The Dominion. WEDNESDAY, OCTOBER 13, 1909. THE BANK RETURNS.

Dominion, Volume 3, Issue 636, 13 October 1909, Page 6

The Dominion. WEDNESDAY, OCTOBER 13, 1909. THE BANK RETURNS.

, It is somewhat of a pleasure to revjcv WJ9..banking returns past quarter for the figures disclose movements whiol are decidedly satisfactory, and .indicate that the fbaanciaLdepres'siph'has ended A year agq there was'much discussion re garding the tightness of money and th< inability of the'bank? to meet the de of the: public, notwithstanding that the bankers had advanced almost U the hmit pf their resources. 'The banki set their faces against speculative pro positions and land gambling, and by then general policy forced tho community tc undertake economies which.at the time, though irksome, were needed. The insistence of this policy has had not a little do with tha sound economic conditions which now prevail, A year ago we wor< forced to the conclusion that the Dominion was moving in the direction of c depression, and our estimate of "the situation proved correct. We are equally'conWent 'now r ' after a careful analysis bi the Ranking figures, "that we are movinj ! n Jho dirqQtipn pf prQs'pQrjty.-, '-.' '■"■'",'. '' T be aggregate assets and liabilities of the panics compare.as ynder:—,.;.'- - ■.•'"" Sep.', 1908.' ; Sep., 1909, ! ?W..•...,.,.. :.....,.., 2!),110,J13 -' 2G.091.40J! Liabilities ......,....;,..' 23,078,419 24,073,74! '" : :'.'.' 5,031,691-'■:'-' 2,017,(101 Last year the positioni was abnormal, for thero was a very large increase in the idvanccs„and discbunts.';' Wo havcVnnw jot back to the riofrrjal. Turning to the ldvancqs, we fiqda decrease of £2,551,710, jvlulo last'year there was-an .'increase of 82,449^959;'that is, there.is a complete reversal, in -. tho' movement. : The advances iavc been; repaid and the .necessary .adlustme'nts of trade have been made. Every )ank participated in the decrease, as the allowing will - : .-'"' .'_''■'■■,"' . ■ Sep:, 1009.: 1908, Decrease. Bank. . ,;.yj> . .-:j>.,, , •;;, £,-: *ew • Zealand v . p,255,115 . 7,396,035 -.- .1,137,920 ?nipn„ ,••:••••;. 2,052,013 3,158,432. , ,205,519 S.b.-'Wales.,.., 2,288,122'•' 3,907,710 ' .619,688 Lustralasi a,.... 2,509,093 2.943,174 ' .433,481 \'ahonal ■-' , '.', 2,384,438 . 2,512,610 ."',' '158,202 ;':..,:/ ' 16,393,281" fartlM' , ?,554,710 The discounts,show the 6amo satisfactory novement as' ,the advances: Thero js ; a lecrease of £402,543, whjlq last' year there vas an inqroase .of £209,816. In this dq-iHsasc-'aJI tho. banks' : have shared.' The jgure? pf each/institution 'compare as un- '■„■■;■"■■' :' : Sep;. 1909. Sep., 1908. Decrease. t Bank. 1 , -■ ',' <£■.. * ■# . \- ■ £ • VQW 'Zealand. - 833,290 1,084,853 251,557 i n i on ,„V" 207,607 :■. 212,800 ' 5,103 V.S.Wales:;:.. 217,071.' 303,623 86,752 Lustralasia, ....;. 246,612 . :,- 353,489. - • 100,877 •Jatjonal-. ~;.„, 272,750 , .315,003 .'• ,"42,253 ■■■ ' «'. il '' ; ' ' '1,777;426 ;; '2,2G?,008 : ; 1 492'542 Hie' position jp- regard to advaqces and hscounts will bp better realised by a cbmlarison of the figures for five years, which vo give belpw:— '. ■ ,-":.:" •'■■ -Advances, Discount' Total.!ep,3o. £ . . £ . . £ .'. 1005 -...-„.• 13,258,897 2,107,623 - 15,306,520 JBO3 :„.;,. 14,600,765 1,972,120 - 10,572,691 }Ss7 . '■■: 16,498,032 .2,000,152 18.41)8,184 .1908 ...... 18,947,991 2i209,968', 21,217,959 I?P9. .'.,..., 16,393,281 1,777,426 ' '18,170,707 flie position'appears to bo on a par with ;hat of'l9o7.':!"'.' : '■-~.:■■■ The Government deposits show movements similar to-these of'the, fixed and ;req'deposits, and the figures for.Vfivo fears illustrate the point: ' ■'■':' ' „„„.'' -Govt Deposits, , Sep.3o. ■"•; j}<> '■- ■■.'■■■}•s■> ' .■"•••"■• . 1900 ..;., '2,072,290 J?5 '•• ,1 952,201 . :".}»?.; ~.,....:.. 1,005,097 ■/- ■ '100? '......„;.;.,.„..,...;,..;..„„ 1J428.034 ". : rhe. increase 'of nearly £400,000 is no ioubt jn part: due to the' loan 'arranged )y: the Piume Minister while in London", fuming now to. the free deposits, 'or cur. :ent account balances, thero'is/ an, ipcrease >f £1}7,912, while last year there'was a lecrease-uhder this head of £1,544,642. A /ear agp traders were forced to draw ippn ihqir resources to tho fu(!cst extqnt n order to meet their engagements, but :hjs year they arq in'apparent easy cohlltipTis, The: increase in the free dcjp'sits. is confined to the' Bank of New sealand and the Union Bank, the other nstitutipns shpwing /decreases, as the ;able appended will show:"- ' ■"". ;''"'■' . ■'.; .Sep., 1909, Sep; : ,l9oß. t ßank. r £ - ■ ■-£■- " £ ■ ■fey Zealand 4,901,141 ■ 4,705,012 136,129 inc, teon m ....... 1,486,854, .1,423,757 ' -63,007 jnc! J.S..Wa.les 1,315,959 1.372,143 . 56,184 dec. Australasia . 1,115,128 1134,133 , i9,007det,. ;.i.j,7ii;290 ; 1,717.513, '6,2234ep, 10,530,370 10,412,558 1J7.812 jnc, .iast year the fixed deposits showed the noderate' increase ' of £199,646, while this fear there is an increase of £551,301, vhich is deejdedly'good, The Union" Bank pd the.BpK oj AUBtralaJiti have deceased their fixed deposits, but the other nstitutions shpw increases, tho, figures of ■he Bank of New Zealand being very buL tantial. The taile hereunder is ih,terestng;— .-• .-• > ■.",..'.■ ... Sep., 1909. Sep., 1908. ' . Bank. .'." '£' 7 £ . £ Jew Zealand 5,297,857 4,731,568 566,319 inc. Jriion 1 ...;,...... 1,804,035 : 1,362,777 ■' "58,742 dec. ■I.S. Wales ... 1,003,457 -.1,685,563- .7,894 inc. Ustralasia , .621,098 637,583 16,485 doc. 'Tational ' ... 1,532,273 1,479,958 52,315 inc. 10,448,750 ': 9,897,449 ' 551,301 inc. iVe obtain' a yery_ interesting yiew'pf the iconomic conditions by comparing ' the Iggrcgates of the fixed and free deposits, >ut not including Goyornnicnt Deposits, vjth tho advances and .discounts comrindd,' and ascertaining the excess of one )vcr tho other/ The position at the Sep;qmbor quarter of the past five years is is under:— '•• Excess of Deposits. Advances. Deposits. Sep, 30. -•.-• .£ ".-• £ : ■ £ ■ ■-■ 1905 , ....,....- 18.673,992 15,366,520' 3,807,47" 1906 :.. 20,611,361 .16,572,891"'4,038,470 1907.: , 21,655,003 18,498,184 -.3,156,810 1908 -.......,. 20,310,007 21,217,959 ' — 1909 , .......„' 20,979,120- .18,170,707 .2,808,413 Last -year the advances oxceeded .:the div positk by £907,952, and that was;,the first iime such a movement was' recorded'-'for

