RESERVE BANK RETURN

New Zealand Herald, Volume LXXII, Issue 22231, 4 October 1935, Page 7

RESERVE BANK RETURN

STATE DEPOSITS LOWER RISE IN BANKS' HOLDING EXCHANGE LEVEL REDUCED [BY TELECRAPIT —PRESS ASSOCIATION] WELLINGTON, Thursday The Reserve Bank return for the week ended September 30 was gazetted to-day. The statement is balanced at £24,853,470, or £296,447 less than at the close of the previous week. The principal movement on the liabilities side has been a fall of £553,941 in the deposits of the State, which, at £9,197,925, are considerably below the level ruling for some time past, and nearly £2,800,000 smaller than three months previously. The latest fall is refleeted to some extent by an increase of £243,429 in the deposits of the trading banks. The note issue is £19,558 below the figure in the last previous return. The reserve of sterling exchange has decreased by £299,348, compared with the holding a week earlier, this being the chief change among the assets. The investment item, after having remained stationary for some time, has risen by £31,677. 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 . . 8,893,905 19,558* 4. Demand liabilities—(a) State .. 9,197,925 553,941* (b) Banks . . 4,644,581 243.429* (c) Other .. 545,906 36,0351 7. Other liabilities 71,093 2,462* Total .. .. £24,853,470 £296,447* ASSETS 8. Reserve— t (a) Gold .. .. £2,801,732 Same * (b) Sterline ex. . . 19,688,594 299,348* 9. Subsidiary coin . . 219,951 1,367* 12. Investment .. 2,134,536 31,677t 14. Other assets .. 8,657 27,409* Total .. ... £24,863,470 £296,447* tHigher. 'Lower. Proportion of reserve to notes and other demand liabilities, 96.59 per cont (96.66 last week). PROSPECTS FOR WOOL LOW CONTINENTAL STOCKS SOUND STATISTICAL POSITION [by TELEGRAPH—OWN CORRESPONDENT] NAPIER, Thursday Prospects and values for the new season's wool are discussed in the annual review of Williams and Kettle, Limited, woolbrokers. They make the following submissions, after having given careful consideration to the prevailing factors and the general conditions relative to the position, important among which is that it is not anticipated that the Dominion's carry-over of wool, consisting of 186,679 bales, will in any degree be sufficient to influence values. "We place first the fact that the statistical position of raw wool is particularly sound; since the close of last season demand and consumption have made essential headway. This increased consumption has taken place chiefly in the Home markets. Consumption has bebn further augmented by a stronger Japanese and Continental demand, which, together with the Home requirements, has led to the result that to-day in Bradford it is doubtful whether there will be a sufficient quantity of fine wool available to keep the machinery running until the 1935-36 clip is to hand, and in some quarters Australian wool is already being substituted where possible by Cape wools (South African). The Australian carry-over is negligible, and her last season's production has been practically cleared. " We draw attention to the foregoing facts, as they have a direct bearing on future wool prospects, and. have created a position which is likely to influence a further advance jn Merino values. When these wools appreciate, the enhanced values invariably reflect on crossbred qualities, as high-priced Merino compels the manufacturer to give more attention to lower qualities and the sale of cheaper fabrics. It is therefore reasonable to expect that the demand for our crossbreds will be stimulated by the statistical Australian position. "Notwithstanding tho various restrictions on international trade, British official returns in reference to exports of wool and its products continue to show a steady improvement. It is also of importance to note internal conditions on tho Continent in respect of textile stocks, which as the result of restricted buying during last season are extremely low in Germany, Franco and Italy, each of the countries cited being at present acutely in need of raw material. The necessary financial arrangements to facilitate purchase of and payment for their requirements are matters outside our province to discuss in this review, but it appears evident that during the past few months, as shown by Britain's increased Continental exports, the existing difficulties are being gradually overcome." LONDON WOOL SALES , "fair fcoMPETITION _____ LONDON, Oct. 2 At the London wool sales to-day 9563 bales were offered, including 4091 New Zealand, About 7700 bales of Australian and New Zealand were sold. There was fair home and Continental competition. New Zealand scoured Merino " Glen Tanner " sold at 23d, top price, and 21 id average. MELBOURNE AUCTIONS SIGNS OF IMPROVEMENT MELBOURNE. Oct. 3 At the Melbourne wool sales to-day there were signs of further improvement. Competition was more goneral, and good Merinos and comebacks tended in sellers' favour. Merino wool sold to 183 d. IMPROVING TENDENCY r MARKET IN SYDNEY f (Received October 3, 9.45 p.m.) SYDNEY, Oct. 3 At the Sydney wool sales to-day 11,445 bales were offered and 10,320 were sold. Also 1235 bales were sold privately. Tho improving tendency recently, reported for best descriptions was noticeable again and the market consequently was very firm, with keen general competition. Greasy Merino sold to 19Jd. AUSTRALIAN PRODUCE (Received October 3, 7.35 p.m.) SYDNEY, Oct. 3 Following are to-day's quotations on the Sydney produce market: —Wheat. — Still rising. Bagged grain, on country sidings, is quoted at 3s, and bulk at 3s Oid, equivalent to 3s 7d and 3s Bid, ox trucks Sydney, Flour, £l2 ss. Bran and pollard, £5 15s Potatoes, Tasmanian, £l3 to £l4 lQs; others, £l3. Onions, Victorian Brown, £l2 10s. Maize, yellow and white, 4s 9d. Adelaide prices are: —Wheat, growers' lots, 3s 6£d. Flour, bakers' lots, £l2 15s. Bran, £5 7s 6d. Pollard, £5 12s 6d, Oats, Algerian, Is lOd. Barley, 2s 4d.