RESERVE BANK OF NEW ZEALAND ANNUAL REPORT OF THE BOARD OF DIRECTORS AND STATEMENT OF ACCOUNTS FOR THE YEAR ENDED THE 31st MARCH, 1944

Appendix to the Journals of the House of Representatives, 1944 Session I, B-16

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1944 NE W ZEAL A N D

RESERVE BANK OF NEW ZEALAND ANNUAL REPORT OF THE BOARD OF DIRECTORS AND STATEMENT OF ACCOUNTS FOR THE YEAR ENDED THE 31st MARCH, 1944

Presented, to both Houses of the General Assembly, pursuant to Section 20 of the Reserve Bank of New Zealand Amendment Act, 1936

ANNUAL REPORT To the Hon. the Minister of Finance The Board of Directors presents hereunder the report on the operations of the Reserve Bank during the financial year ended 31st March, 1944. Mr. W. F. L. Ward, who since the Ist May, 1941, had been Acting-Governor of the Bank, was appointed Governor as from the Ist February, 1944, by Order in Council issued pursuant to section 25 of the Reserve Bank of New Zealand Act, 1933. The net profit for the year, after making provision for depreciation and contingencies, amounted to £476,473 6s. lOd. This amount has since been paid into the Public Account to the credit of the Consolidated Fund. BALANCE-SHEET The principal changes in the balance-sheet as at the 31st March, 1944, compared with that of the previous year, were as follows :— Liabilities Bank Notes The notes outstanding at 31st March, 1944, amounted to £36,254,494 10s., an increase of approximately £5-9 millions for the year. Notes outstanding have increased every year since the Bank commenced business. The increase during the year under review is due in varying degree to the factors mentioned in last year's report—namely, full employment, high wages, overtime, the pay of the Services, and the presence of American troops in New Zealand—and, in addition, it is known that notes are being hoarded. Demand Liabilities (i) State.—Deposits under this heading declined by approximately £2-0 millions from £15-6 millions at the 31st March, 1943, to £13*6 millions at the 31st March, 1944. The decline was due largely to decreases in the accounts held in the Public Account and the Post Office Account. (ii) Banks. —The increase of approximately £8-6 millions during the year to a total of £28,724,627 9s. 9d. in the deposits of the trading banks is due, in the main, to lower purchases of sterling from the Reserve Bank than in the previous year, Government expenditure of loans provided by the Bank, and the surplus of overseas receipts. Assets Sterling Exchange The figure of £27,962,535 14s. lid. at the 31st March, 1944, is an increase of approximately £9 millions for the year. So far as New Zealand as a whole is concerned, this increase is largely offset by a decline in the trading banks' net overseas assets for the year. The total of the Reserve Bank's sterling exchange and the trading banks' net overseas assets as at the 29th March, 1943, was £37,069,500, and at the 27th March, 1944, £39,332,114.

