THE BANKING RETURNS.

Press, Volume LXIV, Issue 13168, 15 July 1908, Page 6

THE BANKING RETURNS.

The banking returns of the Dominion for the quarter ended June 30th Teflect, as they might be expected to do, the change which has taken place in the commercial and economic condition of the country.' The outstanding features are an increase in the advances and discount, a decrease in the free deposits, and an increase in the amount of assets in the Dominion as compared with the liabilities. The advances, compared with the June quarter of last year, have increased from £16,033,352 to £19,136,575, and the discounts from £1,987,162-to £2,274,840. This is no doubt mainly due to the fact that owing to the fall in prices of some of our staple articles of produce, and the lateness of the season delaying shipments, the producers and the trading community generally have had to seek more assistance than usual from their bankers. The fixed deposits show an increase of £165,967, as compared with last quarter, and of £93,636 as compared with the Juno quarter of last year, responding, no doubt, to the increased rate of interest allowed. The free deposits, consequent on the increased demand for money, show a decrease of £681,654 as compared with last yoar. These figures are quite sufficient to explain the slight stringency which has been experienced in the local money market, and the consequent rise in the rate of mortgage interest. Tho assets of the banks in the Dominion now show an excess of no less than £4,813,826 over their liabilities, whereas at the same time last year the local liabilities exceeded the local assets by £119,241. Twelve months ago. 1 with dear money in London, the banks found it profitable to employ a large proportion of their funds there. Now the position is reversed. Money is cheap in London, and there is a strong demand for it out here, with the re-

stilt that tho banks have now lent not only the whole of their deposits but £156.469 of their capital besides. This shows an active and profitable state of business for the shareholderSj always supposing the advances to be well secured, which we have no reason to doubt. But it also shows that so far as the industrial and commercial classes are concerned the time has arrived for caution rather than for attempting to force the pace any further. The recent rise in the price of wool, and the more hopeful outlook of English trade, supposing it to be maintained, should bring relief to the situation.