TRADING BANKS

New Zealand Herald, Volume LXXIII, Issue 22402, 24 April 1936, Page 17

TRADING BANKS

MABCH STATEMENT HIGHER DEPOSIT TOTAL INCREASE IN ADVANCES [BY TELEGRAPH—OWN* WELLINGTON, Thursday The monthly statement of assets and liabilities of the six trading banks at the close of business on Monday, March 30, was gazetted to-night. Notes of the trading banks to the value of £545,254 were outstanding at the date of the return. This is only £14,800 less than a. month previously. The rate of their return has now become much lower than previously. On present appearances, when the Reserve Bank takes over responsibility for the remaining issues of the trading banks on August 1 next, and the trading banks pay over a sum equal to their value, the total will not be far short of £500,000. The active note circulation, made up of the unreturned issues of the trading banks, and Reserve Bank notes in the hands of the public, amounted to £7,105,041 at March 30. This was some £187,627 higher than a month earlier, the demand for the Easter season having already made itself felt. It was, however, more than £500,000 below the total on December 30, when the Christ-* mas holiday season had swelled the figure very largely. The position in the latest return, compared with those a month, three months, six months and a year before, is 6hown in the following . table: — 1935 T. Banks B. Bank Total March 25 .. £854,640 £5,352,799 £6,247,439 Sept. 30 .. 632,584 5,860,257 6,492,841 I>ee. 3p .. 584,668 7,029,286 7,613,954 1936 Feb. 24 .. 560,059 6,357,355 6.917,414 March 30 .. 545,254 6,559,787 7,105.041 Free deposits, or current account balances, were £1,477,133 higher than on February 24. The increase since the end of September has been over £7,000,000, the outward flow of export commodities during the period of almost maximum activity having thus swelled the total. The fixed deposits, which had increased by £400,000 in the previous five months, fell somo £630,000 between the end of February and March 30. Comparison ol Deposits A comparison of free and fixed dc-* posits and the totals of the two at March 30 and one month, three months, six months and a year previously is as follows: — 1935 Free Fixed Total Mar. 25 .. £27,673,865 £35,454,703 £63.128,568 Sept. 30 .. 24.635.039 36.750,637 61,365.676 Dec 30 .. 26,167,633 37,135,850 64,303,483 1936 Feb. 24 .. 30,469.321 37.160,745 67,630.066 Mar. 30 .. 31,946,454 36,529,960 68,476,414 The advances and discounts at the date of the return totalled £44,918,852, an increase of some £150,000 for the month since the last previous statement. The figure is, however, nearly £3,000,000 less than at September 30. The rise in the aggregate deposits, however, makes their excess over the advances £688,000 greater than a month before. , n « The movements over 12 months are shown in the following table, giving the latest figures, compared with a month, a quarter, a. half-year and a year previously:— v Excess ol 1935 Deposits Advances Deppsits Mar. 25 .. £63.128,568 £44,573,365 £18,555.203 Sep. 30 .. 61,385,676 47,711,493 13.674.183 Dec 30 . . 64,303,483 46.566.3i8 17,737,10 a 1936 Feb. 24 .. 67,630.066 ' 44,760,539 22,869.527 Mar. 30 .. 68,476.414 44,918,852 23,507,562 Rise in London Assets The value of assets held in London by the banks on account of New Zealand business has increased by some £1,400,000, an amount almost identical with the rise shown the previous month. The total is now some £4,300,000 more than at December 30. Similar assets held elsewhere than in London have fallen by slightly more than £267,000. The figures showing these overseas assets, held ,pn New Zealand account, compared'at intervals of one month, three, six and 12 months, are as follows: — 1935 London Elsewhere Total Mar 25 .. £16,605.200 £7,312.980 £23,918,180 Sep 30 .. 16:206,526 5,672.475 21,879.001 Dec. 30 .. 9,754.717 6,028,133 15,782.85?) 1936 Feb 24 . • 12,725,268 6,493,639 19,218,907 Mar'. 30 .. 14,143.369 6.226.321 20,369,690 The subsidiary coin held at March 30 was valued at £754,019, compared with £761,158 on February 24. The return also shows gold to the value of £694 held by the banks, against £583 in the February return.