RESERVE BANK RETURN

New Zealand Herald, Volume LXXII, Issue 22094, 27 April 1935, Page 14

RESERVE BANK RETURN

SALE OF GOLD SHOWN HOLDING DOWN £200,000 EXCHANGE £417,000 HIGHER [UY TELEGRAPH —PRESS ASSOCIATION] WELLINGTON. Friday The Reserve Bank return for the week ended April 22 was gazetted tonight. The statement is balanced at £27,579,508, or £199,147 more than at the close of the previous week. The outstanding feature is a decrease of £200.000 in the gold holding compared with the level a week earlier. The sale thus indicated is the first to have taken place since last November. Naturally linked with the gold sale is an increase of £417,000 in sterling exchange, doubtless representing the realisation of the metal in London.

On the liabilities side, State deposits have increased by £247,690, while the holdings of the trading banks are down by £82,166. An increase of £31,589 in the note issue, added to a rise of £21,321 in the previous week, can be taken as a result of the holiday demand for cash currency. The statement, with variations compared with a week before, is as fol-

lows: — LIABILITIES Variation 1. Capital £500,000 Same 2. Gen. reserve . 1,000,000 Same 3. Bank notes . , . • . 9,430,059 31.5S9+ 4. Demand liabilities- — (a) Slate . 12,383,828 247,696t (b) Banks 4,174,052 82,166* (c) Other 7,311 715* 7. Other liabilities . 84,253 2,743t Total £27,579.503 £199,1471 ASSETS 8. Reserve— (a) Geld ■ . £2.801,731 £200,000* (b) Sterling Ex. 22,484,908 417,0071 9. Subsidiary coin . 173,1172 1.G57 * 12. Investment 2,095,807 Same 14. Other assets •23,385 16,203* Total £27,579.503 £199.147* 'Lower. Proportion of reserve to notes and other demand liabilities 97.2/ per cent (97.17 last week).