation resulted in a total of £(stg.)l-234 millions out of £(stg.)7-581 million being unconverted, while information to hand since the Ist April, 1945, shows that, of the total of £(stg.)9-657 millions dealt with on that date, only £(stg.)l-100 millions was unconverted. The conversion of approximately £(stg.)l4-9 millions in a total of approximately £(stg.)l7-2 millions is a very satisfactory result and reflects continued confidence in the Dominion's securities. DISCOUNT RATE The minimum rate for the discounting of approved bills of exchange has remained unchanged at li' P or cen t- Following is a tabulation of the rates which have been quoted since the Bank commenced business :— Per Cent. As from Ist August, 1934 .. .. .. _ _ per As from 29th July, 1935 .. .. .. .. As from 2nd March, 1936 .. .. ~ _ _ '' '' 2? As from 29th June, 1936.. .. .. .. % As from 19th November, 1938 .. .. .. _ _ / 4 As from 6th September, 1939 .. .. .. 0 As from 27th May, 1940 .. .. .. .. . _ " o As from 26th July, 1941 ~ ~ _ i 11

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EXCHANGE BATE The Bank's official buying rate for sterling has been unchanged at £(N.Z.)124 = £(stg.)loo, while 110 official selling rate has been quoted. No alterations were made during the year in the trading banks' telegraphic transfer rates for buying or selling sterling. MANAGEMENT OF PUBLIC DEBT The major loan operation undertaken by the Bank during the year under review was the issue of the 1944: Victory Loan of £(N.Z.)40,000,000. The prospectus was issued 011 the 28th August, 1944, but prior to .that date advance subscriptions to the loan, amounting to £(N.Z.)6,566,415 were in hand. Two stock issues were offered at par for public subscription, the short term being for 2|- per cent, stock maturing 15th February, 1949-50, and the longer dated stock at 3 per cent, maturing 15th February, 1955-58. Subscribers were offered the alternatives of payment in full on application, or payment of 30 per cent, on application with further instalments of 40 per cent, on 22nd November, 1944, and 30 per cent. 011 12th January, 1945. The 1,291 subscribers who availed themselves of the instalment method of payment contributed £(N.Z.)1,113,840 by this means. In addition, investments in the form of Victory Bonds and deposits to National Savings Accounts were offered to subscribers. When the loan closed on the 4th October a total of £(N.Z.)40,740,346 had been subscribed as follows :— Number of Amount. Applications. £(N.Z.) 2| per cent., 15th February, 1949-50, stock .. .. 20,310 11,810,255 3 per cent., 15th February, 1955-58, stock .. .. 20,905 18,338,695 30,148,950 National Savings Bonds and deposits to National Savings Accounts from Ist April, 1944 to 31st March, 1945 .. .. .. .. 10,591,396 £(N.Z.)40,740,346 The magnitude of the sum to be raised made it necessary once again to institute a Dominion-wide campaign. With the Governor of the Bank as Chairman, the National War Loan Council directed the loan organization through the National Savings Committee and the Nations# War Loan Working Committee. District and sub-district committees functioned throughout New Zealand, and the Bank desires to place 011 record its appreciation of the invaluable assistance so wholeheartedly given. Advance Subscriptions to 1945 Victory Loan The Government authorized the reopening of advance subscriptions. 011 the 12th March, 1945, and up to the 31st March, 1945, a total of £(N.Z.)182,440 had been received. The following is a summary of the applications : — Number of Amount. Applications. £(N.Z.) Short term .. .. .. .. .. 10 9,100 Long term .. .. •• ..42 173,340 52 £(N.Z.)182,440 Conversion Loan The prospectus covering the conversion or repayment of the 4 per cent., 15th February 1943-46, stock and debentures, totalling £(N.Z.)9,807,450, was issued by the Bank on the 11th February, 194.4, and the position at the 31st March, 1945, was as follows : — Loan. Number of Amount. Applications. £(N.Z.) 2| per cent., 1949-51 .. .. ■■ 1,092 451,605* 3 per cent., 1960-63 .. .. •• •• 6,994 7,777,560f 8,086 8,229,165 Redemptions .. .. .. . • • 5,343 1,764, 855 13,429 £(N.Z.)9,994,020 * Includes conversion premium of £1 per cent. t Includes conversion premium of £3 per cent. As at the 31st March, .1945, the total amount of the loan, with the exception of £(N.Z.)11,130, represented by outstanding bearer debentures, had been dealt with, and an endeavour is being made to trace the present owners of the debentures in order that repayment may be effected. MANAGEMENT OF STATE ADVANCES CORPORATION OF NEW ZEALAND DEBT A loan comprising 3{ per cent, stock and debentures issued on behalf of the State Advances Corporation of New Zealand matured on the Ist June, 1944. The total of the securities 011 issue was £(N.Z.)291,540, and, acting 011 behalf of the State Advances Corporation, the Bank arranged repayment to all holders.

