TRADING BANKS

Otago Daily Times, Issue 22894, 30 May 1936, Page 20

TRADING BANKS

DEPOSIT LEVEL HIGHER RISE IN LONDON ASSETS The monthly statement of assets and liabilities of the six trading banks at the (dose of business on Monday, April 27, have been gazetted. Notes of the banks’ own issues to the value of £537,624 were outstanding at the date of the return. This figure is only £7630 less than the value a monUi before, indicating how greatly the rate of their return to the banks has decreased. Between February 24 and March 30 there was a decrease of £14,800, or nearly twice as much as that recorded in the latest period. At this rate there seems likely to be at least £500,000 worth of trading bank notes still on issue when the Reserve Bank takes over responsibility for them at the beginning of August. ■ . The active note circulation, made up of the unreturned issues of the trading banka and Reserve Bank notes in the hands of the public, amounted', to £7,160,681 at April 27. This was over £45.000 more than a month before, and indicates a considerable demand for cash currency to finance ordinary or retail trading. The position in the latest return, compared with those a mouth, three months, six months and a year before, is shown in the following tablet —

Free deposits, or current account balances, were some £103,000 greater than at March 30, but this sum shows a slackening of the pronounced rise that has token place since September. The flush of the export season is now over, and the returns from produce sold are not affecting the banking position as they were. Fixed deposits, which fell by roughly £500,000 between January and March, have risen again by nearly £BOO,OOO to a total greater than nay recorded during 1935. A comparison of free and fixed deposits and the totals of the two at April 27 and one month, three months, six months and a year previously is as follows: —

The advances and discouuts at the date of the return amounted to £45,090,868, discounts accounting for £486,901 of the total. The combined amount is some £172,000 greater than at the end of March, but is still nearly £500,000 below the level on January 27. The increase in the total of deposits has made their excess over advances some £700,000, greater than in the March return. The movements over 12 months are shown in the following table, giving the latest figures, compared with those a month, a quarter, a half-year and a year previously. Excess of

The value of assets held in London by the banks on account of New Zealand business has increased by .nearly £1,840,000, compared with the level of March 30. The total is now nearly £5,000,000 greater than at the end of January, though still £2,280,000 below the value so. held in April last year, when the figure was almost at its peak. Similar overseas assets held elsewhere than in London have increased by approximately £BO,OOO, The figures showing these overseas assets, held on New Zealand account, compared at intervals of one month, three, six and twelve months, are as follows

The subsidiary coin held at April 27 was valued at £738,083, compared with £754,019 on March 30. The return also shows gold to the value of £723 held by the banks, against £694 in the March return.

1935. T. Banks. B. Bank. 5'otaL « £ $ April :89 .. . 800,(02 6,579,039 fl,879;81l October 23 . 019,212 6,898,432 0,618,841 1030. January 27 . 571,708 6.205,292 ! 0,837,760 March SO .. . . 515,251 0,669,787 7,105,011 April ST .. . . . 637.021 6,018,067 7,150,081

1031. Fred. Fixed. TotoL £ £ £ April 1:9 .. 27,095,334 35,755.004 02,850,838 October 28 .. 24.922.428 80.192,335 01,114,703 1939. 05,801,522 January 27 28,827,915 37,033,007 March 30 .. .. 31,940,454 86,520,000 VC8.476.41A April 27 .. .. 32,019,252 37.310,820 60,800.078

19S8. Deposits. Advances Deposits. £ S £ April SI) .. .. 62,800,338 45.400.708 17.440,680 October 28 .. 61,114,703 40,877,287 14,257,476 1030. January 27 .. 65,801,622 46,049,334 £0,212.188 March 00 .. 68.476,414 44,018.852 23.657,602 April 27 .. .. 69.360,078 46,000,808 24.200.210

1935, London. Elsewhere. Total £ £ £ April 20 .. 18,260,133 7,081.884 25,348,017 October 28 .. 12,293,807 5,704,613 18,067,880 1030. January 27 .. 11,1(9,876 0,183,192 17,833.071 March SJ .. 14.143.300 0,220,321 20,300,000 April 27 .. .. 15.080,160 0,305,008 22,285,223