MONEY MARKET.

Auckland Star, Volume LXIX, Issue 189, 12 August 1938, Page 4

MONEY MARKET.

I RESERVE BANK RETURN.

EXCHANGE VALUE FALLS.

DEPOSITS DECREASE £1,089,000,

(By Telegraph.—Press Association.)

WELLINGTON, Thursday. ; The Reserve Bank return 'for the week [ ended Monday, August 8, was gazetted s to-night. 'Ihe statement is balanced at £.6,777,770, or £1,018,103 less than at the . close ot the previous week. i Both classes of deposits have fallen sub,vof the trading banks are ; i .£*'7,906 lower, while Government holili ings are £611,333 lees, the aggregate fall [ ot the two classes being £1,089,239. The i note issue is £8475 less in value. Other i demand liabilities have increased by : £73.404. while liabilities in currencies other than New Zealand currenev are £17.205 higher. A decrease of £728,186 in the value of the sterling exchange reserve is the prin- ■ ci pa I movement on the assets side. Advances to the Primary Produce Marketing Department are lower bv £180.978 and other assets have fallen £109,324 in value. 1 lie statement with variations compared with the wsek before is as follows: — LIABILITIES. Variation £ £ 1. Gen. reserve .. 1.500.000 Same 2. Bank note* . . . 13.592,036 —8,475 3. Demand liabilities— (a) State .... 4.587.924 —011.333 (b) Banks .... (3.204.770 —477.900 (ci Other .... 395.773 +73,404 5. Liabilities In currencies other than N.Z 22.244 +17.205 6. Other liabilities 113,021 —10,998 Total 26,777,770 —1,018,103 ASSETS. i. Reserve— (a) Gohl 2.801,791 Same (b) Sterling ex. 14.594,122 —728.186 8. Subsidiary coin 227,359 +384 10. Advances— 1. Market I n g Dept. .... 3,758,781 —150.97S 2. For other purposes . 2,600,000 ' Same 11. Investment ... 2,732.065 Same J l3. Other assets .. 03.022 —109,324 Total 26,777,770 —1.018,103 Proportion of reserve to notes and other demand liabilities. 69.106 per cent (69.249 last week). 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. 1936. 1937. 1938. „ £ £ £ General reserve 1,500 1,500 1,500 Bunk notes .. . 10,771 12,601 13,392 Demand liabilities — State 6,538 6.613 4.588 Bank 5,784 9,162 6,265 Other 94 002 390 Other liabilities 90 03 115 Total 24,777 30,631 26,778 ASSETS. £ £ £ Reserve— Gold 2,802 2,802 2,802 Sterling .... 19,487 20,154 14,594 ! Subsidiary coin 188 110 227 Advances to State— Marketing Dept. — 4,284 3.759 Other purposes — 300 2,000 Investments .. . 2,038 2,900 2,732 Other assets ... 262 75 63 Total 24,777 30,631 26,778 Proportion reserve to notes and other demand liabilities 96.13 79.05 68.106 Principal Changes. Compared with a year ago note issue is nearly £1,000,000 higher, while State and ! bank deposit* combined are over £4,600,000 lower. On the assets 6ide the chief I movement is in sterling, which is lower by I over £p,500,000. Compared with two I years ago sterling funds have decreased by nearly £5,000,000, but as a partial set-off is the item "Advances to the Marketing Department," at £3,700,000. No detailed information is available in regard to*the item advances for other purposes which has risen sharply in recent weeks and now stands at £2,600,000. The proportion of reserves to notes and other demand liabilities is over 27 per cent less than it was two years ago.