RESERVE BANK.

Manawatu Standard, Volume LX, Issue 245, 13 September 1940, Page 10

RESERVE BANK.

STATE ADVANCES UNCHANGED,

STERLING FUNDS DOWN.

A further large decrease of £1,427,013 last week brought the sterling exchango funds of the Reserve Bank of New Zealand down to £9,756,282, the lowest level touched since last F’cbruary. Advances to the State lor purposes other than marketing show no change from the record level of £23,540,000. ’file note issue’ shows another small decrease, bringing it slightly below the £20.000,000 level. The statement of assets and liabilities of the Reserve Bank as at the close of business on Monday, September 9, is as follows:

Proportion of reserve (No. 7 less No. 5) to notes and other demand liabilities, 31.486 per cent., compared with 33.713 per cent, on September 2. The reserve on Monday totalled £12,546,134, compared with £13,972.843 on September 2. a decrease of £1,426,709. A year ago the reserve was £8,467,705, and on September 12, 1938, when the rapid drain on sterling funds was evident, it amounted to £15,473,703. „ , Sterling exchange on Monday totalled £9,756,282, compared with £11,183.295 on September 2. a decrease of £1,427.013. Liabilities in currencies other than New Zealand currency on Monday were £12,000 (a decrease of £304), thus making the bank’s net overseas assets £9,744,282, compared with £11,170,991 on September 2, a decrease of £1,426,709. A year ago the bank’s net overseas assets were £5,665,866. and on September 12, 1938, they were £12,671.912. The sterling exchange funds of the bank arc now at. the lowest level recorded since last February. Advances to the State Marketing Department total £3,219,512, a decrease of £46,770. A year ago these advances amounted to £5,106,655. Advances to the Slate for other purposes are unchanged at £23,540,000. A further decrease of £6432 brings the note issue below the £20.000,000 level, the latest figure being £19,998,630. A year ago the note issue amounted to £16.105,225. Demand liabilities to the State total £4,784,578, a decrease of £12,619. The trading banks’ reserve balances show a major decline of £1,652.101, which reduces them to £14,775,448. Other demand liabilities total £288.448, an increase of £71,518. Other liabilities total £853,713, an increase of £73,631.

LIABILITIES. £ s d 1. General reserve fund .. 1.500.000 0 0 2. Bank notes 19,998,630 10 0 3. Demand liabilities — (a) State 4,784,577 13 2 (h) Banks 14,775,448 1 8 (e) Other 288,448 9 11 4. Time ileposita — 5. Liabilities in currencies oilier than N.Z. curvcncy 12,000 0 11 6. Other liabilities 855,715 1 9 £N.Z.42,212,817 17 5 ASSETS. 7. Reserve. — £ s d (a) Cold ... 2,801,852 0 0 (b) Sterling exchange *y,V5t>.2bZ 1U 6 (e) Gold exchange — 8. Subsidiary coin 114,348 0 0 9. Discounts — (a) Commercial and agricultural bills ... — (b) Treasury and local body bilL — 10. Advances— • (a) To the State or State undertakings: (1) Marketing Dept. 3,219,511 14 2 (2) For other purposes 23,540,000 0 0 (b) To other public ■ authorities — (c) Other — 11. Investments 2,533,219 12 11 12. Bank buildings , — 13. Other assets 247-,603 19 10 EN.Z.42,212,817 17 5 in N.Z. currency.