N.Z.’S OVERSEAS ASSETS RECOVER TO PASS £100M

Press, Volume XCIII, Issue 27992, 12 June 1956, Page 17

N.Z.’S OVERSEAS ASSETS RECOVER TO PASS £100M

Net overseas assets of the New Zealand banking system totalled £ 100.1 m on May 30.* according to preliminary figures issued by the Reserve Bank. This is the highest figure since July 13 last year, and represents a recovery of £ 37.5 m from the low point of £62.6m reached on January 4 this year. On May 25 last year the total was £ 100.5 m, and on June 1 it was £ 99.8 m. The total of net overseas assets held by the Reserve Bank and by the trading banks on the last balance date in May in the last six years is as follows: £m 1951 .. .. 114.4 1952 .. .. 77.1 1953 .. .. 117.1 1954 .. .. 139.0 1955 .. .. 100.5 1956 .. .. 100.1 In 1951 the figure rose £B.9m between the end of May and the end of June: the next year it fell £2.5m. and in subsequent years it rose £.4m. £.2m and £3.lm respectively. A further modest increase in June this year seems likely. The annual peak in this item normally occurs during June Overdrafts Fall Sharply Overdrafts fell £6.5m in the week ended May 23. At that date advances

by trading banks totalled £ I/I.om—-£ 15.4 m below the 1956 peak, reached on April 18. Last year the figure was £ 16.6 m below the 1956 peak, reached on April 11. At May 25 last advances and discounts totalled £ 186.9 m. # Net balances at the Reserve Bank totalled £ 57.1 m on May 23, and borrowings of £5.3m were necessitated to maintain the statutory minimum deposits. The previous week net balances totalled £ 47.7 m and borrowings £ 12.8 m, a month earlier the figures were £ 43.7 m and £5.6m, and a year earlier they were £ 39.1 m and £5.3m. Net balances held by the trading banks at the Reserve Bank this year have varied between £ 26.5 m (on March 28) and £69.7m (on February 22). Borrowing ranged from nil (February 29 and March 7) to £ 13.2 m on January 4. when a Treasury deposit of £3m with the Reserve Bank was credited to the trading banks.N.Z. Industrial Gases, Ltd.— The directors recommend unchanged dividends of 6 per cent, ordinary and 4J per cent preference. New shares do not participate.— (P.A.) Consolidated Metal Industries, Ltd— Recommended ordinary dividend is 81 per cent., compared with 71 per cent, paid W year.—(PA.) *