TRADING BANKS

Gisborne Herald, Volume LXVI, Issue 20056, 30 September 1939, Page 2

TRADING BANKS

AUGUST STATSHI#S ADVANCES £752,000 LOWER &NDO^‘ASSETS DOWN DEPOSITS AT HIGH LEVEL 'the monthly statements of assets and. liabilities of the six trading banks at the close' of business on Monday, August 28, were gazetted on Thursday night. A comparison of.the principal items with the corresponding figures in the July, return is as follows:

London assets held on account of New Zealand business . show little movement since -last month's,_ statement, there having, been a-,|all.«f £245,000' in‘ their value. Advances continue the falling tendency they have shown in recent months, the_ae crelse between July and August beittl £752,099. • ; /

Notes-hi Circulation . ■ Notes of the Reserve Bank held as tm money on August 28 were valued at £3,735,383, compared with £3,555,344 the month before. The August 28 issue totalled making active circulation £12,066,805. The issue arid circulation at the end. of August in the past four years have: been: —

Free deposits,, or, current account balances, are;; £3056,221 -.higher than they were’ in the August return last vew. This'latest'level is-by a large margin the highest for any August since the returns have been The increase on the figure in 1934 is over- £11,000,000. Fixed .deposits..continiie in a modified degree to fall noticeably since 1934. The decrease compared W/ith the August, year has been just over £600,000. The total of deposits -this-year- -.is the highest in any .return for the montes in the six>years-during which the returns have been issued. The levels of the two classes of deposits and’ their totals in the August returns from 1934 onward are as follows:

Advances and Deposits

Advance^.'.at ; the end of August were £2,225,623 lower ,in value than at the corresponding date last y e&l p :" e " strictwn of imports has d r ml ?* l affected the demand for bank lo^ s to finance seasonal trade, Nevertheless the level of advance’s cotnmues high compared with that shown- m August two years ago- and eariier, ■being more than £12,q60,000 above the figure in 1934. The position at the end of August in the past six years is shown m the following table:— ;

Fluctuations in the value of assets held abroad on account of New Zealand business, shown in the August returns since 1934,* have been as follows:. V

Subsidiary coin held at August 28 was valued at £707,763, compared with £719,600 in the July return. The banks also HelcT - gbld" Valued at £3lB at the end of August.

' V, 1 August July * ■ ?j£ £ £ Circulation .. 12,066,805 12,138,020 Free deposits Fixed.- deposits Advances 37,366,662 30,040,758 53,417,221 37,044,635 29,702,084 54,169,320 London assets 4,347,966 4,592,140

Issue Circulation August . . . £ £ tt936 .. 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

Free Fixed Total Aug.' 1934 • • ■ £. ... 26,184,575 £ 40,263^006 £' 66,447,581 1935 24,778i818 36,382,220. 61,161,038 1936 29,906,883 34,893,116 • 64,799,999 1937 33,698,512 33,361,168 67',059,680 1938 33.710,441 30,654', 645 64^365,086 1939 37,366,662 30,040,758 67,407,420

Excess o I Deposits Advances Deposits Aug. 1934 £ 66,447,581 r £ £, 41,261,010;. 25,186,571 1935 61,161,038 46,339,960 14,821,078 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 67,40.7,420 53,417,221 13,990,199

London Elsewhere Total Aug. £ £ ' 1934 11,171,987 9,225,542 20,427,529 1935 17,173,501 6,024,546 23,198,047 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