RESERVE BANK RETURNS

Evening Post, Volume CXXX, Issue 5, 5 July 1940, Page 10

RESERVE BANK RETURNS

STERLING EXCHANGE REDUCED

GOVERNMENT BORROWING INCREASED

Movements in the weekly stateme/i1 of assets and liabilities of the Reserve Sank of New Zealand as at the close of business on Monday, July 1, 1940 are shown hereunder:— Sterling exchange, in New Zealand currency, shows a reduction this week of £1,405,182, being £13,420,644, and compares with £14,825,820 for the week ended June 24. The bank-notes continue their expansion and snow an increase for this week of £178,451, but are £3,210,612 more than they were at this time last year. Advances to the State for purposes other than marketing amount this week to £21,210,000, and are approaching their peak of £22,310,000 as for the week ended February 26 of this year, 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 .. 18,795,324 0 0 *178,451 Demand Liabilities— (a) State 5,393,935 4 7 t1,190,911 (b) Banks ... 17,313,977 10 9 *1,098,885 (c) Other 450,913 4 4 *72,427 liabilities In currencies other than N.Z. currency 15,552 18 3 t575 Cther liabilities . 705,218 0 10 t73,644 £NZ44,174,920 18 9 *84,633 ASSETS. £NZ s. d. £NZ Reserve — (a) Gold 2,801,839 10 0 Unchanged (b) Sterling exchange .. 13,420,643 18 1 t1,405,182 Subsidiary coin 161,670 10 6 *4,082 Advances to State . for Marketing Dept 3,806,854 1 11 *49,886 Tor other purposes 21,210,000 0 0 *1,450,000 Investments .. 2,542,520 16 6 *3,019 Other assets ... 231,392 0 11 t17,172 £NZ44,174,920 18 9 * *84,633 tDecreaae. . Proportion of reserve (reserve less liability in currencies other than New Zealand currency) to notes and other demand liabilities, 38.63 per cent., compared with 42.138 per cent, for the week ended June 24, 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 Februarys 31.588 March 4 32.377 April. 1 39.224 May 8 41.419 June 3 42.429 June 10 41.963 June 17 41.868 June 24 42.138 July 1 38.63 The statutory limit is 25 per cent. STERLING EXCHANGE LESS. 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:— 1940. £NZ January 1 7,036,750 February 5 .......;...;. 9,242,501 Match 4 10,020,871 April I ..„: 12,707,890 May 6 13,658,465 May 13 ,■.-. 13,328,635 May 20 •: 13,239,088 May 27 13,719,362 June 3 14,673,730 Juno 10 14,629,099 June 17 ; 14,546,013 June 24 . 14,825,820 July 1 13,420,644 INCREASE IN BANK-NOTES. Bank-notes reached their peak at Christmas, 1939. Notes shown in the Reserve Bank return for 1939 and 1940, at. corresponding dates for the first ■Monday in the week are as follows:— 1939. 1940. ■;£ £ ' January : 16,494,890 19,184,088 March 14,810,081 17,954,492 May 15,717,266 17,925,943 June ........ 15,597,365 18,264,272 FURTHER ADVANCES TO STATE. Advances to the State for purposes other than for the Primary Products Marketing Department on March 14, 1938, were nil. Since January, 1939, they have been variously shown as follows:— _ i»39. £NZ •January 2 11,000,000 July 3 10,475,000 December 25 19,275,000 1940. January 1 20,230,000 February 5 20,910,000 February 26 22,310,000 March 4 21,110,000 April 1 19,310,000 April 15 19,410,000 April 29 19,360,000 May 13 19,460,000 May 20 19,560,000 May 27 .. 19,600,000 June 10 19,760,000 July 1 21,210,000 LAST YEAR'S RETURN. The return as at July 3, 1939, showed the following:— _ , snz General reserve 1,500,000 Bank-notes 15,584,712 Demand Liabilities— State 1,634,743 Banks 9,324,002 Other 372,251 New Zealand 59 529 Other liabilities 381,751 Reserve— Gold 2,801,83!) Sterling exchange 5,690,004, Subsidiary coin 224 292 Advances to State— Marketing, Department 5,659,544 For other purposes 10,475,000 Investments 3,780,491 Other assets 225,818 Reserve to notes and other demand liabilities v .. 31.329