THE MONEY MARKET.

New Zealand Herald, Volume LXVIII, Issue 20762, 3 January 1931, Page 5

THE MONEY MARKET.

BANK OF ENGLAND RETURN. GOLD RESERVE LOWER. MARKET RATE REDUCED. (Received January 2, 5.5 p.m.) LONDON, Jan. 1. Ihe Bank of England return for tho week onded December 31 is &s follows: ISSUE DEPARTMENT. Notes issued:— Govt, debt £11,015,100 In circu- Other Govt. lation i3C8.801.565 securities 233,138,442 In bank- Other sealing dept. 38,824,056 ritios .. 11,477,042 Silver coin 4,3G9,41G *.£260,000,000 Gold coin & bullion 147,025,G21 £407.625,021 -£407,G25,621 •Amount of fiduciary issue. BANKING DEPARTMENT. Capital .. £14,553,000 Govt, secuResit .. 3,400,255 rities .. £81,021,217 Deposits— Advances, Public .. G,550,599 £48,902.458 Bankers, Other 5ecu£132,449,330 ritioa, Other acs„ £23,090,166 72,652,624 £36,159,228 168,608.558 Notes .. 38,824,056 Seven day, Gold and etc., bills 1,26-1 silver coin 645,749 £193,143,676 £193,143,670 The principal items of the above return compare as follow with those for last week, the proportion of the reserve being shown in the last line:— December 24. December 31. Deposits— Public .. .. £10.284.679 £6,580,599 Bankers .. .. 56,217,220 132.449,330 Other accounts .. 33,683,363 36,159,228 £100,190,28S £175,189.157 SecuritiesGovernment .. 51,736,247 81,021,247 Advances, etc .. 14,199,048 48,962,458 Other .. .. 23.01-1,305 23,690.166 Reserve .. .. 29,144,563 39,469,805 Note circulation .. 379.676,869 368,801,565 '.Coin and bullion 148,821,432 148,271,370 Proportion . .. 29.00 22.50 "December 28, 1929, £146,027,587. _ 1930: Maximum, May 7, £164,502,391; minimum, January 1, £146,115,719. SHORT LOANS AiVO BILLS. The Bank of England rate of: discount is 3 per cent., to which it was reduced on May 1 from 3A per cent. Short loans are quoted at 2j per cent., compared with 11 per cent., last week. The market rate of discount for hest three months' bills is 2 9-32 per cent., as compared with 2 5-16 per cent, last week. FOREIGN EXCHANGES. The following rates on foreign exchanges are current to-day, compared with the cabled quotations on December

AUSTRALIAN WHEAT.

CHAOS IN EXPORT TRADE. FEW SHIPS CHARTERED. SYDNEY. Jan. 2. Only five or six vessels have, been chartered to load the new season's wheat crop in New South Wales, as compared with 20 or 30 which in normal times would have been engaged. Chaos exists in the wheat export business. Shippers assort that because of uncertainty regarding their responsibility under the Wheat, Advances Act they are making no attempt to engage now full cargo space, while numbers of parcel bookings have been cancelled. Although it is estimated that the exportable surplus in the Commonwealth will amount to about, 4,000,000 tons, the bookings to date amount to about 650,000 tons only.

TARANAKI IRONSAND

PLANT AWAITING SHIPMENT. [BY TELEGRAPH. —OWN CORRESPONDENT.] NEW PLYMOUTH, Friday. Advice that an up-to-date plant for the manufacture of steel from irorisand deposits on the North Taranaki beaches is at San Francisco awaiting shipment to New Flymouth has been received by Mr. C. M. Burley, who recently returned to New Zealand from the United States. The plant has produced small quantities of steel from sand from the Monterey Beach, California. Those interested are only awaiting tho completing of arrangements with the New Plymouth Harbour Board before shipping tho plant, and if these negotiations are completed in reasonable time the promoters of the scheme intend to have the machinery erected and producing by next Christmas. A very hard alloy has been made from Monterey stool, and the samo measuie of success is hoped for with steel made from Taranaki ironsand.

JAPAN'S COTTON TRADE

EXPANSION OF MARKETS. " Far Eastern markets will in the 'future bo dominated more and moro by the cotton toxtilo production of Far Eastern countries. American and Euroi>ean mills are likely to find competition from them even more severe than in the past. Japan's cotton toxtilo industry is the most financially sound and progressive industry in that country to-day." Such are tho conclusions reached by Mr. Charles Iv. Moser, chief of the Far Eastern section of the United Statos Department of Commerce, as the result of investigations made into the Far Eastern toxtilo markets. These conclusions agree largely with those reached by Mr. T. M. Ainscough in his recent report on India. " Generally speaking," says Mr. Ainscough, "tho Indian groy trade is lost to Lancashire, primarily owing to the competition of the Indian mills, and, secondly, owing to Japanese competition." Dealing with the respective export position of America and Japan, Mr; Moscr says that during the first eight months of this year United States exports of cotton textiles amounted to 289,793,937 square yards, a decline of 28.7 per cent, ori the yardage exported in the corresponding period of last year. By comparison, Japan's exports of cotton fabrics amounted to 815.644,0(10 square yards in tho first half of this ycur.

7,0 and par:— Par. Jan. 1. Dec. 30. Montreal, dol. _ 4.86 7-16 4.866 New York, <lol. . 4.854 4.85 9-16 4.866 Paris, fr. 123.645 123.625 124.21 Brussels, belRfi .. 31.765 31.765 35.00 Geneva, fr. 25.045 25.045 25.22 Amsterdam, fl. .. 12.06 12.06 12.10 Rome, lirn, 02.725 02.765 92.46 Berlin, r.m. 20.355 20.38J 20.43 Stockholm, kr. .. 18.13 18.115 18.159 Oslo, kr. 18.16 18.153 18.159 Copenhagen, kr. . 18.165 18.16} 18.159 Vienna, sch. 34.'175 34.495 34.585 Prague, kr. 163 J 163} 24.02 Helsinsfors, mark 193 193 192 23 Madrid, pes. 46.20 4R.40 25.225 Lisbon, esc.u. 109.25 108.25 — Athens, dr. 375 375 375.00 Bucharest, lei. .. 818 81S 25.225 Tlio de Janeiro, mil. 4 D-1G 41 — Buenos Aires, dol. 35 J 35 47.57d Montevideo, dol. 35} 35} 47.57d Calcutta, rupee . 173 17 25-32 18d Shanghai, tael .. 165 17 — Honekons, dollar 13 13} 24.5?d Yokohama, yen . 24 i 1} 17-32 Batavie., fl. — 12.065 12.10