RESERVE BANK

Wanganui Chronicle, Volume 83, Issue 255, 28 October 1939, Page 3

RESERVE BANK

* INCREASE IN STERLING FUNDS DAIRY ADVANCES HIGHER FURTHER AIHAM E IN NOTE ISSUE Reserve Bank advances on dairy 1 produce on Monday totalled £5,784,238 I showing a further large increase of £516,502. Advances to the State for i "other purposes’’ were £17.325,000, a decrease of £lOO.OOO. The note issue ‘ totalled £17,33’4.539, an increase ol I £130.714. e 1 Sterling exchange funds at £5,605,045 P ! increased by £59,833. The bank’s net 5 ’overseas assets amounted to £5,594,043,; ; an increase of £60,706. The bank's statement of assets and I liabilities as at the close of business on Monday, October 23, is as follows: | Liabilities £ s ci I 1. General Res. Fund 1,500,000 0 0 I 12. Bank notes 17,334,539 0 0, 13. Demand liabilities—la) State 1,946,888 9 IU, Banks 13.783,428 15 9| •c’ Other 302,322 19 3; . l ime deposits . . 5. Liabilities in edr- ■ ncies other than .N.Z. currency 11,001 18 21 6. Oih'T liabilities 588,534 18 11 | £ N-Z.) 35.466,716 1 11 7. Reserve £ s d la) Gold 2,801.839 0 0 <b> sterling exchange 5,605,045 8 9 * <c‘ Gold exchange *B. Subsidiary com 224,428 4 11 . f. Discounts - i <a> Commercial and agricultural n I bills • <b» Treasury and v I local body bills ,r • 10. Advances — >r la) To the Slate * ■ or State undertakings. * ; » (1) Primary • Products Marketing De■R partment 5,784,297 16 2; n ; ( j) Foi other purposes 17.325,000 U 0 ,r (b) fo other public authorities • : <c» Other ,11. Investments 3,606,122 11 2! 13. Other assets 119,983 0 11 > £'N.Z.)35,466,716 1 11 * - H Proportion ol reserve (No. 7 less No., |5) to notes and other demand liabili-| I ties, 25.162 per cent., compared with i i; ; 25.279 per cent, on October 16 and. j 48.451 per cent, on October 24, 1938. , The reserve on Monday amounted to | £8,395,882, compared with £8,335,176 ion October 16, an increase of £60,706. ■ On October 24. 1938, the reserve i 1; 1 totalled £11,098,327 ii I Sterling exchange on Monday totalldl ed £5,605, compared with £,>,545,212 | |on October 16, an increase of £59,833. i i Liabilities in currencies other than New Zealand currency on Monday 1 | amounted to £11,002 (a decrease oi, U1873>, thus making the bank’s net | ’overseas assets £5,594,043, compared] < i- 16. an in- i crease of £60,706. A year ago th? bank's net overseas assets totalled' ! £8.296.536. d I The bank’s gold holding remains u unchanged at £2.801,839. Subsidiary] 1. coin amounts to £224,128, a decrease I - of £2652. Advances to the Primary Products i. ; Mar keting Department show a further d j large inci ease of £516,502 and now j amount to £5,784.298. A year ago these advances totalled £3.859,205. Advances to the State for "other r , i purposes ” show a decrease of £lOO,OOO, ■ JI the total this week being £17,325,000,’ ■ ■r lagI ago ’ . „ i Investments at £3,606.123 show a reU duction of £119.829. Ocher assets total ' 1 £119.983, an increase of £62,155. 11 ■■ Tl.e note issue continues to expand. Ti ha.- been a further increase of £130,714, making the latest total £17,.esents an advance of d f.2.95'.646 on the note issue of £14,349,--1893 of October 24, 1938. 1- Demand liabilities to the State at dj £1.946.888 show a decrease of £49,953. it i The trading banks’ reserve balances n jshow a further increase of £272,243. ; i'the total now being £13,783,429. Other i ■ ■ ■ • ■ >2.323, ’ an increase of £11,737. Other liabilities at £588.535 show an ‘increase of £22,141. ' The statement balances at 135,466.(716. an increase of £416.009. .Movements in Sterling Exchange ling exeid b> t’m Reserve Bank of | New Zealand during the last lew months and in the ratio percentage of reserve to notes and other demand 'liabilities, are shown in the following ; table:— Sterling Rcseive exchange. ratio j pc;. (£N.Z.» percent. December 27 16.992,748 70.323 I 1938 - ! Xu list 1 .>.695,000 61 .2 6 11.449,447 60.785 7,707,69 i 46.03 December 26 4,678,233 19.39 iar , 2 1.017.232 26.13 .Kebrnan 6 1.074.954 25.01? 5-U; ch 6 4.705.897 25.01 i April 3 . 4.633,300 25.924 Alav | 4.817.992 25.81 a ■.1,;,;,. 5,882,308 29.65 a j uiv 3 5,690.003 Si-MJ August 7 5.150,954 September 4 5,271,810 26-laS October 2 5,338,703 2o 1 October 23 . - 5.605,045 25.162 The statutory minimum of the reserve ratio is 25 per cent.