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EXCHANGE CONTROL The following table gives a classification of foreign exchange transactions for the years ended 31st March 1942, 1943, 1944.. and 1945 Summary on 1 Transactions (£(N.Z.)000)

The total figures for the year ended 31st March, 1945, disclose a favourable balance of receipts over payments of £(N.Z.)37-559 millions. Notwithstanding that receipts on account of American Authorities and personnel decreased substantially as compared with the previous year, the total receipts from all sources was £(N.Z.)27-033 millions greater than in the previous year, and this was due in a large measure to the receipt of the following amounts from the United Kingdom Government: — (a) £4 millions sterling, representing dairy produce price adjustment for the production period Ist April, 1943, to 31st July, 1944 (included in receipts from " Exports "). (b) £12 millions sterling and £4 millions sterling, representing adjustments of the disparity between import and export prices (included in receipts by the High Commissioner in London). The administration of Exchange Control Regulations covering overseas trade, funds, and securities has operated smoothly throughout the year.

TRADING BANKS The position of the trading banks, as shown by the main items in their monthly returns, has been as follows:— Assets (£(N.Z.)000)

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_ ended 31st March, Year ended 81st March, Keccipts. Payment*. j 1942. 1943. 1944. 1945. 1942. 1943. 1944. 1945. In respect of— £ £ £ £ In respect of— £ £ £ £ Exports.. .. .. 72,774 80,885 74,118 85,287 Imports, excluding payments 39,623 33,103 28,152f 30,87 Interest, dividends, legacies, 4,231 4,33!) 4,901 5,801 in respect of Government immigrants' funds, repat- imports and in respect of riated capital, and private goods imported prior to debts due in New Zealand introduction of licensing Trade dobts duo in New 2,897 3,687 3,210 4,205 system Zealand, including over- Interest, dividends, legacies, 3,782 3,643 3,778 4,74 seas earnings of New emigrants' funds, repatriZealand firms ated capital, and private Commissions, royalties, and 166 252 250 295 debts due overseas insurance Trade debts due overseas, 2,294 3,445 2,372 1,43' Donations and allowances .. 431 290 350 424 including earnings in New Travellers' expenses .. 208 493 194 272 Zealand of overseas firms Receipts on account of .. 5,057 10,440 5,818 and payments in respect American Authorities and of goods imported prior personnel to introduction of licensBeceipts by High Commis- .. 599 4,081 28,559* ing system sioner in London Government debt and other 34,501 46,981 51,470f 48,06; Unclassified .. .. 504 395 294 156 services, including payments in respect of imports Local-body-debt services .. 1,800 2,013 1,414 1,531 Commissions, royalties, and 549 922 846 71! insurance Donations and allowances.. 606 565 787 67f Film • hire and entertain- 226 794 619 50£ ments Travellers' expenses .. 198 72 113 19.1 American Authorities and .. 1,832 6,318 4,402 personnel Unclassified .. .. .. .. 403 1611 81,271 95,997 103,844 130,877 83,579 93,370 96,272 | 93,317 * Including sums not yet remitted to New Zealand. t Revised.

