RESERVE BANK

Timaru Herald, Volume CXLII, Issue 20532, 25 September 1936, Page 8

RESERVE BANK

MANAGEMENT OF PUBLIC DEBT By Telegraph—Press Association WELLINGTON. September 24. The Hon. W. Nash, Minister of Finance, has announced that the Reserve Bank of New Zealand would assume management of the public debt on October 1, and that the notice of requirement made upon the bank in this regard was contained in the Gazette. The Minister stated that provision was made in the original legislation establishing the institution whereby the Bank, on the request of the Minister, should keep a New Zealand register of Inscribed stock, and act as agent for the Treasury in the payment ofi nterest and principal, and generally in respect of management of the public debt. This arrangement is in conformity with recognised principles of central banking, it being one of the usual functions of an institution of this nature to undertake on behalf of the Government services which are incidental to or are reasonably associated with the raising of Government loans, the issue of securities in connection therewith, discharge of obligations to holders of such securities, the keeping of records of all loan transactions, and accounting for all proceeds of such loans. The Minister said that Treasury officers at present employed on the special work involved would be transferring to the staff of the Reserve Bank, and as far as the usual service to the public was concerned, no material change would be evident other than that the bank will, from October 1. be responsible for carrying on the work connected with New Zealand Government loans, and would assume the position of registrar of New Zealand Government stock.

ASSETS AND LIABILITIES By Telegraph—Pres. Association WELLINGTON, September 24. The Gazette issued to-night contains the following statement of assets and liabilities of the Reserve Bank of New Zealand as at the close of business on September 21. Liabilities

Total .. .. £23,593,85’’ 15 1 Proportion of reserve to notes and other demand liabilities 89.694 per cent.

Reserve Fund .. .. £ 1.500.000 s. d. 0 0 Bank Notes •• 11,194,486 0 0 Demand Liabilities— State 3.950.196 15 10 Banks 6,653,669 14 9 Other Liabilities 104.517 16 6 Other 190.978 8 0 Total .. . • £23,593,857 15 1 Assets Gold 2.801,733 0 0 Sterling Exchange .. 16.921,502 9 3 Subsidiary Coin .. .. 172,295 7 0 Advancer to State .. 1,654,236 li 7 Investments 2,035,830 0 0 Other Assets .. 68,246 8 3