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Advances to the State or State Undertakings (i) Marketing Department.—Advances under this heading declined during the year bv £2,576,340 7s. Id. The Marketing -Department has a number of accounts with the Bank. The figure given above represents the total of those accounts in respect of which advances have been made. Those accounts which have credit balances are not shown separately, but are included under the heading " Demand Liabilities—State.'' During the last six months of the year under review the credit balances in the Department's accounts exceeded the advances outstanding. (ii) Other Purposes—-The amount outstanding at the 31st March, 1944, is £35,885,000, this being an increase of £4-75 millions for the year. The rates for accommodation granted to the State or State undertakings remained unchanged throughout the year, as follows :— Per Cent . Marketing Department— Per annum. First £5,000,000 .. .. .. .. .. .. \ Thereafter .. .. .. .. .. ~ ]1 General Purposes Treasury Bills-— First £5,000,000 .. .. .. .. .. .. i Thereafter .. .. .. .. .. .. ]| INVESTMENTS The figure of £11,743,428 12s. Bd. is an increase of £1,448,593 2s. 2d. for the year. This is due almost entirely to the purchase of New Zealand Government Stock in London by the Bank in connection with the Sterling Loan totalling £7,339,656 and bearing interest at 44 per cent, which matured on the Ist March, 1944. A conversion offer was made for this loan, but no new cash subscriptions were invited. Arrangements were made with the British Government, through the Bank of England, whereby any unconverted portion of the loan should be repaid on maturity date. As the unconverted portion, however, amounted to only approximately £1-3 millions sterling, the Bank provided the sterling and' took up Stock to that amount. Having regard to all the circumstances, the conversion is regarded as most successful. DISCOUNT RATE The minimum rate for the discounting of approved bills of exchange has remained unchanged since 26th July, 1941, at 1| per cent. EXCHANGE RATE No alteration was made in the Bank's official buying rate for sterling, and no official selling rate was quoted. MANAGEMENT OF PUBLIC DEBT During the year under review two major loan operations were undertaken by the Bank—the 3rd Liberty Loan and a Conversion Loan. 3rd Liberty Loan The Government decided that, for the financial year ending 31st March, 1944, the amount to be raised by loans would be £50 millions. Of this amount, £10 millions was estimated to become available for investment from Government Departments, leaving £40 millions to be raised by public war loans, including National Savings. It was realized that, to obtain this sum, it would be necessary to institute a national campaign on a scale not previously undertaken, and accordingly a National War Loan Committee was set up comprising representatives from institutions and associations of a national character, with the.Governor of the Bank as' Chairman. Prior to the announcement of the loan two conferences were held in Wellington, the first a conference of delegates from the District National Savings Committees, the second a conference of delegates from the Loan Committees set up in the various districts in connection with the 2nd Liberty Loan. At these conferences it was arranged that the Committees should combine their efforts and work in conjunction with each other during the period of the loan ; and as a result, very strong regional committees operated in every centre of importance throughout the country. On Bth June the prospectus for the Loan was issued. Thirty-five million pounds was offered for subscription in the form of either — (1) New Zealand Government Stock authorized under the New Zealand Loans Act, 1932 ; or (2) Investment in National (War) Savings Bonds and National (War) Savings Accounts authorized in accordance with the National Savings Act, 1940. It was anticipated that the balance of £5 millions required would be obtained through over-counter sales later in the year, or by means of advance subscriptions to the next War Loan.

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The following Stocks were offered at par:— 2| per cent. Stock repayable 15/6/1947-49. 3 per cent. Stock repayable 15/12/1953-56. Three options were provided with regard to Stock applications :— (a) Payment in full at time of application; or (b) £30 per cent, on application, £30 per cent, on 25th August, 1943, £40 per cent, on 6th October, 1943 ; or (c) £30 per cent, on application, £10 per cent, on 11th August, 1943, £10 per cent, on the 11th day of each succeeding month up to and including the 11th February, 1944. Interest was payable on all applications as from the date the deposits and instalments were received. Bonds were issued under the National Savings Scheme in the following denominations : £1, £10, £100; and all depositors to National Savings Accounts received on their deposits interest at 3 per cent., those deposits made prior to Ist July, 1943, being repayable on the 30th June, 1945, and those made on or after the Ist July, 1943, on the 30th June, 1946. The Bank had been authorized to accept advance subscriptions to the War Purposes Loan from the Ist February, 1943, and this arrangement received widespread support, particularly from those persons and institutions in receipt of regular investment income. The response to the loan was most satisfactory, the amount of £35 millions set out in the prospectus being over-subscribed to the extent of approximately £5 millions. The subscriptions were as follows :—- Stock—• £ 2J per cent., 1947-49 .. .. .. .. .. 12,605,565 3 per cent., 1953-56 .. .. .. .. .. 17,221,035 National SavingsBonds .. .. .. .. .. .. 2,134,277 Deposits, &c. .. .. .. .. .. .. 7,315,863 £39,276,740 The figures for National Savings included estimated receipts from the date of the closing of the loan up till the 31st March, 1944, at £2,250,000; but this figure was exceeded, the total deposits for the year, including proceeds from the sale of Bonds, being £10,404,097. Individual subscribers for Stock numbered 63,501, and it was estimated on a conservative basis that purchasers of Bonds and depositors in National Savings Accounts numbered 368,000, making an. estimated total of 431,000 supporters of the loan. The work carried out by the Committees throughout New Zealand was of the highest order, and the Board desires to place on record its appreciation, of the efforts of all Committees, institutions, organizations, and individuals whose sterling work and help played such a great part in the success achieved. During the loan campaign the Minister of Finance stated that any over-subscription would be used by the Government to repay a portion of the amount owing in London under the Memorandum of Security. This was done, and a further £5 millions was required to complete the Government's borrowing programme for the year. The Bank, therefore, was authorized on the 19th October, 1943, to continue sales of the 3rd Liberty Loan Stock, and up to the 18th March, 1944 the date on which the sales were discontinued—a further £5,139,010 had been received. Conversion Loan Ihe Government gave notice, in the New Zealand Gazette, of its intention to exercise its option to repay on the 15th May, 1944, the £9,807,450 4-per-cent. Stock and Debentures maturing on the 15th February, 1943-46. The Bank issued, on the 11th February, 1944, a Conversion Loan prospectus inviting holders of the Stock to apply for conversion of their holdings as from the 15th May, 1944, into either— 2§-per-cent. Stock maturing 15/4/1949-51, with a premium of £1 per cent. ; or 3 per cent. Stock maturing 15/4/1960-63, with a premium of £3 per cent. Interest on the old Stock is payable up to the 15th May, 1944, after which date interest ceases. The premiums of £1 per cent, and £3 per cent., respectively, on the nominal amount of securities tendered for conversion will be met by the issue of securities in the new loans for amounts of £5 or multiples thereof. Fractional amounts of £5 will be paid in cash on the conversion date. Securities not converted are repayable at par on the 15th May, 1944. Owing to wartime difficulties, a proportion of the holders of the Stock were unable to notify the Bank of their intentions regarding the conversion prior to the closing date stipulated in the prospectus, but at the 31st March, 1944, the position was as follows : — Loan. Number of Applications. Amount. £ 2fper-cent„ 1949-51 .. .. .. .. 970 404,850 3-per-cent., 1960-63 .. .. .. .. 6,851 7,241,620 7,821 7,646,470 Redemptions .. .. .. .. 3,728 1,290,235 11,549 £8,936,705

