RESERVE BANK RETURN

Evening Post, Volume CXXVI, Issue 127, 25 November 1938, Page 12

RESERVE BANK RETURN

STERLING EXCHANGE

A FURTHER DECLINE

MORE GOVERNMENT

BORROWING

Movements in the weekly statement of assets and liabilities of the Reserve Bank of New Zealand, as at the close of business on Monday. November 21, 1938, compared with returns for November 14, show sterling exchange in New Zealand currency now £5,029,137, compared with £5,662,977 for last week, and £16,552,344 a year ago. The statement of the assets and liabilities, all in New Zealand currency, including sterling exchange, is as follows:— LIABILITIES. £NZ s. d. £NZ General Reserve Fund 1,500.000 0 0 l'uc*.arine<l Bank notes .. 14,496,272 0 0 *75,020 Deimiud liabilities— (a) State ... 2,228,333 1 fl i' 364,209 (b) Banks .. 5.546,481 Hll *683,021 (c) Other ... .884,574 3 (I f 168,610 Liabilities in currencies other than N.Z. currency 21,919 1 1 * 1,101 Other liabilities . 164,091 9 3 *2,064 £NZ24,541,701 5 0 *225,749 ASSETS. £NZ s. d. £NZ Reserre — (a) Gold 2.801,791 0 0 Unchanged (b) Sterling exchange ... 5.029,137 3 2 f633,540 Subsidiary coin . 209,312 7 9 {6,913 Advances to State for Primary "Woducts MarKetlng Dept. . 4,699,033 5 2 *630,469 For other purposes 5.500,000 0 0 *20 0,000 Investments ... 3,500,870 16 5 *18,806 Other assets ... 101,359 12 6 *20,228 £NZ24,841,704 5 0 *225,749 tDecrease. *Increase. RESERVE SHRINKING. Proportion of reserve (reserve less liability in currencies other than New j Zealand currency), to notes and other demand liabilities, 33.723 per cent., compared with 36.825 per cent, for the week ended November 14, 1938. The proportion of reserve as at the beginning of each month ior the past j year has been as follows:— 1937. Per cenl. j November 1 76.083 December 6 73.89 1938. January 3 ......~ 70.058 February 7 67.039 March 7 66.019 April 4 75.542 May 2 79-569 June 6 77.906 July 4 76.181 August 1 69.249 September 5 .............. 0d.847 October 3 57.259 October 17 ; 52.27 October 24 48.451 October 31 46.09 November 7 39.733 November 14 ............... 36.825 November 21 33.723 Jho legal limit is 25 per cent. 'Advances to stat^ increase. Advances to the State fbr purposes other than for the Primary Products Marketing Department on September 20, 1937, were £500,000. By- October 17, 1938, they had increased to £5,550,000, and on November 14 they had reached £8,300,000. Advances to the State other than for primary products since September, 1937, have been shown as follows: — 1937. £NZ September 20 500,000 November 1 700,000 December 13 900,000 1938. January 31 1,100,000 February 28 1,300,000 March 14 Nil June 6 300,000 Juno 27 600,000 July 25 » 1,900,000 August 1 /. 2,600,000 September 5 3,050,000 October 3 ."".' 4,575,000 October 31 6,850,000 November 7 8,050,000 November 14 8,300,000 November 21 8,500,000 LONDON FUNDS AT LOW LEVEL. Sterling exchange held as assets by the Reserve Bank of New Zealand foe the past fifteen months as at the first week of the month showed the following variations: — 1937. £NZ August 2 20,876,822 September 13 18,836,037 October 4 17,462,300 November 1 17,148,967 December 6 16,184.928 1938 January 3 16,414,90!. February 7 15,700,699 March 7 15,617,116 April 4 16,169,496 May 2 17,627,443 June 6 17,801,586 July 4 15,941,567 August 1 15,322,308 Septembers 12,638,656 m October 3 10,594,978 October 17 9,118,330 October 24 8,313,575 October 31 7.707,697 November 7 6,633,031 November 14 5,662,977 November 21 5.029,137 LAST YEAR'S RETURN. The return as at November 22, 1937, showed the following:— £NZ General reserve 1,500,000 Bank-notes 13,263.032 Demand Liabilities— State 4,486,959. llanks 7,438,767 Other 553,136 Liabilities in currencies other than N.Z. currency 62,218 Other liabilities 158,607 Reserve — Gold 2,801,791 Sterling exchange 16,552,344 Subsidiary coin 83,464 Advances to State— For dairy purposes 4,585,014 1 For other purposes 700,000 Investments 2.658,32;! I Other assets 51.782 R«3S»rr<. to notes and other demand liabilities 71.943 FRENCH BANK RATE REDUCED (By Telegraph—Press Association—l.'op.v. igtii.t (Received November 25, 10 a.m.) PARIS, November 24. Bank rate reduced from 3 lo 2 1 The rate was raised from 2i per cent, to 3 per cent, on September 27.