RESERVE BANK.

Manawatu Standard, Volume LX, Issue 227, 23 August 1940, Page 10

RESERVE BANK.

RECORD NOTE ISSUE. The outstanding- features of the weekly statement of the Reserve Bank of New Zealand this week arc the new high records set by the noto issue and advances to the StAtc. The noto issuo is now above the £20,000,000 level for the first timo, on record. Advances to the State for “other purposes'’ than marketing total £23,240,000, a figure that is £9,490,000 in excess of that, shown a year ago. A further decrease of £39,785 brings the total sterling exclmngc funds down to £12,192,412. The weekly statement of assets and liabilities of tho Reserve Bank as at the close of business on Monday, August 19, is as follow

* Expressed in New Zealand currency. Proportion of reserve (No. 7 loss No. 5) to notes and other demand liabilities, 35,557 per cent., compared with 36.154 per cent, on August 12. * The reserve- on Monday totalled £14,979,634, compared with £15,018,463 on August 12, a decrease of £38.829. A year ago the reserve was £8,244.426, and on 22. 1938, it totalled £17,307,902. Sterling exchange funds on Monday totalled £12,192,412, compared with £12,232.197 on August 12, a decrease of £39;785. Liabilities in currencies other than New Zealand currency on Monday wore £14,629 (a decrease of £956). thus making- the bank's net overseas assets £12,177,783, .compared with £12,216,612 on August 12, a decrease of £38,829. A year ago the bank's net overseas assets amounted to £5,442,587, and on August 22, 1938, they totalled £14,494,637. Advances to the State Marketing Department total £3,336,003, a decrease of £204,864. Advances to the State for other purposes bliow a major increase of £820,000, and Have now reached the record high level of £23,240,000. A year ago these advances amounted to £13,750,000. For the first time on record the note issue has passed the ' £20,000,000 mark, the present record figure showing an increase for the week of £221,408. A year ago the note issue stood at £15,779,715; thus the latest figuro of £20,000,590 represents an increase over the last twelve months of £4,220,875.

LIABILITIES. £ s d 1. General reserve fund ... 1,500,000 0 1/ 2. Bank not™ 20,000,590 10 0 3. Demand liabilities— (a) State 4.878,714 16 7 (b) Banks 16,925,797 14 11 (ej Other 323,553 14 1 4. T ime deposits — 5. Liabilities in currencies other than N.Z. currenov 14,628 17 11 6. Other liabilities 8b7,533 17 9 £N.Z.44,510,841 11 3 ASSETS. 7. Reserve--- ' £ s d (a) Gold 2,801.851 0 0 (b) Sterling oxchange *32,192,411 18 4' (c) Gold exchange — 1 8. Subsidiary coin 125,751 0 6 9. Discounts — (a) Commercial and agricultural bills ... — (b) Treasury and local body bi!L — 10. Advances — (a) To the State or State undertakings: (1) Marketing Dept. 3,35b,002 18 9 (2) For other purposes 23,240,000 0 0 (b) To other public authorities — (c) Other — 11. investments 2,643,804 2 1 12. Bank buildings — 13. Other assets 271,020 11 7 £N.Z.44,510,841 11 3