BANKING RETURNS.

Press, Volume LI, Issue 15173, 11 January 1915, Page 7

BANKING RETURNS.

A VERY SATISFACTOKT

POSITION.

(I ROM A SPECIAL «:o*-BES-*O.VPEXT.) WELLINGTON,. January 9

The banking returns for th© closing quarter of 1014 arc now available, and judged on the whole, the figures disclose a very satisfactory position. There is an increase in tho advances ot £1.204.180, but A decrease in the discounts of £203.016, so that the actual increased accommodation given by bankers to the public, __ compared With the December quarter of 1913, is the moderate cum of £1.C91.4""i- Turning to the other side oi the account, the free deposits show an increase of £1,331,604. and thefi.xcd deposits an incTcaso of £182,270. together totalling an expansion of £1,._63,570, which is decidedly good. Bank notes being legal tender, tho note circulation has expanded by £942,509, but tho banks have ample cover for this, as the total of coin and bullion has increased by £915,'J30, or practically the same as the note circulation.

. Taking fir&t tho advances, the total for tho past quarter is £23,121,23-3, as compared with £21,826,746 for the December quarter of 1913. The incrcaso is not large, and indicates that traders ; farmers, and others aro able to get along without requiring very much help from th© banks. The increase in the advances is shared in by all the banks, as the following table shows: — Bank. Dec, 1913. D.C., 1911. Increase. _ • _ _ Xew Zealand -=.971,001 -1,401.147 492.216 Union •• *!,731,0>C -,159,2€0 427,574 _".S. Wale* •_._-.'",8.7 3,122,338 1.*«..**01 Ati-l.ala.ian ~9.1,-08 3,060,951 99,7.3 N»tion»l - -,1*.5,330 3,240,719 -,**,.*-» Comxercial 22,771 73..9-20 51.1.6 Total ..21.826,746 _3,]21,_3- 1,294,183 . The largest gain relatively is shown by th© Union Bank of Australia. "The discounts for tho past quarter aggregated £1,811,573, against £2,014,589 for the December quarter of 1913. All the institutions shared in th© decreaso except tho Commercial Bank, which exhibits the modest gain of £1817. the figures of this institution being £3317 against £1500- Taking a period of five years, the aggregates of the advances and discounts compare as under:— Dec. .r. Advance.. Discounts. Totals. £ £ £ 1010 .. 17,850,615 1,802.77.*! 19,653,385 191! .. 21,388,649 1.80_,-"st 2.^191,003 1912 .. 21,396,043 1,950,494 23,346,543 1913 ■ . '.. 21,826,746 2,014,589 23.841.335 1911 .. 23,121,235 1,811,573 23,932,8CS The shrinkage in the discounts is perhaps the best feature shown, because* it implies that traders are finding collections not so difficult, and probably also business is being done moro on a cash basis.

Now wo pass to the deposits, and it is pleasing to see that there are increases under the several heads, as the following table shows:—

Dec., 1913. Dec., 1914. Increase. £ £ £ Sovt. deposit 2,086,061 2,418,545 332,481 Free deposits 1,-93,875 13,675,479 1,381,604 Fixed deposits 10,545,345 10,727,620 182,273 Totals .. 24,925,-64 _6,6_1,644 1,896,-60 ■ Tho Government -finances are apparently in a satisfactory condition, and so far as the public is concerned, there are ample funds available. The growth j of the fixed deposits and of th© deposits i in the Post Office Savings Banks indicates that the -peoplo are able to save money, and that the economic conditions are not merely normal, but rather favourable. It i_ a period of prosperity. • The iree doposits or. current account balances have increased by £1,381,604, * in which all the banks haro shared. The table given below -hows the movements :— ' B»nk. Dec, 1913. Dec. 1.14. Increase j_ £ £ Xew .Zc.l.r.d 5,783,341 G. 349,316 559.975 Union .. 1,682,112 1,969.0.8 306516 ***.S. "*•*_"•* .. 1.541.883 1,680,531 138,618 ' Aa.tr_l.e:_ - 1,2<"_,-S1 1.460,754 162,470 Aitiontl .. 1,342,837 *",.03 553 60,751 -.-u-oercial 39.41S 92,262 • 52,844 Totals ~ 12,25*3,875 13,675,479 1.331,60. With respect to fixed deposits, all the . hanks except the Union Bank exhibit increases.- Taking the free and the fixed deposits for a series of years, we obtain th© following:— "Dee. - Free Fixed Total -gutter. ■ l.enoai__. Dcoo.iis. D-">osit_. _ ' £ ' £ "9'o .. V",120 1 577 10.412.341 --.-G3J3IS "H .. 10,496 666 23,431,130 "■9l- ..' "12.4-8,0.5 10.4C3,732 22 906,780 ■''13 .. "13.-:93,87. , 10345,345 22 / 83.;_20 i**'" -. 13,675,473 10,727,620 24.40..053 . The totals of the deposits have varied somewhat during the past five years, and it,.B T 6ignigcrmt that the total for j .191. is considerably Jarg'er than in any previous year. .- Obviously, the people hay© laouey to .pare and money to spend. Another iuteresting table is furnished »^" a * { ' n S the aggregates of the free and fixed deposits and the aggregates, of the -avanees and discounts and comparing -the que with the other. The table ap- * peaded shows the position:— -*_ . Excess of f«-. V. Deoc-.it*. Advances. Deocait.. -£ " £ Jj}}* .. 5_.563.31S 19,653,383 2,909,930 . "*•» -» .3,431,130 23._91.0C-_ 240,127 Excess of * advance.. »« .. -2,905.750 23,--16,5-4-3 439.763 «« -. 22,8.0,220 23,641.335 . LOOillo _"»}*; .. -3,*03,099 _3,932,5C6 529,703 Daring the past three years the de- ■ aands on the banks havo been excep- . tonally large, so that the advances - I? c^c «>dcd the deposits. ye havo now to deal with th© circu»tton and the com and bullion. The "".-res for five years compare as tinder;— *"•*"-- _-_.•«„ Circulation. Coin ond Bullion. • < '' _f c ™ 10 ••' 1,6t9.9?8 5.0--.-4S - "?*" .. 1,638,160 5,351.-o3 P- .- 1,712.466 5 237,767 " ]* ls • 1.671,7.3 5.270.18.-3 ■ 3 ' l -. •.,611/232 ..-*-C*j-3 The abnormal growth of the circula'«o_ is dv© to notes being legal tender. « «I_ o indicates that there is no hoardJS « f gold by the public Professor •-Cnapmaii, of Manchester University, in *n address recently to members of the - Jy ieri *' Institute*. stated that one *J" :n '" that non-combatatants could do to """-oi-li aid in the national crisis was to , Pr their ;-o!d into a bank and take ' " n ex "a n <- 0 : " sovereign in the " ° f was worth a hundred j*the pockets of the people. The same ' ?S S L S S °° fl '■■ XC V - / ' Ci,,nnd - The *_!? f °'"' c ' its ■ v ' , " r ,nto tne b:in,v " ! ** ■"**- the banks have been thereby tenjethened. " a J* i n *possiblc to take other than a -'-tar *'" * md optimistic view of the h-m.-"? anc *- £ nancinl position of th© *'-«_V IWn ' The . countr *' is sound, and ■'"iJv 1 * mil -t continue to be eager eom- £ ; «»n for the'food and other products r 'i_M ■*- oa ' a '''-h the immediate future | r; ***. out bright prospects. j - I