MONEY MARKET.

Auckland Star, Volume LXVIII, Issue 263, 5 November 1937, Page 4

MONEY MARKET.

RESERVE BANK RETURN. EXCHANGE FALLS £446,000. DAIRY ADVA WES UP £634,000. (By Telegraph.—l*ress Association.) W ELLINGTON. Thursday. T he Reserve Bank return for the »eek ended Monday. November 1. was gazetted to-night. Jhe statement is balanced at £2,.568.600. or .C 243.256 more than at the close of the previous week. An increase of £.">32.833 in the level of the trading banks deposits is the principal movement in the liabilities. (iovej "men; deposits are £229.594 lower than the\ were a week before. Other demand labilities have increased £64.6')4 and other liabilities decreased by £114.529. There his been a tall ot £ 10.008 in the value "! the note issue. . _ n ' | s( ' , ' v e of sterling exchange is 1 446..,61 I'iuer than it was a week before. Alliances to the Dairv Industry Account have increased by £«34.318. ami advances t'-r other purposes hv £200.000. Other assets an- t'144.412 lower.

The statement, with variatioM compnted with the week before, is m tolluw s: —

LIABILITIES. Variation. ,„ £ £ 1. lien oral reserve. 1 ..Vin.OftO Same ~■ Hank notes .... 1 H.l'R.'j.fiJtJt —10.058 3. Oetniind liabilities— < a > s ' a I 4.i;:si. 160 —229.."i94 (hi Bunks .... 7.r»L'l 7 -j-.">3'.J K33 • r 1 Other 40.V3«4 +64 Bi>4 6. other liabilities 14«,45c; 114..">20 Total 27.565.000 —243.256 ASSETS. __ £ £ I. Reserve <a> «'l<l 2.R01.791 Same lln Sterling: e\. 17.14.V!'«7 —446.307 s. Subsidiary coin SK.O,-,4 —283 1". Advances— 11) Dairy Industrv A 4.400,703 +634,318 (2) For other purposes .. . 700.<iii0 4-200.000 11. Investment .... 2,»i."if5.32.% Sanie 13. Other assets .. T IT. 7 --144,412 Total 27.M>s.t;o«i —^43.256 | I't«»|m »t t ion of reserve to notes and other ■ demand 1 lain lilies, 76.083 per cent (.78.861 last work I. Three Years Compared. The foilowinp table shows the position of the bank's funds at this date for the past three years (in thousands of pounds): — j liabilities. 10.1.-1. mr*6. 1!>37. [ , i: £ a • I" Ia 1 1.1)110 . - <> en era 1 reserve .. .-on l r,oo 1.r.n0 '•"" k !',0",7 11 13,264 I>cmntnl linb i 1 i t i«-s — | 1 s ">'« 7 2 4.236 4.631 I'M Hunk 4.476 8.351 7 !t2l "' l <"lier 71 '.*! 16.". 40.1 lOllier liabilities .. Jt6 109 ]4g Total 21.403 2.j,t»00 27,868 | ASSETS. ! £ £ £ Reserve— (at Cold 2.502 2 802 " 80° I 111 Sterling ... I«,S-_'i| 3«!j17 17'140 (c; Subsi il i a r y . , , '" 1 " 212 156 88 A (Ivan res to stnte — l'airy industry . —- 3.750 4.401 other purposes . -- 700 7110 111 \ I'M met, t s 1,536 2.24!t 2,658 other aj.ets js m -j T "<" 1 21,403 25,055 27,868 rri'p-.rt inn reserve t'i iinti's .111 <j nther • letiiaiiij liabilities 1 1' *• > 00.oy 7fi.ii> 76.083 Ihe discount rate ie 2 per cent, but the late is purely nominal. as the bank ha« not so far engaged in the business of die-, counting bills. ( apital was added to general reserve UJi'ler_ provisions of the Reserve Bank of New Zealand Amendment Act, 1036. ! lO'u' 10 etarte< ' businew on August 1, The item "Advances to State or State ull del takings,'' aubdivided into three classes, tii st appeared on August 17. 1938. A lie titut covers the dairy iudustry. In his report to Parliament on September 28 the governor of the bank, Mr. L. rcieriing to other advance! under this heading stated: It haa been flerided to include under the heading of discounts only such bills as are discounted for third parties, and to ehow as Advances to the State ' any temporary accommodation gianted to the Treasury whether against Treasury bills or otherwise. This pto cduie will reveal at any 1 tune tlie extent to wlivli the power to iriant .ic< i.rnniodation to the Treasury , iiii'iir section Jof the Reserve Rank of New Zealand Amendment Act. 19V,, has bf"-n <-xr>t 1 iscd. i

Lnn.Ml.itC'! rinvri nnif-nt se.-urit i»w. which I .HI now l.c h el.) by the bank without l;rnit as to iimnini*. are included tiri'lor trio li-M-liriL' "Invr<ttnont

I!>" h"Min;j of sterling exchange at CIT.IJS.'Hi; is over £!>.T>.n<Kt m..IP than at ,:in " ist ; Moi cover. thp item Advances to tin- dairy indiwtrv." 4 4<«i. 7<>"l. in tlio ovdin.m course will become mi addition to the exchange fund*. This i« one of several factors in the apparent decre.is,. in the proportion of reserve to liabilities.

BANK OF ENGLAND RETURNS. CIRCULATION SLIGHTLY HIOHKR. LOXDOV.. November 4. The Rank of England returns for the we-k ended Xoveniber 3. compared with th'*ie of hist wrek nnd a year ago, are at follow?, in million pounds: — ISSUE department. Nov. CW. Y*»#r 27. affo. £ £ £ Nntrg ipstjpfi — In Hn*»ilati >n .... 4R3.1 442.7 Tn ha n kin? 4or» 43.3 fIH 9 Oihor (» ovt. 18S.1 243 H OtJi» r soruritU»* ... Of) o 5 in Silvor coin Golfl coin am] bullion 326.4 320.4 248!6 BANKING DEPARTMENT. K,o,frill 32 31 32 j'uh'le 30.n 3-..0 27.fi l:'" k ' rs »!»••-. *7.7 80.5 oth<T accounts :tt; r, ;{u 7 454 n»vr. securities .... iii.t.4 so!j • tin fs, itilmnri's 7.8 s.l r, (\ Notes anil coin .... 20.8 2o.!( Cfi ft other securities .... 42.1 44 !l m'j -Proportion" 2«.f)l 28.<>8 43!()2 Rate of Discount. Tho Rank c>f England rate of discount if - per cent, to which it was reduced on June 30, 1032. from 2V4 per cent.