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EXCHANGE CONTROL The following table gives a classification of foreign exchange transactions for the years ended 31st March, 1942, 1943, and 1944 :—

Summary of Transactions

* Previously included in " Unclassified." The most notable feature in this table is the increase in receipts on account of American Authorities and personnel. This has arisen as a result of the presence in New Zealand of American servicemen. The procedure for licensing of overseas trade has not been amended during the year, though bulkbuying o,f goods by the Government has increased. The administration of the Finance Emergency Regulations 1940 (No. 2) has continued to operate smoothly. TRADING BANKS The position of the trading banks, as shown by the main items in their monthly returns, has been as follows :—

Assets

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(£(N.Z.)000) _ Year «"ded 3lBt March, Year ended 31st March, fl*ceipts ' "" Payments. 1942. 1943. 1944. 1942. 1943. 1944. In respeot of— In respect of— Exports .. .. .. 72,774 80,885 74,118 Imports, excluding payments 39,023 33,103 30,837 Interest, dividends, legacies, 4,231 4,330 4,901 in respect of Government immigrants' funds, repatri- imports and in respect of ated capital, and private goods imported prior to debts due in New Zealand introduction of licensing Trade debts due in New Zea- 2,897 3,(587 3,216 system land, including overseas earn- Interest, dividends, legacies, 3,782 3,643 3,778 ings of New Zealand firms emigrants' funds, repatriCommissions, royalties, and 160 252 250 ated capital, and private insurance debts due overseas Donations and allowances .. 431 290 350 Trade debts due overseas, 2,294 3,445 2,372 Travellers' expenses .. 268 493 194 including earnings in New Receipts on account of Ameri- .. 5,057 16,440 Zealand of overseas firms can Authorities and personnel and payments in respeot of Becoipts by High Commissioner .. 599* 4,081* goods imported prior to in London introduction of licensing Unclassified .. . . 504 395 294 system 1 Government debt and other 34,501 46,981 48,787 services, including payments in respect of imports Local-body-debt services .. 1,800 2,013 1,414 Commissions, royalties, and 549 922 840 Insurance Donations and allowances .. 606 565 787 Film hire and entertainments 226 794 619 I Travellers' expenses .. 198 72 113 American Authorities and per- .. 1,832 6,318 sonnel Unclassified . . .. .. .. 403 81,271 05,997 103,844 83,579~ ~93,370 96,272~

