Reserve Bank Returns
Sir,—l give some figures from last week's Reserve Bank return, with figures for the corresponding dates in 1935 ami 1936.
That in 1935 and 193 G the bank was a Reserve Bank in fact as well as in name is shown by the proportion of reserve to demand liabilities — 97.19 and 96.523 per cent respectively. Last week the ratio was only 28.132 per cent.
That our currency is being inflated is shown by the note issue—in 1935, £0,848,000, in 1930, £10,177,000; in 1939, £15,693,000. That the Government has become hard up is shown by the State's de-
peril •• with the bank —in 1935. £11,237.000; in 1900, £9.128,000; in 1939. £2,803,000. That the State lias borrowed heavily apart from its borrowings fof the purchase of primary produce, is shown by the advances to the State for “other purposes”—in 1935. nil; in 1930, nil; in 1939, £13,250,000. That the State has not only borrowed this large sum, but also spent it, is shown by its comparatively small deposits with the bank. CITIZEN.
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Bibliographic details
Gisborne Herald, Volume LXVI, Issue 20012, 10 August 1939, Page 16
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173Reserve Bank Returns Gisborne Herald, Volume LXVI, Issue 20012, 10 August 1939, Page 16
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