RESERVE BANK RETURN

New Zealand Herald, Volume LXXV, Issue 23078, 1 July 1938, Page 7

RESERVE BANK RETURN

EXCHANGE VALUE LOWER FALL OF £414,000 SHOWN PRODUCE ADVANCES REDUCED [BY TELEGIIAI'H —PRESS ASSOCIATION] WELLINGTON, Thursday The Reserve Bank return for the week ended Monday, Juno 27, was gazetted to-night. The statement is balanced at £27,204,620, or £222,217 less than at the close of tho previous week. Government deposits have increased by £l7-1,183, following a fall of £524,533 in the previous return. The holdings of the trading banks are £328,008 lower. The note issue has risen by £66,617 and other demand liabilities are £136,670 higher. The sterling exchange reserve, after a recovery of £79,992 last week, shows another fall of £414,261. Advances to the Primary Produce Marketing Department are £lOB,llB lower, while those for other purposes have increased by £300,000. The statement with variations compared with the week before is as follows: LIABILITIES Variation £ • £ 1. Gen. reserve .. 1,500,000 Saino 2. Bank notes .. 13,771,721 +60,017 3. Demand liabilities — (a) State . .. 4,618,200 f 174,1 S3 (b) Banks .. 6,802,841 -328,008 (c) Other .. 311,151 -130,070 G. Other liabilities 101,005 +l,OOl Total . . . . 27,204,620 -222,217 ASSETS £ £ 7. Reserve—(a) Gold .. 2,801,701 Same (b) Sterling ex. 16,000,10 C. -111,201 8. Subsidiary coin 235,371 +OOI 10. Advances— I. Marketing Department 1.150.G50 -108,118 -. For other purposes *. 000,000 +300,000 31. investment 2,732,005 Same 33. Other assets . . 00,517 -520 Total . . . . 27,204,020 -222,217 Proportion of reserve to notes and other demand liabilities, 75.824 per cent (76.77 last week), COMPANY RESERVES FUNDING FOR DEPRESSION TAX-FREE PLAN IN SWEDEN To encourage industrial investment during periods of depression the Swedish Government has asked tho Riksdag to pass a law by which exemption from State and municipal income-tax would bo granted companies on such part of their net profits as can be shown to have been funded for depression investment purposes. The Government bill limits such funding to 10 per cent of annual profits or two per cent of share capital for building investments and 20 per cent of profits or four per cent of capital for investment in accessories and inventory. The funded money can be used only in years iixed by the Government with a view to levelling out the trade cycle, and only for writing off buildings, machinery, etc., constructed during such years. The law is to be provisionally valid during the taxation years 1939-41, and if funds exempted under the law have not been used for their purpose six years hence they will be taxed retroactively.

BANK OF NEW ZEALAND VACANCY ON DIRECTORATE Nominations for the vacancy on the Bank of New Zealand directorate to be caused by the approaching retirement of Mr. William Watson, will closo ori September 30. Mr. Norton Francis, of Christchurch, has announced that ho will bo a candidate.

SHORT LOANS AND BILLS LONDON DISCOUNT RATES LONDON, June .22 Discount and short loan rates on the London market are the same as those for last week, as follows: June 22 June 20 p.c. p.c. Day-to-day loans .. .. '/a Va Fine trade bills (3 mos.) 2to 2Vi 2to 2V!i Bank bills (3 months) .. % a */,» Bank bills (6 months % % Treasury bills (2 months) */,» Treasury bills (3 months) •/,» ' */,»

GOLD AND SILVER QUOTATIONS IN LONDON LONDON, Juno !29 Fine gold is quoted to-day at £7 Oa Bjd an ounce, compared with £7 Os 9d yesterday. Silvor is quoted at 19 l-l(3d an ounce spot, nnd 18 15-16 d forward, same as yesterday. The quotation for silver at per fine ounce is 20 9-16 d, same as yesterday. BASE METALS EASIER QUOTATIONS IN LONDON LONDON, June 29 Following are to-day's quotations on the London metal mnrket compared with those of June 28: — Juno 2!) June 28 L'cr ton Per ton £ s d .C s d Copper, slnn., spot SO 15 0 37 5 0 Copper, st., 3 mos. 37 0 7'/ a 37 10 7V a Copper, electrolytic 40 1 5 0 41 15, 0 to to 41 15 0 42 5 0 Copper, elect., wiro bars 41 15 0 42 5 0 Lead, soft, spot. . 14 0 10% 14 8 1% Lead, soft, forward 14 7 0 14 8 IVa Spelter, spot 13 10 0 13 (i 3 Spelter, forward . . 13 11 4% 13 10 7VI Tin, stan., spot .. 184 5 0 185 (I 3 Tin, stan., 3 moa. 185. 7 0 180 2 0 SWEDISH MATCH SHARES I The shires of the Swedish Match Company were officially quoted on the Stockholm Bourse on May 20 for the first time since April, 19i$2, when dealings were suspended following the Krotiger crash. Swedish match "A" shares were quoted ut 22.50 kr. (about 24k 4d, sterling), whilo buyers of tho "B" shares paid 21.50 kr. (about 23s JJd). There was a turnover of 400 in each category. CALL AND DIVIDEND LIST Due lI.M Arcade—int., prcf., 2 3-5 p.c.; ord., 3 p.c. .. .. To-day Kclburne Tramway.—int.. 5 p.c. n.a. . . . ■ To-day Wellington Trust, Loan and Investment —Int., 'JVa p.c. .. To-day National Mortgage—int.. 5 p.c. p.a. (sterling) 10-day Zinc €orpn. —ord. and pref., 4s Od stic. (less 3s Odvin J2l)i pref., 2s stg. (less 3s 2d in .CI) To-day Big River—second, id a share July 4 Woolworths (N.Z.)—int., 5 p.c. . July 7 Doin. breweries—final, 10 p.c. p.a • • July 7 National Bank N. 52. —final, 5 p.c. p.a. stir, (less British in- _ _ come tax) ... . • July 9 Komotiv licefs —final, 3d stg. a share July 12 Hume Steel —pref, half-year, 7% p.c p.a July 14 Mt, Morgan—ord., 3d a share .. July *2O Farmers'' Fcrt. —up.c. p.a, .. Aifg 15 Calls — Burns, Philp—new, 5c a share .. Oct. 1