TRADING BANKS

Dominion, Volume 28, Issue 109, 1 February 1935, Page 14

TRADING BANKS

Decline in Fixed Deposits ADVANCES INCREASING A substantial decrease in fixed deposits and a net decrease of £1,000,000 in total deposits, with a further increase in advances, are shown in tin trading batiks’ monthly returns as at the close of business on Monday, December 31. 1934. The returns which are furnished to the Reserve Bank in accordance with section 46 of the Reserve Bank of New Zealand Act. 1933, were gazetted last night. The aggregate figures for the six trading banks, expressed in New Zealand currency, are ns follow:—

Note Circulation Higher. The statement permits of a comparison with the position on July 30, immediately before the Reserve Bank opened for business, and at monthly intervals to the last Monday in December. The trading bank? own notes in circulation, payable in New Zealand, were reduced during the latest period by £360,062. On December 31 the total note circulation in the Dominion stood at the high figure of £6,841,823, compared with £6.088.770 on November 26, an increase of* £753,053, due to the demands of Christmas trade and holidays. The position of the total note circulation, as revealed hi the returns since July 30, is shown in the following comparative statement: —

Fixed Deposits Lower. The demand liabilities of the trading banks in New Zealand as at Decemberjjl (current accounts, etc.) stood at £24,177,444, an increase of £342,400 compared with those on November 26. Time liabilities, or fixed deposits, in New Zealand at December 31, stood at £36,762,124, a reduction of £1,303,441 since November 26. The demand and time liabilities in New Zealand totalled £60,939,568, a reduction of nearly £1.000,000. A comparison of the free and fixed deposits in the trading banks in New Zealand, and the totals of the two at monthly intervals’since July 30, is as follows:

Demand liabilities elsewhere than in New Zealand incurred in respect of New Zealand business stood at, £259,563 on' December 31, compared with £312,257 on November 26, a reduction of £52,694. Time liabilities elsewhere than in New Zealand incurred in respect of New Zealand business stood at £840,425 on_ December 31, compared with £859,405 on November 26, a reduction of £12,980. Increase in Advances.

The advances and discounts in New Zealand on December 31 totalled £44,903,506, or £485,869 more than on November 26. This is the highest total shown in any of the monthly returns, and is £817,900 greater than on July 30. The relative position of deposits and advances is shown in the following com-

The ratio of advances and discounts to total .deposits in New Zealand at December 31 was 73.68 per cent., compared with 71.77 per cent, on November 26. The London balances held by the six banks in respect of New Zealand business were £407,460 higher on December 31 than on November 26. Similar assets held elsewhere than in London showed a reduction of £144.865. The totals of overseas assets held on account of New Zealand business, in London and elsewhere, are compared in the following table: —

Reserve balances held in the Reserve bank on December 31 totalled £9,071,699, compared with £10,737,491 on November 26, a reduction of £1,665,792. BUTTER MARKET QUIETER Cheese Prices Steady Joseph Nathan and Co.. Ltd., have re-, ceived the following cable from their principals, Trengron.-'e and Nathan Ltd., Loudon, dated January 30: —New Zealand butter market quiet; S 7- per cwt. New Zealand cheeee : White,- 47/- per'cwt.; coloured. 46/- per cwt. Steadier. The New Zealand Loan and Mercantile Agency Co., Ltd., have received the following advice from their London house, dated January 30: —Dairy produce (last week's quotations in parentheses) : Butter, New Zealand choicest salted. 86/- to 87/- per, cwt. (82/- to 83/-). Market weak owing to lack of business. Cheese: 46/- to 47/- per cwt. (45/- to 46/-). Market quiet. London Lamb Prices- Easier Dominion Special Service. . FeJlding, January 31. The New Zealand Farmers’ Co-op, Distributing Compaßy, Feilding, has received the following cable from its London ollice :— “Meat: Excessive supplies of honie-killed beef are depressing the market. The tendency is for a price easement for best lambs coinciding with heavier arrivals. Mutton sales are slow.”

Bulolo Gold Dredging I Bulolo Gold Dredging, Limited, New Guinea, which began operations less than three years ago, has now reached u stage where its annual production approaches in value £1,000,000 in Australian currency. This is a remarkable achievement, considering the difficulties encountered before the producing point was reached. The company was dependent entirely on air transport from the New Guinea coast for its machinery and the dredges were carried piecemeal and assembled on the property. Four dredges are now operating, and the construction of at least two now dredges is contemplated. To date 12.000 tons of freight have been carried by air. For the year ended December, 1934. a total of 1,08,278 line oz. of gold was produced. The output in fine oz. for the first half of 1933 is not available, but the yield for the last half of the year was 45 1550 z. From June to December. 19b4. a total of 64.603 fine oz. was produced. The total value of the-output in 1934 was £920.361 in Australian currency, compared witli £675.433 in the previous year. Base Metals Market By Telegraph.—Press Assn.—Copyright. (Received January 31. 8.30 p.m.) London. January 30. The official London (middle) quotations for Wednesday as reported by the Australian Mines and Metals Association, compare as under with those previously

AUCTION DIARY to-day. J 3 I’anilimi St.. 2.30 p.m.—Building site (11. E. Leighton). Stortlord Lodge, 1 tastings—Ewe Fair (Williams and Keltic). Glen Rd., Kelbiirn, 10.30 a.m.—Furnishings (Johnston). 55 Brougham St.. 10.30 a.m—Furnishings (Silverstone). Cuba St.., - I’in Furniture (Silverstone). 01 Dixon St., 1.30 p.m.—Furniture (C. W. Price).

