TRADING BANKS

Southland Times, Issue 23676, 26 November 1938, Page 4

TRADING BANKS

BIG INCREASE SHOWN IN ADVANCES LONDON FUNDS LOWER (United Press Association) WELLINGTON, November 24. The monthly statement of assets and liabilities of the six trading banks at the close of business on Monday, October 31, was gazetted tonight. A comparison of the principal items with the corresponding figures in the September return is as follows:— ' October September

The most marked movement in the month since the last return was issued has been an increase of £2,454,000 in the level of advances and discounts, to the highest figure recorded this year. Movements in deposits over the period have been minor. The assets held in London on account of New Zealand business decreased some £543,000 in value during October. The note circulation, which has been moving upward in recent months, is some. £429,000 higher in this return than it was at the end of September. NOTES IN CIRCULATION

Notes of the Reserve Bank held as till money on October 31 were „ at £3,648,538, compared with £3,374,342 a month before. The issue at Octobei 31 totalled £14,437,824, making the active circulation £10,789,286. The issue and circulation at the end of October in the past three years have been:—

Free deposits, or current account balances were at a very similar level on October 31 to that shown a year previously, the total being a little more than £400,000 lower. These deposits remain substantially higher than in the corresponding returns of earlier years, the difference between the latest figure and that recorded in 1934 being over £8,00,000. Fixed deposits continue to fall from the very high level of five years ago. The latest total, £2,000,000 lower than that of a year ago, is roughly £9,000,000 smaller than the corresponding figure in 1934. The levels of the two. classes of deposits and their totals in the October returns from 1934 onward are as follows: —

ADVANCES AND DEPOSITS Advances at £58,729,651 are £6,000,000 higher than they were a year ago. The progressive increase since returns in their present form were first issued has brought them to a level £15,000,000 greater than that shown m 1934. Though the deposits at . the end of October during that period have not varied greatly; the rise in advances has reduced the excess of deposits from £19,500,000 in 1934 to £4,472,000. The present return’s total of advances is the highest recorded since the statements have been issued in the existing form. October is one of the months for active bank lending, but the November, and December figures are usually higher still. However, neither of these months in the past four years has produced a total equal to that on October 31. The position at the end of October in the past five years is shown in the following table:—

Fluctuations in the value of assets held abroad, in London and elsewhere, on account of New Zealand business, as shown in the October returns since 1934, have been as follows:—

Subsidiary coin in the banks at October 31 was valued at £833,604, compared with £805,158 in the September return. The banks also held gold’valued at £64 at the end of October.

£ £ Circulation 10,789,286 10.360,277 Free deposits 32,892,933 32,927,965 Fixed deposits 30,308,998 30,495,768 Advances 58,729,651 56,275,749 London assets 4,115,095 4,657,743

October, Issue Circulation £ £ 1936 11,480,334 8,052,609 1937 13,273,691 9,421,425 1938 14,437,824 10,789,286

Free Fixed Total October, £ £ £ 1934 24,025,030 39,045,737 63,070,767 1935 24,922,428 36,192,335 61,114,763 1936 28,888,667 34,018;443 62,937,110 1937 33,311,659 32,311,856 65,623,515 1938 32,892,933 30,308,998 • 63,201,931

Deposits Advances Excess of Deposits Oct. £ £ £ 1834 63,070,767 43,539,544 19,531,223 1935 61,114,763 46,877,287 14,237,476 1936 62,937,110 47,779,512 15,157,598 1937 65,623,515 52,646,614 12,976,901 1938 63,201,931 58,729,651 4,472,280

London Elsewhere Total Oct. /? £ £ 1934 10,494,570 8,948,811 19,443,381 1935 12,293,367 5,764,513 18,057,889 1936 10,763,469 5,641,345 16,404,814 1937 7,767,511 4,090,645 11,858.156 1938 4,115,095 2.520,451 6,635,546