THE MONEY MARKET

Dominion, Volume 30, Issue 261, 31 July 1937, Page 14

THE MONEY MARKET

Bank of England Return ! RECORD NOTE CIRCULATION IxHHiou, July 29. □'ho Bank of Euglau-d return for the week ended July 28. is as follows:— I.sue Department.

Bank and Market Rates. The Bank of England rate of discount is 2 per cent., to which it was reduced from 2} per cent, on June 30, 1932. Discount and short-loan interest rates are unchanged as follows:—Day-to-day loans, 4 per cent.: tine trade bills, three months'; 2 to 2} per cent.; bank bills, three months, 9-16 per cent.; Treasury bills, six months, 5-8 per cent.; Treasury bills, three months, I per cent. New York, July 28. Call money is quoted unchanged at 1 per cent. FOREIGN EXCHANGES Position of Sterling London, July 29. The following mean closing rates on foreign exchanges were current to-day compared with those ruling on July 28:—

* Unofficial, f Official.

London, J uly 29. Gold.—£6/19/9} an ounce, fine. Silver.—Spot, 20 l-16d. an ounce; forward. 20 l-16d. On New Zealand Currency Basis The Bank of New South Wales, Wellington, quoted the following rates for their purchases and sales of foreign exchange yesterday:— New Zealand Buying. Selling.

Tite Associated Banks (other titan tlie Bank of Now South Wales), quoted the fol lowing dollar rates yesterday on a New Zealand currency basis. They are subject to alteration without notice.

BUSINESS INCREASING Progress of M.K. Millinery, Ltd. ■ At a meeting of directors of the M.K. Millinery, Ltd., held at the company’s head office, Auckland, on July 28. it was decided fo declare tin interim dividend of 10 per cent., payable on August 12. in the course of the report, the directors pointed out that in their opinion they were more than justified in declaring this rate in view of the considerable advancement in this first six months of 1937 trailing period. Contrary to present expressions of opinion that the sudden increase in costs brought about by legislation must be passed on in the price of goods, the directors of this company decided to reduce their prices corresponding to the same period in 1936. They realised, of course, that this meant increased volume of business being essential. To ensure this being brought about, they confirmed the policy of increasing wages over and above the rate determined by legislation. The result was that the company's sales for the six months in question increased by 39.4 per cent., and its profits by a much larger percentage. For the coming six months, which was the bewt trading period with this particular class of business, the directors reported that they had every confidence that this rate of increase in business should be held. Failing any major setback outside their control, they held J great hopes for the company’s future.

Other Commercial News will l»

Nuten issued: Govt, debt .ll.OOb.lHUf lu clrcu- Other Govt, latlon 498,300,(Wil securities 18a.lOO,<WO In bank- Other Being dept. 28,100,000 curlties 3,900,000 *£200.000,000. Gold coin & bullion 320,400,0(10 £520,400,000 £526,400,000 'Amount of fiduciary issue. Banking Department. £ £ Capital ... 14,500,000 Govt, seeuRest 3,600,000 rifles ... 114,400,000 Deposits: Discts., adPublic ... 10,500,000 vanees ... 5,800,000 Bankers 104,300,000 Other secuOther a/es 37,300.000 Titles ... 20,800,000 Notes and eoin ... 29,200,000 £ 170.200.000 £ 170,200.000 Prupurtion of reserve to liabilities, 19.18 per cent., compared with 22.40 per cent, last week. The principal items of the above return compare as follows with those of last week: — July 21. July 28Deposits: £ £ Public 17,500,000 10,500,000 Bankers 97,200,000 104,300,000 Other accounts . 38,200,000 37,300,000 £ 152,900,000 £ 152,100,000 Securities: Govern mem. .... 107.400,000 114,400,000 Discts, advances . 5,800,OCX) 5,800,000 Other securities . 23,400,000 20,800,0*0 Reserve 34,300,000 29,200,000 Note circulation .. 493,100,000 498,300,000 Gold coin & bullion 326,400,000 326,400,000

