RESERVE BANK RETURN

Evening Post, Volume CXXX, Issue 143, 13 December 1940, Page 10

RESERVE BANK RETURN

NOTE ISSUE EXCEEDS £21,400,000

STERLING EXCHANGE STEADY

Movements in the weekly statement of assets and liabilities of the Reserve Bank of New Zealand as at the close of business on Monday, December 9, 1940. are shown hereunder:— A seasonal advance in the bank-note issue is expected at this time of year, but that as at December 9 is far above any previous level, being shown at £21,407,283. Other "Christmas" issues have been as follows:—

£ December 27, 1937 15,233,127 December 28, 1938 16,641,425 December 25, 1939 19,292,125 Highest hitherto, December 2, 1940 20,740,000 Highest hitherto, December 2, 1940, £20,740,000. Sterling exchange shows an increase this week of £51,635; at this time last year it was £6,204,734. No movement is shown in advances to the Government for purposes other than marketing, viz., at November 4, 1940, £23,690,000. The statement oi the assets and liabilities is all in New Zealand currency, including sterling exchange, and is as follows:— LIABILITIES. £NZ i. d. £NZ General Reserve 1,500,000 0 0 Unchanged Bank-notes ... 21,407,283 0 0 *667,251 Demand LiabilitiesState* 6,558,909 10 1 *745,582 Banks 12,427,746 16 0 t1,205,546 Other 343,806 9 6 U2.565 Currencies other than N.Z. ... 6,576 6 2 t3,102 Other liabilities . 950,761 6 0 *10,945 £NZ43,195,084 7 9 *202,567 ASSfcTS. £NZ s. <L £NZ ReserveGold 2,801,859 10 0 . *7 Sterl. exchange 8,744,913 4 5 *51,635 Subsidiary coin 65,092 5 8 f8,465 Advances to State— Marketing ... 3,151,875 19 0 *205,04 it Other purposes 23,690,000 0 0 Unchanged Investments ... 3,771,659 19 0 Unchanged Other assets ... 969,683 9 8 t45,660 £NZ43,195,084 T 9 *202,567 tDecreass. 'Increase. Proportion oi reserve (reserve ' less liability in currencies other than New Zealand currency) to notes and other demand liabilities, 28.328 per cent., compared with 24.329 per cent, for the week ended December 2, 1940. The statutory limit is 25 per cent. I 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 April 1 „.... 12,707,890 July I B 13,420,644 October 7 9,396,187 November 18 9,274,593 November 25 8,823,414 December 2 8,693,277 December 9 8,744,913 Advances to the State for purposes other than for the Primary Products Marketing Department on June 6. 1938, were £300,000; January 2, 1939, they were £11,000,000. During i 940 the advances have increased from £19.310,000 on April 1 to £25,140,000 on October 14; reduced to £23,690.000 on November 4, at which they now stand. Principal items in the weekly return at this' time last year, compared with those for this week, are as follows:— i I Dec. 11. Dec. 9. I 1939. 1940. £ £ Bank-notes 17,966,332 21,407,283 Demand Liabilities— State 3,211.302 (i.558,909 Banks 12,007,843 12,427,747 Other liabilities ... 167,859 343,80fi Other currencies .. 15,462 6,576 Other liabilities 661,032 950,761 Gold 2,801,830 2,801,850 Sterling exchange ... 6,204,734 8,744,913 Advances marketing . 5,326,270 3,151,876 Advances State 17.475,000 23,690,000 Investments ....... 3,377,198 3,771,660 Ratio per cent 26.933 28.328