RESERVE BANK

Dominion, Volume 32, Issue 180, 28 April 1939, Page 12

RESERVE BANK

Decrease In Sterling Exchange DAIRY ADVANCES HIGHER Reserve Ratio, 25.11 Per Cent. A fall of £213,757 brings the total sterling exchange funds of the Reserve Bank of New Zealand down to £4,6y9,061. Lbc bank’s uet overseas assets at £4,b31,J0J are lower by £216,894. The proportion of reserve to notes and other demand liabilities on Monday was 25.11 per cent., compared with 81.667 per cent, a year ago Advances on dairy produce total £7 609.484, au increase on the week ot £329,731. Advances to the State for “other purposes” are unchanged at £12.075 600. The State's total indebtedness to the bank is thus £19,684,484. lhe note issue is at the high_level of flu,Gob, 762, au advance of £217,980. The statement of assets and liabilities of the Reserve Bank as at the close or business on Monday, April 24, is as follows : —\

Proportion of reserve (No. 7 less No. 5) to notes and other demand liabilities, 25.11 per cent., compared' with 26.305 pet cent, on April 17, and 81.667 per cent, on April 25, 1938. The reserve on Monday amounted to £7,433,700, compared with £7,650,594 on April 17, a decrease of £216,894, On April 18. 1938, the bank's reserve stood at £21,128,478. . Sterling exchange, expressed m New Zealand currency, totalled' on Monday £4.659,061, compared with £4,873,51S on April 17, a decrease of £213,757. There were liabilities in currencies other than New Zealand, amounting to £27,152 (an increase of £3137), thus reducing the bank’s net overseas assets to £4,631,909, a decrease on the week of £216,894. A year ago, the bank’s overseas assets totalled £18,326,687. Gold remains unchanged at £2,801, <9l. Subsidiary coin totals £225,584, a decrease of £670. Advances to the Primary Products Marketing Department on account of dairy produce shipmente total £7,609,484, compared with £7,279.753 on April 17, an increase of £320.731. Advances to the 'State for “other purposes” are unchanged at £12,075,000. Investments at £3,1 <1,278, show an increase of £4460. Other assets total £642,297, an increase of £503,778. The note issue Shows a large increase this week of £217,980, and now totals £15,658,762. This is £1.576,500 in excess of the total of £14,082,262 shown on April 25. 1938. Demand liabilities to the State total £3,097,302, a decrease of £604,327, The trading banks’ reserve balances amount to £10.307,660. an increase of £851,933. Other demand liabilities at £540,780 have risen by £55.2'29. Other liabilities at £652,840, show au increase of £99,581. .The statement balances at £31,784,496, an increase of £623,533.

National Bank Of Australasia The National Bank of Australasia, Irtd., baa advised the Stock Exchange that the dividend announced last week will be payable after the adoption of the report and balance-sheet at the ordinary general meeting of shareholders on May 31. The .share transfer books will be closed from May 18 to Sil, both days inclusive,

gate advances in New Zealand on March 27 were £54,748,350, compared with £54,030,770 on February 27, an increase of £717,580. Aggregate discounts were £768,966, compared with £695,049, an increase of £73,917. The total of advances and discounts in. New Zealand on Marell 27 was thus £55,517,316, compared with £54,725,819 on February 27, an increase of £791,497. The excess of demand and time liabilities on New Zealand over aggregate advances and discounts on March 27 was £12,807,415, compared with £12,727,167 on February 27. The relative positions oi advances and deposits at different periods is shown in the following table: —

The ratio of aggregate advances and deposits to total demand and time liabilities in New Zealand on March 27 was 81.255 per cent... compared with 81.132 per cent, on February 27, 84.989 per cent, on January 30. 90.356 per cent, on December 26 and 93.709 per cent, on November 28. The lowest point reached was 55.95 per cent, in August, 1934. The aggregate unexercised . overdraft authorities on March 27 amounted to £23.538,752, compared with £23.036,586 on February 27, an increase of £502,166. The total of advances and discounts and unexercised overdraft authorities on March 27 was £79.056,068, compared with £77.762,405 on February 27. an increase of £1,293,663. The active note circulation on March 27 was £11,175.725. compared with £10,969.487 on February 27. an increase of £206.238. The latest figure is £1,639,545 in excess of the note circulation of £9,536,180 on March 28 of last year.

LIABILITIES. £ 1. General reserve fund 1,500,000 s. d. 0 0 2. Bank notes ■■■■■■ 15,6t>8,762 3. Demand liabilities— 0 0 (a) State 3,097,302 1 2 b Banks 10,307,060 9 4 (e) other 540,779 12 11 4. Time deposits .... 5. Liabilities in currencies other than 16 N.Z. currency .. 27,101 6. Other liabilities .. tk>2,83J 0 17 0 , £(N.Z.)31,784,495 16 5 assets. 7. Reserve — £ s. d. (a) Gold 2,801,791 0 0 *(bj Sterling exchange 4,659,061 3 7 (c) Gold exchange . 8. Subsidiary coin ... 220,bb3 14 7 9. Discounts — (a) Commercial and • agricultural bills (b) Treasury and local body bills .. 10. Advances — ' (a) To the State or State undertakings : (1) Primary Pro- : ducts Marketing Department .... 7,609,484 7 4 (2) for other purposes 12,075,000 (b) To other public 0 0 authorities 11. Investments 3,771,278 0 1 12. Bank buildings .... 10 13. Other assets 642,297 10 £(N.Z.131,784,495 16 5 ♦Expressed in N.Z. currency.

Deposits. Advances 'Excess of & disets. deposits. 1936. £ £ £ Jan. 27 65,861,522 45,649,334 20,212,188 Mar. 30 68,476,414 44,918,852 23,557,562 June 29 60,872,444 45,077,019 21,795,425 Sep. 28 63,420,499 45,999,813 17,420,686 Dec. 28 64.204,115 48.281.982 15.922,133 1937 Jan. 25 67,969,981 47,416,049 20,553,332 Mar. 29 68,872,887 46,954,095 21,918,792 May 31 69,172,919 48,033,164 21,139,755 June 28 69,000.502 47,710,899 21,289,603 Sep. 27 65,941,319 50,695,729 15,245,590 Dec. 27 65.666.898 54.002.006 11.664.892 1938. Jan 31 67,817.917 53,313.050 14,504,867 Mar 2S 68,230.883 55,837,453 12.393.430 Jun 27 66,170.710 54.885,803 11,284,907 Sep. 26 64,365.086 56,275.749 8.OS9.337 Oct. 31 63,201,931 58,729,651 4 472,280 Nov. 28 62,861,743 58,907,033 3.954.110 Dec. 26 63.969.772 57.797,407 6.172.365 1939. Jan. 30 66,110,202 56,187.036 9,923,166 Feb. 27 67.452.986 54,725.819 ■ 12.727.167 Mar 27 68,324,731 55,517.316 12.807,415