(£(N.Z.)000) _ _ Deposits at ; Reserve Total Cash , T , n „ , Advances Last Monday in Month. Reserve ! Bank in New Net Ove*- Government ■ Bank. Notes. Zealand. seafl Assets. Secunt.es. DJ8COunta 1943 March .. .. .. 19,682 4,172 24,446 14,852 36,166 44,931 April .. .. .. 26,168 3,901 30,536 13,644 36,159 42,625 May 32,762 4,398 37,700 11,937 36,158 11,692 June .. .. .. 30,111 4,837 35,458 10,502 36,158 42,022 •My .. .. .. 25,303 4,973 30,942 8,805 36,236 42,119 August .'. .. .. 27,871 4,556 33,166 8,651 36,142 42,157 September .. .. .. 30,522 4,562 35,834 9,254 36,142 42,141 October .. .. .. 29,214 4,397 34,287 9,525 36,143 44,042 November .. .. .. 28,313 5,685 34,738 9,612 36,143 45,415 December .. .. .. 33,337 4,361 38,250 9,236 36,142 44,741 1944 January .. .. .. 37,925 5,338 44,027 9,713 36,142 44,496 February 39,053 5,691 45,503 10,930 36,142 43,256 March 29,890 5,060 35,683 11,584 36,142 46,896

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Liabilities in New Zealand

The most marked change during the year was shown in deposits at the Reserve Bank, the figure for which rose from £19,682,000 at March, 1943, to £39,053,000 at February, 1944. During March, 1944, when income-tax was payable, deposits declined to £29,890,000 as at the last Monday in the month. This represented an increase of 51-9 per cent, for the year. Rankers' cash, comprising the trading banks' deposits at the Reserve Bank and their holdings of notes and coin, increased by £11,237,000 during the year, a net increase of 46-0 per cent. There was a sharp decline in the figures for net overseas assets from £14,852,000 at 29th March, 1943, to £8,651,000 at 30th August, 1943, the lowest figure recorded since January, 1940. From August, 1943, however, net overseas assets rose steadily, reaching the total of £11,584,000 at 27th March, 1944, leaving a net decrease of £3,267,000 for the year. Government securities remained steady throughout the year, showing only a small decrease of £24,000 from the figure of £36,166,000 as at 29th March, 1943. The decline in advances and discounts recorded in the two previous financial years did not continue, a net increase of £1,966,000 being shown for the year. The ratio of advances and discounts to total demand and time liabilities fell from 42-5 per cent, at March, 1943, to 40-8 per cent, at March, 1944. On the liabilities side both demand and time liabilities showed an upward trend, demand liabilities having the widest fluctuations, the lowest figure being £72,710,000 as at 26th July, 1943, and the highest being £89,369,000 as at 28th February, 1944. The fall in June and July was attributable to subscriptions by the public to the War Loan being paid over to the Reserve Bank. The net increase of 10-3 per cent. (£7,952,000) for demand liabilities for the year ended March, 1944 continues the upward trend of the previous year, when a net increase of 254 per cent. (£15,614,000) was recorded. Total demand and time liabilities, which stood at £114,814,000 at 27th March, 1944, showed a net increase of £9,115,(XX) over the corresponding March, 1943, figure of £105,698,000. MONEY SUPPLY IN NEW ZEALAND The following tables set out in detail the changes that have occurred in the amount of money in actual circulation in New Zealand in the form of coin, notes, and demand deposits of the Reserve Ba.uk and the trading banks since 1939 Volume of Money in Circulation in New Zealand in the Form of Coin, Notes, and Bank Demand Deposits* (Last Monday in December) rr 7 /• 7i ir

Volume of Money

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(£(N.Z.)000) r i.»« j • ht i.u Demand Time Total Demand and Last Monday m Month. Liabilities. LiabiUties. Time Liabilities. 1943 March .. .. .. 77,139 28,559 105,698 April .. .. .. 81,329 28,696 110,025 May .. .. .. 83,165 29,060 112,225 June .. .. .. 78,993 29,041 108,033 July .. .. .. 72,710 28,772 101,482 August .. .. .. 75,502 29,196 104,698 September .. .. .. 78,528 29,693 108,221 October .. .. .. 78,184 29,719 107,903 November .. .. .. 79,212 29,561 108,774 December .. .. .. 84,130 29,981 114,111 1944 January .. .. .. 88,515 29,568 118,083 February .. .. .. 89,369 29,760 119,129 March .. .. .. 85,091 29,723 114,814

(£(N.Z.) millions) 1939. 1940. 1941. 1942. 1943. Coin (estimated) .. .. 1-7 1-8 1-9 2-4 2-6 Notes held by public .. .. 15-6 17-4 20-2 27-1 33-4 Demand deposits at — (a) Reserve Bankt •• .. 2-9 8-4 9-2 11-4 17-0 (b) Trading banks} .. .. 41-3 49-7 54-0 70-9 84-1 Total .. .. .. 61-5 7T-2 85-3 111-8 137-1 Change during year .. .. +15-7 +8-1 +26-5 +25-3 For notes see page 0.

