TRADING BANKS

Gisborne Herald, Volume LXVI, Issue 19998, 25 July 1939, Page 7

TRADING BANKS

JUNE STATEMENTS LONDON ASSETS HIGHER MONTH’S RISE OF £580,500 ADVANCES £1,000,000 LOWER The monthly statement; of and liabilities cf the six trading b* at the close of business on Monda^, June 26, has been sazeuted. A *; parison of the principal items, with me corresp-ondinE figures in the 1e - turn at May 29, is as follows;

London assets, held on account of New Zealand business, aie all higher in value than at the end o, Mav This increase follows two decline's of £1,110,294 and £303,451 in May and April returns respectively. Advances, which had been incieas.ng for some time, have now taken a downward turn, the decrease for the month being £1,037,995. There has been little variation in the level of either free or fixed deposits since tnc May statement was compiled. Notes in Circulation Notes of the Reserve Bank held as till money on June 20 were valued at £3,935,795, compared with £4,00G,05i a month before. The issue at the end of June was £15,407,281, making an active circulation of £11,531,(95, a decrease of £33,698 compared with the May total. * r .. Pit'onlnt ihh

Free deposits, or current account balances, are £2,213,370 higher than they were in. the June Tcturn last year. The present is tire highest June total since returns were Issued in their present form, being over £11,000,000 greater than the figure m 1935. Fixed deposits have declined in the 12 months by £1,631,644, the combined movement leaving tire total of the two classes of deposits some £530,000 greater than at the end ot June last year. The aggregates of the two classes and their totals in the June returns from 1935 onward are as follows:

Advances at the end of June were £204,449 (higher than at the corresponding date last year. The increase Is not so striking as that between June, 1937, and 1938, during which period advances rose by more Ilian £7, 000, 000....The increase in bank lending dates from the period between 1936 and 1937 when there was a rise of over £2,600,000. The position at the end of June in the past five years is shown in the

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

Subsidiary coin held at June 26 was valued at £752,492, compared with £764,003 in the May return. Tire banks also held gold valued at £237 at the end of June.

June May £ £ Circulation Free deposits . 11,531,795 37,27(3,032 11,565,493 37,315,788 Fixed deposits Advances London assets 29,426,334 55,090,252 4,668,955 29,600,307 56,128,247 4.088,444

Issue Circulatior June £ £ 1937 ,.. 12.630,838 8,658.850 1938 .. 13,774.724 9,524,726 1939 .. 15,467,281 11,531,795

Free Fixed Total June £ £ £ - 1935 25,921,898 35,826,533 61,748,431 1936 30,805,731 36,066,713 66,872,444 1937 36,052,543 32,947,959 69,000,502 1938 35,602,662 31,108,048 66,170,710 1939 37,276,032 29,426,384 66,702,416 Advances and Deposits

following table:— Deposits Advances Excess of deposits June £ £ £ 1935 61,748,431 45,172,184 16,576,247 1936 66,872,444 45,077,019 21.795,425 1937 69,000,502 47,710,899 21.289,603 1938 66,170,710 54,885,803 11,284,907 1939 66,702,416 55,090,252 11,612,164

London Elsewhere Total June £ £ £ 1935 18,682,794 5,813,844 24,496,638 1936 17,316,659 5,900,334 23,216,993 1937 12,174,139 5,027,435 17,201,574 1938 8,308,799 3,054,151 11,362,950 1939 4,668,955 1,467,107 6,136,062