RESERVE BANK.

Manawatu Standard, Volume LIX, Issue 68, 17 February 1939, Page 5

RESERVE BANK.

STERLING FUNDS RISE SLIGHTLY. STATE ADVANCES INCREASE. The sterling exchange funds of tho Reserve Bank of New Zealand on Monday totalled £N.Z.4.164,499, an increase of 3 £N.Z.89,545. The bank's net overseas 3 funds amount to £4,151,833. The propor- - Lon of reserve to notes and other demand liabilities is a shade higher at 25.073 per - cent. Advances to the Primary Products Marketing Department at £6,552.350 have risen j by £77.918. Advances to. the Slate for “other purposes” have reached the high j level of £12,050,000, an increase of £IOO,OOO. ‘ The total indebtedness of the State to the > Reserve Bank this week is £18,602,350. ; The note issue at £15,110,912 is down . by £95,342. State deposits at £3,504,717 - are up £266,733. and the trading banks' cash at £9,029,753 is liighor by £169,425. The statement, of assets and liabilities of the Reserve Bank as at the close of ' business on Monday, February 13. is as ■ follows:-

7. Reserve- £ s < (a) Gold 2,801.791 0 ( (b) Sterling exchange . 4,164,499 8 i (e) Gold exchange 8. Subsidiary coin 204.553 5 9. Discounts—(a) Commercial a n d Agricultural Bills ... (b) Treasury ami local • body bills 10. Advances—(a) To tho State nr State undertakings—(i) Primary P r inducts Marketing Dept 6,552,349 19 f (ii) For other purposes 12,050,000 0 ( (b) To other Public Authorities (e) Other 11. Investments 3,652,138 18 f 12. Bank buildings 13. Other assets 121,696 7 l £N.Z.29,547,023 19 1 Proportion of reserve (No. 7 less No 5) to notes and other demand liabilities 25.073 per cent., compared with 25.047 pel cent, on February 6. and 68.438 per cent, on February 14, 1938. The statutory limit is 25 per cent. The reserve on Monday amounted u ' £6.953,624, compared with £6.865,775 01 February 6, an increase of £87,849. Ot February 14. 1938, the bank’s reserve to tailed £19,263.930. Sterling exheange, expressed in New Zealand currency, this week totals £4,164,499. as against £4.074,954 on February 6,_ an increase of £89.545. These are liabilities | in currencies other than New Zealand currenc,v this week amounted to £12,667 (an increase of £1696), thus reducing the net overseas assets of tho Reserve Bank to £4,151.333. A year ago. the overseas assets amounted to £16.462.189. Gold remains unchanged ai £2,801.791. Subsidiary coin at £204,553 is down by £lO5. ‘ , Advances to the Primary Products .Marketing Department total £6.552,350. an increase of £77,918. Advances to the State for “other pur poses’’ have risen to £12,050,000, an 111 crease of £IOO.OOO. Investments show a further increase of | £5754. the total now being £3,652,139. Other assets amount to £121,696, an increase of £18.196. I A further decrease of £95,342 brings i the note issue down to £15.110,912. but it is still £1,143.520 in excess of the total of £13,967,392 shown a year ago. Demand liabilities to the State amount to £3,504,717, an increase of £266,735. The trading banks’ lescrvo balances have increased by another £169,425, and. now total £9.029,753. Other demand liabilities amount to £87.175, a decrease of £19,709. Other liabilities total £301,806, a decrease of £31,494. The statement balances ai £29,547,029, an increase of £291.309. MOVEMENTS IN EXCHANGE. The movements in the sterling exchange held by the Reserve Bank of New Zealand during the last few months and the decrease in the ratio percentage of reserve to notes and other demand liabilities, are shown in the following table; — Sterling Reserve exchange, ratio £ (N.Z.) per cent. 1937 December 27 1b,992.748 70.323 1938. August 29 13.695,000 ' 67.2 September 5 12.639,000 65.847 September 12 12.681.343 66 428 September 19 12.247,006 63.853 September 26 11,449,447 60.785 October 3 10 594,978 57.259 October 10 9.900 233 57.903 October 17 9.118,330 52.27 October 24 8.313.575 43.451 October 31 7,707.697 46.09 November 7 6.633.031 39.73^ November 14 5,662.977 36.825 November 21 5.029,137 33.723 November 28 4.828.302 32 .* December 5 4,200,856 29.834 December 12 4,572,031 30.333 December 19 4.368,095 28. K* December 26 4,678,233 27.832 1939. January 2 4.017.232 26.13 January 9 3,933,851 25.526 January 16 4,373,105 26.782 January 23 4,395.525 26.695 j January 30 4,133.586 25.75 February 6 4,074.954 25.047 Feb. 13 «... 4.164,499 25.073 The statutory minimum of the reserve ratio is 25 per cent.

LIABILITIES. o d I. Ooneral reserve fund ... 1.500.000 0 0 2. Bank notes 15,110,912 0 0 3. Demand Liabilities— (a) State 3,504,716 14 2 (b) Banks 9,029.752 14 3 (c) Other 87,175 3 3 4. J inic Deposits — 5. Liabilities in currencies other than N.Z. cur i-cnoy 12.666 14 1 6. Other liabilities 301,805 13 6 £N.Z.29,547,028 19 3 ASSETS.