RESERVE BANK RETURN

Southland Times, Issue 23739, 10 February 1939, Page 3

RESERVE BANK RETURN

EXCHANGE HOLDING REDUCED RATIO REACHES NEW LOW LEVEL (Special to The Times) WELLINGTON, February 9. A new low record for the proportion of reserve to notes and other demand liabilities was established by the Reserve Bank for the week ended February 6, the percentage being only .047 above the statutory minimum of 25 per cent. The bank’s holding of sterling exchange showed a drop for the week of £58,632 to The smallest holding of exchange yet recorded by the bank was £3,933,851 on January 9, but on that occasion the proportion of reserve to liabilities was 25.526. An increase of £637,459 was shown in the total of liabilities, an increase of £614,432 in State deposits being the biggest contributing factor. Advances, to the Primary Products Marketing Department showed an increase for the week of £316,262 to £6,474,431. Other advances snowed an increase of £850,000 to £11,950,000. The. statement with variations compared with the previous week is as follows:—

TOTALS 29,255,719 +637,459 Proportion of reserve to notes and other demand liabilities, 25.047 per cent. (25.75 per cent, last week). Sterling exchange is -expressed in New Zealand currency. The principal items in this week’s return are compared with those at the corresponding date last year in the fol-

Sterling exchange held by the Reserve Bank for the past 12 months as at the first week of the month showed the following variations:— 1938 £(N.Z.) 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 December 5 4,200,856 December 12 4,572,031 December 19 4,356,095 December 26 4,678,233 January 2 4,017,232 January 9 3,933,851 January 16 4,373,105 January 23 4,395,526 January 30 4,133,586 February 6 4,074,954 The proportion of reserve (less reserve liabilities in currencies other than New Zealand currency) as at the beginning of each month for the last year has been as follows:— 1938 Per cent. 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 December 5 29.834 December 12 30.333 December 19 28.109 December 26 27.882 1939 January 2 26.13 January 9 25.526 January 16 26.782 January 23 26.695 January 30 25.75 February 6 25.047

LIABILITIES £ Variation. £ General reserve 1,500,000 same Bank notes 15,206,254 —159,604 Demand liabilities— State 3,237,983 + 614,432 Banks 8,860,328 + 273,028 Other 106,884 —155,277 Other currencies 10,970 —13,278 Other liabilities 333,300 + 78,458 TOTALS 29,255,719 + 637,459 ASSETS £ Reserve— . Variation. £ Gold 2,801,791 same Sterling exchange 4,074,954 ■ —58,632 Subsidiary coin 204,658 + 8,874 Discounts— Treasury and local body bills 500,000 same Advances— Marketing Dept. 6,474,431 +316,262 Other 11,950,000 + 850,000 Investments 3,646,385 +12,569 Other assets 103,500 +8,385 — Ill

lowing table:— (000's omitted) Varia1939 1938 tion. £ £ £ Notes 15,206 14,068 + 1,138 Deposits— State 3,238 3,390 —152 Banks 8,860 9,486 —626 Exchange 4,075 15,700 —11,625 Advances— Marketing 6,474 6,460 + 14 Other 11,950 1,100 + 10,850 Investments 3,646 2,941 + 705 Ratio (per cent.) 25.047 67.04 —41.993