RESERVE BANK

Press, Volume LXXV, Issue 22768, 21 July 1939, Page 13

RESERVE BANK

STERLING SLIGHTLY HIGHER ' ‘ i INCREASE IN TOTAL ADVANCES FURTHER SMALL ADDITION TO INVESTMENTS The Reserve Bank return this week shows a very small rise in the sterling exchange holding. From . last Week, sterling has risen by £32,-278 tb £8,589,075 in New Zealand currency. » Although the note issue has again contracted slightly, it is still nearly £2,000,000 above the level of a year ago. ' State deposits have fallen by £112,806, and those of the trading hanks have increased by £679,213. Total advances have risen by nearly £500,000. Those for marketing are down by £264,574, but those for other State purposes have risen by £745,000 to £11,300,000. Investments have been increased to £6865. The proportion of reserve to notes and other demand liabilities is fractionally lower at 80.879 per cent. The return, with variations compared with last week, ds as follows:

MINING MOUNT LYELL INCREASE IN TONNAGE Production of cathode copper by Mount Lyell Mining and Railway Company, Ltd., Tasmania, in the nine months ended June 30, shows an increase of 436 tons on that for the first nine months of the 1937-38 financial year. .* . , . , Ore treated in the period increased by more than 80.000 tons, compared with that for the corresponding three quarters of the preceding year, and the copper content of the blister produced was greater, by 647 tons. There was a fall of 44040z in the silver content Of the blister, but the gold content was greater by 3250z. The increase in the tonnage of ore treated by the company has checked the decline in copper production due to lower-grade ore.

RIMU The return of the Rimu dredge this week, was 190oz 13dwts from 41,190 yards dredged in 124 hours. ALEXANDER Alexander mine, report for the week ended July 13 is:— No. 6 level: Stoping has been continued on the north end of the quartz above this level. The position of the reef shows considerable faulting. Reef continues to lay fairly flat. No.'S intermediate: A crosscut was driven into the eastern wall 19 feet to'connect with the rise from No. 6 level. The country was fairly wet and broken. .. No. 5 intermediate drive north: This drive advanced 16 feet, making a total of 256 feet north of winze. The advance was made on reef track carrying a fair amount of water, with a few quartz leaders. Stoping has been in operation north and south of winze. The average width of all faces worked was 4ft 9in. During the period 120 tons were transported to the battery.

SYLVIA Sylvia Gold, Silver, and Base Metal Mines report:— All preliminary work in preparation for the sinking of the shaft having been completed, excavation of chamber and shaft is now under way. The shaft will be sunk eight feet to permit the collar and leading sets being placed in position, and the excavation of the chamber will then be proceeded with, the necessary timbers for overhead gear being built up from the collar set, thus limiting as far as possible the amount of excavation required for the chamber. A larger ventilation fan with 9in delivery has been installed, which is giving every satisfaction in efficient Ventilation. The power plant and drills are working smoothly.

SHORT LOANS BILLS LONDON INTEREST RATES LONDON, July 19. London discount and short loan interest rates are:— Day to day,loans, J per cent.; fine trade bills, three months, 3 to 3i per cent,; bank bills, three months, 13-16 per cent,; bank bills, six months. U per cent; Treasury bills, two months, 3 per cent.; Treasury bills, three months, 13-16 per cent.

Liabilities Change from last week £ £ (1) General reserve l.Soo.ooo Same (2) Bank notes .. 15,451,127 —18,996 (3) Demand —112,305 (b) Banks .. 10,288,069 (c) Other .. 198,420 + 679,213 —13,385 (4) Time deposits .. — Same (5) Liabilities in cur--rency other than New Zealand .. 09<614 (6) Other liabilities 396,934 —24,934 + 14,277 Total • » 29,328t570 +523,870 Assets (7) Rese”ve-‘ d 2.801.839 Same +39.273 (c) Gold exchange .. ~ ... (8) Subsidiary coin ,. 228,939 Seme —2,696 (9) Discounts— ta) Commercial and ogrlculSame tural bills — (b) Treasury & local body Same bills .. ~ (10) Advances— (a) To the State or State undertakings: (1) Primary Products Markcting De—264,574 partment .. 5,405,348 (2) For other + 745,000 purposes .. 11,300,000 (b) To other public Same authorities .. — (c) Other .. ■ — Same (li) Investments .. 3,790,026 + 6,865 (12) Bank buildings — Same (13) Other assets .. 222,349 + 16,906 Total .. 29,328,576 + 623,870 'Prooortlon of reserve (No. 7 less No. S) to notes and other demand liabilities, 30.379 per cent, (last week 30.805). The ’ principal Items In this week’s return compared with those at the corresponding date last year are:— (000's omitted) Variation. 1939. 1938. 6 £ E Notes • • 18,451 13,563 + 1,078 Deposits— —2,284 State .. 1,426 3.710 Banks •• 10,286 7,775 + 2,511 .Exchange • .. 5,589 15,105 0,516 Advances— + 1,240 Marketing .. 5,405 4,165 Other .. 11.300 1.900 Ratio (per cent.) 30.379 70.67 +9,400 —40.191