The Banking Returns.

Press, Volume LVIII, Issue 17428, 12 April 1922, Page 6

The Banking Returns.

We print in our Commerce and Finance section to-day our Wellington financial correspondent's surrey of the tanking returns for the March quarter of the current year. Our correspondent -takes an optimistic view of the position which the figures indicate, *Bd the position does encourage a much store confident outlook than was pos■tblo.aut months ago. After the war

deposits commenced to grow, and they reached their highest point in June, 1920. AdVances also increased, and continued to increase after She deposits began to recede. The heavy flood of importation which set in in the early part of 1920 continued until April of last year, with the result that tho banks were called upon for abnormal accommodation, the total of the advances made rising in June, 1921, to an unheard of height. As on previous occasions we supplement our correspondent's analysis with a table showing the movement of advances and deposits quarter by quarter from a date before the financial difficulties following the war set in:

The improvement, in the last nine monthß is noteworthy. The progress made in. the disposal of stocks has enabled trading overdrafts to be reduced. The current accounts, which were so high in the middle and latter part of 1920, while imported goods were coming in heavily, included, as the "Australasian Banking Record" has pointed out, moneys -held locally on behalf of sellers abroad, which have since been remitted. Between this and other reasons current accounts have declined. The position in the March quarter shows little change from the position in the December quarter, but that little is on the right side, and it would appear that liquidation and deflation are going on steadily. Three months ago the outlook for our primary products was not very cheering, but there have been signs of a real improvement, and it is not rash to believe that the Dominion is turning the corner, and has now no very long period of dull times to get over.

Fixed and Advances free deposits and discounts. £ £ Sept., , 1919 ... 45,372,885 30.149,774 Dec, 1919 . .. 45.569,976 32.106,756 Mar., 1920 . .. 50,665,091 32.042,042 Jtine, 1920 . .. 54,598,092 34,789,581 Sept., h 1920 . .. 53,131,693 39.017,808 Dec., 1920 . .. 49,456,893 47,118,295 Mar., 1921 . .. 47,155,736 52,446,341 June, 1921 . .. 45,511,095 64,385,485 Sept., , 1921 . .. 43,445,663 48,039,609 Dec, 1921 . .. 40.935,619 47,558,726 Mar.. 1922 . .. 40,360,390 46,491,315