The Dominion. FRIDAY, JULY 14, 1991. BANKING RETURNS.

Dominion, Volume 4, Issue 1179, 14 July 1911, Page 4

The Dominion. FRIDAY, JULY 14, 1991. BANKING RETURNS.

The banking returns for the June quarter are now available and reflect the adverse features of the trade returns. The exports of New Zealand products, according to the Department of Commerce, were valued at £18,993,895 for the year ended June 30 last, as compared with £20,440,837 for the previous year, thus showing a shrinkage of £1,446,942. The imports on the other hand show an increase. Although we have not the figures for the June quarter, the tendency was upwards right up to the end of March. The bank returns reflect these movements. The fixed deposits show the, small increase of £44,621 compared with the corresponding quarter of 1910; the free deposits increased by £737,059, the two classes of deposits thus showing an expansion of £781,680. But the discounts submitted to the same comparison show an increase of £132,125, while the overdrafts or advances expanded by £2,548,162, the advances and discounts together thus exhibiting an increase of £2,680,287. That is to say, while the public credits ■ with the banks increased by £781,680, the debits were greater by £2,680,287. Moreover, the increase in the deposits is fictitious, for it arises through the bank advances, iyce.ing the great expansion in the advances the deposits should have been much greater, and that they arc not larger seems to indicate that the borrowings from the banks have been used to discharge outside obligations; in other words, over-importation ha-s been indulged in. The total average liabilities of the banks in the past quarter amounted to £29,669,027, as against £27,779,358, for the June quarter of 1910, and the average of the assets was £28,794,728 as. compared with £25,925,376, the excess of liabilities over assets being £574,699, as against £1,853,952. The liabilities and assets of each institution, as shown in the last return, arc as under: Liabilities. Assets, Bank. £ £ Now Zealand l(i,158,!!Cl 12,228,703 Union 3,521,070 4,.|53,890 Ivew South Wales 3,683,210 4,0:!8,55G Australasia 2,378,375 5,707,r>10 .National 3,927,375 j>375.940 20,(iG9,G27 28,704,728 The liabilities of the Bank of New Zealand exceed the assets by nearly four millions sterling, while all the other institutions show excess of assets. The large amount held outside of the Dominion by the Bank of New Zealand is no, doubt in part due to the over-importation already referred to, and also to the heavy credits that have had to be provided to meet j the requirements of New Zealand's visitors to London for the Coronation. Turning now to the doposits we obtain the following: June, 1910. June, 1911. £ £ . Covernment deposits 2.533.450 3,519,0'G l'rce deposits 12,916,101 18,G63,1(i0 I'ixed deposits 10,515,094 10,559,715 25,994,675 27,791,901 The Government deposits luve increased by over a million sterling and in v;iew of the political event that must engage the attention of the people towards the end of the year, this increase is not surprising. The other deposits show a comparatively small increase. Taking the June quarter of a series of years the fixed and free deposits compare' as under: Fixed Free JUDe deposits. deposits, quarter. £ £ ™l 9,629,026 12,213,939 "08 9,722,062 11532 286 ™9 10,039,089 10.502.670 9 0 10,515.091 12.941i.101 "11 10,559,715 13.C53.1C0 With respect to the free deposits or current account balances, all the banks, except the National Bankshow increases, as the table appended shows: June, June, „ , I'JIO. 1911. Ifank. j; ,£ j> £4 5,918,950 6.374,428 455,478 inc v"J°V;- 1,8i,7 ' 581 1.915,358 17,775 inc N.S. 1,628,281 1,707*308 139 027 inc Australasia 1,384,193 1.544.649 1G0.45G inc' *.atiomil.,.JUi7,()l)6 2,081,119 35,677 dec. 12,940,101 13,683,160 737,059 inc. Now we come to the overdrafts or advances, and under this head there is the substantial increase of £2,548,162, which was not equalled during the past'six or seven years except in the year 1908 when there was a slump. The movements in the advances as they affect each bankarc given, below; •lune, June, Int, , 19 «- 1911. creases. Bank c e £ jj New Zealand 0,147,700 7,096,320 918 o*o '!»!°n ••••••• 2,919,(121 3,157,165 207 5-1+ N.&. Wales 2,280,731) 2,771,21!) 41W.51H Australasia 2.417,077 2,872,170 454 1(1 National ... 2,1119,000 2,881,180 -M^O 16,236,228 tt.reUoiTwifuiiii The discounts increased by £13<> 125 having risen from £j,699,340"' to £1,831,463. All the banks, except the Union Bank, added to their bill cases, the decrease shown by the Uni™ Bank is the trifling sum of £MO. The advances and discounts lor the June quarter of five years compare as under: Juno Advances. Discounts. quarter. £ j> 1907 10,033,352 1 587 16" IMS 19,130,57(i 2274841 ICO!) 17,075,129 1007 S',3 1310 10,236,228 1,699 340 1911 18,784,180 1,831,-165 The circulation is the next important item and under this heading there is an increase of £71,222 The circulation is regarded as a ' very fair barometer of the state of domestic trade, and from this point of view the increase is very satisfactory Hie retailers and business people generally must be doing well although in certain localities 'there may bo dullness. The note circuia tion and the coin and bullion for five years show as under: Circu- Coin and June lation. bullion quarter. £ t 1!lfl7 l,(i!M,:i2S 4.7.V..507 11108 I,lili(i.(il(i -KH7 71S llll)!) 1.623,1170 .|.!i:,li'|H 10111 l,fitS,7Bl 4,:ini,8.-)0 1911 1,717,000 5,103,1561 It is. wholly unnecessary for ua to att'oiu caution, the figures speak for

themselves, and furthermore it was only the other day that the. chairman of the Bank of New Zealand, in his address to the shareholders, said: "Whilst the figures 1 have placed before you emphasise, in my opinion, the necessity for a policy of economy and caution, the immediate outlook is, speaking generally, by no means unsatisfactory." The banking returns give point and emphasis to this opinion.