RESERVE BANK

Dominion, Volume 32, Issue 257, 28 July 1939, Page 12

RESERVE BANK

Small Increase In Sterling Assets STATE ADVANCES HIGHER Reserve Ratio, 28.852 Per Cent. A small increase of £15.936 in sterling exchange, and a pliglitly smaller increase in net overseas assets are shown in the weekly return of the Reserve Bank of New Zealand. Due to » large increase in the note issue, and other demand liabilities, the proportion of the bank's reserve has fallen to 28.852 per cent. J-'ajry advances show an increase of £170,133, and advances to the State for other purposes have increased by £1.350.000. The statement of assets and liabilities as at the close of business on Monday, July 2-1, is as follows: — LIABILITIES

£(N.Z.)30,844,772 17 1 ♦Expressed in New Zealand currency. Proportion of reserve (No. 7 less No. 5) to notes and other demand liabilities, 28.852 per cent., compared with l>er cent, on July 17, and 70,57 per cent, on July 25, 1938. The tail in the proportion is due to an increase of £121,u3i in the note issue, aud a net increase of £l,368,134 iu other'demand liabilities. The reserve on Monday amounted to £8,324,928, compared with £8,312,300 on July li, an increase of £12,628. _On_July 25, 1938, the reserve totalled £17,907,464. iSteriing exchange funds on Monday totalled £5,396,010, compared with £5,530,075 on J uly 17, an increase of £15,936. Liabilities in currencies other than New Zealand currency on Monday to tailed £72,021 (an increase of £3307), thus making the bank’s net overseas assets £3.523,6811, compared with £5,510,461 on July 17, an increase of £12,628. A year ago, the bank’s net overseas assets totalled £15,097,835. The bank’s gold holding remains unchanged at £2,801,839. Subsidiary coin at £227,755, shows a decrease of £llB4. Advances to the . .Primary Products Marketing Department total £5,575,480, an increase of £170,133. Advances to the State for “other purposes’’ amount to £12,650,000, an increase for the week of £1,350,000. A year ago these advances totalled £1,900,000. _ Investments at £3,783,961, show a decrease of £6006. Other assets total £209,727, a decrease of £12,622. The note issue totals £15,575,163, an increase for the week of £124,037. The latest total is £2,01.1,491 in excess of the £13,563,072 shown a year ago. Demand liabilities to the State total £2,206,264, compared with £1,426,392 oil July 17, an increase of £779,872 The trading banks’ reserve balances show a further large increase of £679,256, and now total £10,905.325. Other demand liabilities at £107.426, show a decrease of £90,994. Other liabilities amount to £417,673, an increase of £20,719. The statement balances at £30,884, <73, an increase of £1,516,197. Movements in Sterling Exchange The movements in the sterling exchange held by the Reserve Bank of New Zealand during the Inst few months and the decrease in the ratio percentage of reserve to notes and other demand liabilities, are shown in the following table:

ratio is 25 per cent. BASE METALS MARKETS Copper Firmer; Others Steady U.v Telegraph.—Press Assn. —Copyrlgbt LONDON, July 20. The official London (middle) quotations compare with those previously cabled as follow a :—

s. d. 1 General life- Fund 1,500.000 0 0 10 0 3. Demand liabilities — (a) State 2,290.203 15 11 (bl Banks 10,965.32u 1 1 10 I 4. Time deposits .... J) Liabilities in currencies other than N Z. currency .... 72.920 17 2 0. Other liabilities .. 4.1 <,Gid 4 £(N.Z.)30,S44,772 17 1 ASSETS. Reserve — £ Q. d. (a) Gold 2,801,839 0 0 * Ibi Sterling ex8 1 (e) Gold exchange 8. Subsidiary coin ... 227,<aa 0 8 9. Discounts— (a) Commercial and agricultural bills . (b) Treasury . and local body bills •. 10. Advances — (a) To the Stale or State undertakings : (]) Primary Products Marketing Department .... . 5,575,480 6 6 (2) For other pur0 poses • • 12,650,000 (jb) To other public 0 authorities 11. investments ..... 3,783,900 10 1 12. Bank buildings .... —- 13. Other assess 200 j 2b 10 9

Sterling exchange. (£N.Z.) Keserve ratio per cent. 1937. December 27 ... ... 16,992,748 70.323 1938. August 29 13,695,000 67.2 September 26 ... ... 11,449,447 60.785 October 31 ...... ... 7,707,697 46.09 November 28 ... ,.. 4,828,302 December 26 ... ... 4,678.233 27.882 1939. ... 4,017,232 26.13 January 9 ... 3.933.851 25.526 January 16 .... ... 4,373,705 26.782 January 23 ..... ... 4,395,525 26.695 January 30 ..... 4,133,5.86 2;>.75 February 6 ..... ... 4,074,954 25.0-17 February 13 .... ,.. 4,164,499 25.073 February 20 .... ... 4,523.031 2;>.378 February 27 .•.. .. 4,839,555 25.799 March 6 ... 4,705,897 25.017 March 13 ... 4,591,686. , 25.026 March 29 ,.. 4,547,863 25.129 March 27 ,.. 4,659.874 25.419 April 3 ........ ,.. 4,633,300 25.924 April 10 ....... ,.. 4,598,652 25.501 April 17 ... 4,872,818 26.305 April 24 • < ,.. 4,629,061 25.11 May 1 ......... ... 4,817,992 25.815 May 8 ,.. 4,708,706 25.722 May 15 ,.. 4,695,194 25.499 May 22 ........ ... 4,758,544 26.611 May 29 ,.. 4,564,206 25.136 ... 5,882,308 29.655 June 12 ... 5,773,677 29.591 June 19 ... 5,793,195 30.985 June 26 ... 5.600,692 30.249 July 3 ........ ... 5,690,003 31.329 July 10 ....... 30.805 July 17 ... 5.580,075 30.379 July 24 ... 5,596,010 28 852 The statutory minimum of the reserve

July 23. . Per ton. July 20. Per ton. < upper > • H. d X b. d. Standard, t>puf. 42 1'J u 13 0 llitlo, forward 4‘t -1 i I 13 . * ' i Kbr'trolj Ue ... -IS 15 0 !V 0 0 to 4'3 10 0 19 10 0 Wire burn -I‘J 19 0 10 10 0 Load— Spot . ......... Forward . 14 14 10 17 3 6 14 14 14 15 J Spelter— Spot .. 14 10.1 14 7 0 Portvard 11 11 101 14 10 71 Tin Spot 220 IS 9 229 18 Forward ..... 1,1 17 c 224 17 6 Silver— .Standard an oz. :ig o -St ill? - Hid. Flue. an oz. ... ■ *« Li . 5-1. tin, 17id.