BANKING RETURNS

Dominion, Volume 10, Issue 2974, 11 January 1917, Page 4

BANKING RETURNS

The banking returns for tho concluding quarter of 1916 are decidedly . interesting, as the figures reflect tho extreme prosperity of the country, and also show that people are again seeking accommodation from the banks for the expansion of business and of industries, or the development of farm and other properties. The people do not appeal , to bo carried away by their prosperity, for the increase in the deposits show that much is being saved, while the expansion in tho deposits of the Post Office Savings Bank 'indicates that among the general publie who- use this institution there is a certain amount of thrift. Tho banking deposits for tho past quarter exhibit an increase of £5,433,735, of which £3,328,218 occurs in Government deposits. The figures are compared in the tablo appended:—

Dec, 1515. Bbc, 1916. Tnu. £ £ £ GoTt.. deposits... 3,030,645 6,358,863 3,328,M8 TYra deposits... 17,293,719 18,031,742 738.C23 Wiod deposits... 11,861,682 13,229,076 1,367,494

32,185,946 37,619,681 5,433,735 Tho Government deposits, it will bo noted, aro more than doublo what they were a year ago, duo no doubt to the loan raised in tho Dominion and also to the results of increased taxation. There is only a moderate expansion in the free deposits, indicating that bank clients are finding increased uso for their funds. The growth in tho fixed deposits is substantial, but tho banks apparently can mako full use of Ibo money.

Dealing first -with tho free deposits or current account balances, increases aro shown by, all tho banks, except the Union Bank of Australia, which registers a dccroaso of £63,258. Tho Bank of New Zealand, with £8,847,656 of free deposits, exhibits an increase of £.4.7],043; Bank of New South Wales, £2,169,329, an increase of £12,201; Bank of Australasia, £1j915,994, an increase of £219.483; National Bank, £2,591,464, an increase of £47,355; andthe Commercial Bank, £202,81-1, an increase of £50,299. In tho case of tho fixed deposits the total increase of £1,367,494 is shared by all the banks, the Bank of Now 'Zealand claiming £660,982, Union Bank £80,609, Bank of New South Wales £319,102, Bank of Australasia £137,'851, National Bank £145,985, and Commercial Bank £22,965. Tho aggregates of the fixed and free deposits for the December quarter of a series of years show a-s under:—

Free Fijcd Total Dec. doposite. deposits, deposits. V. £ £ £ 1912 12i468,048 10,438,732 ,22.906,780 1913 12,293,875 10,645,345 ' 22539.220 1914 13,675,479 10,727,620 24,403,099 1915 17,293,719 29,155.301 1516 18,031,742 13,229,076 31,260,818 The enormous expansion since the war commenced can easily be seen in the total deposits. The growth in the last two years has been phenomenal, but particularly in 1915.1 The increase in the two years totals £6,857,719, of which £4,356,263 occurs in free deposits and £2,501,456 in fixed deposits. Turning to the advances there is tho_ substantial gain of £2,709,272, while a year ago there was an actual decrease in the figures. Of the increase shown in the past quarter five out of the six institutions shared in the total, the Rank of Australasia exhibiting a decreaso of £31,756. The increases of the other banks were: Bank of New Zealand, £1,673,941; Union Bank, £75,856; I B;»nk of New South Wales, £239,232; National Bank, £650,985; and Commercial Bank, £101,014. The discounts also exhibit an increase, the total for the past quarter being £1,668,222, as .against £1,453,703 in December, 1915, the inorease being £214,519. The Union Bank's total shows a shrinkage of £23,553, and that of the National Bank a shrinkage of £11,969, tho other institutions showing increases as follow:—Bank of New Zealand, £190,459; Bank of New South Wales, £42,052; Bank of Australasia, £15,383; and Commercial Bank £2,147. '

The advances and discounts for the December quarter of a scries of years arc shown in the tablo apponded:—

Deo. Advances. Discounts. Total tir. £ £ s> ' 1912 21,396,049 1,950,494 23,346 543 Wl3 21.826,746 2,014,589 &3.841335 1914 23,121,235 1,811,573 24,932 808 1915 22,589,136 J. 453,703 24,042 839 1916 25,298,408 1,668,222 26,966,630 Compared with 19M, tho total shows an of a, little more than £2,000,000, whilo tho comparison between 1914 and 1918 shows a decrease of nearly £900,000 in tho latter year. Business people would not borrow from tho Banks unless they woro assured they could use the borrowed money profitably. The growth of the advances indicates that business is oxpanding, and that the country's resources aro being developed. In 1914 the fixed and free deposits aggregated £23,40.'!,099, while the advances and discounts combined amounted to £23,841,335, that is, the advances exceeded the deposits by £829,709; in 1915 tho deposits totalled £29,158,301, and the ,id-

vances £24,042,839, showing an excess of deposits amounting to £5,112,462. For the December quarter of last year the deposits amounted to £31,260,818, and the advances to £26,966,630, tho excess of deposits being £4,294,188. Now wo come to the note circulation and tho coin and bullion, and the figures for tho December quarter of a scries of years are shown below: — Com and Bee. Circulation. bullion. 1,712,466 5.W7.767 1913 1,671,723 5,290,183 1914 ... 2.614,232 6,209,113 jit 5 " 3,097,816 6,950,516 1916 *"..'.'. 4,778,267 7,688,093 There is an enormous expansion in tho note circulation as compared with 1915, and tho total of £4,778,267 is aboufc equal to £4 14s. por head of population. The increased prices of commodities necessitates households holding moro lyady cash, and then again there ig scarcely any unemployment, and with more people earning a greater volume of money is in circulation. In the midst of this abundant prosperity financial authorities aro uvging the people to exercise greater economy. The people are saving, as the deposits show, but whether they aro doing as much as they ought to do is qnile another matter.