RESERVE BANK RETURN

New Zealand Herald, Volume LXXVII, Issue 23700, 5 July 1940, Page 3

RESERVE BANK RETURN

STERLING £1,405,182 LOWER INCREASED ADVANCES TOTAL £1,499.886 HIGHER fcr [BY TELEGRAPH —rftESS ASSOCIATION*] WELLINGTON, Thursday The Reserve Bank return for the week ended Monday, July 1, was. gazetted to-night. The statement ,is balanced at £44,174,921, or £84,634 more than at the close of the previous week. The reserve of sterling exchange is. £1,405,182 lower in value than on the preceding Monday." Notes and other demand liabilities are £158,853 higher' in. the aggregate, a fall of £1,190,911' in Government deposits being largely offset by an increase of £1,098,886 in the. holdings of the trading banks. The ratio is 38.63 per cent, compared with 42.138 per cent the week before. Advances to the Primary Products Marketing Department are £49,886 higher, while those for other purposes have increased by £1,450,000. The statement with variations compared with the week before is as follows: — LIABILITIES £ £ Variation Gen. reserve .. 1,500,000 Same - Bank notes .. 18,705,324 +178,451 Demand liabilities— State . .. 5 303,935 -1,100,011 Banks . .. 17,313.078 +1,008,886 Other . . . 450,013 +72,427 Other currencies . 15,553 -575 Other liabilities . 705,218 -73,644 Total .. 4<1,174.021 +84,634 ASSETS £ * Eesenc— Gold .. .. 2,801,830 Sam« Sterling ex. .. 13,420,(544 -1,405,182 Subsidiary coin . 101,671 +4,083 Advances — Marketing .. 3,800,554 +49,886 Other . .. 21,210,000 +1,450,000 Investment .. 2,542,521 +3,019 Other assets .. 231,392, -17,172 Total .. 44,174,921 +,84,634 Proportion of reserve to notes and other demand liabilities. 38.63 per cent (42.138 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) 1910 3939 Variation Notes . .. 38,795 15,583 .+3,210 Deposits—• -~-y State .. 5.394 3,635 +3,750 Banks .. 37,314 9,324 +7.990 Exchange, .. 13,421 5,690 +7,731 Advances—■ Market in? .. 3,807 5.660 -1,853 Other ~ 21,210 10,475 Ratio (per cent) 35.03 31.329 j: +7.301

PAST YEAR'S RESULTS NET PROFIT OF £361,363 A not profit of £36] ,363 is shown in the accounts of the Reserve Bank of New Zealand for.the year ended March 31, which were gazetted last nightS This compares with £250.286 in the previous year and £195,811 in 1937-38. A sum of £250.236 lias been paid to the New Zealand Government in terms of section 36 of the Reserve Bank of New Zealand Act, 1933, this amount representing the balance of profit brought forward after the payment of £195,811 to the Government in the 1938-39-vea-

The balance of profit after making provision for rebate on Treasury,'bills not vet due and for sundry liabilities and contingencies was £516,664, against £359.188 a year ago. General charges, including salaries, rent, cost',,of note issue and other expenses, 'required £155,300, against £108,902. ,

j TRADE IN AUCKLAND GOOD ORDERS CONTINUE EASTERN STOCKS ARRIVING In spite of the rush of orders prior to the appearance.of the Budget, wholesale grocery merchants have been rather unexpectedly busy over the latter part of the current week. In the past two ' days stalls have been fully occupied with orders, largely from country districts, for early delivery. The demand is covering the usual range of available winter lines.

Goods ordered under fourth period licences are now beginning to come to hand, and the stock position in everyday requirements, with one or two notable exceptions, is fairly satisfactory. Consignments of canned pineapples are expected to reach Auckland shortly, and their arrival on practically a bare market will be -n-elconie.

A development arising out of the increase in the sales tax, which came into immediate effect, is the effort on the part of a number of manufacturers of proprietary lines, which sell in the shops at fixed prices, to maintain the established retail price. As a result, in certain cases packers' and manufacturers' prices have been reduced sufficiently so that the retailer will not ba involved in extra cost. Tea is one important line so affected, and packers' prices in practically all lines have been reduced by approximately lsd per lb. Wrapping Paper.—Supplies of wrapping paper remain difficult to procnre, ana. the manufacturers of kraft have announced a further increase of about i's a ton for rolls and flats. Dried Fruits. —The Australian Dried Fruits Control Board has notified an extension of deliveries of sultanas, currants and raisins to the end of July at unchanged prices. Eastern Coods.—Stocks of Eastern go6d3 are expected soon, arrivals including- rice, sago, tapioca and canned pineapples.'' The supplies of canned pineapples will be most welcome to the market, which was denuded of stock owinK to the prohibition of imports during the third period. Forthcoming arrivals are beinsr imported under fourth period licences.

Tea.—At the Colombo tea auction on July 2 the offering totalled -,000,0001b. Common and medium teas were in good demand, prices being: about Id per lb dearer at the close of the sale. Fine quality grades were irregular generally. For next week's sale 2,000,0001b have been catalogued.

Dates.—The latest information concerning new season's dates is that it is hoped to. make shipment from Basra toward the end of the year.

Wire Clothes-lines. Althoueh import licences were secured to obtain wire clotheslines, advices from England state that licences, to export the goods from there cannot be obtained and consequently none has been shipped. If orders can be executed later the business will be done only at the market rates then ruling. Mediterranean Products.—Owing to the con« ditions ruling, difficulties exist in obtaining Mediterranean products usually sought at this season of the year. Stocks of olive oil aro very low, and the prospect of further supplies is remote. Similarly, the usual supplies of almonds are unlikely to be forthcoming, while shipments of filberts and hazel kernels en route are reported to be held up.