LONDON MONEY MARKET.

Auckland Star, Volume LXIV, Issue 70, 24 March 1933, Page 4

LONDON MONEY MARKET.

BANK OF ENGLAND RETURNS. GOLD STILL POURING IN. SOUND RESERVE POSITION. THREE MONTHS' BILLS 1 PER CENT. (Received 10 a.m.) LONDON, March 23. The Bank of England returns for the week ended March 2.'i, as compared with those for the week ended March 16. arc as follow :— Mar. 23. Mar. IC. £ £ Note circulation 804,3:10,000 363.816.000 Coin 171.0Ki.0M0 170.790.000 Notes in reserve 80,301.000 77.."i50.000 Cnvt. deposits 2!>.02(i/l(IO 21.2H7.000 Other deposits .... 110.Hi2.000 ]-I0,or!2.000 (iovt. securities 53,718.000 71.010.000 Other securities ... 1'9,6ti3,<)00 29,311,000 Proportion of reserve to liabilities 51.00 45.80 SHORT LOANS AND BILLS. Short loans, 3 per cent, are the same as last week, nnd throe months' bills, ± per cent, compare with i per cent last week. The Bank of England rate of discount is 2 per cent, to which it was reduced on June 30 from 2J per cent. Latest returns indicate substantial expansion in the bank's activities. Coin lias increased over £'8,000,000 in the week, nnd is now £50,000,000 higher than it was at the beginning of the year.. Note circulation has increased in the Inst few weeks, suggesting greater activity in trade, while the proportion of reserves to liabilities is particularly high. Money is still cheap and plentiful, and the rate for three months" bills, namely i per cent, is lower than has been the enso for a considerable period.