RESERVE BANK RETURN

New Zealand Herald, Volume LXXII, Issue 22029, 8 February 1935, Page 5

RESERVE BANK RETURN

STATE DEPOSITS INCREASE

FALL IN BANKERS 7 HOLDINGS

STERLING EXCHANGE LOWER [BY TELEGRAPH —PRESS ASSOCIATION] WELLINGTON, Thursday The Reserve Bank return for the week ended February 4 was gazetted tonight. The statement is balanced ab £27,055,138, or £17,886 less than the previous week,. Government deposits have increased by £267,969, but the deposits of the trading banks almost cancel this movement, being £252,883 lower. Banknotes are less by £31,602 than the week before. On the assets side sterling exchange has fallen by £19,471, while the investment tqtal is £19,917 higher. The item "other assets" shows a decrease of £16,637. The statement with variations compared with the week before is as follows: — LIABILITIES Variation 1. Capital .. .. £500,000 Same 2. Gen. reserve .. 1,000.000 Same 3. Bank notes .. 9,502,372 31,602* 4. Demand liabilities—(a) State .. .. 8,562,704 267,969* (b) Banks.. .. 7,434.189 252,883* (c) Other .. .. 5,778 12+ 7. Other liabilities.. 50,095 1,382* Total .. .. £27,055,138 £17.886* ASSETS 8. Reserve—(a) Geld .. £3,001,731 Same (b) Sterling Ex... 21,848,481 19,471* 9. Subsidiary coin.i 189,028 1,695* 12. Investment . . 1,991,701 19,917+ 14. Other assets .. 24,197 16,637* Total . . .. £27.055.138 £17.886* + Higher. * Lower. Proportion of reaerv# to notes and other demand liabilities, 97.4:3 per cent (97.44 last week). BUTTER MARKET SLOW FURTHER FALL IN PRICES FINEST NOW AT 90s A further fall has occurred in prices 1 for New Zealand butter on the London market, finest is now quoted 3s lower at 90s per ewt., with a slow demand. The forward market remains quiet and it is reported that' factories ar& quoting slightly less than 10jd per lb. f.0.b., which was the level at which the last business was done. The cheese market is quiet, with prices a shade easier. The New Zealand Loan and Mercantile Agency Company, Limited, has received the following cablegram, dated February 6, from its London office:—! Butter: Choicest salted, 90s. Thel market is slow. Cheese: 46s 6d to 47S 6d. The market is quiet.

BUTTER AND CHEESE CANADIAN SUGGESTION J V SCHEME OF SUBSIDIES SASKATOON, Feb. 8 A scheme for subsidising exports oil butter and cheese by a levy of one oeriti a pound on butter-fat was laid before the Saskatchewan Dairying Council today by Mr. A. C. Eraser, secretary of the National Dairy Council. ' The object of the plan is to avei't the probability of a crisis in July, when surplus butter over Canada's requirements will force down prices. ifcr., Fraser said that objection from Britain was not likely, as Australia had sul»sidised exports for years. EGGS FOR; LONDON L; . , iPROPOSED FtEGULATIQNS ■ 'v■ '■■fi 0 LONDON, Feb. 6 The. Ministry of. reorganisation commission for eggs and poultry recbmmendit that all imported eggs should bemarked on the shell with the word " stored !' m addition .to an indication of origin, except. in those cases where the British Government is satisfied that the exporting country's has taken adequate steps to secure that all stored eggs exported are suitably marked.

LONDON PEPPER MARKET FINANCIAL CRISIS (Received February 7, 6.45 p.m.) LONDON. Feb. f The crisis in the pepper market necessitated a fire days' moratorium on all sales while Mincing Lane brokers negotiated with the banks to finance 6500 tons of pepper coming to London which' necessitated raising £2,000,000 before' the end of the week. The banks are. disinclined to assist firms which have weaken®^. themselves by speculation, but are waeng to help sound firms who have not over-traded.

The Daily, Herald says efforts are being made to form a cartel take over altogether about 25,000 tons of^ pepper which is either here or due within a few days.