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Investments Investments increased from £34,095,301 on 31st March, 1949, to £43,658,142 on 31st March, 1950. The main cause of this increase was the purchase during June, 1949, of £l4 millions of 1-per-cent. Government stock, maturing in 1962, to providefinance for the redemption of the unconverted portion of three loans which had been offered for conversion. In December, 1949, a further £2 millions was invested in this stock, but in March, 1950, £5 millions was redeemed. Overseas investments (included, in the total) declined during the year from £7-1 millions to £5-6 millions. This was the result of sales in London during January, 1950, of the following New Zealand Government stocks : (a) 3-J-per-cent. stock maturing 1955-60 .. .. 200,649 (b) 3|-per-cent. stock maturing 1960-64 .. 1,235,489 RESERVE RATIO No change was made during the year in the statutory minimum reserve ratioof 25 per cent. During the year the reserve ratio fluctuated between a maximum of 46-1 per cent, in May, 1949, and a minimum of 27-7 per cent, in December. A reduction in the ratio during this part of the year is a normal seasonal movement. Sterling reserves normally increase each year between January and May or June as a result of receipts from exports, and decrease during the rest of the year. DISCOUNT RATE The minimum rate for discounting approved bills remained unchanged during the year at 1|- per cent. MANAGEMENT OF PUBLIC DEBT IN NEW ZEALAND Conversion Loans During the financial year ended 31st March, 1950, the following loans domiciled in New Zealand reached their optional or final maturity dates : (а) 2| per cent., maturing 15th June, 1947-49. (б) 2f per cent., maturing 15th February, 1949-50. (c) 4 per cent., maturing 15th May, 1949-52. Stockholders were offered the following options : (1) Repayment of principal and accrued interest at 15th June, 1949 ; (2) Reinvestment of principal from 15th June, 1949, in either of two new securities —3 per cent, maturing 15th June, 1961-64, or 2|- per cent, maturing 15th June, 1954-55. Of the £29,235,775 of maturing securities, £15,111,380 was reinvested, 2,519 applications amounting to £6,777,895 being received for the short-term and 4,768 applications amounting to £8,333,485 for the long-term issue. Securities totalling £14,124,395 held by 41,370 of the 49,000 stockholders were repaid in cash. Included in the securities repaid Were the holdings of the trading banks, amounting to about £2-7 millions, which were not subject to the conversion offer. The details of each of the three maturing loans were : (a) 21 Per Cent., Maturing 15th June, 1947-49 This was the short-term security of the 3rd Liberty War Loan issued in June-July, 1943. At 15th June, 1949, there were about 29,000 stockholders with total investments of £7,092,970.

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