RESERVE BANK

Dominion, Volume 32, Issue 93, 13 January 1939, Page 12

RESERVE BANK

Further Increase In Dairy

Advances

RESERVE RATIO 25.526 PER CENT. Sterling Exchange Under £N.Z.4,000,000 Tiie sterling exchange funds of the Reserve Bunk of New Zealand as at Monday were down below tiie £4,000,000 level in New Zealand currency. The actual figure wan £N.Z.3,933,851, a decrease on the week of £83,381. The proportion of the bank’s reserve to notes and other demand liabilities fell to 25.526 per cent., the statutory limit being 25 per cent. Other features of tjie bunk’s statement are a decline of £367,667 in the note rnsue to £16,127.223, un increase of £437,510 in advances to the Primary Products Marketing Department, which are shown at £6,168,301 and a reduction of £170,000 in tiie advances to the State for "other purposes,’’ which now stand at £10.830,000. The .statement of assets and liabilities of the Reserve Bank as at Monday, January 9, is as follows:— LIABILITIES. £ s. d. 1. General Reserve Fund .1,500,000 0 0 2. Bank notes 16,127,223 0 0 3. Demand Liabilities—(a) State 2,620,590 15 8 (b) Banks 7,381,311 14 6 (c) Other 253,687 18 11 4. Time deposits 5. Liabilities in currencies other than N.Z. currency 1,143 1 8 6. Other liabilities .... 215,232 2 .10 £(N.Z.)28,099,188 13 7 ASSETS. . 7. Reserve— £ s. d. (a) Gold 2,801,791 0 0 (b) Sterling exchange .... ' 3,933,851 8 2 (c) Gold exchange —— 8. Subsidiary coin .. 19-1,400 6 7 9. Discounts — (a) Commercial & Agricultural Bills (b) 'Treasury and Local Body ' Bills 500,000 0 0 10. Advances — < (a) To the State or State undertakings— (i) Primary Products Marketing Dept 6,168,301 5 5 (ii) For other .purposes .. 10,830,000 0 0 (b) To other public authorities (c) Other —— 11. Investments .... 3,603,300 6 2 12. Bank buildings- .. —— 13. Other assets .... 67,544- 7 3 £( N.Z.) 28.099,15 S 13 7 Proportion of reserve (No. 7 less less No. 5) to notes and oilier demand liabilities, 25.526 per cent., compared , with 26.13 per cent, on January 2. and 69.221 per cent, on January 10, 1938. The statutory limit is 25 per cent. Tiie reserve on Monday amounted to £6.734,499, compared with £6,806,068 ou January 2. a decrease of £71,569. On January 10, 1938, tiie reserve totalled £18,949,686. Sterling exchange expressed in New; Zealand currency shows a decrease of £83,381 on tiie week. The total on Monday was £3,933,851, as against £4,017,232. A year ago the bank's sterling funds amounted to £16,147,895 in New Zealand currency. Gold remains unchanged at £2.801,791. Subsidiary coin totals £194,400, an increase of £2302. Treasury bills discounted are unchanged at £500,000. Advances to the Primary Products Marketing Department total £6.168.301, an increase on the week of £437,510. A year ago these , advances totalled £6.243,064. Advances to the State for other purposes amount to £10,830,000, a decrease of £170,000. A year ago these advances totalled £900,000. Investments are unchanged at £3,603,300. Other assets total £67,544, a decrease of £93.525. A further decline of £367,667 is shown in the note issue, which totals £16,127,223. This figure is £1.398,766 in excess of the note issue of £14,72.8,457 on January 10. 1938. Demand liabilities to the State total £2,620,591, nn increase of £629,612. The trading banks’ reserve balances amount to £7,381,312, a decrease of £87,752. Other demand liabilities at £253,688 show an increase of £161.724. j. Liabilities- in currencies other than New Zealand currency amount to £1143, a decrease of £11,812. Other liabilities tola! £215.232, a decrease of £231,199. Tiie statement balances at £28,099,189, an increase of £92,906. Decline In Sterling Exchange. The decline in (lie sterling exchange held by tiie Reserve Bank of New Zealand during tiie last tew months and the decrease in the ratio percentage of reserve to notes and other demand liabilities, are shown in the following table: —

BASE METALS MARKET Prices Generally Firmer Bv Telegraph. — Press Assn. —Copy rlgln. LONDON. January 11. 'rhe olllclnl London (middle) quotations compare with those previously cabled as follows :—

■ Sterling Reserve 1937. exchange. £ (N.Z.) ratio per cent. Dee. 27 1938. 16,992,748 70.323 A ug 29 13,695,000 67.2 Sept. 5 12,639,000 65.847 Sent. 12 12.681,313 66.428 Sept. 19 12,247.006 63.853 Sept. 20 1 1.419.447 60.7S5 Oct. 3 10.594.978 57.259 Get. 10 9.900,233 57.903 Oct. 17 9,118,330 52.27 Oct. 24 8.313.573 18.451 Oct 31 7.707.697 16.09 Nov 7 6.633,031 39.733 <> V 14 . 5.662.977 ■ 36.825 Nov. 21 5,029,137 33.723 Nov 28 4,828,302 32.685 Dee. 5 4.200.856 29 834 I tee. 12 4.572.031 30.333 f tee. 19 4.368.095 28.109 Dee. 26 4.67S.233 27.882 ■In n. 2 ..' 4.017.232 26.13 Jnn. 9 0 3 933,851 25.526 The statutory minimum of th ratio is 25 per cent. c reserve

Jan. 10. 1 Per ton. Jun. 11. Per ton. Copper - e 44 d A.’ S. (1. Standard. spot .. 43 11 3 13 14 4| Ditto, forward ... 13 15 71 <13 10 4fc Elect roly Lie ... .... IS 15 0 •is io o to <10 10 0 40 10 0 Wire burn .... Lead — .... -Ill 10 0 40 10 0 Spot forward Spelter— .... 1-1 13 » 11 10 3 .... 11 18 I* 1-1 8 1J Soot .... 13 0 4/ ; 13 14 4 k forward .... 13 11 11 13 18 1} Spot .... 210 12 11 217 2 0 forward ... 217 12 0 21S 2 (I SilverStandard, an o <. . 20 5-Hid. 20 5-1 Gd. Fine, an oz. . .. 2115 100. 2113-lfld.