TRADING BANKS

Manawatu Standard, Volume LV, Issue 257, 27 September 1935, Page 7

TRADING BANKS

DECREASE IN LONDON FUNDS. INCREASE IN ADVANCES. WELLINGTON, Sept. 27. A further substantial increase in advances and discounts, a decrease in free deposits, a rise in fixed deposits, an increase in note circulation, and a decrease in London funds, are the features of the monthly statement of assets and liabilities of the six trading banks in New Zealand, showing the position r,s at the close of business on August 26. Furnished in accordance with the provisions of the Reserve Bank Act, 1933, the statement, which was gazetted last night, shows the following aggregate figures in respect of the six banks :

NOTE CIRCULATION HIGHER. The active note circulation in tie Dominion on August 26 was £6,269,530, an increase of £176,064, compared with the total of £6,093,466 on July 29. The current, note circulation was the highest since April. The position ot the note circulation at August 26, compared with that at the dates of other returns issued since July, 1934, is shown in the following table: Trading Reserve Banks. Bank. Total. £ £ £

MOVEMENTS IN DEBOSITS. ,: Tlie demand liabilities, or free deposits in New Zealand of the trading banks on August 26, amounted to £24,778,818, a decrease, of £41.7,323 since July 29, and a total decrease of £2,895,047, since March 25, the total of £27,673,865 on that date being the highest figure recorded since August, 1934. A substantial increase of £391,666 is shown in the trading banks’ time liabilities or fixed deposits in New Zealand, the total on August 26 being £36,382.220. During the eight months to March 25 fixed deposits showed a progressive decline, the total on that date being £35,454,703. Since then, however, there has been a net increase of £927,517. Fixed deposits on August 26 were £4.210,154 less than lire total on July 30, 1934. A comparison of the free and fixed deposits and the totals of the two at intervals since July 30, 1934, is as follows:

The demand liabilities of the trading banks elsewhere than in New Zealand in respect of New Zealand business totalled £430,062 bn August 26, compared with £512,229 on July 29, a decrease of £82,167. Time liabilities elsewhere than in New Zealand ill respect of New Zealand business totalled £1,123,492 on August 26, compared with £1,137,664 on July 29, a decrease of £14,172.

FURTHER INCREASE IN ADVANCES. Tho advances and discounts of the six trading banks in New Zealand as at August 26, totalled £46,339,960, which is the highest level reached since July, 1934, and shows an increase of £1,167,776 since June 24. The increase is indicative of more active trading conditions. The relative positions of advances and deposits at different periods since July 30, 1934, are shown in the following table: Excess of Deposits. Advances, deposits. 1934. £ £ £

The excess of total deposit's over advances and discounts, £14,821,078, is the lowest level reached since July, 1034, when the figure was £21,128,375. The ratio of advances to deposits on August 26 was 75.76 per cent., compared with 75.015 per cent, on July 29, 73.15 per cent, on June 24, and 72.’88 per cent, on May 27. OVERSEAS FUND LOWER. A further sharp decrease of £860,533, making a total decline of £1,509,293 since June 24, is shown in the trading banks’ London funds, .which amounted to £17,173,501 on August 26. Other overseas assets in respect of New Zealand business held elsewhere than in London on August 26 totalled £6,024,546, an increase of £216,593 since July 29. The total overseas assets of the trading banks in. respect of New Zealand business as at August 26 totalled £23,-. 198,047, a net decrease of £2,149,970 since April 29, when the total of £25,'348,017 was the highest since July, 1934. The present position is indicative of the revival in the Dominion’s import trade. The totals of the banks’ overseas assets in respect of New Zealand business as shown by the monthly returns

since July 30, 1934, compare as fol low:

