RESERVE BANK RETURN

New Zealand Herald, Volume LXXIII, Issue 22461, 3 July 1936, Page 7

RESERVE BANK RETURN

FALL IN STATE DEPOSITS

REDUCED BANK HOLDINGS

EXCHANGE £1,267,000 LOWER

[BT TELEGRArn —PRESS ASSOCIATION']

WELLINGTON, Thursday

The Reserve Bank return for the week ended Monday, June 29, was gazetted to-night. The statement is balanced at £27,425,906, or £1,241,338 less than at the close of the previous week.

Government deposits, which had been moving upward for a month previously, decreased during the week by £944,002. The deposits of the trading banks continue to fall, there having been a further decrease of £374,403. The note issue lias risen by £19,330. The holding of .sterling exchange is £1,207,200 lower than it was a week previously, investments have increased by £22,170. Other changes in the assets are nominal. The statement, with variations compared with the week before, is as follows : LIABILITIES Variation J. ('CD. reserve . £1,500,000 Same 2. Bunk notes . 10,010,705 +11),330 3. Demand liabilities — (a) Stale . . 8,830,0312 -1M4,002 (b) Banks .. G,097,401 -374,403 (c) Other 258,110 +57,200 0. Other liabilities 8!J,«!)5 +IOB Total .. .. £27,425,000 -£1,241,338 ASSETS 7. Reserve—(a) Gold .. 2,801,733 Same (b) Stcrl. Ex. 22,122,319 -1,207,200 8. Subsidiary coin 102,158 -4,100 11. Investment 2,030,79!) +22,710 13. Other assets . '.272,807 +7,312 Total .. £27,425,900 -£1,241,338 Proportion of reserve to notes and other demand liabilities, 90.409 per cent (96.725 last week). BUTTER MARKET FIRMER CONSIDERABLE BUYING DONE NEW ZEALAND CLOSES AT 106/The tone of the London butter market shows an improvement, according to a cablegram, dated Julyl, received by Joseph Nathan and Company, Limited, from Trengrouse and Nathan, Limited. After considerable business at the current price, 105s per cwt., tiltmarket closed firmer at 106s.

The choose market is firm, with prices unchanged at 57s 6d to 58s per cwt.

GRADING OF BUTTER

NEW SCHEME OPPOSED

SOUTH AUCKLAND ASSOCIATION

[bt telegraph OWN correspondent] HAMILTON, Thursday

The South Auckland Dairy Association to-day resolved to oppose the intention of the Government as outlined at Hastings by the Minister of Marketing, the Hon. W. Nash, regarding the splitting of grades in respect of butter and cheese, as being unfair to the producers. It was affirmed that a guaranteed price should be paid only on three grades of butter and two of cheese.

Some concern was expressed that cheese suppliers might not benefit to the extent they should under the guaranteed price scheme, and it was decided to ask the .Government that the increase in costs for f.o.b. a pound butter-fat during the current season as between butter and cheese, should bo carefully considered in fixing guaranteed prices, to ensure that the promise of a margin of a pound butter-fat to suppliers of cheese factories might be fulfilled. DROUGHT IN AMERICA GRAIN OUTLOOK SERIOUS WORLD SURPLUS DECREASED (Received July 2, 5.5 p.m.) WASHINGTON, July 1 Officials of the Weather Bureau report that the present drought in Central and North-West America is more critical than those of 1930 and 1934 at this time of the year. They say that unless general rains come in the next fortnight to save the maize crops the Government may face the necessity of buying cattle for slaughter, as in the 1934 drought, when 7,000,000 head were purchased. President Roosevelt has Ordered a study of the employment possibilities for farmers. The agricultural adjustment administration has modified its 1936 soil conservation programme to encourage farmers to plant more food and feed crops to olfset the present losses.

The Bureau of Agricultural Economics reports that the world's wheat stocks are the lowest in nine years. The American wheat carry-over is 125,000,000 bushels —the smallest since July 1, 1928. The surplus of the principal exporting countries is .'388,000,000 bushels, compared with 532,000,000 last year and 789,000,000 in 1933. Frenzied buying of grain occurred at the Chicago wheat pit to-day upon receipt of the report of the low world surplus. Wheat gained 3i cents a bushel, maize 2g cents and oats, 12 cents. STOCK FROM BRITAIN DIRECT IMPORTATION URGED [BY TELEGRAPH —PRESS ASSOCIATION] WELLINGTON, Thursday The Royal Agricultural Society conference by an overwhelming majority adopted a remit directing that the Government should be asked to allow the direct importation of stock from Britain. There were similar remits from the Masterton Agricultural and Pastoral Association, the Southdown Sheep Society and the New Zealand Pig Breeders' Association. A remit opposing the raising of the embargo came from tho Matamata Agreultural and Pastoral Society. WELLINGTON TRUST DIVIDEND Tin; Wellington Trust, Loan and investment Company, Limited, has paid an interim dividend of 2} per cent, unchanged, for the half-year ended June 30. NEW YORK CALL MONEY NEW YORK, July 1 Call money is quoted at 1 per cent. MINING SHARES IN LONDON LONDON, July 1 On the mining market to-day Mount Lyells sold at 19s 3d and New Guinea Gold at 4s s}d.