MONEY AND BUSINESS AFFAIRS.

Manawatu Standard, Volume LVIII, Issue 227, 24 August 1938, Page 5

MONEY AND BUSINESS AFFAIRS.

TRADING BANK RETURNS. (By “H.J.K.”) The returns of the. trading banks for the month of July show that both classes of deposits have declined as compared with the preceding month, although the drop is not very large. The demand deposits on July 25 amounted to £34,785,160, as compared with £35,062,662 at the end of June, a decrease of £276,897. At the close of March last the demand deposits amounted to £37,006,216. Compared with the position at the end of March last the demand deposits are lower by £2,221,086.

The time deposits at the end of July totalled £30,796,441, as against £31,108,048 at the end of June, a shrinkage of £311,607. However, the time deposits have shown very little fluctuation during the year. The demand and_ time deposits together at the end of July totalled £65,581,601, as against £66,170,710, at the end of June, a contraction of £589,109. In March last the total of the deposits was £68,230,883, because in that month the sales of produce were coming to hand. A comparison between July and March is not a reliable guide. The advances and discounts combined at £54,707,482 show a decrease of about £176,000 compared with June. At the end of March last the total was £55,837,453. It is very probable that the advances will continue to decrease, for there is now a distinct tendency for imports to contract. In the two months of May and June the imports were less by about £664,000. There was a slight increase in the active note circulation, the figure as at July 25 being £9.575,365 as compared with £9,524,726 at the end of June, an increase of £50,639. The London funds of the trading banks at the end of last month were £7,261,211, against £8,308,790, a decrease of just "over £1,000,000. The Reserve Bank figures for the week ended August 15 show a small increase on the week of £40,065 in the London funds. In the previous week the sterling exchange w r as at its lowest level since the Reserve Bank opened for business on August 1. 1934. The advances to the Primary Products Marketing Board are less by £471,032 at £3,287,250, compared with the preceding week. Except for this shrinkage the advances to the State arc as large as ever.

The public accounts for the first quarter of the financial year reflect in some measure the shrinkage in imports that occurred in May and June. The Customs revenue for the quarter totalled £2,422.471. as compared with £2,500,272 iu the June quarter of last year, a decrease of nearly £IOO,OOO. The sales tax for the quarter ended June last totalled £845,184, against £886,786, a. decrease of over £41.000. Highways revenue is less by about £15,000, and stamp duties less by £BO,000. The deficits in these sections are likely to increase. Strange as it may seem, the income tax collection increased by £260,000. This is believed to lie due to arrears from last year coming in, but this is not likely to be repeated. THE WORLD POSITION.

The world position as regards financial affairs is rather obscure. The position of the French franc is still a mystery, but M. Daladier (the Prime Minister) is determined not to interfere with the movements. The demand for gold that has been experienced recently has brought to light the still enormous volume of hoarded gold in India. Gold worth 34 lakhs of rupees was shipped from Bombay during the week ended June 25. A small consignment of the metal was sent to Mombassa,. but the rest apparently went to London, and consisted mainly of gold sovereigns. The position in Germany is apparently rather serious. The. joint stock companies have to pass to the State the bulk of their profits, and so shareholders are receiving no dividends. .Under the circumstances shares are not w,orth holding, hence they are heing thrown on the market at bargain prices. It is now reported that there is a recovery on the Berlin Bourse, but the business passing is very small. London business men canupt be flurried or driven into excitement. They look at things calmly and at the bright side whenever possible. Business in Britain is moving slowly in sympathy with world conditions. Improvement in the'United States would be soon reflected in the United Kingdom. but unfortunately American economics: are far from satisfactory. However, so long as the tension lasts, in Europe it is futile to look for economic improvement and betterment in trade. LADY MILLIONAIRES.

A social and political fact of significance is the number of extremely wealthy women in Great Britain. Out of a list of the fifty wealthiest citizens in the‘ country to-day it is said that more than- half, are women. What is more, women would predominate even among the top dozen richest people of all. What concerns the serious sociologist in considering these facts is that in every case these huge feminine fortunes were not self-made in any way, but inherited either from husbands. or other male relations. It is doubtful whether even in America the proportion of women amongst the millionaires is so high as it is in Britain at present.- Now' that women are fully enfranchised - and money counts for so much the enormous influence this situation concentrates in feminine hands is obvious. To take only one instance, the pre-war suffragette campaign was mainly financed by wealthy women. It is probable that the same is true to-dav of other highly controversial political movements, especially of a pacifist nature.