MONEY MARKET.

Auckland Star, Volume LXX, Issue 28, 3 February 1939, Page 4

MONEY MARKET.

0 RESERVE BANK RETURN. 0 •' 0 EXCHANGE £262,000 LOWER. 0 g NOTE .'ISSUE-STILL-rMLESG. ('By- Telegraph—-Press Association.)] • •WELLINGTON, Thursday. The Reserve Bank return for the week ended Monday, January 30, was gazetted to-night. The statement is balanced at £25,618,2G0, or £33,162 less than at the close of the previous week. 0 The reserve of sterling exchange is £201,040 lower than it was the week before. The ratio of reserve to demand J? .liabilities has again, fallen below. 26 per O cent, being 25.75, or only .75 per cent 0 above the statutory minimum. Advances (j to the Primary Produce Marketing Department have increased by £291,453. Other items, on the assets side of the statement remain substantially unchanged. The note issue continues its fall from the holiday peak, being £172,470 lower 0 this week.' Government der sits are 0 £105,915 lower,, while those of the trading 0 banks have increased by £204,862. The statement, with variations, comjj pared with the week before is as follows:— LIABILITIES." . 6 s £ £

[• maud liabilities 1 (P.c.) 70.8G G7.32 25.75 J Principal Changos. 2 Compared with a year ago, note issue is • higher by over £1,100,0017, while State and 1 bank deposits combined arc over £2,000,000 lower. On the assets side sterling , exchange, though slightly higher than last week, is over £12,000,000 less than a year ago. Advances to the Dairy Department have been fairly steady of late, while the item, advances for other purposes, is nearly £10,000,000 higher than, a year ago. No detailed information is available in ■ f regard to this item, the expansion of which has been a primary factor in bring--1 ing the proportion of reserves to notes and other liabilities to 25.75 per cent, a drop of nearly 42 per cent in the year.

6 Variation General reserve .. 1,500,000 Same 0 Bank , notes 15,3U5,So8 —172,470 Demand liabilities — 0 State 2,023,351 —105,015 0 Banks ,... 8,587,300 +204,802 0 Other 202,101 +9S.151 6 Other currencies .. 24,21S —031 Other liabilities .. 255,142 +1,279 C Total 2S,01S,2G0 —33,102 0 ASSETS?. ' / £ £ n Keserve— Gold 2,801,791 Same Sterling Ex 4,133,580 —2G1,940 Subsidiary coin ... 195,7S3 +3,277 ri Bills " .. 500,000 Same q Advances— h Marketing ..... 0,158,109 +291,453 i; Other :. 11,000,000 Same X Investment 3,U33,Sl<i +30,516 Other assets ' . 95,115 —90,40S Total 2S,01S,2G0 —33.1G2 1 Proportion of reserve to notes and other demand liabilities, 25.75 per cent. (26.G95 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. 1937. 1938. 1939. £ £ £ General reserve 1,500 1,500 1,500 Bank notes ... 13,019 14,240 15,300 Demand liabilities— 'State 4,846 3,523 2,024 Bank 12,203 9,805 S.5S7 Other 37G 693 202 r Other currencies — — 24 3 Other liabilities 145 190 255 j Total .... 32.0S9 29,907 28,018 t ASSETS. : £ £ £ Reserve — . Gold 2,802 2.S02 2,802 t Sterling 18,770 16,231 4,133 : Subsidiary coin 101 217 190 i Bills — — 500 I Advances to State— Marketing Des partment . 5,973 0,024 G,158 Other p'rposes 1,800 1,100 11,000 Investments . . 2,453 2,934 3,034 Other assets .. 130 79 95 Total 32,089 29,967 2S.51S Proportion reserve to notes and other de-