The Wanganui Chronicle TUESDAY, AUGUST 11, 1931 THE MONEY MARKET.
’"THE features of the money market, namely, increasing fixed deposits, slightly decreasing free deposits, and also a falling | off of bankers’ advances in their relation to deposits, continue in the weekly returns published in the Monthly Abstract of Statistics for July. The fixed and free deposits and the ratio of advances from June 8 to July 13, are as follows:
The present is, of course, the period of the mercantile doldrums and it is not surprising to find that notes and bills discounted have fallen from £814,790 on June 8 to £723,858 at July 13, and that debts due also went down from £51,803,289 to £50.620,861 during the same period. The decline in bank borrowings is nothing abnormal but the fact that free deposits have dropped to 53.96 per cent of the fixed deposits may lead to an awkward situation if the tendency be not cheeked. The reduction in the rate of interest by one half of one per cent, will have a tendency to reduce the fixed deposits. The security market will doubtless be more carefully explained anti it can be anticipated that first-class investments i will soon start attracting those who are fortunate to be in possession of liquid cash. At the present time, however, it is the I psychological factor which is holding up any movement in this direction. The public lacks confidence and until this lack of confidence is dispelled there is hardly any likelihood the upward movement in securities setting in and while present conditions, material and mental, prevail the current tendencies in the money market are likely to remain. The money market to-day therefore represents a conflict between the influence of the lower interest rate and the psychological factor.
Deposit Free Fixed. Ratio of Advances Deposits per cei June 8 .. .. .. 17,891,233 33.146,309 96.21 June 15 .. .. 17,743,879 33,247.147 96.47 June 22 .. .. 18.269.816 33.270.901 93.22 June 29 .. .. 17,933,003 33,305.626 94.60 July 6 . . . . .. 17.723.591 33,344.113 95-03 July 13 .. .. 17.666,153 33.622,083 93.67
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/WC19310811.2.30
Bibliographic details
Wanganui Chronicle, Volume 74, Issue 188, 11 August 1931, Page 6
Word Count
334The Wanganui Chronicle TUESDAY, AUGUST 11, 1931 THE MONEY MARKET. Wanganui Chronicle, Volume 74, Issue 188, 11 August 1931, Page 6
Using This Item
NZME is the copyright owner for the Wanganui Chronicle. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International licence (CC BY-NC-SA 4.0). This newspaper is not available for commercial use without the consent of NZME. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Log in