Deposits at Reserve Total Cash t. t , r, Advances Last Monday in Month. Reserve Bank in New e . ve y~ ° ve ramen Bank. Notes. Zealand. Assets. Securities. Diseounts _ 1944 Marcli .. .. .. 29,890 5,060 35,683 11,584- 36,142 46,896 April.. .. .. .. 31,329 5,134 37,191 12,664 36,142 46,142 May 37,051 5,125 42,894 11,253 36,143 45,368 June .. .. .. 36,735 4,906 42,334 10,705 36,140 45,458 July .. .. .. 36,123 4,805 41,607 11,773 , 36,137 45,513 August .. .. .. 37,853 5,326 43,861 12,237 36,140 45,171 September .. .. .. 33,899 5,094 39,675 12,74-3 36,140 46,974 October .. .. .. 25,336 5,201 31,213 13,334 36,140 50,729 November .. .. .. 26,938 5,368 33,062 12,622 36,140 51,239 December .. .. .. 30,053 4,935 35,560 13,698 36,139 50,427 1945 January .. .. .. 33,321 6,173 40,256 14,428 36,139 49,963 February .. .. .. 36,349 6,007 43,135 15,292 36,139 50,095 Marcli .. .. .. 32,459 5,968 39,172 15,623 29,025 55,148

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Liabilities in New Zealand

The trading banks' advances and discounts increased from £(N.Z.)46,896,000 to £(N.Z.)55,148,000 during the year. The wide distribution of this increase is shown below in an analysis of the trading banks' advances classified by industrial and occupational groups. The total outstanding at the end of March, "1945, showed an increase of £(N.Z.)5,053,000 over the previous month, due in some considerable measure to the demand for bank advances to meet income-tax payments. Investments in Government securities declined by £(N.Z.)7,115,000 in March, 1945, when Treasury bills held by the trading banks were redeemed. Net overseas assets hold by the trading banks as agents for the Reserve Bank increased by £(N.Z.)4,039,000 to £(N.Z.)15,623,000 in the year. Though the banks' demand liabilities in New Zealand rose by over £(N.Z.)B-5 millions during the year, the influence of Victory Loan subscriptions in October, 1944, and income-tax payments in March, 1945, is shown in the reductions which occurred during those months. Time liabilities for the year showed a net increase of £(N.Z.)1,114,000. CLASSIFICATION OF TRADING BANKS' ADVANCES AS AT LAST MONDAY IN MARCH (£(N.Z.)OO(J) 1944. 1945. Farmers .. .. .. .. .. .. .. 17,397 18,721 Industries allied to primary production .. .. .. 8,319 10,073 Other manufacturing and productive industries .. .. 4,840 6,709 Merchants and wholesalers .. .. .. .. .. 2,930 3,141 Retailers .. .. .. .. .. .. .. 2,025 2,790 Transport.. .. .. .. .. .. .. 386 684 Local bodies, municipal authorities, public utility concerns, &c. .. 319 468 Stock and station agents .. .. .. .. .. 844 970 Hotels (public and private), restaurants, &c. .. .. .. 956 1,167 Entertainment concerns .. .. .. .. .. 253 290 Financial companies, societies, &c. .. .. .. .. 737 1,069 Religious and charitable .. .. .. .. .. 206 196 Professional .. .. .. .. .. .. 1,176 1,377 Private individuals.. .. .. .. .. 4,778 5,560 Miscellaneous .. .. .. .. .. .. 1,706 1,687 Total advances .. .. .. .. .. 46,872 54,902

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(£(N.Z.)000) t ,, n, „ j . M ,, Demand Time Total Demand and ' 0 cl^1 01 " Liabilities. Liabilities. Time Liabilities. 1944 March .. .. .. 85,091 29,723 114,814 April .. .. .. 88,815 29,774 118,589 May .. .. .. 89,847 30,142 119,989 June .. .. .. 90,372 30,409 120,781 July .. .. .. 90,099 30,689 120,788 August .. .. .. 91,606 30,940 122,546 September .. .. .. 89,869 31,071 120,940 Octobcr .. .. .. 83,848 31,049 114,897 November .. .. .. 86,165 31,211 117,377 December .. .. .. 90,134 31,430 121,563 1945 January .. .. .. 93,633 31,067 124,700 February .. .. .. 97,637 30,092 128,539 March .. .. .. 93,656 30,837 124,493

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MONEY SUPPLY IN NEW ZEALAND (Note. —For technical reasons this analysis is based on values as at the last Monday in March of each year, instead of 31st March) The following tables set out in detail the changes that have occurred in the amount of money in circulation in New Zealand in the form of coin, notes, and demand deposits of the Reserve Bank and the trading banks since 1939 : —

Volume of Money in Circulation in New Zealand in the Form of Coin, Notes, and Bank Demand Deposits* (Last Monday in March) Volume of Money

