BANKING IN NEW ZEALAND
HIGH LEVEL OF DEBITS STATISTICAL REVIEW FOR DECEMBER The average weekly value of New Zealand bank debits to individual customers’ account during December was £18,521,343, an exceptionally high figure, states the Monthly Abstract of Statistics for January. The seasonal peak level in bank debits is usually reached in the early months of the year, February, March, and April being normally the nigh months. It is noteworthy, therefore, that the, figure for December, 1936, is the highest recorded for any month since March, 1930. Monthly statistics of bank debits have been collected since April, 1928; and it is of interest to note that the December, 1936, figure has ; been .exceededin only three months during that period (February and March of 1929, and March of 1930). The volume of cheque transactions is a particularly significant indicator of the state of business, so that the very high figure recorded for December may be regarded as indicating exceptional buoyancy in business activity in the. Dominion., NOTE CIRCULATION. Statistics of note circulation are oi particular interest for the _ evidence they afford of available spending power among wage-earners and others who do not use the cheque facilities of the bank to any considerable extent. The note circulation has risen very substantially in recent months. Normally the note circulation falls off somewhat in Julv, August, and September, as would be expected in the slack months of the year in respect of farming and other industries subject to, a winter and early spring _ decline. In 1936, however, substantial increases in the ■note circulation were recorded in August and September. The note circulation fell from a weekly average of £7,383,898 in March to £7,245,540 in May, and was lower still (£7,208,514) in July. In August, however, an increase to £7,566,949 was recorded, a fact, which may b© attributed mainly to restoration, by legislative _ action of' pre-existing cuts in salaries and wages. The buoyancy in the note circulation has continued in each successive month since . August, the weekly average in December being as high as £9,043,996; This figure is the highest on record —in fact, each monthly average from August onwards has constituted a fresh rbcord. Special interest attaches to the note circulation during Christmas week for the evidence it affords of shopping expenditure during that week and prospective holiday expenditure. It is of interest to record that the average note circulation in Christmas week of 1936 was £10,443,224, as compared with £8,262,077 in that week of 1935 and, £7,597,348 in the corresponding week of 1934. BANK DEPOSITS. The average amount on deposit'with the trading banks during December was £63,229,472, an increase of 1.4 per cent, over the average for November, but on a level with the figure for December of the previous year. There has been a marked change in the composition of bank deposits during the year. Deposits on current account were £3,447,614 higher in December, 1936, than a year previously, while fixed deposits were £3,980,312 lower. The ratio of free to fixed deposits increased from 64.10 per cent, in December, 1935, to 81.59 per cent, in December, 1936. Overseas funds (on account of New Zealand business) of all banks operating in New Zealand totalled £(N.Z.)36,088,539 at the end of December, 1935, rising to £(N.Z.)45,257,016 by the end of March, with the flush of the exporting season. the following months the total fell considerably, the off-season fall in exports combined with increased imports contributing to the fall. Debt repayments in London on Government account also accounted for a substantial proportion of the decrease in London funds, which stood at £(N.Z.)28,080,537 on December 28, 1936. DIVIDEND PAYMENTS INCREASE IN CANADA Improving economic conditions were reflected by the dividend payments of Canadian corporations during November, when the amount paid out was 7 per cent, higher than it was in the same month of the previous year. The total payments for the first 11 months of 1936 increased by 15 per cent, compared with those Tor the corresponding period of 1935. Distributions for the month of November amounted to 3,852,810 dollars (approximately £963,200), compared with 3,588,424 dollars (approximately £897,100) in November, 1935. The total for the first 11 months of 1936 was reported at 183,615,838 dollars (approximately £45,903,960), compared with 159,543,235 dollars , (approximately £39,883,300) in the first 11 months of 1935. Although the month of November is normally one of the lightest for dividend disbursements, the majority of Canadian companies ending their fiscal years wjth the calendar year and paying dividends each calendar quarter, on this occasion the increase in the total for the month was due in some measure to extras paid along with regular dividends, increased rates, and initial distributions.
AUSTRALIAN STOCK EXCHANGES Press Association—By Telegraph—Copyright SYDNEY, February 19. The investment market was firm, with a heavy turnover, while base metal producing concerns are still advancing on the Stock Exchange.
MELBOURNE. February 19. There was heavy trading in Barriers and Mount Lyells at rising prices, and industrials generally were better, with Coles prominent. Howard Smith’s were up on the dividend increase, and tin shares had a better demand.
£ s. d. Bank of New South "Wales 37 2 6 Commercial Banking of Sydney 23 1 0 Commercial Bank of Australia 0 19 6 Bank of New Zealand 2 i 6 Colonial Sugar 43 7 6 Associated News ... ; 1 4 3 Burns, Philp 4 0 6 British Tobacco ... 2 13 6 Coles 5 10 0 Toohey’s ... 1 17 0 Drug Houses ]. 8 3 Drug Houses (New Zealand delivery) 1 8 3 Goldsbrough, Mort 1 18 6 Wilcox, Mofflin ... ... ... 0 12 8 Morris Hcdstrom 1 10 0 Electrolytic Zinc 3 0 6 Electrolytic Zinc (pref.) ... 3 2 9 Anthony Hordern 1 0 10J Henry Jones ... 2 7 3 Newbold Brick 1 16 0 Gordon and Gotch ... ... 2 11 9 Mount Morgan ... ... 0 17 3 Kuala Kampar 1 3 0 Larut 0 19 6 Emperor 0 19 9 Lady Shenton 0 0 10
National Bank t£5 paid) £ 7 s. 16 d. 0 Union Bank 11 0 0 Howard Smith 1 4 0 British Tobacco 2 13 3 Coles 5 10 0 Drue Houses 1 8 1* Australian Iron and Steel (pref.) ] 7 6 Dunlop Perdriau 0 19 6 Goldsbrough, Mort ... 1 18 6 Electrolytic Zinc 3 0 6 Electrolytic Zinc (pref.) 3 2 6 Younghusband (rights) 0 5 6 Hume Pipe 1 1 6 General Motors 1 4 6 Kauri Timber 1 4 3 Tongkah Compound ... 1 11 0 Mount Morgan 0 17 3 Mount Lyell 2 10 0 Broken Hill Proprietary 4 6 6 North Broken Hill ... 4 3 0 South Broken Hill ... 2 12 0 Zinc Corporation 8 5 0 Emperor 1 0 0 Loloma 1 3 7i
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Bibliographic details
Evening Star, Issue 22578, 20 February 1937, Page 12
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1,111BANKING IN NEW ZEALAND Evening Star, Issue 22578, 20 February 1937, Page 12
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