RESERVE BANK RETURN

Southland Times, Issue 23681, 2 December 1938, Page 3

RESERVE BANK RETURN

ANOTHER DROP IN LONDON FUNDS TOTAL HELD NOW UNDER £5,000,000 (Special to The Times) WELLINGTON, December 1. The sterling exchange held as assets by toe Reserve Bank of New Zealand has fallen below £5,000,000, toe total at toe close of business on Monday being £4,828,302. Although this is a reduction of £200,835 compared with the previous week the fall is not as great as the three previous reductions in November. A year ago toe exchange held by toe bank totalled £16,586,526. State deposits have increased by £769,424, but those of the trading banks are £411,794 less. Advances to toe Marketing Department have risen to £5,022,442, an increase of £323,409. There is no change in toe amount borrowed by toe Government for other purposes. The statement is as follows:—

Proportion of reserve to notes and other demand liabilities, 32.685 (33.723 per cent last week). The principal items in this week’s return are compared with those at toe corresponding date last year in toe following table:—

Sterling exchange held by the Reserve Bank for toe past 12 months as at the first week of toe month showed toe following variations: —

The proportion of reserve (less reserve liabilities in currencies other than New Zealand currency) as at toe beginning of each month for toe last year has been as follows; — 1937. Per cent.

COLOMBO TEA AUCTION J. Rattray and Son, Ltd., Invercargill, report having received the following cabled report of toe tea auction held in Colombo on Tuesday:— “Good quality teas offered with heavy supplies; strong demand for all grades, with firmer tone and prices unchanged. Quantity 2,000,0001 b, Next sale: 2,250,0001 b.”

LIABILITIES Variation £ General reserve /1,500,000 Same Bank notes. 44,587,365 +91,093 Demand liabilities— . State r 2,997,757 +769,424 Banks 5,134,687 —411,794 Other . • 563,366 —321,208 Other - currencies 19,880 —2,069 Other liabilities 173,154 + 9,060 TOTAL 24,976,207 + 134,503 ASSETS . ■ ? . £ ' ’ £ Reserve— ' Gold ’ 2,801,791 Same Sterling exchange 4,828,302 —200,835 Subsidiary coin 205,740 —3,772 Advances— Marketing Dept 5,022,442 + 323,409 Other 8,500,000 Same Investments . - 3,509,475 + 8,604 Other assets; 108,458 +7,098 TOTAL 24,976,207 + 134,503

OOO’s omitted 19&8 £ 1937 £ Variation £ Notes 14,587 13,319 +1,268 Deposits— State 2,998 5,189 —2,191 Banks 5,135 6.729 —1,594 Exchange 4,828 16,587 —11,759 Advances— Marketing 5,022 4,591 + 431 Other 8,500 700 +7,800 Ratio (per cent.) 32.085 74.768 —42.083

1937 £ (N.Z.) November 1 17,148,967 December 9 16,184,928 . 1938. January 3 16,414,909 February 7 15,700,699 March 7 15,617,116 April 4 16,169,496 May 2 17,627,443 June 6 17,801,586 July 4 15,941,567 August 1 15,322,308 September 5 12,638,656 October 3 10,594,978 November 7 6,633,031 November 14’ 5,662,977 Novem_ber 21 5,029,137 November 28 4,828,302

November 1 76.083 December 6 73.89 1938. January 3 70.088 February 7 67.039 March 7 66.019 April 4 75.542 May 2 79.569 June 6 77.906 July 4 76.181 August 1 69.249 September 5 65.847 October 3 57.259 November 7 39.733 November 14 36.825 November 21 33.723 November 28 32.685