RESERVE BANK RETURN

New Zealand Herald, Volume LXXVII, Issue 23617, 29 March 1940, Page 3

RESERVE BANK RETURN

STERLING £897,451 HIGHER TOTAL NOW £13,034,000 [ill' TELEGRAPH —Fit ESS ASSOCIATION] WELLINGTON, Thursday The Reserve Rank return for the week ended Monday, March 25, was gazetted to-night. Tho statement is balanced at £41,541,609, or £91,860 more than at the closo of the previous week. At £13,033,981 tho sterling exchange reserve is £897,451 higher in value than in last week's statement. A considerable movement in notes and other demand liabilities leaves tho aggregate £102,544 higher, a fall of £2,034,893 in Government deposits being almost balanced by an increase of £2,016,808 in the holdings of the trading banks. The ratio is 40.410 per cent, compared with 38.192 per cent in tho week before. There has been an increase of £167,340 in the level of advances to the Primary Products Marketing Department. Those for other purposes are lower by £900,000. The statement with variations compared with tho week before is as follows: LIABILITIES Variation C £ General rcservo .. 1,500,000 Same Hank notes .. 38,3 <O,OOO + ,55,730 Demand liabilities — State .. .. 0,782,071 -0,034.803 Hanks .. .. 13,80(5,005 +2.01(5,80S Other .. .. 100,170 + 13,811 Other currencies .. 13.0M3 +0 Other liabilities 804,00.3 +7,305 Total . .. 41,511,000 +OI,BOO ASSETS Reserve — Gold .. .. 2.801,830 Same Sterling Ex. .. 13,033,081 +807,151 Subsidiary coin .. 159,872 +BB Adva rices— Marketing 3,445,102 +1(57,340 Other .. .. 18,(5(50,OOO -000,000 Investment . .. 3,115,008 +2i)(i Other assets .. 201,517 -73,315 Total . .. 41,541,(500 +01,8(50 Proportion of reserve to notes and other demand liabilities, 40.410 per cent (38.192 last week). The principal items in this week's return are compared with those at the corresponding date last year in the following table: (000's omitted) 1010 1030 Variation £ £ £ Notes .. 18.379 15,334 +3,015 Deposits— State 0,783 3,817 +2,0(50 ' Hanks J 13,80(1 9,011 +4,855 Exchange .. 13,034 4,0(50 +8,374 Advances— Marketing . 3,445 7,431 -3,080 Other .. 18,000 12,000 +0,(500 Ratio (percent) . 40.410 25.419 +14,991 FUTURE OF GOLD ENHANCED IMPORTANCE CRY FOR DOLLAR EXCHANGE NEED OF GREATER PRODUCTION The importance to-day of gold in the national economy was emphasised by Sir Colin Fraser, president of the Australian Mines and Metals Associa- [ tion, when addressing the annual meeting at Melbourne last week. The impost of 50 per cent of the amount received by the producer of gold placed on the metal bv the Commonwealth Government in excess of £9 a fine ounce represented, Sir Colin Fraser pointed out, a tax of 15s an ounce taking the price at £lO 10s Australian. The tax payable by producers for the current year would amount io approximately £1,250,000, a sunt equivalent to 63 per cent of the total amount of dividends paid by goldmining companies in 1939. Low-Grade Ores Maintenance of the goldmining industry on anything like its present scale, he said, is dependent on its ability to deal profitably with lowergrado ores than have been mined in the past. The severity of the tax on low-grade mines should be recognised and must in many cases render low-,, grade ores uneconomical to mine and treat. For this reason, tho Commonwealth* Government's scheme should certainly have included provision for the appropriation of portion of the tax collected for financing or subsidising through tho States sound plans to raise the gold output by an increase of plant capacity and by expanding prospecting and developmental work on low-grade ore deposits. Gold Reserve Plan "A cry for dollar exchange is a cry for more gold," Sir Colin continued, "and a strong appeal should be made to tho industry to produce more gold." The Federal Government should assist the industry through the State Governments by using part of the gold tax to augment gold production. "1 have strongly advocated tho creation of a gold reserve by Australia against such an emergency as we are now facing," he declared, "and have referred to the gain which .1 firmly believed would be made by replacing as far as possible all sterling balances by gold. Had we adopted this course, the present acute shortage in our dollar resources would not have arisen. 1 recommend these facts regarding gold to those responsible for the administration of our financial system. Gold is perhaps the only product in the world the production of which is everywhere unrestricted, and the use of which by private individuals is almost entirely prohibited. The more the credit system is expanded tho greater will he the demand for gold."

TIIE MARKET BASKET APPLE PRICES LOW ORANGES VERY SCARCE Apple prices remain low, Cox's Orange Pippin and Ividd's Orange Hod now selling at 51b. for Is. Tomatoes aro 2d per 11) dearer. Plums are unavailable, while oranges are very scarce. Hed cabbages and Brussels sprouts havo made their appearance. Prices are: — Fruit.—Apples, cookers, 2d and 3d per II); Cox's Orange Pippin, 3d; Kidd'e Orange Red, 3d; also .Mb for Is; oranges, Jamaican. Is (id to lis 2d a dozen; lemons. <>. 8 and 12 for Is; trraj>ofruit, Jamaican, -Id and ">d each; tonintors, host quality, (id to 8(1 per It); cooking tomatoes, <ld; bananas, fid; peaches, cooking, Is (id to 2s a dozen; dessert, .'is to Is; watermelons, lid per lt>>; dessert pears, -id to (id; hothouso grapes, Gros Coleman. 2s to ;is; Hamburg, Is to Is Oil: outdoor, To Kauwhata, Is io Is 3d. VoßOtables. —Kumaras, fresh, local. 3d per lb; green onions, 2d; rhubarb. 3d to (id n bundle; spring onions, 2d a bunch; radish, 2d; cabbages, Oil to Is each; red cabbages, (id to Is; cauliflowers, 8d to Is; Brussels sprouts. 1s 'ld tier lb; lettuce, 2d and 3d each; silver beet, 2d a bunch, spinach, 2d and 3d; marrows. Id to 8d each: potatoes, Id to 1 V.,d per lb; carrots. 3d; parsnips, -Id; cucumbers. Id to (id each; apple cucumbern. 2d and 3d; green peas. Id and (id per lb; beans, fid and (id; beetroot, 2d a bunch; pumpkin, red. 2d per lb; sweet corn. 3d and Id a cob; celery, (id to lOd a stick; turnips, white, 2d a bunch; swedes, 2d per lb. Butter and Checso. —Butter, factory, first grade, Is (i'/ad per lb; second. Is (id; farm butter, Is -Id; cheese, mild. Is 2d; tasty, Is Oil.

Eggs.—Hen, A grade, 2s 8d a dozen; B grade, 2s Gd; duck, A (trade. 2s 3d; 13 grado, 2s.