THE MONEY MARKET.

Auckland Star, Volume LIX, Issue 254, 26 October 1928, Page 4

THE MONEY MARKET.

BANK OF ENGLAND RETURNS. '

BANK KATE CONDITIONS

(Australian Press Assn.—United Service.) LONDON, Octobcr 25. ; The Bank of England returns for the •week ended October 25, as compared with those for the weyfc ended October 18, are as follow:— Oct. 25. Oct. 18. , . < , £ f £ Note circulation .. 138,179,000 183,501,000 Coin 160,787,000 107,147,000 Notes in reserve .. 51,570,000 5i,:t58,«)0 Govt. depoVit* .v.. 1»,128,C00 11,217,000 Otlier deposits .... 102,170,000 100,012.000 Govt. securities .. 37,300,01)0 ■ 8 i,CIS,OOO Other Kccuritics ... 3D,391,000 41,489,000 Proportion of reserve' to liabilities 47.40 48,00 Discussing the general financial position as at September 1, Barclay's "Bank Monthly Review" said:- —"It is true that, the Bank of England is now in an exceptionaly strong position and that the British overseas trading returns, especially a ? regards' the amount of the adverse, yimblc balance, . .are ; appreciably more tavouable than a year ago, but th-e contin nance of high monetary rates in New iovK, the -weaker tendency of sterling in tenns of certain of the gold exchanges and the approach (( of the autumn season, when provision has be made for 1 the usual iieavy imports of foodstuffs and raw materials, "are .factors' which appear to make any substantial -easing in interest i? iV l " ) e .'-'WfiAiatc.; future -very improbable. recent, years, fluctuations in the official bank rate in this country have been much less frequent than before the war, and the present figure of/4% per 21 1927 lell,alned changed since April "The greater stability of interest quotations tends, in many ways, to: make London still more attractive a* an international monetary centre . and, ia the coming months, the authorities will dbirbtless endeavour, as far as possible to prevent any upward movement in the official minimum, although the. position must obviously be affected to7some extent by : developments over which -they have no control." . • ; , . - , i, Since tlie,-above was, written; there,has been a substantial drain on. the bank's metal holding, which has fallen from ;t> 175,867,000 on - August ' 30, to ;£1ft1, , 737,000. They* .Bare -actually been reduced £10,000,000 in seven weeks since September 0. Howevwi £ven the present lower figure, is well above normal and the.proportion of reserve to liabilities is still unusually' high. Call money and tfcree months' bills hire remained stable- for' a considerable' period ;soi that"' ik nothing at present to indicate pity to raise the bank rate.

Note circulation .. Colli Notes in reserve .; Govt, depo'sit* ;'V.: Other deposits .... Oovt. pocurities .. Other tccuritifs ... - l'roportioii of reserve' to liabilities