MONEY MARKET.

Auckland Star, Volume LXVI, Issue 51, 1 March 1935, Page 4

MONEY MARKET.

RESERVE BANK RETURN. INCREASED STATE DEPOSITS. OTHER DEPOSITS LOWER. (By Telegraph.—Press Association.) WELLINGTON, Thursday. The Reserve Bank return for the week ended February 25 was gazetted to-night. The statement is balanced at £27,076,538, or £5606 more than last week.

The outstanding features, which are in the liabilities, arc a rise of £543,374 in the value of State deposits, and a fall of £482,983 in the deposits of the trading banks. When the first return was issued, in August, Government deposits were £2,499,000 and those of the trading banks £14,536,522.

The latter had increased to £17,964,709 by October 1, at which date all the gold reserves of the other banks had been acquired by the Reserve Bank. Since that date 'bankers' deposits have fallen almost without interruption to the present figure, £5,953,894.

The State deposits have been increasing rapidlv since the beginning of the present year. On the assets side a decrease of £19,569 in sterlng exchange is more than balanced by a rise of £19,799 in the investment item. The statement with variations compared with the week before is as fpllows:— LIABILITIES. Variation 1. Capital £500.000 Same 2. General reserve 1,000,000 Same 3. Bank notes 9,32G,97S 52.455* 4. Demand liabilitiesfa) State 10.24G.009 543.3741 (b) Banks 5,953.894 482,983» (c) Other 1.327 11* 7. Other liabilities 44.G50 2,280* Total £27,07G,53S £5,600t ASSETS. 5. Reserve— (a) Gold £3,nm,731 Same (b) Ster. exchg. 21,810,624 19,569* 9. Subsidiary coin 154.G17 7SO* 12. Investment ■ 2,043.700 10,799;14. Other assets .. 35,707 G,O3Gf Total £27,07G.53S £5,G00f fHigher. *Lo\ver. Proportion of reserve to notes and other demand liabilities, 97.18 per cent (07.28 last week).