The Dominion. TUESDAY, APRIL 11, 1911. BANK RETURNS.

Dominion, Volume 4, Issue 1099, 11 April 1911, Page 4

The Dominion. TUESDAY, APRIL 11, 1911. BANK RETURNS.

Tin: Bank returns for ths first quarter of the year were made available yesterday afternoon, and an analysis of the figures shows tho usual movements experienced during the March quarter. The products of the Dominion have been practically all marketed overseas and (he bulk of the returns are in with tho result that there is a big increase in the free deposits or current account balances. There, is now a very large amount held in this liquid form, from which it is obvious that there is some difficulty in .finding suitable investment. This fea-

ture is emphasised by the returns of the Bank of New Zealand, which institution does the bulk of the country's banking business. The Bank of New Zealand's liabilities in New Zealand total £15,370,784, and the assets total £11,952,003, which means that no less a sum than £3,427,781 has been, invested outside of New Zealand. However, it is but fair to say that the advances and discounts combined show an increase that is greater than that shown by

the fixed and free deposits. The aggregate liabilities and assets of each institution for the past quarter compare as under: Liabilities. Assets. Bank. £ £ New Zealand 15,379,781 11,952,003 Union 3,397,117 4,241,853 M.S. Wales 3,550,515 3,809,377 Australasia ' 2,330,819 3,571,307 National 3,820,555 4,171,043 28,478,850 27,809,188 At the corresponding quarter of last year the liabilities totalled £26,255,568, and the assets amounted to £25,945,249.

Turning now to the deposits tho aggregate of the Government, free, ancl fixed deposits is greater by £2,143,731 than those at the corresponding date of last year, as the table appended will show: March, 1910. March, 1911. «£ Govt, deposits .... 2,3:W,1G7 3,1G5,GU Free deposits ...... 11,585,410 12,974,315 Fixed deposits 10,570,352 10,495,731 21,101,929 26,635,600 The Government deposits arc exceptionally large owing, no doubt, to tho five million loan floated late last year. The free deposits or current account balances have increased by £ 1,388,905, and all the banks shared in the gain, as shown below: March, March, Increase. 1910. 1011. Bank. ,£ .C J! New Zealand 5,326,875 6,101,005 774,130 Union 1,090,262 1,000,379 110,117 N.S. Wales... 1,459,553 1,638,555 179,032 'Australasia... 1,176,134 1,478,022 301,58 a National 1,932,266 1,950,321 24,038 11,585,410 12,074,315 1,388,905 Tho Bank of Australasia shows tho largest relative increase, while the National Bank's increase is exceptionally small. The fixed deposits show a decrease of £74,621, due to

the Bank, of New: Zealand and tho Bank of New South Wales contracting thoir deposits, the other institutions showing small increases. With the enormous amount lying at credit to current accounts it would naturally be supposed that some portion of tho credits would bo fixed with the banks so as to bring in a return, and the explanation for the money being held at call appears to bo that it takes this money to do the ordinary _ trading of the country. Comparing tho various classes of deposits for a period of five years we get the following:

Govt. Free Fixed March 31. Deposits. Deposits. Deposits-

«£ «£ e£ 1907 2,415,210 11,343,552 9,700,511 1903 1,748,902 11,534,879 9,553,601 1900 1,224,482 10,100,938 9,553,042 1910 2,336,167 11,585,410 10.570,352 1911 3,165,614. 12,974,315 10,495,731 Now we come to the advances, and these show an increase in the aggregate of £1,831,456 as compared with the corresponding quarter of last year—this is nearly half a million more than the increase of the free deposits. All the banks were drawn upon for advances, as tho following «ill show:

March, March, Increase. 1910. 1911. Bank. «£ £ £ New Zealand 6,118,241 6,761,506 616,265 Union 2,968,291 3,163,694 195,403 N.S. Wales... 2,200,913 2,625,423 364,510 Australasia... 2,366,518 2,707,787 341,209 National .... 2,161,165 2,748,174 281,009

16,178,128 18,009,554 1,831,456 The discounts decreased by the trifling amount of £24,511, and the National Bank was the only institution to register an increase. The discounts and advances for a period of five years compare as under:

March 31 Discounts. Advances. Total. «£ .£ 1007 2,002,803 15,551,547 17,551,355 1008 2,095,705 15,512,310 20,038,105 1009 2,132,502 15,186,900 20,319,471 1010 1,615,317 10,178,128 17,093,415 1911 1,790,800 18,009,581 19,710,31)0 The fixed and free deposits combined for the past quarter total £23,470,046, and as shown above the deposits and advances aggregate £19,710,390, so that tho excess of deposits amounts to £3,750,656, as against an excess of £4,162,317 for the March quarter of 1910. The circulation shows an increase of £43,342, as compared with last year, and is £13,732 more than in 1907, when high-water mark was reached. Coin and bullion are together nearly £47,000 less than last year. The figures under these heads for a period of five years are as follow: Coin and March 31. Circulation. Bullion. .e 1007 1,647,731 4,002,057 1908 1,610,783 1,978,05S WOO 1,587.051 1,712,935 1910 1.018,121 5,077,1.83 1911 1,661,103 5,030,701 I Tho figures in their entirety cannot he regarded as other than satisfactory. The increase in the advances is evidence that traders and others arc able to use the money to advantage, while tho increase in thc eirculation shows that trade is active, or at all events it is quite up to (he level of 1907, which was a record year. There may he, probably is, "dullness in some localities, hut in the Dominion as a whole trade is brisker and in a more healthy state than in either of the past two years. So long as New Zealand's products realise present prices in outside

markets, and so long the_ presentvolume of exports is maintained, we have nothing to fear; trouble will arise .when grices show any serious

dcclinc, or quantities shrink unduly. This refers more particularly to wool, frozen meat, and dairy prolines, which, in the past twelve months, realised over £14,000,000 out of a total of over £10,000,000 —tho aggregate value of the products exported during the year ended March SI last.