RESERVE BANK

Dominion, Volume 33, Issue 4, 29 September 1939, Page 12

RESERVE BANK

Small Rise In Sterling Funds

RECORD NOTE ISSUE State Advances Again Higher The sterling exchange funds of the Reserve Bank of New Zealand on .Monday totalled £5,311,080 and the net overseas assets £5,205,291, an increase in each case of £24,230. Dairy advances are lower by £170,010, but advances to the State for other purposes' nt £10,250.000 show an increase of £650,000. The note issue has reached the record high level of £10,047.005. The bank's statement of liabilities and assets as nt the close of business on Monday. September 25, is as follows: — LIABILITIES. £ s. d. 1. General Res. Fund 1.500,000 0 0 2. Bank Notes 10.647,095 0 0 3. Demand Liabilities — (a) State ],704,;>3< 10 3 (b) Banks .... 12,573.619 0 6 (e) Other .... 341,494 10 8 4. Time Deposits .• • 5. Liabilities in Currencies ether than N.Z. Currency . . 16,388 5 3 Other Liabilities .... 497,184 18 0 £(N.Z.i 33,370,919 4 8 ASSETS. £ s. d. 7. Reserve—(a) Gold 2,801.839 0 0 ♦(b) Sterling exchange 5.311,019 12 0 (c) Gold exchange 8. Subsidiary coin .. 240.442 2 o 9. Discounts — (a) Commercial amt agricultural bills (b) Treasury ami local body billn .. 10. Advances — (a) To the State or State UudertaKings: (1) Primary Products Marketing jjppt 4,590,266 10 6 (2) For other purposes 16,250.000 0 0 (b) To other public authorities (c) Other 7777 ,■ 11. Investments .... 3.816.1-4 1 o 12. Bank buildings .. 7777. 1Q r 13. Other assets .... buGtiOi lb o

£(N.Z. 133.370,919 4 8

♦Expressed in New Zealand currency. Proportion of reserve (No. " 'ess No. 5) to notes and other demand liabilities 25.822 per cent., compared with 26.36.1 per cent, on September 18. The reserve on Monday stood at £8.097,130. compared with £8,072.900 on September 18, an increaise ot £24,230. On September 26, 1938, the reserve totalled £14.233.340. Sterling exchange on .Monday amounted to £5,311,680, compared with £5.299,372 on September IS, an increase of £12,307. Liabilities in currencies other than New Zealand currency on Monday were £10,388 (a decrease of £11,913), thus making the bank's net overseas assets £5,295,291, compared with £5.271,061 on September 18, an increase of £24,230. A vear ago the net overseas assets totalled £11,431,549. The bank’s gold holding remains unchanged at £2,801.839. Subsidiary coin amounts to £240,442, a decrease of £4549. Advances to the Primary Products Marketing Department total £4,593,266, a further decrease of £176,610. A year ago the total was £3,158,608.

Another substantial increase of £650,000 brings the total of the bank’s advances to the State for ‘‘other purposes” up to £16,250,000. Investments at £3,816.124, show_a decrease of £4748. Other assets at £357,568 have increased by £255,126. A further increase of £225,102 brings the note issue up to the record high level of £16,647.095. This is £2,913,076 in excess of the issue of £13,734,619 shown a year ago, and is £6270 higher than the previous record of £16.041,425 on December 20. 1938. Demand liabilities to the State total £1,794,537, compared with £1,528,351 on September IS, an increase of £206,187. The trading banks’ reserve balanefcs at £12,573.619, show an increase of £324,385. Other demand liabilities at £341,494 are lower by £78.456. Other liabilities at £497,185 have increased by £5866. The statement balances at £33,370,919. an increase of £731,220. Movements in Sterling Exchange. The movements in the sterling exchange held iby the Reserve Bank of New Zealand during the last few months and in the ratio percentage of reserve to notes and other demand liabilities, are shown in the following table: — Sterling Reserve

The Price Of Tin

By Telegraph. —Press Assn. —Copyright.

LONDON, September 27. Tin is quoted at £230 a ton spot and £227/15/- a ton forward.

Money Market Rates

By Telegraph.—Press Assn.—Copyright.

LONDON, September 27. Discount and short loan rates On the London market compare with those of September 20 as follows: —

exchange. ratio 1937. (l.X.Z.I per cent. 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 32.685 December 26 1,678,233 27.S82 1939. January 2 4,017,232 26.13 January 30 4,133.586 25.75 February 6 4.074.951 25 047 February 27 4.839.555 25.799 March 6 4 705.897 25.017 March 27 4,659.874 25.419 April 3 4.633.300 25.924 April 24 4,629,061 25.11 May 1 4.817.992 25.815 Mar 29 4,564.206 25.136 June 5 5,882.308 29.655 June 26 5.600.692 30.249 July 3 5.690.003 31.329 July 31 5.576 957 2S.132 A ug. 7 5.150,954 26.795 Aug. 28 5.690.208 28.112 Sept. 4 5.271.810 26.456 Sept. 11 5.681.358 27.658 Sept. 18 5.299.372 26.365 Sept. 25 5,311,680 25.822 The statutory minimum of the reserve ratio is 25 per cent.

Sept. 20. Sept. 27 p.c. ' p.c. Day-to-day loans • 2i 2 J Fine trade bills (3 inos.) 4| to 5 to 5 Bank bills (3 mos.) .... 38 3 ft Ditto (6 mos.) 5 41 Treasury bills (2 mos.) . 3 3 Ditto (3 mos.) 3i} 3 NEW YORK, 1 September 27. Call money is unchanged at 1 per cent.