THE RESERVE BANK.

Manawatu Standard, Volume LIX, Issue 161, 9 June 1939, Page 5

THE RESERVE BANK.

STERLING EXCHANGE INCREASES. DAIRY ADVANCES BOWER. RESERVE RATIO, 29.655 PER CENT. , A substantial improvement; of £1,318,102 in tho .sterling exchange funds of the Reserve Ba.tik of New Zealand brought fhe total amount, up to £5,882.308 on Mon-, day, the highest level since November 14. The proportion of reserve to notes and other liabilities was 29.655 per cent, as against 25,136 per coni on May 29, and, llio best, position since December 12. Other j features of tile bank’s statement are a; large decrease in dairy produce- advances, an increase of £IOO,OOO in advances to tlioj State for other purposes, advances other than to tJie State or public bodies of £200,000, and a largo increase in State deposits. Tiic statement of assets and liabilities of tho Reserve Bank as at the close of business on Monday, June 6, is as follows : LIABILITIES. £ s d 1. General reserve fund ... 1.500,000 0 0| 2. Bank notes 15,597,365 0 0j 3. Demand liabilities — (a State 4,613.816 4 7■> (b) Banks 8,484,724 17 0 (c) Ollier 510,068 13 3 4. Time deposits 5. Liabilities in currencies olher tho n N.Z. currency 23.021 17 10 6. Other liabilities 505,219 2 1 £N.Z.31,234,215 14 9 ASSETS J Reserve— 1- s cl (a) Gold 2.801,839 0 0 (b) Sterling exchange . *5,882,307 18 4 (c) Gold exchange „ 8. Subsidiary coin 220,596 12 0 0. Discounts—la) Commercial and Agricultural Bills . (b> Treasury and local body bills —* 16. Advances—(a) To I lie Stale or State undertakings: (i) Primary Products Marketing Dept 5,987,695 0 2 (ii) For other pur--1 ’ 11QS0S 12,125,000 0 0 (b) To other public . authorities „ n (c) Ollier 200,000 0 0 11. Investments 3,766,914 0 U 12. Bank buildings n x 13. Other assets 249,865 4 3 £.N.Z.31,234.215 14 9 -Expressed in N.Z. currency. Proportion of reserve (No. 7 less No. 5) to noles and other demand liabilities, 29 655 per cent., compared with 45.130 per cent, on May 29 and 77.906 per cent, on June 6, 1933. . , , The reserve on Monday amounted lo £8,661,125, compared with £7,323 148 on May 29, an increase of £1,337,977. On June 6, 1933, the bank’s reserve totalled £20,603,377. . - Sterling exchange on Monday had uson to £5,882,308, an increase for the week ot £1,318,102. bringing it up to the highest level shown since November 14, 1930, when the ligure was £5.662,977, Liabilities in curreneies other than New Zealand currency oil Monday amounted to £23,022 (a decrease of £19,875), thus making the bank's net overseas assets £5,859.286, an increase for the week of £1,337,977. A year ago the bank's net overseas assets totalled £17,801,586. . The bank’s gold holding is unchanged at £2,801,839. Susidiary coin amounts to £220,597, a, decrease of £2235. . A substantial decline of £1,504,654 is shown in the advances to the Primary Products Marketing Department, which on Monday totalled £5,937,695, as against £7 492.349 on May 29. Tho decrease probably is accounted for by realisations in London and reduced shipments from New Zealand. Advances to The Stale for ‘-oilier purposes” amount to £12,125,000. an increase of £IOO,OOO. , r , nAn For the first time art amount of £200,000 appears under tho heading of “other” advances, i.c., outside the State or other public authorities. Investments at £3,766,914 show a reduo tion of £3875. Other assets total £249,863. an increase of £108,920. The note issue totals £15.597,365, an increase of. £25,315. The present total is £1,765,082 above that of £13,832,283 a year ago. Demand liabilities lo the State total £4,613.816, compared with £2,549,542 on May 29, tho large increase being duo to payments of social security ' taxation. The trading banks’ cash balances amount to £8.484,725, a further decrease of £944,054. Other demand liabilities at £510,069 show a decrease of £1,073.611. Other liabilities total £505.219, an increase of £164.210. The statement balances at £31,234,216. an increase of £216,258. MOVEMENTS TN STERLING EXCHANGE. The movements in tho sterling exchange held by the Reserve Bank of New Zealand during tho last few months and the decrease in the ratio percentage of reserve to notes and other demand liabilities, am shown in the following table: Sterling. Reserve exchange, ratio.

The opinion that the time had arrived when New Zealand should seriously consider if it would not lie better to abandon much of the - deteriorated land in tho back country, and concentrate on the better class land, was expressed bv Air T. T. Murray, Toko, at the annual conference of the. North Taranaki provincial executive of the Farmers’ Union at Inglewood.

1937. £{.\.Z.) per cent. December 27 1933. 16.992,748 70.323 August 29 13.695,000 67.2 September 5 12.639,000 65.847 September 12 12.681,343 66.423 September 19 12,247,006 63.853 September 26 11.49.447 60.785 October 3 10.594,978 57.259 October 10 9.900.233 57.903 October 17 9,118.330 52.27 Oetobcr 24 8.313,575 43.451 October 31 7.707.697 46.09 November 7 6.633.031 39.733 November 14 5.662,977 36.825 November 21 5,029.137 33.723 November 28 4.828.302 32.685 December 5 4.200,356 29.834 December 12 4,572,031 30.333 December 19 4.363,095 28.109 December 26 4,678,233 27.882 1939. .Tannery 2 4,017.232 26.13 January 9 3.933.851 25.526 January T6 4.373,105 26.782 .Tanmii'v 23 4.395,525 26.695 January 30 4.133,586 25.75 February 6 4.074,954 25.047 February 13 4.164.499 25.073 February 20 4.523,031 25.378 February 27 4,839.555 25.799 March 6 4.705,897 25.017 March 13 4.591.686 25.026 March 20 4,547,863 25.129 March 27 4.659,874 25.419 April 3 4.663,309 25.024 April 10 4,598.652 25.501 April 17 4,872.818 26.305 April 24 4,659,061 25.11 Mav 1 4,817,992 25.815 Mav 3 4,703,706 25.722 May 15 4,695.194 25.499 Mav 22 4.753,544 26.611 May 29 4.564.206 25,136 June 5 5,882,308 29.655 'flic statutory minimum of (be reserve ratio is 25 per cent.