MONEY MARKET.

Auckland Star, Volume LXX, Issue 34, 10 February 1939, Page 4

MONEY MARKET.

j RESERVE BANK RETURN. i EXCHANGE £58,600 LOWER. i . :';-'~~ V : -. : ' j. EATIO DOWN TO .25.074. j (By Telegraph—Tress Association.) WELLINGTON. Thursday. _The Reserve Bank return for the week ended Monday, February: 6, was gazetted to-night. The statement' is balanced at £29,255,719, or £037,459 more than at the close of, *:he previous week. .' The sterling exchange reserve stands at £4,074,954. or £55,C32 less than the week before. This movement, •.coupled with an increase of £557,400 'in deposits—State | £014,432 and banks £273,025—has reduced \ the ratio of reserve to demand liabilities to 25.074 per cent, or less than 1 per cent ! more than the statutory minimum. The [ note : issue, however, is £155,G03 lower, this being a minor set-off to the rise in deposits. '■"•:, The bills—Treasury or local body—which have stood at £500,000 since December 19, were disposed of during the week, and this item disappears from the return. Advances, however, are substantially higher, those to the Primary Produce Marketing Department having increased by £316,262, and other advances being £850,000 greater in value. The statement, with variations, compared with the week before is as follows:— LIABILITIES. U £ Variation General reserve .. 1,500,000 Same Bank notes 15,200,255 . —150,003 Demand liabilitiesState 3.237.953 +014,432 Banks 5,800,32S +273.02S Other 10U.SSJ —153.277 Other currencies .. 10.0711 —] 3.278 Other liabilities .. 333,203 -4-75.137 'Total, '. 29,255,710 +037,450 ASSETS. & £ Reserve— Gold 2,801,791 Same. Sterling Ex 4,074,054 — 38,832 Subsidiary coin ... • 204,058 +5.575 Advances— Bills — —300,000 Marketing - 8,474,431 +310,202 Other 11,050,000 +850,000 Investment 3,484,383 +12,38!) Other assets 103,500 +8.355 Total 20,253.710 +037,450 Proportion of reserve to notes and other demand liabilities, 25.074 per cent (25.75 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. 1037. 1938. 1939. £ £ £ General reserve 1,500 1,500 1,500 Bank notes ... 12,916 14,008 13,200 Demand liabilitiesState * S.ISS 3.500 3.23S Bank 11,070 9,458 8,808 Other .. 173 138 107 Other currencies. —. — 11 Other liabilities 143 IU3. 333 Total .... 31,901 29,202 29,253 ;;.' ■■' assets. , , • £ £ £ Reserve— Cold 2,802 2,802 2.502 Sterling ~..18,801 15,701 ,4,075 Subsidiary coin 101 21S 203 Advances to State— Marketing Department . 5,755 8,100 8,474 Other purposes 1,800 1,100 11,050 Investments .".' 2,453 2,941 3,048 1 Other assets .. 99 .70 103 Total ...; "31,901 20,292 29,255 Proportion reserve to notes ' and other demand liabilities - ; (p.c.) ....... 71.40, 07.04 20.074 '.. Principal Changes, . Compared with' a' yeai-ago. note'issue is higher by over £1,100,000, wdiile State: and. bank deposits combined are over £1,200,000 lower and more than £5,000,000 less than in February, 1937. On the assets side sterling exchange is over £11,000,000 less than a year ago. Advances to the Dairy Department have been fairly steady, of late, while the item, advances for other purposes, is £10,800,000 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 reserve to notes and other liabilities to 25.074 per cent, a drop of nearly 42 per cent in the year. BANK OF ENGLAND RETURNS. ' INCREASE IN/CIRCULATION. LONDON, February 9. . The Bank of Jirigland return for the week ended February 8 is given in the following table, .together with the returns for- last -week and a year ago:— . ■:.:[ ". ISSUE DEPARTMENT. (In millions of pounds.)- ' •.■'..'.'''.•' •' Feb. Feb. Year S. . 1. ago. Notes issued— In circulation ... 473.0 471.0 470.1 Iu banking dept. . 31.4 34.5 50.3 Other Govt, securities 3SS.B 355.6 ISS.3 Other securities ... 0.1 0.1 0.7 Silver coin 0.3 0.3 . — Gold coin and bullion 12G.4 120.4 328.4 BANKING DEPARTMENT. I Rest 3.0 3.0 3.0 i Deposits— ! Public 15.4 12.3 10.1 ! Bankers' 103.9 108.3 102.9 Other accounts .. 35.5 37.1 35.0 Govt, securities'.-.. 77.8 77.9 93.3 Discounts, advances 20.8 21.3 9.8 Other securities ... 22.4 . 21.3- 18.9 Notes-Mill coin . ;•;-. 32.3 55.3 30.9 'Proportion. ./, .:.. 33.79 '.33.03.: 32.04 /':' .;.'..'. Rato of Discount. ■; ' .. The-Bank of England rate of discount is 2 per cent, to which it was reduced ou June 30,- 1032, from 2% per cent. I • OVERSEAS MARKETS. , • PRICES OF METALS. LONDON, February D. Following are to-day's quotations on the London metal market, compared with those on. February 8:— . . Feb. S. Feb. 9. Per ton. Per ton. ,'£sd • £ s U Copper,-stnn., spot 42 10 7J 42 io 102 Copper, stan., 3 months- 42 10 105 43 2 11} Copper, electro. .. 47 10 0 48 5 0 to to ; 4S 10 0 4S 15 0 Copper, clec, wire bars 4S 10 0 4S 13 0 Lead, sott, spot . 14 5 7} 14 G 3 Lead, soft, forward 14 0 45 14- 10 71 Spelter,'-spot .... 13, S 1J 13 II 3 Spelter,-forward.-. 13 14 41 I*3 1G 105 Tin, Stan:, spot .. 214 O 0 213 2 0 Tin, stan;, 3 mos. 212 ; ,12 0 213'17 8 Silver, stan.. oz . 201(1 201(1 .Silver, fine, oz. .. 21 11-10 d 21|d SYDNEY PRODUCE MARKET. SYDNEY, February 9. The wheat market is steady, but trading is negligible. Silo grain is quoted at 2/5 to 3/8, with bagged- to 2/7. Flour. £12 5/. Bran, £5 5/. Pollard, £5 10.'. Potatoes, Tasmanian. £25.. Onions, Victorian, white. £24; New Zealand, brown. £23. Queensland pumpkins. £25. Tasmanian swedes, £22. Beans, 12/: a bushel. Peas, 10/ to 11/ a bushel. SUGAR BEST. ' • (Received 11.30 a.m.) .-' . LONDON, February 9. Sugar beet is quoted at 6/3 per c\vt.