London Wool Sales By Telegraph.—Press Assn.—Copyright. London, January 30. At the wool sales 6491 bales were offered, including 2766 from New Zealand. About 5529 bales of Australian and New Zealand wool were sold. There was a lium tone, with some Continental competition at full rates. New Zealand, greasy merino, Morea, 10d„ BJd. Sydney Wool Sales Firm By Telegraph.—Press Assn.—Copyright. (Received January 31. 9.35 p.m.) Sydney, January 31. At the wool sales to-day 11,320 bales were offered, 10.198 being sold at auction and 518' privately. A The market closed firm with prices equal to the best rates of the previous day. Competition wits well sustained with improved inquiry for skirtings. Greasy merino made 15i}d. New Guinea Gold Mining Quartz Mountain (Papua). Limited, reports that the engineer at Misima radios: Engine and generator erected anJ power available when required. All other construct ion work proceeding, snt isfuctorily. Full complement native labour nuiiutained, and health of the camp is good.

CREDIT. (a) Demand liabilities in New 24,177.444 (b) Time liabilities in New Zea36,702,124 (c) Demand liabilities elsewhere than in New Zealand incurred in respect of New Zealand business 259,563 (d) Time liabilities elsewhere than In New Zealand incurred in respect of New (j) Zealand business Notos of own issue in circulation payable in New S4G.425 1,486,235 Total 63,531,791 DEBIT. £ (e) Reserve balances held in the Reserve Bank of New Zea9,071,699 (f) Overseas assets in respect of New Zealand business— (1) In London (2) Elsewhere than in Lon10,618,328 d o n 8,924,254 (g) (1) Gold and gold bullion held in New Zealand . • (2) Subsidiary coin held in — . New Zealand 614,891 (h) Advances and discounts .In New Zealand 44,903,506 (i) Reserve Bank of New Zealand notes 4,416,691 Total - 78,549,369

Trading Reserve Banks. Bank. Total. £ £ £ July 30 ... 6,220,241 — 0,220,241 Aug. 27 ... 3,609,161 2,487,213 6,090,377 Sept. 21 ... 2,716,064 3,407,607 0,183,071 Oct. 20 ... 2,206,305 3,834,003 0,040,968 Nov. 20 ... 1,840,297 4,242,473 0,088,770 Dec. 31 ... 1,480,235 5,355,588 0,841,823

Free Fixed deposits. ' deposits Total. £ £ £ July 30 . . 24,621,000 40,592,374 65,213,980 60.447,581 Aug. 27 . . 26,184,573 40,263,006 Sept. 24 . . 25,771,320 39,580,720 65,358,040 Oct. 29 . . 24,025,030 39,045,737 63,070,767 Nov. 26 . . 23,835,044 38,065.565 61,900,609 Dec. 31 . . 24,177,444 36,702,124 00,939,508

para tire tabic: — Excess of deposits. £ Deposits. £ Advances. £ July 30 .. ('>5,213,980 44,085,605 21,128,375 Aug. 27 .. 00,447,581 41,261,010 25,180,571 Sept. 24 .. 05.358.040 41.003.073 23,751,907 Oct. 29 .. 03.070,707 43,539,541 19,531,223 Nov. .. 01.900.000 44,417,037 17,482,972 Dee. 31 .. 00.939.568 44,903,506 16,030,002

London. Elsewhere Total. £ £ £ July 30 ... S,821,538 8.359,977 17,181,515 Aug. 27 ... 11,171.987 0.255.542 20,427.520 Sept. 24 ... 7,751.171 9,129,041 10,880,812 Oct. 2!) ... 10.494,570 8.948,811 19,443.381 Nov. 20 ... 10.120.80S 9,009,119 19,189.987 Dec. 31 ... 10.018.328 8,024,254 19.542,582

cabled: — Jan. 30. •Ian. 29. Per ton. Per 1 ton. Copper— C s. d. C 8. d. Standaril 27 11 3 27 0 »» Standard, forward 27 IS 1* 27 IL Elea rolyl ie .... :m 15 <i 30 5 0 to 31 0 0 30 15 0 Wire bars Lead— 31 0 U 30 15 0 Spot , Id S 9 IP 8 0 Forward 10 10 0 10 8 p Spelter — 6 12 3 0 12 1 3 12 0 0 I’in— Spot 232 8 0 232 17 228 18 !' 22S 18 SilverStandard. per oz. . Fine 24 {d. 21 tt-lltd. 2G 11-lGd. 2GA(I.