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Causes of Changes in Volume of Money

Changes in Volume of Money 1939-48. Coin (estimated) .. .. .. .. ... -J-1 - 0 Notes held by public .. .. .. .. +17-7 .Demand deposits at— (а) Reserve Bankf .. .. .. +14-1 (б) Trading banksj; .. .. .. .. .. +42-8 TotaJ •• • • .. .. +75-6 Causes of Changes in Volume of Money 1939-43. Overseas transactions! ~ .. .. .. +27-0 Bank credit:— Reserve BankAdvances .. .. .. .. .. _ +18-7 Investments .. .. .. ~ .. +7-0 Trading banks— Advances .. .. .. ~ ~ 0. Investments .. .. .. -f-22-5 Shift from time to demand deposits at trading banks| | .. .. 4-1-9 Other items .. .. .. .. 4-4-9 Total .. .. .. .. .. _ _j_7s. g Notes * Kxcludes deposits held at savings-banks. f 1.e., Government and other demand deposits at Reserve Bank, excluding trading banks' balances at Reserve 13ank. | 1.e., trading banks' total demand liabilities in New Zealand. r . §As shown by changes in Reserve Bank's sterling exchange and trading banks' assets overseas in respect of New Zealand business, less overseas liabilities. Plus sign indicates that overseas exchange receipts exceeded disbursements and minus sign indicates an excess of disbursements. || Minus sign indicates shift from demand to time deposits. As indicated by these tables, the amount of immediately available spending-power in the form of coin, notes, and bank deposits increased by £(N.Z.)75-6 millions during the four-year period 1939-43. The three principal causes of the increase are— (a) Receipts from overseas in excess of payments overseas amounting to £(N.Z.)27 milling (b) Net increase in trading banks' advances and investments, £(N.Z.)16-2 millions. (c) Net increase in Reserve Bank advances and investments, £(N.Z.)25-6 millions. Notwithstanding the feet that a high degree of success has been achieved in implementing the policy of meeting w<u expenditure out of taxation and loans from genuine savings, there has been an increase of- £(N.Z.)41*8 millions, or 45 per cent., in the combined advances and investments of the Reserve Bank and the trading banks since the end of 1939. Oi the £(N.Z.)137 millions of immediately available spending-power in December, 1943, the Government held £(N.Z.)17 millions on current deposit at the Reserve Bank and also a proportion of the coin and notes in active circulation. The balance, amounting to probably more than £(N.Z.)125 millions, was in the hands of the general public and constituted a potential immediate demand for locally produced and imported goods and services.

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1939-40. 1940-11. 1941-42. I 1942-43. Overseas .. .. .. -|-7-6 +1-9 +15-3 +2-3 Bank credit — Reserve Bank— Advances .. .. .. .. +4.4 _i-5 +3.3 +12-5 Investments .. .. .. -f-0-4 .. -j-0-6 +5-9 Trading banks— Advances .. .. .. .. -.3.1 +2-4 —6-5 +0-8 Investments .. .. .. +2-5 +5-9 +11-4 +2-7 Shift from time to demand deposits at trading -j- 2-5 +0 ■ 4 +0-2 —1-2 banks|| Other items .. .. .. .. +1-4 -1-0 +2-1 +2-4 Change during year .. .. +15-7 +8-1 +26-5 +25-3

