RESERVE BANK RETURN

Evening Post, Volume CXXIX, Issue 64, 15 March 1940, Page 10

RESERVE BANK RETURN

CHANGES THIS WEEK

STERLING EXCHANGE LARGE INCREASE

ADVANCES TO STATE DECLINING

Movements in the weekly statement of assets and liabilities of the Reserve Bank of New Zealand as at the close of business on Monday, March 11, 1940, are shown hereunder:— Principal features in the return this week are a large increase in sterling funds, and reductions in advances to the Marketing Department and for other purposes. Sterling exchange at £11,844,357 shows an increase for the week of £1,823,486, and compares with £4,591,686 for March 13, 1939. The note issue shows a relatively small but seasonal increase, and at £17,996,274 is £41,782 more than last week, and over £3,000,000 more than it was at this time last year. Advances to the State on account of marketing are reduced this week from £4,224,872 to £3,356,505. Advances to the State for other purposes, which had reached £22,300,000, are down this week to £20,260,000, a decline on the week of £850,000. It will be noticed, too, that the State's demand deposits with the Reserve Bank, at £10,250,952, have risen this week by £3,685,765, whereas the demand liabilities of the trading banks arc reduced by £3,823,780. The statement of the assets and liabilities is all in New Zealand currency, including sterling exchange, and is as follows:— LIABILITIES. SNZ 8. d. £N2 General «Reserre Fund 1,500,000 0 0 Unchanged Bank-notes .. 17,996,274 10 0 »41,782 Demand Liabilities— (a) State ... 10,250,952 0 3 *3,G85.765 (b) Banks .. 11,041,546 19 8 f 3,823,780 (c) Other ... 142,657 16 6 f 36,862 Liabilities In currencies other than N.Z. currency 12,751 IS 2 f9 Other liabilities 842,278 11 8 *5,422

£NZ41,756,461 1G 3 f127,680 ASSETS. SNZ a. d. £NZ Reserve-—■ (a) Gold .... 2.801,830 0 0 Unchanged (b) Sterling es- ' change .. 11,844,357 2 0 *1,823,486 . Subsidiary coin . 101,858 15 10 f1,594 Advances to State for Marketing Dept 3,356,505 9 5 t5C8,367 For other purposes 20,260,000 0 0 t850,000 Investments .. 3,166,018 6 5 • t198,982 Other assets ... 195.853 2 7 f 132,223

£XZ41,75G,461 16 3 1127,680 tDecrease "Increase. Proportion of reserve (reserve less liabilitity in currencies other than New Zealand currency) to notes and other demand liabilities, 37.111 per cent.', compared with 32.377 per cent, for the week endea March 4, 1940. The proportion of reserve as at the beginning of each month for this year has been as follows:— 1939. Per cent. March 6 25.017 June 5 29.655 . October 2 25.4T3 1940. January 1 27.947 fcebruarv 5 31588 ' February 19 30.79 February 26 32.812 Ararcli 1 32.377 March 11 37.111 The statutory limit is 25 per cent. STEALING EXCHANGE INCREASE. Sterling exchange (N.Z. currency) held as assets by the Reserve Bank of New Zealand as at the first week of the months has shown the following variations:— 1939. £NZ. I March 8 4.705.896 June 5 0.882,308 September 4 .............. 5.271,810 October 2 5.338.703 November 6 5,605,338 December 4 5.961.673 1940 January 1 7.030,700 February 5 9,242,501 February 26 10,842,600 March 4 10.020.87) March 11 11,844,357 ADVANCES TO STATE DECLINE. Advances to tne State for purposes other than for the Primary Products Marketing Department on March 14. 1938, were nil. Since June 6, 1938. they have been variously shown as follows:— 1938. £NZ. June 6 300,000 July 25 1.900,000 1939 January 2 11,000,000 February 6 11.950.000 March 6 12,725,000 April 3 12,075.000 May S 12,175,000 June 5, 12.125,000 Julys 10,475,000 July 31 13.250.000 August 28 13.850,000 September 4 14,850.000 October 2 16,800.000 October 9 17,275.000 October 16 17.425,000 October 23 17.325,000 October 30 16.775.000 November 6 16,875,000 November 20 16.725.000 i November 27 16,675,000 I December 4 17,290.000 ■ December U 17.475.000 December 18 ............ 18.325.000 '• December 25 19.275.000 1940. January 1 20.230,000 January 8 20.725.000 January 15 20.610.000 ! January 22 .............. 20,860.000 January 29 21.010.0U0 February 5 20,910.000 February 12 21,010.000 i February 19 22,110,000 February 2G 22,310.000 March 4 21.110,000 March 11 20,260,000 LAST YEAR'S RETURN. The return as at March 13, 1939, showed the following:— snz. j General reserve 1.500.000 Bank-notes 14,799,266 Demand LiabilitiesState 5,494,360 Banks 8,569,406 Other 611,816 Liabilities In currencies other than New Zealand .17,128 Other liabilities 334,973 ReserveGold 2,801,791 Sterling exchange 4,591,686 Subsidiary coin 204,410 Advances to State — Primary produce marketing .... 7,317,326 For other purposes 12,665,000 Investments 3,651,028 Other assets •. 95,709 Beserve to notes and other demand liabilities 25.026 LONDON MONEY MARKET. {By Telegraph—l'russ Asxunation Coiivnutit.i LONDON, March 13. Discount and short loan rates on the London market, compared with those of March •6, are unchanged as follows: — Mar. 6. Mar 13. p.c. p.c. Day-to-day loans . .... % 34 Fine trade bills (3 mos.) .. 2% to 3 2V»to3 Banli bills (3 mos.) 11-1G 11-16 Bank bills (6 mos.) 11-8 11-8 Treasury bills (2 mos.) ..1 1 Treasury bills (" inns.) 1 1 NEW YORK, March 13. "Call money is unchanged at 1 per cent.