The Dominion. THURSDAY, JANUARY 13, 1910. BANKING RETURNS.

Dominion, Volume 3, Issue 714, 13 January 1910, Page 4

The Dominion. THURSDAY, JANUARY 13, 1910. BANKING RETURNS.

.•■■■ 'V;.,-.9'-.";.. - ■■■■-■ Tee banking returns for .the; December quarter:, reveal Very . healthy and satisfactory, conditions. Twelve months ago the advances and '/discounts exhibited abnormal increases, while there was a marked shrinkage in the deposits. There is now a 'complete • change and a reversion to the normal. . The deposits, the .Government deposits, ' in the aggregate show: an increase of £1,880,431, while the advances and discounts are- .less by .£2,644,182 as compared with'the December quarter of 1908.' The only adverse feature to' be noted is a shrinkage of £33,267 in the note circulation,- but caution must be;ob--1 served _in accepting this movement as an . indication of a contraction of internal, trade. -It .will;, be remem- . bered that during the last session of Parliament ;the tax on the note' cir-culation-'was vincreased,' and it is Very ;, probable' .that , as a . result the ~ banks are,reducing'-their .note, issue'. Dealing first with the aggregate' as-' sets and liabilities, we ; obtain the following comparison:— v. . Doc.', 1908. Dec., 1909. - j> :' iy 'Assets- 20,723,677 Liabilities , 22,103,698 ' : : 23,923,975 £6,873,963 X-2,799,702 These figures illustrate the great change that has taken "place, but the other items are more illuminating'. The advances ; exhibit a decrease of ■ £2,179,425, the actual figures being £19,123,523 for the December quarter of 1908, as compared with £16,'944,098 for the same quarter of 1909. The movement affected all the banks, as the following table shows:— Dec., 1908. Dec.; 1909. Decrease. ' Bank. '• < £ -'V;c- v £1.,- -'it; .v., N.' Zealand...' .7,481,800 i 6,516,981 ■ 904,819 ■Union 3,240,966 ■. 3,074,339 • 106,627 N.S. Wales • 3,014,455 . 2,386,919. 627,536 Australasia 2,920,261 • 2,537,687 .- '382,571 National '... 2,406,011 . 2,428,172' 37,869 Vv'.v il9, X16,9Ui098;£2,179,425 The- liquidation of .'surplus stocks, general . economy, ~and, greater' caution in trading have enabled the.cus-' tomc;'3. of our banks to reduce their ■oyeivrafts, while the higher .'prices realised by wool have helped to wipe out t bank loans. This is an entirely satisfactory position.V . >.;;; The discounts . tell the same pleas-; iiig tale, for here also is shown a substantial reduction;-The discounts for--'the , past quarter ; aggregated; £1^835,471,-.as'-'against£2,3oo,22B. for the corresponding quarter of 1908. All the banks -were affected- by the ■movement, as' the figures' appended show:— ■ '■ Dec., 1908. Dec., 1909. Decrease. Bank. Vj-' *•'£-. £-~■".'- ■■ £ ■ N. Zealand ... 1,082,194 . , 884,903 .197,291 Union' ; ,' 223,054 210,107 . 12,947 N.S. Wales:....: 292,318 > 195,352 - Australasia 380,771 . 262,678 ' .118,093 National .321,891... . 282,401 .39,490 .; £2,309,228 -01,835,471 £404,757 Comparing theadvances • and • discounts for the December quarter of ■ seven j. years,-, wo obtaih; .tne. following:— ~ : 4, December Advances. Discount. Total. : quarter. V ■ : ..::£VV; . 1903 12,085,611 '1,993,097'" 14,078,708 ' 1901 13,092,138 2,156,011- 15,248,149 1905 ' .' 14,031,460 2,136,484 16,217,944 :!.;i906.15,622,549 -2,126,376 .17,748,923 1907 ..-.. 17,913,858 2,069,272 19,983,130 ' 1908 : .,19,123,523i.2,300,228 ' 21,423,751 '1909.' 16,944,098 .1,835,471 18,779,569 We _ have now to; deal with the'. deposits; and the aggregates compare as under:—: " -'- 'V . : ;. ■ . ■ . Dec,, 1908. Dec., 1909. Govt, deposits ....... - 893,686 .'1,434,926 ■ Fi'ee -deposits " ' 9,529,657 . 10,173,072 'Vised deposits ...... 9,892,396 10,588,172 .'" £20,315,739 .