RESERVE BANK RETURN

Southland Times, Issue 23827, 26 May 1939, Page 3

RESERVE BANK RETURN

SLIGHT INCREASE IN EXCHANGE DECREASE IN STATE DEPOSITS (Special to The Times) WELLINGTON, May 23. A rise of £63,350 in the sterling exchange held by the Reserve Bank is shown in the return for the week ended May 22. State deposits have dropped by £702,623, but those of the trading banks have increased by £164,118. There is a slight increase in advances to the Primary Products Marketing Department, and no change in the amount advanced to the Government for other purposes. The statement, with variations compared with the previous week, is as follows:—

Proportion of reserve to notes and other demand liabilities, 25.611 per cent. (25.499 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 following table:—

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

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: —

LIABILITIES Varia- £ tion. £ General reserve 1.500,000 same Bank notes 15,878,066 4-37,897 Demand liabilities — State 2,308,851 —702,623 Banks 10,628,174 4-164,118 Other 734,514 4- 636,893 Other currencies 43,578 —4,454 Other liabilities 586,297 4-5,967 TOTAL 31,479,481 4-137,798 ASSETS £ Variation. £ Reserve — Gold 2,801,839 same Sterling exchange 4,758,544 4-63,350 Subsidiary coin 222,895 —816 Advances — Marketing Dept. 7,525,336 4-19,779 Other 12,175,000 same investments 3,770,789 same Other assets 225,078 4-55,485 TOTAL 31,479,481 4-137,798

(OOO's omitted) Varia1939 1938 tion. £ £ £ Notes 15678 14,001 + 1,677 Deposits— State 2,309 4,090 —1,781 Banks 10,628 7,128 +3,500 Exchange 4,759 18,122 —13,363 Advances — Marketing 7,525 3,254 + 4,271 Other 12,175 + 12,175 Investments 3,771 2,736 + 1,035 Ratio (per cent.) 25.611 82.23 —56.619

1938 £(N.Z.) 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 1939 January 2 4,017,232 February 6 4,074,954 March 6 4,705,897 April 3 4,663,310 May 1 4,817,992 May 8 4,708,706 May 15 4.695,194 May 22 4,758,544

1938 Per cent. 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 1939 January 2 26.13 February 6 25.047 March 6 25.017 April 3 25.942 May 1 25.815 May 8 25.722 May 15 25.499 May 22 25.611