RESERVE BANK

Evening Post, Volume CXXX, Issue 26, 30 July 1940, Page 10

RESERVE BANK

JUNE SUMMARY

BANKING AND BUSINESS

"Evening Post," July 30. The statistical summary of the Re- l serve Bank of New Zealand for June, j;] 1940, is received. It sets out in "form , at a glance" the financial condition of j the Dominion in figures and graphs. ] supplementary to that col-,] lected by the institution itself is compiled from returns by the Customs ] Department, other Government Departments, and the trading banks. Prominent points in the summary are as follows: — Bank-notes, weekly averages for 1937 £13;093,000; for 1938, £14,073,000; ■Jf&or^^Ysfliot; 19fS July 15 1940, £13,135,000. Advances to the State for marketing average, 1938, £4,555,000; for 1939, ; Artive bank-note circulation in mon&oi j!!?e. 1938. S^OOO; 1939 > £11,532,000; 1940, £14,878,000. Average demand and time deposits with the trading banks and advances Sd discounts by them for the month .of June are compared as follows.— ' Demand! Time. Advances. 1 T93B* 34,930^000 30,824,000.: 55,927,000 1939 'I 38 043 000 30,178,000 54 212.000 1940 .-.. 49,113,000 31,387,000 47,407,Q00 - Advances made by the trading banks are classified as follows, being for the last Monday in the quarter:— March, 1939. March, 1940. HE-::::: "«K» "388 Hsr** - isas ss» SH-:::::: 3«» 3SK others ;... ::.:..• 15,506,000 12,671,000 Total advances . £54,748,000 £47,955,000 Industries includes dairy factories, meat, and woollen companies.. - Savings banks show that the Post Office for the years ended at March 31, • 1937 and 1938, had excess of detjosits over withdrawals amounting to £3,635,000 and £3,412,000 respectively; but for 1939 and 1940 the withdrawals exceeded the deposits by £4163,000 and £4,312,000 respectively. This excess of withdrawals continued month by month, as shown in the summary, from January, 1939, to January of this year, when the deposits again exceeded withdrawals, by £150,000, and so continued to April, when they amounted to £635,000. But for May, 1940, the withdrawals once more ex- ' ceeded deposits and that by £207,000. However, depositors' credit balances — ' although they reached £63,147,000 in 1938, and declined to £55,937,000 in December, 1939—have kept at around £58,500,000 for the period March to .May, 1940. .-,'",■ Trustee savings bank credit balances have varied but little since 1938, the lowest being £13,339,000, in that year, and the highest £13,983,000 for April, 1940, arid they amounted to £13,898,000 for the month following. Taking 1930 prices at 100 as a basis, wholesale prices have advanced by 22.1 per cent., and retail prices by 4.6 per , cent., as shown in the summary.