BANKING RETURNS

Press, Volume LXVIII, Issue 14326, 11 April 1912, Page 7

BANKING RETURNS

FRO3I A SPECIAL ' OM.r.SrON»-NT. I

AVELLINGTON, April 10

The banking returns for the Alarch quarter are now available, aud the figures show very conclusively that there has been a considerable amount of over importation. The advances and discounts combined exhibit an increase of £3.229,160. as compared with the corresponding quarter of last year, while the fixed and free deposits together show an increase of only £5-16,856. As a rule, and under normal conditions, the increase in deposits approximates to the expansion in advances, and since there is no such approximation in the figures quoted, it is obvious that there has been a big transfer of credit, aud such a would be rendered neee..sa>-v by excess of imports. AA"e have received value, but tho value is iv merchandise, which must iv due course be converted into cash. The aggregate of the assets is £31,427,151, and the liabilities total £23.195.668. the excess of assets over liabilities thus being -3,231,783. The liabilities of the Bank of New Zealand in New Zealand exceed the assets by £1.51)8.163, but all the other institutions show substantial differences in favour of the assets. As already stated. the advances havo expanded by £3,274,1(59. in which all 'thy banks shared, as the tabic appended shows: — Mn-ri.il, M.irrli. Bank 1011. 191... Inc. £■- - * y«\v Zcal-nd (v 61,506 5,214,72.| 1,450,21" Union . -UCViI! 3.G92 20.! '525,.>0.1 X.S. AValoa -2,625,•1i'* -1.0*1',93!l -1.")ti..'i16 Australasia: 2,707,71.7 3,177.57 l 170, ci s l National .. 2 718.171 3,117..:i17 3G9.113 Total. 18,009,551 21,281.i.xl .1.27-1.IK) There has not been so large an increase in any Alarch quarter during the last five years. The nearest to it was in 1908. when the increase was £3,033,750. The discounts in the past quarter aggregated £1,815,197. as against £1,790,806 in Ihe corresponding quarter of last year, exhibiting au increase of £54.691. Increases are shown by the Bank of New Zealand £63,200/ Union Bank £21,4-15, and National Bank £13.011. The decreases were:—Bank of New South Wales £37,052, and Rank of Australasia £8946. The movements in the advances and discounts for the Alarch quarter of each of the past five years are disclosed in the following table.: — MARCH QUARTER. Disoctints. Advance*.. Total. £ - . £ liiOS .. 2 0.5.795 ]5,.-5f2,311> 20,635.10*> 190.1 .. 2,132,562 IS.ISGfiOO 20,319,471 101U .. 1,81.i.317 10.178,128 17,993,4 <5 IUII .. 1.790 &05 18.00ty>!>l 19,710,390 1912 .. 1,615,497 21.284.0.V' 23.139.550 Now we como to the deposits and the three classes combined disclose a shrinkage of £3-15,740, which arises entirely through the decrease in the Government deposits. The, fixed aud free deposits show an increase of £546.856. Tho aggregates of the deposits compare as under:— March, March, 1911. 1912. r c Governing. deposits .. 3,165,614 2.273.016 Free deposit? .. 12,974,315 13,644.146 Fixed deposit* .. 10,495,731 10,372.756 Totals .. 20.635,660 ->6.26D.9'20 The Government deposits have decreased by £392,-596 and it is interesting to compare the Government deposits over a period of years. The figures are as under :— MARCH QUARTER. Tear. £ 1907 .. .. 2,415. air. 1908 .. 1,718,902 1500 ~ .. 1,224,4* M 1010 .. .. 2.336,107 1311 .. .. 3.165,61-1 1012 .. .. 2.273 01S

