TRADING BANKS

New Zealand Herald, Volume LXXIII, Issue 22355, 28 February 1936, Page 12

TRADING BANKS

JANUARY STATEMENT ■ i "4 HfGHER DEPOSIT TOTAL DECREASE IN ADVANCES OVERSEAS ASSETS GREATER [BY TELEGRAPir— OWN CORRESPONDENT] WELLINGTON, Thursday The jjionthly statement of assets and liabilities of the Bix trailing banks as at the close of business on Monday, January 27, was gazetted to-night. Notes of the trading banks to the value of £571,768 were outstanding at the date of the return. The decrease since the end of December, £12,900, is considerably smaller than in the preceding four weeks, when there was a shrinkage of £20,265. The active note circulation', made up of the unreturned portion of tbe trading banks' issue and Reserve Bank notes in the hands of the public amounted to £6,837,760, or £7/6,194 less than in the December return. This represents a fall from the peak reached as a result of the Christmas and holiday demands. The position in the latest return, compared with those a month, three months, six months and a year before, is shown in the following table: — 1935 T. Banks R. Bank Total Jan 28 .. £1.043,443 £5,043,487 £0,086,930 July 29 . . 681.639 5,411,827 6,093,466 Oct 28 . . 619.912 5,898,432 6,518,344 Dec". 30 .. 584,668 7,023,280 7,613,954 Jan? 6 27 .. 571.708 6,265,992 6,837,760 Free deposits, or current account balances, were £2.660,282 higher at January 27 than at December 30. The increase since the end of October has become almost £4,000,000, showing the influence of exports going forward at increased prices. The fixed deposits, which had also increased substantially between October and December, are . a little orer £IOO,OOO lower in the January return. Comparison oi Deposits A comparison of free and fixed deposits, and the totals of the two at January 27 and one month, three months, six months and a year before, is as follows: 1935 Free Fixed Total Jan 29 .. £25,856.510 £36,444,416 £62,300,926 July 29 .. 25,190,141 35,990,554 61,186,09 a Oct 23 .. 24,922,428 36.192,335 61.114,763 Dec". 30 .. 26,167,633 37,135,850 64,303,483 Jaa? 6 27 .. 28,827,915 37.033,607 65,1361,522 The advances and discounts at the date of the return totalled £45,649,334, decline of £917,044 since December MO. The figure is much lower than three months ago, slightly less than in July last, but not far short of £1,000,000 higher than at the end of January last year. The greatly increased level of deposits, however, leaves their excess over advances higher than in any return during 1935. The movements over 12 months are shown in the following table, giving tho latest figures, compared with a month, a quarter, a half-year and a year previously: —■ Excess of 1935 Deposits Advances Deposits Jan. 23 £62,300.926 £44,798.852 £17,502,074 July 29 61,186,695 45.899,015 15,287,080 Oct. 28 61,114.763 46,877,287 14.237,476 Dec. 30 64,303,483 46.566,378 V 17.737,105 1936 Jan. 27 65,861,522 45,649,331 20,212,188 Holdings in London The value of assets held in London by the banks on New Zealand account, which had been falling progressively for some time previously, has increased by ; nearly £1,400,000 in the January re- ! turn, compared with the level at Decein- ! ber 30. Thus a movement which has i been in progress for some six months ! is reversed. Similar assets held else- ! where than in 'London are also higher, but only by somo £150,000. The total of the two is now slightly greater than when the bank opened in August, 1934. In the previous return it was, for the first time, below, that level. The figures showing these overseas assets, held *on New Zealand account, compared at intervals of one month, three, six and 12 months, are as follows : 1935 London Elsewhere Total** Jan. 28 £12.234.355 £7,897,234 £20,131.589 July 29 18,034,034 5,807,953 23,841,987 Oct 28 12,293.367 5,764.513 18.057.880 Dec. 30 9,754.717 6,028,133 15,782.850 1936 Jan. 27 11,149,879 6.183,192 17,333,071 The subsidiary coin held at January 27 was valued at £BII,BBO, compared with £744,033 on December 30. The return also shows gold to the value of £334 held by the banks, against £1287 in the December return.