Par. J uly 28. J uly 29. N. York, clol. to £ 4.80(1 4.97 9-10 4.97? Montreal dol. to £ 4.800 — 4.97? Paris, fr. to £ 124.21 132 53-64 132 53-64 Brussels, be]. to . -w' 48.611 29.545 29.565 Geneva, fr. to £ 25.225 21.68 21.67? Amst’dam, fl. to £ 12.107 9.03? 9.02? Berlin, inks, to £ 24.43 12.36? .12.36? St’holm, knr. to' £ 18.159 19.395 19.395 C’hagen, knr. to £ 18.159 22.40 22.40 Oslo, knr. to £ 18.159 19.90 19.90 26.50 Vienna, schgs. to £ 34.585 26.50 Prague, knr. to c* 134.25 142.75 142.625 Ilel'fors, inks, to £ 193.23 226.125 226.125 Madrid, pes. to £ 25.225 — —• Lisbon, esc. to £ 100 110 3-16 110 3-16 Milan, Uro to £ 92 94 9-16 94 9-16 Athens, drac. to £ 375 *547? *5174 Bucharest, lei to £ 813.60 ’670 *670 Belgrade, din. to £ 276.31 216.50 216 Rio de J., p. to mH. 4.899 f4* t4| B. Aires, p. to pesa 47.02 — — M. Video, p. to peso 51 f39j 39? Calcutta, p. to rup. 18 IS? 18i Shanghai, p. to dol. 18 14.25 14.25 H.-Kong, p. to dol. 14 23-32 14 21-32 Y’hama, p. to yen. 24.582 13 31-32 13-31-32 Batavia. 11. to £ 12.107 9.00 8.995

on London T.T 124 124/10/£N.Z. to £stg. 100 O.D. 123/10/- 124/8/9 Australia T.T. 101 100/10/ £A to £N.Z. 100 O.D. Fiji T.T. £11' to £N.Z. 100 O.D. New York T.T. 4.0263 3.9893 Doi. to £N.Z. .. O.D. 4.0363 3.9933 Montreal T.T. 4.0205 3.9916 Doi. to £N.Z. . O.D. 4.0390 3.9956 Austria T.T. — 20.88 Seligs, to £N.Z. O.D. — 20.89 Belgium T.T. — 23.013 Bel. to £N.Z. . O.D. — 23.624 Czechoslovakia .. T.T. 113.66 Cr.s. to £N.B. . O.D. 113.71 Denmark T.T. 18.203 17.893 Kr. to £N.Z. . O.D. 18.263 17.899 T.T. 105.90 ltrs, to £N.Z. . O.D. — 105.94 Germany T.T. — 9.802 Mks. to £N.Z. a O.D. 9.8(57 Holland T.T. — 7.201 FIs. to £N.Z. .. O.D. — 7.208 Jtalv T.T. — 75.84 Lire to £N.Z. .. O.D. — 75.89 Java T.T. — 7.1S2 FIs. to £N.B. ■ 0 1 >. 7.186 Norway T.T. 16.182 15.892 Kr. to £N.Z. . O.D. 16.212 15.898 Sweden T.T. 15.786 15.491 Kr. to £N.Z. .. O. It. 15.846 15.497 Switzerland .... T.T. — 17.325 Frs. to £N.Z. ■■ O.D. — 17.330 Noumea T.T. — 105.15 Frs. to £N.Z. . O.D. 105.19 Papeete T.T. 105.10 Frs. to £N.Z. O.D. — 105.14 Hong-Kong .... T.T. 17 61-04 IS 25-64 N.Z. d. to Doi. . O.D. 17 59-64 18 25-64 India and Ceylon T.T. N.Z. d. to HupO.D. 2211-32 22 21-32 Japan T.T. — 1715-32 N.Z. d. to Yen . O.D. — 1715-32 Shanghai T.T. 17 27-32 17 55-64 N.Z. d. to Doi. . O.D. 17 25-04 17 55-04 Singapore T.T. 34 23-32 35 13-64 N.Z. d. to Doi. O.D. 345 3513-64 Chefoo T.T. 17 13-32 18 1-32 N.Z. d. to Doi. . O.D. 17 23-61 IS 1-64 Manila T.T. 29 27-32 3011-32 N.Z. d. to Peso O. D. 20.1 3011-32

U.S.A. Doi. Canadian Doi. Selling: (Per SI N.Z.) (Per SI N.Z.> T.T. 3.99 3.99 3-16 O.D. 3.99? 3.99? Buying: O.D. 4.03? ■1.03 15-16