MONEY MOVING.

Auckland Star, Volume LXVIII, Issue 150, 26 June 1937, Page 14

MONEY MOVING.

BANKING RETURNS. INCREASE IN ADVANCES. MORE NOTES CIRCULATED. A freer movement of money ie indicated in the monthly statement of assets and liabilities of the six trading banks at the close of business on Monday, May 31. Compared with a year ago note circulation is higher, free deposits have increased, while fixed deposits have decreased and advances to customers show a substantial rise. The ] net result of these changes indicates more confidence on the part of the trading community and a greater readiness to launch out into fresh developments and new enterprise*. A comparison of the principal items at the end of May in the past three years is shown in the following table: — 1937. 193(5. 1935. £ £ £. May. (000's.) (000's.) (000's.) Circulation . . 9.040 7,104 (1.177 Free deposits . 3(i,(>07 31.584 26.375 Fixed deposits 32.50(1 36,075 35,885 Advances 48,033 44,971 45,381 London assets 11,858 16,701 18,740 Notes of the Reserve Bank, held as till money by the banks on May 31 were valued at £3,934,516. The complete issue at the date of the return was £12,974.590, so that the sum of £9,040,074 represents the active circulation, notes actually in the hands of the public. This is an increase of nearly £320,000 compared with the figure at the end of the previous month. The total is, however, some £800,000 smaller than that at the end of March, when the Easter holiday demand was still active..

Advances and Discounts. The movement*? of advances (including discounts) and deposits over 12 months are compared in the following table, which gives the latest figures, compared with those a month, a quarter, a half year and a year previously:—

Excess of Deposits. Advances. Deposits. 1936. £ £ £ May 25 68,258,954 44.970,Wi 23.285.15S Nov. 30 62,572,301 49,511,618 13,060,683 1937. Feb. 22 69.337,451 45,759,288 23.578.163 Apl. 2G 70.982,608 47,485,065 23.497.543 May 31 69,172,919 48,033,164 21,139,755

The decline in the excess of deposits is seasonal. At this time of year exports aTe at their lowest ebb, while merchants require accommodation for imports needed for next season's trade.

Overseas Funds. This factor is also reflected in the position of the funds held in London. The value of assets he.ld in London on account of New Zealand business is £696.000 less than it was at the end of April. It is nearly £5.000,000 below the level at the end of May last year. In the meantime the banks have lost the handling of the export dairy business, while imports have continued to increase.

The figures showing the assets held, both in London and elsewhere, on Xew Zealand account, compared at intervals of one month, three, six; and twelve months, are as follow.— *

i ft «» London. Elsewhere. Total. lJoo. £ £ £ May 25 16,700,923 6.158.044 22 858 967 10W? B'4l8' 414 ' 3;i5 ".-"1.537 1 3 ; 8 55;592 of- ,5'52S«$2S 5-»B«.7JH 13.894.762 Apl. 2«, 12,;,03.776 5.076,523 17 630 "An May 31 11,857,865 4,983,080 I^WmS