£22,138,170 The;, inbrease amounts to. £1,880,431, ' tho movement.undcr each head being about the same: Tho free deposits exhibit'., an" increase :' of ; £643,415,; while at the corresponding date; last', year a decrease of £1,60tf,352 ' : 'Was shown.: The amount 'of the ■ free; dcposits hold by each bank is - disclosed in the table' appended ir- V. --''K" ..'■■■ < ! ; 'In- ' 1 ■ sj ;;■ Dec., 1908. Dec., 1909. crease:Bank 1 . V N. Zealand 4,407,217 ."4,685,160, " 277,948 Union: -. ...1,317i948.. :: 1,437,444' 119,496 N.S. Wales'- 1,226,320 ■ ■ 123,050 Australasia 1,015,599 1,015,871 30,272 National '...-1,562,573 1,655,227 ' : (92,654 i '. ■' '£9,529,657' £10,173,072 £613,415 The increase '' in .'the 'fixed ~deposits amounts to £695,776, while for. the. corresponding quarter of 1908 tho increase was. only £241,102. ; The Union Bank and the Bank of Australasia exhibit decreases, the others showj increases.-.' ■ .The •• figures, are as under:— , ■ ( Dec., 190 S. Dec.', 1909. ; Bank. ' . £ • . £ N. Zealand 4,703,820 .. 5,337,820 ' *634,000 Union 1,367,278 ■ 1,333,532 +33,746 N.S.' Wales 1,694,628 .1,732,472 ' *37,844 Australasia - 040,987 629,037. +17,950 National ... 1,479,683 1,555,311 •75,628 , £9,892,390 £10,588,172 *£695,776 • ,*lnerease. fPecrease. Taking a period, of seven years, the fixed and 'free deposits.for' the hist nuarter of each year compare as under:— : ..- . ;.' I'ree Fixed . Total . December . Deposits. Deposits. Deposits, quarter. £ . £ £ 1903": ...... 8,361i648 . 8,945,587 17,307,235 .1904 8,425,376 9,099,010, 17,524,380 . 1905 ...... 8,836,507 9,776,098 18,012,605 191)6 10,250,540 9,843,258 , 20.093,798 1907 ...... 11,130,009 9,051,294 20,787,213 1908 - ; 9,529,057 - 9,892,396- 19^422,053 1909 ...... 10,173,072 10,588,172 , 20,761,244 We get an interesting table by comparing the free and' fixed deposits combined wi th the advances'and 'discounts, taken together.; Under normal conditions the deposits exceed the advances, but for tho December quarter of 1908 the advances were larger by over £2,000,000.'' The table is as under: —. , ' ; ~ • ' ■ Excess of December Deposits. Advances. Deposits, quarter. ; £ £ £ 1903 17,307,237 14,078,708 3,228,529, 1904 .......17,524,386 15,218,149 2,270,237 1905 . 18,612,005 16,217,9-U 2,491,661 1900 ...... 20,093,798 -17,748,923 ; 2,344,875 1907 ' 20,787,213 19,983,130 804,083 1908 ; 19,422,053 21,423,751 *2,001,698 1909 , ....... 20,761,244 • 18,779,569 1,981,675 *13xcms of.fidvances. „

The figures are very satisfactory, and it is Remarkable .how quick; the recovery has been. The note issue, as already stated, shows a shrinkage, but the increased note tax must be. taken into account when considering this movement. Coin and bullion have been augmented to the extent of about half a million sterling. These two ;items for seven years compare as under: — Note Coin and December Circulation. Bullion, quarter. .£ ■£.' 1903 1,466,279 3,746,E80 , 1901 1,451,813 : 3,953,075 . 1905 1,468,834 4,052,173 L 1906 .:.... 1,011,221 , 4,696,758 1907 ' 1,641,858 4,98-1,566 1908 1,607,222 4,585,756 > . 1909 1,573,955 5,090,845 The figures as a -whole show that the banks are in possession of abundant funds, and are capable of meeting all demands likely to be made upon them. The business community is in better credit, and with the continuance , of satisfactory prices for our produce the credits will ' increase. 'Confidence is lpeing restored, and such figures as. we have just dealt with tend to strengthen that confidence.. The is .beginning to share in the trade revival that, has .shown .itself in England and America, and we feel we-are on safe ground in vprcdicting that, the current year .will see New Zealand enjoying a big and profitable trade.-,