AUSTRALIAN MONEY MARKET.

Press, Volume LXVIII, Issue 20500, 19 March 1932, Page 16

AUSTRALIAN MONEY MARKET.

FUNDS LOCKED UP ON DEPOSIT.

EFFECT OF HIGH EXCHANGE,

An abnormal position has been created in the Australian money market by tho high rate of exchange, which has locked up funds which otherwise would have been remitted abroad, states the ''Melbourne Argus." Much of this money has been offered to the banks ou fixed deposit. Deposits also have been increased by money which normally would have found its way into business, or have been invested in mortgages or other forms of security. Traders who usually work on overdrafts at the banks have been realising stocks, and they are now working witn credit balances, and some are seeking to place funds on lixed deposit. This surplus of funds has been the cause of the steady reduction of deposit rates which has occurred since June. Bankers are anxious that the money should flow back into industry. Legislation which has reduced rates of interest on Government loans, mortgages, and other fixed interest-bearing securities has been partly responsible for the surplus of deposrit funds, but now tho rates quoted by the banks may be low enough to induce depositors to seek other avenues of investment.

It is improbable that much exchange money will be diverted from the banks, however, as holders will wish to transfer it abroad at the first opportunity, and they may desiro tip keep their money free irom the risk of market fluctuations, even if the rate of interest earned is low. It is probable that the lower deposit rates will cause some appreciation in prices quoted for Government securities, and tho fall in prices which Jins taken place on the Stock Exchange recently should be checked. Lower rates of interest generally are of advantage to trade. The ultimate effect of the low rates quoted bv tho banks, and tho small returns available from investment in first-class securities, should bo to promote interest in industry and commerce as investors seek more profitablo employment for their funds.

COMPANIES REGISTERED.

The registration of the following new companies is notified in tho current issue of the "JJercantile Gazette": —

Gold Options, Ltd. Registered March Ist, 1932. Capital: £2500 in 2500 shares of £1 each. Office: Office of W. P. McCarthy, solicitor, Groymouth. Subscribers: Greymouth —S. B. White 100, F. Murray 100, T. A. W. Tate 100, It. J. Williams 50, M. Martin 25, T. P. Ryan 25, E. C. Hansen 25. Objects: Adopt agreements to purchase mining rights at Charleston and Barrytown with E. Souter; tako up options to purchase other gold-mining privileges, etc. _ Napier Amusements, Ltd. Registered March 9th, 1932. Office: 15 Courtenay Chambers, Courtenay place, Wellington. Capital: £12,000 into 6000 preference shares of £1 each and 6000 ordinary shares of £1 each. Subscribers: Wellington —J. IT. Miles 1, P. B. Smith 1, J. H. Mason 1, A. C. Davis 1, J. Fuller 1, Kcmball Theatres, Ltd., 1500, FullerHayward Theatre Corporation, Ltd., 1500. Christchurch—C. M. Ollivier 1. Objects: Business of -motion picture, opera house, theatrical music hall proprietors, and general incidental.

WHEAT TRADING. CARGOES, PARCELS, AND FUTURES. (UXITED PRESS ABBOCIA.TIOH —ET CLSCTBIO TjsusoiiAPK-'CopyaiaHT) {Received March 18th, 5.5 p.m.) LONDON. March 17. Wheat —Cargoes are idle and unchanged. Parcels are inactive, Manitoba's being obtainable at 3sd down. Others are unaltered. Futures aro quoted as follows: —

Per quarter. London — s. d. Juno ... ... 25 8 l&ptcrober ... ... 26 3 Fcr cental. Liverpool— s. d. March ... ... r > May ■ ••• ... & July ... ... 5 October ... ... 5 9 The spot trade is slow. Australian, ex-ship, 29s to 20s. Flour is quiot. Australian, ex-store, 21s Cd to 22s. CHICAGO WHEAT. (Received March 18th, 5.5 p.m.) NEW YORK, March 17. Chicago wheat futures are quoted: — Per busheJ. Cents. March ... ... 54jj May ... ... 57| July ... September ... .. 61J New York, cash, 68i cents. OATS, PEAS, AND BEANS. (Received March 18th, 5.5 p.m.) LONDON, March 17. Oats 'are slow, with easier prices. Peas and beans. —The demand is slow.« Prices are unchanged. PRICE OP GOLD. r (Received March 15th, 5.5 p.m.) LONDON, March 17. Gold (per fine ounce) ia quot.ed as follows:— £ s. a. March 17th . ... 5 14 5 March 16th .. 5 14 0 March 15th - .. 5 16 8 PRICE OF SILVER. (Received March 18th, 5.5 p.m.) LONDON, March 17. Silver (pence per ounce) is quoted as follows: — Mch. 17th. Mch. 16th. ' a. a. Spot , ... 18 181-8 Forward .. 181-16 18i BEET SUGAR. (UNITED PBF.SS ASSOCIATION—BY ' ELECTRIC " TELEGRAPH—COPYRIGHT.) '• Received March 18th, 5.5 p.m.) LONDON. March 11, Bq»6 wgN$ AKft H 34