RESERVE BANK

Nelson Evening Mail, Volume LXXII, 27 January 1939, Page 7

RESERVE BANK

SMALL RISE IN STERLING FUNDS

RESERVE RATIO SHADE LOWER WELLINGTON, This Day. The sterling exchange funds of the Reserve Bank of New Zealand on Monday totalled £N.Z.4,395.526, an increase of £22.421, against which was an increase of liabilities in other currencies of £20.348. The proportion of reserves to notes and other demand liabilities | was 26,695 per cent. Other features of the bank’s statement are a decrease of £291.735 in the note issue, an increase of £369,631 in the trading banks’ cash reserves, a decrease of £161.790 in dairy produce advances, and a further increase of £130.000 in State advances for “other purposes.” The statement of assets and liabilities of the Reserve Bank as at the close of business on Monday, 23rd January, is as follows;

♦Expressed in New Zealand currency. The proportion of reserve (No. 7 less No. 5) to notes and other demand liabilities, 26.695 per cent., compared with 26.782 per cent on 16th January, and 25.526 per cent on 9th January. The “proportion” on 24th January, 1938, was 70.789 per cent. The reserve on Monday aniounted to j £7,173.999, as against £7,171,927 on I 16th January, an increase of £2072. On 24th January, 1938, the bank’s reserve was £19,010,980. Sterling exchange expressed in New Zealand currency totals £439,526, compared with £4,373,105 on 16th January, an increase of £22,421. Against this, liabilities in currencies other than New Zealand currency total £23,317, as against £2969 on 16th January, an in-1 crease of £20,348. Thus the net in- 1 crease in the bank’s overseas assets is l only £2073. A year ago the bank’s sterling funds totalled £17,209,189. Gold remains unchanged at £2,801.791. Subsidiary coin totals £192,506, a decrease of £397. Treasury bills discounted are unchanged to £500,000. Advances to the Primary Products Marketing Department amount to £5,866.716, a decrease of £161,790. Advances to the State for “other purposes” total £111,100,000, an increase of. £ 130,000. Investments at £3,603.300 show no; change. Other assets total £191,583, an; increase of £ 142,809. A further decrease of £291,735 brings, the note issue down to £15,538,328, but the amount is still £1,242,369 in excess of the total of £14,295,959 on 24th January, 1938. Demand liabilities to the State amount to £2.789,466. a decrease of £11,679. A further increase of £369.631 brings the total of the trading banks reserve balances up to £8,382,438. Other demand at £164,010, show an increase of £30,048. Other liabilities total £253,863, an increase of £ 16,431, The statement balances at £28,651,422, an increase of £133.043.

LIABILITIES £ s. d. 1. General Reserve Fund 1,500.000 0 0 2. Bank notes 15,538.323 0 0 3. Demand Liabilities— (a) State 2,780,465 13 4 tb) Banks 8.382,438 9 10 (c) Other 164.009 42 1 4. Time deposits — 5. Liabilities in currencies other than

6. N.Z. currency Other liabilities .... 23,317 253.863 10 2 5 11 £ (N.Z. 28.651.422 8 7 7. ASSETS Reserve— (a) Gold 2.801,791 0 0 *tb) Sterling exchange 4,395,525 19 4 (c) G o 1 d e xchange _ _ _ 8. Subsidiary coin .... 192.506 10 2 9. Dicounts— ta) Comercial and Agricultural Bills .... (b) Treasury and Local Body Bills 500,000 0 0 10. Advances — ta) To the State or State undertakings— til Primary Products Marketing Dept 5,866,715 17 9 (ii) For other purposes 11,100,000 0 0 tb) To other public public authorities (c) Other — — — 11. Investment s 3,603,300 6 2 12. Bank buildings .... — — — 12. Other assets 191,582 15 2 £ tN.Z.) 28,651,422 8 7