TRADING BANKS

Gisborne Herald, Volume LXVI, Issue 20076, 24 October 1939, Page 2

TRADING BANKS

SEPTEMBER RETURNS HIGH DEPOSIT LEVEL AGGREGATE £67,639,000 NOTES TOTAL £13,420,000 The monthly statements of assets and liabilities of the six trading banks at the close of business on Monday, September 25, has been gazetted. A comparison of the principal * items with the corresponding figures in the August return is as follows: —

The greatest movement in the period since the last return has been an increase of some £1,360,000 in the value of the note circulation. Both classes of deposits have remained at substantially the same level while there has been an increase of roughly £200,000 In advances. The assets of the banks have risen in value by slightly less than £230,000.

Notes jn Circulation Notes of the Reserve Bank held as till money* on September 25 were valued at , £3,227,140, compared with £3,735,383 the month before. The issue at the end of September was £16,647,695, making the active circulation £l3 420,555.

The issue and circulation at the end of September in the past four years have been:—

Free deposits, or current account balances, are nearly .£4,500,000 higher than they were in the September return last year, and very much the greatest in value for any corresponding month since 1934. , Fixed deposics are roughly £270,000 lower than last year. The total of the two, £07,639,000, is eloquent of the amount of liquid funds available for the use of commerce and industry if called upon. The levels of the two classes of deposits and their totals in the September' returns from 1934 onward are as follows: '

Advances and Deposits

Advances at the end of September were £3,650,000 lower in the aggregate than at the corresponding date a year earlier. Despite the fall, the total is still the highest for the month in any of these returns, with the sole exception of 1938. The acccompanying increase in deposits makes their excess over advances £14,000,000, a return to levels shown prior to last year.

The position at the end of September in the past six years is shown in the following table: —

Fluctuations in the value of assets held abroad on account of New Zealand business shown in the September returns since 1934 have been as follows: —

Subsidiary coin held at September 25 was valued at £662,769, compared with £707,763 in the August return. The banks also held gold valued at £205 at the end of September.

September £ August £ Circulation . 13,420,555 12,066,805 Free .deposits . 37,412,533 37,366,662 Fixed deposits . 30,226,482 30,040,758 Advances . 53,624.229 53,417,221 London assets . 4,577.000 4,347,960

Issue Circulation Seot. £ £ 1936 . . 11.174,758 7,771.942 1937 ., . : 2,994,386 9,262 066 1938 . . 13,734,619 10,360,277 1939 . . 16,647,695 13,420,555

Free. Fixed Total Sept. £ £ £ It) 34 .. 25,771,320 39,586,720 65.358,040 1935 .. 24,835.039 36,750,637 61,385,076 1936 . 23,934,057 34.485,842 63,420,499 1937 . 32,390,247 33,051,072 65,941,319 1938 . .32,927,965 50,495,768 63,423,733 1939 . 37.412.533 30,220,482 67,639,015

Excess of Sept. Deposits Advances Deposits f l • 1934 .. 65,358,040 41,603,07.8 23,754,967' 1935 . 61,385,676 47,711,493 13,674,183 1936 . 63,420.499 45,999,813 17,420,686 1937 .. 65,941.319 50.695,729 15,245.590 1938 . 63,423 733 56,275,749 7.147.984 1939 . 67,63.9.015 53,624,229 14,014,786

Sept. Lond j.i Elsewhere Total £ £ £ 1934 .. 7,751,171 9,129,041 16,880.812 1935 .. 16,206,526 5,672,475 21,879,001 193G .. 12,899,571 5,875,499 18,676,070 1937 .. 8,147,270 4 225,095 12 372,371 1938 .. 4,057,743 2.718,117 7,375,800 1939 .. 4,577,000 1,729,757 6,306,757