MONEY MARKET.

Auckland Star, Volume LXX, Issue 16, 20 January 1939, Page 4

MONEY MARKET.

RESERVE BANK RETURN. RISE IN EXCHANGE. NOTI-: I SSI" K RKDLCTION". (By Telegraph—Press Association.) VVELLIXGTO'N, Thursday. The Reserve Bank ol : New Zealand return for the. week ended Monday, .rarmary 10. was gazetted to-night. The j balancing total is £28..>18.370, or ant inn ease ot A!419,10l over that of. the | previous week. • The icature of the statement is the rise in the sterling exchange reserve, which, after ,i lioavv lifeline since ( liristnias week, is Jj 4;t().-_'.'i4 higher at L' 4.373.10"). Advances are practically stationary, those (In* Piioiai.x Products Marketing I )eparl nieiit declining, while a'U ances toi other purposes rose. tiovei nincnt. (ieposits have again incieasiil. a. further advance "I f 1511..i.i4 i following a t ise ol t'()20.l)13 in the pte\'ious week. Holdings ol the tra'ling banks have also been sit list a lit ial l\ raised to tin' extent of 1'031.407. Kviilcncp of the it. lut n of tile holiday note issue appears in the further tall ol £207.1.V.1 iu bank Holes. wltii Ii succeeds a decrease ol C;!t)7.(i('' a week ago. The issue, howevei . is still substantially higher than tin- lc\ot in til,, ioi responding week of I.: - * jrir. The pioportlon t<T tesetvi' lo notes and other demand lialiilit i.-s has risen from Vjii per cent 1.i.-i week to 2(i.7K"2 iu tlie current return. The niiniinuni iieiceiitage allowed b\ the law is 2,"i. I'll.' slatciifPnt. with \ aria t inns, compared with the week lietoie is as follows: — Ll A BI I.ITI F,S. Variation £ £ General reserve . . 1,500,000 Sa UKBank nolcs 15,530",nii4 —207.150 Hetiiand liabilities — State 2.5i11.115 -f-150.551 Banks s.ol'2.sos . li.'tl. 107 inlier 133.1011 -—110,727 111 her ciirreiieies .. 2.0110 • I.K'JOi Other liabilities .. 237.432 f 22.2110 i Total 2*.5 15,370 +410,101 ASSET!*. £ £ Ileserve— Gold 2.501.701 Samp Sterling ex 4.373.1n,"i -• 430,254 Subsidiary coin ... 102,!)o3 -—1.407 Bills 500,1)00 Same Ad vii tiers - - Marketing o.n2K,snii —130,705 Other 10.070.000 4-1411.(11)0 Investment 3.003.300 Same Other assets 45.774 —15,771 Total 25.518,370 +419,101 Proportion of reserve to notes and other demand liabilities, 20.782 per cent (23.526 last week). Three Years Compared. The following table shows the position of the bank's funds at thin date for the past three yeara (in thousands of pounds):— LIABILITIES. 1037. 1038. 1930. £ £ £ General reserve 1.500 1,500 1.500 Bank notes ... 13.213 14.532 15.8.30 Demand liabilities— State 4.335 3.040 2.502 Bank 11.00 l 0.027 8.013 Other 1,41(1 050 103 Other enrreticles - ;i Other liabilities 132 192 237 Total 31,051 20.541 28,518 ASSETS. £ s e Reserve— Gold 2,802 2,802 2.802 Sterling .... 17.004 10.083 4.373 Subsidiary eoln 155 218 192 Bills — — 500 Advances to State— Marketlng Department . 5,903 0.221 0.02.8 Other p'rposes l,8(>o 000 10,070 Investments . . . 3,104 2.058 3,003 Other assPts . . 73 50 48 Total 31,051 29,341 28,318 Proportion reserve to notea and other demand liabilities (p.c.) 0R.28 69.06 26.782 Principal Changes. Compared with a year ago, note issue is higher by nearly £1,400,000, while State and bank deposits combined are £1,800.000 lower. On the assets side sterling exchange, though higher than last week, is over £ 12,000,000 less than a year ago. Advances to the Pairy Department have been fairly steady of late, while the item, advances for other purposes, shows an increase, and is nearly £10,000.000 highor than a year ago. Xo detailed information is available in regard to this item, the expansion of which has been a primary factor in bringing the proportion of resri vps to notes and other liabilities to '26.782 per cent, a drop of oxer 43 per cent in tlie year.