TRADING BANKS’ RETURN

Southland Times, Issue 23646, 22 October 1938, Page 11

TRADING BANKS’ RETURN

Decrease In London Funds SUBSTANTIAL RISE IN ADVANCES , (Special to The Times) WELLINGTON, October 20.' The monthly statement of assets and liabilities of the six trading banks at the close of business on Monday, September 26, was gazetted tonight A comparison of the principal the corresponding figures m. the August return is as follows: —

No changes of any great magnit*de have occurred since the last return w isued, with the exception of feat m tne London assets of the banks.. The note circulation has increased by about £4bd,r 000. Free deposits, are at a lower level than they were a month before, D the decrease, £782,000 in round figures is of no great significance. The smaller fall, of £159,000, m the fixed deposit level is similarly unimportant. Advances continue to ; increase, the rise since the end of August having been £630,000. The London holdings ot tne banks on account of New Zealand business are again lower, the decrease on last month’s figure being £1,177,948, this following a fall of £1,425,500, shown in the previous return.

NOTES IN CIRCULATION

Notes of the Reserve Bank held as tifi money on September 26 were valued at £3,374,342, compared with £3,79»,856 a month before. The issue at beptember 26 totalled £13,734619 the active circulation £10,360,2]/. The issue and circulation at the end of September in the past three years have been:—

The level of free deposits, or cunrent account balances, at the end of September, differed by no more than tdd,000 in round figures from that obtaining a year before. The increase, however, over the totals shown at the same period in the preceding three years is very substantial. The rise since 1934 has been over £7,000,000. Fixed deposits have shown a more than equivalent decrease in the same period, the Se Ptei?°erfigure this year being just over £9,000,000 below that at the corresponding date in 1934. , , . * j The levels of the two classes of deposits and their totals in the Septemher returns from 1934 onward are as

Advances are at a substantially higher level in the present return than at the same date in any preceding year to 1934. The increase since five years ago is over £14,500,000, and, with the exception of 1936, the rise has continued progressively during that period. It is 1 normal for demands on bank accommodation to be heavy at this season of the year, so that the increase m advances and the corresponding fall in tiie excess of deposits can be taken as a proof that trade is vigorous. The position at the end of September in the past five years is shown in the following table:—

Fluctuations in fee value of assets held abroad on account of New Zealand business shown in fee September returns since 1934 have been as fol-$ lows:—

Subsidiary coin held at September 26 was valued at £805,158, compared wife £857,435 in the August return. The banks also held gold valued at £66 at fee end of September.

September August £ £ Circulation Free deposits Fixed deposits Advances London assets 10,360,277 32,927.965 * 30,495,768 56,275,749 4,657,743 9,897,360 33,710,441 30,654,645 55,645,844 5,835,691

September, Issue £ Circulation . £ 1936 11,174,758 7,771,942 1937 12,994,386 9,262,066 1938 13,734,619 10,360,277

follows:— Sept., Free £ Fixed £ Total £ 1934 • 25,771,320 39,586,720 65,358,040 1935 24,635,039 36,750,637 61,385,676 1936 28,934,657 34,485,842 63,420,499 1937 32,890,247 33,051,072 65,941,319 1938 32,927,965 30,495,768 63,423,733 ADVANCES AND DEPOSITS

Excess ot Sept., Deposits £ Advances £ Deposits £ ' 1934 65,358,040 41,603,073 23,754,967 1935 61,385,676 47,711,493 13,674,183 1936 63,420,499 45,999,813 17,420,686 1937 65,941,319 50,695.729 15.245.590 1938 63,423,733 56,275,749 7,147,984

Sept., London £ Elsewhere £ Total £ 1934 7,751,171 9,129,641 16,880,812 1935 16,206,526 5,672,475 21,879,001 1936 12,890,571 5,875,499 18,676,070 1937 8,147,276 4,225,095 12,372,371 1938 4,657,743 z 2,718,117 7,375,860