The Dominion. THURSDAY, JANUARY 11, 1312. BANKING RETURNS.

Dominion, Volume 5, Issue 1334, 11 January 1912, Page 4

The Dominion. THURSDAY, JANUARY 11, 1312. BANKING RETURNS.

: J The banking returns for the final quarter of 1911 are now available, and the figures disclose some e'xtraordinary features. Compared with the December quarter of 1910, the advances show an enormous expansion, the increase amounting to , no less a sum than £3,538,034, while the discounts are practically stationary. With this large increase in advances one would imagine that the deposits would show some corresponding increase, but, as a matter of fact, the free deposits increased by only £813,487, and the fixed deposits by £54,325, or together by £867,812. A year ago the free deposits were larger than in 1909 by £1,947,905, and the fixed deposits w.ere less by £145,831. The advances increased by £906,517, while the discounts disclosed a shrinkage of £32,698. The abnormal features, exhibited by the returns now under review require some explanation. At all events, business men ■would do well to carefully analyse the figures and decide upon their future course of action. Turning first to the aggregate assets and liabilities, the comparison with 1910 is as under: — Dec., 1910. Dec., 1911.

The assets of the Bank of New Zealand within the Dominion arc less than the liabilities, and the reason for this was explained by the actingchairman at the half-yearly meeting hold last month. It is interesting now to examine the advances and see to what extent tho several institutions have been drawn upon. The comparison is as under: — InDec, 1910. Dec., 1911. crease. Bank. £ Jg j> New Zealand 6,711,216 8,311,551 .1,600,335 Union 3,173,617 3,082,198 508.581 IS.S. Wales... 2,563,832 ■••3,078,097 514,265 Australasia 2,789,463 3,273,534 484,071 National ... 2,612,487 3,043,209 430,782 17,850,615 21,388,649 3,538,034 The banks have been most generous in meeting the demands of their customers, and the Position is somewhat similar to ttiat which existed in 1908, but at that time there was good reason for the heavy demands on the banks. The American financial crisis of 1907 reacted on New Zealand, and there was something in the nature of a depression, but there is no such excuse for the demands that have been made on tho banks in the past quarter. It is to , be feared that cxt' oessive imports partly account for the unfavourable condition.. No doubt there are other causes operating also. Turning to the discounts, we find that the aggregate is less by £419 than a year ago. The figures of the several banks compare as under:-—

The movements of the advances and discounts may be better observed by comparing the figures for seven years. The table appended will therefore be interesting:—

The last total is easily a record) and exceeds the previous highest (in 1908) by £1,764,252. Now we come to the deposits and the several groups compare as under:—

24,393,473 25,557,0(3 The total shows an increase of £1,163,570, largely, due to the expansion of Government deposits. The free deposits, as already stated, increased by £813,487, and all the banks shared in the movement as the following table shows:—

The fixed deposits increased b.V only £54,325; the Bank of New Zealand secured an increase of £148,461, and the Bank of New South Wales an increase of £12,547, butall the other institutions exhibit Taking the free and Exed deposits for a

period of seven years, we get the following: — Preo Fixed Total Deposit*. Deposits. Deposits, lice. Qc £ ,t £

Another table that is of particular interest just now is a comparison of the fixed and free deposits combined with the advances and discounts. Tho figures are appended: — t I Excess of Deposits. Advances. Deposits. Keo. Qr. £ £ £

In 1908 the advances exceeded the deposits by £2,001,698, and, excepting that occasion, the return for December, 1911, is the most unsatisfactory recorded. The note circulation shows an increase of £48,232, and coin and bullion together an increase of £323,705. The figures under these two heads for a period of seven years show as under: — Koto Coin Circulation, and Bullion.

If we take the note circulation as indicating the condition of local trade, then the close of 1911 was better than 1910, but the mystery of the abnormaj increase in advances still remains. There is some unusual undercurrent operating, and tho business community should take note of the matter. It is obvious that caution is advisable until the situation appears clearer. The current quarter may give a different complexion to the position.

Assets 27,590,043 31,461,836 Liabilities 26,202,569 27,450,169 1,387,471 4,011,357

, Dec, 1910. Dec, 1911. Bank. £ £ j> New Zealand. 8DG.G4O 898,970 2,330 inc U 1 " 0 " , 135,169 211,537 1G.368 inc. S - ... 181,350 1-13,889 37,467 dec. Australasia 243,039 2.i 1.920 11,881 inc Ntrtl °n«l - 286,569 293,038 6°169ing.' .. " ■ ■. , . 1,802,773 1,802,354 «9dec.

Advances. Discounts. Totals. Dec. Qγ. £ £ _£ JMjj 2,136,481 16,317,944 Pfe 1d,622,o49 2,126,376 17,748,923 ™ ..'■....,17,013.858 2,069,272 19 933130 1908 , 19,123,523 2,300,228 21423 751 }M9 • 16,944,098 1,835,471 18 779 509 \l\°. 17,850,615 1,802,773 19 653 333 1911 , 21,388,649 1,802,351 23 191 003

; •' Doc., 1010. Dec. 1911. Govt. deposits 1,830,155 2,125 [M Free deposits 1:2,120,977 12,931,40-t Fixed deposits 10,1-12,341 10,49(i CCG

Dec, 1910. Dec., 1911. crease. Bank. £, £, £ New Zealand 5,619,813 0,055,101 105,588 Union ..'.... 1,611,029 1.7SG.9O0 1.14 071 N.S. Wales ... 1,59O,1H 1,619,280 29.172 Australasia 1,1)28,032 l,152,0!!G 1"l OIU Nntional ... 1,911,08'.) 2,020,781 10<J,(i92 12,120,977 12,931,IOt 813,187

MS 8,838,507 9,77li,0<IS 18,Gl2,liO5 IWB 10,25(1,510 n>843.258 20,093,798 >»l>7 ll,13(i,O00 il,651,2D4 20,787,213 1908 n>529.057 D,892,">9li l!l,(22,053 IM!> 10.173,072 10,588,172 20,701,214 1910 12,120,977 10.442.3U 22,563,313 It'll 12,931,161 10,19G,«JG 2:1,131,130

1905 18,612,CO.'> 10,217,94-* 2,494,661 10.10 20,003,7113 17,718,!)*; 2,311,875 190? 20,787,2111 1!),OS3,130 804,083 1908 19,422,053 21,423,751 — 1909 20,701,241 18,779,509 1,981,675 1910 22,563,318 1<.),G53,3S8 2,909,930 1911 23..131.130 23,191,003 210,127

Dec. Qr. £ £ 1005 1,406,831 4,052,173 1908 1,611,221 4,090,758 1907 1,041,858 -4,931,566 1908 1,007,222 4,535,756 190!) ...'. 20,761,244 18,779,509 1,981,675 1910 1,049,928 5,028,2)8 1911 1,098,160 ' 5,351,953