STATE BORROWING

Poverty Bay Herald, Volume LXIII, Issue 19130, 26 September 1936, Page 2

STATE BORROWING

KESEBVE BANK FUNDS £884,000 ETSE IN WEEK DAIRY ACCOUNT AT £894,231. V new feature appears in the weekly return of the Reserve Bunk, gazetted in Wellington on Thursday. Phe figure under the item "Advances to the .Suite or to State undertakings " lias increased by £884.051. compared with the level the previous week, but the amount advanced on account, of dairy produce export is directly shown for the first time The total, £1.594.231. is itemised as (1) Darrv industry account.. £894,231, and (21 For other purposes, £700,000. The first return in the history oMhe bank showing any advances to the Nate was that- Gazetted on August M- showing the position at the close of business on Monday, August 17. The amount ol tne advances then was £49,434. The weeklv variations in subsequent returns have Wen as follows :

August 17 J9.A3J August 24 ... • 47,f54 August 31 65*Uf : September 7 j^fj September 14 710,200 September 21 1,594,231 Until the return just, issued the only possible assumption was that the whole of the advances were in the dairy produce account. No official indication has been given of the other purposes for which the. Government is now drawing upon the funds of the Reserve Bank. _ Another noteworthy movement in this week's statement is a decrease ol £1.927.572 in the value of the sterling exchange reserve. A corresponding tail of £1.695.110 in the level of Government deposits with'the bank suggests a State purchase of London funds to meet' some considerable payment possibly interest, on overseas loans, tailing due* at the end of the month.