FINANCE AND COMMERCE

Press, Volume LXXV, Issue 22656, 10 March 1939, Page 13

FINANCE AND COMMERCE

STERLING EXCHANGE LOWER

SYDNEY SHARE MARKET STRONG

The Reserve Bank’s statement of assets and liabilities as at the close of business on March 6 reveals a further fall in sterling exchange, this time by £133,658. The sterling holding now is £4,705,897 in New Zealand currency. Advances from /che Dairy Account have risen by £429,124 to the new record iflt i high level of £7,299,716 and Lie proportion of reserve to notes I and other demand liabilities has contracted to 25J)17 per cent. , An interesting feature of the return is the reappearance of a discount item.

Values on the Sydney Stock Exchange yesterday continued to advance, the market being one of the strongest for months.

RESERVE BANK RETURN

STERLING EXCHANGE LOWER DAIRY ADVANCES AT RECORD LEVEL REAPPEARANCE OP DISCOUNT ITEM The Reserve Bank’s sterling exchange holding has fallen again, this time by £133,658. It stands now at £4,705,897 in New Zealand currency. Advances from the dairy account have risen by £429,124 to the new record high level of £7,299,716, and the proportion of reserve’to notes and other demand liabilities has contracted to 25.017 per cent. The note issue, which rose slightly last week, is smaller again. These has been considerable movement in demand liabilities, those of the State being £1,986,793 higher, at £6,004,720, and those of the banks being lower by a similar amount at £8,560,348. Other demand liabilities have risen by £403,069. An interesting feature of the return is the reappearance of a discount item, the amount this time being £150,000. Advances for purposes other than marketing have fallen by £75,000. The statement, with variations, compared with last week, is as follows: — Change from last week Liabilities .\ £ £ J General reserve’ 1,500,000 Same ij) Bank notes .. 14,810,081 —95,534 13) Demand liabilities — (a) State .. 6,004,720 +1.986,793 (b) Banks .. 8,560,348 —1,907,066 (c) Other .. 484,274 +403.068 (5) Liabilities in currency other than New Zealand .. 37,878 +79 (6) Other liabilities 286,396 +12,075 Total ..31,683,696 + 399,416 Assets (7) Reoerve—2,Bol,79l Same <b) CX ’ 4.705,897 —133,658 (8) Subsidiary coin 204,256 —565 (9) Discounts — Treasury and bills 1 b ° y. 130,000 +150,000 (10) Advances — (1) Primary Products Marpartment .. 7,299,716 + 429,124 (2> purposes 1 12.725.000 -75.000 (11) Investments .. 3 >, B ®l>P 3 ® ~*J|4 (13) Other assets .. 146,008 +29,659 Total .. 31.683.696 +399,416 Proportion of reserve to notes and other demand liabilities. 25.017 per cent. (25.799 last week). The principal items in this week’s return are compared with those at the corresponding date last year in the following table:— (000s’ omitted) 1039. 1038. Variation. £ £ £ Notes .. 14,810 13-.593 +1,217 Deposits— State .. 6,004 8,725 —2,721 Banks .. 8,560 5,382 + 3 >J7J| Exchange .. 4,705 15,617 —40,912 Advances— , , Marketing 7,299 6,177 +1,122 Other .. 12.725 1,800 +11.425 Ratio (per cent,) 25.017 66.010 -r-^41.008 RAILWAY COSTS AND RECEIPTS FIGURES FOR PERIOD OF FOUR WEEKS LOWER NET REVENUE THAN LAST YEAR (raiss association TxpsasAM.) Wellington, March o. The Railway Working Account for the period of four weeks ended February <}, J939, is as follows:—Expen- Net Revenue. d'Avvv: e. Mey euue, Section £ £ £ „ *Kaihu .. 466 1,006 ■ —s4o Gisborne .. 3,887 2,657 330 North Island main line • & branches 462,149 357,554 104,595 South Island main line ." branches 254,025 230,302 14,721 .. 8,493 5,786 2,707 'Nelson .. 1,307 1,606 —299 Picton ~ 4.186 3.376 810 Tl. railway operations 724,511 602.287 122,224 Miscellaneous services .. U5.161 81,639 33.512 Total revenue .. 839,662 683,926 155,736 •Section showing a deficiency. For the period from April 1, 1938, to February 4, 1939, the totals were: — Revenue, £7,497,417: expenditure. £7,288,757; net revenue, £268,660. ; For the corresponding period last year the totals were:—Revenue, £7,095,936; expenditure, £6,667,783; pet revenue, £428,153, BRITISH WAR LOAN ; (aamsa Dwcuf, wfftELßss-) RUGBY. March 8, War Loan. 3i per cept. is quoted •t £9B.

GOLD BALANCES TRADE

AUSTRALIAN EXPORTS TO AMERICA FIGURES FOB FIRST HALF OF YEAR The importance of Australia’s gold Industry is revealed in the fact that gold exports from the Commonwealth to the United States during the first half of the current financial year 11938-39) brought about an almost even balance ot trade. Cold exports of the Commonwealth to the United- States from July 1 to December 31 were valued at £7,513,000, Australian currency, against £4,356,000 during the same period of 1937. The total value of all imports from America up to December 31 was £9,627,000, while the value of exports, including gold, was £9,061,000. Figures for the corresponding period of the preceding year were:—lmports, £11,323,822; exports, including gold. £6,750,726. The improvement in Australia’s

trade position with America is due wholly to the extra gold exports, states the ‘‘Sydney Morning Herald.” Her commodity exports to the United States for the first six months of the current year were valued at only £1,548,000, compared with i £2,394,819 for the corresponding period of 1937, Australian imports from America, on the other hand, consist wholly of commodities, so that the commodity balance continues heavily against the Commonwealth.

During the half-year to December 31, total export of gold to all countries was of the value of £9,299,000. 'The great preponderance to the United States was due to a better price being generally obtained for export than elsewhere.