RESERVE BANK

Evening Post, Volume CXXVIII, Issue 90, 13 October 1939, Page 6

RESERVE BANK

NOTABLE INCREASE

BORROWING BY STATE

EXPANSION IN THE NOTE ISSUE

Borrowings by the State as shown in the weekly returns issued by the Reserve Bank have made notable increases since the beginning of this year, and the note issue is also shown as expanding. The return for the week ended October 9, 1939, will be found in our commercial columns in this issue. Although, as already stated, these advances to the State for purposes other than Primary Products Marketing have increased rapidly since January last, the pace shows even greater acceleration when taken over the past twelve months. This fact is disclosed in the table followingAdvanced to State. % £ 1937 October i' 500,000 1938 October 3 ~., 4,575,000 1939 January 2 11,000,000 February 6 11,950,000 March 6 - •••> 12,725,000 Apr« 3 : 12,075,000 May i 12,075,000 June 5 ' 12,125,000 JulyS V. 10,475,000 August 7 13,250,000 September 4 14,850,000 September 18 15,600,000 September 25 16,350,000 October 2 • 16,800,000 October 9 • - 17,275,000 Advances to the Primary Products Marketing Department, backed by produce, have also increased but they fluctuate week by week. On. October 4, • 1937, they were- returned at £3,649,626 and were on "Dairy Industry Account." On October 3,.. 1938, that account was designated "Primary Products Marketing Department," and the advances amounted to £3,981,007. By January 2, 1939, these advances to'the Marketing Department had grown- to £5,730,791, and by April 24 they had reached a peak total of £7,609,484. After that they went up and down as stocks of produce moved up and down, but by September 25 they had been reduced to £4,593,266. and last Monday, October 9, they were returned at £4,916,496. The rise in the note issue has been and continues to be remarkable,, as the following returns will show:— Bank-notes. £ 1937. Oct. 4 12,954,005 Dec. 27 (Christmas demand) 15,233,127 1938. Oct. 3 13,798,628 Dec. 26 (Christmas demand) 16,641,425 1939 " ■ ■ Feb 20 14,888,397 Mar. 13 ♦ 14,799,266 May 1 15,717,266 Sept. 11 16,105,225 Sept. 25 .' 16,647,695 Oct. 9 (record) 16,997,543! It is obvious that the note issue is now rising month by month independently of Seasonal demands. i Today it is over £3,120,000 more than it "was at this time last year.1