BANK of FINLAND Mo NTH LY B U LLETI N
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The Finnish State Railways in 1931, p~ 22. Revision of the Finnish State Railway Tariff, p. 28. BANK OF FINLAND Mo NTH LY B U LLETI N I-vol. XVIII. No. 11 NOVEMBER 1938 THE FINNISH MARKET REVIEW. THE MONEY MARKET. million marks to 1,458., millions. The position The temporary tightening of the Finnish of the Joint Stock banks is still very easy and money market, provoked at the end of Septem their cash is larg·er than is advantageous from ber by the political situation abr·oad, gave way the point of view of profit earning. rapidly in October. It is evident, however, that As usual at this time of year, the foreign the abundance of cash that has existed for a balances of the J·oin t Stock banks decreased long 'bime is now falling off as a consequence of considerably in October. As their foreign in the development of tendencies of depression. debtedness grew simultaneously, their net The accumulation of capital hRS declined and foreign balance fell off by 100.9 million marks the indices of industrial production for the to 179.0 millions. third quarter of this year record an appreciable In the position of the Ban"k of Finland the drop. The index of the volume of industry most striking feature is the reduction in credits was 173 as against 184 for the same period last granted. In October the total credits of the year, while the index of the value of <industrial Bank decreased by 138.1 million marks 'and the production fell from 209 to 159. The ,setback decrease continued during the first fortnight in refers princip·ally to the exporting industries, November by 37.4 millions. This reduction is the output of the home market industries hav par'tly due to usual seasonal phenomena, the ing for the present remained at the same level repayment of export credits, and partly to the a'S a year ago. issue of some new bond loans. The total credits The total deposits in the Joint Stoc"k ban"ks of the Bank amounted to 1,339.5 million marks decreased in October by 115.8 million marks to on November 15th and were thus still appre 10,721., millions. This reduction was chiefly crably larger than in the previous years. The due to deposits made by other credit institu return flow of bank notes wa·s larger than usual tions, which fell off by 165.4 million marks, an in October owing to the increase in the note indication of their more stringent position. The circulation in the previous month evoked by the actual deposi1t,s of the public were also slightly danger of war. The reduction in the note reduced, while on the other hand cheque ac circulation amounted to 98.6 million marks in counts recorded an increase of 62.8 million October and to 58.2 millions during the firs't marks: At the s'ame time the credits granted half of November. Thanks to the oomp·aratively by the Joint Stock banks increased by 37.2 favourable balance of trade during the autumn million marks to 9,263.0 millions. In this way the balances of the Bank of Finland with its the surplus of deposins was reduced by 153.0 foreign correspondents increased in October by 2 No. 11, 1938 48.8 and at the beginning of November by 34.5 exports amounting to 121.5 million marks as milli'on marks and were, at 2,146.1 millions, against 38.3 millions in September and 55.1 rarther larger than -a year ago. Finally, it should millions in October, 1937. be mentioned that the note reserve, which had The position of the timber market did not dropped during the summer to 205.0 million undergo any great change. The demand is marks ,at th·e end of August, has since increased still small, but prices are firm and contracts considerably, so that in the middle of November were made at slightly higher prices. The pros it ·amounted to 403.8 millions. pects for next year are uncertain. Stocks in The level of prices did not experience any Great Britain have been reduced appreciably ~ great change in October. The Finnish price but for psychological reasons the demand does indices recorded a small rise in general, though not seem to be in conformity with the statistical the level of prices is lower than last year. The position. Up to the end of October exports price index for articles of import remained un of ,sawn timber 'amounted to 661,300 ,standards. altered, but the index for articles of export representing a reduction of 176,600 standards recorded a drop of 1 point. As the latter index or 21 per cent since last year. At its meetings was 91 points a's against 93 points for articles on N,ovember 16th and 17th ,the E. T. E. 0_ of