RESERVE BANK RETURN

New Zealand Herald, Volume LXXIII, Issue 22497, 14 August 1936, Page 7

RESERVE BANK RETURN

STATE DEPOSITS HIGHER i FALL IN BANKS' HOLDINGS _ | DECREASE IN NOTE ISSUE j [by TELEGRAPH—PIIESS ASSOCIATION] WELLINGTON. Thursday I The Reserve Bank return for the : week ended Monday, August 10, was ' i gazetted to-night. The statement is 1 j balanced at £24,777,483, or £-'5102 less • than at tho close of the previous week. The note issue lias receded by £9113 1 from the high point reached the previi ous week. Government deposits are 1 £260,753 higher, while those of the ! trading banks have fallen by £258.504. On the assets side sterling exchange is £4002 lower than it was a week before. Coin has fallen in value by £30.30, while the investment item is less by i £3058. The statement with variations compared with tho week before is as follows: LIABILITIES Variation £ £ J. fien. reservo .. 1,500,000 Sarim 2. Hank notes . . 10,770,601 -0,113 3. Demand liabilities — (a) State . . 6,538,021 +266,753 (l» Hanks . . 5,781,-133 -258,504 (c) Other . . 04,207 -3,510 6. Other liabilities 00,005 +1,311 Total . . . . 24,777,483 -3,102 ASSETS 7. Reserve — £ £ (a) Hold .. 2,801,733 Same (b) Sterling Ex. 10,487,180 8. Subsidiary coin 188,345 11. Investment .. 2,038,324 ~3,1)58 13. Other assets . . 261,892 -I,olb Total .. .. 24,777,483 -3,102 Proportion of reserve to notes and other demand liabilities, 96.125 per cent (96.089 last week). MERCANTILE INSURANCE SYDNEY FIRM'S YEAR Net premium income of the Mercantile Mutual Insurance Company, I Limited, Sydney, for the year ended ! June 30, was £250,010, an increase of { £12,636. The underwriting surplus was I £30,219, against £25,975 in the previous year and £19,658 in 1934. Income from interest and rents, at £21,295, was reduced slightly. The dividend for the year was increased from 7 per cent to 8 per cent, which required £32,000, the sum of £2OOO is allocated to the officers' provident fund, and £3OOO for distribution among the staff. The balance, £14,514, is added to tho contingent fund, making it £33,417. Speaking at the annual meeting in Sydney last week, Mr. C. C. (Tale, chairman of directors, said that although tho Federal Government had announced another substantial surplus for the year ended June 30, no reduction in direct taxation had as yet been made. The suggested reductions were limited to indirect items, as primage and sales tax. Emergency taxation, heaped on to produco revenue to carry the Government over the period of the depression, should disappear now that the cause for tho emergency taxes had ceased to exist. Excessive taxation had a direct influence in hindering the establishment of industries overseas.

To provide for any possible depreciation in the company's assets, the chairman said, £IO,OOO had been transferred from the contingent fund to a special reserve. It was now proposed to increase the fund to JL'2O,OOO.

IRON AND STEEL PRODUCTION STATISTICS British Wireless IMJOHY, August 12 The production of pip iron in Uritain in July amounted to <361,100 tons, compared with 614,100 tons in June and 5-17,-SOO tons a year ago. The production of steel ingots and castings Inst month amounted to 07*1,000 tons, compared with 965,500 tons in June and 803,300 tons in July, 19.'t0. NEW GUINEA GOLD SHARES LONDON, August 12 On the mining market to-day New Guinea Gold sold at -is.