TRADING BANKS
NOVEMBER RETURNS FALL IN FREE DEPOSITS HIGH LEVEL OF ADVANCES [BY TELEGRArH —OWN CORRESPONDENT] "WELLINGTON, Thursday Tho monthly fetatements of assets and liabilities of the six trading banks at tho close of business on Monday, November 28, were issued to-night. A comparison of tho principal items with tho figures in tho return at October 31 is as follows: — November « October Circulation .. 10,560,307 10.788,286 Free deposits .. 32,707,151 0,7-« ~'ot)8 Fixed deposits .. o'i ?i AHvnnrps . . 58,007,03.3 68,7'JiMKjI London assets 3,080,111 4,115,09 a Advances have again increased on the level of tho previous month, but tho rise, £177,982, is insignificant, compared with tho increase of £2,454,000 October showed over the September total. Tho note circulation js somo £200,000 loss than at the end of October, but tho amount held by tho banks was substantially higher, this doubtless representing provision against an anticipated holiday demand for cash. Tho two classes of deposits havo changed little in level during the month. London assets are £429,000 lower in value than at tho end of October. Notes In Circulation Notes of the Reserve Bank held as till money at November 28 were valued at £4,026,967, compared with £3,648,538 a month before. The issue at. that date was £14,587,364, making the active circulation £10,560,397. Ihe issue and circulation at tho end of November in the past three years have been as follows: — Issue Circulation Jsov. £ & 1936 .. 11,8:18,198 8,008,431 1937 . . 13,319,411 9,547,302 1938 .. 14,587,364 10,500,397 Free deposits, or current account balances, were £1,689,000 lower on November 28 than a year previously. A larger fall, of £2,558,000, has occurred in the aggregate of fixed deposits, with the result that the total of the two classes, at £62.862,000, is £4,247,000 below that in the November return last year. The total then 'was, however, abnormally high, compared with the November deposits in the past six* years. The levels of the two classes of deposits and their totals in the November returns since 1934 are as follows: — Free Fixed Total £ £ £ 1934 23,835,044 38,065,565 61,900,609 1935 25,836,271 36,222,978 02,059,249 1936 29,188,509 33,383,792 62,572,301 1937 34,396,260 32,712,249 67,108,509 1938 32,707,151 30,154,592 02,861,743 Advances and Deposits Advances at £58,907,633 are substantially the highest in any November return since 1934. The increase on last year is £4,126.000, while the total is over £18,000,000 greater than it was four years ago. The steady fall in the excess of deposits over advances in that period has brought tho figure down from £17,483.000 in November, 1934, to £3,954,000 in the present return. • The position at the end of November in the past five years is shown in the following table. Excess of Deposits Advances Deposits Nov. £ £ £ 1934 61,900,609 44,417,637 17,482,9/2 1935 62,059,249 47,313,013 14,746,206 1936 62,572,301 49,511,618 13,060,683 1937 67,108,509 54,781,396 12,327,113 1938 62,861,743 58,907,633 3,954,110 Fluctuations in the value of assets held abroad, in London and elsewhere, on account of New Zealand business, as shown in the November returns since 1934. have been as follows: —■ London Elsewhere Total Nov, £ £ £ „ 1934 10,120,868 9,069,119. 19,189,987 1935 12,065,001 5,806,810 17,931.831 1936 8,414,355 5,441,537 13.855,892 1937 6,526,411 3,803.047 10.329,458 1938 3,680,111 2,367,067 6,053,178 Subsidiary coin in the banks at November 28 was valued at £815.221, compared with £833,604 in the October return. The banks also held gold valued at £B9 at the end of November.
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Bibliographic details
New Zealand Herald, Volume LXXV, Issue 23228, 23 December 1938, Page 12
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544TRADING BANKS New Zealand Herald, Volume LXXV, Issue 23228, 23 December 1938, Page 12
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