RESERVE BANK RETURN

Press, Volume LXXVI, Issue 22910, 5 January 1940, Page 9

RESERVE BANK RETURN

DECLINE IN STERLING EXCHANGE

ADVANCES TO STATE NOW £20,000,000

A substantial decline in the sterling exchange holding, a decrease in the reserve proportion, and ah increase in advances to the State are the main movements in. the Reserve Bank return for the period ended January 1. The main changes on the assets side since last week are decreases of £255,782 in demand liabilities to the State, and £211,044 in demand liabiUY ties to the banks. Notes are down by £108,037. Sterling exchange is £1,680,985 less at £7,036,750. Advances to the Marketing Department are less by £5981, but those to the Government for other purposes are higher by £955,000, and now stand at £20,230,000. Invest-, ments have risen by £199,971. The reserve proportion has fallen from 32.20 per cent, to 27.947. . The statement, with the movement from last week's, is as follows: Liabilities Change ' from last week. s. e, (1) General reserve 1,500,000 Same (2) Bank notes .. 19,184,088 —108,037 (3) Demand liabilities— •.'■.. (a) State .. 2.604,130 —255,782 (b) Banks ...13,334,404 —211,044 (c) Other .. 35.784 +7,434 (4) Time deposits .. Nil. ' Same (5) Liabilities in currencies other than Ne\fr Zealand .. 12.625 —2,986 (6) Other liabilities .. 713,797- -68,060 Totals .. 37,384,829 —638,476 Assets (7) Reserve—(a) Gold .. 2,801,839 Same (b) Sterling exchange .. 7,036,750—1,680,985 (c) Gold exchange .. Nil. Same (8) Subsidiary coin .. 156,051 +6lB (9) Discounts—> (a) Commercial and agriculi tural bills .. Nil. : Same (b) Treasury & local body *». bills .. Nil. Same (10) Advances — (a) To the State or . . < ■■ State undertakings: • (1) Marketing dept. .. 3,375,019 —5,981 (2) Other purposes .. 20,230,000 +955,000 (b) To other public authorities .. Nil. Same (c) Other ~. .. Nil. Same (11) Investments .. 3,558,038 +199,971 (12) Bank buildings Nil. Same (13) Other assets .. 227,131 —107,100 Totals .. 37,384,829 —638,476 Proportion of reserve (No. 7 less No. 5) to notes and other demand liabilities, 27.947 per cent. (32.20 per cent, last week). MEAT SCHEDULE INCREASED RISE OF 1-8 D PER LB ALL ROUND LONGER WOOL ON SKINS ;., An increase of .id per lb on Jambs, ewes, and wethers for killing at Canterbury works came into operation on January 1. The North Island schedules have also been raised by a simi- 1 lar amount, but it was not expected that the increase would operate in the South Island yet. The rise is a compensation for the heavier growth of wool on the skins. Until it is known what pelts, slipe wool, and some other by-products will be worth, the freezing companies will not be able to say whether further increases will operate later in' the season. The new schedule for two's lambs is B§d per lb. SYDNEY STOCK EXCHANGE Industrial shares remained firm on the share market yesterday, but> buying was again selective.

LONDON METALS MARKET LONDON, January 3. Silver is quoted at 21fd an ounce standard and 23 5-16 d fine; spot tin, £246 10s»to £246 15s; forward, £24& 15s to £246 ss. Other metals are unchanged. TIN STOCKS LONDON, January 3. World visible supplies of tin are 25,020 tons, and the Straits carry-over 6394 tons. Supplies were 13,057 tons and deliveries 16,356 tons. LONDON SHORT TERM MONEY MARKET LONDON, January 3. ' London discount and short loan interest rates are* —Day to day loans, 3 per cent.; fine trade bills, three months, 2j to 3 per cent.; bank bills, three months 1 3-16 per cent., six months If per cent.; Treasury bills, two months li per cent., three months li per cent. DUNEDIN TOMATO PRICES* After starting dully, the tomato market in Dunedin yesterday firmed and finished with firsts at lOd to Is Id per lb. Cucumbers brought to 15s 6d a case, . . ~ _ _,

Morning Sales. Bank of New South Wales .. 27 2 o" Tooths 2 14 3 Tooheys 1 9 n Associated Newspapers . .. 0 15 9 Broken Hill Pty. .. 4 1 9 Colonial Sugar SO 0 0 Dunlop Perdriau .. 0 18 9 Electrolytic Zinc .. 3 1 0 Felt and Textiles 1 16 6 Afternoon Sales Comm. Banking of Sydney 18 110 Union Bank ; ... . ... ., 6 12 6 Colonial Sugar 1 • ■.. '■ .. 2 10 0 Associated Newspapers 0 15 9 British Tobacco • .. . .. 2 10 0 Wodlworths .. .... ; 1 2 0 Aust. .Iron and Steel (pref.) .. 1 7 0 . David Jones .'. ' j : ; .. ' .. 1 14 0 Adams ■■. .. .* ■•'. 0 14 0 Cash Orders :. .. .. 0 15 6 Standard Cement .. 10 3 Mount Morgan' -.. ■•" .. 0 8 8 Zinc Corporation .^ 4 5 0 Broken Hill Pty. ;..■.- 4 1 6 Broken Hill Pty (new consolid.) 1 2 7. Broken Hill North 2 80 Broken Hill South .. 1 8 9 MELBOURNE Consolidated industries "' ■ £ s, 1 19 d. . 4 G. J. Coles .. .. •:''..' 3 13 9 Woolworths ., .. 1 2 1 Howard Smith i. 1 3 6 Carlton Brewery .. .. .35 9 Dunlop : Perdriau .. ;. 0 18 7 Mount Lyell '.. .. i .. 1 10 0 Emperor , .. .. 0 13 10 I Loloma ; ' .. • ..' .. 11 9 1