RESERVE BANK RETURN

New Zealand Herald, Volume LXXII, Issue 22005, 11 January 1935, Page 5

RESERVE BANK RETURN

RISE IN STATE DEPOSITS

BANKS' HOLDINGS LOWER

SMALL FALL IN EXCHANGE

[by TELEGRAPH OWN" correspondent"! WELLINGTON, Thursday

The Reserve Bank return for the week ended January 7 was gazetted to-night. The statement is balanced at £26,933,802, or £l-19,079 loss than last week.

The greatest change is in deposits of the trading banks, which are £496,195 lower than they were the week before. Government deposits have increased by £359.672.

Following the heavy decrease shown the week before, sterling exchange has fallen again, but by no more than £153,746 on this occasion. Alterations in-other items are merely nominal. The statement, with variations compared with the week before, is as follows: LIABILITIES Variation 1. Capital . . . i £500,000 Same 2. Gen. reserve .. 1.000,000 Same 3. Bank notes . . 9,752,389 19,690* •1. Demand liabilities—(a) State . . 7,052,759 359,072+ (b) Banks .. 8,575,504 490,195* (c) Other .. 4,903 995* 7. Other liabilities . . 48,247 8,329t Total . . . . £26,933,802 £149.079* ASSETS 8. Reserve—(a) Gold .. .. £3,001.731 Same (b) Sterling ex. .. 21,938,274 153,746* 9. Subsidiary coin . . 94,170 4701 12. Investment . . 1,879,208 7,097+ 11. Other assets . . 20.419 2,900* Total . . . . £26,933,802 £149,079* +Higher. "Lower. Proportion of reserve to notes and other demand liabilities, 98.24 per cent (98.24 last week). TRADE OF THE WEEK RETAIL AND WHOLESALE BUSINESS AGAIN NORMAL OVERSEAS MARKETS FIRM The distributing trade in the city is now returning to normal, with a fair inquiry for certain seasonal lines. On account of the pickling season there is a strong demand for both bulk and bottled vinegar, and as very low prices are ruling for tomatoes, this demand has been accentuated by requirements for sauce-making. The shortage in canned goods is becoming more apparent, and the market is practically bare of herrings in tomato sauce, especially in the large sizes. With few exceptions, overseas markets for foodstuffs are firmer, and in some instances it appears that lower rates will not be available for some time.

KEROSENE The price of kerosene was advanced 8d a case, equal to Id a. gallon, this week.

DESICCATED COCONUT The market for desiccated coconut is much firmer and advancing rapidly. Latest quotations from Colombo show an advance of £5 a ton. ROOT GINGER It is reported that the Cochin crop of root ginger, which is usually shipped in February, is practically a failure. Should this crop fail none will be available until 1936. The price has already doubled and spot trade is very active. EASTERN MARKETS Quotations for sago on the Singapore market are slightly easier. After being unavailable for some weeks, tapioca is again being quoted at prices slightly below those last ruling. The market for pineapples shows slight fluctuations, while peppers are unchanged. DATES All grades and packings of new season's dates remain firm, present prices being about 3s per cwt. above the rates for shipments which arrived by the first direct steamer. As the crop this year was considerably below that of former years, it is anticipated that higher prices will rule before the next crop is ready. NUTS Increased prices are ruling for most lines of nuts. Barcelona nuts in shell show an advance of £lO a ton on prices quoted in October, while Barcelona kernels have advanced approximately £2O a ton since the opening quotations were named in August. The recent advances in walnut meats have been fully maintained. Quotations just received for new season's Brazil nuts are about on a par with last season's opening rates. ALMONDS Firmer markets are in evidence for all kinds of almonds. On account of an exceptionally mild winter in Europe trees have come into blossom early, and it is feared that later frosts will seriously damage the crop. Consequently the price has risen by about £lO a ton. Jordan almonds are now more than £ls a ton higher than the opening rates for new season's packing, while soft shell almonds show an advance of £4 a ton on the closing prices at the end of last year. TEA An improvement was shown in the quality of Dickoyas and Dimbullas offered at the opening Colombo tea auction for 1935, according to a private cablegram received in Auckland. The catalogue comprised 3.000.000' hj., and there was a good general demand for all grades. Common and medium kinds advanced by id per lb., good varieties were $d better, and where quality showed an improvement prices advanced considerably. Next week's offering will comprise 2.500.0001b. Exchange was quoted at Is 6 3-lGd, 90 days' usance. The Calcutta market was easier for all grades, most offerings being withdrawn at bids which sellers refused. The restriction of output by 17$ per cent from April 1, which was decided on recently by the International Tea Committee, will have the effect of reducing shipments from the threo principal tea-producing countries by approximately 40,000,0001b. Ceylon's quota for the current year is 220,000.0001b., and after April 1 this will be reduced to approximately 207,000,0001b.

A trade report for November received by mail from Colombo states that the offering for the month was 5,544,0511b., against 6,411,1561b. in November. 1933. In spite of some falling away in quality, good tea was keenly sought, and the average price remained fairly steady. Quality declined slightly each week.

SOUTH AFRICAN GOLD

STRIKING PROGRESS SHOWN

A striking improvement in the position of the gold producers of the Witwntersrand field since South Africa abandoned tho gold standard in December, 19.52, is shown in a comparison of results for the years ended June 30, 1932, and June 30, 1934. During that period the ore reserves have increased by 53,115,000 tons, or 56 per cent, the average value being lower by I.2dwt. a ton, duo to tho inclusion of low grade ore. The tonnage milled has risen by 4,460,000 tons and the total working profit has been doubled, notwithstanding an average reduction in recovery grade .of I.o3dwt. a ton milled. Up to the present tho average working cost has increased by only 2d a ton, equal to 1 per cent. Dividends have increased by 66 per cent over the period, in spite of the large amount payable to the Government in excess profits duty and normal income-tax. In this connection it should be noted that dividends paid in 1934 represented only 46 per cent of the working profit compared with 61 per cent for the year 1932. WHOLESALE EGG PRICES Wholesale prices for eggs are unchanged as follows:—Hen, first grade, Hid a dozen; B grade, 10id; C grade, 7jd; duck, 9}d, B£d and 6Jd.