RESERVE BANK

Dominion, Volume 31, Issue 105, 28 January 1938, Page 14

RESERVE BANK

Increase In Sterling Exchange NOTE ISSUE LOWER i The weekly statement of assets and liabilities of the Reserve Bank of New Zealand, as at the close of business on Monday, January 24, is as follows:— LIABILITIES.

Proportion of reserve (No. 7 less Nn 5) to notes and other clemiind liabilities 70.789 per- cent., compared with 09.963 per cent, on January 17. The note issue continues at a lugu level, despite the natural decrease since the high point of Christmas. Since January 17 the note issue has decreased bv £236,546, and now stands at £14.295,959, which is £1,227,56 ( above the figure for January 25, 1937. . State deposits show a decrease ol £l7 420, the total now being £3,02-2,630. The trading banks’ reserve balances total £10,308,066. an increase ol £6bl,o-..-. Other demand liabilities stand at£G4ls4l a decrease of £9036. Other liabilities at £193,175 show an increase ° f London funds show a further increase of £526,057, the sterling exchange to.al nU.landing at mains unchanged at £-,801,191. Buo sidiary coin totals £218,393, an increase ° £ Advances to the Primary Relucts Marketing Department total £6,093,308, i decreas? of £127,835. Advances to the State for other -pur.poi s eland unchanged remain u “f go 4 oi t £2,058,325. Other assets total toV, L>-» an’ increase of £20,950. P onq«i jqr The statement balances at £-J,J61,4d0, an increase of £-119,711. . FRESH CAPITAL Australian Industries Expand Within the last three years Australian secondary industries have absorbed an additional capital investment of £14,610,000, according to a summary issued by the Federal Minister of Iradc and Customs, the Hon. T. W. White, further expansion is already contemplated, and legislative authority will also be invoked by several State concerns to increase their borrowing capacity. The Broken Hill Proprietary has ltd the way, its most recent step being the establishment of a blast-furnace at Whyalla (South Australia), close to the enormous iron deposits there. Imperial Chemical Industries (Australia) is erecting factories at Deer Park and Yarraville. The new alkali plant at 1 ort Adelaide, involving a capital of £1,000,060, is also one of its activities. Included in new industries established within the last year are the Shale Oil Scheme at Newnes (New South Wales), with a capital of more than £600,000, and a ham canning factory at 'Sydney, which started in May and now cans about 2000 hams a week. Last year, Mr. White stated in Parliament that, as the result of the Government’s trade diversion policy, introduced 12 months ago, new’ capital of £3,032,000 had been or would be invested in Australian secondary industries Authority to increase the borrowing powers of the State Electricity Commission up to £10,500,000 for the Kieawa Valley hydro-electric undertaking and another generating station at Newport will be sought in the Stale Electricity Commission (Financial) Bill), to be Introduced in the Legislative Assembly s-oon. The Bill is complementary to the S.E.C. (Extension of Undertaking) Bill, which has already been explained Io Parliament, and confers authority on the commission to proceed xvith the 14-year task of harnessing the Kieawa River. The borrowing authority sought will be of the dual nature possessed by the Grain Elevators Board, which lias power to raise money on its own initiative or through the 'State Treasury. RECORD TOBACCO PROFIT Earnings Of Carreras Record net profit of £1,351,596 was earned by Carreras Ltd., tobacco manufacturers, who directly control Carreras Ltd. (Melbourne), in the year ended i (ctober 31. With the unchanged interim dividend of 15 per cent., less tax, the total ordinary distribution for the year is 35 per cent., less tax. This is equivalent on the capital before the bonus issue to 49 per cent, and compares with 45 per cent, paid for 1935-36. The profit of £1,351,596 is the highest recorded in the history of the company, and is £66,442 above the peak of £1,285,154 earned in 1928-29. Provisions for income tax and N.D.C. (profits tax) requires £124,212, or £53,546 more. Employees’ superannuation fund receives £7747 (against £7324), and preference dividends take £65,000. The allocation to contingencies fund is again £50,000 and £15,000 (against £10,000) is put to the female staff pensions fund. After crediting £808,847 brought in there remains £1,026,671 to be carried forward, an bicrease of £217.824. Money Market Rates London, January 26. - The Bank of England rate of dscount is 2 per cent., to which it wms reduced from 2i per cent, on June 30, 1932. Discount and short-loan interest rates are quoted as follows: —Day-to-day loans, 4 per cent.; fine trade bills, three months, 2 to 21 per cent.; bank bills, three months, 9-16 per cent.; six months, 9-16 per cent.; Treasury bills, two months, 1 per cent.; three months, 4 per cent.

New York, January 29. Call money is quoted unchanged at 1. ■per cent.

£ s. d. l. General Kes. ITund 1.506,000 0 0 Bank-notes _ .•_••• Demand liabilities— 1 -1,295.959 V 0 3,022,696 10,308,065 1 8 (b) Banks .... 11 0 (c) Other 611,541 (» 0 1. Time deposits ... — Liabilities in currencies other than New Zealand curOther liabilities . . 6. .1 'Jo, 17 o 8 1 £29,961,437 13 3 - 9 ASSET!: Reserve— .£ s. d. 2,801,791 0 0 (b) Sterling exchange .... 1.7,209,189 1 1 (e) Gold exchange — 12 8. 0. Subsidiary coin . . Discounts — (a) Commercial & 218,392 agricultural (b) Treasury and local-body bills — 10. Advances — (a) To the State or State undertakings— r (1) Primary Products Marketing Department 6,093,308 8 4 (2) For other 900,000 purposes) 0 0 (b) To other publie authorities 11. (cj Other a Investments .... 2,658,325 0 0 12. 13. Bank buildings . . Other assets 80,431 11 2 £29,961,437 13 3