BANKING FIGURES

New Zealand Herald, Volume LXXII, Issue 22173, 29 July 1935, Page 5

BANKING FIGURES

A HEALTHIER POSITION FIXED DEPOSITS LOWER SOME RISE IN ADVANCES Examination of the aggregate statements of the trading banks in Australia and New Zealand shows that there is a steady return to conditions under which the banks may be expected to earn larger profits. There is considerable interest in bank shares at prei sent, due to the raising of the Comi mercial Bank dividend, the first inj crease in any bank distribution for some I years. Owing to depressed conditions in | trade, the tendency lias been for dej posits at the banks to increase and for I advances to diminish. In other words, I the banks have had at their disposal more money than they could profitably employ. In the case of the New Zealand balances, the chief movement during the past year was a decline of about £5.000,000 in the level of fixed deposits, which indicates that the low interest rates paid by the banks are having the desired effect of forcing money into other avenues of investment. Probably many customers are finding it expedient not to renew their deposits and much of this capital has, no doubt, been attracted to the sharemarket. However, free deposits show an increase over the past year of about £1,500,000, which points to continued need for avenues for new capital investment. I*ndoubtedly, the position is healthier for trade generally and for the banks, but the ratio of hank advances to deposits is still fairly low. The total of bank advances in the Dominion increased during the past year by only about £1,000,000, and the ratio to deposits is 73 per cent, against 67 per cent. Marked movements are shown in Australian banking aggregates for the June quarter, compared with corresponi ding figures for June, 1934. Fixed I deposits have fallen by £10.000,000, but I free deposits have increased by | £5,000,000, so that the net reduction is | £5.000.000. Advances and discounts (inl eluded in the item " all other assets") | show a rise of £17,000,000. It is stated j that money is flowing much more freely into industrial channels, and private borrowers are calling for bank accommodation with greater confidence. Part of the increase in advances, it is stated, is probably due to the primary industries leaning on the banks more than in the previous year to carry on work undertaken in anticipation of a continuance of the high wool prices of 1933-34. FOREIGN EXCHANGES (Received July 28, 5,5 p.m.) British Wireltss EUGBY, July 27 The following rates on foreign exchanges were current yesterday, compared with the cabled quotations on July 25 and par:— July 25 July 25 Par Montreal, dol. .. 4.%% 4.96*4 4.Sf.fi New York, dol, . 4.f) r . 4.95% 4.866 Paris, fr. .. 75 1 ;, 75 124.21 i Brussels, belga . 29.26 29.22 35.00 I Geneva, fr. .. 15.20 15.21 25.22 Amsterdam, fl. . 7.37:4 7.33'j 12.10 Milan, lire .. 60*VU W*;« 92.46 Berlin, ran. . . 12.31 12.32 20.43 Stockholm, kr. . 19.39 V, 19.39 V, 18.159 Copenhagen, kr. . 23.39% 23,39Vj 18.159 Oslo. kr. . .. 19.90/2 19.90/4 18159 Vienna, sch. . . 26% 26/4 34.585 Prajrue, kr. . . 319% 119*4 164.25 Helsinsrfors. mark 22634 226% 129.23 Madrid, pes. . . 325.221 Lisbon, escu. .. HO 3 .. . 110% 310 Athens, dr. .. 518" 516" 375.n0 - Bucharest, lei. . 457Y m HiodeJaneiro.mil. 4%d* 4 J ,id* 5.899 d Buenos Aires, dol. 35d" 35d* 47.619 d Montevideo, dol. 39'4d* 39 l 4d* Sid Bombay, rupee . lS*id 18'-id 18d Shanghai, dol. . 18% d 10% d Hongkong, dol. . 25*/ l sd 25%„d 1 Yokohama, yen . 14 S/ r, 3 d 14% 2 d 21.58 d : Batavia." fl. .. 7.34% 7.32% 32.10 Belgrade, din. . . 217 216 276.31 I Warsaw, zioty .. 'Sellers. (Received July 28. 5.5 p.m.) LONDON, July 27 On the foreign exchange market today the following quotations ruled: New York, 4.96J dollars; Paris, 75£ francs; Batavia, 7.33£ florins. NEW ZEALAND QUOTATIONS The Associated Banks (other than the Bank of New South Wales) quoted the following dollar rates on Saturday, on a New Zealand tjurrency basis, subject to alteration without notice: Selling: United States Canada T.T 3.9? 3.9?% On demand .. 3.99% 3.39% Buying: On demand . . 4.02% 4.03V4 Following are the latest rates for purchases and sales of foreign exchange quoted by the Bank of New South Wales, Auckland. They are subject to alteration without notice: — T.T. On Demand To £1 N.Z. Currency Selling Buying Sellinc U.S.A.. dol. . . 3.97% 4.03% 3.9?% Canada, dol. .. 3.98% 4.03% 3.99% France, fr. . . 59.68 Noumea, fr. .. 58.93 Papeete, fr. . . 58.93 Belgium, belsra . . 23.195 Germany, r.m. . . 9.OSS Italy, lire .. 48.0? Switzerland, fr. .. 12.035 Holland, fl. .. 5.810 Java, fl, .. .. 5.778 Sweden, kr. .. 15.460 15.830 15.470 Norway, kr. .. 35.870 36.240 15.3*0 Denmark, kr. . . 37.878 35.243 17.SS? Austria, sch. .. 20.52 Czecho slovakia, cr. 95.57 N.Z. pence to Jiipstn. yen .. 17 ! % e Shanghai, dol. .. 23*•« 22% a 23% India, rupee . . 22"% a 22% a 22* Via Ceylon, rupee . .22 2 % a 22% a 22 a %a Hongkong, dol. .. 32%« 31% 32% Singapore, doi. .. 35% 34% a 35* t « The cost in New Zealand currency of the pound sterling, and of the principal overseas units, on the latest quotations, is as follows: — Present Price Par ?d s d Australia, pound .. 19 30.81 20 0.00 London, pound .. 24 10.05 20 0.00 Fiji, pound . . . . 22 5.66 20 0.00 New Yrrk, dollar .. 5 0.18 4 1.33 Montreal, dollar .. 5 0.08 4 1.31 Paris, franc . . .. 0 3.93 0 1.93 B-rlin. reichmark .. 2 0.30 0 11-74 Copenhagen, krone .. 3 3-33 1 L 22 j Yokohama, yen .. . . 1 5.61 2 0.58 CUSTOMS EXCHANGE RATES Pates of exchange ruling at the announced dates of departure of vessels named are shown in the following table. They are subject to confirmation by the Customs Department when the exact time of departure is learned on arrival of the vessels in New Zealano. Finally declared rates are marked*: Benholm, America, dollars . . . . 4.93%« Canadian Highlander, Canada, do,. 4.94A^ Hauraki. America, dollar* • • ■ • ' Brisbane Maru. Japan, yen •• 14 City of Glasgow, America, dollars Mariposa, America, dollars .. .. 4.96/ m BRITISH TREASURY BILLS (Received July 28, 5.5 p.m.) British Wireless RUGBY, July 27 The total amount applied for this week in tenders for £40.000,000 worth of Treasury bills was £56,800,000. Ihe average rate per cent for bills at three months was 10s 9.77 d, compared with 12s 2.84 d a week ago. MORTGAGE CORPORATION The Mortgage Corporation of New Zealand has advised the Stock Exchange Association that the share register will be open from Thursday.