TRADING BANKS

New Zealand Herald, Volume LXXVI, Issue 23482, 20 October 1939, Page 10

TRADING BANKS

SEPTEMBER RETURNS HIGH DEPOSIT LEVEL AGGREGATE OF £67,639,000 NOTE CIRCULATION £13,420,000 [by telegraph—own correspondent] WELLINGTON, Tilursday The monthly statements of assets and liabilities of the six trading banks at the close of business on Monday, September 25, was gazetted to-night. A comparison of the principal items with the corresponding figures in the August, return is as follows: — September August , £ S. Circulation .. 13,4'J0,555 1'2,00(1,805 Free deposits .. 37,412,533 37,360,062 Fixed deposits .. 30,226,482 30,010.758 Advances .. 53,624,220 53,417,221 London assets . . 4,577,000 4,347,000 The greatest movement in the period since the last return has been an increase of some .£1,300,000 in the value of the note . circulation. Both classes of deposits have remained at substantially the same level, while there has been an increase of roughly £200,000 in advances. The London assets of the banks have risen in value by slightly less than £230,000. Notes in Circulation Notes of the Reserve Bank held as till money on September 25 were valued at £3,227,140,c0mpared with £3,735,383 tin* month before. The issue at the end of September was £16,647,605, making the active circulation £13,420,555. The issue and circulation at tho end of September in the past four years have been: — Issue Circulation Sept. JL' £' 3036 .. 11,174,758 7,773,1)42 1037 .. 3 2,001,380 0,202,000 1038 .. 33,734,019 30,300,277 1030 .. 10,617,605 33,420,555 Free deposits, or current account balances, are nearly £4,500,000 higher than they were in the September return last year, and very much the greatest in value for any corresponding month since 1934. Fixed deposits are roughly £270,000 lower than last year. The total of the two, £67,639,000, is eloquent of the amount of liquid funds available for the use of commerce and industry if called upon. The levels of the two classes of deposits and their totals in the September returns from 1934 onward are as follows: — Free Fixed Total Sept. ii £ JL' 1934 , . 25,771,320 39,580,720 65,358.040 1035 ... 24,035,030 ■ 30,750,037 01,385,070 1030.. 28,934,057 31,185,812 03,420,400 1037 32,800,247 33,051,072 65,041,310 1038.. 32,027,005 30,405,768 63,423,733 1030 .. 37,412.533 30,220,482 07,030,015 Advances and Deposits Advances at. the end of September were £3,650,000 lower in the aggregate than at the corresponding date a year earlier. In spite of the fall the total is still tho highest for tho month in any of those returns, with the sole exception of 1938. The accompanying increase in deposits makes their excess over advances £14,000,000, a return to levels shown prior to last year. The position at the end of September in the past six years is shown in the following table:— Excess of Sept. Deposits Advanced Deposits •f £ V 1031 .. 05,358,040 41,603,073 23,751,067 1035 .. 01,385,076 47,711,403 13,674,183 1036.. 63,420,100 45,000,813 17,420.686 1037 .. 05,0i1,310 50,605,720 15,245,500 103S .. 63,423,733 56,275,740 7,147,084 1030 .. 67,030,015 53,624,229 14,014,786 Fluctuations in. tho value of assets held abroad on account of New Zealand business shown in the September returns since 1934 have been as follows: — Sept. London Elsewhere Total £ .1' C 1034 .. 7,751,171 0,120,041 10,550,812 1935 .. 1G,200,520 5,(>72,475 21,879,001 1030 .. 12.500.57 l 5,875,499 15,670,070 1037 .. 8,317,276 4,225,095 12.372.371 1938 .. 4,057,743 2,718,117 7.375.560 1030 .. 4,577,000 1,729,757 6,300.757 Subsidiary coin held at September 25 was valued at £662,769, compared with £707,763 in the August return. The banks also held gold valued at £205 at tho end of September.