TRADING BANKS

New Zealand Herald, Volume LXXII, Issue 22071, 29 March 1935, Page 14

TRADING BANKS

'FEBRUARY STATEMENT i * NOTE ISSUE REDUCTION TOTAL DOWN TO £921,000 HEAVY OVERSEAS ASSETS tBY TELEGKAPH—OWN CORRESPONDENT] WELLINGTON. Thursday Tho monthly statement of assets and liabilities of the six trading banks, showing the position at tho close of business* on Monday, February 25, was gazetted to-night. Furnished in accordance with the provisions of the Reserve Bank Act, the statement, taken in conjunction with the seven previously issued, /shows various monetary movements within the framework of tho present/banking structure. Since January 2S, when tho last statement was compiled, there has been a decrease of £122,026 in the value of trading bank notes still outstanding. The total stood at £921,417- ,on February 25; against £6/220,211 at the date when tho Reserve Bank issue began to replace the other notes. Tho active note circulation, made up of tho notes of the trading banks,.; and that part, of tho Reserve ■ Bank issue in tho hands of tho public, was? £6,189,259 at February.2s. Itin-'.. creased 'by some £IOO,OOO .compared with the level at January 28,- but .was still more than £600,000 lower than on. December, 31, when the demands of theholiday sbason had swelled the circulation. The position at February 25, compared with those at the dateis of the earlier returns was as shown in the' following table: — > • " T. Brinks R. Bank Total July 30 .. £6.220,241 Au". 27 .. 3,609,164 2.487,21.3 ' 6,096.377 Sept. 2i .. -2.716,064 3.467,607 8»1§3,671 Oct 29 .1 2.206.305 3,834,663 6,040.068. Nov 26 .. 1,346.297 4.242.478 ' 6.088,770 Dec. 31 .. 1.456.235 5,355,588 6.841,823 Jan 28 .. 1,043,443 5,043.487 6,086,930 Feb'. 25 . 921.117 5,267.842 6,1.89,253 Movements ol Deposits . , ' The demand liabilities or current account balances in New Zealand of the banks amounted to £27,129,357 on February 25/ This was £1,272,847 greater j than the figure at January 28, which, : in turn was £1,679.066 higher than the level 'on December 31. The February total is the highest since tho Reserve Bank began business, being little short of £1,000,000 greater than the previous, highest, on August 27. There has been a further fall of some £-100,000 in the fixed deposit total, which has decreased continuously since the first of these returns, was issued. A comparison of the free and fixed deposits and the totals of the two at intervals since July 30 is as follows:-' i Free Fixed Total | July 30 . . £24,621.606 £40,592,374 £65,213,950 \uc 27 .. 26,184,575 40,263,006 66.447.551 'Sep 24 .. 25.771,320 39.586.720 65,358,040 Oct." 29 .. 24,025,030 39,045,737 63,070,767 Nov 26 .. 23,835,044 38,065.565 61,900,609 Bee *3l .. 24,177.444 36,762,124 60,0351,568 Jan 28 .. 25,856.510 36.444.416 62.300,026 Feb. 25 . . 27,129.357 36,041,668 63,171.025 The advances and discounts on Febrhary 25 amounted to £44,300,732, or £498,i20 less than at January 28. This is the second-: decrease since December 31, when, the highest figure since the returns';'began was recorded. The relative positions of advances and deposits in tho various returns are as follows: # Excess of ' Deposits Advan'ces Deposits July 30 .. £65.213,980 £44,085.605 £21,128,375 Ail" 27 66,447,581 41,261,010 25,186,571 S"n '24 .» 65,358,040 41.603,073 23.754.967 Oct 2!) .. 63,070,767 43.539,544 19.531,223 Nov. 26 .. 61,900,609 44,417,637 17,482.072 Dec 31 .. 60.939,568 44,903,506 16,036,062 Jan." 28 .. 62.U00.026 44.798,852 17,502,074 Feb. 25 ./ 63,171,025 44,300.732 18,870,29 i Assets Held Abroad The London assets in respect of New Zealand business held by tho banks at Februarv 25 were valued at £15.299,786. This total is just over £3,000.000 greater than the last, previous figure, on January 28, and substantially' tho highest since the Reserve Bank began to operate. At July 30, just before the new system began, these 'London assets stood at £8,821,538. Though there were some downward fluctuations in the succeeding months, • the general tendency has been for the total to increase, up to the high, level now recorded. The recent downward tendency or similar overseas assets held elsewhere than in London is continued in the latest .return. The value there shown, £7,351,603, is the lowest since the issue of these statements began. The -totals of theso overseas assets of the six banks as shown in the. returns since the snd of July are: London Elsewhere- Total July 30 J. £8,821,538 £8.359,977 £17,181,515 * u «r 07' •', 11,171,987 ■ 9,256.542 20.427,52!) Sen <>4 7.751,171 9.129,641 - 16,880,312 Oct' 29 .10 494 570 8.948.811 19:443.381 Novfe 10 120 868 9.C69.119 19,189,987 Twit "10 018 328 8.921,251 : 19.542.582 Tan" 28 *'* &SBUWB 7,897,234 20.131.589 Feb/25 .t 15.293.786 7.851,603 22(651,389

Th£ subsidiary coin held at February 25 totalled £730,422 compared With £727,299 on January 28.