money market.

Auckland Star, Volume LXIX, Issue 225, 23 September 1938, Page 4

money market.

RESERVE BANK RETURN.

EXCHANGE FALLS AGAIN,

ADVANCES INCREASE £700,000

(By Telegraph.—Press Association.)

j WELLLNGTOX, Thursday. ' cJw \IZT* o aDk r , eturn for the wee k ' September 10, was gazetted ! statement is balanced at ° r £26S ' 826 < r ">™ than at the | close ot the previous week i,„ ,n ?r nt f d T posiUi - wh,ch ha 'i taiii.'ii ' lv of late. have now recover-d 't7 *, ne ? xt <T nt "/ The holding I /r.VIi 11 ? anks " ° n thp ot!, " r hanr <- lo ?' CI - There has been a fall f it u the Val "° I>SU". J h»> shrinkage in the value of the ste.- | ling exchange reserve continues, the toMl ; being £ ,2.247.006, or £4.^37' less than j the week before. Advances to the Pr - K ' tS lrkf,tin - ar'.. lower, but these for other pm- , poses have increased hv £7riO.fuvi i «-;Th e »i! tat Cr n n u T ith Nation* compared , with the week before is as follows: — liabilities. Variation KTt"! r sPrve •• 1.500.000 S.-frne Bank rotes 13,5<;5. s r,u Ix-maml liabilities— • D ta V '1.704.25n _ r.rii «;<■•<! ~?£ k * 5.943.0-jtt - •»ther .127 rin.'; j" •»n-, Other currencies .. 17 26.'! li'hor liabilities .. IJI.S!i( -i Waits Total 25.1 82.007 — "<SS S 'i; assets. ' " " - Kp^rv—• ' ' Y' Sarrif* storhnz Kx 12.247.n0f; 4 Subsidiary fnin ... L'2S.OH 1 >!»i Advances— Markptinjj 3. c,r. j Ot h*»r wi.fmn .. 7r, n mom 'nv-stm-nr 2,732.0u 5 Sam. nthor a-wts 92.910 -1:5.Ill Totfll 25.1R2.997 r 'Ji'iK.K'Ji; Proportion of reserve to notes and other demand liabilities. 63.853 per cent (66 42S per cent 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 ot pounds): j liabilities. 1936. 1937. 1938. : General reserve 1,500 1,500 1 r,OO I Banknote* ... 11,104 12 949 13 366 Demand liamiities— 1 State 3.«. V» 5 451 3704 6.654 8.139 5.493] Other 191 g 4 .j r> ._. s Liabilities in currencies other than S.Z. — 17 Other liabilities 105 m 2 125 Total 23.594 29.'-'S3 25,1*3 ASSETS. £ £ £ ReserveGold ....... 2.802 2.502 0 80° •Sterling .... 16.922 IS.ri.lc, r>">47 Subsidiary coin 17 Advances to State—Marketing Dept. SO I 3.966 3.2 = 1 Other purposes "00 500 3 S(io ; Investments . . 2,03 c, 2 90»; " 7T* j Other assets . . fiS ' 7S g-j • ' Total .... 23,594 29,283 25,183 Proportion reserve to notes and other demand liabilities (P-e.) 89.6# 78.53 63.853 Principal Changes. Compared with a year ago note issue is nearly £600,000 higher, while State and bank deposit* combined are over £4,200,000 lower. On the asset* side the chief movement ia in sterling, which is lower by over £6,000.000. Compared with two years ago sterling funds have decreased bv over £4.000,000. but as a partial set-ofT w the item "Advances to the Marketing Department," at £3.281,202. This item. ; t will be noted, is over £685,000 le«« than at this time last year. Xo detailed information is available in regard to the item advances for other purposes, which has risen sharply in recent weeks and now stands at £3.800.000. The proportion of reserves to notes and other demand liabilities is nearly 26 per cent leas than it was two years ago.

CONSOLS AND STOCKS. ALL-ROUND WEAKNESS. SOME PARTIAL RECOVERIES. (Received 11 a.m.) LONDON. September 23. The following table gives quotations for consols and colonial Inscribe)] stocks coinpared -with those of September 10:—' VariaPrice. tion. £ s. d. i. d. Consols. 2J per cent ... 71 0 0 40 0« Funding Loan, 4. 1060-90 110 0 0 L>o o» War Loan, 31, 1052 ... I'm 0 0 10 Of Conversion Ln., 31, 1961 OR 10 0 20 o» Victory Bonds. 4 107 0 0 Same Com'wealth. 5, 1945-75 . 104 12 6 1*» (it Com'wealth, 4. 1043-48 . 9ft 5 o 10 o» Com - wealth, 3|. 1945-53 06 15 0 sof Com wealth, 3J. 1056-61 «7 7 6 12 fit •'"m'wealth. 3. 1955-58 . 84 10 O 30 0» N.S.W.. 31, 1030-50 94 2 « 7 6* \ ctoria, 3. 1029 40 ... 00 0 0 35 Ot Victoria, 4J. 1040-60 .. I<<o 10 0 15 0» Victoria, 5. 1045-75 104 5 0 45 Of Queensland. 3, 1922-47 , 91 10 0 10 0* Queensland, 5, 1940-60 . 100 12 6 27 6t S. Australia, 3 J 1016. opt. 74 0 0 Same S. Australia. 5, 1945-75 . 104 2 6 4*> r,t W. Australia, 4. 1042-62 08 10 0 10 n* Tasmania, 31, 1920-40 . 90 10 0 5 ot Tasmania, 4. 1040-50 ... OS 10 0 27 6* New Zealand, 41, 1048-58 08 7 6 "fit New Zealand, 31, 1940 . 98 10 0 Same New Zealand. 3, 1045 . 01 7 6 27 Of tHigher. •Lower.