RESERVE BANK RETURN

Evening Post, Volume CXXIX, Issue 134, 7 June 1940, Page 10

RESERVE BANK RETURN

STERLING EXCHANGE RISING

INCREASE IN NOTE ISSUE

Movements in the weekly statement ©f assets and liabilities of the Reserve Bank of New Zealand as at the close trf business on Monday, June 3, 1940, are shown hereunder:— ,An increase of £954,368 in sterling! exchange this week brings the holding j up to £14,673,730, against £5,882,308 at this time last year. The note issue continues to expand, and at £18,264,272 it shows an increase for this week of £313,014, and compares with £15,597,365 a year ago. . Advances to the State for purposes other than marketing remain at £19,660,000, against £12,125,000 a year ago. 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 General Reserve Fund 1,500,000 0 0 Unchanged Bank-notes ... 18,264,272 0 0 *313.014 Demand Liabilities— (a) State ... 6,763,076 10 2 *574,495 (b) Banks «.. 16,023,041 2 1 *256,934 (c) Other .... 106,605 2 3 f158,527 Liabilities In currencies other than N.Z. currency 13,051 13 8 *861 Other liabilities i 1,035,948 13 11 *11,673 £NZ43,705,995 2 3 *998,452 ASSETS. £NZ s. d. £NZ Reserve— (a) Gold .... 2,801,839 10 0 Unchanged (b) Sterling exchange .... 14,673,730 7 0 *954,368 Subsidiary coin 160,390 9 2 t2,963 Advances to State for Marketing Dept 3,564,973 11 3 *45,566 For other pur-. . . poses 19,660,000 0 0 Unchanged Investments .... 2,538,456 14 7 *973 Other assets ... . ;506,604 10 3 t2,492 £NZ43,705,995 2 3 *998,452 fDecrease. 'Increase. Proportion of reserve (reserve less liability in currencies other than New Zealand currency) to notes and other demand liabilities, 42,429 per cent., compared with 41.097 per cent, for the week ended May 27, 1940. .The proportion of reserve as at the beginning of each month for this year has been as follows: — 1940. Percent. January 1 27.947 : February 5 31.588 . March 4 ..... 32.377 . April 1' v.. 39.224 May 6 41.419 ' May 20 40.44 •■ May 27 41.097 June 3 42.429 The statutory limit is 25 per cent. STERLING EXCHANGE RISING. Sterling exchange (N.Z. currency) heia :vas assets by the Reserve Bank of Nfewt Zealand as at the first week of the'months has shown the. following variations: — .""' ■■'■• 1940. £NZ L-January 1 .ii.si ••• 7,036,750 'February 5 9,242;50l v March 4 10,020,871 March 25 13,033,980 • April 1 ....;,;... 12,707,890 April 29 .».'■...V.'iii^...■••■. 13,848,406 • May 6 ..'....,ii^V.*...^ 13,658,465_ :■ May 13 .......;;.*».V.^... 13,328,635 ~ . -' May 20 ..".wv^V.^w... 13.239.058 . . May 27 ....^1.t..^;:.. 13,719,362 . Tune 3 ;-;^v^: r iv.;;14J673,730 .ADVANCES-TO'STATE. .. "Advances to the State for purposes ©fixer than for the, : Rrimary Products Marketing Department on March 14, i 938, were nil. / Sincei January, 1939, they have rbe%- variously,;, shown as follows:— : >'•'■'■'■ ? ' i<ttfi .>.:■> £NZ : January 2 .......«...••♦ 11,000,000 • Inril 3 . .1...*n ...- 12,075,000 July 3 .'".".--... 10,475,000 ' October 2 "111«.'...V... 16,800,000 . Dumber 25 r.in:;:...., v.275,000 ■ February 26 Mill ... 22,310,000 March 4 ...i 111 LI —• 21,110,000 ■ Si 111 . 11...... 19,310,000 Anril 15 I 111. 11.. 1...--.- 19.410,000 ADril 29 II I I" 19,360,000 May 13 Hill. 19,460/000 May 20*1 ...MI. 1 19,560,000 ' May 27 .......HI. 19.660,000 LAST YEAR'S RETURN. The return as at -June 5, 1939, showed the following:— £Nz • Bank-notes ; '....... »• .;«• • * • .1».597,iba Demand-Liabilities—- 4 613,816 §^&>: *'1 T*l -I 111 111 MI.. 8484,725 s*?^ .••*■ *'...... 510,069 23.022 Oiher-liabilities — 500.219 Beser^ve^r 2 ,801,839 Sterling*- exchange. *I 11 ...'..#•«•• s'||g.3oß Subsidiary coin .....> .«••'• <"».&»< Advances'to State—;■ . , w ,~, R qr Marketing Department ~,... -Mli'Soo S<6r ■, other, purposes „• *.«• I^'|SoOOO Other advances•■••.*>.:.«•., *...»••• _ i^Hl Investments +~».■ i* »;*»•. «-•• •»•••■ *'iAX'e«o Other .assets / ~...'•..• •• • • •>»•••; •-. 249>8W Reserve 'to notes- and other demand g