N.Z. RESERVE BANK

Waikato Times, Volume 124, Issue 20727, 10 February 1939, Page 7

N.Z. RESERVE BANK

EXCHANGE RESERVE REDUCED NOTE ISSUE LOWER (By Telegraph—Press Association) WELLINGTON, Thursday The Reserve Bank return for the week ended Monday, February 6, was gazetted to-night. The statement is balanced at £29,255,719, or £637,459 more than at the close of the previous week. The sterling exchange reserve stands at £4,074,954, or £58,632 less than the week before. This movement, coupled with an increase of £887,460 in deposits—State £614,432 and banks £273,028—has reduced the ratio of reserve to demand liabilities to 25.074 per cent, or less than 1 per cent more than the statutory minimum. The note issue, however, is £158,G03 lower, this being a minor set-off to the rise in deposits. The bills—Treasury or local body—which have stood at £500,000 since December 19, were disposed of during the week, and this item disappears from the return. Advances, however, are substantially higher, those to the Primary Produce Marketing Department having increased by £316,262, and other advances being £850,000 greater in value. The statement with variations compared with the week before Is as follows: Liabilities Variation £ £

Proportion of reserve to notes and other demand liabilities, 25.074 per cent (25.75 last week). The principal Items in this week’s return are compared with those at the corresponding date last year in the following table: —

Gen. reserve ..... 1.500,000 Same Bank notes 15,206,255 —159,603 Demand liabilities— State 3.237.983 +614,432 Banks 8,860.328 +273,028 other 106,884 -155,277 other currencies .. 1 0,970 -13,278 Other liabilities .. 333,299 +78,157 Total 29,255,719 +637,459 Assets Reserve— Gold 2,801,791 Same Sterling Ex 4.074.954 -58.632 Subsidiary coin ... 204,658 +8,875 Rills — -500,000 Advances — Marketing: 6.474.431 +316,262 Other 1 1,950,000 +850,000 Investment 3,646,385 +12,569 Other assets 103,500 +8,385 Total 29,255,719 +637,459

(OOO’s nmlttod) 19:59 1938 Variation £ £ £ Notes 15,200 1-1,008 1 1,1 38 Deposits— <tate 3.238 3.800 - 052 15 .inks 8.8 0 0 9,180 0 2C Exrhansre .... -4.<'7 5 15,7 0 1 -11,020 Advances —■ Produce ... 0.47 1 0.100 +14 Other 11.950 1.100 + 10.85m Ratio ip.c.) . 07 1 •'T..|41,!)C5