RESERVE BANK

Dominion, Volume 30, Issue 153, 25 March 1937, Page 14

RESERVE BANK

Large Reduction in Advances STERLING EXCHANGE HIGHER The weekly statement of assets and liabilities of the Reserve Bank of New Zealand as at the close of business on Monday, March 22, is as follows:— LIABILITIES.

Proportion of reserve (No. 7 less No. 5) to notes and other demand liabilities, 73.178 per cent., compared with 69.95 per cent, on March 15. Several interesting and important changes are shown iu this week’s statement. Sterling exchange has further increased by £576.228 and now stands at £18,805,743. Advances to the State dairy industry account total £6,052,328, a decrease of £60.040. Of the advances to the State for other purposes, £1,000,000 has been repaid, and the item now stands at £SOO,0(H). Advances other than to the State have been reduced by £25,000, leaving £50.000. Gold at £2.801,791 remains unchanged. Subsidiary coin amounting to £155,445, shows a decrease of £947. Investments are unchanged at £2,453,050. Other assets total £85,175, a decrease of £24,230. The note issue shows a further increase of £91.612, the total now being £13,136,937. Demand liabilities to the State total £7.855.545. a decrease of £1.353,087. The trading banks’ reserve balances amount to £8.472,758, an increase of £921,753. Other demand liabilities at £114.030 have been reduced by £2021.582. Other liabilities amount to £.154,231. an increase of £2308. The statement balances at £31.263,531, a decrease of £539,995.

DOMINION RUBBER CO. Increased Production and Costs Dominion Special Service. Dunedin, March 23. Addressing the annual meeting of shareholders iu the Dominion Rubber Company, Ltd., to-day, the chairman of directors, Mr. Hugh Adam, said the year ended November 30. 1936, had been an eventful one for the company, as, in addition to the increase in price from 6d. to Sid. per lb., there had also been an increase in the permissible export quota from 60 per cent., to 65 per cent. The quota had been substantially increased for the first three-quarters of the current year and, according to the latest information, exportable allowances were 75 per cent.. 80 per cent., and 85 per cent, respectively for the quartern ending March, June and September. Later reports indicated that these had been altered to provide for a 90 per cent, release for the June-December period. It was doubtful whether these allowances could be produced during the periods mentioned owing to the low yields obtainable during the second quarter, due to wintering, when the output was always low. Every effort would be made, however, to produce the full allowance over the whole year. Although a rapid advance took place in the price of rubber toward the end of the year, the prices obtained earlier kept the average down to GJd. per lb., while, owing to the lower output due to restriction to 60 per cent, for the first seven months of the year, the output was appreciably lower than for the previous year, with au inevitable increase in cost of approximately Id. a lb. In addition to this increase, income tax this year accounted for approximately Id. a lb.' out of output —an increase of Id. over the charge made in this connection last year. The all-in cost of production for the year, including income tax, was 5.49 d.. against 4_d. for the previous year. Since the commencement of the new year the price of rubber had increased considerably. If the. price did not recede, and they were able to produce the total amount they wore permitted to export, thou the prospects for the current year were brighter than they had been for a number of years past.

1 General reserve fund £ 1.500.0(H) 6 d. 0 2. Bank notes 13,136,937 0 0 3. Demand liabilities — 7,S85,;j4i> 9 9 (b) Banks S,472.788 4 (c) Other 114,030 4 6 4. Time deposits — 5. Liabilities in currencies other than New Zealand currency . . — G. Other liabilities .... 154,230 14 11 £ 31,203,531 11 G ASSETS. 7. Reserve —■ £ s. d. (a) Gold 2,S01,791 0 0 (b) Sterling exeh. 18,805,743 1 4 (c) Gold exeh. .. — 8; Subsidiary coin .. 155,444 16 11 9. Discounts — (a) Commercial and agricultural bills . . —— (bl Treasury and local 1> o d y bills 10. Advances — (a) To the State or State undertakings: (1 ) l5airy industry account .... 6.052.327 IS o (21-For other purposes ... 800.000 0 0 (b) To other publie authorities — (c) Other .... 50,000 > 0 0 11. Investments •••• 2,453,050 0 0 12. Bank buildings ... — 13. Other assets .... 85,174 15 1 £31,203,531 11 6