FUNDS IN ENGLAND

New Zealand Herald, Volume LXXIII, Issue 22333, 3 February 1936, Page 5

FUNDS IN ENGLAND

BALANCES OF THE BANKS REDISTRIBUTION EFFECTED LABOUR'S EXCHANGE POLICY A redistribution of London funds held on New Zealand account has followed the announcement that the Labour Government intends gradually to reduce the exchange rate of 125 per cent on London: Taken in conjunction with the weekly statement of the Reserve Bank, the trading banks' monthly statement published last week shows that the Reserve Bank held at the end of December 68 per cent of the total London funds, compared with under (30 per cent, in previous m mths. Holdings of .London funds by the Reserve Bank and the trading banks on the last Monday in recent months compare as follows: Reservo Trading Total £ £ £ Sept. 30 .. Oct. 28 .. 16,531,482 12,293,367 29,12J,849 Nov. 25 .. 17,'158,571! 12,0(55,001 29,52.3,574 Pec. .'lO .. 21.398,919 9,754,717 31,153,666 Jan. 27 .. 22.103,949 * "Not Available. The trend in the figures indicates that the trading banks have transferred surplus London funds to the Reserve Bank. A lowering of the exchange rate on London will mean a loss to the banks on London holdings. If the trading banks are unwilling to hold them they must be taken over by the Reserve Bank. No loss can accrue to the Reserve Bank arising from a lowering of the rate, as it is indemnified by the Government under the Finance Act, 1934.

Prior to the movement in December the sterling funds of both the Reserve Bank and the trading banks had declined in practically equal proportions, due to the increased volume of importing. BRITISH STOCK MARKET CONFIDENCE IN OUTLOOK (Received February 2, 5.5 p.m.) LONDON. Feb. 1 Although the Stock Exchange was closed for two days in the past fortnight owing to King George's death, the widespread activity was strong evidence of confidence in the outlook. Interest is still centred in industrials, and there was good business in oil and rubber shares, the latter being a shade easier. Gold shares were dull. SYDNEY EXCHANGE SATURDAY'S BUSINESS SYDNEY, Feb. 1 Sales on the Sydney Stock Exchange to-day included:—Bank of Australasia, £l2 Is; Bank of New South Wales, £34 12s 6d; Australian Gas, A shares £8 Is; Toohey's Brewery, 30s 6d; Tooth's Brewery, rights, 325; Anthony Hordern, 21s 4sd; Associated News, preference. 22s 10} d; Broken Hill Proprietary, 60s 3d; Dunlop Perdriau, 16s ljd; Goldsbrough Mort, 335; James Stedman, 18s; Wilcox jMoiflin, lis 3d. FOREIGN EXCHANGE RATES LONDON QUOTATIONS (Received February 2, 5.5 p.m.) LONDON, Feb. 1 On the foreign exchange market today the following quotations ruled, those for yesterday being given in parentheses:—New York, 5.00 11-16 dollars (o.OOij; Paris, 74J francs (74 15-16); Batavia, 7.24 J- florins (7.26J). NEW ZEALAND QUOTATIONS lhe Associated Banks (other than the Bank of New South Wales) quoted the following dollar rates on Saturday, on a New Zealand currency basis, subject to alteration without notice:— Selling: United States Canada /■T. .. .. 4.01% 4.00% On .demand .. 4.01% 4.01 Buying: On demand . . 4.oC>'/ 4 4.05% Following are the latest rates for purchases and sales of foreign exchange quoted by the Bank of New South Wales, Auckland. They are subject to alteration without notice: — T.T. On Demand To £ 1 N.Z. Currency Selling Buying Selling U.S.A.. dol. .. 4.01% 4.0(1% 4.01% Canada, dol. . . 4.00'/ a 4 054.01 Austria, sch. . . 20.77 Belgium, belga . . 'J3.129 ' 23.410 Czecho-Slovakia, cr. 9-1.89 Denmark, kr. .. 17.89:! 18.263 , 17.903 France, fr. . . 59.81 i 61.11 59.^7 Germany, r.m. .. 9.H05 s 9.810 Holland, fl. .. 5.804 6.014 ,5.808 Java, fl. . .. 5.769 5.989 5.773 Norway, kr. .. 15.892 ' 16.242 15.902 Sweden, kr. .. 15.489 15.844 15.499 Switzerland, fr. .. 12.103 12.478 12.108 Noumea, fr. . , 58.16 . 62.91 58.52 Papeete, fr. .. 58.61 62.91 68.67 N.Z. pence to— Hongkong, -dol. .. 20'%, 18 n /,„ 20% India, rupee .. 22*% a 2'2'/ ja 22 57-64 Ceylon, rupee .. 22Via 22 57-64 Japan, yen .. 17% Shanghai, dol. .. 18"/ l0 17% 18 43-64 Singapore, dol. . . 35 15 /i 2 34y 18 35 20-64 The cost in New Zealand currency of the pound sterling, and of the principal overseas units, on the latest quotations, is as follows: — Present Price Australia, pound .. 19 10.81 20 0.00 London, pound .. 24 10.65 20 0.00 Fiji, pound .. •• 22 5.66 20 0.00 New York, dollar .. 4 10.91 4 1.31 Montreal, dollar .. 4 11.71 4 1.31 Paris, franc .. .. 0 3.99 0 .98 Berlin, reichmark .. 2 0.29 011 -74 Copenhagen, krone .. 1 1.33 1 l''-j Yokohame. yen . . - • 1 oAB 2 O.ob CUSTOMS EXCHANGE RATES Bates of exchange* ruling at the announced dates'of departure of vessels named are shown in the following table. They are subject to confirmation by the Customs Department when the exact time of departure is learned on arrival of the vessel in New Zealand. Finally declared rates are marked*:— City of Dieppe, Canada, dollars . . 4.96% City of Dieppe, America, dollars 4.9.f;; a Brisbane Maru, Japan, yen .. •• J 4 '% d Canadian Planter, Canada, dollars . 4.90 /B Aorangi, Canada, dollars . . . • 4.JJ BROKEN HILL SOUTH DIVIDEND AND BONUS [])"£ - TELEGRAPH—PRESS ASSOCIATION] WELLINGTON, Saturday Broken Hill South, Limited, has declared a dividend of 2s 6d a share and a special jubilee bonus of 2s 6d a sharo. payable in Melbourne on March 14. This is the third distribution for the current financial year, which ends on Junfe 30. Two payments of Is 6d a share and Is sharo as bonus were made in September and December of last year. The corresponding payment last year was Is 6d a share only, and for the whole year 6s a share, or 30 per cent.

WHOLESALE EGG PRICES Wholesale prices for eggs in Auckland are unchanged, as follows: —Hon, first grade, Is GUI a. dozen; B, grade, Is 4sd; C grade, Hid; duck, Is 4Jd, Is 3Jd, and llid.