BANK DEPOSIT RATES

New Zealand Herald, Volume LXXVII, Issue 23574, 7 February 1940, Page 7

BANK DEPOSIT RATES

AUSTRALIAN REDUCTION TREND TO CHEAPER MONEY POSITION IN. NEW* ZEALAND .Reflecting tlie trend toward cheaper money which has become apparent in recent months' in both. New Zealand and Australia', interest rates on fixed deposits in the Commonwealth were reduced by i per cent per annum toward the end of last month. This movement was the first for over four years. The rates now quoted in Australia are:—Three months, If per cent per annum; six months, 2J per cent; 12 months, 2£ per cent; two years, 2f per cent.

Hanging circles in Auckland state that they have no . knowledge of a similar movement in interest rates in New Zealand, although the question has been in their minds for several months. The "position in New Zealand is rather more complicated, { as the Reserve Bank has held interest rates jnoro strictly than has the Commonwealth Bank.

The opinion was expressed that interest rates should bo reduced if the rule of supply and, demand for money was followed. At the moment there is plenty of freo money in New Zealand, the last figures issued by > the trading banks showing that deposits exceeded advances by £22,000,000.

Thero is no doubt that credit should be plentiful in New Zealand during the next 12 months. Merchants are experiencing great difficulty in replacing stocks and, with few avenues for investment, the money normally expended in this manner is being left idle. Some firms have turned their attention to the investment market, and this is reflected in the fact that the return on Government loans is now below 4 per cent for the first time for a long period. The move is regarded in Australia as being in the right direction, as it will have a weakening influence on overdraft rates. This would cheapen money and facilitate the raising of loans by the Federal Government.

THE CITY MARKETS

APPLES TEMPORARILY SHORT VEGETABLES IN GOOD SUPPLY , •——* i t There was a temporary shortage of npples at the City Markets yesterday, good quality dessert fruit selling to a good demand. Outdoor tomatoes were ill ever-supply nnd poor quality fruit proved practically impossible to quit. Owing to tho prevalence of brown rot nectarines met a poor inquiry. Values for peaches eased, and the inquiry for plums was only fair. The fruit market generally was dull. Potatoes were a glut on the market, while cabbages, in over-supply, sold at very low rates. Cauliflowers came forward in good supplies and realised recent rates. Prices wore very high for new season's kumaras, which were in short supply. Low values resulted for large quantities of pumpkins, while there was a glut of cucumbers. Rates were: —

FRUIT Apples, Albany Beauty, extra choice, Ss to lis a case; others, 5s to <s; Grjivenstein, extra choice, Ss to 9s; others, Os to (is; cookers, 5s Gd to 7s; pears, Uon Chretien, 7s (id to Os Gd; tomatoes, outdoor, extra choice. 2s 6d to 4s; others, Is Gd to 2s; smooth, 2s fid to ss; oranges, Jamaican, 24s Gd to 20s Gd> lemons, according to grade and count, Gs Gd to 15s' Gd; bananas, ripe. 22s to 20s; grapes, H.H. Hamburg, extra choice, Is (Id Uo Is Od per lb; others, »d to Is 3d; peaches, cases, choice, 3s Gd to 4s Od a case; crates, 7s Gd to Os a crate; cases, others, 3s to 4s a case; crates, 103 to 12s (id a crate; plums, Burbank, 2s to 3s a case; Satsuinu, 3s to 4s; Purple King, 4s to (is; Boris, 4s to ss; .greengage, ss: nectarines, choice, 4s lid to (is; apricots. South Island, 8s to Os; strawberries. Captain Cook, extra choice, is 8d to 2s Id a chip; others, IS 4d to Is (id; blackberries, loose, about (Id per Jb; chips, 7d to Od a chip: raspberries, Ss (id to Os a tin; black currants, lis to 12s Sd a case. | FIELD PRODUCE Beetroot. Gd to Is a dor-en; celery, dessert, 2s (id to 3s a bundle; carrots, 3s to 4s Gd a bap. or od to Is 3d a dozen; cauliflowers, 5s to 8s a sack; cabbages. Is to 4s; cucumbers, 3d to Od a dozen; French beans, 2s to 3s a bag; stringless beans, 4s to 8s Gd; green peas, 3s to 10s: kumaras, new season's, 5d to Gd per lb; leeks, 3d to (Id a bundle: lettuce, 2s to 4s Gd a case; marrows, 2s Gil to 4s a sack; onions, 4s to 5s a bag; potatoes. Ohaknne, Is to 4s Gd; local No. 1, 2s to 3s: No. 2, is to Is Gd; pumpkins, choice ripe warren, 5s to 8s per cwt; medium, 3s to 4s (id a sack; parsnips, 3s to 4s a bag, or Is to Is 3d a dozen; radish, lid to Od; rhubarb, Is Gd to 2s Gd; spinach, Is Gd to 2s Gd; spring onions, Od to Is 3d a bundle; swedes, 2s to 3s a bag; turnips, Gd to Od a dozen. POULTRY Cockerels, heavy breeds, priino, 5s to 7s each; not prime, 2s to 3s: prime, 2s to 3s 3d; not prime, Is up; fat liens, heavy, 2s Od to 3s (id; light, Is 3d to Is Od; pullets, heavy, best, 5s to 7s; smaller, 2s up; drakes, young, prime, 2s to 3s; smaller, Is Gd up. BUTTER AND EGGS Eggs, hen. first grade, 2s OVid a dozen; B grade, Is lO'/ad; C grade, Is 3Va(i; duck, first grade, Is O'/ad; B grade, Is B'/id; C grade, Is 2Vid. Butter, is to Is 4d per lb.

HEAVY SHEEP TRAFFIC j ACTIVITY IN JVAIKATO [i'UOM Otlll OWN COHItESI'ONIIENT] HAMILTON, Tuesday Large consignments of store sheep from outside districts are being handled by the Railway Department's Waikato services, and trainloads of 3000 sheep at a time are passing through. One consignment of 3000 was taken by rail from Ohakune to Rotoi;na, wlulo <l7 trucks of breeding ewes were delivered at I'Yankton from Tanranga, where they had arrived by boat from Gisborne. Ewes for sale in the Waikato are expected this week from tho Wellington .Province, the number running into nearly 10,000. In addition tho, fat sheep trade is very busy, and thousands of animals nre sont daily from all parts of the Waikato" to freezing works at Horotiu and Westfield.

BANK OF. NEW ZEALAND The last day on which the returning officer can receive voting papers from Dominion shareholders in the Bank of New Zea}anrl for the election of a shareholders' representative on the hoard of directors is February 10. TJio extension of time granted by Order-in-Council applies only to shareholders on the London register.

DUNEDIN BREWERY CALL

[llY TETJOGIIAI'II —I'IIKSS ASSOCIATION] • • DUNEDIIsr, Tuesday Tho Dunedin Brewery and Wilson's Malt Extract Company, Limited, announces a final call of Gs a share, due oil March 1. This is tho final c,ill on a new issuo of 25,000 shares of £1 each made in 1938. t NEW COMPANY The following privato company has been registered yi Auckland: — Hardy's Mines, Limited, miners. Capital, £15,000 in 5s shares. Subscribers: J. IJ. Mitchell, "500 shares; Y. TTardy, 40,500; T. A. Felton, 6000j H. £. Folton, 6000. *