TRADING BANKS

Gisborne Herald, Volume LXVII, Issue 20186, 2 March 1940, Page 8

TRADING BANKS

| JANUARY RETURN ADVANCES FALL FURTHER DEPOSITS RISING I EXCESS NOW £26,500,000 i The monthly statement of assets land liabilities of the six trading j banks at the close of business on '| Monday, January 20, has been j gazetted. A comparison of the prin- | eipal items with the figures in the ! j return at December 25 is as fol- | lows:— January December

I For the fourth successive month ; there has been a fall in the level ; i of advances, the decrease on this rloccasion being C 1,175,000, compared | with ,C 1,223.000 in the previous month. 11 Free deposits have shown a further i rise of £3.460,000, while fixed dei posits have shown a slight decline \ of approximately £139,000. The casing I off in trade following Christmas acI tivity is reflected in the note cirI culation, which is £2.292,000 lower , than it was at the end of December. London assets have advanced by> ’ £BIO,OOO from the previous month’s: , figures. Notes in Circulation 1 Notes of the Reserve wank held as till money on January 29 were valued ; at £4.980,086, compared with £3.005,030 the month before. The issue at the end of January was £18.314.450. making the active circulation £13,- [ 334,370. I The issue and circulation at the end of January in the past four - years have been: —

f j Free deposits, or current account <j balances, are sonic £8.024.000 highci ! than in the January return last ) year, indicating that funds are still ) accumulating to an exceptional dei gree on current account. Fixed dc- ) posits are also about £1.793.000 higher I than at the corresponding period last l year. i The levels of the Uvo classes of deposits and their totals in the January leturns from 1930 onward • are ns follows:--

Advances and Deposits Advances at the end of Januaty were some .C15,225,00'.) lower than the level recorded a year previously ann the total is considerably lower than it was at the beginning of 1938. Further evidence of reduced business activity is provided by the fact that the excess of deposits over advance; has risen from £9.923.000 in January, 1939. to more than £2(1.500,000 last month. The position at the end of January in the past six years is shown in the j following table: —

Overseas Assets Fluctuations in the value of assets ■held abroad, in London and elsewhere on account of New Zealand business, as shown in the January returns since 1035 have been as follows:

Overseas liabilities on account of v> w Zealand business total £3,149,524 in the Januarv statement, the demand liabilities being £2,(106,345 and the time liabilities £543.179. The aggregate He lire in the December return was £2,772,104. Subsidiary coin in the banks at January 29 was valued at £771.380. compared with £590.997 in the December return. The banks also held gold valued at £595 at the end of January.

Circulation £ 13,334.370 £ 15,020,495 Free Deposits .. 44,799,071 41,339,891 Fixed Deposits .. 31,727,398 31,800,405 Advances 49,901.831 51,137,390 London Assets . . 8.973,230 8,150,913

Jan., Issue £ Circulation £ 1937 .. 13,008,392 8,355,153 1938 1939 . 14,240,044 9,000,812 . . 15,305,858 10,975,132 19J0 .. 18,314,450 13.334,370

Free Fixed Total .Inn. £ £ £ 82.300,926 1935 . 25,85(1.510 38,444,410 1930 . 28.827.915 37.033,007 65.801,522 1937 . 35.020,901 32.949,080 67.969.98! 1937 .. 3(i.l8(i.259 31.831.858 67,817.917 1939 . 3(i,175,87(i 29,934.32(1 06.110,202 1940 . 44.799,871 31,727,398 76.527,009

Deposits Advances Excess of Deposits Jan. ,e £ £ in:« .. (12.300.921) 44,798,852 17,502.074 1930 .. 05,1501.522 45.049.334 20,212,188 19157 .. 07.909.981 47.410,049 20.553.332 19.'58 .. 07.817.917 53.313,050 14.504.807 1939 .. GO,MO,202 50.187.030 9,923.100 1949 . . 70.527.009 49,901.831 20.505,238

London Elsewhere Total Ian. £ £ £ 1935 . . 12,234.355 7.897,234 20,131.589 1936 11.149,879 6,183.192 17,333,071 1937 .. 7.361.885 5.221,770 12.583,655 1938 . . 5.739.073 3.439,731 9,178.804 1939 .. 4.170.664 1.794.070 5,964.734 1940 .. 8,973,230 2,067,353 11,040.583