B—l6

Classification of Trading Banks' Advances as at the Last Balance Day in March (£000)

NET OVERSEAS ASSETS On the last Wednesday in March, 1948 (31st March), the net overseas assets held by the New Zealand banking system on account of New Zealand business totalled £B4-9 millions, while on the last Wednesday in March, 1949 (30th March), the figure had fallen to £67-4 millions, a decrease of £l7-5 millions during the year. This reduction is due almost entirely to the exchange rate appreciation which occurred on 19th August, 1948. The following table shows changes in the amount of the net overseas assets of the banking system during the year ; columns " A," " B," and " C," being expressed in sterling, and column " D " in New Zealand currency.

Net Overseas Assets* (Reserve Bank and Trading Banks)

* Reserve Bank's sterling exchange and trading banks' assets overseas in respect of New Zealand business, less overseas liabilities. t On and after 20th August, 1948, overseas assets and liabilities converted to New Zealand currency at rate : £(stg.)loo = £(N.Z.)IOO.

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— 1946. 1947. 1948. 1949. Farmers 19,308 21,626 20,030 19,313 Dairy companies, freezing-works, &c. .. 8,582 8,847 8,255 9,212 Other manufacturing and productive 8,867 12,968 20,159 23,002 industries Merchants, wholesalers — (a) Mainly importers 2,455 4,262 7,962 5,925 (6) Others 919 1,402 4,924 2,155 Ketailers 3,071 4,645 9,505 7,659 Transport 875 1,250 1,752 1,893 All others 13,724 17,637 19,933 19,586 Total advances 57,801 72,637 92,520 88,745

Reserve Bank Trading Banks Total Total Last Wednesday in Month. (£(stg.)000). (£(8tg.)000). (f(stg.)OOO). (£(N.Z.)000). "A" "B" " C " "D" 1948 March 55,687 12,794 68,481 84,916 April .. 61,234 12,128 73,362 90,969 May 63,007 11,824 74,831 92,791 June 64,119 13,040 77,159 95,677 July 62,310 11,966 74,276 92,103 August f .. 63,464 8,863 72,327 72,327 September 53,643 9,715 63,358 63,358 October 47,328 9,886 57,214 57,214 Ndvember 41,521 12,273 53,794 53,794 December .. 43,331 13,203 56,534 56,534 1949 January 43,402 14,038 57,440 57,440 February 47,028 15,536 62,564 62,564 March 50,697 16,749 67,446 67,446