RESERVE BANK RETURN

Southland Times, Issue 23893, 11 August 1939, Page 3

RESERVE BANK RETURN

ANOTHER DROP IN EXCHANGE MARKETING ADVANCES HIGHER (Special to The Times) WELLINGTON, August 10. A reduction of £426,003 in the sterling exchange held by the Reserve Bank is shown in the return for the week ended August 7. The previous week the exchange had fallen by £19,053. State deposits are £389,084 lower; those of the trading banks showing a rise of £9980. An increase of £295,624 is shown in advances to the Primary Products Marketing Department. Advances to the State for other purposes remain stationary at the record level of £13,250,000. The return, with variations compared with the previous week, is as follows:— LIABILITIES

Proportion of reserve to notes and other demand liabilities, 26.795 per cent. (28.132 per cent, last week). Sterling exchange is expressed in New Zealand currency. 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)

Sterling exchange held by the Reserve Bank for the last 12 months as at the first week of the month showed

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

SYDNEY PRODUCE MARKETS (Received August 10, 8.25 p.m.) SYDNEY, August 10. The wheat market is dull and lifeless, with prices still very low. Silo grain is quoted at 2/2J a bushel and bagged at 2/s|. Other quotations:— Flour.—£l2/15/- a ton. Bran and Pollard.—£4/5/- a ton. Potatoes.—Tasmanian, £2l a ton; others, £l9. Or ions.—Egyptian brown £29 a ton; Victorian brown, £26. Maize.—Yellow, 4/- a bushel; white, 4/2. COLOMBO TEA AUCTION J. Rattray and Son, Ltd., Invercargill, reports having received the following cabled report of the tea auction held in Colombo on Tuesday:— “Moderate supplies of good quality teas offered with strong demand for all grades; prices firm and unchanged for I common teas; medium and fine kinds showed ? ( d advance; quantity, 1,750,0001 b; next sale 1,750,0001 b.”

Varla- £ tion £ General reserve 1,500.000 same Bank notes 15,587.527 —105,837 Demand liabilities— State 2,574,368 —389,084 Banks 10.773.440 + 9,980 Other 474,213 + 267,656 Other currencies 72,332 same Other liabilities 442,011 + 15,598 1 ■ ■ - TOTAL 31,423,891 —101,687 ASSETS £ Variation £ ReserveGold 2,801,839 same Sterling exchange 5,150,954 —426,003 Subsidiary coin 226,918 —226 Advances— Marketing Dept. 5,983,951 +295,624 Other 13,250,000 same Investments 3,741,415 —7,048 Other assets 168,815 —64,033 TOTAL 31,423,891 —101,687

Varta1939 1938 tion. £ £ £ Notes 15,588 13,592 +1,996 Deposits— State 2,574 4,888 —2,314 Banks 10,773 6,265 + 4,508 Exchange 5,151 14,594 —9,443 Advances— Marketing 5,980 3,759 + 2,225 Other 13.250 2,600 + 10,650 Investments 3,741 2,732 + 1,009 Ratio (per cent.) 26.795 69.11 —42.315

the following variations: — 1938 £(N.Z.> August 1 15,322,308 September 5 12,638,656 October 3 10,594,978 November 7 6,633,031 December 5 4,200,856 1939 January 2 4,017.232 February 6 4,074,954 March 6 4,705,897 April 3 4,663,310 May 1 4,817,992 June 5 5,882.308 July 3 5,690.004 August 7 5,150,954

1938 Per cent. August 1 69.249 September 5 65.847 October 3 57.259 November 7 39.733 December 5 29.834 1939 January 2 26.13 February 6 25.047 March 6 25.017 April 3 25.942 May 1 25.815 June 5 29.655 July 3 31.329 August 7 26.795