THE MONEY MARKET.

Auckland Star, Volume LXX, Issue 266, 10 November 1939, Page 4

THE MONEY MARKET.

RESERVE BANK RETURN. STERLING £137.700 LOWER. PRODUCE ADVANCES FALL. (By Telcgrupll. — I'rrss Association.) WELLINGTON, Thursday. The Reserve Bank return for the,week enclril Monday, November t>. wni gazetted to-n:jjlit. The. statement is balanced at £.)."..34M.4.">t>. tit- £400.H<>7 le»s than at the eloet? of tin , previous week. The sterling exchange ic.-ei \e, at £.J.Ii().\;!:!H, is £137.740 lower than the level cm the previous Monday. The ;iHff rebate of notes and other demand liabilities is Jt;42li,<MX> less than a week before, principally thioiigh a reduction of £81'2,SfiH in Government deposits. The ratio in 2.5.207 per cent, compared with 25.367 per cent the week before. Advances to the Primary Products Marketing Department are lower by £119,710, while those for other purposes have increased by £100.000. There hut) been a fall of £313,104 in the value of investments. The .statement with variations compared with the week before is as follows: — LIABILITIES.

The Bank of England rate of discoum is 2 per cent to which it was reduced 01 October 25 from 3 per cent. GOLD AND SILVER. LONDON*, November 9. The price of gold is unchanged at £8 8 an ounce. Silver in r(iioterl at 23 Mid ail ounce epo and 20% d an ounce forward.

Vnrintlon. £ £ ; flenornl rpRprve .. 1,5(10,000 Sanio Bunk iiutps 17,418.803 + ir>.!iX5 1J jiikI liabilities — State 2.080.7fc!l S12.SCH Hank* I3.~i7m.12.' -t 3tiii.-jo.-i ' Other 132.21 I •_".»..-IHH Other rnrri-nciem .. H.fl.'H +4,540 ( Other linbillties .. t>17.S!>2 + 23.654 1 Total 33.348.45U —400,887 ASSETS. I Reserve— £ £ (iuld 2.SO1.S3O S»me 1 Sterling ox 5.605.338 —137.749 Subsidiary c-oin . . 223,170 —4,435 , AdriincPri— ' Marketing 0.342.041 —110.7J0 , Other 1U.87.~i.0O0 +100.000 Invnttmeiit 3.8U4.H88 —315,104 J Other aneete 19.-..780 +176,131 * Total 35,348.4r>e —400,867 Proportion of reserve to notes and other demand liabilities, 25.267 per cent (25.367 J last week). ) Three Yean Compared. ' The following table shows the position J of the bank's funds at this date for the > past three years (in thousands of pound*): I LIABILITIES. I 1937. 1938. 1939. ( £ £ £ j General reserre 1,000 1,500 1,500 i Bflnk notes ... 13,227 14,436 17,419 , l).'iiinn<l liabilities— I Stnt« 4.647 2,624 2.087 i Hunk 0,732 5.687 13.578 OthiT 460 ».-».j 132 > otlii-r currenciea -- 17 14 Other liabilities 146 162 618 Total .... 26,712 25,381 35,348 ASSETS. Reserve—• £ £ £ <;<>l<l 2.S02 2,802 2 SO -, Sti-rllni! 16,210 6,633 5,605 SllbHldlury coin 85 220 223 AUvuiicea to State— .Marki'tine L)eimrttnent .. 4,1!)S 4.000 6,342 f>tlier p'rposes 7OO 8.O5U 16,875 Iiivcstiiioiits ... 2,658 3,482 3,3t»4 ' Other assets .. 50 104 196 Total 20,712 25,381 35,348 Proportion re- ; servo to notes J and other de- ' inand liabilities 75.85 39.73 25.267

Principal Changes. Compared with a year ago, note iseue i: higher by nearly £3,000,000. State deposit) are lower than a year ago by £537,000 Bank dcpositH are up by nearly £8,000,000 On the assets side sterling exchange n over £1,000,000 down in the twelvi months and is nearly £10,000,000 lowei than it wae two years ago. Advances t< the Marketing Department are higher b; over £2,200,000. The item, advances foi other purposes, is over £8,IKX),00< higher. No detailed information i» avail able in regard to this item, the expansioi of which has been a primary factor ii bringing the proportion of reserves t< notes and other liabilities to 25.267, whicj in over 14 per cent below the level rulinj at this time last year. BANK OF ENGLAND RETURNS. NOTE CIRCULATION STEADY. (Received 12.30 p.m.) LONDON, November 9. The Bank of England returns for th< vreck ended November 8 are as follow, com purisonH being made with those of a weel and a year ngo, the figures representing millions of pound**:— ISSUE DEPARTMENT. Nov. 8. Nov. 1. Tγ. ago Notrs isMintl— In circulation . 528.4 528.0 482.7 tn blink depf. . 51.8 52.2 43.7 Otlmr Oov. securities 565.6 665.6 188.8 Oth<T securities . . 2.9 2.9 0.2 Sllvpr cnln 0.5 0.5 — Gold rolii and bill. 1.0 1.0 326.4 BANKING DEPARTMENT. R'xt 3.2 3.2 3.2 Deposits— Public 21.3 10.5 15.9 Bimkprs 101.1) 114.8 109.5 Other accounts . 41.5 43.0 35.5 Govt. securities . . . 102.3 105.3 101.5 Discounts, advances 5.5 5.6 11.1 Other securities . . 21.9 22 0 210 Notes and coin . . 52.7 53.1 450 Proportion 32.05 31.53 27.91 Rate of Discount.