RESERVE BANK

Auckland Star, Volume LXXIII, Issue 166, 16 July 1942, Page 3

RESERVE BANK

PROFITS FOR STATE BIG RISE IN NOTE ISSUE (0.C.) WELLINGTON, this day. The New Zealand Government benefits to the extent of £344.942, the net profit earned by the Reserve Bank last year and payable to the Treasury in accordance with the bank's charter. The institution also refunded to the Government £6964 in War Loan fees. The bank's annual report has not yet been submitted to Parliament, but from the annual accounts for the year ended March 31 last, some interesting deductions are to be made. The annual profit remains steady. Advances to Government Departments, which total £29,720,632, are £11.294,169 higher than in the corresponding period of last year. Sterling exchange (brought into the balance-sheet on the basis of £124 New Zealand to £100 stei--ling) is higher to the extent, of one million, the total being £18,536,506. The bank's gold holdings remain stationary at a face value of £2.501.5< On the liability side of the balancesheet, it is shown that demand liabilities, State, at £17,544.332, have increased by £11.274.781. and that the liabilities to the trading banks totalled £16.710,266 at March 31. having risen in a year to the extent of £3,866,496. The Avar-time change in the note issue is significant. In the 1939 bal-ance-sheet, the note issue w r as just over 15 i millions, but to-day it stands at over 24 millions. The rise during the past year amounted to £2,704,232.