TRADING BANKS’ RETURNS

Southland Times, Issue 23823, 22 May 1939, Page 9

TRADING BANKS’ RETURNS

Statement For April

ADVANCES LESS THAN FOR LAST YEAR

The monthly statement of assets and liabilities of the six trading banks at the close of business on Monday, April 24, was gazetted on Friday. A comparison of the principal items with the corresponding figures in the return at March 27 is as follows: —

After a continuous increase since the end of December in the value of assets held in London on account of New Zealand business, the present return shows a decrease of £303,451 for the month covered. The total, nevertheless, remains some £2,300,000 greater than in the December statement. Advances were £200,000 Higher on April 24 than at the end of March. Free deposits have decreased by an almost identical amount, while fixed deposits show a decrease of approximately £130,000 in the period between the last two statements. NOTES IN CIRCULATION Notes of the Reserve Bank held as till money on April 24 were valued at £3,635,896, compared with £4,158,321 a month before. The issue at the end of April was £15,658,762, making an active circulation of £12,022,866, an increase of £847,141 on the March total. The issue and circulation at the end of April in the past three years have been as follows: — ,

The level of free deposits on current account balances was little different at the end of April from that at the corresponding date last year. There was a decrease of £83,600 in the period. The value is less than £300,000 smaller than the peak April figure since the present form of return was first issued, that of £38,518,700 in 1937. For fixed deposits the highest total in any April statement was £37,310,800 in 1936. In the present return the figure is some £7,500,000 lower than that level, and £1,746,000 below the fixed deposits for the corresponding month last year. The levels of the two classes of deposits and their totals in the April returns from 1935 onward are as

ADVANCES AND DEPOSITS

The volume of bank loans, represented by advances and discounts to a total of £55,718,700, is some £537,000 Smaller than at the corresponding date last year, but still remains at a high level compared with the figures for 1937 and the two preceding years. So far the effects of a season in some ways unfavourable for production, and of the restrictions on import trade have not revealed' themselves to any great extent in this department of banking business. ...... The position at the end of April m the past five years is shown in the following table:— Excess of

Fluctuations in the value of assets held abroad on account of New Zealand business, shown in the April returns since 1935, have been as follows:—

Subsidiary coin held at April 24 was valued at £713,289, compared with £785,793 in the March return. The banks also held gold valued at £l7B at the end of April. /

April £ March £ Circulation 12,022,866 11,175,725 Free deposits 38,244,718 38,446,609 Fixed deposits 29,748,175 29,878,122 Advances 55,718,707 55,517,316 London assets 5,118,738 5,422,189

April Issue Circulation £ £ 1937 12,956,903 8,720,860 1938 14,082,262 10,577,560 1939 15,658,762 12,022,866

follows: — Free • Fixed Total April £ £ £ 1935 27,095,334 35,755,004 68,850,338 1936 32,049,252 37,310,826 69,360,078 1937 38,518,701 32,463,907 70,982,608 1938 38,328,341 31,494,894 69,823,235 1939 38,244,718 29,748,175 67,992,893

. Deposits Advances Deposits April £ £ £ 1935 62,850,338 45,400,708 17,449,630 1936 69,360,078 45,090,868 24,269,210 1937 70,982,608 47,485,065 23,497,543 1938 69,823,235 56,256,054 13,567.181 1939 67,992,893 55,718,707 12,274,186

London Elsewhere Total April £ £ £ 1935 18,266,133 7,081,884 25,348,017 1936 15,980,160 6,305,068 22,285,228 1937 12,553,776 5,076,523 17,630,299 1938 7,528,050 4,359,620 11,887,670 1939 5.118,738 1,722,318 6,841.056