THE MONEY MARKET.

New Zealand Herald, Volume LXVIII, Issue 20880, 23 May 1931, Page 7

THE MONEY MARKET.

BANK OF ENGLAND RETURN. GOLD RESERVE HIGHER. MARKET RATE REDUCED. (Received May 22, 5.5 p.m.) LONDON, May 21. The Bank of England return for the week ended May 20 is as follows— ISSUE DEPARTMENT. Notes issued:- Govt, debt £11,015,100 In circu- Other Govt. latioii £351,540,81>0 securities 2J1.120.5J5 In bank- Other sculling dept. 58,01)2.520 cities .. 13,774,918 Silver coin '1,089,407 *.£200,000,000 Gold coin & bullion 150,173,380 'Amount of fiduciary issue. BA N KIX G DE P A RTM EXT. Capital ■ £14.553,000 Govt, secuHexl .. 3.20G.591 ritiea .. £31,879,081 Deposits— Advances, • Public .. 11,900,095 £5,950,300 Bankers. Other 5ccu£50,033,510 rities. Other acs., £'25.889,595 .11,845,893 £34,025,853 90,059,309 Notes • .. 58,032,520 Seven day, G°ld and etc., bills 5,350 silver coin 1,032,300 £123,390,405 £123,390,405 The principal itoms of tho above return compare as follows with those for last week, the proportion of tho reserve being shown in the last line— May 13. May 20. DepositsPublic .. £10,323,031 £14,000,095 Bankers . . (V 2.198.812 50.033,510 Other accounts . 33,905,807 34.025,853 £100,488,310 £105,025,404 Securities—(lovarnment .. 35,004,084 31,879,08-1 ►Advances, etc. . 0,302,032 5,950,300 Other . . 25,343,417 25,889,595 Reserve . . . . 50,870,001 59,004,820 Nolo circulation . . 353,127,220 351.540.800 'Coin and bullion 150,003,821 151,205,080 • Proportion . 53.40 50.40 'May 21, 1930. £158,443,549. 1031: Maximum, May 20. £151,205,080; minimum, January 28, £140,151.230. SHORT LOANS AND BILLS. The Bank of England rate of discount is 2£ per cent., to which it was reduced on May 14 from 3 per cent. Short loans are quoted at 1J per cent., compared with 1£ per cent, lust week. The market rate of discount for best three months' bills is 2 3-32 per cent., as compared with 2 1-8 per cent, last week. FOREIGN EXCHANGES. The following rales on foreign exchanges are current to-day, compared with the cabled quotations on May 19 and par:—

> j NEW YORK CALL MONEY. 1 i NEW YORK, May 21. o ! r j | Call money was at lj per cent, all clay. PRICES OF BRITISH STOCKS. STEADY APPRECIATION. There lias been for some time a steady appreciation in the quotations on the London Stock Kxchango of the British v ; funded securities. A substantial riso has ' I occurred during the last week and this : 'j follows on the accumulated advance since " i the end of March. Following is a comf I parison of the.latest quotations with those i of eight weeks ago:— 0 | Mar. 2fi May 21. r] ! Consols. ii\ p.c. . . . £5(5 10 0 £OO 10 0 1 j Funding Loan. 1 p.c. 91 5 0 97 0 0 j I Conversion Loan, ii! p.c. 78 10 0 81 0 0 e I Tho rise during the pnst week in the - prices of these three stocks is attributs - able to the reduction of the bank 0, rate to 2i> per cent. That lias evidently 1 1 convinced investors that the long-expected [i 1 fall in interest rates is beginning and ii : lias stimulated tho demand for gilt edged securities, which is recognised to be one ! of the first signs of reaction from the : effects of commercial depression, a j It is notable that British funds arc 1 | now quoted at prices giving a yield only '• slightly in excess of 4 per cent. When ii consols rise to £62 10s, the yield will - be exactly 4 per cent. It has been geners ally anticipated that as soon as the price ~ of money becomes established at that level steps will bo taken toward the con- . version of tho 5 per cent, war loan. 2l FRUIT IN COOL STORE. i , Contrary to earlier expectations, apples and pears held in cool store for the Auck--1 land market this season are well up to the quantity of normal years. The usual quantity of Stunner apples has been drawn from IJawke's Bay, while stocks of Coles and Nellis pears have also been largely drawn from the South. Actual ' figures of the fruit held for the local market aro not available. AWATUNA GOLD. The new dredging company Awatuna Extended has commenced operations at Awatuna, Westland, and already recovery 1. of some 40oz of gold is reported. Up to tho present work has been on old tailings to enable tho dredge to get into a position lo work tho deeper ground previously unwoi'ked. EXTENSION OF INDUSTRY. VANCOPVF.I?, May 2t. ■: Mr. W. R. Ilnnie, of Australia, ani;' nounces that it is proposed to erect a o branch of the Ilume pipe plant in Vancouver.

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