FREE SPENDING.

Auckland Star, Volume LXIX, Issue 225, 23 September 1938, Page 8

FREE SPENDING.

MONEY PLENTIFUL.

BANKS' HEAVY ADVANCES.

RETURNS FOR AUGUST

The trend of recent months was continued during August, according to the monthly statement of assets and liabilities of the six trading banks at tlie close of business on Monday, August 29. Money is still circulating freely. Rank advances are at high levels and the only weakness in the monetary position is a further reduction in the holding of London funds.

I his is the time of year whin export receipts are at their" lowest and the community requires more assistance from the banks. Compared with a year ago. advances are up by over £o,ooo*ooo. This increase is due "to the fact that improved financial conditions in the past twelve months have provided the banks with more opportunities to lend their funds on satisfactory security. A comparison of the principal items with, the corresponding figures in the ,Julv< return is as follows:—

: ~, ~. Aujrust. .Tniv. Circulation £9,897,360 £') 57.", 365 J'.ree deposits .. .>3,710,441 34,785 100 lixed deposits . 30.fi.-,4.04.1 :'.O 7!>6 441 . Advances 55,645.844 54.7U748-> London assets . 5.835,691 7,201.211 Notes in Circulation. • Notes of the Reserve Bank held as ! till nionev on August *2» were valued > at £3.798,850. compared with £3,988.307 ' a month before. Tlie August 29 issue 1 totalled £13.696.210, making the active circulation £9,897,300. The issue and circulation at the end of August in the past three years have been:— August Issue Circulation J io2- li- 148 - 294 7,791.289 193 i .... 12,793,755 9,119 976 19,18 .... 13,696,216 9,897,360 Deposits and Advances. The position at the end of August in the past five years is shown in the following table:—• T , . Excess- of Deposits Advances Deposits AIIR. £ £ - " ® c -447,581 41,261,010 25,186 571 193; i.. 61.161.038 46,339,960 14,82l!o78 JRoli •• C 4.799.999 45,825.860 18 974 139 '" « 'J?? 0 4 "T475,817 17.553.863 i 1938 . . 64,.-.6.1,086 55,645,844 8.719,242 i Free deposits or current balances in j the latest term total £33,710,441, a slight increase over those of a year ago, whilst fixed deposits at £30,654,645 £re I lower by £2,700,000. Overseas Assets. Fluctuations in the value of assets held abroad on account of New Zealand business shown in the Au<mst returns since 1934 have been as follows : London Elsewhere Total ' UJT. £ £ £ Vno- •• U'? 71 - 987 9,225,542 20.427.529 }*& •• 17.173,501 6,024,546 23 198 047 1937 ' " Mofio ??"' 5 - 957 - 12 * 20.395>16 |qo J •• 4,293.700 13.563,250 ' 1938 .. «>,535,691 2,895,691 8,731,382 i London funds are unusually low, > chiefly due to the call on the banks in ' financing heavy imports. Prior to 1937 ( London funds included credits accruing I from the dairy export trade, which has s since been handled by the Reserve Bank, i