TRADING BANKS

Dominion, Volume 35, Issue 289, 4 September 1942, Page 7

TRADING BANKS

Deposits Up; Advances Down An increase in deposits, a fall in advances and an increase in net overseas funds are shown in the* latest returns of the trading banks. The . monthly summary of assets and liabilities as at Monday', July 27, published in accordance with the provisions of the Reserve Bank Act, show the following figures in respect of the six banks :— LIABILITIES. £ (a) Demand liabilities in N.Z. ‘02,382,989 (b) Time liabilities in N.Z. ... 27,9711,062 (c) Demand liabilities elsewhere than in N.Z. incurred in respect of N.Z. business .... 078,983 (d) Time liabilities elsewhere than in N.Z. incurred in respect of N.Z. business .... 94,881 (m) New Zealand business — Excess of assets over liabilities , 19,569,823 Total 11110,697,688 ‘lncluding transfers from (Bank of New Zealand’s long-term mortgage fund of £36,100. ASSETS. £ (e) Reserve balances fiield in the Reserve Bank of N.Z 19,058,823 (f) Overseas assets in respect of New Zealand business—(.l) In London 91,362,910 (2) Elsewhere 2,850,399 (g) Subsidiary coin in N.Z. .. 621,7411 (h) Aggregate advances in N.Z. 42,542,836 (h) Aggregate discounts in N.Z. 128,169 (j) Reserve Bank of N.Z. notes 4,048,025 (k) Securities held in N.Z.— (1) Government 27,243,304 (2) Other than Government 906,774 (l) Value of land, etc., held in t N.Z 1,925,708 Total ..... M 0,607,688 (hh) Aggregate unexercised overdraft authorities 34,968,104 Overseas Funds Increase. London funds on July 27 totalled £11,362,910, an increase of £371,065. Overseas funds held elsewhere than In London were £2,859,399, an increase of £200.531. total overseas funds thus being £14,222,309, aif increase of £661,596. Against the.se funds were demand and time liabilities amounting to £773,864, thus making the banks’ net overseas assets £13,446,445, compared with £12,097,109 on June 29, an increase of £851,386. Increase in Deposits. Demand liabilities on July . 27 were £62,362,960. an increase of £2,001,203. Time liabilities were £27,971,082, a decrease of £1.11,562. The total of demand and time liabilities was £90,354,001, a net increase of £1,889,641. The total of demand and time liabilities elsewhere than in New Zealand was £773,864, a decrease of £189,740. The banks' excess of assets over liabilities was £19.569.823. a decrease of £389,707. Reserve .balances of the six banks totalled £19,058,822, an Increase of £2,392,95-5. Government securities held (by the banks totalled £27.243,304, an increase of £946. Other securities at £906,774 show a decrease of £2586. Fall In Advances. Aggregate advances on July 27 were £42,542,836, a fall of £1,540,0r0. Aggregate discounts at £128,169 were, £109,569 lower. The total of advances and discbunts was £42,671,005, a decrease of £1 640 644. The excess of demand and time liabilities over advances and discount® was £47,632,996 compared with £44,143,741 on June 29. The ratio of advances and discounts to total deposits on July 27 was 47.226 per cent., compared with 50.009 per cent, on June 20, 48.231 per cent, on May 25, 52.044 per cent, on April 27, 55.176 per cent, on March 31 and 51.670 per cent, on February 23.

The aggregate unexercised overdraft authorities on July 27 amounted to £34,988,104, an increase of £1,096,300. The total of advances and discounts and unexercised . overdraft authorities was £77,659,109.. a decrease of £053,344.

The active note circulation on July 27 was £21,875,028, an increase of £405,856.

Milne & Choyce.Profits (By Telegraph—Press Association.) AUCKLAND, Sept. 3. Milne and Choyce, ’Ltd., drapers, report a net profit of £18,946, compared with £18,551 last year, after providing £51,650 for taxation and £6tfflß for depreciation. The preference dividends proposed are unchanged, but payment on the ordinary shares and perpetual debenture stock has been raised from’ 5 to 6 per cent. • Broken Hill Steel Output In their report, directors of the Broken HiU Proprietary Co., Ltd., state that the period has been a busy though somewhat difficult one at Newcastle steel works. ■ Output for the first half of the year was a record, but for the second half, because of Increasing pressure of wartime conditions, was not so favourable. Close and constant co-operation with the authorities in supplying defence requirements was continued. Many specifications for varieties of steel and other metals, which were not previously made by the company, had been successfully produced either by the company or its associated companies, Among these were the satisfactory manufacture of bullet-proof steel, tungsten carbide tool tips, and stainless steel. The construction programme had been steadily carried on throughout the year. Plant for the .manufacture of magnesium had been completed, and extensions to ferro-alloys plant, cold rolling mill, and rolling stock were well in hand. Costs had continued to rise steadily because of general conditions, coupled with extraordinary 'difficulties connected with transport of iron ore, etc. Metal Quotations Latest metal quotations in London are:—Copper; Electrolytic, wire bars, £62. Lead: Soft, spot,, £25. Spelter: Spot, £25/15/-. Tin: Standard, spot, buyers £259, sellers £260; three months, buyers £262, sellers £263 a ton. ’Silver: Standard, spot, 1/JilJ (unchanged), forward, 1/11} (unchanged): fine, spot 2/1 3-8 (unchanged), forward 2/1 3-8 (unchanged). Gold: Fino, £B/8/- (Bank of England buying price) per ounce. Commercial Bank Of Australia A net profit of £24:1,813 reported by the Commercial Bank of Australia, Ltd., for the vear ended June 30 is a decrease of £16,297. The preference dividend of 4 per cent, amounts to £84,694, and an ordinary dividend of. 6.66 per cent., reduced from 7.0 S per cent., requires £133,333. The amount allocated to writing down premises is £25,000, against £35,000 the previous year, and £'1114.2411 is carried forward, against £11’5,456 brought forward.

Stock And Share Indices (By Telegraph.—Press Assn.—Copyright.) LONDON, Sept. 1. “Financial Times” stock and share indices with previous quotations, are (October 15, 1926 equals 100): —

Dow Jones Averages (By Telegraph.—Press Assn.—Copyright.) NEW'YORK, Sept. 2. Dow Jones averages (1926 equals 100), and turnover on the New York Stock Exchange compare as follows;—

Govt, sec’s. Home rails. Industrials. Goldmines. 1941 ('high) . 114.6 54.3 105.9 183.3 191.1 (low) . 112.0 41.5 83.0 166.4 Aug. 26 ... 114.3 57.1 104.3 142.9 Aug. 28 ... 114.4 57.4 105,2 143.0 Aug. 31 ... 114.6 57.6 105.6 144.2

20 Rail roads. Industrials Shares sold. 19-11 (high) .. .. 80.88 133.30 — 1941 (low) .... 4. 24.45 109.27 Auk. 28 .. 26.3(1 .100.23 300,000 Aug. 29 .. 26.23 10(1.41 137,000 Aug. at . 20..19 106.33 247,000 Sept. ‘1 .. 20.19 106.28 291,000 Sept. .. 26.00 100.10 270,000