very many years. This year the position has become "normal. " : -

The note circulation is the index of internal or domestic trade, and the circulation of the past quarter shgws a shrink «E9 pf, under £20,000 as comparer} with a year ago, but the 1 shrinkage is'not so great as in the previous year. Coin and bullion have increased, and arp po\v larger than in any September quarter. The figures under both, tlje'se heads/show as under ;ttt . ... .......

•■■'■■' Coin Circulation, and Bullion. Sep. 30. ' £■ ■■ ■,;• j>"-' IMS ...;. 1,427,547 4,022,318 ' ™6 ~..• 1,552,682 4,727,953 1907 ; ;■ 1,594,061 5,003,839 i "08 1,515,815 4,881,637 . IPPP : .....'..•.... 1,525,553 5,028,490 The figures as a whojc show that the banking position is'sound! There is

plenty of money to finance, the export of produce during the current season, and as the outlook for prpduccrs, is good, we may expect to see a'general trade .'rcvjyal within the Dominion before many weeks pass by. Traders and business men generally appear to be in a better posii tion financially than a year ago, and are capable of dealing with any increase in business that may-happen. The banking figures in their entirety leave no room for any other conclusion but that the depression which appeared so serious during the winter month's ib practically at an end. The return to prosperous timeß appears assured, hut it* v will. necessarily, bo a gradual movement,, ■"•'■ ■'" ..