The Press. MONDAY, JANUARY 11, 1915 The Banking Returns.

Press, Volume LI, Issue 15173, 11 January 1915, Page 6

The Press. MONDAY, JANUARY 11, 1915 The Banking Returns.

We* agree .with the correspondent , who forwards us the Rankin-*. Returns for the closing quarter of 1914 that, on the whole, theso arc very satisfactory; Tho advances total £23,121,233. showing an increase, of £1,294.489. Tho discounts, which amounted to £1,811.573, show a decline of £203.010. These figures indicate, an our correspondent points out. that trader-., farmers, and others aro ablo to get along without requiring very .much"help from the banks: The free deposits show an increase of £1,381,604, and the fixed. deposits m. increase of £182,275. .or a' total expansion of £1,303,879. Thero i> also an increase of £832,481 iv the.Government deposits and. tho total of all classes in the hands to tho banks at the end of 1914 amounted of the very substantial hum of £26,521.G44: This constitutes "a re?ord, and show- that our producers have done well. During the last three years, however, the pi-ogre*"-** of settlement has caused an eager demand for mouev. --o that the advances have exceeded the deposits. Nevertheless, on December 31st. 1914. this excess was only £529.709 as compared with. £1,002.115 in 1913. We think this show- that while the peoole of New Zealand are'continuing to make money in « prosperous fashion. a number of them .are beginning to " wait arid see" before making fresh investments. We think that, on tho whole, this is a healthy sign. While tli© Empire is »t war due caution should be exercised with regard to ventures of a speculative nature. It is an exploded fallacy to suppo..-. as the chairman -of the Auckland Stock Exchange recently -suggested, that money deposited in tho banks is idlo and unproductive money. -,'■ On the •■ontrary. although the owners are receiviii'". only a moderate rate of interest—and in the case of tlie "free" deposits no intcre-t at ajl—it i> available for the purpose of Tarrying on the legitimate trade and industry of the Dominion, and at a time like the present is very much better so employed than in making more or less

soeculative purchases of mining shares. We have little doubt that the slackness of the building trado complained of by th© deputation to Mr Massey '*-. largely due to a stoppage ol speculative building, owing to the war. Nor do we think that this is a fact to be deplored. In several centres there has been a tendency to overbuild, and the war has applied a wholesome corrective in the shape of this temporary check. No one can say that in Chri.stchurch. for example, there is any lack of housing accommodation at present, or any ---• .« '. . . __i___,i.-> :

ally interfere to further stimulate the building of new houses. Builders, contractors,* and architects have not done badly timing the last few years, and it would bo unreasonable to expect the boom to continue while the Kmnire is at war.