CREDIT. (a) Demand liabilities in N.Z. £ 24,778,818 (b) Time liabilities in N.Z. ... 36,382,220 (e) Demand liabilities else where than in New Zealand incurred in respect of New Zealand business 430,062 (d) Time liabilities elsewhere than in New Zealand incurred in respect of New Zealand business 1,123,492 (c) Notes of own issue in circulation payable in N.Z. ... 657,889 Total £63,372,481 DEBIT. (e) Reserve balances held in the Reserve Bank of New Zealand £ 4,453,654 (f) Overseas assets in respect of New Zealand business — (1) In London 17,173,501 (2) Elsewhere than in London 6,024,546 (s) (1) Gold and gold bullion held in Now Zealand . 628 (2) Subsidiary coin held in New Zealand 815,744 (h) Advances and discounts in New Zealand 46,339,960 (i) Reserve Bank of New Zealand notes .'. 3,157,721 Total £77,965,754

1934. July 30 ... 6.220,241 — 6.220,241 Aug-. 27 ... 3,609,164 2,287,213 6,096,377 Sept. 24 .. 2,716,064 3,467.607 6,183,671 Dec. 31 ... 1,486,235 5,355,588 6,841,823 1935. . Jen. 28 ... 1,043,443 5,043,487 . 6,086,930 Feb. 25 ... 921,417 5,267.842 6,189.259 Mar. 25 .. 854,640 5.382,889 6,237,529 Apr. 29 ... 800,302 5,579.093 6,379,395 May 27 ... 753,087 5,423.723 6,176,810 June 24 ... 710.068 5,396,892 6,106,960 July 29 ... 681,639 5,411,827 6,093,466 Aug. 26 . 657,889 5,611,641 6,269,530

Free Fixed deposits. deposits. Total. 1934. £ £ £ July 30 .. . 24.621,606 40.592.374 65,213.980 Oct: 29 .. . 24,025,030 39,045,737 63,070,767 1935. Jan. 23 .. . 25.856,510 36.444.416 62,300.926 Fob. 25 .. . 27.129,357 36,041.668 63,171,025 Mar. 25 .. , 27,673,865 35,454.703 63,128.568 Apr. 29 ... . 27.095,334 35.755,004 62.850,338 May 27 ... . 26,374,859 35.885.504 62,260.363 June 24 ... . 25,921,898 35,826,533 61,748.431 July 29 ... , 25,196,141 35,990,554 61,186,695 Aug. 26 . 24,778,818 36,382,220 61,161,038

July 30 ... 65,213,980 44,085,005 21,128,375 Oct. 29 .. . 63,070,767 43,539,544 19,531,223 iyoo. Jan. 28 .. . 62,300,926 44,798,852 17,502,074 Feb. 25 ... . 63,171,025 44,300,732 18,870,293 Mar. 25 .. , 63,128,568 44,573,365 18,555,203 Apr. 29 ... : 62,850,338 45,400,708 17,449,630 May 27 ... . 62,260,363 45,381,213 16,879,150 Juno 24 ... . 61,748,431 45,172,184 16,576,247 July 29 ... 61,186,685 45,899,615 15,287,080 Aug. 26 . 61,161,038 46,339,960 14,821,078

London. Elsewhere. Total. 1934. £ £ £ July 30 .. . 8,821,538 8,359,977 17,181,515 Aug. 27 .. . 11,171,987 9,255,542 20,427,529 Sept. 24 .. . 7,751,171 9,129.641 16,880,812 Oct. 29 .. . 10,494,570 8,948,811 19,443,381 Nov. 26 .. . 10,120,868 9,069,119 19,189,987 Dec. 31 .. . 10,618,323 8,924,254 19,542,582 1935. Jan. 28 .. . 12,234,355 7,897,234 20.131,589 Feb. 25 .. . 15,299,786 7,351,603 22,651.389 Mar. 25 . . 16,605,200 7,312,980 23,918,180 .Apr. 29 ... . 18,266.133 7,081.884 25,348.017 May 27 ... . 18.746!113 6,242,944 24,989,057 June 24 ... 18.682,794 5,813,844 24,496,638 July 29 .. 18,034,034 5,807,953 23,841,987 Aug. 26 . 17,173,501 6,024,546 23,198,047