RESERVE BANK RETURN

Evening Post, Volume CXXVIII, Issue 30, 4 August 1939, Page 12

RESERVE BANK RETURN

NOTE ISSUE RISING

STERLING EXCHANGE

POSITION

ADVANCES TO:GOVERNMENT

INCREASED

Movements in the weekly statement of assets and liabilities of the Reserve Bank of New Zealand as at the close of business on Monday, July 31, 1939, are sho\*n hereunder: — Sterling exchange at £5,576,957 is higher on the week by £19,053; this time last year it stood at £15,322,308. Advances to the Government on account of marketing are shown at £5,688,326, an advance for the week of £112,846; last year they amounted to £3,939,759. Advances to the Government for purposes other than marketing are £13,250,000, or £600,000 more than for last week; and compare with £2,600,000 for August 1, 1938. The note issue at £15,693,364 is £118,201 higher than last week; last year the issue was £13,600,511. The statement ot the assets and j liabilities is all in New Zealand currency, including sterling exchange, and is as follows:— LIABILITIES. £NZ B. d. £N2. General Reserve Fund 1,500,000 0 0 UncHanged Bank-notes .. 15,693,361 0 0 *115,201 Demand liabilities — (a) State ... 2,563,451 13 2 *657,15S (b) .EanKs ... 10,763,459 19 0 t201,865 (c)" Other ... 206,556 16 S *99,131 Liabilities in currencies other than N.Z. currency 72,332 9 4 toS9 Other liabilities . 425,412 IS 2 *8,740 £NZ31,525,577 16 4 *650,505 ASSETS. £NZ s. d. £NZ. Reserve — (a) Gold 2,801,839 0 0 Unchanged (b) Sterling exchange 5,576,957 1 3 U9,053 Subsidiary coin . 227,144 9 7 t6ll Advances to State for Primary Products Marketing Dept. . 5,688,326 10 S *112,546 For other purposes 13,250,000 0 0 *600,000 Investments 3,745,462 12 9 t35,49S Other assets ... 232,848 2 1 *23,121 £NZ31,525,577 16 4 *650,505 tDecrease. 'Increase. Proportion ol reserve (reserve less liability in currencies other than New Zealand currency) to notes and other demand liabilities 28.132 per cent., compared with 28.852 per cent, for the week ended July 24, 1939. The proportion ol reserve as at the beginning of each month for the past year has been as follows:— 1933. Per cent. June 6 77.90b July 4 Tii 181 August 1 69.249 September 5 65.847 October 3 57.259 November 1 39.733 December 5 29.834 1939. January 'A .... 26.13 February 6 * 25.042 * Marco 6 25.017 April 3 25.924 ; May l 25.815 June 5 ................... 29.655 July 3 31.329 July 10 ..'. 30.805 July 17 30.37! i July 24 25.552 July 31 .' 25.132 The statutory limit is 25 per cent. STERLING EXCHANGE. Sterling exchange held as assets by the Reserve Bank ot New Zealand for the past twelve months as at the first week of the month showed ihe following variations: — 1935. £NZ June 6 17,801,580 July 4 15.941,567 August 1 15,322,308 September 5 12,638.656 October 3 10,594,978 November 1 6,633,036 December 5 4.200.856 1939 ■January 2 4.017,231! February 6 4,074,954 Marcb 6 4.705.896 April 3 4,(i(i3.309 May 1 4,817,992 June 5 5,882,308 July 3 5,690,004 July 10 5.556,797 July 17 5,580.075 July 24 5,596,010 July 31 ...." 5,576,957 ADVANCES T^ STATE RISING. Advances to the State for purposes ether than for the Primary Products Marketing Department on- March 14, 1938, were nil. At February 27, 1939, 'they were shown at £12,800,000. Advances to the State other than for primary products since June 6, 1938, have been shown as follows:— 1938. £NZ. June 6 300,000 July 25 1.900.000 August 1 2.600,000 September 5 3,050,000 October 3 4,575,000 November 7 ............ 8,050,000 December 26 11.200.000 1939. January 2 11.000.000 February 6 11,950,000 March 6 12,725,000 April 3 .............. 12.075,000 ' May 8 12,175,000 June 5 12.125.000 June 12 11,975,000 June 19 10.575,000 June 26 10,625.000 July 3 10,475,000 July 10 10,555,000 July 17 ... 11,300,000 July 24 12.650,000 July 31 13,250,000 LAST TEAR'S RETURN. The return as at August 1, 1938, showed the following:— £NZ. General reserve .............. 1,500 00U Bank-notes 13,600,511 Demand Liabilities— State 5,499.257 Banks 6,742,677 Other 322,371 Liabilities in currencies other than New Zealand 5,039 Other liabilities 126,019 Beserve — Gold 2.801.791 Sterling exchange , 15,322,30S Subsidiary coin 227,005 Advances to State— Primary products marketing ... 3,939,759 For other purposes 2,600,000 Investments 2.732,065 Other assets 172,946 Reserve to notes and other demand liabilities 69.249