N.Z.’S VOLUME OF MONEY

Press, Volume XCI, Issue 27679, 8 June 1955, Page 17

N.Z.’S VOLUME OF MONEY

PEAK REACHED AT END OF MARCH

With a sharp increase in bank credit more than offsetting a heavy fall in net overseas assets, the volume of money in circulation in New Zealand expanded by £14,700,000 in the 1954-55 financial year te rea S h a peak °t £345,700,000 on March 30. The previous record of £331,000,000 was reached exactly a year earlier. The latest available statistics show that bank credit—the advances, discounts, and investments in New Zealand of the trading banks and the Reserve Bank—expanded by £58,000,000 to £307,400,000 during /1954-55. Advances and discounts accounted for all of the rise, aggregate investments actually showing a small decline.

Advances and discounts of the trading banks rose sharply by £39,800,000 to £ 189,300,000, while those of the Reserve Bank, in a reflection of short-term loans to producer boards to finance exports, expanded by £18,500,000 to £81,900,000. The trading banks* investments contracted by £400,000 to £25,900,000, and those of the Reserve Bank were £lOO,OOO higher at £10,300,000.

Partly offseting the wide expahsion in bank credit, net overseas assets of the New Zealand banking system declined by £34,900,000 to £94,100,000 during 1954-55. The greater part of this decline was due to changes in the methods of financing meat and dairy exports following the change-over to free marketing, and the remainder to the higher level of imports. Other causes of changes in the volume of money, including the shift from demand to time liabilities at the trading banks and other items, together accounted for a reduction of £8,400,000. All the . components comprising the volume of money, increased during the 1954-55 year. Coin and notes in circulation together rose by £3,600,000 to £65,000,000, anf demand deposits at the trading banks end Reserve Bank expanded by £11,100,000 to £280,700,000. Comparisons of the components are:— Varia-

In the 1953-54 financial year, the volume of money recorded a sharp expansion of £57,800,000.

STOCK SALES TEMUKA "The Press” Special Service TIM AHU, .June 7. Fat cows made up the bulk of the short yarding of fat cattle offered at Temuka stock sale today, and although the sale was not very animted, values held late rates. Store cattle were difficult to dispose of. Two races of fat sheep and 1700 fat lambs met a keen inquiry from butchers and exporters, with values for prime heavy wethers appreciating fully 8s a head. There was a keen inquiry for the store sheep offered, made up for the most part of tail-end lots. Values were:— Fat Cattle.—Fat steers, medium, £33 to £36 12s; light, £26 2s 6d to £32 17s 6d. Fat heifers, medium £27 to £3O 12s 6d; light,’ £22 7s 6d to £26 17s 6d. Fat cows, good, £2O to £26 12s 6d; medium, £l5 to £l9 17s 6d; light, £lO 2s 6d to £l4. Store Cattle.—Calves, £lO to £l2; rising twto-year Jersey cross heifers, £9 10s; three-year-old steers, £l9 to £22; run cows, in calf, £l2 to £l4 15s. Fat Sheep and Lambs. Fat lambs: good, 69s to 745; medium, 64s to 68s lOd; light, 52s to 625. Fat wethers, good, 92s to 100 s; medium, 84s to 91s; light, 75s to 83s. Fat ewes, good, 36s to 425; medium, 30s to 355; light, 24s to 295. Store Sheep.—Ewe lambs, 37s to 82s; wether lambs, 36s to 525; rape ewes, 15s to 235; full-mouth ewes to 60s.

ASHBURTON There was a steady sale at Ashburton yesterday, with prices on a par ■with last week, but only medium yardings of fat and store sheep. Medium fat wethers sold for up to 70s, with prime quality bringing from! 72s to 795, and extra prime quality maldng up to 85s. Maiden ewes brought up to 69s Id. Medium fat ewes sold for up to 345, with prime quality selling from 35s to 40s, and extra good making up to 445. In the store section 241 wethers made from 50s 6d to 60s 6d, 68 wether lambs brought 475, 79 wether hoggets sold for 595, and 16 two-tooth wethers made 70s. Seventy-eight ewe lambs sold for 695, 65 shorn hoggets made 68s, and 100 ewe hoggets sold for 775. MINING

Clutha Gold.—During the quarter ended March 31, 1955, the dredge worked 1575 hours and produced 1847 ounces of gold.— (P.A.)

End March. 1954. 1953. tion. dBm. £m. £m. Coin (estimated) 4.1 4.3 +0.2 Notes held by public Demand deposits: 57’3 60.7 +3.4 Trading banks 231.8 236.1 +4.3 Reserve Bank 37.8 44.6 4-68 Totals 331.0 345.7 +14.7