RESERVE BANK

Press, Volume C, Issue 29466, 18 March 1961, Page 4

RESERVE BANK

Effect Of Tax Payments

Large movements in the Reserve Bank return for the week ended March 15 are mainly explained by tax payments made the previous week. March 7 was the last day for payment of income tax by self-employed persons, and the full effect of these transfers from the private to the public section is apparent in the following week’s return. Reflecting the drop in their customers' credit balances, trading banks’ deposits with the Reserve Bank fell £30.4m. The trading banks’ reserve ratios were reduced and the banks were not required to borrow to increase their deposits with the bank. The Reserve Bank’s advances to the State fell £29.9m, while the State’s deposits rose £2.7m—a net reduction in Government indebtedness of £ 32.6 m. Main items from the latest week’s return, with the previous week’s figures, are as follows:

Liabilities Mar. 15 Mar. 8 £000 £000 Bank notes 83.865 83,497 Demand Liabilities— State 15.490 12,827 Marketing 1,445 1,451 Tr. banks .. 50.832 81,196 Other 791 4,239 Assets ReservedGold 315 315 Sterling ex. 6,864 6.066 Other ex. 634 408 Investments— Overseas 33.297 33.297 In N.Z. 71.306 71,306 AdvancedState 8.264 38,166 Market, orgns. 36407 37,417 Other .. ___ .. ■. Other Assets— Geld 5.848 B.M8 Other 1,171 1.751