THE MONEY MARKET

New Zealand Herald, Volume LXXVI, Issue 23489, 28 October 1939, Page 7

THE MONEY MARKET

BANK OF ENGLAND RETURN NOTE CIRCULATION LOWER RESERVE AGAIN INCREASES . ii. ' . . LONDON, Oct. 26 Tho Bank of England return for the week ended October 25 is as follows; — ISSUE DEPARTMENT Notes issued:— ' Govt, debt £11,000,000 In circu- Other Govt. lation £527,100,000 securities 565,700,000 In bank- Other secuingdept. 53,100,000 ritics .. 2,900,000 Silver coin 400,000 • *£580,000,000 <• Gold coin & bullion 200,000 £580,200,000 £530,200.000 'Amount of fiduciary Issue. / . BANKING DEPARTMENT Capital .. £14,500,000 Govt, sccuRest .. 3,200,000 rities £106,000,000 Deposits— Advances Public .. 12,000,000 and other Bankers & - securities 26,300,000 other aqs. 156,000,000 Notes . . 53,100,000 Gold and . silver coin 900,000 £1.86,300,000 £186,300,000 ■> ' The principal items of the above return, compare as follows with those for last, woek, the xiroportion of the reserve being shown iu the last linos- — Deposits— Oct. 18 Oct. 25 Public .. £12,000,000 £12,600,000 Bankers .. 116,500,000 1.10,800,000 Other Accounts 38,500,000 39,200,000 £107,000,000 £108,000,000 Securities —' Government .. 107,500,000 106,000,000 Advances, etc. 3,200,000 4,000,000 Other /. 23,300,000 21,700,000 Reserve .. 50,700,000 54,000,000 Note circulation 530,300,000 527,100,000 Coin and bullion 1,000,000 1,100,000 Proportion .. 30.35 31.93 RATE OF DISCOUNT The Bank of England rate of discount is 2 per cent. It was reduced on September 21 from 4 per cent to 3 per cent. CONSOLS AND DOMINION STOCKS The following table gives quotations for consols and colonial inscribed stocks, compared with those of October 20: — Price Variation £ b d Consols, 2% por cent. GS 5 0 +35/-. Fund. Loan, 4, 1900-90 104 0 0 +SO/War Loan, 3 1 /,. 1952 .. 92 0 01 +lO/-. Con. Loan,, 3%, 19G1 92 10 0 +4O/-' Victory Bonds, 4 .. 103 10 0 +2O/Com'wcalth, 5, 1945-75 100 5 0 +4O/Com*wealth, 4, 1913-48 94 10 0 +4O/Com'wealth, 3%, 1918-53 88 10 0 +SO/Corn'wealth, 3%, 1956-61 76 5 0 +4O/Com'wcalth, 3, 1955-58 73 0 0 +4O/N.S.W., 3/j, 1930-50.. 86 10 0 +so'Victorian, 3, 1929-49 .. 81 10 0 +25/Victorian, -l 3 /*, 1940-60 97 5 0 +4O/Victorian, 5, 1915-75 . 9f\ 17 Q +47/0 Queensland, 3, 1922-47 88 0 0 +6O/Quecnsland, 5, 1940-60 99 5 0 +65/S.iAus., 3, 1910 or after 05 0 0 +2O/S. Australia, 5, 1915-75 100 2 6 +42/6 W. Australia, 4, 1912-62 86 10 0 +2o'Tasmania, 3%, 1920-40 101 0 0 +7/G Tasmania, 4, 1940-50 . 91 10 0 +2B/9 N.Z., 4 Va. 1918-58 .. 88 5 0 +65/N.Z., 3Vi, 1910 ' .. 101 2 6 +3/9 N.Z.. 3, 1915 . . 81 10 0 +3O/-;. lEx interest. NATIONAL INSURANCE INCOME AGAIN HIGHER DECLSNE IN SURPLUS DIVIDEND RATE UNCHANGED [BT TELEGRAPH —OWN CORRESPONDENT] DUNEbIN. Friday The annual report of the National Insurance Company of New Zealand, t Limited, shows that net income for the year ended September 30 amounted to £343,885. After making full provision for losses outstanding, there is an underwriting surplus of £20,291. Interest and rents, less income tax, amount to £29,173, and with the balance brought forward from last year of £37,499, the sum of £86,963 is available. An interim dividend of 4d a share was -paid in May, which absorbed £16,667, leaving available a balance of £70,296. ■ The directors have added £SOOO to the reserve fund and have written £7106 off tho company's premises. They now recommend .payment of a further dividend of 5d a share, requiring £20,833, making a total distribution for the year of 9d a share. The year's dividend absorbs £37,500, and £37,357 is carried forward.. The dividend, which is equal to 10 5-7 per cent, is unchanged. Results for the past three years compare as follows: — 1937 1938 1939 £ £ £ Net incomo .. 289,G79 321,117 343,885 Brt. forward .. 37.537 37,628 37.499 Surplus .. 20,169 26,u39 20.291 Int. and rents . 28,460 31,010 20,173 86,165 94,907 86,963 To reserves .. 6.500 18,000 5,000 Premises .. 4,537 1,908 7,106 Dividend, 10 5-7 p.C. .. 37,500 37,500 37,500 Car. forward .. 37,628 37,499 37,357 The paid capital of 'the company is £350.000 in 1,000,000 £1 shares paid to 7s each. ' D.I.C. STORES' PROFIT STEADY EARNINGS SHOWN* DIVIDENDS MAINTAINED [by TELEGRAPH —OWN correspondent] DUNEDIN, Friday Not profit of £38,099, as against £38,389 in the previous year, is reported by the Drapery and General Importing Company of New Zealand, Limited (D.1.C.), for the year ended August 20. Dividend has been maintained at 6 per cent on ordinary stocks j and 5 per cent on preference shares. Included in the appropriation account is the sum of £SOO for "contribution to patriotic funds." With £45.577 brought forward from last year, the total to the credit of tho profit and loss appropriation account is £83,676. The interim dividend on preference shares absorbed leaving £77,426 now available. The directors recommend the following appropriations:—To final dividend on preference shares, £6250; to . dividend on ordinary shares, £14,589; to addition to reserve, £9966; to allocation for contribution to patriotic funds at the discretion of the directors, £500; leaving ti bnlnnco to bo carried forward of £46,121. .Results in recont years are:—V 1937 1938 1939 Brought forward £40,500 £44,277 £45,577 Not profit .. 38,490 38,389 38.099 78,990 82,666 83,676 To rescrvo .. 7,630 10,000 9,966 To patriotic funds Dlvidrnds — Prof., 5 p.c. . 12,500 12,500 12,500 ,Ord., 6 p.c. .. 14,589 34,589 34,589 Carried forward 44,277 45,577 40.121 The paid capital of tho company, which trades in Dunedin, Christchnrch, Wellington and Wanganui, is £493,149. BRITISH BUTTER PURCHASE PARIS, Oct. 26 Britain has bought 2,000,0001b. of French butter.