RESERVE BANK RETURN

Evening Post, Volume CXXVIII, Issue 72, 22 September 1939, Page 10

RESERVE BANK RETURN

NOTABLE CHANGES

ADVANCES TO STATE £15,600,000

STERLING EXCHANGE DECREASE

Movements in the weekly statement Of assets and liabilities of the Reserve Bank of New Zealand as at the close of business on Monday, September 18, 1939., are shown hei-eunder:— Advances to the State for other than primary products marketing purposes Show an advance this -week of £750,000 bringing the total up to £15,600,000 whereas at September 19, 1938, the moneys so advanced were £3,800,000. The note issue snows a further increase this week by £317,307 and is now , £16,422,533, compared with £13,565,658 at this time last year. Sterling exchange at £5,299,372 this week shows a shrinkage of £381,985; at September 19 last year the holding of sterling exchange was £12,247,006. The statement of the assets and liabilities is all in New Zealand currency, including sterling exchange and is as follows:— LIABILITIES. £NZ s. d. £NZ. Genera) Reserve Fund 1,500,000 0 0 Unchanged -Bank-notes . 16,422,533 0 0 *317 1 30T Demand liabilities — (a) State ... 1,528,350 17 0 *306,564 (b) Banks .. 12,249,234 4 7 1678,362 (c) Other .. 419,950 14 4 *55,999 Liabilities in currencies other than S.Z. currency 28,311 17 1 *12,820 Other liabilities 491.31S 13 3 *25,621 £XZ32,639,699 6 3 *46,250 ASSETS. SKZ s. d. £NZ. Beserve — (a) Gold -2.801.539 0 0 Unchanged (b> Sterling exchange .. 5,299,372 9 10 f351,955 Subsidiary coin 245,290 id 11 f3,458 Advances to State for Primary Products Mar- ' keting Dept. . 4,769,553 0 3 -j-336,772 For other purposes 15,600,000 0 0 *750,000 Investments 3,820,871 16 6 Unchanged Other assets ... 102,442 2 9 *15,465 £XZ32,639,699 6 3 *46,250 fDecrease. "Increase. Proportion of reserve (reserve less liability in currencies other than New Zealand currency) to notes and other demand liabilities, 26.365 per cent., compared with 27.658 per cent, for the week ended September 11, 1939. The proportion of reserve as at the beginning of each month for the past year has been as follows: — 1938. Percent, June 6 77.906 July 4 , 76.181 • August 1 -69.249 September 5 6a.S4i October 3 57.259 November 1 39.733 December 5 29.834 1939. January '2 '• • • '-fa.lo February 6 , 25.047 March 6 «' 25.01 1 April 3 25-924 May 1 2a.b10 June 5 .- 29-655 July 3 ..-. 31.329 August J 26.795 August 14 28.026 August 21 27.478 Aiucust 28 28.112 ; September 4 .-. 26.456 September 11 27.658 September 18 26.365 The statutory limit is 25 per cent. FALL IN STERLING EXCHANGE. Sterling exchange (N.Z. currency; held as assets by the Reserve Bank of New Zealand for the past twelve months as at the first week of the month showed the following variations: —

1938. £N2. June 6 17,801.586 July 4 15,941.567 August 1 ~•■ 15,322,303 September a 12.638,^56 October 3 10.594,978 November 7 6,633.036 December 5 4.200,856 1939. January 2 4,017.232 Februarys 4,074,954 March 6 . 4.705,89(5 April 3 4,663,309 May 1 4,817.992 June 5 5,882,308 j-jly 3 5,690,004 July 10 5,556,797 July 17 5,580,07 a Jdly 24 5,596,010 July 31 ...: 5,576,957 August 7 5,150.954 August 14 5,431,119 ■ August 21 5.452,895 August 28 5.690.208 September 4 5,271,810 September 11 5,681,358 . September 18 5,299,372 ADVANCES TO STATE INCREASE. Advances to the State for purposes other than for the Primary Products Marketing Department on March 14, 5538, were niL Since June 6, 1938, they have been shown as follows:— 1938. £N2. 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 August 21 13,750.000 Angus; 28 ... 13.850.000 September 4 14.850,000 September 18 15,600,000 LAST YEAR'S RETURN. The return as at September 19, 1938, showed the following:—

£KZ. fieneral reserve 1,500,000 Bank-notes 13,565,658 Uin-iMiiri LiabilitiesState 3,704,251 Banks 5,943,029 Other 327,903 Liabilities in currencies other than' New Zealand 17,263 Other liabilities 124,894 ReserveOoiri ■ 2.801.T!<l Sterling Exchange 12.247,006 Subsidiary coin 228,015 Ail-'iiMi'es' if StatePrimary products marketing 3,281,202 For other purposes 3,800,000 Invwtnipnt? 2.732.01;*, Other assets 92,919 Rdservi- 'o notes and other demand liabilities 63,853