8.—16.

Overseas Funds and Balance of Trade. The following table shows the movements during the past eight years to the end of March, 1942 : —

It will be remembered, as was stated in last year's report, that the net overseas assets figure quoted does not represent a freely disposable surplus, as a large proportion of this amount has already been allocated to provide for imports. During the year a sum of £(5tg.)9,980,000 was made available in London to meet charges in respect of the Dominion's war expenses. These amounts are first paid by the British Government and subsequently charged by them to the New Zealand Government. It must be remembered, however, that there is a time lag between payment by the British Government and charging to the New Zealand Government. . Trading Banks. The position of the trading banks as shown by the main items in their monthly returns has been as follows :—

Assets.

Liabilities in New Zealand.

4

(£(N.Z.) Millions.) _ . . at i. » j Balance of Trade End of March. Net Overseas Assets. (Twelve Months). r 1935 .. .. .. 45-2 12-4 1936 .. .. .. 44-1 12-2 1937 .. .. .. •• 34-4 12-6 1938 .. .. .. .. 26-6 6-9 1939 .. .. .. 9-3 3-5 1940 .. .. .. 23'0 14-1 1941 .. .. .. .. 29-8 23-3 1942 .. .. .. .. 30-9 18-6

(£(N.Z.)000.) Deposits at Reserve Total Cash Net 0yer . Qovernme nt Adva » ces Last Monday in Month. Reserve Bank in New seas Aaseta . Securities. J™ d . Bank. Notes. Zealand. Discounts. 1941. March . .. 12,832 4,279 17,860 12,239 15,434 53,680 April .. .. 13,302 4,707 18,758 11,688 18,656 52,253 May .. 13,889 4,455 19,113 11,871 18,655 51,376 June . .. 14,100 4,029 18,904 11,111 18,640 50,219 July .. .. 14,14-0 4,301 19,218 11,396 20,533 48,423 August .. .. .. 12,632 4,204 17,587 10,007 22,333 48,573 September .. .. .. 9,240 4,527 14,525 10,947 23,255 47,810 October . .. 9,163 3,882 13,759 .10,822 23,222 49,460 November .. .. 8,716 4,226 13,749 11,054 23,190 50,151 December 10,719 4,397 15,854 12,009 23,039 50,478 1942. January 14,402 4,622 19,855 12,709 22,903 49,327 February .. . • 21,480 3,945 26,222 12,139 22,694- 47,056 March .. .. .. 16,218 3,955 20,938 12,533 23,733 49,629

(£(N.Z.)000.) Demand Time Total Demand and Last Monday m Month. Liabilities. Liabilities. Time Liabilities. 1941. March . ■ ■ • • 53,682 28,630 82,312 April .. 53,678 28,783 82,460 May .. 53,619 28,762 82,381 June .. 52,552 29,040 81,593 July .. .. •• 52,038 29,317 81,355 August .. .. 51,875 29,145 81,019 September .. .. .. 49,723 29,213 78,936 October .. .. .. 49,593 29,234 78,827 November .. .. 51,326 29,124 80,449 December .. .. 53,976 28,980 82,956 1942. January .. .. •• 57,787 28,954 86,741 February .. ■- 62,151 28,920 91,070 March .. .. •• 61,525 28,420 89,945