RESERVE BANK RETURN

Evening Post, Volume CXXVI, Issue 85, 7 October 1938, Page 12

RESERVE BANK RETURN

STERLING EXCHANGE SHRINKING

STATE BORROWING

INCREASED

Movements in the weekly statement of assets and liabilities of the Reserve Bank of New Zealand, as at the close of business on Monday, October 3, 1938 compared with returns for September show sterling exchange in New Zealand currency is now £10,594,978 compared with £11,449,447 for last week and £17,462,300 a year ago. The statement ef the assets and liabilities, all in New Zealand currency, including sterling exchange, is as follows:— LIABILITIES.

ADVANCES TO STATE RISING. Advances to the State for purposes other than for the Primary Products Marketing Department were first shown in the return on September 20, 1937, and were then. £500,000. They increased to £700,000 as at November 1, to £900,000 as at December 13, to £1,100,000 at January 31, 1938, to £1,300,000 at February 28; disappeared by March 14. But at September 19 they had risen to £3,800,000, and by September 26 they had reached £4,500,000. An addition of £75,000 brings the total to date up to £4,575,000.

Proportion of reserve (reserve less liability in currencies other than NewZealand currency), to notes and other demand liabilities, 57.259 per cent., compared with 60.785 per cent, for the week ended September, 26, 1938. LONDON FUNDS DECLINING. Sterling exchange held as assets by' the Reserve Bank of New Zealand for the past twelve months as at the first week of the month showed the following variations:— 1937 "' £ Augusts 20,876,822 September 6 '. 18,794,615 ,\ September 13 ............ 18,836,037 October 4 17,462,300 November 1 ..-.„...„ 17,148,967 December 6 16,184,928 1938 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 September 19 .....? 12,247,006 September 26 11,449,447 October 3 ..". '..... 10,594,978 The proportion of reserve (less reserve liabilities in currencies other than New Zealand currency) as at the beginning 6f each month for the past year has been as follows:— * 1937. Percent. 2 .............i.... 79.676 September 6 ........... 78.388 October 4 ....-78.339. November 1 76.083 December.6 73.89 1938. January 3 70.088 February 1 67.039 March 7 66.019 April 4 75.542 May 2 ...... ..;.... 79.569 "June G \ 77.906 July-4 .■■•..• 76.181 August 1 ................. 69.249 September 5 ..65.847 September 12 66.428 September 19 63.853 September 26 60.785 October 3 57.259 LAST YEAR'S RETUR/tt. The return as at October 4, 1937, showed the following:— General reserve 1 '50?'5!!2 Bank-notes ......7 '~...... 12,954,005 Demand LiabilitiesBanks , 7,351,779 Other,- ..•• 345,190 Other liabilities ...■.^... 138,968 Beserve — Gold 2,801,791 Sterling exchange >. 17,462,300 Subsidiary coin 93,518 Advances to State — ' For dairy purposes ............ 3,649,626 ' For other purposes 500,000 : Investments. 2,906,450 Other assets 92,365 Reserve to notes and other demand liabilities 78.339

n ■ , £ (N.Z.) s. General Reserve Fund 1,500,000 0 Bank-notes .. 13,798,628 10 Demand liabilities— (a) State .. 3,367,177 12 (b) Banks .. 5,904,387. 11 (c) Other ... 298,103 6 Liabilities in, currencies other than N.Z. currency 16,090 19 Other liabilities . 149,671 6 d. 0 0 1 1 7 3 8 £ (N.Z.) Unchanged . *64,009 t546,415 *518,243 t83,396 tl,807 *10,937 £ (N.Z.) 25,034,059 5 8 t38,428 ASSETS. £ (N.Z.) s. d. Reserve— (a) Gold 2,801,791 0 0 (b) Sterling exchange ; .. . 10,594,978 9 4 Subsidiary coin . 220,112 8 5 Advances to State for Primary Products Marketing Dept. . 3,981,076 17 S" For other purposes 4,575,000 - 0 0 Investments .... 2,732,064 16 6 Other assets •".. 123,035 13 10 £ (N.Z.) Unchanged f854,469 *169 •822,469 *75,000 Unchanged t81,597 £ (N.Z.) 25,034,059 5 8 An««- n ~ *t £ (N.Z.) 25,034,059 tDecrease. *Ii 5 'ncr£ 8 ease t38,428