RESERVE BANK

Grey River Argus, 3 August 1940, Page 9

RESERVE BANK

June Summary BANKING AND BUSINESS The statistical summary of the Reserve Bank of New Zealand for June, 1940, sets out in “form at a glance” the financial condition of the Dominion in figures and graphs. Material supplementary to that collected 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; for 1939, £16,082,000. For week ended July 15, 1940, £19,075,000. Sterling exchange average for 1938, £13,689,000; for 1939, £5,312,000; for July 15 1940, £13,135,000.

Advances to the State for marketing average, 1938, £4,555,000; for 1939, £6,095,000; for July 15, 1940. £3,654,000.

Advances to the State for purposes other than marketing average, 1938, £3,620,000; for 1939, £13,597,000; for the last Monday in February, 1940, £22,310,000; for J'uly 15, 1940. £21,310,000. Active bank-note circulation in month of June, 1938, £9,525,000; 1939, £11,532,000; 1940, £14,878,000. ‘Average demand and time deposits with the trading banks and advances and discounts by them for the month of June are compared as follows:—

Advances made by. the trading banks are classified as follows, being for the last Monday in the quarter:— March, 1939. March, 1940.

advances £54,748,000 £47,955,000 Industries include dairy fa-ctories, meat, and woollen companies.

Savings banks snow that the Post Office for the years ended at March 31, 1937 and 1938, had excess of deposits over withdrawals amounting to £3,635,000 and £3,412,000 respectively, but for 1939 and 1940 the withdrawals exceeded the deposits by £4,163,000 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 exceeded 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 Deteember, 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. and 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.

Demand. Time. Advances June. £ £ £ 1938 .. . 34,930,000 30,824,000 55,927,000 1939 .. . 38,043,000 30,178,000 54,242,000 1940 .. . 49,113,000 31,387,000 47,457,000

Advances. £ £ Farmers . 18,455,000 17,090,000 Industries . 7,256,000 7,347,000

ivianuia I turing 4,318,000 4,190,000 Merchants 4,895,000 2,970,000 Retailers 3,601,000 3,026,000 Transport 718,000 660,000 Others .... 15,506,000 12,671,000 Total - ——