RISE IN LONDON FUNDS

Southland Times, Issue 23839, 9 June 1939, Page 6

RISE IN LONDON FUNDS

HOLDING OF RESERVE BANK INCREASE OF £1,318,102 THIS WEEK (Special to The Times) WELLINGTON, June 8. For the first time since November 21, 1938, the sterling exchange held by the Reserve Bank of New Zealand has exceeded £5,000,000. The amount shown in the return for the week ended June 5 is £5,882,308, an increase of £1,318,102 on the amount given the previous week. State deposits show a big rise of £2,064,274, but other deposits, including the trading banks, are down by £1,972,665. Advances to the Primary Products Marketing Department have dropped by £1,504,654. Tlie bank’s proportion of reserve to notes and other demand liabilities has risen from 25.136 per cent, to 29.655 per cent. The statement, with variations compared with file previous week, is as follows:—

Proportion of reserve to notes and other demand liabilities, 29.655 per cent. (25.136 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 Variation. £ £ General reserve 1,500,000 same Bank notes 15,597,365 + 25,315 Demand liabilities— State 4,613,816 + 2,064,274 Banks 8,484,725 —944,054 Other 510,069 —1,028,611 Other currencies 23,022 —19,875 Other liabilities 505,219 +164,210 TOTAL 31,234,216 +216,258 ASSETS Varlation. £ £ Reserve — Gold 2,801,839 same Sterling exchange 5,882,308-+1,318,102 Subsidiary coin 220,597 —2,235 Advances— Marketing Dept. 5,987,695 —1,504,654 Other (State) 12,125,000 + 100,000 Other 200,000 + 200,000 Investments 3,766,914 —3,875 Other assets 249,863 + 108,920 TOTAL 31,234,216 +216,258

(OOO’b omitted) Varia1939 1938 tion. £ £ £ Notes 15,597 13,832 +1,765 Deposits— State 4,614 4,791 —177 Banks 8,485 7,518 + 967 Exchange 5,882 17,802 —11,920 Advances — Marketing 5,988 3,963 +2,025 Other (State) 12,125 300 + 11,825 Investments 3,767 2,736 + 1,031 Ratio (per cent.) 29.655 77.91 —48.255

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 May 29 4,564,206 June 5 5,882,308

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 1 25.722 May 15 25.499 May 22 25.611 May 29 June 5 25.136 29.655