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With the inevitable diversion of resources to war requirements, the quantities of goods available for civilian consumption have been considerably reduced, and the expansion of spending-power has in New Zealand, as in other countries, created difficult problems of price stabilization. When the time arrives that a wider range of commercial imports becomes more readily available, some of the expanded spending-power will, presumably, be absorbed in a net outflow of money 011 account of overseas business, thus simultaneously reducing the amount of money in circulation in New Zealand and increasing the supply of goods, and thereby lessening the gap'between spendingpower and available commodities. No doubt, also, the wise use of productive resources will make possible larger supplies of locally produced goods for civilian consumption when the demands of war have ceased. Nevertheless, in spite of these considerations, the greatly expanded volume of money in circulation is a factor to be taken into account in considering any plans for the full use of material and human resources during the remainder of the war period and in the preservation of economic and financial stability in the post-war period. It is essential in the interests of maintaining economic stability that, as far as possible, war expenses should be defrayed from the proceeds of taxation, which should be as high as practicable, and from loans derived from genuine savings, thus minimizing the danger of expansion of credit which is common to countries at war and is in practice unavoidable. Provided the Government's sound policy of economic stabilization involving controls over prices, costs, wages, &c., is lully maintained, and the surplus spending-power prevented from pervading the whole price structure, the existing supply of money in New Zealand is more than adequate for the financing both of our war effort and of al I the activities that can be diverted from war purposes to supplying essential civil requirements. In view of the well-recognized fact that a superabundance of money in relation to available goods and services exerts an upward pressure on prices and a downward pressure on the purchasing-power of the money, it follows that (apart from temporary finance against Government revenue) any further increase of money in circulation through the medium of credit creation could not fail to accentuate the wartime difficulties of maintaining the financial structure of the country on a safe and strong foundation. Whole-hearted support by every member of the community of every measure which is designed to utilize the money which is already in existence for all necessary war and civil purposes will bring its reward in a measure of financial and economic stability which will thoroughly justify any immediate sacrifice involved. STAFF Ihe staff: at the 31st March, 1944, totalled 285, of whom 143 were temporary employees. During the year 8 returned to duty, having been discharged from the Armed Forces. There are 30 men and 1 woman absent on war leave—B in the Navy, 14 in the Army, and 9in the Air Force. The growing volume of central bank business, arising particularly out of war requirements, has placed an added strain on all departments of the Bank, involving long hours of work, and the Board desires to place on record its great appreciation for the consistently high standard of performance of the staff throughout the year. For and on behalf of the Board of Directors : W. F. L. Waed, Governor. , , E. C. Fusseia, Deputy Governor. I.6th June, 1944.

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RESERVE BANK OF NEW ZEALAND Profit and Loss Account for the Year ended 31st March, 1944 Dr. £ s. d. Or. £ s. d" General charges, including salaries, rent, Balance of profit after making provision cost of note issue, and other expenses 221,890 13 9 for rebate on Treasury Bills not yet duo, Balance, being profit for year .. .. 476,473 6 10 and for sundry liabilities and contingencies .. .. .. . . 098,3ti4 0 7 £698,364 0 7 £698,364 0 7 Profit and Loss Appropriation Account Dr. £ s. d. Cr. £ s. d. Payments to New Zealand Government in Balance as at Ist April, 1943 .. .. 379,118 11 1 terms of section 30 of Reserve Bank of Balance from Profit and Loss Account .. 476,473 0 10 New Zealand Act, 1933 .. .. 379,118 11 1 Balance .. .. 476,473 610 £855,591 17 11 £855,591 17 11 Balance-sheet as at 31st March, 1944 Liabilities £ s. d. Assets £ s. d. General Reserve Fund .. .. 1,500,000 0 0 Gold (at face value) .. .. 2,801,877 10 0 Banknotes .. .. .. 36,254,494 10 0 Sterling exchange .. .. 27,962,535 14 11 Demand liabilities:— Subsidiary coin .. .. .. 60,788 8 4 (a) State .. 13,550,448 12 6 Advances to the State or State under(b) Banks .. .. .. 28,724,627 9 9 takings— (c) Other .. .. 529,579 2 3 (1) Marketing Department .. 1,643,272 16 1 Liabilities in currencies other than New (2) For other purposes .. .. 35,885,000 0 0 Zealand currency .. .. 01,342 8 6 Investments .. .. .. 11,743,428 12 8 Other accounts .. .. .. 1,644,244 17 0 Other assets .. .. .. 2,644,307 410 Profit and Loss Appropriation Account 476,473 6 10 N.B. —Holdings of sterling have been converted into New Zealand currency at the rate of £100 sterling equals £124(N.Z.). £82,741,210 0 10 i £82,741.210 6 10 ■ I W. F. L. Ward, Governor. E. C. Fussell, Deputy Governor. W. R. Eggers, Chief Accountant. Auditors' Certificate ami Report.—We liave audited the balance-sheet as at 31st March, 1944, above set forth and have obtained all the information and explanations we have required. We have accepted the certificate of the Bank of England as to assets held on account of the Reserve Bank of New Zealand. In our opinion the balance-sheet is properly drawn up so as to exhibit a true and correct view of the state of the affairs of the Bank as at 31st March, 1944, according to the best of our information and the explanations given to ns and as shown by the books of the Bank. T G -' loHNSrtoN \Public Accountants, Auditors. J. L. Griffin J Wellington, New Zealand, 26th June, 1944.

Approximate Cost of Paper.—Preparation, not given ; printing (540 copies), £15.

Authority: E. V. Paul, Government Printer, Wellington. —1944,

Price t.'id.)

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