H.— 44.

The relative movements of these two classes of deposits during the given period may perhaps be further indicated by expressing the figures as percentages of total deposits. These are shown below: —■ Quarter Free Deposits Fixed Deposits ended (Percentage of (Percentage of 31st March, Total Deposits). Total Deposits). 1926 .. .. .. .. 57 43 1927 .. .. .. .. .. 54 46 1928 .. .. .. .. .. 49 91 1929 47 53 1930 .. .. .. .. .. 44 56 1931 .. .. .. .. .. 36 64 Deposits shown above do not include Government deposits, which during the quarter ended 31st March, 1931, amounted to £2,889,126, as compared with £3,466,086 for the corresponding quarter of the preceding year. Advances aggregating £54,332,234 for the March quarter of the current year comprised ordinary advances to the value of £53,264,390 and notes and bills discounted amounting to £1,067,844. In the March quarter of 1930 ordinary advances aggregated £52,447,136, and notes and bills discounted £1,229,642. Ordinary advances thus showed an increase of £817,254 during the March quarter of 1931, and discounts a decrease of £161,798. The average notes in circulation during the quarter ended 31st March, 1931, amounted to £5,802,262, as compared with £6,417,039 for the corresponding period of 1930, while coin and bullion totalled £6,955,422 and £6,648,839 in the respective periods. Like the returns of the six trading banks in New Zealand, the returns of the Post Office Savingsbank also reflect the effects of the prevailing economic depression and the consequent reduction in the purchasing-power of the community. For the year ended 31st March, 1931, deposits amounted to £24,531,569 and withdrawals to £28,063,338, thus producing an excess of withdrawals totalling £3,531,769. This compares with an excess of withdrawals aggregating £1,014,139 for the year ended 31st March, 1930, deposits in that year totalling £28,561,855 and withdrawals £29,575,994. The decrease in deposits and withdrawals respectively during the year ended 31st March, 1931, as compared with the previous year were therefore £4,030,286 and £1,512,656. The estimated balance at the credit of depositors at the 31st March, 1931, including estimated interest, was £47,654,721, which compared with £49,405,078, £48,637,166, and £47,758,726 for the three previous financial years respectively. Trade with the United Kingdom. Our trade with the United Kingdom for the calendar year 1930 naturally shows a considerable recession as compared with the previous year. Exports to the United Kingdom totalled £36,028,715, and imports from the United Kingdom £20,329,807. The "corresponding figures for the year ended 31st December, 1929, were —Exports, £40,956,706, and imports, £22,565,436. It is of particular interest and importance to note that, although the absolute value of exports to the United Kingdom declined last year, the proportion of total export trade conducted with that country showed a substantial increase. In 1929 73-69 per cent, of the total value of all exports was shipped to the United Kingdom, whereas in 1930 the percentage was 80-17. In 1929 imports from the United Kingdom represented 46-25 per cent, of the total value of imports from all sources. In 1930 this percentage had increased to 47-27. It is satisfactory indeed to be able to point to such substantial increases in the proportion of our trade conducted with the Home-land. The loss of an outlet for our butter in Canada has drawn special attention to our dependence upon the United Kingdom as our best and surest market. Trade with Australia. The adverse economic conditions that have been so much in evidence in Australia during the past year or so have seriously affected the volume and value of our export trade to the Commonwealth. The value of exports for the year ended 31st December, 1930, was £1,547,953, as compared with £2,338,574 for the previous year. Indeed, the value last year was the lowest recorded since 1917. Imports, on the other hand, showed an increase as compared with 1929, the figures being £3,308,947 and £3,258,727 in 1930 and 1929 respectively. The increase in 1930 is due partly to the fact that during that year gold to the value of £250,000 was exported to New Zealand, and partly to the fact that the rates of exchange between New Zealand and Australia have been favourable to export business from the latter country. The values of exports, imports, and total trade in each of the last five years are set out below :—

6

! i Year ended Exports to Imports from , r , , T , 31st December, Australia. Australia. j 0 a ra e " £ £ £ 1926 .. .. 3,054,433 4,625,200 7,679,633 1927 .. .. 3,665,962 3,869,246 7,535,208 1928 .. .. 3,402,655 3,499,151 6,901,806 1929 .. .. 2,338,574 3,258,727 5,597,301 1930 .. .. 1,547,953 3,308,947 4,856,900