RESERVE BANK RETURN

Evening Post, Volume CXXX, Issue 83, 4 October 1940, Page 10

RESERVE BANK RETURN

ADVANCES TO STATE

£1,000,000 IN A WEEK

STERLING EXCHANGE LOWER

Movements in the weekly statement of assets and liabilities of the Reserve Bank of New Zealand as at the close of. business on Monday, September 30, 1940, are shown hereunder: —

The most prominent feature in the return of the Reserve Bank for this week is the increase of £1,000,000 in. advances made to the State for purposes other than marketing. The highest pbint previously reached by these advances was on September 16 last, at £24,040,000, and that figure stood a record until this week when it was shown at £25,040,000. At this time last year such advances appeared in the return at £16,800,000; and at September 26, 1938, they amounted to £4,500,000, so that in two years these loans to the State for purposes other than marketing have increased by over £20,500,000. The bank-notes, too, for this week set up a new record at £20,108,913, and compare with £16,891,027 at this time last year, and £13,735,619 at September 26. 1938. - Sterling exchange holdings have receded this week by £113.960 to £9.987.894. They were down to £5^338,703 at this time last year; but for all the subsequent restrictions on imports and use of overseas funds imposed in December, 1938, the sterling exchange at September 26, 1938, at £11,449,447 was £1.461,553 more than it is today. The statement of the assets and i liabilities is all in New Zealand currency, including sterling exchange, and is as follows: — LIABILITIES. £NZ s. d. £NZ General Reserve . 1,500.000 0 0 Unchanged Bank-notes 20,105,913 0 0 *9,660 Demand Liabilities — State 5,574,379 11 6 *535,519 Banks 15,450.164 12 2 , *37,50S .Other 264,473 4 4 *86.519 Currencies other than N.Z. .... 22,497 0 3 *?'°s2 Other liabilities . 816,498 8 11 H61,200 £XZ43,736,925 17 2 *517,948 ASSETS. £NZ s. d. £NZ Reserve — Gold 2,801,852 0 0 Unchanged Sterl. exchange 9,987,894 9 5 +113,960 Subsidiary coin 116,948 1 9 t1,639 Advances to State — Marketing ... 2,975,021 8 6 t59,060 Other purposes 25,040,000 0 0•' •1.000.000 Investments .. 2,553,219 12 11 Unchanged Other assets ... 261,990 4 7 t307.392 £NZ43,736,925 17 2 *517,948 tDecrease. "Increase. Proportion of reserve (reserve less liability in currencies other than New . Zealand currency) to notes and other demand liabilities, 30.84 per cent, compared with 31.651 per cent, for,the week ended September 23, 1940. The proportion of reserve as at the aeginning of each month for this /ear has been as follows: — 1940 Per cent. Sa-fl::;::;::::::;::::::: If July 1 38.6(5 September 2 33.713 September-23 .......•>......• 31.6gl September. 30. 30.84 The statutory limit is 25 per cent. STEELING EXCHANGE FALLING. Sterling exchange (N.Z. currency) aeld as assets by the Reserve Bank of New Zealand as at the first week of the months has shown the following variations:— • ' 1940 £NZ JanuaVl ............... 7-036.750 February 5 ,».g^2J March 4 10,020,8(1 April 1 12,707.890 Mas-6 .... 13,658,465 • June 3 .... •• 14,673,730 July 1 ................... 13,420,644 August 5 13,092,952 September 2 H. 183.295 September 16 lj».?«.O8? September 23 lO'J2l'!^ September 30 9,987,894 RISING BANK-NOTE ISSUE. Bank-note returns for the first Monday in the month to September 30, 1940, compare as follows:— 1939. 1940. £ £ January 16,494,890 19,184,088 March ...... 14 810,081 17,954,492 August .... 15,587,527 19,718.751 September 30 .. 16,891,027 20,108,913 - Previous highest, £20,099,247, was on September 23, 1940. : ADVANCES TO STATE. Advances to the State for purposes other than for the Primary Products Marketing Department on June 6, .1938, were £300,000; January, 2, 1939, they were £11,000,000. 1940 £' January 1 20,230,000 April 1 19,310,000 July 1 .....!!.'. 21,210,000 August 5 ' ai'sM2 September 2 23,540,000 September 16 ....*-. 24,040,000 September. 30 (record) ..25,040,000 COMPARATIVE RETURNS. Principal items in the weekly return at this time last year, compared with those for this week, are as follows:— Oct. 2. Sept. 30. 1939. 1940. £ £ Bank-notes- 16,891,027 20,108,913 Demand Liabilities — State 1,801,710 5,574,380 Banks 12,965,055 15,450,165 Other liabilities ... 236,957 264,473 Other currencies ... 16,123 22,497 Other liabilities ... 552,110 816,498 Gold 2,801,839 2,801,852 Sterling exchange .. 5,338,703 9,987,894 Advances marketing . 4,865,263 2,975,021 Advances State .... 16,800,000 25,040,000 Investments 3,813,245 2,553,220 Katio per cent 25.473 30.84 LOCAL EXCHANGE RATES. The Bank of New South Wales quotes telegraphic rates of exchange on overseas centres as follows: — On Buying. Selling. New York—Dols. to £NZ 3.2542 3.2050 Montreal—Dols. to £NZ 3.6039 3.5290 Greece —D'chmae to £NZ — 412.70 java—Florins to £NZ . 6.187 6.004 Hong Kong—NZ d. to dol. 18% 19 1-32 India, Ceylon—NZ d. to rupee 22 5-32 22 49-64 Manila —£NZ to peso . 6.559 6.442 Shanghai—NZ d. to dol. — 5 7-64 Singapore—NZ d. to dol. 34 41-64 37 41-64