import, the tendency of prices has become (European Timber Exporters' Convention) dis unfavourable to this country. cussed the question of fresh restricti'ons of output, bm at the time of writing a definite TRADE AND INDUSTRY. deci,sion had not been ·arrived at. The state of the market for cellulose and Foreign trade was ,slightly livelier in October paper is unchanged. Stocks are heavy and than in September, though less than at the demand is insignificant, so that competition is same time la-st year. The value of exports very keen. On November 1st representatives of amounted to 881.7 million marks in comparison the sulphite cellulose industry in Finland, Den with 793.8 milli'Ons in September and 999.1 mark and Sweden resolved· ,to put the agreement millions in October last year. The value of they had concluded earlier into ef£em with imports ,amounted to 760.2 million marks as regard to restricting output byaUowing the against 755.5 millions in September, but 944.0 mills to ,stand idle for 8 weeks during the latter millions in October, 1937. The reduction in half of 1938 and for 7 weeks during the first exports was mainly due to the fact that exports half 'Of 1939. of timber and wooden articles dropped from As the sawmill and woodworking industry 513.6 million marks in October, 1937, to 394.5 holds considerable stocks of raw materials, it millions during the same'month this year. How is estimated that timber felling during the ever, the course of the value of exports of 1938-1939 season will only amount to· about ani~al f'Oodstuffs and paper and pulp products half the previous year's quantity, which was moved in the ,same direction. With regard to qf record proportions. the reduction in imports, this was contributed to by imports of raw materials to the extent THE LABOUR MARKET. of 98.6 millions, imports of machinery and The state of the labour market continues means of transport 'Of 57.7 millions 'and imports satisfactory. In some -spheres there i,s even a of finished industrial articles of 29.3 millions. shortage of skilled labour. However, the ex On the other hand imports of foodstuffs 'and pected tendency towards a deteriorati'On in the luxuries were 1.8 million marks larger than posif1;ion is beginning to be evident, for the in the same month last year. number of unemployed registered at the labour The balance of trade proved unexpectedly exchanges increased in October by 850 to 4,040 favourable in October, there being a surplus of in comparison with 3,700 a year ago. No. 11, 1938 3 CONTENTS OF THE TABLES. I. MONEY MARKET. m. TRADE AND INDUSTRY. Bank ot Finland: 22. Va.lue of imports and exports. 1. Weekly Statement. 23. Va.lue of imports and exports in different classes 2. Note issue. of goods. 3. Notes in circulation and foreign correspondents. 24. Imports of the most important articles. 4. Ordinary cover, note reserve and home loans. 25. Exports »»» » » 5. Re-discounted bills and balances of current 26. Foreign trade with various countries. accounts. 27. Value index of imports and exports. 6. Rates of exchange. 28. Volume index of imports and exports. Joint Stock banks: 29. Total sales of some wholesale firms. 7. Home deposits. 30. Volume index of industrial production. 8. Home loans. 31. Building activity. 9. Position towards foreign countries. 10. Foreign Payment Position of all Banks. IV. TRAFFIC. 11. Clearing. 32. Foreign shipping. 12. Deposits in the Savillgs Banks. 33. Passenger traffic between Finland and foreign 13. Deposits in Post Office Savings Bank and in Co- countries. operative Credit Societies. 34. State Railways. 14. Deposits in Consumers' Co-operative Societies. 15. Insurances in life assurance companies. 16. Changes in number and capita.l of limited compa V. LEVEL OF PRICES. nies. 35_ Wholesale price index. 17. Stock Exchange. Bankruptcies. Protested bills. 36. Cost of li'\1lIlg index. 18. Stock Exchange index. 37. Bank of Finland consumption price index. II. STATE FINANCES. VI. LABOUR MARKET. 19. Public Debt. 38. Index of working hours in industry. 20. State Revenue and Expenditure_ 39. Number of unemployed. 21. Collection of Customs and Excise dues. 40. Cessation of work. SOME ARTICLES IN EARLmR ISSUES OF BANK OF FINLAND MONTHLY BULLETIN. 1936 No.6. Measures for combating the 'Agricultural 1937 No.8. The New National Pensions Law. Depression in FinJand. 9. The Present Outlook in the Finnish Wood » » 7. The Historical Foundation of Finland's working Industries. Northern Orientation. » Finland's Ba.lance of Payments for 1935. » The Level of Wages in Finnish Industry » 8. The Finnish State Railways in 1928-1935.