Causes of Changes in Volume of Money

Changes in Volume of Money 1939-45. Coin (estimated) .. .. .. .. .. .. .. +1-2 Notes held by public .. .. .. .. .. .. +23-0 Demand deposits at — (a) Reserve Bankf .. .. • • .. .. +12 -7 (b) Trading banks:!; .. . . .. . . , . .. +55 • 3 Total .. .. .. .. .. .. .. +92-2 Causes of Changes in Volume of Money 1939-45. Overseas transactions§ .. .. .. .. .. .. +56 • 0 Bank creditReserve Bank— Advances .. .. .. .. .. .. .. +10-2 Investments in New Zealand .. .. .. .. .. +6-8 Trading banks— Advances .. ~ .. .. .. .. .. —0 ■ 4 Investments .. .. .. ~ .. .. +21 • 3 Shift from time to demand deposits at trading ban ks|| .. .. .. —1-0 Other items .. .. .. .. .. .. ~ —€ • 7 Total .. .. .. .. .. .. .. +92-2 Notes, * Excludes deposits held at savings-banks. t Government and other demand deposits at Reserve Bank, excluding trading banks' balances at Reserve Bank, j 1.e., Trading banks' total demand liabilities in New Zealand. § Changes in Reserve Bank's sterling exchange and overseas investments and trading banks' assets overseas in respect of New Zealand business, less overseas liabilities. Plus sign indicates that overseas exchange Receipts exceeded disbursements, and minus sign indicates an excess of disbursements. || Minus sign indicates shift from demand to time deposits.

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(£(N.Z.) millions) 1939. 1940. 194J. 1942. 1943. 1944. 1945. - - • j Coin (estimated) .. .. 1-4 1-6 1-7 1-9 2-2 2-5 2-6 Notes held by public .. .. 13-2 14-8 17-2 20-2 26-2 31-2 34-2 Demand deposits at — (а) Reserve Bankf • • .. 4-8 6-9 7-2 13-7 15-9 19-0 17-5 (б) Trading banksj .. .. 38-4 46-6 53-7 61-5 77-1 85-1 93-7 Total.. .. .. 55-8 69-9 79-8 97-3 121-4 137-8 148-0 Change during year .. +14-1 +9-9 +17-5 +24-1 | 16-4 +10-2

1939-40. 1940-41. 1941-42. 1942-43. 1943-44. 1944-45. Overseas transactions§ .. .. .. +12-9 +8-0 +1*1 +6-0 +3-4 +24-6 Bank credit — Keserve Bank— Advances .. .. ... .. +2-7 -3*7 +12-2 +1-8 +11-8 -14-6 Investments in New Zealand . . .. +0-3 — 0-6 +0-4 +6-5 +0-4 —0-2 Trading banks— Advances .. .. .. .. -7-4 +5-5 -4-1 -4-7 +2-0 +8-3 Investments .. .. .. +6-5 —0*8 +8 • 7 +12-7 +1*2 —7*0 Shift from time to demand deposits at trading banks|| .. .. .. .. -1*4 +2-6 +0*2 —0-1 1*2 —1*1 Other items •• •• •• +0*5 —1*1 —1-0 +1*9 —1*2 +0-2 Change during year .. .. +14*1 +9-9 +17*5 +24-1 +16*4 +10*2

