RESERVE BANK

Manawatu Standard, Volume LX, Issue 263, 4 October 1940, Page 10

RESERVE BANK

HIGH LEVEL OF NOTE ISSUE. RECORD STATE ADVANCES. ». WELLINGTON. Oct. 4. Advances by the Reserve Bank of Now Zealand to the State for ■* purposes other than marketing have reached a new record high level, an increase of £1,000,000 last week bringing the total to £25,040,000. The note issue is also a now high record at £20,108.913, a total which is £3,217,886 higher than that of a year ago. Sterling exchange funds total £9,987,894, a decrease for the week of £113,960. This decrease, coupled with an increase in overseas, currency liabilities, reduces the bank’s not overseas assets t.O £9,965,397. The weekly statement of assets and liabilities of the Reserve Bank as at the close’ of business on September 30 is as follows: —

£N.Z.43,736,925 17 2

*Exprcssod in N.Z. currency. Proportion of reserve (No. 7 less No. 5) to notes and other demand liabilities, 30.84 per cent., compared with 31.651 per cent, on September 23. Tito reserve on Monday amounted to £12,767.249, compared with £12.891.195 on September 23, a decrease of £123,946, A

year ago the reserve was £8,124,419, and on October 3, 1938, it totalled £13,380,678. Sterling exchange on Monday totalled £9,987,894, compared with £10.101,854 on September 23, a decrease of £113,960. Liabilities in currencies other than New Zealand currency on Monday amounted to £22,497 (an increase of £9986), thus making tho bank’s net overseas assets £9.965,397, compared with £10,089.343 on September 23, a decrease of £123,946. A year .ago the bank’s net overseas assets were £5.322.580, and on October 3. 1938 tliev totalled £10.578,887.

Advances to the. State Marketing Department, at £2,975,021, show a decrease of £59,060. A year ago these advances totalled £4,865,263. An increase of £1,000,000 in advances to the State for other purposes brings them up to a now record high level of £25,040,000. A year ago these advances totalled £16,800,000, and on October 3 1938, they were only £4,575,000. The note issue has reached a new rerord high level, an increase nf £9665 bringing the total up to £20.108,913. This is £3.217,886 in excess of the total of £16,891,027 shown a year ago.

LIABILITIES. £ s d 1. General reserve hind ... 1.500.000 0 C 2. Bank notes' 20,108,913 0 0 3. Demand liabilities — (a) Slate 5,574,379 11 6 (b) Banks 15,450,164 12 2 (c) Other 264,473 4 4 4. Time deposits — 5. Liabilities in currencies other than N.Z. currcnc'y 22,497 0 3 6. Other liabilities 816,498 8 11 £N.Z.43,736,925 17 2 ASSETS. ' 7. Deserve — £ fi d (a) Gold 2.801.852 0 0 (b) Sterling exchange '*9,987,894 9 5 (c) Gold exchange — 8. Subsidiary coin 116,948 1 9 9. Discounts — (a) Commercial ana agricultural bills ... — (b) Treasury and local body bilL — 10. Advances— (a) To the State or State undertakings: (1) Marketing Dept. 2,975,021 8 6 (2) For other purposes 25,040,000 0 0 (b) To other public authorities — (c) Other — 11. Investments 2,553 219 12 11 12. Bank buildings 13. Other assets 261,990 4 7