TRADING BANKS

New Zealand Herald, Volume LXXVII, Issue 23748, 30 August 1940, Page 11

TRADING BANKS

JULY STATEMENTS DEPOSIT LEVEL FALLS ADVANCES £1,355,000 LOWER [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, July 29, was gazetted to-night. A comparison of the principal items, with the corresponding figures in the return at June 24, is as follows: July Juno X' £ Circulation .. Free deposits .. 48,-12'2,G00 40,1 J 2,51)0 Fixed deposits .. 30,715,201 31,387,181 Advances' .. -10,101,507 47,-150,(!00 London assets .. 13,777,122 13.845.3Q1) The advances have fallen in level by £1,300,000 in the month since the last return was compiled. Deposits of both classes arc lower also, the free by £090,000 and the fixed by £642,000. The note circulation lias increased by £666,000, this movement following a riso of £533,000 recorded in the previous return. Notes in Circulation Notes of the Reserve Bank held as till money on July 29 were valued at £4,258,335, compared with £3,917,758 a month before. The issue at the end of July was £19,623,436. making the active circulation £15,365,101. The issue and circulation at the end of July in the past four years have been: Issue Circulation £ £ 1037 .. .. 12.500.527 8,045,771 11)38 .. .. 13,503,072 • 0,575,305 1(>39 .. .. 15,603,304 12.135.020 19-10 .. .. 10,623,430 15,305,101 Free deposits, or current account balances at £48,422,650, are £11,378,015 higher than at the corresponding 'date last year. Fixed deposits, £30,745,294, compared with £29,702,084, are £1,043,210 higher. The total of "Hie two, £79,167,944, is below the' level of April, May and June this year, but is higher than the figure for any month in previous years. Advances, totalling £46,101,507, continue the falling tendency shown in June, and are lower than in any July since 1936. The movement may be taken as a reflection of import trade under the influence of war conditions and official restrictions; Advances and Deposits The position at the end of July in the past five years is shown in the following table: — Excess of Deposits Advances Deposits July X' £' X' 1030 . . 05.882,002 45.151.061 20,007,128 1037 .. 05,128,005 15,170,541 10,058,151 1938 .. 05,581,001 51.707.452 10.874,110 1039 .. 00.740,719 54,109,320 12,577,399 1940 .. 70,167,044 <10,101,507 33,006,137 Fluctuations in the value of assets held abroad on account of New Zealand business, shown in the July returns since 1936 have been as follows: — London Elsewhere Total July X' • X' X 1936 . . 10.729,219 5.570.074 22.605,803 1937 .. 11.225.913 4.720,405 15.055.31S 1938 . 7.201.21.1 2.805,459 10.156.670 1939 .. 4.592,140 1.473.835 6,065.975 1910 . . 13,777,422 1,702.792 15,510.211 Overseas liabilities on New Zealand account totalled £2,985,043, against £2.983.918 at the end of June. Subsidiary coin in the banks at July "29 was valued at £699,883, compared with £710,409 in the June return.