AT RECORD LEVELS

Dominion, Volume 33, Issue 282, 23 August 1940, Page 12

AT RECORD LEVELS

Note Issue And State Advances

RESERVE BANK RETURN

Decrease In Sterling Funds

The outstanding features of the weekly tdaleinent of the lieserve Bank of New Zealand this week are the new high records set by the note issue ami advances to the Stale. 'The note issue is now above the £20,000,1 100 lew! for the first time on record. .Advances to the State for "other purposes” than marketing total £23,240,000, a figure that is £9.490.000 iu excess of that shown a year ago. A further decrease of £39.78-> brings the total sterling exchange funds down to £12,192,412. .

The weekly statement of assets ami liabilities of die Reserve Bank as at the close of business on Monday. August 19, is as follows:— LIABILITIES.

1. General reserve fund 1..100.000 O 0 2. Bank notes 20.000.590 10 0 1,. Demand liabilities — - (a) State 4,878.714 10 < (b) Banks 16.925,797 14 11 lc) Oilier 323,.>.i3 14 1 4. 'Time deposits .... 5. Liabilities in cur-

rencies other than , N.Z. curerney .. ■ li ~ 0. Other liabilities ... 867,5t>5 It J

£( N.Z. 144,510.841 11 3 ASSETS. 7 Reserve- * s - d ’ (a) Gold 2,801,851 0 0 ’(b) Sterling exchange 12,192,411 18 4 (e) Gold exchange . — ~ 8. Subsidiary coin . - 1-0,(51 0 o 9. Discounis — (a) Commercial and agricultural bills — (b) Treasury and local body bills .. 10. Ad rances — (a) To the -State or State uudertak(D° Marketing De- „ „ partment 3,03b,00- IS •»>* o 0 (b) To other public authorities • • • • ' (c) Other o 1 11. Investments . ••• 2,.»43,8Q4 12. Bank buildings •>• non ix 7 13. Other assets 2.1,020 11 7

£( N.Z.) 44,510,841 11 3 ♦ Expressed in New Zealand curreuey Proportion of reserve (No. l ino. 5) to notes and other demand labilities, 35.557 per cent., compared with 36.10 l per cent, on August 12 The reserve on Mom lay' to idle d 1 1,; 979.634, compared with £10,018,463 on August 12. a decrease of £38,820. A year ago the reserve was £8.244,4 6, and on August 22. 1938. it totalled £14,307,Sterling exchange funds on Monday totalled £12,192,412, compared with £l2 232,197 on August 12, a decrease ot £39785. Liabilities in currencies other than New Zealand currency on Monday were £14.629 (a decrease of £906), thus making the bank’s net assets £12.177,783. compared with £12.216,61on August 12. a decrease of £38,829. A year ago the bank’s net overseas assets amounted to £5,442,587, and on August 22, 1938, they totalled £14,49-1,637. The bank's’ gold holding is unchanged at £2.801,851. Subsidiary coin totals £125,751, a further decrease of £9ll. Advanced to the State Marketing Department total £3,336,003, a decrease of £204,864. Advances to the State for other purposes show a major increase of £820,000, and have now reached the record high level of £23,240,000. A year ago these advances amounted to £13,750,000. Investments remain unchanged at £2,543,804. Ollier assets total £271,020, an increase of £61,112. For the first time on record the note issue has passed the £20,000.000 mark, the present record figure showing an increase for the week of £221,408. A year ago the note issue stood at £15.779.715: thus the latest figure of £20,000,590 represents an increase over the last twelve months of £4,220,875. Demand liabilities to the State total £4,878,715, a decrease of £211,868, The trading banks’ reserve balances amount to £16,925.798. an increase of £507,365. Other demand liabilities total £323.554, an increase of £72,026. Other liabilities total £867,556, an increase of £47,576. The statement balances at £44,510.841, an increase of £635,551. Movements in -Sterling Exchange. The movements iu the sterling exchange held by the Reserve Bank of New Zealand and in the ratio percentage of reserves to notes and other demand liabilities, are shown in the following table: —

The statutory minimum of the reserve ratio is 25 per cent. Gold Mining Returns I Grey River Dredging Co.. Ltd., reports ■ a return for the week ended August 21 of 146 ounces from 97,3-16 cubic yards in I 131 hours. AUCTION DIARY TODAY. At 8 Willeston Street, 1('.30 a.in.-Furni-ture (Johnston). At fit Hixon street. 10.30 a.m.—Unredeemed Pledges (.Price). Carterton Sale. 11.30 a.m.—.Mixed stock. At Wluimik,. Street. Tit.-ilii Bay, acc. G. P. Wilson. I p.m.—House Contents i j»linston). At I'l Dixon Street. 2 p.m.—300 Sheets Iron, etc. (Price). q’l r.MOR ROW. Wanganui Horse Pair. 10.30 u in. (.lackson). At Kukn lid.. Ohan, n/e.' .1. AV. YoungHouse Contents (Davidsoni. MONDAY. At Webster Brothers’ Rooms, New Plymouth. 2.30 p.in.—Private Hotel and Land (Webster).

Stefliug Reserve 1937. exchange. l£N.Z.) ratio per eent. December 27 16,992.748 70.323 1938. August 29 ... 13,695,000 67.2 September 26 ... 11,419,447 60.7S5 October 31 . . 7,707.697 46.09 November 28 4,828,302 32.6S5 December 26 4,678,233 27.882 1939. January 30 . 4.133.580 Z«). i i) .Mareb 27 ... . . . 4,659,874 25.419 .June 26 ... 5,600.692 30.249 Sept. 25 .... * - 5,311,68'' 25.822 Oct. 30 5,743.087 25.367 Nov. 27 .... 6,624,585 28.477 Dec. 25 a a - 8.717,735 32.200 1940. J a n. 1 ...... 7,036,750 27.947 Feb. 5 ..... 9.242.501 31.588 Mar. 4 10.020,871 32.377 Apr. 1 ..... 12.707.890 39.224 May G 13,658,465 41 419 June 3 14.673.730 42.429 .Tune 24 ... 14.S25.826 42.138 13,420,644 38.63 .Tnlv 8 13.253.742 38.46 13.135.185 38 259 Aug. 12 .... 12.232.197 36.154 Aug. 19 .... 12,192.412 35.557