TRADING BANKS

Poverty Bay Herald, Volume LXV, Issue 19667, 27 June 1938, Page 2

TRADING BANKS

THE MAY RETURNS , LOWER DEPOSIT LEVELS /RISE IN ADVANCES IBS »:«■ " The monthly statement of assets and liabilities of the six trading banks at (he close of business on Monday, May 30, has been gazetted. A comparison of the principal figures, with the corresponding figures in the April return, is as follows: —

Free deposits have fallen by some £2,172,000 in the month since the last return. This follows an increase of almost an equal amount in the two preceding periods. Fixed deposits aie also lower, but in this instance the reduction is onljr £(307,000. Advances and i discounts* aftej - a consider - able period of steady increase, have now turned downward, the total being £949,000 lower than that at the end of April. The gain of £537,500 in the value of London assets held on account of New Zealand business follows an increase of £66,000 in the April return and one of £771,000 at the end of March. Notes in Circulation •Notes of the Reserve Bank held as till money on May 30 were valued at £4,032.789. The issue at that date totalled £13.816,733, making the active circulation £9,783,944. The issue and circulation at the end of May in the past two years have

Free deposits on current account balances were £‘511,000 lower at the end of May this year than at the corresponding date a year previousy. The total still remains roughly £10,000,000 greater than ah the May return of 1915 and some £4,500,000 above that in the return for 1936. Fixed deposits are approximately £1,300,000 lower in value than at the corresponding date last year. The reduction since 1936, the peak level for May since these returns have been issued, is some £5,480,000. The levels of the two classes of deoosits and their totals in the May n turns from 1935 onward are as follows.

Advances and Deposits The level of advances and discounts continues remarkably high compared with those in the iMay returns of previous years. The increase over last year s total is more 'than £7,000,000, while this year’s .figure is some £10,000,000 "reater than at the corresponding date hi 1935 and 1930. The excess of deposits over advances has decreased Irom the high point of £23,288.000 in 1930 to £l2 037,000, while there has been n tail of nearly £9,000,000 between May last year and the corresponding date this year. The position at the end of May in the past four years is shown in the following table: —

lyao ui,.m,4uu ***• » Fluctuations in the value of assets held abroad on account at New Zealand business, shown in the May returns since 11)35, have been as follows: _ . ,

Subsidiary coin held at May .su amounted to £906,247. compared with £842,233' in the April return. The banks also held gold valued at £33 at the end of May.

3 May April £ £ Circukition 9.783.944 10.577,560 Free deposits . 35.156,335 38,328,341 Fixed"! deposits 31,187,931 31,494,894 Advances 55,307,388 56,256,054 London, assets 8,055,602' . 7.528,050

been: — Issue Circulation May £ £ 1937 . 12,974,590 9,040,074 1938 . 13,816,733 9,783,944

May Free Fixed Total £ £ £ 1935 26,374,859 35,885,504 62,260,363 1936 31,583,672 36,675,282 68,258,954 1937 36,667,413 32,505,506 69,172,919 1938 36,156,335 31,187,931 67,344,266

Deposits Advances Excess of Deposits May 19,35 £ 02,200,303 £ 45,381,213 £ 10,879,150 1930 08,258,954 44,970,790 23',288,158 1937 lf»3R 69,172,919 48,033,104 21,139,755 (J7.344.2G0 55,307,388 12.030,878

London Elsewhere Total May 1935 £ 18.746,1,13 £ (1,242,944 £ 24,989,057 1936 16.700,923 6,158,044 22,858,967 1937 11,857,865 4,983,080 16,840,945 1938 8,065,602 3,636,914 L rvl a] 11,702,516 rH/Totr '111