RESERVE BANK RETURN

Southland Times, Issue 23651, 28 October 1938, Page 3

RESERVE BANK RETURN

STERLING EXCHANGE LOWER

INCREASE IN STATE BORROWING

(Special to The Times) WELLINGTON. October 27.

A reduction of £804,755 in the sterling exchange held as assets by the Reserve Bank of New Zealand is shown in the return for the week ended Monday, October 24, compared with last week’s return. Twelve months ago the amount was £17,595,334; this week it stood at £8,313,575. A big drop of £2,255,016 in State deposits is recorded compared with the previous return, and there is a reduction of £88,666 in the deposits held by the trading banks. Advances to the Primary Products Marketing Department total £3,859,205, a reduction of £27,536 compared with last week, but advances for other purposes have risen by £900,000. The increase in this item compared with a year ago is £5,950,000. The proportion of reserve has fallen from 52.27 per cent, to 48.451 per cent. A year ago it was 78.861 per cent. The statement, with variations compared with the week before, is as follows:—

Proportion of reserve to notes and other demand liabilities, 48.451 per cent. (52.27 per cent, last week). , The principal items in this weeks return arq compared with at the corresponding date last year in the following table:—

STERLING EXCHANGE FALLING Sterling exchange held by the Reserve Bank for the past 12 months as at the first week of the month showed the following variations:—

The proportion of reserve (less reserve liabilities in currencies other than New Zealand currency) as at the beginning of each month for the past year has been as follows: —

THE METAL MARKET

(Received October 27, 6.30 p.m.) LONDON, October 26. Metals are quoted as follows:— H Oct . 25 Oct. 26 £sd £ s d

COLOMBO TEA AUCTION

J Rattray and Son Ltd.. Invercargill, have received the following cabled report of the tea auction held in Colombo on Tuesday: . “Offerings show seasonal improvement in quality; market for common teas firm, medium and fine kinds showing advances of id to Jd per lb; quantity, 1,500,0001 b; next sale, 1,750,0001 b.

LIABILITIES £ Variation £ Gen. reserve 1,500,000 Same Bank notes 14,349,893 4-442,228 Demand liabilities — —2,255,016 State 2,878,486 Banks 5,361,290 —88,666 Other 316,239 4-49,161 Other currencies 17,040 —7,229 Other liabilities 267,718 4-116,696 TOTAL 24,690,667 4-257,275 ASSETS £ £ Reserve— Gold 2,801,791 Same Sterling ex. 8,313,575 —804,755 Subsidiary coin 222,310 —1,990 Advances— Marketing 3,859,205 —27,536 Other 6,450,000 -f- 900,000 Investments 2,732,065 Same Other assets 311,721 4-191,556 TOTAL 24,690,667 4-257,275

(OOO's omitted) Varia1938 1937 tion £ £ £ Notes 14,350 13,274 + 1,076 Deposits— State 2,878 4,861 —1,983 Banks 5,361 7,389 —2,028 t Exchange 8,314 17,595 —9,281 Advances— Marketing 3,859 3,766 +93 Other ■ • 6,450 500 + 5,950 Ratio (per cent.) 48.51 78.861 30.351

1937. £ (N.Z.) August 2 20,876,822 September 6 18,794,615 October 4 17,462,300 November 1 17,148,967 December 6 16,184,928 1938 January 3 16,414,909 February 7 15,700,699 March 7 15,617,116 April 4 16,169,496 May 2 17,627,443 June 6 17,801,586 July 4 15,941,567 August 1 15,322,308 September 5 12,638,656 October 3 10,594,978 October 10 9,960,235 October 17 9,118,330 October 24 8,313,575

1937 Per cent. October 4 78.339 November 1 76.083 December 6 73.89 1938. January 3 70.088 February 7 67.039 March 7 66.019 April 4 May 2 75,542 79.569 June 6 77.906 July 4 76.181 August 1 69.249 September 5 65.847 October 3 57.259 October 10 57.903 October 17 52.27 October 24 48.451

Copper— Standard, spot 46 8 Hi 46 18 I 1 ,2 Forward 46 11 10'/2 47 3 l J i Electrolytic to 52 53 10 0 0 0 52 53 15 15 0 0 Wire bars 53 0 0 53 15 0 Lead— 16 8 9 16 13 9 Spot Forward 16 10 7 >4 16 15 7*4 Spelter15 10 0 15 10 0 Forward 15 11 10','2 15 10 7‘,2 Tin211 0 0 212 5 0 Forward 212 2 6 213 6 3 Silver— Fine, per oz 19 ll-16d 19%d Standard, per oz 21 >,4d 21 . 3-160