TRADING BANKS.

Auckland Star, Volume LXVI, Issue 229, 27 September 1935, Page 9

TRADING BANKS.

FREE DEPOSITS FALL.

HIGH NiOTE CIRCULATION. ASSETS AND LIABILITIES. (By Telegraph.—(Parliamentary Reporter.) WELLINGTON, this day. Tho thirteenth monthly statement of tho six trading banks, bringing tho business up to August 26, was gazetted in tho Houso last night. Tho assets and liabilities aro fully set out and offer a comparison over a full year's trading sinco tho Rescrvo Bank camo into operation.

On August 26 there wero still outstanding notes of tho trading banks to tho amount of £057,889, which is more than £20,000 loss than on July 29. This ia in marked contrast with tho figure of £3,009,164 on August 27 of last year, when Reserve Bank notes had been available for only one month. Tho active noto circulation at tho end of August, comprising tho unreturned portion of tho trading bank issue, and Reserve Bank notep in tho hands of tho public, totalled £6,269,530, over £170,000 moro than in the July return, and approximately tho samo amount above the total a year earlier. Tho circulation is comparatively high, having been exceeded during tho year only by tho holiday periods at Christmas and Easter, when there was naturally an enhanced demand for cash currency. Tho position in tho latest return, compared with those a month before, three months, six months and a year earlier, is shown in tho following table:— 1934. T. Banks. R. Bank. Total. Aug. 27 . £3,000,104 £2,487,213 £6,000,377 1035. Fob. 25 . 021,417 5,207,842 0,180,250 May 27 . 783.087 5,423,723 0,170,810 July 20 . 081,030 5,411,827 0,003,406 Aug. 20 . 057,880 5,011,041 6,260,530 Fixed Deposits Rise. Free deposits or current account balances of tho banks in New Zealand totalled £24,778,818, a fall of moro than £400,000 compared with the level a month earlier. Thus tho progressive decrease sinco March has been continued during August. Tho fixed deposits, which have inclined to rise during the same period, were higher by some £390,000 in tho August return than they were at the end of July. A comparison of freo and fixed deposits and tho total of tho two at tho end of August and one month, three months, six months and a year earlier, ia as follows:— 1034. Froo. Fixed. Total. Aug. 27 £26,184,575 £40,203,006 £06,447,581 1035. Feb. 25 27,120,357 36,041,008 63,171,025 May 27 26,374,850 35,885,504 62,200,303 July 20 25,100,141 35,000,554 01,186,605 Aug. 26 24,778,818 30,382,220 01,101^038 Advances and Discounts. Tho advances and discounts at the date of tho return amounted to £46,339,960, or over £500,000 more than the level a month before. The steady rise in advances and tho accompanying fall in the oxcess of deposits over a period of, 12 months is shown in the following table, giving comparisons of the position a month, a quarter, six months and a year beforo tho latest statement: — Excosr of 1034. Deposits. Advances. Deposits. Aug. 27 £06,447,581 £41,261,010 £25,180,571 1035. Feb. 25 03,171,025 44,300,732 18,870,203 May 27 02,200,303 45,381,213 10,870.150 July 20 01,180,0115 45.800.015 15,287,080 Aug. 26 61,101,038 46,380,000 14,821,078 The following tendency shown by the value of London assets, which the banks hold in respect of New Zealand business, is continued in tho August return. Tho figure is over £850,000 below that returned at the end of July. Though the overseas assets hold elsewhere than in London have recovered to the extent of some £200,000 from the continuous declino recorded during many previous months, tho total of these assets held abroad is still some £600,000 less than it was at the end of July. Overseas Assets. The figures for the overseas assets compared at intervals of one month, three months, six and 12 months are as follow: — 1034. Tendon. Elsewhere. Total. Aug. 27 £11,171,087 £0,255,542 £20,427,520 1035. Feb. 25 15,209,780 7.351,003 22,051,380 May 27 18,740,113 0,242,044 24,080,057 July 20 18.034,034 5,807,053 23,841,087 Aug. 26 17,173,501 6,024,546 23,108,047

Tho subsidiary coin held at August 20 was valued at £815,744, compared with £675,449 at July 29 and £052,210 on August 27 last year.