MONEY MARKET.

Auckland Star, Volume LXVII, Issue 252, 23 October 1936, Page 4

MONEY MARKET.

1.1 RESERVE BANK. ADVANCE FOR PRODUCE. INCREASE OF £555,000. (By Telegraph.—Press Association.) WELLINGTON. Thursday, i" The Reserve Bank return for the wee 3- ended Monday, October 19. was gazette ". to-night. The statement is balanced a 5, £24,881,061, or £469.33.3 more than at th •s close of the previous week. e The deposits of the trading banks hav 2 increased £584.904 in the week coverei i Government deposits have fallen b •- . £243.704. The note issue is higher b d £5522. s Advances to the dairy industry ac-conn s have increased by £555,098 during th e week, bringing the total to £2,417.218 d Sterling exchange is £83,341 lower. Othe ; changes in the assets are nominal. 11 The statement with variations compare t i with the week before is as follows: — LIABILITIES. Variatioi 1. Gen. reserve ... 3,.500,000 Same 0 2. Bank notes .... 11,330,77S +5,52 1 3. Demand liabilities— (a) State 3.839.384 —243,70 ,f (b) Banks .... 7.784.(19(1 +.",84.90 (c) Other 318,020 +114,95 G. Other liabilities 105.759 +7,05 Total 24,851,061 +469,33 ASSETS. 7. Reserve— (a) Colli 2.501.75S Same * (b) Sterling ex. 10,542.855 —53.34 k 8. Subsidiary coin . 105,354 —2,G0: 10. Advances— ; (a) To State or ■ State undertakings 1 (1) Dairy indus- : try account . 2,417,21S +555,09! (2) For other purposes 700,000 Same 3 11. Investment .... 2,180,244 Same 13. Other assets ... 07,002 +24: '• Total 24,551,001 +409,33: Proportion of reserve to notes and othei _! demand liabilities, 83.123 per cent (85.1' ) j last week). Three Years Compared. The following table shows the positior - of the bank's funds at this period for thi . past three years. In the figures quoted the 5 final three noughts are omitted: — ; LIABILITIES. 1 . 1934. 1035. 1930. a: i: £ Capital .-,on 500 — Ceneral reserve ... 1,000 1,000 l nuf Bank notes 5.579 5.95S 11,331 : Domajul liabilities— State 4.403 5.7(53 3 S3i] 1 Bank 14,784 4.752 7,78-1 Other ,-{ 717 :il!r , j Other liabilities . . 30 93 10S J Total 29,598 21.513 24,551 ASSETS. . Reserve—. Cold 3.202 2,802 2 SO" Sterling 24.721 17.25!) 10,54.1 Subsidiary coin . . . 116 215 IGo . Advances to State or State undertakings (1) Dairy industry — — 2,417 (2) For other . purposes ... — — 700 , Investments 1,510 1,515 2,150 Other assets 44 22 07 Total 29,598 21,813 24,551 Prop, of reserve to notes anil other demand liabilities 99,4S 99.21 53.123 The discount rate is 2 per cent, but the rate is purely nominal, as the bank has not so far engaged in the business of discounting bills. Capital was added to general reserve : under provisions of the Reserve Bank of I New Zealand Amendment Act, 1936. Ihe bank started business on August 1, 1934. The item "advances to State or State undertakings," which first appeared on August 17 last, has shown a marked increase in recent returns. It lias been subdivided into two classes, the lirst including the dairy industry only and the second all other purposes.