8.—16.

Prices. The following comparison of prices at the beginning and end of the financial year, which is based on statistics published by the Government Statistician, shows a more pronounced upward movement generally, and particularly so in the export index, than was the case the previous year.

The rise in the export index is, of course, mainly attributable to the higher prices realized for woel.

Business and Trade. The following statistics, compiled by the Government Statistician, indicate that fhe improvement in business and trade generally, to which reference was made in the Bank's annual report for the previous year, has continued with increased force.

Though doubtless a rise in prices has to some extent accounted for those of the above increases which are expressed in terms of money, the figures nevertheless indicate a material expansion in the actual volume of transactions. Staff. The Board would like to express appreciation of the high quality of the services rendered by the staff generally during the past year. For and on behalf of the Board of Directors— L. Lefeaux, Governor. W. L. Ward, Deputy Governor. 25th June, 1937.

Profit and Loss Account fob Year ended 31st March, 1937. General charges, including salaries, rent, £ s. d. Balance of profit after making provision £ s. d. cost of note-issue, and other expenses 81,775 4 7 for rebate on Treasury bills not yet Staff Superannuation and Provident due, and for sundry liabilities and Fund .. .. .. .. 10,000 0 0 contingencies .. .. .. 238,917 18 1 Balance, being profit for year .. .. 147,142 13 6 £238,917 18 1 1 £238,917 18 1

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(Base 1909-13 = 1000.) Highest and Lowest Index. March, 1936. March, 1937. Increase Point reached during Period. A. Wholesale — Highest. Lowest. Imported items .. .. 1321 1383 5-33 1383 1319 Locally produced items .. 1441 1548 6-98 1553 1441 Combined wholesale index .. 1386 1472 6-2 1472 1386 B. Export prices .. .. 1204 1351 12-21 1388 1193 C. Retail prices .. .. 1429 1538 7-55 1538 1429

! f " ~ ~ ~ " I Percentage Percentage Year ended ! Year ended Increase 1936 Increase 1937 31st March, 1936. 31st March, 1937. as compared as compared with 1935. with 1936. (000 omitted.) Exports (excluding specie) .. .. £(N.Z.) 49,676 £(N.Z.) 60,235 10-6 21-3 Imports (excluding specie) .. .. £(N.Z.) 37,440 £(N.Z.) 47,621 15-0 27-2 Sales tax.. .. .. .. £(N.Z.) 2,468 £(N.Z.) 3,051 13-7 23-6 Bank debits (excluding Government) £(N.Z.)712,809 ; £(N.Z.)874,020 7-1 22-6 Building permits (main towns) .. £(N.Z.) 4,988 £(N.Z.) 5,433 61-3 8-9 Railways— Revenue .. .. .. £(N.Z.) 6,244 £(N.Z.) 6,904 5-7 10-6 Number of passengers .. .. 20,359 21,235 3-6 4-3 Freight tonnage .. .. 6,189 6,814 2-7 10-1 Coastal shipping tonnage .. .. 1,618 1,899 5-3 17-4 Number of motor-vehicles (licensed) .. 228 256 9-0 12-3