DEPOSITS INCREASE.

Auckland Star, Volume LXXI, Issue 230, 27 September 1940, Page 4

DEPOSITS INCREASE.

TRADING BANKS' RETURNS.

LOW LEVEL OF ADVANCES. WELLINGTON, Thursday. The monthly statement of assets and liabilities of the six trading banks on Monday, August 26, was gazetted to-night. A comparison of the principal itemg with the corresponding figures in the return at July 29 is as follows: — August. July. £ £ Circulation 15.642,111 15,365.101 Free deposits 48,831,125 48,422,650 Fixed deposits 30,869,671 30,745.294 Advances 45,378.568 46,101.507 London assets 13.394,842 13.777,422 Notes of the Reserve Bank held as till monev on August 26 were valued at £4,424,007. compared with £4.258,335 a. month before. The issue at the end of August was £20.066.118, making the active circulation £15,642,111. The issue and circulation at the end of August in the past five years have been: — Issue. Circulation. £ £ 1936 11.148,294 7,791.289 1937 12,793.755 9.119,976 1938 13,696,216 9,897.360 1939 15,802.188 12,066", 805 1940 20,066.118 15,642.111 The total of deposits of both classes, £79,700,796, is £12,293,376 higher than the i figure for August la6t year. Free deposits, or current account balances, at £48,831.125, contribute most of the increase, beLng £11,464,463 higher than the 1939 total. Fixed deposits are £828.913 more. The low level of advances, £8,038,633 less than shown in August last year, makes the total the smallest in any year since 1936. The position at the end of August in the past five years is shown in the following table: — Excess of > Deposits. Advances. deposits. £ £ > £ 1936 64.799.999 45.825.860 18.974.139 1937 67.059,680 49.475,817 17.583.863 1938 64,365,086 55,645,844 8.719.242 1939 67,407,420 53,417,221 13,990,199 1940 79,700.796 45.378.588 34,322,208 Fluctuations in the value of assete held abroad on account of New Zealand business 6hown in the returns since 1936 have been as follow:— London. Elsewhere. Total. £ £ £ 1936 14,437,895 5.957.121 20,395,016 1937 9,269.550 4,293,700 13,563,250 1938 5.835,691 2,895,691 8.731,382 1939 4,347,966 1,492.159 5,840.125 1940 13.394,842 2.127.048 15,521.890 Overseas liabilities on New Zealand account totalled £3,014,131, against £2,985,043 at the end of July. Subsidiary coin in the banks at August 26 was valued at £685,989, compared with £699.883 in the Julv return. They also held gold valued at £387. RESERVE BANK OF N.Z. BANKS' DEPOSITS RISE. STERLING FUNDS REDUCED. WELLINGTON, Thursday. The Reserve Rank return for the week ended Monday, September 23, is balanced at a figure £11,324 higher than that of the previous Monday. The small variation in the total results from considerable movements largely balancing one another. Liabilities in currencies other than New Zealand by a fall of £622,000 return from the abnormal level of the previous week to a figure comparable with that usually shown.

The statement, with variations compared with the week before, is as follows:—

Variation. £ £ General reserve 1,500.000 Same Bank notes 20,099.347 4-70,750 Demand liabilities— State 5,038.860 —496.549 Banks 15,412.657 4-896,359 Other 177.954 4-18.032 Other currencies .. 12.511 —622,098 Other liabilities ... 977.748 4-144.830 Total 43,218,977 4-11.324 ASSETS. Reserve— Gold 2.801,852 Same Sterling exchange . 10,101,854 —115.184 Subsidiary coin 118.587 4-5.015 Advances— Marketing 3,034.082 —213.706 Other 34.040.000 Same Investment 3,553.220 Same Other assets 569,383 4-335.199 Total 43,218,977 4-11.324 Proportion of reserve to notes and other demand liabilities, 31.651 per cent (30.776 rast week). —(Press Asen.) Three Years Compared. The following taole shows the position of the bank's funds at this date for the past three years (in thousands of pounds): 1938. 1939. 1940. Bank notes 13,735 16,647 20,099 Deposits— State 3,914 1.794 5.039 Banks 5.386 12.573 15.413 Exchange .. 11,449 5,311 10,102 Advances— Marketing 3.159 4.593 3.034 Other 4,500 16.250 24.040 Ratio (per cent) 60.79 25.82 31.651 BANK OF ENGLAND. (Ree. 11.30 a.m.) LONDON. Sept. 26. TIM Bank of England return for the week ended September 35 Is given in the following table, together with the returns for last week and a year ago:— ISSUE DEPARTMENT. (In millions of pounds.) Sept. Year Notes Issued— 25. ago. In circulation 604.7 541.8 In banking department . 25.5 38.3 Other Government securities 615.2 565.5 Other securities :\a 3.3 Silver coin 0.0 0.2 Gold, coin and bullion 1.0 1.0 BANKING DEPARTMENT. Rest • 3.6 3.7 Deposits— Public 13.5 19.8 Bankers' 116.0 107.2 Other accounts 51.9 40.5 Government securities 147.8 120.3 Discounts, advances 3.5 2.5 Other securities . 21.9 23.9 Notes and coin 26.3 39.0 Proportion 14.48 23.27 Rate of Discount. The Bank of England rate of discount is 2 per cent, to which it was reduced on October 26. 1939. from 3 per cent.