RESERVE BANK RETURN

New Zealand Herald, Volume LXXI, Issue 21935, 19 October 1934, Page 7

RESERVE BANK RETURN

DECREASED GOLD HOLDING RISE IN STERLING EXCHANGE MOVEMENT OF INVESTMENTS [by telegraph—OWN correspondent] WELLINGTON, Thursday The Reserve Bank return for tho week ended October 15 was gazetted to-night. The statement is balanced at £29,639,926 or £234,159 more than last week. Government deposits are higher by £395,777, while bankers' deposits have decreased £251,155. The note issue has increased £84,263, compared with the previous week. These are the principal movements on the liabilities side. Thfc gold holding shows a decrease of £250,000 compared with a week before, indicating another sale following that recorded in the week ended October 1. Sterling exchange has increased by £492,539, while the investments show a rise of £6386, this being the first movement disclosed in this item since the bank commenced business. The statement, with variations compared with the previous week, is as follows: LIABILITIES Variation 1. Capital .. <• £500,000 Same 2. Gen. reserve .. 1,000,000 Same 3. Bank note 3 .. 8,753,470 8-1,2631 4. Demand liabilities—(a) State .. £3,472.577 £395.777t (b) Banks .. 15,855,470 251,155* (c) Other .. 1,374 1047. Other liabilities 27,035 5,170t Total .. .. £29,639.926 £234,159* ASSETS 8. Reserve—(a) Gold £3,601,727 £250,000* (b) Sterling Ex. 24,375,907 492.539* 9. Subsidiary coin 121,644 370* 12. Investments .. 1,506.386 6,356t 14. Other assets .. 34,202 14,396 £29.639.926 £234,159* 'Decrease. Proportion of reserve to notes and other demand liabilities 99.51 per cent (99.46 last week). , . BUTTER STEADIER IMPROVEMENT IN MARKET, SLIGHT RISE IN PRICE There is a better tone in the Lon« don butter market, steadier conditions now ruling. New Zealand finest (new season's) is quoted at 64s to &5s per cwt., a rise of Is. Stored butter is selling at the low level of 60s to 61s per cwt., a record low price. . Cheese values are unchanged and the market is steady. Merchants have received the following cablegrams, dated October 17, from their London principals:— A. H. Turnbull and Company, Limited, from W. Weddel and Company, Limited. —Butter: Danish, 100s; New Zealand, salted, 64s to 655;" Australian, 64s to 655. The market is steadier. Cheese: White, 48s to 48s 6d; coloured, 48s 6d to 495. The market is steady. New Zealand Loan _ and Mercantile Agency Company, Limited. —Butter: Choicest salted new season's, 655; first grade, 62s to 635; stored finest (irregular), 60s to 61s. The market now is steady. Cheese: White, 48s; coloured, 48s 6d. The market is steady. Joseph Nathan and Company, Limited, from Trengrouse and Nathan, Limited. —Butter: Finest, 64s to 655; first, 62s to 635. Cheese: White and coloured, 48s 6d to 495. Both markets are firm.

STEAM PACKET COMPANY MORATORIUM PERIOD PROSPECTS NOT PROMISING LONDON, Oct. 17 At a meeting of the Royal Mail Steam Packet Company, Sir Arthur Maxwell, who presided, said the moratorium granted by the company's directors would end on December 31. The directors could not make a definite statement about the position which would arise then, but the prospect of evolving a scheme was remote. It might be necessary very shortly to consider winding-up the company. A scheme for the reorganisation of the Royal Mail Steam Packet and associated companies, upon which the voting trustees worked for two years, was adopted in 1932 in an effort to save the fleet from disintegration, which would have followed an enforcement of the rights of individual creditors. A provision of the scheme was a moratorium under the control of the creditors concerned, which could be terminated by them after December 31, 1934. At the time the Royal Mail group owned fleets of vessels representing nearly one-sixth of the British Mercantile Marine, carrying annually in normal times over 1,500,000 passengers and 14,000,000 tons of cargo and employing 60,000 men ashore and afloat. The scheme involved some 15 companies comprising the group and included some 200 vessels with a tonnage of about 1,500,000 gross. The report of the company for 1933 was published in the Herald on October 11. This showed that the deficiency account'increased during the year from £9,011,362 to £11,303,114. The directors pointed out that this account merely represented losses which it was possible to assess. It did not cover all the losses on guarantees and investments.