THE MONEY MARKET.

Auckland Star, Volume LXVIII, Issue 48, 26 February 1937, Page 4

THE MONEY MARKET.

RESERVE BANK RETURNS. RISE IN STATE DEPOSITS. INCREASE IN EXCHANGE. (By Telegraph. — Tress Association.) ELLINGTON", Thursday. .1 lie Reserve Hank return for the week rnded Monday. February "JJ. was gazetted to-night. The statement is balanced at £32.723.(0.). or £3082 less than at the close ot the previous week. I lie note issue shows a further fall of £117.840. Government deposits .ire £441?.(585. and those of the trading banks £'2t>.>.«5!l higher. Other demand liabilities which in the previous return showed an increase of £653.363. are down £,V.14.."i8!).

Prop, of reserve to notes & Other <lU - 1S demand liabilities .'(.l s • •• The discount rate is 2 per cent but the rate is purely nominal, a* the bank has not so far engaged in the business ot (liscounting bills. Capital was add /d to general reserve under provisions of the Reaei\e Bank New Zealand Amendment Act, lJdb. I The bank started business on August 1, 19 The item "advances to State or State undertakings," subdivided into two first appeared on August 1< last. x . first, which covers the daily lndustij, ' increased rapidly until the week ended tW been W fhl y bSanc U e a of°this loan Hem designated as '"for all other purposes was Rational} at £700,000 until Novembei ,JO, after which it was increased, first to i.800,000 i ' and later to £1,800,000 | The holding of sterling exchange at £18 804.000 is over £4.000.0110 less than at this time last year, but a compensating item i* "advances to the dany lndus- • trv" £6.580,000. which in the ordinal > • course will become an addition to the ' exchange funds. This is also a factor in t the apparent decrease in the proportion of '* ' reserves to liabilities.

BANK OF ENGLAND RETURNS. ' NOTE CIRCULATION HIGHER. (Received 11.30 a m.) LONDON, V ebruary 25. The Bank of England returns for the week ended February 24. compared with those of last week and a year ago. are as follow (in million pounds sterling!.— ISSUE DEPARTMENT. Year

On the assets side, the exchange reserve is £313.382 higher in value. Advances in the Dairy industry Account have increased *' £190.861. Otlier assets liave fallen In . £.)lo,l4<t. ' ! The statement with variations compared with the week before is as follows: — I I.IARIUTIKS, 1 Variation ( t i" . 1 Central reserve .. 1 ..VMl.i M m > Same 2 Bank notes 1 :J.7">L'.!>4fl 117.Mo 1 •'I Demand liabilities— ' lai state f,.:;:»i.nu . (b> l»anks 11.741.-f 2iWi.4<Si , !<■» Other 14,r>so | i\ Other liabilities . 144.<»7 + -t-J.si j Total T'J.'i."i»•"> —j ASSKTS. I 7 Iteserve - £ £ . lai Cold 'J.K<n.70<> Same , ili) Sterling ex. . 18.Km.:i!i4 -4-:»13.:!K2 S Subsidiary coin . 1">S.17.'! —> H» Advances— I 1 Dairy iiidtis ( ae •-11 2 other purposes 1.S1«i.ihm> Same 11 Investment 2. 4."i:."■"><• Same i:$ Other assets .... ,1.".7.<>4S - 14<> Total 7- , .;.7«k"» - :i,!»s2 , Proportion of reserve to notes and oth-r demand liabilities, W).518 per cent last week). 1 Throe Years Compared. The following table shows the position of the banks funds at this date for the past three years (in thousands of pounds): MABIMTIliS. ia-!R. i!i::7. £ I i Capital .V*> .""<«> —_ (Jeneral reserve . I,'*** 1.<*m Bank not >27 !»,X.V> l'JJ.vl Demand liabilities— State ]<>.J47 r>.<>7<> •»-•*■ «1 Batiks r.,!K>4 1<>.«iil 11.741 Other -4 2->4 Other liabilities .. *44 12N 144 Total £ 117 ,<>77 jE27,1KJ7 £.!2.724 asskts. Keserve—- £ Hold -j.so-j _.s4i_ Sterling 21.811 SUM Subsidiary coin l*o l.iy Advances to State or State undertakings— ill Dairy indnst. . account ... — — (2) I- or other purposes . . — .»«-•» Investments .... Other assets .... _ '' Total £27,077 £27,927 £.".2,.24

l>b. -_>4. Feb. 17. ii=». a e £ Notes issued - r ,,,,, III circulation ... •*■_>•» 1 «o 7 111 hankins dept.. '•'! -j* ;T-1 Other Govt. securities l M ; fl .'J', Other securities .... -- 4 -- 1 "J Silif r .o- -HO o Go# coin anil bullion 313.7 313.3 -00.0 BANKING DEPARTMENT. Rest »-7 37 37 D 7uSilr 13-0 —4.4 S.R Bankers 1<MM Other accounts . . o#..» •>*» .Government securities $<">,«> isjl *-.i Discounts, advances . 4. ; » 11." [Other securities .... -0..1 l:. (Notes anti coin r> .lieProportion JJti.18 40.1- 4 .So