B—l6

ACQUISITION OF NEW ZEALAND-PRODUCED GOLD During the year the Reserve Bank continued to purchase New Zealand-produced' gold in accordance with Regulation 5 of the Finance Emergency Regulations 1940 (No. 2).. Offerings of raw and refined gold to the Reserve Bank during the period amounted to 88,295 oz. (gross weight), bringing the total bought by the Bank since the inception of the scheme in August, 1948, to 142,886 oz. Sales by the Bank to licensed gold-dealers in New Zealand for refining and resale to local manufacturers and dentists aggregated 10,579 oz. (gross weight), raising the total sold since August, 1948, to 14,604 oz. As a result of the increase in the London price of gold following devaluation of sterling in terms of the United States dollar in September, 1949, the price paid by the ReserveBank to New Zealand gold-producers for clean, melted gold was increased from £8 Bs. 6d. to £l2 4s. 6d. per ounce of fine content. This price is based on the official buying-price in London and provides the Bank with an expense margin to cover various costs incurred in handling and shipping the gold overseas for refining. The maximum price at which the licensed gold-dealers may sell refined gold and gold alloys to local manufacturers and dentists was raised from £9 to £l2 17s. per fine ounce. TRADING BANKS The following combined figures are compiled*from the monthly returns furnished by the trading banks to the Reserve Bank in accordance with statutory requirements :

Assets (£000)

6

Last Wednesday Deposits at Reserve Total Cash Net Securities. Advances Reserve Bank in New Overseas and in Month. Bank. Notes. Zealand.* Assets. Government. Other. Discounted 1949 89,606 March 59,350 7,170 68,155 16,749 14,432 1,850 April 64,884 8,814 75,222 16,730 14,432 1,839 85,134 May 72,853 8,712 83,130 16,598 14,432 1,825 81,506 June 86,161 8,046 95,764 -13,623 11,731 1,823 80,070 July 81,978 8,339 91,716 15,281 11,731 1,803 78,698 August 79,844 8,413 89,652 13,435 11,731 1,788 81,709 September 80,430 8,198 90,009 11,166 11,731 1,785 81,787 October 79,515 8,990 89,881 12,691 11,731 1,782 81,158. November 76,454 9,654 87,762 13,141 11,731 1,772 84,020 December 78,251 9,701 89,480 15,320 11,731 1,769 80,027 1950 78,588 January 88,900 10,801 101,392 16,498 11,731 1,727 February 88,804 9,287 99,713 18,125 11,731 1,713 84,359 March 69,208 8,894 79,696 20,100 11,731 1,712 96,071 * Includes deposits at Reserve Bank, notes, and coin.