MONEY MARKET.

Auckland Star, Volume LXVII, Issue 186, 7 August 1936, Page 4

MONEY MARKET.

RESERVE BANK RETURN

NOTE ISSUE UP £602,000.

LONDON I'UXDSVLOWER. (By Telegraph.—Press Association.) Wellington; Thursday. The Reserve Bank return for the week ■ ended Monday, August .3, was gazetted to-night. T-he statement is balanced at £24,780,585, or £2,643,187 less than'"-at tjie close of the previous week..... . ' Several changes of magnitude', fh'ave occurred among the liabilities, j The' note issue is £602,074 higher than ;it Jw£s a week before. The rise-can be ara'ibuted to the addition to the Reserve Bank issue of the_ outstanding trading bank notes, for which responsibility was assumed on August 1. A decrease of £329,704 in the deposits of the trading banks reflects in part the payments they were required to make against the note issue for which they are no longer responsible. Government deposits are lower by £2,857,702. This movement is - largely counterbalanced by a corresponding change on the assets side, a decrease of £2,646,192 irt the value of the sterling exchange reserve. The loan conversion operation effected in London in May -required the repayment in cash of some £1,870,000 on August 1. The transaction, on the'Tevidence of the return,- lias now been completed. Other movements shown in the statement are of a minor character. The statement, with variations compared with the week before, is as follows:— LIABILITIES.

Variation. £ £ ; 1. Gen. reserve . 1,500,000 Same • 2. Bank notes . . 10,770,777 +002,074 3. Demand liabilities— i (a) State .. . 6,271,271 —2,857,702 (b) Banks ... 0,042,937 —329,704 (e) Other ... 97,840 —51,976 t 0. Other liabilities 88,754 —5,870 Total 24,780,585 • —2,643,15" i ASSETS.',.,'';. ' 7. Reserve — (a) Gold 2,801,733 Same (1)) Sterling ex. 19.453.187 —2,640,192 8. Subsidiary coin*'' 191,375 +1,187 11. Investment .. 2,041,382 +0,062 13. Other assets 2,02,908 —4,244 Total ... 241*780,585 —2,043,187 Proportion of reserve to.notes and other demand liabilities, 06,089 per cent (90.484 last week). • BANK OF ENGLAND RETURNS. NOTE CIRCULATION HIGHER. PUBLIC" DEPOSITS LOWER. (Received 10 a.m.) LONDON, August 6. The Bank of England returns for the week ended August 5, compared with those of last week and a year, ago, are as follow (in million pounds sterling): — , ISSUE DEPARTMENT. Year Aug. 5. July 29. ago. Notes issued— £ £ £ In circulation .... 454.4 448.C 411.8 In bunking dept. . 45.0 51.4 40.9 Other Govt, securities 246.1 247.1 246.9 Other securities .... 2.3 1.3 0.5 Silver coin 0.6 0.0 I.C BANKING DEPARTMENT. Rest ............ 3.0 3.6 3.6 Deposits— Public 17.0 42.3 17.2 Bankers 92.7 75.2 82.6 Other accounts .. . 38.5 39.4 37.8 Govt, securities .... 59.9 '90.4 87.2 Discounts, advances . 8.1) 7.1 14.0 Other securities .... 18.5 10.1 13.1 Notes and cola .... 49.6 52.4 41.4 Proportion reserve to liabilities .... 33.33 33.3S 30.10 NEW CIRCULATION RECORD. -i;HEAVY R EIG N i4)EMAND. British Ofliclal Wireless, f (Received 12 noon.) - ,< RUGBY, August 6. The note , airculation of £454,400,397 shown in this week's Bank of England return is a new high' record. Circulation at the same time last year at the height of the holiday season was £411,835,941, and after the autumn decline rose at Christmas to £434,506,785. i

The recent increases in circulation have been in part due to foreign demand on account of hoarding fend have been associated fjvith the rise in the last three (months<ot about £41,000,000 in the bank's gold. f. • \ CONSOLS AND STOCKS. VALUES VERY STEADY. (Received 11 a.m.) t LONDON", August,.-6. The following table gives quotations for Consols and colonial inscribed stocks, compared with those ol' July 30:— Varia-

Price. tlon. fs.de. d. Consols, 2J per cent .. 85 0 0 Same Funding Loan, 4, 1060-00 117 10 0 Samo War Loan, 3}, 1020-47 . 10G 15 0" Slime Conversion Loan, 3i .. 108 0' 0 Same Victory Bonds, 4 110 10 0 . Same Com'wealth, 5, 1045-75 110 6 3 Same Com'wealth, 3*. 1030-37 101 17 G 2 0* Com'wealth, 4, 1943-48 . 105 7 (3 3 S)f Com'wealth, 53, 1048-53 104 0 0 2 6f Com'wealth. 3i, 1056-01 09 17 0 2 Of Com'wealth, 3, 1955-58 94 10 0 7 0t N.S.VY.,. Si, 1930-50 ... 100 18 9 1 3* N.S.W., 45. 1935-45 ... 100 12 6 10 0t Victoria, 3, 1929-49 ... 08 7 0 Salhe Victoria, 43, 1910-60 100 13 9 11 3f Victoria. 5. 1043-75 .... 110 6 3 8 Of Queensland, 3, 1922-47 . OS 10 0 1 ,.3* Queensland, 5< 1940-60 . 108 7 6 1 3f S. Aus., 3, 1916, opt. i. 87 17 6 7 Of S. Australia, 5, 1945-75. 110 5 0 11 3t W. Australia, 4, 1942-62 102 5 0 5 0* Tasmania, 35, 1920-40 .. 102 10 0 7 6* Tasmania, 4, .1940-50 .. 102 2 0 5 0* New Zealand, 4J, 1948-58 .107 1 3 33 9* New Zealand, 3J, 1040 . 102 10 0 3 0* New Zealand, 3, 1945 . 100 13 9 Same tHigher. 'Lower.