B—l6

BALANCE-SHEET The principal changes in the balance-sheet as at 31st March, 1950, compared with that of the previous year were as follows : Liabilities Bank-notes The value of notes outstanding on 31st March, 1950, was £53,031,091, compared with £49,356,870 on 31st March, 1949, an increase of £3,674,221. There was a smaller increase in the effective note circulation —that is, the value of notes held by the public. This figure was £44,301,863 on the last Wednesday in March—£2,102,643 higher than the corresponding figure of £42,199,220 in 1949. Changes in the net note circulation are shown in the following table : Net Note Last Balance Day Circulation. Increase, in March, (£000) (£000) 1940 .. .. .. 14,835 3,660 1941 .. .. .. 17,162 2,777 1942 .. .. ..20,177 3,015 1943 .. .. .. 26,175 5,998 1944 .. .. ..31,196 5,021 1945 .. .. .. 34,186 2,990 1946 .. 36,643 2,458 1947 .. .. .. 39,633 2,989 1948 .. .. .. 40,757 1,124 1949 .. .. ..42,199 1,443 1950 .. ~ .. 44,302 2,103 The increase during the year may be attributed in part to higher wages, salaries, and other incomes, normal increase in population, availability for spending of wartime savings repaid on the maturity of short-term Victory and Liberty Loans, and to the expansion of bank credit. The following table, showing by denominations the notes held by the public, once again reveals more than proportionate increases in the notes of high denominations.

(£000)

Demand Liabilities (a) State. —The amount on deposit under this heading on 31st March, 1950, was £33,296,116, compared with £20,572,329 on 31st March, 1949. The increase was mainly accounted for by larger balances in the Public Account, the Post Office Account, and the Meat Industry Account. From May, 1949, to February, 1950, the average of these deposits was £9' oB millions. The customary increase in demand liabilities to the State during March reflects principally the receipt by the Government of income-tax.

2

— I Last Balance Day in March, 1944. 1945. 1946. | 1947. 1948. | 1949. 1950. 10s. .. 952 990 1,087 1,143 1,171 1,216 1,241 £1 . . 8,021 8,356 9,143 9,422 9,434 9,521 9,376 £5 16,422 18,599 21,085 22,486 23,117 24,027 25,408 £10 .. 2,791 3,366 3,256 4,218 4,687 4,990 5,606 £50 .. 2,634 2,504 1,706 2,001 1,987 2,086 2,313 Trading banks' notes outstanding 376 371 366 363 361 359 357 Total active circulation 31,196 34,186 36,643 39,633 40,757 42,199 44,302