The shrinkages in 1908 and 1909 fol-. lowed on the heels of the American financial crisis and early in 1909 the Government had to retrench. It is to bo hoped that there will be no such repetition. although the banking figures show that, "the conditions are very much the same as they were after the -American crisisNow wo come to the free deposits .r current account balances, and these show an increase of £669,831, in which' all the banks shared, the proportions of the Union Bank and the. National Bank being exceptionally large. Tho figures of the several banks compare as under:— * March, March, Bank. 1911. 1912. hie. £ £ £ New Zealand' .. 6,101,005 6,415,751 314,746 Union .. 1.500,37il 1,040,8*. 7 110.503 IS'.S. AYnle*. .. ],635,585 1,655,057 16,472 Australasia .. 1,478.022 1,-!91,669 13617 National .. 1,950,324 2,140,782 181,453 Totals .. 12,974,315 13,644,146 669,831 The'fixed deposits for tho past quarter amounted to £10,372,756 as compared with £10,195,731 for the Alarch quarter of last year. There was thus a shrinkage of £122,975, in which «ll the banks except tho Bank of New* Zealand participated- The Bank of Sew Zealand registered an increase of £101,-109. The free and fixed deposits for the Alarch quarter of five years are appended:— MARCH QUARTER. Freo Fixed Year. deposits. deposit.. Total. • -£ £ £ 190S .. U,534,579 0,553,694 21,053,573 1909 .. 11,100,938 9.983 912 20,03-1880 1010 . .. 11,555,410 10,570 332 22.155J762 1911 .. 12,974,315 23,470.016 191-2 ~ 13,644,116 10,372.756 21,016,902 Tho movements in the fixed and free deposits .on the one hand, and the advances and discounts on the other, as compared with the figures of la.st year, are extremely interesting, and in tho table appended is shown how each bank has been affected:— Bank Deposits. Advances. £ <• Now Zealand .. 116,155 inc. 1,513,417 inc. Union .. 63,258 inc. 552,954 inc. aN".S. AVale- .. 13,903 inc. 319 464 inc. AAustrnUoia .. 109,563 drc. 161,138 inc. National .. 163,103 inc. . 352.137 inc. Totals .. 546.656 inc. .3.229.160 inc. In explanation of the above table it may be stated that in the past quarter the fixed and free deposits with the Bank of New Zealand increased by £416,155. while the advances made and bills discounted by tne Bank increased £1.513,417, and so with the other institutions, the Bank ?in A "e l o ra - ,asia showi "g a decrease of - 10 e.e, ,o" dc P°sits. and an increase ol tlbl.U*) m advances, the aggre gates for the five institutions being" au increase of £546.856 in deposits, aud ?I_J nC l Case °J -3.229.160 in advances. Itjjjwe take the increases and decreases ot the aggregates for a period of years we get the following:— MARCH QUARTER. Year ' Deposit?. Advances. £ c KXB - 41,180 inc. 3.053,750 inc. 190) .. 1,003.60-1 dec. '•.18.6-.1 dec. 191 .. 2,070.«5-2 mc-: 0,-326,026 dec. ™.\\ ■■ '.314,2*4 inc. 1.806943 inc. IJI - •• 516.M6 inc. 3,229,160 inc. The figures tell the history of the Dominion a.s clearly as possible. In the second half 0f'1907 the American financial panic was experienced, causing a big drop m the prices of commoditiesThe effects of that panic were felt in New -ealand in 1908. and thus we see an abnormal increase in the advances, and a very minute increase in the deposits. 1,, tho following year the process °; liquidation nnd retrenchment was in full f oroc . an ,j tho deposits decreased by over a million sterling, due m a large measure to the departure ?[-i.r?i c Wuh mon «-y Australia. In 191U there was a compl/e recovery from the depression caused by the .Americans, and in 1911 normal conditions were restored. \\V are back now to the conditions of 190S and it is a question whether the recovery will bo as speedy a3 the position is comph-

rated by the great coal strike, which ! 'has impoverished our best customers, j 1,, spite ot what oti the fac «f it . appears adverse conditions, the note j circulation shows expansion, proving j that the people do not as yet tee! the necessity for economy, or. if felt, are I : uniible to economise. The circulation j I and metal reserve for the Alarch ; 'quarter of five years show a.-, under: — j

MARCH QUARTER. Coin and i A'c.;r Circulat.or.. BuLicn. .-- £ l'.'.Os .. 1.6-S-.1.753 I 075.(-.>s iriO-f .. I.VsT.OSi 1,712 95 1910 .. 1.61s 121 5.077,6-*:* 11/ll .. 1,661,16. .-..030.761 1912 .. ].7.l3,*S'J j. 32.5.011 The nerd for care and .caution has been repeatedly emphasised during the past six months, nnd it seems unnece--t-ary lo reiterate iho warning. The banking returns clearly indicatethat the Dominion will exponent*.* a trying time. whi:h may or may not be of short duration, and while there is no warrant for alarm, there -a much need for prudence and caution.