RESERVE BANK RETURN

New Zealand Herald, Volume LXXV, Issue 22990, 18 March 1938, Page 7

RESERVE BANK RETURN

EXCHANGE UP £1,005,000 STATE DEPOSITS FALL REDUCED PRODUCE ADVANCES [by telegraph—ritEss association] WELLINGTON, Thursday Tho Reservo Bank return for tho week ended Monday, March 14, was gazetted to-night. Tho statement is balanced at £28,655,620, or £933,081 less than at the cjoso of tho provious week.

Government deposits have fallen by £8(37,218 from the high point reached by the largo increases in tho two previous weeks. The holdings of tho trading banks are £119,506 lower. The note issue has fallen in value by £27,153. The sterling exchange reserve is £1,005,021 higher in value than it was a week before. Advances to the Dairy Industry Account aro lower by £502,997. Tho item advances to the State or State undertakings for purposes other than tho marketing of primary produce, which stood, at £1,300,000 last week, has been entirely eliminated. '.l'he statement with variations compared with tho week before is as follows: — LIABILITIES Variation f £ 1. Gen. reserve .. 1,500,1100 Suno •J. Bank notes .. 1:1,500,820 -27,153 3. Demand liabilities- - (a) Statu .. 7,5r.5,.",!)(> -807,218 ll>) Banks .. 5,120:1,05 I - 110,50(1 yv) Oilier . . _'7.'V.!Ki +"0,552 (J. Other liabilities l!):i,.S7:i -750 128,055,020 - 038,081 ASSETS 7. Reserve — (a) Gold .. 2,801,701 Samo (b* Sterling ex 10,022,1:17 +1,005,0-,! 8. Subsidiary coin 1220,770 +l<32 10. Advances — 5,07.1,008 —502,907 "poses ° thCr - -1.300,000 :!. Other .. 250.000 S,™ I .® 11. Investment .. 2,:>71,085 -r 1 ,•1013. Other assets .. 104,077 -141,5.>1) 28,055,020 -IKS S,OHL Proportion of reserve to notes and other demand liabilities, 72.042 per cent (66.019 per cont last week). SEVERE SHARE FALLS LONDON NERVOUSNESS INDUSTRIALS LOSE HEAVILY (Received March 17, 7.30 p.m.) LONDON. March 10 Hopes that the markets would overcome their nervousness were shattered this afternoon when all classes of shares were freely offered. The volume of business was' not large, but nrices were marked down severely and closed at tho (lay's lowest point. industrials were heavy sufferers. Even armament shares finished weak, owing to reports that trade unions will demand greater control of profits. On the New York market, under tho influence of persistent in London, stocks broke sharply. Exchango losses ranged over five points. European bonds continued to slump, but dealings were difficult to arrange.

FOREIGN BONDS AFFECTED DECLINES IN NEW YORK (Received March 17, 8.30 p.m.) NEW YORK, March 17 The sharpest break since 1931 occurred in foreign dollar bonds, pronounced weakness developing in the so-called high-grade foreign loans. Declines ranged up to 14 points, Austrian and Chechoslovakian bonds showing the greatest losses. Sterling dropped two cents to 4.96. Dutch guilders were hardest hit, falling 45 points to 55.04. French francs alone escaped.

LONDON WOOL SALES DEMAND FOR CROSSBREDS LATE RATES MAINTAINED LONDON, March 10 At the won I sales to-dav 6890 bales were offered, including 15/6 from New Zealand, and 5205 were sold. Thero was a fairly good selection, with a keen demand for erossbrods. Ruling rates were maintained. New Zealand greasy crossbred made 10$ d per lb. average and lid top price. Commenting on the outlook at the opening of tho sales, H. DaAvson and Sons declare that Hitler's coup must disturb Anglo-German trade. The home market, however, is fairly healthy, the low values having stimulated confidence. SHORT LOANS AND BILLS LONDON DISCOUNT RATES LONDON, March 10 Discount and short loan rates on the London market are the same as those for last week, as follows: — Mar. 0 Mar 10 p.c. p.c. Day-to-day loans .. V* % Fine trado bills (3 nios.) 2to 2'/ a 2to 2% Bank bills (3 nios.) .. °/i« Vu< Bank bills (0 nios.) . . "An "A* Treasury bills (2 months) % Vi Treasury bills (3 months) W Yi

FALL IN PRODUCTION

RUAWAI DAIRY COMPANY

[BY TELEGRAPH —OWN -CORRESPONDENT] DARGAVILLE, Thursday

An all-round decrease in production figures for the Kuauai Co-operative Dairy Company, Limited, is shown as the result of tho working of tho company during February, as compared with tho samo month of last year. Tho quantity of butter manufactured during the month was 388,3601b., compared with ,<130,024 lb. in February last year, a decrease of 4.1.,(■(>1ib. Butter made for the season to date is 2,8-12,1531 b., compared with 3,07"), 1781b. to the sane date last year, a decrease of 232,0231b. Advances to suppliers made during February totalled .£10,210, compared with £17.1(51 last year, a decrease of £1251. Advances for the season to date total £119,810, compared with £125,325 last year, n decrease of £5500. COST OF PRODUCTION RISE IN BACON INDUSTRY Figures showing that the cost of piga and raw materials had increased by 100 por cent wero submitted by Mr, H. A. Spinle.v, chairman of directors of the Nikau Macon Company, Limited, Auckland, at the annual meeting on Wednesday. Manufacturing and distributing costs had also risen, (1 nc to legislation in tho past two years. The turnover of tho company in tho past five years, however, had increased by 128 per cent. Tho chairman stated that further extensions might bo necessary in the coming year.

The report ami balance-sheet, ns published in the Herald on February 23, -were adopted. Tho retiring directors, Messrs. 11. A. Spiuley, John Tiotjens, C. Kubrick and C. E. Brown, were ro-elccted.