B—ls

Flood and Hail Damage Belief Repayments of advances granted under Government guarantee to sufferers from flood damage liave in most cases been satisfactorily maintained. In the remaining few cases, arrangements have been made for reductions to be postponed. Final clearance of the advances, however, is expected within a reasonable time. In all these cases the Bank has co-operated fully with the Government's officers in the affected areas, and the arrangements have worked smoothly and satisfactorily. Produce Department This Department continues to perform a useful service in assisting primary producers in the marketing of produce, whether for local sale or disposal overseas, and the services the Bank is able to offer are availed of and appreciated by wool-growers particularly. Quantities of all types of produce forwarded to London and elsewhere for sale on a consignment basis during the year were, on the whole, below pre-war average. There has, however, been a steady increase in the amount of wool shipped to London through the Bank, and we have regained the position previously held there as one of the largest importers of wool for the London market. The large bulk of the wool-clip is sold in New Zealand at the local auctions, which are very well supported by buyers, but a certain number of growers like to use the London market, and the bank has catered for this for many years and our organization is well established and experienced. Statistical figures are not readily available as to offerings and average realizations of New Zealand wools sold in London, but, in spite of the high prices ruling in New Zealand, the London market still carries a " spot premium." The Bank's Produce Circular, containing information on the market situation of a wide range of commodities, has a wide circulation amongst primary producers, merchants, and the business community generally. Australia Our Australian business has been very active and the demand for advances well maintained. Our branches at Sydney and Melbourne give very good service to our customers at these points and to our many customers from New Zealand and elsewhere who visit there. During the year we purchased a property adjoining our present Sydney premises. This will in due course enable us to provide for any expansion needed. Fiji and Samoa At Suva and Apia our businesses continue to increase satisfactorily. At both places prices for the principal exports continue at a very favourable level. London Our business continues to be very active and to show a satisfactory increase. This increase necessitated the acquisition of additional space in the building we occupy at No. 1 Queen Victoria Street, and the internal alterations are now nearing completion. This has already been a great help in dealing with our business and has enabled us to give our many New Zealand visitors better facilities. Our London Branch is very well equipped to deal with all business there for customers and visitors. We particularly welcome the opportunity to assist our New Zealand friends visiting England and the Continent, and we have- now complete arrangements for facilitating their travelling.

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