The Bank Returns.

Press, Volume LIX, Issue 17811, 10 July 1923, Page 6

The Bank Returns.

Although the financial and commercial conditions ahroad are not yet so stable! as to give a feeling of perfect security to a producing country which, like NewZealand, depends for its prosperity upon tho buoyancy of foreign markets, tho Dominion has rande an astonishingly good recovery from the depression. Sir George Elliot, in his recent address at the Bank of New Zealand meeting, agreed that the outlook was good, although lie suggested that perhaps tho recovery had been too rapid for safety. The bank returns for the June quarter which we print to-day encourage the optimistic -view, and indicate elearly enough that tlia country is out of the wood. The course of events since 1919 —the rise of the boom, its sensational collapse, the response of the Banks to the public's demand for help,.and the gradual recovery—is nowhere mora strikingly outlined than in the movements of Bank- advances and deposits. We give the figures, quarter by quarter, for the past four years:— Fixed Advances and free mil Deposits. Discounts. £ £ Sept., 1919 ... 45,372,555 20,149,774 Dec 1919 ... 45,509.970 32,106,;06 Mar 1920 ... 60,605,091 32.0-12,012 June, 1920 ~. 54,598,092 54,789.0 til Sept. 1920 ... 53.131,693 39,017,803 Dec 1920 ... 49;456\593 47,118.19.3 Mar., 1921 ... 47,155,733 52,446,341 June. 1921 ... 45,511.095 Sept.' 1921 ... 43.440,603 48,039,009 Dec , 1921 ™ 40,935,619 47,556,7*3 Mar., 1922 ... 40,360,390 4=0.491.315 1 June, 1922 ... 41,388,8*6 46,155.934 Sept., 1922 ... 41,961,866 42,991,443 DeL 1922 ~. 41,104,419 43,431,016 Mar., 1923 ... 43.405,810 42,521,573 June, 1923 ... 45,682,952 41,711,274 Between Juno, 1920, and June, 1921, & balance of 20 millions in favour of deposits was transformed into a balance of 9 millions on tho advances side—a shifting of tho balance amounting to 29 millions. By June, 1922, the indebtedness to the Banks was reduced to 5 millions. And now thero is a balance , of deposits of 4 millions. Tho improve-

ment in the position is very encouraging indeed, and although there is as much need as ever for caution and economy, there is good ground in the Bank returns for confidence in facing the future.