.—l6l

Post Office Savings Bank. In spite of the calls made on the public by way of taxation, savings certificates, war loans, and patriotic appeals, the deposits in the Post Office Savings Bank showed steady improvement throughout the year. (£(N.Z.) millions.)

Prices and General Business Conditions. The principal price indices have fluctuated during the year under review as follows (1926-30 = 1000.)

According to the above, indices the price increases recorded have been small, except in the case of imported goods ; the rise in the latter was, of course, mainly responsible for the rise m the wholesale-price index under the heading " All Groups." Thus it is seen how the Dominion s internal price structure has been affected both by wartime costs of production m overseas countries, particularly the United Kingdom, and by increased freight and insurance charges arising from the same cause. On the whole, business has been maintained on a fairly high level of activity. Aggregate incomes and the value of production have increased, while the value ot domestic trade as shown by sales-tax receipts, has remained steady. But as the value of domestic trade is expressed in higher prices (the causes for which have already been referred to), it follows that the volume has shown a decline. ... t -i n The diversion of a considerable proportion of the national income and of available man-power towards production of capital goods and equipment for war purposes, coupled with the withdrawal of large numbers of men from civil life into the armed forces, cannot fail to involve a decline m the normal consumption of goods and services. . .' , In these circumstances the maximum possible contribution by members of the community to war loans, including National Savings Accounts, would not only have the effect of helping the Empire s war effort, but in addition would enable the financial structure of the Dominion to bear the inevitable strain of war. conditions with the minimum disturbance of prices. Staff. At the 31st March the permanent male staff numbered 68. Of this number '20 have proceeded or are proceeding overseas in the Royal Navy, the N.Z.E.F., and the R.N.Z.A.F. ,5 are on full-time home defence- 10 are in the National Military Reserve and the Territorials, lractieally without exception the remainder of the male staff (including 7 juniors who are still ineligible for the Territorials and a number of others who are medically unfit for overseas or home service) are undertaking duties in the Home Guard and the Emergency Precautions Scheme: A number of the female staff are undergoing training in nursing and other war services.

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i wii i i Excess Credit Year ended 31st March, Deposits. i Withdrawals. Deposits. Balances. I mr, . .. '24-2 ! 20-9 3-2 ! 49-4 iqo a " " .. 25-6 : 23-5 2-1 52-9 qo? .. 30-7 27-0 3-6 j 58-1 1938 " .. 33-0 29-6 3-4 63'1 iqqq " . 30-4 34-6 —4-2 60-7 iq4Q ; .. 25-2 29-5 | -4-3 58-0 19 4X .. .. .. .. 28-6 25-3 1 3-3 63-0

Retail. Wholesale. Kxport. All Imported Locally Pro- All tood. Groups. Items. dueed Items. Groups. 1940 March .. 1007 1060 1012 1218 1073 1158 A-nrii 1010 1073 1017 1236 1090 1175 J, lv ■ 996 1078 1029 1248 1096 1185 r.''I 995 1071 1026 1263 1089 1190 Tulv " " " 1000 1074 1027 1292 1083 1205 August " " ■ ■ 988 1070 1042 1334 1073 1225 September" ' .. 995 1095 1050 1351 1077 1236 Sober 991 1087 1048 1380 1075 1253 November " .. 998 1087 1054 1383 1083 1258 December 975 1084 1053 1390 1099 1268 1941 Tanuarv ' ' 1002 1076 1050 1406 1091 1274 February " " •• 992 1077 1056 1410 1099 1280 March " .. 986 1081 1057 1416 1110 1288 Change for year (per cent.) .. J -2-l +2-0 +4-4 +16-3 +3 4 +11 2