8.—16

EXCHANGE BATE The Bank's official buying rate for sterling has been unchanged at £(N.Z.)124 = £(stg.)loo, while 110 official selling rate has been quoted. No alterations were made during the year in the trading banks' telegraphic transfer rates for buying or selling sterling. MANAGEMENT OF PUBLIC DEBT The major loan operation undertaken by the Bank during the year under review was the issue of the 1944: Victory Loan of £(N.Z.)40,000,000. The prospectus was issued 011 the 28th August, 1944, but prior to .that date advance subscriptions to the loan, amounting to £(N.Z.)6,566,415 were in hand. Two stock issues were offered at par for public subscription, the short term being for 2|- per cent, stock maturing 15th February, 1949-50, and the longer dated stock at 3 per cent, maturing 15th February, 1955-58. Subscribers were offered the alternatives of payment in full on application, or payment of 30 per cent, on application with further instalments of 40 per cent, on 22nd November, 1944, and 30 per cent. 011 12th January, 1945. The 1,291 subscribers who availed themselves of the instalment method of payment contributed £(N.Z.)1,113,840 by this means. In addition, investments in the form of Victory Bonds and deposits to National Savings Accounts were offered to subscribers. When the loan closed on the 4th October a total of £(N.Z.)40,740,346 had been subscribed as follows :— Number of Amount. Applications. £(N.Z.) 2| per cent., 15th February, 1949-50, stock .. .. 20,310 11,810,255 3 per cent., 15th February, 1955-58, stock .. .. 20,905 18,338,695 30,148,950 National Savings Bonds and deposits to National Savings Accounts from Ist April, 1944 to 31st March, 1945 .. .. .. .. 10,591,396 £(N.Z.)40,740,346 The magnitude of the sum to be raised made it necessary once again to institute a Dominion-wide campaign. With the Governor of the Bank as Chairman, the National War Loan Council directed the loan organization through the National Savings Committee and the Nations# War Loan Working Committee. District and sub-district committees functioned throughout New Zealand, and the Bank desires to place 011 record its appreciation of the invaluable assistance so wholeheartedly given. Advance Subscriptions to 1945 Victory Loan The Government authorized the reopening of advance subscriptions. 011 the 12th March, 1945, and up to the 31st March, 1945, a total of £(N.Z.)182,440 had been received. The following is a summary of the applications : — Number of Amount. Applications. £(N.Z.) Short term .. .. .. .. .. 10 9,100 Long term .. .. •• ..42 173,340 52 £(N.Z.)182,440 Conversion Loan The prospectus covering the conversion or repayment of the 4 per cent., 15th February 1943-46, stock and debentures, totalling £(N.Z.)9,807,450, was issued by the Bank on the 11th February, 194.4, and the position at the 31st March, 1945, was as follows : — Loan. Number of Amount. Applications. £(N.Z.) 2| per cent., 1949-51 .. .. ■■ 1,092 451,605* 3 per cent., 1960-63 .. .. •• •• 6,994 7,777,560f 8,086 8,229,165 Redemptions .. .. .. . • • 5,343 1,764, 855 13,429 £(N.Z.)9,994,020 * Includes conversion premium of £1 per cent. t Includes conversion premium of £3 per cent. As at the 31st March, .1945, the total amount of the loan, with the exception of £(N.Z.)11,130, represented by outstanding bearer debentures, had been dealt with, and an endeavour is being made to trace the present owners of the debentures in order that repayment may be effected. MANAGEMENT OF STATE ADVANCES CORPORATION OF NEW ZEALAND DEBT A loan comprising 3{ per cent, stock and debentures issued on behalf of the State Advances Corporation of New Zealand matured on the Ist June, 1944. The total of the securities 011 issue was £(N.Z.)291,540, and, acting 011 behalf of the State Advances Corporation, the Bank arranged repayment to all holders.

3