MONEY MARKET.

Auckland Star, Volume LXX, Issue 301, 21 December 1939, Page 4

MONEY MARKET.

RESERVE BANK RETURN.

STERLING FUNDS RISE. INCREASED BY £2,000,000. (By Tplpgraph.—rress Association.) AV ELLTXGTOX, Wednesday. The- Reserve Bank return for the week ended Monday, December 18. issued to-night. The statement is balanced at £.J0,.361.363, or £801,.>.33 more than at the ( lose ot the previous week. I lie sterling exchange reserve at £8,273,056 i& <£2,068,322 higher in value than on the previous Monday. Xotes and other demand liabilities 'are £803,575 higher in the aggregate than the week before, the principal movement being an increase ot £1,010,384 in the note issue. Ihe ratio Ls 32.370 per cent, compared with 26.933 per cent in the preceding week. Advances to the Primary Products Marketing Department have been reduced 112.024,323 in the week the statement covers. Those for other purposes are £850,000 higher. I lie statement, with variations compared with the week before, i« as follows: — LIABILITIES.

Variation. £ £ General reservo ... 1,500,000 Samp Blink notes 18,076,716 +1,010,384 Demand liabilities— Stuff 2,823.160 —418.142 ""•Iks 12.219,176 +211,333 Other 140.373 —27,486 Other currencies .. 14.462 —1,000 Other liabilities .. 687,476 +26,444 Total 36,361,363 +801,533 ASSETS. Reserve—■ g g G«'<l 2.801,839 Same Sterling ex 8,273,056 +2,068,322 Subsidiary coin ... 165,008 —11,193 Advances— Marketing 3.301,947 —2.024,323 Other 18,325,000 +850.000 Investment 3,313.947 —63,251 Other assets 180,566 —18,022 Total 36,361,363 +801,533 Proportion of reserve to notes and other demand liabilities, 32.379 per cent (26.933 last week). Three Years Compared. The following table shows the position of the bank's fund* at this date for the past three years (in thousands of pound*}): 11 ABILITIES. 1937. 1938. 1939. £ £ £ General reserve 1,500 1,500 1,500 Bank notes .. . 15,094 16,299 18,977 Deposits—■ State 4.034 2,543 2,823 Bank 8,041 6,427 12,219 other 623 181 140 Other currencies — 16 14 Other liabilities 171 196 689 Total .... 29,463 27,162 36,361 ASSETS. Reserve— £ £ £ '•old 2,802 2.802 2,802 !-:terUng 16,878 4,3*18 8,273 Subsidiary coin 212 194 165 Discounts — 500 — Advances to State— Marketing Department . 5,778 .".184 3,302 Other purposes 900 10,400 18,325 Other 150 — — Investments . . 2,658 3,605 3,313 Other assets . . 85 109 181 Total 29,463 27,162 36,361 Proportion reserve to notes and other demand liabilities 70.81 28.11 32.379

Principal Changes, Note circulation continues to show a seasonal increase and is cloee on £2,700,000 'higher than it was a year ago. Public d#P®«t«jare higher over the sams period, while bank deposits are over £5,700,000 higher. On the assets wide sterling funds are £3,905,000 higher, but are £8,000,000 down compared with two years ago. Advances to the Marketing Department ate over £1,800,000 lower, but those allocated to "other purposes" are nearly £8,000,000 up in the year.