MONEY MARKET.
RESERVE BANK RETURNS.
A DECREASE IN DEPOSITS
STERLING EXCHANGE REDUCED
(By Telegraph.— I 'ress Association.)
WELLINGTON, Thursday
1 lie Reserve Bank return for the week ended Monday. Mai ch 1. was gazetted to-night. '1 he statement is balanced at £31.496,458, or £1.227.247 less than at the close of the previous week. A decrease of £ 1,0*10.014 in the level of deposits to the credit of the trading banks is the chief movement, among • f There is an increase of ±.440,003 in Government deposits. The note issue has fallen by t'33.133. Other demand liabilities are lower by £20.132. A lull of £1,340,217 in the value of the sterling exchange reserve suggests that purchases ot exchange from the Reserve Bank may have contributed to the tail in the trading banks' deposits. Advances to the Dairy Industry Account, at £o.i 14.412, are £143.102 higher. Other assets have fallen by £24.583. Ihe statement, with variations compared with the week before, is as follows: LIABILITIES. Variation. 1. Gen. reserve .. l,r»00,000 Sam* -• Hanknotps .. . ;;;; iVi 3. Demand liabilities : (a) State .... 0,7!)1..-,o:{ -4-44n,0«>;i <b) Banks .... 10.13.">,23J -—1,000,014 te) Other .... 207.N2.1 —20,152 6. Other liabilities 1412,003 —2,011 Total 31,400,408—1,227,277 ASSBTS. _ r. £ £ 7. Resetve : (a) Gold ... 2.801,790 Same (b) Sterling ex. 17,4.">5,177 —1,340,217 8. Subsidiary coin 100.004 —1,60'J It). Advances: 1. Dairy Industry Account ... 0.714,412 +145,102 2. For other purposes . 1,800,000 Same 11. Investment ... 2,403,000 Same 13. Other assets .. 112,400 24,583 Total '31,4'J0,45,5—1,227,247 Proportion of reserve to notes and other demand liabilities, 07.802 per cent last week). Three Years Compared. Hie following table shows the. position of the bank's funds at this date for the past three years (in thousands of pounds;: — LIABILITIES. 1030. 1030. 1037. £ £ £ Capital 500 000 — General reserve 1,000 1,000 1,500 Bank notes 0,181 0,804 12,720 Demand liabilities : state 11.111 7,110 0,792 Bank 5,200 10,184 10,130 Other 4 70 207 Other liabilities .... 40 127 142 Total 22,090 28,843 31,400 ASSETS. Reserve : Gold .j.002 2,80g 2,802 Sterling 21,810 23,070 17,408 Subsidiary coin . 184 108 107 Advances to State or State undertakings : (1) Dairy Industry Account — — 0,714 (2) Eor other purposes — —- 1,800 Investments 2,047 1,782 2,453 Other assets v. 50 SO llj Total 27,090 28,840 31,490 I'roportlou o£ reserve to notes and other demand liabilities . 07.10 05.302 07.80 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 New Zealand Amendment Act, 1930. The bank started business on August 1, 1934. The item "advances to State or State undertakings,"' subdivide into first appeared on ABtfust 17 Tast. The first, which covers the dairy industry, increased rapidly until the week ended November 9. when a slight fall was recorded. Since then there have been weekly fluctuations. The balance of the loan item designated as "for all other purposes" was stationary at £700,000 until November 30, after which it was increased, first to £800,000 and later to £1.800,000. The holding of steiling exchange at £ 17.458,177 is over £(i.;" 20,000 less than at this time last year, but a compensating item it, "advances to tlie dairy industry'' £0,714.412. which iu the ordinary course will become an addition to the exchange funds. This is also a factor in the apparent decrease in the proportion of reserves to liabilities. BANK OF ENGLAND RETURNS. CIRCULATION" AGAIN HIGHER. (Received 11.30 a.m.) LON DON. March 4. The Bank of England returns for the week ended February 4. compared with those of last week and a year ago. are as follow (.in million pounds sterling): — ISSUE DEPARTMENT. Yea r Mar 1. Fell 24. ago.
Xofos issued— In cirruliition .... 4«il.O 4."i.">.1 S'.i'.t.'.l .In hankin? dept. . ."iL',7 (id.7 other securities 1SH.7 1st; ii H4.YK Other securities .... U.3 :>.4 LM Silver coin .... — i i sjold coin and bullion 8111.7 Ml ,1.7 BANKING DEPAHTMEXT. 3.7 3.7 3.7 Deposits I'uhlic 1. :_> 1:5,0 s.s Hankers <i;{.k 100.4 loti.j other accounts ... ,'17.7 37.!i 85..". (iovernment securities y.'.l fvi.o MM Discounts, advances.. 4.3 4.'.t 11.o other securities .... iil.ii u«1.:; 14.1 Notes and coin ."i.'j.i; (>1 ."i Proportion 30.r> - J 30.1* 40.sr,
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