TRADING BANKS

New Zealand Herald, Volume LXXV, Issue 23150, 23 September 1938, Page 14

TRADING BANKS

THE AUGUST RETURNS ADVANCES LEVEL HIGH £6,000,000 RISE IN YEAR MOVEMENTS OF DEPOSITS [by TELEGRAPH —OWN' correspondent] WELLINGTON, Thursday. The monthly statement of assets and liabilities of the six trading banks at the close of business on Monday August 29, was gazetted to-night. A comparison of the principal items with the corresponding figures in the July return is as follows: <' August Jul, Circulation .. £9,597,3<>0 £9,576 365 Free deposits .. 33,710,141. 34,785'1f1n Fixed deposits .. 30,H."4,645 30,796 44V' Advances . .. 05,645,844 54,707*,482 London assets .. 5,835,601 7,291,2n Free deposits are £1,074,700 lower than they were at the end of July this continuing a normal trend of past months. Fixed deposits are lower also but the decrease in this instance has been the merely nominal amount of £141,700. Advances and discounts, following a moderate decline in th<S previous two months, have now recovered to the extent of £938,000. London assets, held on account of New Zealand business, are again lower, the decrease being £1,425,500. Notes in Circulation Notes of the Reserve Bank held as till money on August 29 were valued at £3,798,856, compared with £3,988,307 a month before. The August 29 issue totalled £13,696,216, making the active circulation £9,897,360. The issue and circulation at the end of August in the past three years have been: — August Issue Circulation 1036 .. £11,148,294 £7,791,289 1937 .. 12,793,755 9,119,976 1938 .. 13,696,216 9,897,300 Free deposits or current account bal- 1 ances were at a very similar level at the end of August to that obtaining a year previously. The total in each instance is substantially above the figure in any of the previous three,years returns were made in the present form, There has been an increase of approximately £9,000,000 from the lowest level, recorded in 1935. Fixed deposits show the Bteady fall that has taken place since the returns were first issued, the• difference at the end of August this year being nearly £10.000,000 compared with the position in 1934. / The levels of the two classes of deposits and their totals in the August returns from 1934 onward are as follows: — August Free Fixed Total £ £ £ 1934 . 26,184,575 ' 40,263,009 66,447.581 1935 . 24,778,818 36,382.220 61,161,038 1936 . 29,906,883 34,893,116 64,799,669 1037 . 83,698,512 33,361,168 67,059,680 1038 . 83,710.441 80,654,645 64,368,086 Advances and Deposits Advances and discounts again illustrate the steady expansion of bank credits since 1934. The August figure in that year was nearly £14,500,000 lower than that for the same month this year. There has also been an increase of more than £6,000,000 in the 12 months since the last August return was issued. As a consequence of tfie respective movements in deposits and advances, the excess of deposits has decreased substantially in the past fire years. Where it was £25,000,000 at the end of August. 1934, it has fallen to I £8.700.000 in the latest return. This ! free resort to the available loan funds of the trading banks has been a leadi ing factor in the business expansion I over the period. i The position at the end of August in ' the past five years is shown in the following table:— Excess of Deposits Advances Deposits Aug. <■ £ £ £ 1934 . . 66,447,551 41,261,010 25,186,571 1933 . . 61,161,038 46,339,960 14,821,0.9 1930 . . 61,799,999 45,825,860 18,6/4.189 1937 . . 67,059,680 49,475,51" 17,583,863 .1938 .. 64,365,056 55,645,844 8,710,242 I Fluctuations in the value of assets ! held abroad on account of New Zealand business shown in the August returns since 1934 have been as follows:-—. London Elsewhere Total • A ncr 1934 .. 11,171,987 0.225,542 20,427,529 1935 .. 17,173,501 6,024,546 23,198,017 1936 .. 14,437,895 5,957,121 20,390,016 1937 . . 9,269,550 4,293,700 13,06W50 1938 . . 5,835,691 2,895,691 8, <31,382 Subsidiary coin held at August 29 was valued at £857 .435, compared with £884,729 in the July return. The banks also held gold valued at £23 at the end of August. -