B—l6

A greater flexibility in tlie use of licences for imports from the sterling area was permitted during the year under "review, and licences granted for the importation of -goods from any sterling-area country may now be used for the importation of similar goods from any other sterling-area country. With Marshall Aid from the United States due to terminate in 1952, further means of promoting international trade must be sought, especially in respect of the sterling area's commerce with hard-currency countries. It is to the advantage of New Zealand and of other countries as well that the assistance received from the United States by the United Kingdom should promote the rehabilitation of the latter's economic system and restore its gold and dollar reserves. MONEY SUPPLY The table below sets out the changes in the total volume of money (in the form of •coin and notes in public circulation and bank demand deposits) from 19-39 to 1950 Volume of Money in New Zealand in the Form op Coin, Notes and Bank Demand

Deposits* (£ Millions)

15

— Coin. 1 Notes. Trading Bank Demand Liabilities. Government Deposits at Reserve Bank. Other Demand Liabilities Reserve Bank-f. Total Volume of Money. Annual Increase. Last balance day in 1 March— 1939 1-38 11-18 38-45 3-82 1-03 55-9 0-6 1940 1-62 14-84 46-64 6-78 0-11 70-0 14-1 1941 1-69 17-16 53-68 6-27 0-93 79-7 9-7 1942 1-85 20-18 61-52 13-46 0-21 97-2 17-5 1943 2-23 26-18 77-14 15-56 0-37 121-5 24-3 1944 2-47 31-19 85-09 18-09 0-89 137-7 16-2 1945 2-62 34-19 93-66 16-80 0-69 148-0 10-3 1946 2-89 36-64 110-92 29-21 0-79 180-5 32-5 1947 3-04 39-63 126-79 17-43 0-55 187-4 6-9 1948 3-17 40-76 142-35 23-15 0-58 210-0 22-6 1949 3-19 42-20 145-50 22-25 0-40 213-5 3-5 1950 3-34 44-30 164-59 34-20 0-62 247-0 33-5 last Wednesday in month — 1949 March 319 42-20 145-50 22-25 0-40 213-5 April 3-21 42-02 152-17 14-68 0-52 212-6 May 310 41-63 154-41 10-52 0-35 210-0 June 3-21 42-26 ! 153-62 7-54 0-61 207-2 July 3-22 42-27 153-61 8-73 0-21 208-0 August 3-23 42-62 146-41 7-41 0-28 200-0 September .. 3-25 42-69 147-36 5-74 0-39 199-4 October 3-49 43-67 148-59 5-67 0-47 201-9 November .. 3-36 44-40 146-62 9-75 0-14 204-3 December .. 3-50 48-75 161-67 7-73 0-42 222-1 1950 January 3-30 44-46 163-11 8-73 0-43 220-0 February 3-33 44-51 174-36 13-85 0-52 236-6 March 3-34 44-30 164-59 34-20 0-62 247-0 * Excluding deposits held at savings-banks, t Excluding balances held by the trading banks. *