B—l6

Liabilities in New Zealand (£000)

Tlie trading banks' total demand and time liabilities in New Zealand increased by £2O-6 millions during the financial year, the major part of the increase occurring between November and February. Despite an increase of £l-5 millions in time liabilities, the proportion of time liabilities to total demand and time liabilities in New Zealand continued the decline noted in recent years. The following table illustrates the trend in the proportions of the trading banks' demand and time liabilities in New Zealand during the past fifteen years : Percentage of Total Demand and Time Liabilities in New Zealand Last Monday in— Demand. Time. March, 1935 .. .. .. .. 43-8 56-2 March, 1938 .. .. .. .. 54-2 45-8 March, 1941 .. .. .. .. 65-2 34-8 March, 1944 .. .. .. .. 74-1 25-9 Last Wednesday in— March, 1947 .. .. .. .. 78-2 21-8 March, 1950 .. .. .. .. 80-8 19-2 The net overseas assets of the trading banks at the end of March, 1950, were the highest in recent years. Their comparatively rapid increase since December, 1949, reflects the high prices received for wool and other exports which are sold in a free market and not by bulk contracts. The policy of redeeming at maturity Government and other securities held by the trading banks was continued with the repayment in June, 1949, of Government stock amounting to £2-7 millions. The reduction in trading banks' holdings of Government securities since their peak in February, 1943, amounts to £24*6 millions, the total held at

7

Last Wednesday in Month. Demand Liabilities. Time Liabilities. Total Demand and Time Liabilities. 1949 March 145,501 37,512 183,013 April 152,170 37,577 189,746 May 154,414 37,844 192,258 June 153,621 38,666 192,288 July 153,609 39,145 192,755 August 146,410 40,225 186,635 September 147,360 40,047 187,407 October 148,586 39,945 188,531 November 146,615 40,116 186,731 December 161,669 39,673 201,342 1950 January 163,110 39,036 202,146 February 174,364 38,965 213,328 March 164,591 39,043 203,635