THE MONEY MARKET.

Auckland Star, Volume LIX, Issue 236, 5 October 1928, Page 4

THE MONEY MARKET.

BANK OF ENGLAND RETURNS. GOLD GOING OUT. LONDON, October 4. The Bank of England returns for the week ended October 4, as compared with those for the week ended September 27, are as follow:— Oct. 4. Sep. 27. £ £ Note circulation .. 135,001.000 134.405,000 Coin 168,226,000 173,205,000 Notes in reserve .. 50,470,000 55,825,000 Govt, deposits .... 10,006,000 9,694,000 Other deposits .... 102,440,000 103,741,000 Govt, securities .. 37,110,000 31,681,000 Other securities .. 40,667,000 41,578,000 Proportion of reserve to liabilities 47.10 51.50

SHORT LOANS AND BILLS.

Short loans, 3} per cent, same as last week, and three months' bills. 41 per cent, compare with 4 3-16 per cent last week. The bapk rate remains at 4M per cent, as compared with the American rate of 5 per cent. There has been a substantial drain on the banks' coin holding during the, week, approximately £5,000,000. Some has gone to America, obviously attracted by the higher rates ruling there, and some to the Continent. The demand for financing autumn supplies of wheat, cotton, etc., is now commencing, and although the bank is still holding supplies of metal considerably above normal, it may be found necessary, should the exoclus of gold continue, to raise the bank rate.

SLUMP IN STERLING

(Australian and N.Z. Press Association.) NEW YORK, October 4. The New York money market is quiet. The foreign exchange market is featured by a sharp slump in sterling to a new low record for the year and far below the point whereat gold can be purchased in London without loss. The sterling dropped to 4.84 13-16 for cables, but the decline is accompanied by extreme strength iu futures, particularly in December option, which held obstinately at 4.86 spread between all futures and spot rate widening.

NEW YORK CALL RATES.

(Australian and X.Z. Press Association.) (Received 10 a.m.) NEW YORK, October 4. closed Tvl P ° e P r e cett at PCT CCnt and (Published Dy Arrangement.) TOBACCO BHARES. Attractive Investment. re, is now available and immediate tion should be made Tor same PPl,ca " By sendin? your name and' address to the undersigned brokers a Tree prospectus will be rewarded to you. Undoubtedly there is big- money in tobacco. Writ? to-day. Or&anisin? Brokers, United Brokers Ltd., Box 1520, Auckland.