MONEY MARKET.

Auckland Star, Volume LXIX, Issue 65, 18 March 1938, Page 4

MONEY MARKET.

RESERVE SAM RETURN. EXCHANGE UP £1,005,000. REDUCED I'RODUt E ADVAXCES. i.By Telegraph.—Press Association.) i WELLINGTON". Thursday. | Tlip Heseivp l?uik return for the week ended Monday. March 14, was jja/etted ti'-!iia!it. The statonn nt is balanced at L2-vfi.Vi.ti2i>. or i*n3S.oSl lfvs than at the '!"•*■.• i-i Ihe previous week. (lovernniont deposits have fallen by L'S<>7.2lS from the hiirh point replied by :'if ;t:~e increases in the two previous «-iT-k.a. The holdings of the trading Drinks are £110.500 lower. The note issue has fallen in value by £27,U>3. The sterling exchange receive is '- l.i»i."i.(i"_' 1 higher in value than it was a week Advances to tlie Dairy Industry A'-eomit are lower by £">02.0<t7. Tin- item advances to the State or Stale iiiidi-i"iakinjrs for purposes ntlier than the marketing of primarv produce, which M 1 at £1.300.000? last week, has been entirely eliminated. The statement, with variations compared with the week before, is as follows: — LIABILITIES. Variation. £ £ 1. General reserve 1,5nn.n00 Same 2. Hank notes .... 13.50ii.52n —27.153 3. Demand liabilities--la i State 7.R55.500 —Ki'17.21 5 ; ihi Hunks .... s.'_'ii.'l.ur>4 — 11P.5nii n-i ntlier .... 273.253 - 71;.."." 2 0. Olher liabilities . 10:!,S7:i - 75«; Total 25.ij.jD,626 —935."*1 ASSETS. £ £ 7. Reserve— (a) Gold 2.801,701 Same (hi Sterling ex. 10.ii22.137 -j-t.oorp.n2l S. Subsidiary coin 220,770 —132 VO. Advances — (1) Dairy Indusiry Aim-..lint 5.074.000 —502. 007 (2) Fur other purposes . . - - _ ].:ini..oi,o I-" I (iilii'r 2.1H.111.11 Same 11. lnvcslin-nt .... LY.»71.055 —I.:',< - . 2 13. Other assets .. HM.077 —111.500 Total 25.ii55.ii20 —«i3s.iisi Proportion of reserve to notes and other demand liabilities. 72.042 per cent iij<>,ol9 per cent last week i. Three Years Compared. The following table shows the position of the bank's funds at this date for the past three years (in thousands of pounds): — LIABILITIES.

. i'r.ip.ir: ion reserve j to in lies an i.l i>t lier demand liabilities 1 (p.e. I ',is.u7 li'.'.HO 72." 12 ! Tho discount rate is 2 per cent, but tiie i rate is purely nominal, as the bank has I not so far engaged in the business of duscouQUng bills. I Capita] was added to general reserve | provisions of the Reserve Bank of i New Zealand Amendment Act, 193(3. I 'I he bank started business on August 1, j 1934. j The item "Advances to State or State , undertakings, ' subdivided into three ! classes, lirst appeared on August 17, 1050. ihe ii:>l covers tiie daily industry, i In h;s report to Parliament on Sep- , tember 28 tiie governor o£ the bank, Mr. •L. Lefeaux, referring to other advances under this heading stated: It has Wen decided to include under t'-ie heading of discounts only such bills as are dis--1 counted for third parties, and tf. showas "Advances lo the State'' any temporal.v ; accommodation granted to tiie Treasury whoJier against Treasury bills or othei- ' time the extent to whi.-h the power to siaut accommodation to the Treasury . under se-.tion 1"> of the Reseive Rink of | Xnv Zealand Amendment Act, 19.3 C, has i been exercised. i Long-dated Government. securities, i which can now bo held by the bank with- | out. limit as to amount, are included ' under the heading "Investments." ' Compared with a year azn. note is=ue !i* lii-her bv over e.VlOimo State ' deposits ate down about £ I ..ISiv.fHio. and jbink deposits by over (in ■ * i!" assets side tiie chief movement is in I the holding of sterling, which is i'l.oCo.. loon lower. Compared with the position I two years ago sterling funds have J decreased by over £5.000.000. but as a | partial set-off is the item "advances to [dairy industry" at over £.i.R00,000.

io3fi. iim. inns. £ £ £ Capital I.nno — — licacral reserve . . r>Oi> 1,."00 1 ">On Hank n.ijos n.'iii.S l.'i.nl.-, j:;..-.r.7 Ilniiiinil liabilities— i 1 i-ik ! -11 7 " ■ 1 if i nthor !!•*■ :117 27:; Hill- r liabilities . . 1)1 1 .V2 Ins Total 2H.i;S4 ;;i>n:; 2s,i;.-|i; ASSETS. £ £ £ Reserve— (.i) Oolil 2.<80a 2.R02 2.<*02 iln Slerlinir ... L" 1. v >; 7 ls.2!i" Ici.fiJ" Su!i«!iliiir.v i-.mii . . i:m; ].-,ii u:;m Atlv.iiK's t" state— I Miry liuliisirv . — li.l I* r,.f,7r, iitln-r imrp.isi>s . - - l.sim i i'!i. r - - 7T, 2.Vi I'M.■>:],..■!,I- 1.7H-J 2.1.-:; 2.L72 ( It lif r assets, 2-- l"'.i In.-, Tntiil 2',i.r,S4 31.«i.Ki 2s.i;."if.