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From these figures it will be seen that the chief single factor in the increase of £(N.Z.)92-2 millions in the volume of money since March, 1939, has been the receipt of overseas income in excess of overseas expenditure. As a result, the net overseas assets of the banking system have reached a record high level. When these funds are drawn on to meet overseas debt commitments and to provide'payment for capital equipment and other imports as they become available, a considerable reduction in the surplus money in circulation should eventuate. During the same period since March, 1939, the net expansion in bank credit for all purposes was £(N.Z.)37-9 millions, of which the increase in the Reserve Bank's advances and investments accounted for £(N.Z.)17 millions. This expansion caused practically all the remainder of the increase in the supply of money. The increase has been substantial; but it must be recognized that during abnormal wartime conditions of rapidly accelerating State expenditure it is extremely difficult, if not entirely impracticable, to avoid some expansion of bank credit; and the amount of expansion which has taken place for all purposes should be considered in relation to the fact that the total war and civil expenditure of the State for the same period of six years has amounted to over £(N.Z.)800 millions. The extent to which it has been found possible to rely on non-inflationary sources of war finance has been due to the fact that, in addition to meeting the necessarily heavy demands of taxation, the people of this Dominion have readily responded to appeals for war loans and national savings. It is customary for the amount of central bank credit availed of by the State to fluctuate during the year as the proceeds of taxation and war loans are received and expended ; but after allowing for these periodic changes it is the view of the Board that under present conditions any material net addition to bank credit would detrimentally affect the financial and economic strength of the country, On the other hand, universal public support of the policy designed to safeguard the community from monetary inflation and its consequences will contribute greatly to the smooth and effective change-over from war to peace time activities. STAFF The staff at the 31st March, 1945, totalled 307, of whom 139 were temporary employees. During the year 7 returned to duty, on release from service with the Armed Forces. There were 23 men and 2 women absent on war leave— 7 in the Navy, 12 in the Army, and 6 in the Air Force. The standard of work of the stalf, both permanent and temporary, has remained consistently high, notwithstanding difficulties occasioned by war conditions. The Board is pleased again to record its appreciation of the staff's ready response to all requirements during the past year, and of its efficiency in the performance of its duties. For and on behalf of the Board of Directors : W. F. L. Ward, Governor. E. C. Fussell, Deputy Governor. 30th June, 1945.

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RESERVE BANK OF NEW ZEALAND Profit and Loss Account fob the Yeae ended 31st March, 1945 Dr. £ s. d. Gr. £ s. d. General charges, including salaries, Balance of profit after making prorent, cost of note issue, and other vision for rebate on Treasury bills expenses . . .. .. 244,446 11 2 not yet due, and for sundry liaBtaff Superannuation and Provident bilities and contingencies .. 805,132 17 6 Fund .. .. .. 11,000 0 0 Balance, being profit for year .. 549,686 6 4 £805,132 17 6 £805,132 17 6 Profit and Loss Appropriation Account D r , £ s. d. Cr. £ s. d. Payments to New Zealand Government Balance as at Ist April, 1944 .. 476,473 6 10 in terms of section 36 of Reserve Balance from Profit and Loss Account 549,686 6 4 Bank of New Zealand Act, 1933 .. 470,473 610 Balance .. ... 549,686 6 4 £1,026,109 13 2 £1,026,159 13 2 Balance-sheet as at 31st March, 1945 Liabilities £ s. d. Assets £ s. <1. General Reserve Fund .. 1,500,000 0 0 Gold (at face value) .. .. 2,801,877 10 0 Banknotes .. .. 40,201,306 0 0 Sterling exchange .. .. 48,124,989 7 0 Demand liabilities— Subsidiary coin .. .. .. 32,751 2 3 i a ) State .. •• 15,586,028 8 3 Advances to the State or State under(6) Banks .. .. 32,709,447 0 3 takings— (c) Other .. ■■ •• 1,202,102 9 9 (1) Marketing Department .. 1,216,076 711 Liabilities in currencies other than New (2) For other purposes .. .. 27,000,000 0 0 Zealand currency ' ■■ 13,349 9 6 Investments .. .. .. 12,967,898 I 3 Other accounts .. 1,999,004 4 0 Other assets .. .. .. 1,617,331 9 8 Profit and Loss Appropriation Account 549,686 6 4 N.B.—Holdings of sterling have been converted into New Zealand currency at the rate of £100 sterling equals £124(N.Z.). £93,760,923 18 1 £93,700,923 18 1 W. F. L. Ward, Governor. E. C. Fussell, Deputy Governor. W. R. Eggers, Chief Accountant. Auditors' Certificate and Report.- -We have audited the balance-sheet as at 31st March, 1945, above set forth and have obtained all the information and explanations we have required. We have accepted the certificate of the Bank of England as to assets held on account of the Reserve Bank of New Zealand. In our opinion the balance-sheet is properly drawn up so as to exhibit a true and correct view of the state of the affairs of the Bank as at 31st March, 1945, according to the best of our information and the explanations given to us and as shown by the books of the Bank. ° HNSToN '"rPublic Accountants, Auditors, J. L. Griffin, J Wellington, New Zealand, 29th June, 1945. Approximate Cost of Paper.—Preparation, not given ; printing (flfiO copies), £18

By Authority: E. V. Paul, Government Printer, Wellington. —1945.

Price 6d.\

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