MONEY MARKET.

Auckland Star, Volume LXX, Issue 22, 27 January 1939, Page 4

MONEY MARKET.

RESERVE BANK RETURN. STERLING UP £22,400. DEPOSITS £350,000 HIGHER. (By Telegraph—Press Association.) WELLINGTON, Thursday. The Reserve Bank return for the week emlcl Monday, January 23, was gazetted to-night. The statement is balanced at £28.65 1.422, or £133,043 more than at the close of the previous week. The, sterling exchange reserve lias increased again, but only by £22.421. compared with a rise of £439,254 in the previous statement. A fall of £161.700 in advances to the Primary Produce Marketing Department is almost balanced by a vise of £130,000 in the level of those for other purposes. Government deposits are £11.679 lower than on the preceding Monday, while the holdings of the trading banks are £369,360 higher. The fall of the note iissue from the holiday season peak continues, the decrease in this return being £291,736. The proportion of reserve to notes and other demand liabilities at 26.695 i<? little different fioni that of the week boforc. Tim statement, with variations, compared with the week before in as follows: — I.IABILITIKS. Varintlon £ £ fionernl reserve .. 1.500.000 Same Hank not.* 1.-j,535.82X —Jiil,73G Di-mantl liabilities— S;;ir.' 2.780.4»J« —11,070 Hanks 5,35"J,438 + 3liiMS3O (it.i-r i«;4.i>K> -f :»0.04fl MthiT riirri-noios .. 23.317 -J-2H.34« UtIHT liabilities .. 233.8U3 4-Hi.431 Total 2S,fi.-, 1,422 +133,043 ASSET*. £ £ Reserve— Gold 2,801,791 Same Sterling ex 4.395,.-,2(5 +22,421 Subsidiary coin . . . iri2,,~0« —397 Bills 500,000 Same Advances— Marketing 5,800.71<i —101.790 Other 1 I.KMi.O(»I +130.(100 In vestment 3,fi03 300 Same Other assets 191.583 +142.809 Total 2a,«ri 1,422 + 133.043 Proportion of reserve to notes and other demand liabilities, 26.695 per cent (26.782 last week). Three Years Compared. The following table shows the position of the bank's funds at thie date for the past three years (in thousands of pounds):— LIABILITIES. 1937. 1938. 1939. £ £ £ General reserve 1.500 1,500 1 500 Bank notes .. . 13,068 14,296 13 538 Demand liabilities— State 5.040 3,023 2.789 Bank 11,887 10,308 8 352 Other 386 641 lf>4 Other currencies — - - "'S Other liabilities 133 I!t3 254 Total .... 32,014 20,961 28.t>51 ASSETS. £ £ £ Reserve—• Gold 2.802 2.802 2.80" Sterling 17,1K>2 17.209 4,39r. Subsidiary coiu 154 218 192 BilU — _ 500 Advances to State—■ Marketing DeIKirtiiwnt . 0,110 6,093 5,867 Other p'rpose* 1,800 fWH» 11.100 Investments . . 3.1 HO 2,058 3,603 Other asset* .. 86 81 101 Total .... 32,014 29,981 28.651 Proportion reserve to note* and other demand liabilities (P-C.) 68.15 70.79 26.695 Principal Changes. Compared with a year ago. note issue is higher by over £1,300,000, while State and bank deposits combined are over £2,000,000 lower. On the aesets side sterling exchange, though slightly higher than laet week, is nearly £ 13,000,000 lees than a year ago. Advances to the D&ijjy Department have been fairly steady of late, while the item, advances for other purposes, shows an increase, and ie nearly £11,000,000 higher than a year ago. No detailed information is available in regard to this item, the expansion of which has been a primary factor in bringing the proportion of reserves to notes and other liabilities to 26.695 per cent, a drop of over 44 per cent in the year.